Document:

Exhibit 10.5

 

DEVELOPMENT
AND BROADCAST LICENSING AGREEMENT

 

Short Form

 

                This
short form Agreement is entered into on the 20th day of February, 2004, by and
between OBN HOLDINGS, INC., a Nevada corporation (hereinafter referred to as
“OBN”) and PUBLIC MEDIA WORKS, INC., a California corporation (hereinafter
referred to as “PMW”).

 

                WHEREAS,
OBN has a wholly owned production company entitled ECLECTIC ENTERTAINMENT, INC.
(hereinafter referred to as “Eclectic”), which produces and co-produces
television and motion picture projects.

 

                WHEREAS,
OBN has a wholly owned broadcast network entitled OMNI BROADCASTING NETWORK
(hereinafter referred to as “Omni”) which broadcasts television programs
nationally throughout the United States.

 

                WHEREAS,
PMW finances, produces and co-produces motion picture and television projects.

 

                NOW
THEREFORE, the parties hereto agree as follows:

 

                1.             On a so-called first look basis, as
same term is customarily understood in the television and motion picture
industries, PMW will develop and present to OBN the following projects
(hereinafter sometimes collectively referred to as the “Projects” and
individually as the “Project”):

 

                                (a)  six (6) feature length motion pictures;

                                (b)  one (1) hour long dramatic series; and

                                (c)   one (1) half-hour long situation comedy.

 

                2.             PMW shall be solely responsible for
the financing and development of the Projects. 
“Development of the Projects” shall consist of no less than a completed
script, interested writers, directors and talent connected with the individual
Project and details regarding the financing of the individual Project.

 

                3.             PMW shall submit the developed
Project to OBN, which it believes are appropriate for broadcast by OBN and OBN
shall have a first-look at the submitted Project for a period of sixty (60)
days.  Prior the expiration of such
sixty (60) day period, OBN shall notify PMW in writing whether on not OBN
desires to continue with said Project. 
In the event OBN notifies PMW that it is not interested in continuing
with said Project, PMW shall be free to take said Project elsewhere. If OBN
notifies PMW in writing prior to the expiration of the sixty (60) day period
that it is interested in continuing with the Project, PMW shall commence
production of the Project as soon as practically possible, at its sole cost and
expense, and deliver the completed motion picture or episode of the hour long
dramatic series or half-hour long situation comedy, as

 

OBN:    RS       PF: 
   CB   

Development and Broadcast Licensing Agreement
– Page 1
of 3

 

 

the case may be.  For each Project that OBN desires to continue beyond the
development stage, OBN and PMW shall negotiate and enter into the appropriate
long-form agreement.

 

                4.             For each television Project OBN
desires to continue beyond the development stage, OBN agrees to cause the hour
long dramatic series or the half-hour situation comedy series to be aired on
Omni; provided, PMW timely delivers all episodes of the series with all
necessary approvals, consents, clearances and other licenses and permits which
OBN and/or OMNI deem reasonably necessary to lawfully broadcast the episode of
the series.

 

                5.             In consideration of the licensing
of each episode of the series, if any, Omni shall pay PMW fifty percent (50%)
of the net advertising revenue actually received by Omni in connection with
each episode of the series of the television Projects.  For the purposes of this Agreement, “net
advertising revenue” shall mean the gross advertising revenue actually received
by Omni, less all bona fide unrelated third party costs in connection with such
advertising revenue.  Omni shall not be
responsible for any production costs whatsoever in connection with the episodes
of the television Projects; provided, however, in the event Omni pays any such
production costs, such costs paid by Omni shall be deducted from the gross
advertising revenue actually received by Omni.

 

                6.             Omni will promote the television
Projects selected for broadcast by OBN on Omni as necessary in its sound
business judgment.  Such promotion shall
include, but not be limited to the production and airing of commercials on Omni
throughout the broadcast day of Omni.

 

                7.             With respect to the motion picture
Projects selected by OBN, OBN shall secure domestic distribution for the motion
picture Projects.  The net profits
derived from any and all motion picture Projects shall be divided between PMW
and OBN on a fifty-fifty basis.

 

                8.             This short form Agreement sets
forth the entire understanding and agreement between the parties hereto and can
not be changed or modified except in writing signed by both parties.  This short form Agreement shall be governed
by the laws of the state of California applicable to agreements entered into
and intended to be performed entirely within said state.  The federal and state courts of California,
located in Los Angeles, California shall have exclusive jurisdiction over any
and all matters arising out of this short form Agreement.

 

                9.             If any provision of this short form
Agreement shall be deemed void or unenforceable, the balance of this short form
Agreement shall remain in full force and effect as though such void or
unenforceable provision had not been contained herein.

