<PAGE>
AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON OCTOBER 24, 1997.
REGISTRATION NO. 333-35337.
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
------------------------------
AMENDMENT NO. 1
TO
FORM SB-2
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
------------------------------
NEW FRONTIER MEDIA, INC.
(Exact name of small business issuer as specified in its charter)
COLORADO 5190 84-1084061
(State or other jurisdiction (Primary Standard Industrial (I.R.S. Employer
of Identification
No.)
incorporation or organization) Classification Code Number)
1050 WALNUT STREET, SUITE 301
BOULDER, COLORADO 80302
(303) 444-0632
(Address, including zip code, and telephone number,
including area code, of registrant's principal place of business)
------------------------------
MICHAEL WEINER
1050 WALNUT STREET, SUITE 301
BOULDER, COLORADO 80302
(303) 444-0632
(Name, address, including zip code, and telephone number,
including area code, of agent for service)
------------------------------
Copies of all communications to:
Issuer's Counsel: Underwriter's Counsel:
KENT D. KRAUSMAN, ESQ. DENNIS J. DOUCETTE, ESQ.
Krausman, L.L.C. Luce, Forward, Hamilton & Scripps, LLP
3200 Cherry Creek South Drive, Suite 600 West Broadway, Suite 2600
400
Denver, Colorado 80209 San Diego, California 92101
Telephone: (303) 777-6277 Telephone: (619) 236-1414
Facsimile: (303) 777-8277 Facsimile: (619) 232-8311
APPROXIMATE DATE OF PROPOSED SALE TO THE PUBLIC:
AS SOON AS PRACTICABLE AFTER THIS REGISTRATION STATEMENT BECOMES EFFECTIVE.
If any of the securities being registered on this Form are to be offered on
a delayed or continuous basis pursuant to Rule 415 under the Securities Act of
1933, as amended, check the following box: / /
If this Form is filed to register additional securities for an offering
pursuant to Rule 462(b) under the Securities Act, please check the following box
and list the Securities Act registration statement number of the earlier
effective registration statement for the same offering. / /
If this Form is a post-effective amendment filed pursuant to Rule 462(c)
under the Securities Act, check the following box and list the Securities Act
registration number of the earlier effective registration statement for the same
offering. / /
If delivery of the prospectus is expected to be made pursuant to Rule 434,
please check the following box. /X/
------------------------------
CALCULATION OF REGISTRATION FEE
<TABLE>
<CAPTION>
PROPOSED PROPOSED MAXIMUM AMOUNT OF
TITLE OF EACH CLASS OF SECURITY AMOUNT BEING MAXIMUM OFFERING AGGREGATE OFFERING REGISTRATION
BEING REGISTERED REGISTERED(1) PRICE PER SHARE(2) PRICE FEE
<S> <C> <C> <C> <C>
Common Stock, par value $.001 per share..... 1,725,000 $5.50 $9,487,500 $3,162(3)
Common Stock, par value $.001 per share,
issuable upon exercise of the
Underwriter's Warrants(4)................. 150,000 $7.00 $1,050,000 $350
Totals...................................... $10,537,500 $3,512(3)
</TABLE>
(1) Includes 225,000 shares which the Underwriters have the option to purchase
to cover overallotments, if any.
(2) Estimated solely for the purpose of computing the amount of the registration
fee pursuant to Rule 457(a) promulgated under the Securities Act of 1933, as
amended.
(3) $2,886 of registration fee was paid on initial filing; Company is submitting
$626 difference with this filing.
(4) The Company has agreed to sell the Managing Underwriter a Warrant (the
"Underwriter's Warrant") for $100 at closing of this offering. The
Underwriter's Warrant shall entitle the Managing Underwriter to purchase up
to 10 percent of the number of shares of Common Stock purchased by the
underwriters in this offering. The Underwriter's Warrant is exercisable at
130 percent of the offering price of the shares of Common Stock being
offered hereby, for a period of four years beginning one year from the date
of closing of this offering. See "UNDERWRITING."
------------------------------
THE REGISTRANT HEREBY AMENDS THIS REGISTRATION STATEMENT ON SUCH DATE OR
DATES AS MAY BE NECESSARY TO DELAY ITS EFFECTIVE DATE UNTIL THE REGISTRANT SHALL
FILE A FURTHER AMENDMENT WHICH SPECIFICALLY STATES THAT THIS REGISTRATION
STATEMENT SHALL THEREAFTER BECOME EFFECTIVE IN ACCORDANCE WITH SECTION 8(a) OF
THE SECURITIES ACT OF 1933, AS AMENDED, OR UNTIL THE REGISTRATION STATEMENT
SHALL BECOME EFFECTIVE ON SUCH DATE AS THE SECURITIES AND EXCHANGE COMMISSION,
ACTING PURSUANT TO SAID SECTION 8(a), MAY DETERMINE.
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<PAGE>
NEW FRONTIER MEDIA, INC.
