Document:

ex10-2.htm

    
      Exhibit
10.2

       

      **NO
QUOTE BASIS**

       

      BUZZ
KILL, INC.

      4
Park Avenue, Suite 16K

      New
York, New York 10016

       

      As of
April 13, 2007

       

      Seasmoke,
Inc. f/s/o Steven Kampmann

      c/o
Elkins & Elkins

      16830
Ventura Boulevard, Suite 300

      Encino,
CA 91436

      

      Re: Buzz Kill/Steven
Kampmann

      

      
        Dear Mr.
Kampmann:

        

        The
following shall set forth the agreement (”Agreement") between Buzz Kill, Inc.
("Company'), which is or shall become by principal photography of the Picture a
signatory to the applicable DGA Agreement, and Seasmoke, Inc. (”Lender") with
respect to Lender furnishing the services of Steven Kampmann (“Director") for
Director’s directing services in connection with the motion picture currently
entitled “Buzz Kill" ("Picture") as follows; contingent upon, however, that
Company secures financing for the Picture:

      

      

      1. Services. Lender
shall cause Director to render all services reasonably required by Company
during the pre-production, production and post-production of the
Picture.

      

      1.1 Pre-Production
Services: During the pre-production period,commencing as one (1) week on
either side of June 11, 2007 until one (1) week on either side of July 16, 2007
('Pre-Production Period"), Lender shall cause Director’s services to be on a
exclusive, first priority, in-person basis; it being understood that in the
event that Director provides services for a third party, Lender shall ensure
that such services shall not interfere or in any way hinder either Lender's or
Director’s obligations hereunder. During the Pre-Production Period, Director
shall, amongst other things, attend development, casting, location, scheduling,
financing and budget meetings as reasonably designated by Company and perform
all other services customarily rendered by directors of first-class
independently produced theatrical motion pictures.

      

      

        1.2 Production/Post-Production
Services: Director's services shall be exclusive commencing one (1) week
on either side of July 16, 2007 through completion of principal photography and
first priority through Directors delivery of the final cut of the Picture;
thereafter, Director’s services shall be non-exclusive but rendered on a regular
in-person basis until delivery of the completed Picture (including airline and
television coverage, and any additional photography required by Company),
provided that Director’s professional availability does not materially interfere
with the delivery of the completed Picture. Notwithstanding the foregoing, any
of Director’s services subsequent to September 8, 2007 shall be subject to
Directors teaching schedule.

      

        1.3 Pay and Play Basis:
Provided Lender and Director have fully Performed all material services required
by Company in connection with the Picture, provided further that neither Lender
nor Director are in material default or breach of this Agreement, and subject to
Company’s right of suspension and/or termination on account of Directors
default, disability or an event of force majeure, Director shall become "pay and
play" for the Director Fees in Paragraph 4.1(a) once the Company sets the
Picture for production; it being understood that the Picture shall be deemed
"set for production" when the financing for the Picture has been secured, 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; provided,
however, that in no event shall Director become "pay and play" later than any
other “pay and play" individual associated with the Picture (except the
producers of the Picture).

      2. Picture
Specifications. Notwithstanding anything to the contrary contained
herein, all of Company's obligations hereunder shall be conditioned upon the
following specifications for the Picture unless otherwise approved by Company in
writing. The Picture shall: (i) conform to the Company-approved screenplay dated
as of February 8, 2007, except for minor changes during production; (ii) have a
running time of not less than eighty-five (85) minutes (exclusive of main and
end titles) nor more than one hundred twenty (120) minutes (inclusive of main
and end titles); (iii) receive a MPAA rating no more restrictive than "R"; and
(iv) have sufficient alternative footage of scenes and dialogue necessary for
airline and U.S. network television exhibition of the Picture.

      

      3. Credit. Provided that
the Picture is substantially completed with Director as the sole director
(excluding, however, second unit photography) thereof and there is no material
uncured breach by Lender and/or Director hereunder, Director shall be accorded
the following credits:

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        3.1 Directed By Credit: a
“Directed By" credit on a separate card in the main titles on positive prints of
the Picture and in the billing block portion of all paid advertising of the
Picture under Company's control (subject to the customary exclusions and
practices of the distributor(s) of the Picture). Director’s credit shall be at
the same size  height, width, thickness and duration) of the credit of
any other individual rendering producing or executive producing services on the
Picture. If any individual producer or executive producer credit is displayed in
the billing block portion of an excluded ad issued by or under the control of
Company (other than an advertisement related to awards, nominations,
congratulations and the like or in the audio portion of any excluded ad in which
only the honoree is mentioned), then Director shall receive Director's "Directed
By" credit in the billing block portion of such excluded ad. In the event that
Company elects, in its sole discretion, to include a "billing block" on the
packaging of video and soundtrack items (collectively, "Packaging"), Director
shall receive Director's "Directed By" credit on the packaging of the video and
soundtrack items (collectively, the "Packaging").

      
        3.2 Possessory Credit: A
"Film By" credit on a separate card in the main titles on positive prints of the
Picture and in the billing block portion of all paid advertising of the Picture
under Company's control (subject to the customary exclusions and practices of
the distributor(s) of the Picture). Director's credit shall be at the same size
(i.e., height, width, thickness and duration) of the credit of any other
individual rendering producing or executive producing services on the Picture.
If the production credit accorded for the Picture is displayed in the billing
block portion of an excluded ad issued by or under the control of Company (other
than an advertisement related to awards, nominations, congratulations and the
like or in the audio portion of any excluded ad in which only the honoree is
mentioned), then Director shall receive Director's "Film By" credit in the
billing block portion of such excluded ad. In the event that Company elects, in
its sole discretion, to include a 'billing block" on the Packaging, Director
shall receive Director's "Film By" credit on the Packaging.