 

OBN:    RS       PF: 
   CB   

 

 

Development and Broadcast Licensing Agreement
– Page2
of 3

 

                10.           The term of this Agreement shall
commence as of the date hereof and continue for a period of eighteen (18)
months.  After the expiration of the
eighteen (18) month period, this Agreement shall automatically renew unless
terminated  by either  party.

 

                IN
WITNESS THEREOF, the parties hereto have signed this Agreement.

 

 

	
  OBN HOLDINGS, INC.

  	
   

  	
  PUBLIC MEDIA WORKS, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
  By

  	
  /s/ ROGER SMITH

  	
   

  	
  By

  	
  /s/ CORBIN BERNSEN

  
	
   

  	
  An Authorized Signatory

  	
   

  	
   

  	
  An Authorized Signatory

  

 

 

 

OBN:    RS       PF: 
   CB   

 

Development and Broadcast Licensing Agreement
– Page 3
of 3Exhibit
10.6

 

 

 

 

 

 

October 10, 2003

 

PublicFilmworks

14749 Oxnard Street

Van Nuys, CA 91411

Attention: Tom Szabo, Corbin Bernsen,

Shaun Edwards

 

Re:          “ULTIMATE 18” (wt)

 

Dear Gentlemen,

 

The following sets forth the material terms of the
agreement (“Agreement”) between PublicFilmworks (“PFW”) and Stone Stanley
Entertainment (“SSE”) with respect to the development, production, distribution
and other exploitation of a television series (“Series”) currently referred to
as “Ultimate 18” (wt) based on an idea pitched to SSE by PFW (“Property”):

 

1.               RIGHTS: All motion
picture, television, allied, and ancillary rights in and to the Property, in
all broadcast and non-broadcast media, now known or hereafter developed, in all
languages, including, without limitation, the Internet (as more fully set forth
below), interactive and merchandising (“Rights”).

 

                
A. Internet
Rights:  Limited to those rights
necessary for promotion of the Series. 
PFW shall retain all other Internet rights.  All websites maintained by PFW, SSE and/or Licensee shall display
prominent links on home pages to each other. 
Parties will negotiate in good faith SSE’s profit participation in any
Internet site.

 

2.               TERRITORY:  Worldwide in all media now known or
hereafter devised (the “Territory”).

 

3.               TERM:

 

A. Initial Term:  For good and valuable consideration, PFW
grants to SSE an initial term of six (6) months from full execution of the
Agreement (“Initial Term”) to secure a development and/or production deal
(“Production Deal”) with a third party network, broadcaster, distributor and/or
financier (collectively “Licensee”).  In
the event that SSE

 

 

1040 N. Las Palmas Ave.,
Bldg. 1 · Los Angeles, CA 90038 · Ph
(323) 960-2599 · Fx (323) 860-3541

 

 

 

 

enters into a Production
Deal with a Licensee during the Initial Term, the Initial Term shall be
automatically extended through the term of the Production Deal (“Term”).

 

B.  Turnaround:  In the event that a Production Deal is secured, but a Series is
not produced, SSE shall have twelve (12) months from expiration of the
Production Deal to secure another Production Deal.

 

4.               DEVELOPMENT DURING TERM:  SSE will,
during the Initial Term, engage in customary development and pre-production
activities in connection with the Property. 
Such activities may include developing with PFW treatments, bibles,
rundowns, pitch material, screening and meeting with writers, directors, and/or
actors.  All of the results and proceeds
of any such activities shall at all times be the sole and exclusive property of
SSE whether or not the Property is purchased.

 

5.               EXECUTIVE PRODUCER SERVICES: 
Services of Szabo, Bernsen and Edwards as producers shall be
non-exclusive, first priority and rendered on a full time basis during Series
production.  No other outside services
to materially interfere.

 

6.               FEES:  PFW shall
receive an amount equal to the fee received by executive producers, Scott A.
Stone and David G. Stanley, for each original episode (including presentation
and/or pilot).  Fees in subsequent
seasons shall increase on a most-favored nations basis with Scott A. Stone and
David G. Stanley with a floor of 5% on a cumulative basis.

 

7.               CONTINGENT COMPENSATION:

 

A.           SSE shall pay to PFW an amount equal to
Fifty Percent (50%) of One Hundred Percent (100%) of SSE’s share of “Net
Proceeds” received by SSE from all sources for the distribution or exploitation
of the Series (including the pilot), excluding monies received from the
Licensee for the initial production of the pilot and Series episodes (e.g.
license fee, production costs, executive producer fees, revenue derived from
fee spots, and so-called production savings or underages, etc.); reducible by
all third party participants “off the top.”

 

B.             “Net Proceeds” shall be computed,
determined and paid pursuant to SSE’s standard net proceeds definition, the
terms of which shall be negotiated in good faith, after deduction of an
overhead charge in an amount equal to ten percent (10%) of either:  (A) the license fee paid by Licensee for
production of the Series (including the pilot) if produced by SSE or an
affiliate of SSE on a license fee basis; or (B) actual production costs if
produced by:  (i) Licensee, (ii) SSE or
SSE affiliate on an up-to or auditable basis, or (iii) an unaffiliated third
party.

