Document:

ex10-4.htm

    Exhibit 10.4

     

    INVESTMENT
AGREEMENT

    

    THIS
INVESTMENT AGREEMENT (the "Agreement") is made as of May l, 2007 by and between
BUZZ KILL, INC., a New York corporation (the "Producer") and EASTERN RESOURCES,
INC., a Delaware corporation ("Financier").

    

    
      WHEREAS,
Financier desires to provide funding to the Producer in the amount of Eight
Hundred Thousand Dollars ($800,000) for the production (principal photography
only) and exploitation of a motion picture currently entitled "Buzz Kill" (the
"Picture") based upon the literary work entitled "Buzz Kill" written by Steven
Kampmann and Matt Smollon (the "Property");

    WHEREAS,
the Producer and Financier desire to establish the terms and conditions as
between themselves and as to their relationship with regard to the production
and exploitation of the Picture; and

    

    NOW,
THEREFORE, in consideration of the mutual promises herein contained and other
good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto hereby agree as follows:

    

    
      l.           Financier
Contribution. Financier shall provide Producer with the amount of Eight
Hundred Thousand Dollars ($800,000) or as otherwise agreed to in writing by the
parties (the "Financing"). Payment shall be made in accordance with the Schedule
of Cash Flow attached hereto as Exhibit "A" from Gottbetter Capital’s escrow
account. Producer hereby acknowledges the receipt of Twenty Five Thousand
Dollars ($25,000) of the Financing.

    
      2.           Budget. Producer
warrants and represents that the current budget for the Picture is as set forth
in the budget attached hereto as Exhibit "B" (the "Budget") and made a part
hereof and that notwithstanding any other provision hereof or in any other
agreement, the negative cost of the Picture, including all Picture related
expenditures of any kind whatsoever, shall not exceed One Million One Hundred
Thousand Dollars ($1,100,000) without the prior written consent of Financier.
All monies received by the Producer shall be expended in accordance with the
Budget subject only to reasonable variations necessitated by the exigencies of
production and consistent with weekly progress reports that Producer shall
provide to Financier.

    
      3.           Recoupment. Financier
is hereby granted a "first priority" right of recoupment in an amount equal to
the sum of the Financing; provided, however, if Producer provides any financing
for Picture, Financier’s Financing shall be subordinate to such sums raised by
Producer. All payments to Financier by Producer shall be defined, paid and
accounted for in accordance with the Definition and Application of Proceeds a
copy of which is attached hereto as Exhibit "C" and made a part hereof. For
purposes of clarity, the distribution of any monies received from the
exploitation of the Picture shall be as follows: (a) for any financing debt
incurred by Producer and approved by Financier, not to exceed Three Hundred
Thousand Dollars ($300,000) (Financier hereby acknowledges that its shareholders
approve a One Hundred Thousand Dollars ($100,000) loan from Producer for the
Picture) plus twenty percent (20%); (b) next any equity debt incurred by
Financier to be returned via divided plus twenty percent (20%) (which Producer
shall pay to Financier the amount of Eight Hundred Thousand Dollars ($800,000)
plus twenty percent (20%) out of such monies received by Producer in order to
satisfy the recoupment of Financier’s equity debt); (c) next any other third
party subordinate debt; and (d) any Net Proceeds of the Picture to paid in
accordance with Paragraph 4 and Exhibit "C".

    

    

    
      4.           Financier Net Proceeds
Participation. In addition, Producer hereby grants to Financier a fifty
percent (50%) of the Net Proceeds of the Picture, to be defined, paid and
accounted for in accordance with Exhibit "C". Notwithstanding the foregoing, in
the event the Financing does not equal the final, actualized budget for the
Picture, Financier’s percentage shall be calculated as the amount equal to fifty
percent of the fraction with a numerator equal to the amount of the Financing
and a denominator equal to the amount of the final, actualized budget. For
purposes of illustration only, if the Budget is One Million One Hundred Thousand
Dollars ($1,100,000) and Financier’s contribution is Eight Hundred Thousand
Dollars ($800,000)  times fifty percent (50%) then the final
percentage is thirty six percent (36%).

