March 3, 2000
3620 Castano Drive
Camarillo, CA 93010
RE: Affiliate Agreement
It is our pleasure to extend you this Letter Agreement which affirms and sets forth your relationship with our company, to set up and commence operating an affiliate office in Eastern Europe.
Inasmuch as you have completed the Business of Film Schooling relative to this relationship, and have engaged some experience in our LA office; and
Inasmuch as you are returning to Estonia, and will be in global territories that have motion picture producers, distributors and other professionals, companies and organizations that will be substantially benefited through a direct access with the major US studios, cable and free television networks, and talent; and
Inasmuch as we provide services to motion picture producers, distributors and other professionals, companies and organizations, assisting them in motion picture production and distribution organizing, planning, financing and distribution; and
Inasmuch as we do not now have offices in Eastern Europe;
We herewith enter this relationship, granting you the right, power and privilege to open a correspondent office that will represent us in that area, according to the terms and conditions set forth in this Letter.
Your territory is traditional Eastern Europe, which includes The Balkans, The Baltics, Bulgaria, Commonwealth of Independent States, Czech Republic, Hungary, Poland, Romania and Slovakia.
Your correspondent office may offer the full services we provide in the US, including, but not limited to motion picture and television business:
(1) consulting, (2) planning, (3) co-production, talent and distribution negotiation and documentation, (4) production and distribution private, commercial and bank financing (5) US and foreign territory sales (6) seminars and (7) operating materials.
You agree to set up this office on a best efforts basis in conjunction with other parties, or privately, as you determine the best approach.
You further agree to inform us of your approach and your plan to establish this business.
As you know, we are eager to assist you in this process. Consequently, following our approval of your plan, you may commercially use our name, represent us in every official and marketing capacity, and we will supply you with:
Our live Producers Business Seminar presented in your territory;
Our consulting staff both by correspondence and in-person, as may be best served and mutually agreed, our research and files, our entire office facility and resources;
The printing mechanicals you will need to print your materials using our logo;
Copies of our consulting materials;
Our live and on-line services;
Copies of our book and our publisher’s office in London to directly support you; and
Audio tapes of our Producers Business Seminar.
As part of your plan, you will establish the services rates and materials charges for your territory.
Your office will be located where you deem appropriate.
You and your associates will own the business. You will pay us our rates and expenses as we mutually agree. Further, annually we will be paid a profits participation equal to fifteen percent (15%) of the pre-tax net profits of your business. This participation will be calculated annually, and will be paid, accompanied with a complete accounting, and into our hands within sixty days of each of your business year ends.
We will include your office and communication information on all our printed materials and website. We will refer all business from your territory that comes to us directly, to you for services and products.
Should disputes arise, they will be resolved by arbitration, heard by an entertainment industry experienced arbiter, approved by each of our company’s. If an arbiter is not mutually approved within five (5) business days, the partners agree to accept an arbiter appointed by the AFMA Arbitration Tribunal in Los Angeles.
This relationship is in full force as of the date attending your signature below, and shall continue in perpetuity or until such time as we mutually agree otherwise.
Agreed and Accepted:
Managing Director Signature
March 3, 2000