        

        3.3 Miscellaneous:
Company shall contractually obligate the distributor(s) of the Picture to comply
with the credit herein, but shall not be responsible for such distributor(s)'
failure to comply nor for inadvertent breach. Subject to the applicable
provisions of the Directors Guild of America Low Budget Agreement ("DGA
Agreement"), all other aspects of Director's credit shall be determined in
Company's sole discretion. No casual or inadvertent failure of Company to comply
with the provisions of this paragraph, nor any failure by third parties to
comply with their agreements with Company, shall constitute a breach of this
Agreement by Company or such third parties. In the event of any failure by
Company to comply with the foregoing credit provisions, and upon written notice
from either Lender or Director, Company shall make good faith efforts to
prospectively cure any such failure which is commercially
practicable.

      

      

      4. Compensation.
Provided that the Picture is produced by Company or its assignees, licensees or
successors and that neither Lender nor Director is in material uncured breach
hereunder, Lender shall be entitled to receive the following
compensation:

      

      4.1
Director Fees: Fixed Compensation in the amount of: (a) Twenty Thousand Dollars
($20,000), for Director's services required by Company hereunder, which shall be
due and payable as follows:

      

      (i)
twenty percent (20%) upon execution of this Agreement;

      

      (ii)
sixty percent (60%) in weekly installments over the in-going schedule
of principal photography;

      

      (iii) ten
percent (10%) upon the conclusion of principal photography; and

      

      (iv) ten
percent (10%) upon the Picture being delivered.

      

      
        (b) a
”Deferral" in the amount of Fifty Thousand Dollars ($50,000) which shall be due
and payable according to the Definition and Application of Proceeds to be
attached hereto as Exhibit "A";

        

        (c) An
additional fee of Ten Thousand Dollars ($10,000) for every One Hundred Thousand
Dollars ($100,000) that the final ”actualized" budget of the Picture (excluding
contingency, completion bond costs, interest and other finance charges and any
amounts payable to Lender hereunder) in excess of the currently anticipated
budget of Six Hundred Fifty Thousand Dollars ($650,000).

        

        4.2 Contingent
Compensation: If Company or its assignees, licenses or successors
produces or causes the Picture to be produced, in addition to the amount set
forth in Paragraph 4.1 above, Lender shall each receive an amount equal to five
percent (5%) of one hundred percent (100%) of the “Net Proceeds", which shall be
defined, calculated, due and payable in accordance with Company's standard
definition, subject to good faith negotiations but in any event defined,
computed, accounted for and paid on a most favored nations basis with any other
Net Proceeds participant.

      

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      4.3.
Box Office
Bonus: If the Picture is released as a theatrical motion picture and if
the Picture's North American (i.e., the United States and Canada) theatrical box
office receipts (as reported in weekly Variety or EDI) reach or exceed Fifteen
Million Dollars ($15,000,000) then Company shall pay to Lender the amount of
Twenty Five Thousand Dollars ($25,000) and an additional Twenty Five Thousand
Dollars ($25,000) thereafter for each Fifteen Million Dollars ($15,000,000) in
theatrical box office receipts (as reported in weekly Variety or EDI) reached
thereafter. All amounts paid to Lender pursuant to this Paragraph 4.3 shall be
applicable against Lender's Net Proceeds Participation.

      

      5. Transportation. Lender
and Director acknowledge that Director is to be considered a local hire.
Accordingly, no travel, hotel or per-diem expenses shall become due or payable
as a result of either Lender's or Directors participation in the filming of the
Picture. Notwithstanding the foregoing, if Company shall require Director to
render services hereunder (other than for publicity or promotional services) at
a location which is more than one hundred (100) miles from Directors principal
residence (the "Location"), then Company shall provide Director with: (i) one
(1) round-trip, coach-class air transportation (if available, appropriate and if
used), between Director's residence and the Location (only if such travel is
provided to other non-cast members; provided, however, that no such
transportation shall be accorded if traveling within the state of New Jersey);
(ii) hotel accommodations (room and tax only) (only if such accommodations are
provided to other non-cast members); and (iii) ground transportation between the
airport and hotel accommodations and ground transportation between hotel and the
set and between locations (only if such transportation is provided to any other
non-cast member). Lender and Director expressly acknowledge that no such
transportation or expenses are required in order for Director to render
Director's services hereunder.

      

      6. Cutting &
Editing. Subject to the customary restrictions of the distributor(s) of
the Picture, and subject further to the DGA Agreement, and provided that: (i)
principal photography of the Picture is completed with Director as the sole
director thereof: (ii) neither Lender nor Director materially breach any of the
terms hereunder and such breach remains uncured; and (iii) the Picture is
completed in conformity with the picture specifications as set forth in
Paragraph 2 herein, Director shall have the right of "final cut." Director
agrees to deliver the “locked" Picture no later than eight (8) weeks after the
conclusion of principal photography and the "final cut" not later than twelve
(12) weeks thereafter. Director's cutting and preview rights hereunder shall be,
as set forth in the DGA Agreement, exercised in a manner so as not to result in
any costs in excess of the approved budget for the Picture. Further, subject to
the customary restrictions of the distributor(s) of the Picture, Director shall
have the right to cut the foreign, festival, television, music videos and
airline versions of the Picture.

      

      7. Approvals. Lender and
Director acknowledge and agree that Director shall have all approvals and
controls subject to meaningful consultation with Company, including, without
limitation, with respect to all key creative elements and the key crew. Director
shall have meaningful consultation regarding the production schedule, script,
the score and soundtrack for the Picture. Lender and Director acknowledge that
the services to be rendered hereunder are personal to Director and may not be
delegated or assigned.