    5.           Credit. Financier or
its designee(s) shall receive:

    

    (a) a
single, exclusive "in association with" company credit which shall substantially
conform to the following:

    

    "In
Association with Gottbeter Capital"

    

    Such
credit shall appear in the main titles of all positive prints of the Picture, on
a separate card immediately following the presentation credit given
[Hanna/Hundley Designee] and shall appear in all paid advertising for the
Picture where credit is given to [Hanna/HundleyDesignee], subject to customary
exclusions.

    

    (b)
exclusive Executive Producer credit which shall substantially conform to the
following: "Executive Producer: Adam Gottbetter"

    

    Such
credit shall appear on a single card, in the main titles of all positive prints
of the Picture and shall appear in all paid advertising for the Picture where
credit is given to the producers, subject to customary exclusions and shall be
subject to dilution by additional third party financiers, if any, subject to the
written consent of the Financier, such consent not to be unreasonably withheld.
Such Executive Producer credit shall only be diluted with Financier’s prior
written approval.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Except as
provided herein, all aspects of the above credits to be accorded Financier shall
be in the Producer’s sole discretion. The Producer shall contractually obligate
all third parties to meet the foregoing credit requirements. No casual or
inadvertent failure of the Producer to comply with the provisions of this
Agreement regarding credit, and no failure of any third party to comply with
such obligations, shall constitute a breach of this Agreement by the Producer.
Upon receipt of written notice from the Financier of any failure by the Producer
to comply with any applicable credit provisions, the Producer shall use
reasonable efforts to cure prospectively or to cause a prospective cure of any
such failure. In no event shall the Producer be liable or responsible for any
acts or omissions with respect to credits by any independent exhibitor,
non-subsidiary distributor or sub-distributor, newspaper, magazine, television
station, record company or any other independent person, firm or entity,
provided, however, that upon receipt of written notice from the Financier, the
Producer shall use reasonable efforts to cause any of the foregoing to cure
prospectively any such failure to comply.

    

    6.           Representations and
Warranties. The Producer, its principals, officers, employees and agents
warrant and represent that:

    

    (a) they
have or shall validly acquire(d) all necessary underlying rights in any and all
literary and/or intellectual property required for the production and
exploitation of the Picture, including, without limitation, the exclusive motion
picture rights to the Property;

    

    (b) they
have no knowledge of any contingent liabilities which could restrict the sale or
distribution of the Picture or any ancillary, allied or subsidiary rights of the
Picture;

    

    (c) they
are fully authorized to enter into and fully perform hereunder and that this
Agreement does not and shall not violate any other agreement or the rights of
any third party;

    

    (d) no
third party has received nor shall receive more favorable terms for providing
financing for the Picture than Financier without Financier’s prior written
approval, such approval not to be unreasonably withheld; and

    

    (e)
Producer indemnifies and holds Financier harmless against any and all claims,
losses, awards, actions, judgments, costs or expenses (including without
limitation, reasonable outside attorney’s fees and costs) related to any breach
of its representations, warranties or agreements hereunder.

    

    7.           Insurance. Producer
shall secure (or shall cause the distributor of the Picture to secure) general
liability and errors and omissions insurance for the Picture and shall list
Financier as additional insured parties under such insurance policies. Investor
shall receive certificates of insurance so providing upon execution hereof (or
promptly following issuance of the errors and omissions policy, if not currently
in place).

    

    8.           Right of
Inspection/Financial Statements. At all times from the inception of any
transactions related to the Picture, the Producer represents that it will keep
full and faithful copies of all such documents related to the Picture and books
of account in which shall be entered fully and accurately each transaction of
the Producer and the production of the Picture. Provided Financier provides the
Producer with reasonable notice, all of said documents and books shall be open
to the inspection and examination of Financier during normal business
hours.