CROSS-REFERENCE SHEET
<TABLE>
<CAPTION>
ITEM CAPTION LOCATION OR CAPTION IN PROSPECTUS
- ----------- ---------------------------------------------------- ----------------------------------------------------
<C> <S> <C>
1. Forepart of Registration Statement and Outside Front
Cover Page of Prospectus............................ Outside Front Cover Page
2. Inside Front and Outside Back Cover Page of
Prospectus.......................................... Inside Front and Outside Back Cover Pages
3. Summary Information and Risk Factors................ Prospectus Summary; Risk Factors
4. Use of Proceeds..................................... Use of Proceeds
5. Determination of Offering Price..................... Cover Page; Risk Factors; Underwriting
6. Dilution............................................ Dilution
7. Selling Security Holders............................ Not Applicable
8. Plan of Distribution................................ Underwriting
9. Legal Proceedings................................... Not Applicable
10. Directors, Executive Officers, Promoters and Control
Persons............................................. Management; Principal Shareholders
11. Security Ownership of Certain Beneficial Owners and
Management.......................................... Principal Shareholders
12. Description of Securities........................... Description of Securities
13. Interest of Named Experts and Counsel............... Legal Matters
14. Disclosure of Commission Position on Indemnification
for Securities...................................... Part II: Item 24; Item 28
15. Organization Within Last Five Years................. Prospectus Summary; Certain Transactions
16. Description of Business............................. Risk Factors; Business
17. Management's Discussion and Analysis or Plan of
Operations.......................................... Management's Discussion and Analysis of Financial
Condition and Results of Operations
18. Description of Property............................. Not Applicable
19. Certain Relationships and Related
Transactions........................................ Certain Transactions
20. Market for Common Equity and Related Shareholder
Matters............................................. Description of Securities
21. Executive Compensation.............................. Management--Executive Compensation
22. Financial Statements................................ Financial Statements
23. Changes in and Disagreements with Accountants on
Accounting and Financial Disclosure................. Not Applicable
</TABLE>
<PAGE>
SUBJECT TO COMPLETION, DATED OCTOBER , 1997.
INFORMATION CONTAINED HEREIN IS SUBJECT TO COMPLETION OR AMENDMENT. A
REGISTRATION STATEMENT RELATING TO THESE SECURITIES HAS BEEN FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION. THESE SECURITIES MAY NOT BE SOLD NOR MAY
OFFERS TO BUY BE ACCEPTED PRIOR TO THE TIME THE REGISTRATION STATEMENT BECOMES
EFFECTIVE. THIS PROSPECTUS SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE
SOLICITATION OF AN OFFER TO BUY, NOR SHALL THERE BE ANY SALE OF THESE SECURITIES
IN ANY STATE IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL PRIOR
TO REGISTRATION OR QUALIFICATION UNDER SECURITIES LAWS OF ANY SUCH STATE.
<PAGE>
PROSPECTUS
[LOGO]
NEW FRONTIER MEDIA, INC.
1,500,000 SHARES OF COMMON STOCK
All of the shares of Common Stock offered hereby are being sold by New
Frontier Media, Inc. (the "Company"). Prior to this Offering, a limited public
market for the Common Stock of the Company has existed. The Company's Common
Stock is currently traded on the Nasdaq "Bulletin Board" under the symbol
"NOOF." The last reported sale price of the Common Stock on the Bulletin Board
was $5.25 per share. It is currently estimated that the public Offering price
will be between $5.00 and $5.50 per share. See "UNDERWRITING" for a discussion
of the factors to be considered in determining the public Offering price. The
Company has applied to have its Common Stock approved for quotation on the
Nasdaq SmallCap market under the symbol "NOOF."
THE SHARES OFFERED HEREBY INVOLVE A HIGH DEGREE OF RISK AND IMMEDIATE
SUBSTANTIAL DILUTION. SEE "RISK FACTORS" BEGINNING ON PAGE 7 FOR A DISCUSSION OF
CERTAIN FACTORS THAT SHOULD BE CONSIDERED IN CONNECTION WITH AN INVESTMENT IN
THE COMMON STOCK OFFERED HEREBY.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION, NOR HAS THE SECURITIES AND EXCHANGE COMMISSION OR ANY
STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS
PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
The Company intends to utilize approximately 64% of the net proceeds from
this offering to enter the satellite broadcasting business. See "USE OF
PROCEEDS." The Company has no prior experience in satellite broadcasting. See
"RISK FACTORS" and "BUSINESS."
THE COMPANY AND THE MANAGING UNDERWRITER MAY BE REQUIRED TO MAKE A RECISSION
OFFER TO INVESTORS IN THIS OFFERING IF THE COMPANY FAILS TO COMPLETE THE FIFTH
DIMENSION ASSETS ACQUISITION. SEE "BUSINESS." PROCEEDS FROM THIS OFFERING WILL
NOT BE PLACED IN ESCROW PENDING COMPLETION OF THE FIFTH DIMENSION ASSETS
ACQUISITION (AS DEFINED HEREIN). SEE "RISK FACTORS." THE FIFTH DIMENSION ASSETS
ACQUISITION INCLUDES SUBLEASING OF SATELLITE TRANSPONDERS BY THE COMPANY FROM
FIFTH DIMENSION. THE COMPANY HAS OBTAINED NEITHER AN OPINION FROM INDEPENDENT
COUNSEL NOR THE CONSENT OF THE TRANSPONDER LESSORS CONCERNING THE VALIDITY OF
THE SUBLEASES. SEE "RISK FACTORS."
<TABLE>
<CAPTION>
UNDERWRITING PROCEEDS TO
PRICE TO PUBLIC DISCOUNT(1) COMPANY(2)
<S> <C> <C> <C>
Per Share............................................. $ $ $
Total (3)............................................. $ $ $
</TABLE>
(1) See "UNDERWRITING" for indemnification arrangements with the several
Underwriters. In addition to the underwriting discount, the Company has
agreed to pay the Managing Underwriter a 3% nonaccountable expense
allowance, and to sell the Managing Underwriter a warrant to purchase a
number of shares of Common Stock equal to 10% of the shares of Common Stock
sold in this Offering. See "UNDERWRITING."
(2) Before deducting expenses of the Offering payable by the Company, including
the Managing Underwriter's nonaccountable expense allowance estimated to be
$236,250 ($271,688 if the Underwriter's Overallotment Option is exercised in
full), estimated at $486,250.