      

      8. Work-For-Hire. Lender
and Director acknowledge that all results and proceeds of Lender's and
Director's services hereunder and any material, whether written or oral,
contributed or submitted to Company in connection with the Picture are being
specially ordered by Company for use as part of a motion picture and shall be
considered a "work-made-for-hire" for Company and, therefore, Company shall be
the author and copyright owner thereof for all purposes throughout the universe.
If for any reason any of the foregoing results and proceeds or materials are not
deemed a work-made-for-hire then Lender and Director hereby grant and
irrevocably assign to Company all such rights. Lender and Director hereby grant
to Company the right, in perpetuity and throughout the world, to use, issue and
authorize publicity concerning Director and to use Director's name, approved
image, approved voice, approved likeness, approved photograph and approved
biography in connection with the production (except with respect to Director's
acting services should he elect to render such services), exhibition, promotion,
advertising, distribution and exploitation of the Picture, provided Director is
not depicted as directly or indirectly endorsing any product or
service.

      

      
        9. Force Majeure. In the
event the preparation or production of the Picture is materially hampered,
interrupted or prevented due to an event of force majeure (as that term is
customarily defined in the motion picture industry) including, but not limited
to, an act of God, war, riot, civil commotion, tire, casualty, strike, labor
dispute, act of any governmental authority or any other reason which is beyond
Company's reasonable control, (and provided that Company also suspends the
rendition of services by all other personnel on the Picture for such event of
force majeure), Company shall have the right to (a) suspend the Agreement (by
serving notice of such suspension to Director in writing) while such event
continues (and such additional period of time as Company may require to make
preparation for the utilization or resumption of Lender's and Director's
services) and/or (b) terminate the Agreement (by serving notice of such
termination to Director in writing). In the event of a suspension pursuant to
this paragraph, Company's obligation to make the payments provided hereunder
shall likewise be suspended, except for any payments, which have accrued prior
to the suspension, but have not yet been paid; provided that if any other person
associated with the Picture has been paid during such suspension, Director shall
also be paid. Director shall have the right to work for third parties during the
suspension period. Company may not suspend either Lender or Director under this
Paragraph 9 unless all other personnel principal cast members and above-the-line
crew members are also suspended; and neither Lender nor Director may be
terminated under this Paragraph 9 unless all other personnel are also
terminated. In the event of a termination pursuant to this paragraph, Company,
Lender and Director shall be released and discharged from any further obligation
to each other hereunder and the compensation if any theretofore accrued to
Lender hereunder when paid shall be deemed payment in full of the compensation
payable to Lender; provided however that Company's credit, indemnification and
insurance obligations to Lender and Director shall survive any such termination.
If Company has exercised its suspension rights with respect to any event of
force majeure and subsequently reinstated Lender and Director, then Company may
not suspend again for a continuation of the same event of force majeure (other
than where such event of force majeure is a strike or anticipated strike by the
DGA, WGA and/or SAG). If Company requests Director to remain on location during
any such period of suspension, Company shall continue to provide for Director as
described in this Agreement. Director shall only be subject to a single
suspension for a force majeure event. Director shall be reinstated if production
of the Picture is recommenced after a force majeure termination on the terms as
set forth herein.

      

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        10. Default/DisabiIity.
Upon written notice to Lender of any breach by Lender and/or Director of any of
the provisions of this Agreement, and provided that Lender and/or Director shall
have a reasonable time in light of the time restraints imposed by the production
schedule, but in no event to exceed forty eight (48) hours after receipt of
written notice to cure such breach (such reasonable time, the “Cure Period")
Company shall thereafter immediately have the right, exercisable at any time
after the expiration of the Cure Period, to suspend Lender's engagement
hereunder and/or to terminate this Agreement by so notifying Lender in writing.
If either Lender or Director fail or refuse or neglect for any reason whatsoever
to render the services or fulfill the material obligations provided hereunder,
or if Lender shall be unable to cause Director to render the services or fulfill
the obligations provided hereunder by reason of sickness, disability (and such
sickness and/or disability lasts longer than seven (7) consecutive days or
fourteen (14) days in the aggregate), death or unavoidable accident, Company
shall have the right to (a) suspend the Agreement (by serving notice of such
suspension to Director in writing) which such default or disability continues
(and such additional period of time as Company may require to make preparation
for the utilization or resumption of Lender's and Director's services hereunder)
and/or (b) terminate the Agreement (by serving notice of such termination to
Director in writing). In the event of a suspension pursuant to this paragraph,
Company's obligations to make payments hereunder described shall be suspended,
except for any payments that have accrued prior to the suspension, but have not
yet been paid. In the event Company elects to terminate the Agreement because of
either Lender's or Directors materially uncured default, Company shall have no
further obligation to either Lender or Director hereunder, except for Company's
credit, indemnity and insurance obligations to Lender and Director. In the event
that Company elects to terminate the Agreement because of sickness, disability,
death or accident, the compensation if any theretofore accrued to Lender when
paid shall be deemed payment in full of the compensation payable to Lender
hereunder. At Company's election, (i) a material breach by either Lender or
Director of any other agreements entered into between Lender and/or Director and
Company ('Other Agreements") will be deemed to be a material breach of this
Agreement; and (ii) if Lender's or Director's services are suspended and/or
terminated under the Other Agreements, then Company shall have the right to
suspend Lender's and/or Director's services hereunder or terminate this
Agreement, as applicable.