    

    9.           Entire Agreement;
Modification. This instrument and the Development Financing Agreement
dated as of February 21, 2007, constitute the entire agreement between the
Producer and Financier. It may not be modified except in a writing signed by
both parties.

    

    10.           Assignment. Neither
party may assign this Agreement or the rights and obligations contemplated
hereunder without the other's written consent.

    

    11.           Governing Law. This
Agreement shall be construed in accordance with and governed by the laws of the
State of New York.

    

    l2.           Counterparts. This
Agreement may be executed simultaneously in two (2) or more counterparts, each
of which shall be deemed an original but all of which together shall constitute
one and the same instrument.

    

    IN
WITNESS WHEREOF, the parties have caused this Agreement to be executed by their
duly authorized officers and their corporate seals to be hereunto affixed as of
the day and  year first above written.

    

    

                                                          EASTERN
RESOURCES, INC.:

    

    
                                                            By:
/s/ Thomas
Hanna                        

    

                                                          Its:
President

    

    

    

                                                          BUZZ
KILL, INC.:

    

                                                          By:
/s/ Thomas
Hanna                        

    

                                                          An
Authorized Signatoryex10-5.htm

    Exhibit
10.5

     

    PRODUCER
AGREEMENT

    

    
      This
PRODUCER AGREEMENT (“Agreement”) is entered into and effective as August 1, 2007
between Buzz Kill, Inc. whose principal place of business is 4 Park Avenue,
Suite 16K, New York, New York, 10016 (“Company”), and Thomas Hanna, who resides
at 4 Park Avenue, Suite 16K. New York, New York, 10016
(“Producer”).

    1.           ENGAGEMENT: Company
hereby engages the services of Producer upon the terms and conditions set forth
herein to render producing services in connection with the feature-length
theatrical motion picture tentatively entitled “Buzz Kill” (the
“Picture”).

    

    2.           ABANDONMENT: Company
may (at its sole discretion) abandon the Picture at any time without further
obligation to Producer other than payment of any compensation then accrued and
earned by Producer pursuant to Paragraph 4.1 below.

     

    3.           SERVICES

     

    3.1           Preparatory Services:
Commencing on the date hereof, Producer agrees to provide its services in
connection with the preparation of the Picture. Producer's preparatory services
shall include, without limitation, scouting and securing locations, preparing
boards and budgets, assisting with casting, organizing the selection and hiring
of crew members (subject to Company’s mutual approval), and such other services
as are required by Company in connection with the preparation of the
Picture.

    

    3.2           Production and Post-
Production Services: If Company sets the Picture for production, Company
shall
engage Producer to furnish general producing services; it being understood that
the Picture shall be deemed “set for production” when the final screenplay and
budget have been approved by Company, the principal cast and creative personnel
have been engaged and a definite start date has been scheduled by the Company
for commencement of principal photography. Producer shall render nonexclusive
services commencing two (2) weeks prior to the scheduled starting date of
principal photography and shall continue thereafter until such time as Producer
has completed all services in connection with "wrapping" the Picture. Producer
shall not render any outside services that would interfere with the completion
of the Picture within the time required by Company.

    

    
      4.           COMPENSATION: On
condition that Producer fully and faithfully performs all of the services,
duties and obligations required to be performed hereunder and that Producer is
not in material default hereunder, and subject to Company’s rights of suspension
and/or termination on account of Producer's disability or default or an event of
force majeure (as more particularly set forth in Exhibit “A” attached hereto),
and subject to Company’s right of suspension and/or termination on account of
Producer’s default, disability or an event of force majeure, Producer shall
become “pay and play” upon the earlier to occur of : (i) commencement of
principal photography of the Picture, or (ii) Company’s receipt of a
fully-executed copy of the Agreement. Company agrees to pay to Producer and
Producer agrees to accept, as full and complete compensation for all
undertakings and services of Producer hereunder and for all of the rights
granted to Company hereunder, the following
compensation:

    

    

    4.1           Compensation for Production
Services: An amount equal to five percent (5%) of the actualized budget
for the Picture, which shall be paid as follows: fifty percent (50%) upon
"wrapping" of the Picture; and fifty percent (50%) upon delivery of the Picture.
In the event the Company does not have the funds to pay Producer in accordance
with the foregoing sentence, any amounts owed Producer shall be paid to Producer
as Deferral to due and payable in accordance with the Definition and Application
of Proceeds to be attached herein as Exhibit "B".

