Opinion ID: 604801
Heading Depth: 2
Heading Rank: 1

Heading: The Original Film Agreements.

Text: 5 Milktrain approached LHP, a Canadian investment firm, to obtain financing for the project. LHP agreed to fund the venture by selling shares in the project to investors (hereinafter: the Milktrain Agreement); LHP and its investors were to divide a 50% share of Milktrain's profits on the films and on any future ancillary products. 6 With the financing commitment in place, Rey granted Milktrain and LHP a limited license to produce (within a two-year period from the date of exercise) one hundred and four (104) four minute film episodes based on the [Curious George] character solely for broadcast on television (hereinafter: the Rey License). Rey was to receive a fee for assisting with the editing and production of the episodes, and an additional royalty amounting to 10% of the revenues from any film telecasts. The Rey License made no mention of ancillary product rights. Nevertheless, LHP promoted the project to investors through a prospectus (hereinafter: the 1978 Private Placement Memorandum) which represented, inter alia, that the production contract [with Rey] gives LHP the right to participate in the financing of ... the option ... to undertake the exploitation of other rights to 'Curious George' including manufacturing, food, licensing and other commercial areas of exploitation. 7