         

                        11.
Representations and
Warranties. Lender and Director hereby represent, warrant and agree
that:

         

      

      11.1
Lender is a duly organized and existing corporation in good standing under the
laws of its place and country of incorporation, and has the exclusive right,
power and authority to enter into this Agreement, to grant the rights agreed to
be granted by Lender hereunder and to furnish the services of Director as herein
provided under a valid and subsisting exclusive binding contract of employment
pursuant to which Lender employs Director for a term extending at least until
the completion of all services required of Director hereunder, and if Lender was
incorporated outside the United States of America, it is not engaged in any
trade or business in the United States and does not have a “permanent
establishment" in the United States (as that term is defined in the Tax Treaty
between the United States and the country of incorporation), and it does not
have any agent in the United States who has, or habitually exercises, general
authority to negotiate and conclude contracts on its behalf.

       

      
        11.2  Lender
will make all payments of compensation required to be made to Director on
account of the services rendered by Director pursuant to this Agreement and by
reason of the exploitation of any rights granted to Company hereunder. Lender
will discharge all obligations imposed upon Lender in connection with furnishing
Director's services hereunder under applicable local, state, federal and
international laws, including, but not limited to, obligations with respect to
tax withholdings, worker’s compensation laws, national health insurance, social
security and unemployment and disability
insurance.

      11.3
Neither Lender nor Director is subject to any obligation or disability which
will or might prevent Lender or Director from fully keeping and performing all
of the material covenants and conditions to be kept or performed by Lender or
Director hereunder, and neither Lender nor Director has made nor will make any
grant, assignment, commitment or do or permit any act which will or might
interfere with or impair the full and complete performance of Lender's and
Director's services or Company's full and complete enjoyment and exercise of the
rights and privileges granted herein.

      

      11.4 Any
and all material written or furnished by Lender and Director hereunder is or
will be original, shall not have been exploited in any manner or medium or
(provided that Lender and/or Director notifies Company thereof) shall be in the
public domain throughout the world, and shall not, to the best of Director's
knowledge, infringe upon or violate the right of privacy of, or constitute a
libel, slander, or unfair competition against, or violate any common law right,
copyright or any other right of any person or entity.

      

      11.5 to
the best of Lender and Director's knowledge, there are (and will be) no liens,
claims or encumbrances by or through Lender and/or Director which might conflict
with or otherwise affect any of the provisions of the Agreement or Company's
promotion or exploitation of the Picture (and all rights therein) in any and all
media whether now known or hereafter devised throughout the universe in
perpetuity; it being agreed, without limiting the generality of the foregoing,
that Lender's and Director's representations, warranties, indemnity and grant of
rights hereunder shall survive the suspension and/or termination, if ever, of
Lender's and Director's engagement in connection with the Picture. Company's
indemnity, Company's obligation to accord Director credit as set forth herein
and Company's obligation to provide insurance coverage as set forth herein shall
survive the suspension and/or termination.

      

      11.6
Lender shall cause Director to deliver the completed Picture in accordance with
Company's approved budget (excluding costs and/or delays that are beyond
Director's control), production and post-production schedule, delivery date and
shooting script (it being understood that neither Lender nor Director shall make
any changes in connection therewith, except as provided in Paragraph 2 above,
without Company's prior approval).

      

      
        12. Indemnity. Lender and
Director shall defend and indemnify and hold harmless Company and Company's
employees and its officers, agent, successors, assign and licensees from and
against any and all liabilities, claims, costs, damages and expenses (including
reasonable outside attorneys' fees and disbursements) arising out of or in
connection with a breach of the foregoing covenants, warranties or
representations. Except with respect to matters arising from a breach hereof by
Lender and/or Director and/or the gross negligence or willful misconduct of
Lender and/or Director, Company shall indemnify Lender, Director, and each of
its respective successors, heirs, assigns, administrators, trustees, executors
and personal representatives and hold them harmless from and against any and all
liabilities, claims, costs, damages and expenses (including reasonable outside
attorneys' fees and disbursements) arising out of Company's development,
production, distribution and/or exploitations of the Picture and/or any element
thereon.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        13. No Obligation to
Proceed. Company has no obligation to actually use the results and
proceeds of Directors services or to make, produce or exploit the Picture; it
being understood that in the event Company abandons production of the Picture,
it may terminate Lender’s and Director’s services pursuant to this Paragraph 13,
Company shall not have any further obligation to either Lender or Director other
than the obligation to pay all vested monies theretofore accrued and yet unpaid
to Lender hereunder. Further, Company may, at its sole discretion, abandon the
Picture at any time without further obligation to either Lender or Director
other than the obligation to pay all monies theretofore accrued and yet unpaid
to Lender hereunder. Payment of all compensation earned and accrued hereunder,
subject to Company's right of termination or suspension, shall fully discharge
Company of all of its obligations hereunder.

        

        14. Remedies. Lender
agrees that the services to be rendered by Director hereunder and the rights and
privileges granted to Company hereunder are of a special, unique, unusual,
extraordinary and intellectual character involving skill of the highest order
which gives them a peculiar value, the loss of which may be reasonably or
adequately compensated by damages in an action at law, and that a breach by
either Lender or Director hereunder or the failure of either Lender or Director
to render services in accordance with any of the provisions hereof may cause
Company to suffer irreparable injury and damage. Lender hereby expressly agrees
that Company will be entitled to seek injunctive and other equitable relief to
prevent or cure any breach or threatened breach of this Agreement. Resort by
Company to injunctive or equitable relief, however, will not be construed as a
waiver of any of the rights which Company may have against either Lender or
Director for damages or otherwise. Notwithstanding the foregoing, in the event
of any breach or alleged breach of this Agreement by Company, Lender's and
Director's sole right shall be to seek the recovery of money damages, and
neither Lender nor Director shall have any right to terminate or rescind this
Agreement or to otherwise enjoin or restrain the production, distribution,
advertising or exploitation of the Picture or any rights therein.