(3) The Company has granted to the Underwriters a 30-day option (the
"Overallotment Option") to purchase up to 225,000 additional shares of
Common Stock on the same terms as the Common Stock offered hereby solely to
cover overallotments, if any. If the Overallotment Option is exercised in
full, the total Price to Public, Underwriting Discount, and Proceeds to
Company will be $ , $ , and $ , respectively. See
"UNDERWRITING."
The shares of Common Stock are offered by the several Underwriters subject
to prior sale, receipt and acceptance by them and subject to the right of the
Underwriters to reject any order in whole or in part and certain other
conditions. The Underwriters reserve the right to withdraw, cancel or modify
such offer and to reject orders in whole or in part. It is expected that
delivery of the shares of Common Stock will be made on or about , 1997
against payment therefor at the offices of the Managing Underwriter, 1020
Prospect Street, Suite 200, La Jolla, California 92037.
CENTEX SECURITIES
INCORPORATED
The date of this Prospectus is , 1997.
<PAGE>
CERTAIN PERSONS PARTICIPATING IN THIS OFFERING MAY ENGAGE IN TRANSACTIONS
THAT STABILIZE, MAINTAIN OR OTHERWISE AFFECT THE PRICE OF THE COMMON STOCK,
INCLUDING OVER-ALLOTMENT, STABILIZING, AND SHORT-COVERING TRANSACTIONS IN SUCH
SECURITIES, AND THE IMPOSITION OF A PENALTY BID, IN CONNECTION WITH THE
OFFERING. FOR A DESCRIPTION OF THESE ACTIVITIES, SEE "UNDERWRITING."
IN CONNECTION WITH THIS OFFERING, THE UNDERWRITERS MAY ENGAGE IN PASSIVE
MARKET MAKING TRANSACTIONS IN THE COMMON STOCK OF THE COMPANY ON THE NASDAQ
SMALL CAP MARKET IN ACCORDANCE WITH REGULATION M UNDER THE SECURITIES EXCHANGE
ACT OF 1934. SEE "UNDERWRITING."
2
<PAGE>
PROSPECTUS SUMMARY
THE FOLLOWING SUMMARY IS QUALIFIED IN ITS ENTIRETY BY THE DETAILED
INFORMATION AND FINANCIAL STATEMENTS FOUND ELSEWHERE IN THIS PROSPECTUS, AND THE
INFORMATION INCORPORATED HEREIN BY REFERENCE. UNLESS OTHERWISE INDICATED, ALL
INFORMATION IN THIS PROSPECTUS ASSUMES NO EXERCISE OF THE OVERALLOTMENT OPTION.
SEE "UNDERWRITING." AS USED IN THIS PROSPECTUS, THE TERM "NEW FRONTIER MEDIA"
AND THE "COMPANY" REFER TO NEW FRONTIER MEDIA, INC. AND ITS SUBSIDIARIES, UNLESS
OTHERWISE STATED OR INDICATED BY THE CONTEXT. INVESTORS SHOULD CAREFULLY
CONSIDER THE INFORMATION SET FORTH IN "RISK FACTORS." EXCEPT WHERE OTHERWISE
INDICATED, ALL SHARE AND PER SHARE DATA IN THIS PROSPECTUS (INCLUDING DATA WITH
RESPECT TO OPTIONS AND WARRANTS TO PURCHASE SHARES OF COMMON STOCK) HAVE BEEN
ADJUSTED TO REFLECT THE FIFTH DIMENSION ASSETS ACQUISITION (AS DEFINED HEREIN).
SEE "BUSINESS." THIS PROSPECTUS CONTAINS CERTAIN FORWARD-LOOKING STATEMENTS
WHICH MAY INVOLVE CERTAIN RISKS AND UNCERTAINTIES. THE COMPANY'S ACTUAL RESULTS
MAY DIFFER MATERIALLY FROM THE RESULTS ANTICIPATED IN THESE FORWARD-LOOKING
STATEMENTS AS A RESULT OF CERTAIN FACTORS SET FORTH UNDER "RISK FACTORS" AND
ELSEWHERE IN THIS PROSPECTUS.
THE COMPANY
New Frontier Media, Inc. (the "Company") is a diversified holding company,
consisting of four subsidiaries: (1) Colorado Satellite Broadcasting, Inc.
("CSB"); (2) DaViD Entertainment, Inc. ("DaViD"); (3) Boulder Interactive Group,
Inc. d/b/a Inroads Interactive ("Inroads"); and (4) Fuzzy Entertainment, Inc.
d/b/a In-Sight Editions ("In-Sight"). The Company is engaged in three primary
business activities: (i) reference CD-ROM publishing; (ii) acquisition and
distribution of unrated and adult feature films in all video disc formats,
including 12" laserdisc and 5 1/4" digital versatile disc; and (iii) fine art
and decorative art poster publishing and distribution. The Company has suffered
losses in all but two quarters since its inception on July 26, 1995. See
"FINANCIAL STATEMENTS."
The Company intends to enter into a fourth business, satellite broadcasting
of adult entertainment, upon completion of the acquisition of certain assets
from Fifth Dimension Communications (Barbados), Inc., a Barbados corporation,
1043133 Ontario Inc., an Ontario (Canada) corporation, 1248663 Ontario Inc., an
Ontario (Canada) corporation, and Merlin Sierra, Inc., a California corporation
(hereinafter referred to collectively as "Fifth Dimension"). See
"BUSINESS--Fifth Dimension Assets Acquisition." The Company has entered into
agreements to acquire certain assets of Fifth Dimension, subject to successful
completion of a public offering by the Company of at least $7,000,000 (the
"Fifth Dimension Assets Acquisition"). See "USE OF PROCEEDS" and "BUSINESS." The
Company intends to utilize its wholly-owned subsidiary CSB to acquire certain
Fifth Dimension assets and operate the subscription-based and transaction-based
television networks acquired from Fifth Dimension. See "BUSINESS--Fifth
Dimension Assets Acquisition."
