Proposal Draft 1 (11/05/09) An exclusive partnership agreement between TR3GROUPLLC and CREATV to distribute and monitor content of CreaTV production programs in the US. Programs Listed. Ensure royalty and residual payments are to be paid to CreaTV accordingly and fairly. Basic Draft (terms are negotiable) TERMS: 1.- TV drama ―Cỏ Đuôi Gà‖ produced in 2007 – 60 episodes – 75USD / per episode Total $4500 2.- TV comedy ―Siêu Mẩu Xì Trum‖ produced in 2008 – 30 episodes – 150USD / per episode Total $4500 3.- TV drama ―Áo Cưới Thiên Đường‖ produced in 2008 – 40 episodes – 150USD / per episode Total $6000 4.- Feature film ―Saigon Eclipse‖ 120 minutes – produced in 2006 – 1,000USD for the film. Total: $1000 5.- Documentaries Tourism & Cultural about Vietnam: most of them produced from 2005 up to now. We have more than hundreds of them, please see list of documentaries attached. 80USD per documentary Total: $++ Purchase License Terms Licenses lease of Creatv Production for a term of 3 Years. Payment of $2500/month 1. Co Duoi Ga - $20/per content air/distributed 2. Sieu Mau Xi Trum $45/per content air/distributed 3. Ao Cuoi Thien Duong $45/per content air/distributed 4. Saigon Eclipse $250/per content air/distributed 5. Documentaries $25/per content air/distributed The profitability of individual companies depends on the marketability of products, mainly their potential to attract advertising revenue for TV networks. Major products and services are the production and distribution of TV programs, commercials, and related products, like DVDs. Program production types include TV movies, dramas, situational comedies, reality, game, and talk shows; and documentaries. Revenue Mix Distribution to TV networks and stations comprises about 65% of production companies’ collective revenue; to cable and direct broadcast satellite, 15% to independent distributors and syndicates, 15% to DVD and other video media, 5% for TV sole distributors, DVD and non TV media are significantly more important. Distributors business with TV networks and stations accounts for 45% of collective revenue; cable and direct broadcast satellite, 15% independent distributors and syndicates, 20% and DVD and other Video media, 20% Monitor TV programming to ensure it is aired per contract Every day, thousands of advertisements and TV programs run in thousands of markets around the world. Our programming platform enables broadcasters and advertisers to monitor for license compliance down to the local affiliate and know that their programming or commercials ran per contract. By creating a digital identity for media content, agencies, broadcasters, entertainment companies and direct response marketers can easily learn where, when and how their content was aired in relatively real time, and with great accuracy. Know who is viewing your content and where Programming that was originally developed for television broadcasting or DVD distribution is quickly finding its way onto the Internet, particularly to the very popular user generated content (UGC) and social networking sites. This has created an online viewing audience in the hundreds of millions, with an advertising inventory that is beginning to be monetized. Our programming can help you understand where your TV programming is ending up on the Internet — whether in whole or in part — and then compare that information with data on how it was originally viewed on TV. Having the details on its value, popularity, content sponsors, etc. from the original distribution channel can help content owners and/or distributors (e.g., web site operators) make intelligent decisions about valuing and monetizing the content online, and establish a rate card. Additionally, since the majority of TV programming in the U.S. is digitally watermarked, companies like Nielsen are using this information in their TV rating services. Nielsen monitors hundreds of channels, thousands of programs with millions of viewers — deciphering and delivering valuable data every day. Create engaging experiences for consumers viewing your content online Our programming embedded in TV programming contain a wealth of information about the content — intended demographics, promotion and sponsors, etc. This digital information stays with the content when it shows up online. When you can easily access the details of who the programming was originally targeted at, you can associate information and create engaging, added-value experiences, including: Pairing additional information about the program such as details on the TV series, information on actors/actresses, products placed in the programming, etc. Non-intrusive, automated Internet searches that run beside the video player based on key words extracted from the content On screen ad pairing Enable filtering of your programming when it is uploaded onto UGC sites and know where it is showing up online Our programming platform provides effective means to filter new content being uploaded to the many new user generated content (UGC) and social networking sites visited by millions today. Our programming platform can provide a persistent digital identifier that can easily be read by site owners to quickly determine whether or not the content is copyrighted. This capability opens up a range of possibilities from notifying the consumer that he/she is uploading copyrighted material, to preventing the upload, to offering to connect the consumer to the content owner. The technology allows for the tracking and reporting of where your programming is showing up online. Ensure your viewers always see quality content that is up to your standards From time to time, things happen to your TV programming that degrade the quality of the content or even alters it. The use of digital watermarks can help control the quality of uploaded content. For example, if the watermark doesn't survive and is not detected, that is a clear indication that something bad has happened to the content and it should probably be blocked from being played. Automate royalty and residual payments Our programming platform help identify content and can be used to extract a range of useful information about the content. This information can be used to calculate preset residual and royalty payments in the accounting office, even in highly complex situations. For example, digital watermarks can help to track when content is first uploaded onto the Internet and how long it has been available there. Ensuring the Success of our Business Partners Our programming platform provides its licensees and partners with access to a large and growing portfolio that spans the breadth and depth of innovation in digital watermarking and content identification. We work closely with our licensees and partners to help foster and accelerate the growth of watermarking applications and ecosystems.
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