        

        15. Publicity. Lender and
Director warrant and agree that neither Lender nor Director shall authorize the
publication of any news story, magazine article or other publicity or
information of any kind or nature relating to the Picture or Lenders and/or
Directors services hereunder or to Company or Company's personnel or operations
or to any exhibitor or any distributor of the Picture without the prior written
consent of Company in each instance; provided, however, that Lender and Director
may issue personal publicity solely concerning Director in which the Picture is
mentioned incidentally, so long as such references to the Picture, Company or
Company's personnel are not derogatory.

      

      

      
        16. Premiere. Upon the
condition that Lender and Director fully and faithfully perform all of the
material services and obligations required to be performed by Lender and
Director hereunder and that neither Lender nor Director are in material uncured
default hereunder, Company shall provide Director plus one (1) guest with an
invitation to attend all major United States celebrity premiere(s) and all major
film festivals (if any) of the Picture. If any individual receives travel and
expenses to any premiere or film festival, and in the event any such premiere or
festival is more than two hundred fifty (250) miles from Director's then current
place of residence, Company shall use reasonable good faith efforts to require
the distributor of the Picture to provide Director with the following: (i) one
(1) round-trip air transportation, if available and if used (only if such
transportation is provided to other non-cast members); (ii) hotel accommodations
(room and tax only) (only if such accommodations are provided to any other
non-cast member); and (iii) reasonable expenses incurred in connection with or
arising from the attendance of Director at any such premiere or festival (only
if such expenses are reimbursed for any other non-cast member). All provisions
contained in this Paragraph 16 shall be on a most favored nations basis with all
other producers rendering services in connection with the Picture (ie, if any
other producer is accorded air transportation, accommodations and/or expenses
for any premiere or festival, Director shall also receive air transportation,
accommodations and/or expenses for such premiere or festival). If Director
receives the same or similar benefits under the terms of a "Literary Purchase
Agreement" between Purchaser and Lender dated April 1, 2007, then Director shall
be only entitled to such premiere invitations and/or transportation and expenses
so as not cause a duplication of benefits accorded to Director
hereunder.

        

        17. Errors & Omissions
Insurance. Company shall add Lender and Director as additional insureds
under Company's errors and omissions and general liability policies in
connection with the Picture, if any, subject to the terms and conditions of said
policy, including any deductible or policy limits; provided, however, the
inclusion of Lender and Director on said policy will relieve neither Lender nor
Director from his  representations, warranties and indemnities
contained herein.

        

        18. Union Agreement and
Membership. Company hereby warrants and represents that it will be a
signatory in good standing with the Directors Guild of America, and shall be
subject to the terms and conditions contained within the DGA Agreement no later
than the commencement of principal photography for the Picture. To the extent
that any provision in this Agreement conflicts with the mandatory provisions of
any collective bargaining agreement applicable to and binding upon Company in
connection with the rendition of Director's services hereunder, including,
without limitation, the DGA Agreement (the “Union Agreement"), the Union
Agreement shall prevail; provided, however, that in the event of such conflict,
the affected provisions of this Agreement so affected shall be curtailed and
limited only to the extent necessary to permit compliance with the minimum
mandatory terms and conditions of the Union Agreement. To the extent and during
such period as it may be lawful for Company to require Director to do so, Lender
shall cause Director to become and remain a member in good standing of any
appropriate union(s), including, without limitation, the Directors Guild of
America. If Director fails, neglects or refuses to become a member in good
standing of any such union(s), Company shall have the right at Company's sole
election (in addition to its other rights and remedies hereunder) to terminate
this Agreement or to pay on Director's behalf any required dues, fees or other
payments to such union(s) and in the event of any such payment, Company may
deduct the amounts paid by Company from any compensation otherwise payable to
Lender hereunder. Company shall acquire the maximum rights permitted to be
acquired pursuant to the Union Agreement. Director agrees to the content of any
and all waivers that Company may obtain from any relevant union. Company shall
not be entitled to apply overscale compensation for Director's services in
connection with the Picture in reduction of any other payments due Lender and/or
Director under the Agreement or of any union or guild residual payments or to
cross collateralize contingent compensation with union or guild residual
payments or vice versa. Company agrees to pay on behalf of Lender directly to
the proper authority concerned all applicable DGA union pension, health and
welfare fund contributions; provided, however, in no event shall the aggregate
amount of such payments exceed the total of all similar payments which Company
would be required to make had Company employed Director directly. Any such
payments will be treated by Company for United States federal, state and local
tax purposes as additional income paid by Company to Lender and as if Lender
made such payment to the proper authority concerned.

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        19. Jurisdiction. This
Agreement shall be governed by and construed pursuant to the laws of the State
of New York, United States of America applicable to agreements executed and to
be performed entirely therein.

        

        20. Commitment to Others.
Neither Lender nor Director shall have any right or authority to nor shall
employ any person in any capacity, nor contract for the purchase or rental of
any article or material, or make any commitment, agreement or obligation whereby
Company shall be required to pay any monies or other consideration without
Company's prior written consent in each instance.

        

        21. DVD For Private Use:
Upon condition that Director shall substantially perform all of the material
services and obligations required to be performed by Director hereunder and that
Lender and/or Director is not in material default hereunder, Company shall
furnish Director (for Director's private, non-commercial use) with one (1) DVD
copy of the Picture, when the same is manufactured and generally commercially
available.

        

        22. Office/Assistant:
Company shall make best efforts to provide an intern for Director during the
course of production and provide Director with access to Company's offices
during the course of production.