BUSINESS STRATEGY
The Company's business strategy is to create, license, and/or acquire
high-quality (professionally produced, directed, and/or filmed, with paid
actors) content that can be successfully placed into the Company's strong
distribution networks and exploited through analog and digital disc
technologies, satellite broadcasting, and print media. A substantial portion of
the net proceeds from this offering will be utilized to complete the Fifth
Dimension Assets Acquisition, which will result in the Company becoming a
provider of sexually explicit video programming. See "BUSINESS." The Fifth
Dimension assets to be acquired account for approximately 85.7% of the pro forma
adjusted revenues of the Company, set forth in "FINANCIAL STATEMENTS" and the
notes thereto. Each of the Company's subsidiaries or intended subsidiaries is
summarized below.
3
<PAGE>
COLORADO SATELLITE BROADCASTING, INC. ("CSB")
CSB is the Company's wholly-owned subsidiary that will operate the
subscription-based and transaction-based television networks to be acquired from
Fifth Dimension. A substantial portion of the proceeds from this Offering will
be used to complete the Fifth Dimension transaction. See "USE OF PROCEEDS" and
"BUSINESS--Fifth Dimension Assets Acquisition."
Fifth Dimension is a leading provider of subscriber-based premium television
channels (hereinafter "premium channels" or "pay television") and
transaction-based television networks ("pay-per-view"). Fifth Dimension owns,
operates and distributes the three leading C-band adult programming networks,
and is a leading provider of explicit adult programming via direct to home
("DTH") C-band satellite. Pursuant to the terms of the Asset Purchase Agreements
between the Company and Fifth Dimension, the Company will acquire certain assets
from Fifth Dimension, including the satellite uplink facility equipment, call
center facility equipment, satellite transponder subleases, film inventories,
intangible assets (including trade names, trademarks, service marks, copyrights,
mask work rights, licenses, brand names, trade secrets, trade dress, technical
know-how, good will, and other intangibles), subscriber base and lists, vendor
lists, books and records, permits and licenses, and all other property of Fifth
Dimension used in connection with Fifth Dimension's adult programming business.
The Company will enter into an Uplink Management Services Agreement and a Call
Center Interim Services Agreement with Fifth Dimension, pursuant to which Fifth
Dimension will operate, maintain, manage, and sustain the satellite uplink
facility and will receive and process subscriber calls until the Call Center can
be relocated to the Denver, Colorado metropolitan area. See "BUSINESS."
The assets to be acquired from Fifth Dimension generated sales of
$15,044,139 and pre-tax income of $897,298 (pre-tax income, as adjusted for
non-recurring expenses and related party transactions, would have been
$2,755,297) for the year ended March 31, 1997. The Company has agreed to acquire
certain Fifth Dimension assets for a total purchase price of $7,900,000,
consisting of $3,500,000 in cash, Common Stock of the Company valued at
$3,402,000, and a promissory note for $1,000,000. The Company evaluated certain
non-recurring costs included in the operation of Fifth Dimension in arriving at
the purchase price for the assets. The Company believes approximately $1,800,000
of expenses incurred by Fifth Dimension for the year ended March 31, 1997 will
not recur in the future, including excess salaries and related-party payments of
approximately $850,000, loss on investment shares of $220,000, certain legal
fees of approximately $100,000, approximately $415,000 of costs for duplication
of existing facilities and operations that the Company already has in place, and
other non-recurring costs of approximately $215,000. Terms of the Asset Purchase
Agreements provide that the Company will issue 840,000 shares of Common Stock to
Fifth Dimension as part of the purchase price. The Company will also issue Fifth
Dimension or its assignees warrants to purchase up to an additional 400,000
shares of the Company's Common Stock at $5.00 per share, all pursuant to the
terms of the Asset Purchase Agreements and the Warrant Agreement. See
"BUSINESS--Fifth Dimension Assets Acquisition." The Company has also agreed to
pay Fifth Dimension "formula profits" exceeding $2,000,000 for the first 12
months after closing. "Formula Profits" is defined in the Asset Purchase
Agreements as the total revenue from operations minus actual operating costs.
Maximum operating costs under this provision are limited to an amount not
greater than 125% of the projected costs set forth in Schedule 2.1(f) to the
Asset Purchase Agreements. Schedule 2.1(f) details projected costs of
$12,294,444, and maximum operating costs of $15,368,055.
The Company believes it can enhance shareholder value by:
- Integrating the Fifth Dimension Assets into the Company via CSB, which is
currently a shell corporation;
- Substantially reducing operating costs associated with the Fifth Dimension
assets by moving the Call Center to Denver, Colorado;
- Eliminating related-party leases and payments that were previously made by
Fifth Dimension;
4
<PAGE>
- Reducing licensing fees by combining the purchasing power of DaViD and
CSB; and
- Utilizing personnel of Inroads to implement simultaneous "web casting" of
CSB programming via the Internet.
DAVID ENTERTAINMENT, INC. ("DAVID")
DaViD is in the business of acquiring content rights to existing unrated and
adult motion picture titles for distribution on laserdisc and digital versatile
disc ("DVD") by third-party distributors. DaViD is a leading content owner of
feature-length unrated and adult motion pictures for release on video disc.
DaViD currently owns certain content rights to approximately 350 unrated and
adult motion picture titles, and intends to acquire rights to approximately 500
more in the next 24 months. The Company has allocated $750,000 of the net
proceeds from this offering for acquisition of titles by DaViD. See "USE OF
PROCEEDS." There are currently no contracts to acquire additional titles in
effect. DaViD's titles are distributed in the 8" and 12" LaserDisc formats and
the 5 1/4" Digital Versatile Disc format. The distribution terms for these
titles range from seven years to perpetuity. DaViD has released over 140 titles
as of the date of this Prospectus, currently releases 4 to 8 titles per month
for distribution, and intends to release up to 20 titles per month, primarily on
DVD, by the end of 1998. See "BUSINESS--DaViD."