 

8.               CREDIT:  On all episodes
produced hereunder including the pilot, Tom Szabo, Corbin Bernsen and Shaun
Edwards shall receive executive producer credits on a shared card equal to all
other executive producers.  PFW shall
receive a production company credit. 
All credits are subject to Licensee approval and any guild and/or union
restrictions.

 

2

 

9.               CONTROLS:  As between
SSE and PFW, SSE shall have all creative, financial and business control and
shall make all final decisions.  PFW
shall approve pitch meetings and shall be consulted on selection of Licensee
and on all creative matters.

 

10.         COPYRIGHTS:  As between
SSE and PFW, SSE shall own and control the copyrights to the pilot and Series,
and SSE shall have the unrestricted ability to authorize unlimited distribution
of the Series world wide, in perpetuity, with unlimited exhibitions, without
additional fees due to PFW-except Contingent Compensation as set forth above.

 

11.         REPRESENTATIONS AND WARRANTIES: 
PFW represents warrants and agrees that: (i) they control all rights in
and to the Property necessary for the execution and effectuation of this
Agreement; (ii) they have the sole right and authority to enter into this
agreement and to grant all of the rights, titles, interests and benefits
licensed and granted hereunder.  PFW
grants SSE the right to use the title in connection with this Agreement.

 

12.         INDEMNITY: PFW hereby agrees to defend and indemnify SSE, SSE’s
successors, licensees and assigns, and the respective officers, directors,
agents and employees of each of the foregoing, from and against any claims,
costs, expenses, losses or damages (including reasonable attorneys’ fees)
occasioned by or arising out of a breach of any representation, warranty or
agreement made by PFW herein. SSE similarly agrees to defend and indemnify PFW
for any breach of any representation, warranty or agreement made by SSE herein
in connection with the development, production, distribution, or other
exploitation of the Series or any element thereof not subject to PFW’s
indemnity above.  The sole right of PFW
for any breach hereof by SSE shall be the recovery of monetary damages; in no
event may PFW seek or obtain injunctive or other equitable relief.

 

13.         NAME & LIKENESS: Use of Robert Trent Jones’ (“Jones”) name and all
related intellectual property rights in connection with the Series.  Use of Bernsen and/or Jones’ on camera
services requires separate AFTRA fees to be paid by SSE , such fees shall be
negotiated in good faith within budgetary parameters and prior quotes of
Bernsen and/or Jones, if any.

 

14.         ASSIGNMENT: PFW agrees
that SSE and its assignees shall have the right to assign this Agreement, in
whole or in part, at any time to any financially responsible party which
assumes in writing all of SSE’s executory obligations hereunder.  This Agreement and PFW’s rights and
obligations hereunder will not be assignable by PFW and any purported
assignment thereof will be null and void from the making thereof, with the
exception of PFW’s rights to assign this Agreement to a loan-out provided that
PFW execute any documents SSE deems necessary to preserve the rights and
obligations contained herein.

 

15.         MISCELLANEOUS:  PFW will furnish consulting services of
Jones and use best efforts to deliver “A” list celebrity talent.  Parties will discuss allocation of product
placement revenue received, if any.

 

16.         CHOICE OF LAW: The parties hereto expressly consent and submit to
the jurisdiction and venue of any court within the State of California, and
agree to accept service of process outside the State of California in any
matter to be submitted to any such court pursuant 

 

3

 

                        hereto. 
This Agreement shall be construed in accordance with the laws of the
State of California.

 

The parties hereto may
contemplate the execution of a more formal document, unless and until said
document is executed, this agreement constitutes a binding agreement between
the parties.

 

 

AGREED TO AND ACCEPTED:

 

	
  PUBLICFILMWORKS

  	
   

  	
  STONE STANLEY ENTERTAINMENT

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:  /s/
  THOMAS SZABO

  	
   

  	
   

  	
  By:  /s/
  DAVID STANLEY

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Its:  CEO

  	
   

  	
   

  	
  Its:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
    19 Nov.

  	
  , 2003

  	
   

  	
   

  	
  Date:

  	
    19 Nov.

  	
  , 2003

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /s/ TOM SZABO

  	
   

  	
   

  	
   

  	
   

  
	
  TOM SZABO

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
    19 Nov.

  	
  , 2003

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /s/ CORBIN BERNSEN

  	
   

  	
   

  	
   

  	
   

  
	
  CORBIN BERNSEN

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
    19 Nov.

  	
  , 2003

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /s/ SHAUN EDWARDES

  	
   

  	
   

  	
   

  	
   

  
	
  SHAUN EDWARDES

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
    19 Nov.

  	
  , 2003

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
											

 

 

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