        

        23. Subsequent
Production: If within seven (7) years after the initial general
theatrical release (if any) of the Picture, if Company or its assignee elects
(in its sole discretion) to create an initial live action theatrical sequel to
and/or an initial live action theatrical prequel to and/or the initial live
action theatrical remake of the Picture (collectively the “Theatrical
Production") and provided Director receives sole “Directed by" credit for the
Picture and is then active as a director in the theatrical motion picture
industry and is available as, when and where reasonably required by Company,
then Company shall first negotiate in good faith (within Company's standard
parameters but in no event upon financial terms for Director's directing
services less favorable to Director than the financial terms as set forth in
this Agreement) with Director on the direction for the first such Theatrical
Production. If Producer and Director fail to agree on terms for Director's
services on such Theatrical Production within thirty (30) days following
Company's service of notice on Director of the commencement of negotiations
therefore, if Director is unavailable, or if Director elects not to direct, then
Company shall the right to engage another director(s) and shall have no further
obligation to Director. If Company and Director enter into such an agreement for
the initial Theatrical Production, such agreement shall contain a provision
substantially similar to this Paragraph 23.

        

        24. Miscellaneous.

        

        24.1 This
Agreement contains the entire understanding of the parties relating to the
subject matter hereof and cancels and supercedes any prior understandings or
agreements whether written or oral of the parties. Lender and Director
acknowledge that no representation or agreement not expressly contained in this
Agreement has been made by Company or any of its agents, employees or
representatives to either Lender or Director. This Agreement may not be modified
or amended except in writing signed by the party to be charged.

        

        24.2 All
written notices which either party hereto is required or may desire to give to
the other shall be given by delivering or mailing the same to the other at the
address shown on the face hereof, or at such other address as may be designated
in writing by any such party in a notice to the other given as aforesaid.
Notices shall be sufficiently given when hand-delivered or when the same shall
be deposited so addressed, postage prepaid, in the mail and/or when the same
shall have been transmitted by facsimile or similar means and three (3) days
after mailing of said delivery, mailing or transmission shall be the date of the
giving of such notice. Copies of all notices to Company shall be sent to Emerson
E. Bruns, PLLC, 1790 Broadway, 20th Floor, New York, NY 10019, Attn.: Emerson E.
Bruns, Esq. Copies of all notices to Lender and/or Director shall be sent to
Myman Abell Fineman Fox Greenspan Light, LLP, 11601 Wilshire Blvd., Suite 2200,
Los Angeles, CA 90025-175S, Attn.: Thomas J. Fineman, Esq.

        

        24.3
Within five (5) business days after Lender’s and/or Director’s receipt of
written request from Company, Lender and/or Director shall execute, acknowledge
and deliver to Company any and all further documents or instruments consistent
herewith necessary to carry out the purposes and intent of this Agreement.
Lender and Director hereby irrevocably appoint Company (which appointment Lender
and Director acknowledge is a power coupled with an interest) the true and
lawful attorney-in-fact of Lender and Director to execute, acknowledge and
deliver any such document or instrument if Lender and/or Director shall fail or
refuse to execute, acknowledge or deliver the same within such period. If
Company signs any documents as either Lender’s or Director’s attorney-in-fact,
Company will provide Lender and/or Director with copies of such documents;
provided, however, that inadvertent failure to do so shall not be deemed a
breach of this Agreement.

        

        24.4 In
no event shall either Lender or Director be provided with transportation, a per
diem, invitations to premieres or other benefits pursuant to this Agreement, or
Other Agreements so as to result in double benefits to either Lender or
Director.

        

        24.5 This
Agreement is not a partnership between or joint venture by the parties hereto
and neither is the agent of the other. This Agreement is not for the benefit of
any third party, whether or not referred to herein. Captions and organization
are for convenience only and shall not be used to construe meaning. A waiver of
any breach shall not waive a prior or subsequent breach. All remedies shall be
cumulative and pursuit of any one shall not waive any other. This Agreement may
be signed in counterpart, each of which shall be deemed an original, but all of
which together shall constitute the Agreement.

      

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      IN
WITNESS HEREOF, the parties hereto have executed this Agreement the day and year
first above written.

      

      ACCEPTED
AND AGREED:

      

      BUZZ
KILL, INC.

      

      By:  /s/ Thomas
Hanna            

      An
Authorized Signatory

      

      SEASMOKE.
INC.

      

      
        By:  /s/ Steven
Kampmann      

      

      An
Authorized Signatory

      EIN:
95-3670317ex10-3.htm

    Exhibit
10.3

     

    MEMORANDUM
OF AGREEMENT

    

    THIS
MEMORANDUM OF AGREEMENT (the "Agreement") is made as of April 17, 2006 by and
between Buzz Kill, Inc. ("Producer") and Dylan Hundley, an individual, whose
principal place of residence is 283 Third St., Jersey City,
NJ 07302 ("Finder").