    

    The
foregoing compensation is an all-inclusive flat fees and no additional
compensation
shall be payable by reason of added days, re-shoots, overtime, weekend work,
holidays,
etc.

    

    4.2           Deferral: A deferral
(a "Deferral") in the amount of One Hundred Fifty Thousand Dollars ($150,000)
which shall be due and payable in accordance with the Definition and Application
of Proceeds to be attached hereto: as Exhibit "B".

    

    
      4.3           Contingent
Compensation: An amount equal to the remaining percentage of any "Net
Proceeds" generated by the Picture after deducting “off-the-top" of all third
party profit participations, including, without limitation, profit
participations to the financiers, writer/director, producers, talent and crew,
if any, in consideration services rendered with respect to the Picture. “Net
Proceeds" shall be defined, computed, accounted for and paid in accordance with
Company’s standard definition of Net Proceeds which is attached hereto as
Exhibit "C" and made a part hereof, but in no event in a manner less favorable
than for any other party receiving "Net Proceeds" or any other form of
contingent compensation. Company makes no representation that the Picture will
generate any Net Proceeds, or any particular amount Net
Proceeds.

    5.           TRAVEL EXPENSES: If
Company requires Producer to render services in connection with the Picture at
an overnight location more than fifty (50) miles from such person’s principal
residence, Company shall: (i) furnish, or reimburse the Producer for the cost of
(at Company’s election), one (1) round trip transportation, by air if
appropriate, in the class no less favorable than for director or any other
producer, between such residence (or from wherever
Producer then may be, if closer) and where such services arc required; (ii)
reasonable accommodations (room and tax only); (iii) exclusive ground
transportation; and (iv) a per diem allowance (which allowance shall be
inclusive of all of Producer’s living and other expenses) in an amount which
shall be determined in Company's good faith discretion but which in no event
shall be less favorable than the per diem allowance payable to any individual in
connection with the Picture.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      6.           CREDIT:
(a)    a “Produced by” credit in substantially the following
form: "Produced By: Thomas Hanna" which shall appear (i) on screen, in the main
titles of the Picture, in first position and (ii) in paid advertising whenever
the writer and/or director’s credit appears (subject to the customary
exclusions) and in a size, style and appearance of type no less than 100% of
that accorded the writer and/or director). Company's obligation hereunder to
accord credit in paid advertising shall be subject to usual and customary
exclusions of Company (and/or any third party distributors) of the Picture.
Notwithstanding the foregoing, Producer shall receive credit in any so-called
"Excluded Advertising" in which any other producer and/or executive producer
receives credit (except award, nomination and/or congratulatory advertisements
where the honoree is the only individual named).

    (b)           A
production credit in substantially the following form: “[TBD] Production” (i) on
screen, on a single card, immediately following the Presentation/In association
credit(s) and immediately preceding the "film by" credit, if any, accorded the
writer/director of the Picture in the main titles of the Picture; (ii) in all
paid advertising whenever the full billing block of credits appear (subject to
the customary exclusions); and (iii) Producer’s “static logo" shall appear in
the billing box for the Picture.

    

    (c)           Except
as provided herein, all aspects of the above credits to be accorded Producer
shall be in the Company's sole discretion. No casual or inadvertent failure of
the Company to comply with the provisions of this Agreement regarding credit,
and no failure of any third party to comply with such obligations, shall
constitute a breach of this Agreement by the Company, however, Company shall use
good faith efforts to contractually obligate third parties, including, without
limitation, the distributor(s) of the Picture, to comply with the provisions
contained in this paragraph. Upon receipt of written notice from Producer of any
failure by the Company to comply with any applicable credit provisions, the
Company shall use good faith efforts to cure prospectively or to cause a
prospective cure of any such failure. In no event shall the Company be liable or
responsible for any acts or omissions with respect to credits by any independent
exhibitor, non-subsidiary distributor or sub-distributor, newspaper, magazine,
television station, record company or any other independent person, firm or
entity, provided, however, that upon receipt
of written notice from Producer the Company shall use good faith efforts to
cause any of the foregoing to cure prospectively any such failure to
comply.

