MEMORANDUM OF UNDERSTANDING
It is hereby agreed that Lain International will make available all Spanish
language, Spanish dubbed and Spanish sub-titled films for which it has Internet
distribution rights to Xxxxxxxxx Communications, Inc. They will be provided as
requested in masters suitable for Internet encoding.
Xxxxxxxxx Communications, Inc. will create a KKRS web channel devoted
exclusively to these titles. They will be made available utilizing Microsoft
Windows Media Technology 4 for full-screen size viewing at a variety of access
speeds. Xxxxxxxxx will endeavor to solicit advertising, subscription fees and
pay-per-view fees for portions of this content. Some content will be free (ad
supported), some will be available only to subscribers, and a limited amount
will be available as pay-per-view to broadband users.
Xxxxxxxxx will maintain web visit statistics, accounting, and will pay Lain
International its royalties on at least a quarterly basis. Xxxxxxxxx will pay
Lain 50% of the gross Kanakaris share of advertising, subscription and
pay-per-view fees for the channel devoted to Lain International provided films,
minus 50% of encoding, bandwidth and advertising charges related directly to the
channel (this amount "?" Lain International will put in advertisements on t.v.
in USA and Latin America).
A minimum of two URL's will be pointed to the aforementioned channel:
xxx.XxxxXxxxxXxxxxxx.xxx (owned by Lain International) and XxxxxxXxx.xxx (owned
by Xxxxxxxxx). In addition, the site will be a xxx.XXXX.xxx web channel.
Lain International will make a minimum of 20 film masters available to Xxxxxxxxx
within fourteen days.
Agreed,
/s/ Xxxx Xxxxxxxxx /s/ Xxxxx Xxxx
Xxxx Xxxxxxxxx Xxxxx Xxxx
CEO President
Xxxxxxxxx Communications, Inc. Lain International
date: November 9, 1999 date:
Approval of portion of press release:
The following content will be contained in an initial press release. There may
be an additional headline and the wording will be punched up.
Xxxxxxxxx Communications, Inc. is creating the first Spanish language motion
picture website featuring full screen, broadcast quality Internet delivery. Lain
International, a leading studio devoted to the purchase and sale of motion
pictures for a Latin American audience, has signed an agreement with Xxxxxxxxx
Communications, Inc. to supply motion picture content for the site. Lain is
initially making available over 200 titles to Xxxxxxxxx. The site will be called
XxxxxxXxx.xxx and XxxxXxxxxXxxxxxx.xxx. Xxxxxxxxx and Lain will share potential
revenue from advertising, subscription fees and pay-per-view fees.