    

    WHEREAS,
the parties hereto desire to establish the terms and conditions as between
themselves and as to their relationship with regard to the financing of a
feature-length motion picture (the "Picture") based upon the upon the script
currently entitled "Buzz Kill" written by Matt Smollon and Steven Kampmann (the
"Property");

    

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

    

    l. SERVICES: Finder
hereby undertakes to use Finder’s reasonable best efforts, on a non-exclusive
basis, to introduce Producer to third parties which are listed on the Schedule
of Financiers attached hereto as Exhibit "A" and made a part hereof (herein
referred to individually or collectively, respectively, as the "Financier" or
Financiers"), who may be interested in lending for, investing in, or in any
other way financing all or a portion of the development and/or production of the
Picture. For the purposes of this Agreement, the terms "Financier" or
"Financiers" shall only refer to investors, lenders or financiers who are
directly introduced to Producer by Finder and who are listed on Exhibit "A"
attached hereto. Finder shall be responsible for all costs associated with
Finders services hereunder. Additionally, Finder shall render all services as
are required by Producer hereunder and all services as are customarily rendered
by producers of first-class feature length theatrical motion pictures in the
United States motion picture industry, as, when and where required by Producer,
and Finder shall comply with all reasonable directions, requests rules and
regulations of Producer in connection therewith, whether or not the same involve
matters of artistic taste or judgment. Finder shall cause the Picture to be
produced in accordance with the approved budget and production schedule for the
Picture. Finder shall be given meaningful consultation with respect to all "key
elements", department heads and creative issues with respect to the Picture,
with the Producer decision being final and prevailing in all such matters.

    

    2. TERM: Commencing on
the date hereof, and continuing until the earlier of (a) termination by either
party to this Agreement, or (b) the concluding of an agreement between Producer
(or any designee, assignee, transferee, or other successor-in-interest of
Producer in or to the Picture and/or Property, collectively referred to
hereinafter as "Producer") and a Financier or Financiers for the provision of
monies for the production of the Picture. The foregoing period of time is
hereinafter referred to as the "Term."  

    

     3.
COMPENSATION:
Upon condition that Finder fully performs all the services, duties and
obligations required to be performed by Finder as a producer hereunder and that
Finder is not in default hereunder, and subject to Producer’s right of
suspension and/or termination on account of Finder’s disability or default or an
event of force majeure, Finder shall receive the following
compensation:

    

    
      (a) Contingent
Compensation: Finder shall be entitled to receive an amount equal to five
percent (5%) of Producer’s share of the "net proceeds" of the Picture. "Net
Proceeds" shall be defined, computed, accounted for and paid in accordance with
Producer’s standard definition of net proceeds. Producer makes no representation
that the Picture will generate any net proceeds, or any particular amount of net
proceeds.

    4. CREDIT: Upon
condition that Finder shall fully perform all of the services and obligations
required to be performed by Finder as a producer hereunder, that Finder is not
in default hereunder, and that Producer has not engaged the services of any
other producer with respect to the Picture, Producer shall accord Finder the
following credit:

    

    
      (a) a
"producer" credit on screen, in the main titles of the Picture (or in the end
titles if all other credits appear in the end titles), on a separate card, in no
less than third position, on all positive prints of the Picture and in paid
advertising issued by or under Producer’s direct control whenever the full
billing block of credits appear.

    All other
matters with respect to Finder’s credit shall be determined in Producer’s sole
discretion. Finder’s credit in paid advertising, if any, shall be subject to the
customary exclusions and practices of Producer, and/or any third party
distributors of the Picture. No casual or inadvertent failure by Producer to
comply with the provisions of this paragraph nor any failure by third parties to
so comply shall constitute a breach of this Agreement by Producer.

    

    5. CONSULTATION:
Throughout the Term, Producer agrees to consult and cooperate with Finder with
respect to the Picture for the purpose of maximizing the opportunity of Finder
to interest Financiers in the Picture and of entering into agreement(s) with
Financier(s). Finder agrees to notify Producer no less than two (2) business
days prior to approaching any potential Financier and the parties hereto shall
coordinate their approach to such Financier in the event each party has a
current and/or prior relationship with such potential Financier.

    

    6. FEES/CREDIT: If at
any time during the Term, Producer enters into any agreement with any Financier
to invest in, lend for, or finance production of the Picture, and provided such
monies are used by Producer for the production of the Picture, in consideration
of Finders services hereunder, the sufficiency of which is hereby acknowledged,
then Finder shall receive: (i) (a) an amount equal to five percent (5%) of any
amounts actually received by Producer from the Financier or Financiers.
Notwithstanding the foregoing, Producer acknowledges that Finder is owed Forty
Thousand Dollars ($40,000), which represents the amount equal to five percent
(5%) of any amounts actually received by Producer from the Financier due to
Finder's services. Further, Finder acknowledges that the receipt of Twenty
Thousand Dollars ($20,000) from Financier and the remaining Twenty Thousand
Dollars ($20,000) shall be paid by Producer as a Deferral which shall be due and
payable in accordance with the Definition and Application of Proceeds to be
attached hereto as Exhibit "B". In consideration of Finder's producer services
with respect to the Picture, Finder shall be paid an additional Deferral of
Fifty Thousand Dollars ($50,000) which shall be due and payable in accordance
with the Definition and Application of Proceeds to be attached hereto as Exhibit
"B"; and (ii) the following credit(s):

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

      (a) In
the event a Financier or Financiers enter into an agreement with Producer to
provide financing for the Picture in an amount of no less than twenty to twenty
five percent (20-25%) of the final "going in" budget of the Picture, Finder or
its designee(s) shall be accorded an associate producer credit in substantially
the following form:

    

    

    "Associate
Producer: Dylan Hundley";

    

    (b) In
the event a Financier or Financiers enter into an agreement with Producer to
provide financing for the Picture in an amount of twenty six to fifty
percent  (26-50%) of the final "going in" budget of the Picture,
Finder or its designee(s) shall be accorded a co-producer credit in
substantially the following form:

    

    "Co-Producer:
Dylan Hundley"; and

    

    (c) In
the event a Financier or Financiers enter into an agreement with Producer to
provide financing for the Picture in the amount of fifty one to one hundred
percent (51-100%) of the final "going in" budget of the Picture, Finder or its
designee(s) shall be accorded a Executive Producer credit in substantially the
following form:

    

    "Executive
Producer: Dylan Hundley".