    

    7. NOTICES AND PAYMENTS:
All notices and payments required hereunder shall be in writing and shall be
given either by personal delivery, facsimile (with reasonable confirmation of
delivery), telegram or telex (toll prepaid) or by registered or certified mail
(postage prepaid), and shall be deemed given hereunder on the date delivered,
telefaxed, telegraphed or telexed or a date forty eight (48) hours after the
date mailed if posted to an address within the country of posting and five (5)
days if otherwise. Until further notice, the addresses of the parties shall be
as follows:

    

    
      
        	
                PRODUCER

              	
                COMPANY

              
	
                Thomas
      Hanna

              	
                4
      Park Avenue, Suite 16K

              
	
                4
      Park Avenue, 16K

              	
                New
      York, NY 10016

              
	
                New
      York, NY 10016

              	
                Attn:
      Thomas Hanna

              
	 
      	 
      
	
                With a copy
      to:

              	
                With a copy
      to:

              
	 
      	
                Emerson
      E. Bruns, PLLC

              
	 
      	
                1790
      Broadway, 20th
      Floor

              
	 
      	
                New
      York, NY 10019

              
	 
      	
                Attn:
      Emerson E. Bruns, Esq.

              

      

    

     

    8.           PREMIERES/FESTIVALS:
Upon condition that Producer performs all material services and obligations
required to be performed by Producer hereunder, and provided that Producer is
not in material default hereunder, Company shall invite Producer and one (1)
guest to attend all celebrity premieres, and all major film festivals, if any,
of the Picture or at which the Picture is screened. In the event such
premiere(s) or festival(s) is more than fifty (50) miles from Producer’s then
current place of residence, Company shall use reasonable good faith efforts to
require the distributor of the Picture to provide Producer with the following:
(i) two (2) round-trip, first-class air transportation, if available and if
used; (ii) first-class hotel accommodations (room and tax only); (iii) exclusive
ground transportation; and (iv) reasonable expenses incurred in connection with
or arising from the attendance of Producer at any such premiere or festival.
Notwithstanding the foregoing, in the event that the Company provides
transportation, accommodation or a per diem for any other person to attend any
of the foregoing, Company shall provide the same to Producer on terms no less
favorable than those provided to any other person.

    

    9.           DVD COPY FOR PRIVATE
USE: Upon condition that Producer shall substantially perform all of the
material services and obligations required to be performed by Producer hereunder
and that Producer is not in material default hereunder. Company shall furnish
Producer (for Producers private, non-commercial use) with one (1) DVD copy of
the Picture, when the same is manufactured and generally commercially
available.

    

    10.           APPROVALS: Producer
and Company acknowledge and agree that Producer and Company shall have all
mutual approval over all aspect of production, including, without limitation,
with respect to the key creative elements, key crew, the budget, editing and the
distribution/theatrical release of the Picture.

    

    11.           STANDARD TERMS AND
CONDITIONS: All other terms and conditions of Lender’s and Producers
engagement hereunder are set forth in the Standard Terms and Conditions attached
hereto as Exhibit "A," which Standard Terms and Conditions are by this reference
incorporated herein and made a part of this Agreement.

    

    

    IN
WITNESS WHEREOF, the parties have executed this Agreement as of the day
and

    year
first above written.

    

                                                                                 BUZZ KILL, INC.:

    

    

    
                                                                                   By:
/s/ Thomas
Hanna                   

                                                                                       
       An Authorized Signatory

      

      

      

                                                                                   /s/Thomas
Hanna                   

                                                                                        THOMAS
HANNA

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