BOULDER INTERACTIVE GROUP, INC., D/B/A INROADS INTERACTIVE ("INROADS")
Inroads is a vertically-integrated CD-ROM software publishing company that
designs and develops CD-ROM titles and licenses third-party-developed titles.
Inroads is 70% owned by New Frontier Media, Inc., and 30% owned by Quarto
Holdings, Inc. ("Quarto"), a wholly-owned subsidiary of Quarto Group, Inc., a
co-edition book publisher. In September, 1996, Inroads acquired rights to
commercially exploit certain titles in Quarto's extensive reference library in
digital formats, providing Inroads with a significant source of material for
future titles. Inroads has recently completed development of IN FOCUS, THE GUIDE
TO BETTER PHOTOGRAPHY and CIGAR COMPANION, its first titles released under this
agreement with Quarto. The Company is currently engaged in a dispute with
Quarto. See "BUSINESS--Legal Proceedings."
Inroads' in-house developed titles are produced, designed, and developed by
the Company's twelve-person staff. Inroads' licensed titles (developed by
unaffiliated third parties) are localized, packaged, and, if necessary, enhanced
with new graphics or interface design/operating elements by Inroads. Inroads'
staff includes writers, software engineers, artists, and management. All of
Inroads' CD-ROM titles, whether developed in-house or licensed, contain video,
still photography, audio, music, and text. These elements are combined with
custom-designed interfaces and computer code to deliver high-quality,
easy-to-use CD-ROM titles. Utilizing state-of-the-art technology and
approximately ten workstations, Inroads has developed and released nine CD-ROM
titles since its inception in June, 1994. Other titles are under development.
FUZZY ENTERTAINMENT, INC., D/B/A IN-SIGHT EDITIONS ("IN-SIGHT")
In-Sight is a niche publisher and distributor of fine-art and decorative art
posters which are priced in the low to moderate price range. Based in Marina Del
Rey, California, In-Sight employs two full-time employees in the design and
production areas, and one employee in shipping/warehousing. In-Sight's
accounting, inventory control and accounts receivable/payable functions are
managed by the Company's Boulder, Colorado office. In-Sight is not currently a
significant factor in the Company's future business plans.
5
<PAGE>
RISK FACTORS
The Common Stock offered hereby involves a high degree of risk. This
Prospectus contains forward-looking statements, including those discussed under
"USE OF PROCEEDS," "MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS" and "BUSINESS." These forward-looking statements
involve a number of risks and uncertainties including, but not limited to, those
discussed under "RISK FACTORS." The Company's actual results may differ
significantly from the results discussed in the forward-looking statements. See
"RISK FACTORS."
THE OFFERING
<TABLE>
<S> <C>
Common Stock offered by the
Company......................... 1,500,000 shares(1)
Common Stock to be outstanding
after the Offering and Fifth
Dimension Assets Acquisition.... 6,547,511(2)
Use of Proceeds................... The net proceeds of the offering will be utilized to
complete the Fifth Dimension Assets Acquisition,
establish CSB operations, fund expansion of DaViD, and
for general corporate purposes, including marketing,
sales, and working capital. See "USE OF PROCEEDS" and
"BUSINESS."
Proposed Nasdaq SmallCap Market
Symbol.......................... NOOF
</TABLE>
- ------------------------
(1) Excluding the Underwriter's Overallotment Option. See "UNDERWRITING."
(2) Excludes 948,197 shares of Common Stock issuable upon exercise of warrants
outstanding as of June 30, 1997, and exercisable at various periods through
September, 2001. See "CERTAIN TRANSACTIONS." Also excludes the Underwriter's
Warrant to be issued in connection with this offering. See "UNDERWRITING."
Includes 840,000 shares of Common Stock to be issued to Fifth Dimension as
part of the assets purchase price. See "BUSINESS--Fifth Dimension Assets
Acquisition."
6
<PAGE>
SUMMARY FINANCIAL DATA
(IN THOUSANDS, EXCEPT PER SHARE DATA)
FOR THE YEARS ENDED MARCH 31, 1997 AND 1996 (AUDITED)
AND THE THREE MONTHS ENDED JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
NEW FRONTIER MEDIA, INC.
--------------------------------- FIFTH DIMENSION(1)
YEAR ENDED MARCH 31, ---------------------------------------
YEAR ENDED MARCH 31,
-------------------- ------------------------
1997 1996 1997 1996
--------- --------- THREE ----------- ----------- THREE MONTHS
MONTHS ENDED JUNE
ENDED JUNE 30,
30, -------------
----------- 1997
1997 -------------
----------- (UNAUDITED)
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
STATEMENT OF OPERATIONS DATA:
Sales................................... $ 2,516 $ 2,566 $ 479 $ 15,044 $ 12,224 $ 3,041
Net income (loss) from operations....... (451) 5 (226) 1,219 2,008 314
Net income (loss)....................... (386) (7) (204) 897 2,193 294
Net income (loss) per share............. (0.09) * (0.05) 3,299 8,061 1,081
Shares used in computing net income or
loss per share........................ 4,188,459 4,051,896 4,192,511 272(2) 272(2) 272(2)
BALANCE SHEET DATA:
Total current assets.................... 1,882 861 1,671 4,140 3,797 3,969
Total assets............................ 2,186 1,017 1,968 5,928 5,906 5,702
Current liabilities..................... 657 342 656 3,619 4,349 3,099
Long-term debt.......................... 13 0 11 0 0 0
Total liabilities....................... 670 342 667 3,619 4,349 3,099
Total stockholders' equity.............. 1,211 675 1,017 2,309 1,557 2,603
</TABLE>
- ------------------------------
(1) "Fifth Dimension" includes the combined financial statements for Fifth
Dimension Communications (Barbados), Inc., Merlin Sierra and 1043133
Ontario, Inc. for the years ended March 31, 1997 and 1996. See "FINANCIAL
STATEMENTS."