    

    Such
credit(s) shall appear in the main titles of all positive prints of the Picture,
on a separate or shared card to be determined by Producer in Producer's sole
discretion and shall appear in all paid advertising for the Picture where credit
is given to the Producer, subject to customary exclusions.

    

    Except as
provided herein, all aspects of the above credits to be accorded Finder shall be
in the Producer's sole discretion.

    

    8. NO OBLIGATION:
Nothing in this Agreement shall obligate Finder to obtain any Financiers, nor
shall anything in this Agreement obligate Producer to accept funding from any
Financiers nor to enter into an agreement with any Financiers. Nothing in this
Agreement shall obligate Producer to enter into any additional agreement(s) with
Finder or to provide Finder with any additional compensation whatsoever for any
motion pictures, sequels, pre-quels, remakes, television series, programs or
projects which may be produced by Producer in the future regardless of the
source of financing for such motion pictures, series, programs or
projects.

    

    9. NO SALE OF
SECURITIES: Finder acknowledges that Finder is acting solely in the
capacity of a "finder" and shall not sell or offer to sell securities related to
investing in the development and/or production of the Picture. Finder agrees to
comply with all applicable state and federal securities laws. Finder agrees to
indemnify and hold harmless Producer from any and all claims, losses, expense or
damage (including reasonable attorneys' fees) resulting from any breach or claim
of breach of this provision.

    

    10. RELATIONSHIP OF
PARTIES: Finder is an independent contractor. Nothing herein contained
shall be construed to place Finder and Producer in the relationship of principal
and agent, master and servant, partners, joint venturers or employer and
employee, and neither party shall have, or expressly or by implication,
represent themselves as having, any authority to make contracts in the name of
or binding on the other, or to obligate or bind the other in any manner
whatsoever.  

    

    ll. ENTIRE
AGREEMENT/AMENDMENT: This Agreement constitutes the entire agreement
between the parties with reference to this matter, and supersedes all prior
agreements written or oral. This Agreement cannot be amended except by written
instrument signed by the parties.  

    

    l2. GOVERNING
LAW/JURISDICTION: This Agreement is made and is to be construed under the
laws of the State of New York. The parties hereby agree that any action arising
out of or relating to this Agreement, its performance, enforcement or breach,
the Picture and/or the Property shall be filed in the United States Southern
District of New York and all parties submit themselves to the personal
jurisdiction of said courts for all
such  purposes.  

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    13. ASSIGNMENT: Finder
may not assign Finder's obligations hereunder. Producer may assign Producer's
rights and obligations hereunder freely, including, without limitation, to a
corporation in which Producer serves as an officer and principal shareholder and
in the event of such assignment, Finder agrees to look solely to such assignee
for performance of Producer's obligations hereunder. 

    

    14. SEVERABILITY: If any
provision of this Agreement shall be found invalid or unenforceable, then such
provision shall not invalidate or in any way affect the enforceability of the
remainder of this Agreement.

    

    15. REMEDY: The remedy
for any breach or alleged breach of this Agreement shall be limited to the
right, if any, to recover money damages at law and Finder irrevocably waives any
right to equitable or injunctive relief. 

     

    16. NON-DISCLOSURE/PUBLICITY:
Finder recognizes and acknowledges that: (i) the proprietary, confidential and
competitive nature of screenplay for the Picture (the "Property"), any
information and/or materials provided to Finder with respect to the Property and
the Picture (collectively, the “Materials”) and the damage that could result to
the Producer if the Materials, or any information contained therein, is
disclosed to any third party, and (ii) that the Materials which are shown or
provided to Finder are the property of the Producer and shall be considered
proprietary information, whether or not any portion thereof is or may be validly
copyrighted. Accordingly, Finder will not, without the prior written consent of
the Producer, directly or indirectly, disclose all or any portion of the
Materials, or the substance thereof, to any third party except to the extent
required by applicable law or legal process. Finder warrants and agrees that
Finder shall not authorize the publication of any news story, magazine article
or other publicity or information of any kind or nature relating to: (a) the
Picture; (b) the Property; (c) Finder’s services hereunder; (d) the Producer; or
(e) to any exhibitor or any distributor of the Picture, without the prior
written consent of Producer in each instance.

    

    17.  PREMIERE/FESTIVALS:
Upon condition that Finder fully performs all services and material obligations
required to be performed by Finder hereunder, and provided that Finder is not in
material uncured default hereunder, and provided that any other individual
rendering producing receives the following, then Producer shall invite Finder
and one (1) guest to attend the first major “celebrity” premiere of the Picture
and any “first-tier” film festival screenings of the Picture. In the event the
“first-tier” film festival or premiere is more than fifty (50) miles from
Finder’s then current place of residence, Company shall use best efforts to
require the distributor of the Picture to provide Employee with the following:
(a) one (1) round-trip, coach-class air transportation, if available and if
used, for each of Finder and Finder’s guest; (b) non-exclusive ground
transportation between the airport and hotel; and (c) reasonable hotel
accommodations (room and tax only).

    

    18.  DVD:  Upon
the condition that Finder fully performs all of the material services and
obligations required to be performed by Finder hereunder and that Finder is not
in material uncured default hereunder, Finder shall be entitled to one (1) DVD
copy of the Picture upon commercial availability of the same.

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    IN
WITNESS WHEREOF, the parties have executed this Agreement as of the date set
forth above.

     

     

    

    BUZZ
KILL, INC.:

    

    /s/ Thomas
Hanna                                               

    An
Authorized Signatory

    

    

    

    /s/
Dylan
Hundley                                              

    DYLAN
HUNDLEY

    .

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