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 Kanakaris Communications, Inc. They will be provided as
requested in masters suitable for Internet encoding.
Kanakaris 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. Kanakaris 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.
Kanakaris will maintain web visit statistics, accounting, and will pay Lain
International its royalties on at least a quarterly basis. Kanakaris 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:
www.CineManiaNetwork.com (owned by Lain International) and CinemaPop.com (owned
by Kanakaris). In addition, the site will be a www.KKRS.net web channel.
Lain International will make a minimum of 20 film masters available to Kanakaris
within fourteen days.
Agreed,
/s/ Alex Kanakaris /s/ Julio Neri
Alex Kanakaris Julio Neri
CEO President
Kanakaris 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.
Kanakaris 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 Kanakaris
Communications, Inc. to supply motion picture content for the site. Lain is
initially making available over 200 titles to Kanakaris. The site will be called
CinemaPop.com and CineManiaNetwork.com. Kanakaris and Lain will share potential
revenue from advertising, subscription fees and pay-per-view fees.