(2) Consists of 100 common shares of Fifth Dimension Communications (Barbados)
Inc., 100 common shares of Merlin Sierra, Inc., and 72 common shares of
1043133 Ontario, Inc. See Note 8 to "FINANCIAL STATEMENTS."
* Less than $.01 per share.
7
<PAGE>
RISK FACTORS
IN ADDITION TO THE OTHER INFORMATION CONTAINED IN THIS PROSPECTUS, THE
FOLLOWING FACTORS RELATING TO THE COMPANY AND THIS OFFERING SHOULD BE CONSIDERED
CAREFULLY WHEN EVALUATING AN INVESTMENT IN THE SHARES OF COMMON STOCK OFFERED
HEREBY. THIS PROSPECTUS INCLUDES CERTAIN STATEMENTS THAT MAY BE DEEMED TO BE
"FORWARD-LOOKING STATEMENTS" WITHIN THE MEANING OF SECTION 27A OF THE SECURITIES
ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND SECTION 21E OF THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED (THE "EXCHANGE ACT"). ALL
STATEMENTS, OTHER THAN STATEMENTS OF HISTORICAL FACTS, INCLUDED IN THIS
PROSPECTUS THAT ADDRESS ACTIVITIES, EVENTS OR DEVELOPMENTS THAT THE COMPANY
EXPECTS, BELIEVES OR ANTICIPATES WILL OR MAY OCCUR IN THE FUTURE, INCLUDING SUCH
MATTERS AS FUTURE OPERATING RESULTS PERTAINING TO THE FIFTH DIMENSION ASSETS
ACQUISITION, BUSINESS STRATEGIES, EXPANSION AND GROWTH OF THE COMPANY'S
OPERATIONS AND OTHER SUCH MATTERS ARE FORWARD-LOOKING STATEMENTS. THESE
STATEMENTS ARE BASED ON CERTAIN ASSUMPTIONS AND ANALYSES MADE BY THE COMPANY IN
LIGHT OF ITS EXPERIENCE AND ITS PERCEPTION OF HISTORICAL TRENDS, CURRENT
CONDITIONS, EXPECTED FUTURE DEVELOPMENTS AND OTHER FACTORS IT BELIEVES ARE
APPROPRIATE IN THE CIRCUMSTANCES. SUCH STATEMENTS ARE SUBJECT TO A NUMBER OF
ASSUMPTIONS, RISKS AND UNCERTAINTIES, INCLUDING THE RISK FACTORS DISCUSSED
BELOW, GENERAL ECONOMIC AND BUSINESS CONDITIONS, THE BUSINESS OPPORTUNITIES (OR
LACK THEREOF) THAT MAY BE PRESENTED TO AND PURSUED BY THE COMPANY, CHANGES IN
LAWS OR REGULATIONS AND OTHER FACTORS, MANY OF WHICH ARE BEYOND THE CONTROL OF
THE COMPANY. PROSPECTIVE INVESTORS ARE CAUTIONED THAT ANY SUCH STATEMENTS ARE
NOT GUARANTEES OF FUTURE PERFORMANCE AND THAT ACTUAL RESULTS OR DEVELOPMENTS MAY
DIFFER MATERIALLY FROM THOSE PROJECTED IN THE FORWARD-LOOKING STATEMENTS.
NEW FRONTIER MEDIA A RECENTLY ORGANIZED BUSINESS WITH LIMITED OPERATING HISTORY
The Company was organized in July, 1995 and has incurred losses from
inception. As of June 30, 1997 the Company had an accumulated deficit of
$763,793. See "FINANCIAL STATEMENTS." The ability of the Company to operate
profitably is dependent upon successful execution of the business plans of each
of its subsidiaries. In particular, Boulder Interactive Group, Inc. must
continue to develop commercially viable CD-ROM products for enthusiasts and
hobbyists, and finalize strategic partnerships. DaViD Entertainment, Inc. must
continue to acquire content rights, and implement its release strategy as
Digital Versatile Disc technology becomes commercially affordable and available.
Fuzzy Entertainment must continue to acquire fine art images, and begin to
produce and distribute those images commercially. Finally, the Company must
complete the acquisition of the Fifth Dimension assets and implement the CSB
business plan. See "BUSINESS." The Company is in the early operational stage,
has generated limited revenues from operations to date and there is no assurance
the Company's intended activities will be successful or result in significant
revenue or generate profits for the Company. The Company faces all risks which
are associated with any new business, such as under-capitalization, cash flow
problems, and personnel, financial and resource limitations, as well as special
risks associated with its proposed operations. Management cannot assure when or
if the Company may generate substantial revenues. The likelihood of the success
of the Company must be considered in light of the problems, expenses,
difficulties, complications and delays frequently encountered in connection with
the formation of a new business. The Company has had a limited operating history
and has generated only limited revenues and earnings from operations. The
Company has no significant financial resources and limited assets. See
"BUSINESS" and "FINANCIAL STATEMENTS."
LOSSES FROM INCEPTION; SUBSTANTIAL ACCUMULATED EARNINGS DEFICIT
The Company was organized in July, 1995 and incurred a net loss of $386,030,
or $.09 per share, on revenues of $2,515,802 for the fiscal year ended March 31,
1997, and a net loss of $6,870, or less than $.01 per share, for the period from
July 17, 1995 (inception) to March 31, 1996. The Company incurred a net loss of
$203,985, or $.05 per share, on revenues of $479,330 for the three months ended
June 30, 1997. As of June 30, 1997 the Company had an accumulated deficit of
$763,793. See "FINANCIAL STATEMENTS."
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PURCHASE OF FIFTH DIMENSION ASSETS; NO EXPERIENCE IN SATELLITE BROADCASTING
BUSINESS
The Company and its subsidiary CSB have entered into agreements to acquire
certain assets of Fifth Dimension (the assets to be acquired are collectively
referred to as the "Fifth Dimension assets"). The Fifth Dimension assets to be
acquired include, but are not limited to: trademarks, proprietary rights and
other intellectual property rights associated with the adult movie programming
and broadcasting business ("Adult Movies Business"); equipment, software
technology, furniture, machinery, appliances and other tangible personal
property used in the satellite uplink and customer call center facilities; any
and all rights Fifth Dimension has in adult programming in any format; all
subscriptions for the Adult Movies Business owned by Fifth Dimension; and all
rights to any "1-800" numbers used by Fifth Dimension in the Adult Movies
Business. The Company has no prior experience in the satellite network
broadcasting business. The Company intends to integrate or phase in the much
larger business operations associated with the Fifth Dimension assets into the
Company's business via management agreements with Fifth Dimension. See
"BUSINESS--Fifth Dimension Assets Acquisition."
PROVISION OF SEXUALLY EXPLICIT CONTENT
The Company, through its subsidiary CSB, will be engaged in the business of
providing sexually explicit programming and other products to adult television
subscribers, once the Fifth Dimension Assets Acquisition is completed. Many
people may regard the Company's primary business as unwholesome and as purveying
pornography. The nature of the Company's primary business may negatively taint
the Company's other subsidiaries. Certain investors, investment banking
entities, market makers, lenders, and others in the investment community may
refuse to participate in the Company's public market, finance, or other
activities due to the nature of the Company's primary business. Such refusal may
negatively impact the value of the Company's stock, and its opportunities to
attract market support. See "BUSINESS."
RELIANCE ON FIFTH DIMENSION
As part of the Fifth Dimension Assets Acquisition, the Company and Fifth
Dimension will enter into an Uplink Management Services Agreement ("UMSA") and a
Call Center Interim Services Agreement ("CCISA"). Under the UMSA as currently
proposed, Fifth Dimension will operate, maintain, manage, and sustain an uplink
and playback facility capable of providing continual uninterrupted services for
the Adult Movies Business of a substantially similar nature and quality as those
services currently being provided by Fifth Dimension to its current subscribers.
The Company does not own an uplink facility, and to the extent Fifth Dimension
fails to provide the services contracted for under the UMSA, the Company and its
shareholders are subject to significant risks. Failure to properly manage the
Uplink Facility could result in loss of customers, signal disruptions, and
quality problems that, if not immediately addressed, could negatively impact the
Company's subscriber base and revenues. In the event the Company and Fifth
Dimension fail to consummate the UMSA, or if Fifth Dimension failed to perform
as required under the UMSA, CSB's operations would in all likelihood terminate,
resulting in loss of substantial projected revenues to the Company. See
"BUSINESS--Fifth Dimension Assets Acquisition."
Under the terms of the CCISA as currently proposed, Fifth Dimension will
agree to receive and process subscriber calls on behalf of the Company from its
Ottawa (Canada) Call Center for a period of nine months from the asset
acquisition date, using the Call Center assets to be acquired. The Company
intends to relocate the call center to the Denver, Colorado metropolitan area
prior to expiration of the CCISA. The Company has no prior experience operating
a subscriber call center, and will rely on certain management of Fifth Dimension
for training personnel and management. To the extent there is any disruption in
Call Center operations, the Company may lose subscribers or miss opportunities
to capture calls, resulting in lost revenue to the Company. See "BUSINESS--Fifth
Dimension Assets Acquisition."
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SATELLITE SERVICE AGREEMENTS; REFUSAL OF SERVICE OR TERMINATION OF AGREEMENTS
Fifth Dimension currently provides its adult satellite programming to
subscribers via satellite transponder agreements with AT&T Corp. (the "AT&T
Agreement") and Loral SpaceCom Corporation d/b/a Loral Skynet (the "Loral
Agreement"). The AT&T Agreement runs through December 31, 1999. The Loral
Agreement runs for a period of five years from the date the Telstar 5 satellite
was placed in service (approximately June, 1997). Both of the transponder
agreements provide for a subsequent 5-year extension. The Company intends to
sublease these transponders from Fifth Dimension as part of the Fifth Dimension
Assets Acquisition. The AT&T Agreement and the Loral Agreement are collectively
referred to as the "transponder agreements."
The Company has not obtained opinions of counsel concerning sublease of the
transponders under the terms of the transponder agreements. In the event either
or both of the transponder agreements otherwise preclude the type of sublease
agreement entered into between the Company and Fifth Dimension, the Fifth
Dimension Assets Acquisition would, in all likelihood, be abandoned, to the
financial detriment of the Company and its shareholders.
The transponder agreements contain provisions that allow the respective
service providers to refuse to provide the service (defined as service on
preemptible transponders on Telstar 402R and Telstar 5, respectively) if the
material being transmitted by Fifth Dimension or the Company is harmful to the
service provider's name or business, or if Fifth Dimension or the Company is
indicted or is otherwise charged as a defendant in a criminal proceeding, or is
convicted under any obscenity law, or has been found by any governmental
authority to have violated such law. Fifth Dimension has operated its adult
content satellite programming under these terms for several years without
disruption or refusal of service; nonetheless, the Company, as subleasee of the
transponders under the transponder agreements, is subject to arbitrary refusal
of service by the the service provider if that service provider determines that
the content being transmitted by the Company is harmful to the service
provider's name or business. Any such service disruption would substantially and
adversely affect the financial condition of the Company. See "BUSINESS."
RELUCTANCE OF SMALL-DISH AND CABLE COMPANIES TO CARRY EXPLICIT ADULT PROGRAMMING
Cable television and Ku-Band (small dish) satellite are the fastest-growing
segments providing programming to homes in the United States. Fifth Dimension
has been unable to expand its base of distribution recently, for two principal
reasons: (1) C-Band (large dish) satellite system sales have plateaued, and
small dish systems are beginning to dominate the market; and (2) cable system
operators and small-dish system operators have, to date, been reluctant to carry
explicit adult programming on their systems. Most major cable and small-dish
systems carry "soft core" adult programming, such as the PLAYBOY CHANNEL and
SPICE. There is no assurance that the Company will be able to expand on the
current Fifth Dimension programming base by establishing a "soft-core" network
to compete with PLAYBOY CHANNEL and SPICE, or by convincing cable and small-dish
operators to carry one or more sexually explicit networks. See "BUSINESS."
GOVERNMENT REGULATION--GENERAL
The Company, through its wholly-owned subsidiary CSB, will be engaged in the
business of providing explicit adult movies and other programming to adult
subscribers, if and when the Fifth Dimension Assets Acquisition is completed. By
virtue of the Fifth Dimension Assets Acquisition, CSB will become a leading
provider of explicit or "X-rated" adult programming via direct-to-home C-band
satellite. CSB intends to expand its C-band subscriber base, market its
programming to multiple-system operators, and pursue launching a soft-core
network to compete with PLAYBOY CHANNEL and SPICE. Federal and state
governments, along with various religious and children's advocacy groups,
consistently propose and pass legislation aimed at restricting provision of,
access to, and content of "adult entertainment." These groups also often
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file lawsuits against providers of adult entertainment, encourage boycotts
against such providers, and mount negative publicity campaigns against companies
whose businesses involve adult entertainment. The Company and CSB may be
subjected to such adverse publicity, litigation, and legislation. See
"BUSINESS--Fifth Dimension Assets Acquisition."
The Company and CSB may incur substantial costs defending themselves against
such actions, which may negatively impact the Company's finances. Negative
publicity, boycotts, and litigation may discourage institutional and other
investors from investing in the Company, to the detriment of the Company's
shareholders and investors in this Offering. The Company may not be able to
attract as large a base of investors as a similarly situated company in a
business not involving "adult entertainment." Negative publicity concerning
programming provided by the Company through CSB may cause the service providers
to refuse to provide service under the terms of the transponder agreements. See
"BUSINESS--Fifth Dimension Assets Acquisition."
Recently, federal and state government officials have targeted "sin
industries," such as tobacco, alcohol, and adult entertainment for special tax
treatment and legislation. In 1996, Congress passed the Communications Decency
Act of 1996 (the "CDA"). Section 505 of the CDA required full audio and video
scrambling. If the multi-channel video program distributor (including cable
system operators) could not comply with the full scrambling requirement, it was
prohibited from carrying sexually explicit programming between the hours of 6:00
a.m. and 10:00 p.m. Recently, the U.S. Supreme Court, in ACLU v. Reno, held
certain substantive provisions of the CDA unconstitutional. Businesses in the
adult entertainment and programming industries expended millions of dollars in
legal and other fees in overturning the CDA. Investors in this Offering should
understand that the adult entertainment industry will continue to be a target
for legislation. In the event the Company must defend itself and/or join with
other companies in the adult programming business to protect its rights, the
Company may incur significant expenses that could have a material adverse effect
on the Company's business and operating results. See "BUSINESS--Fifth Dimension
Assets Acquisition."
GOVERNMENT REGULATION--"SOFT-CORE" ADULT PROGRAMMING
The Company is currently evaluating the possibility of establishing a
"soft-core" adult network to compete directly with the PLAYBOY CHANNEL and
SPICE. In 1996, the United States Congress passed the Telecommunications Act of
1996 (for this paragraph only, the "Act"), a comprehensive overhaul of the
Federal Communications Act of 1934. Section 641 of the Act requires full audio
and video scrambling of channels which are primarily dedicated to "sexually
explicit" programming. If a multi-channel video programming distributor,
including a cable television operator, cannot comply with the full scrambling
requirement, then the channel must be blocked during the hours when children are
likely to be watching television, i.e., from 6:00 a.m. to 10:00 p.m. Both
non-explicit programming providers (such as Playboy) and explicit programming
providers (such as Exxxtasy Networks) feature "sexually explicit" programming
within the contemplation of Section 641 of the Act. Although all adult
programming companies fully scramble their signals for security purposes,
several cable television multiple-system operators ("MSOs") lack the technical
capability to fully scramble the audio portion of the signal. These cable
systems would be required to block adult broadcasts between 6:00 a.m. and 10:00
p.m. Both Spice, Inc. (NASDAQ:SPZE) and Playboy, Inc. (NYSE:PLAA) predict that
revenues from cable television distribution sources could be negatively affected
by as much as 25% as a result of this provision, until new equipment can be
installed. Compliance with the Act could have a material adverse effect on the
Company's business and operating results. See "BUSINESS."
LOSS OF MARKET SHARE TO DIRECT BROADCAST SATELLITE ("DBS")
Although management believes C-Band "big dish" satellite systems provide
more stable delivery of programming and that new technologies will allow C-Band
systems to receive digital channels (See "BUSINESS--Satellite Transmission"),
the market for C-Band systems has plateaued, particularly with the
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introduction and rapid proliferation of Ku-Band Direct Broadcast Satellite
systems, such as Dish Network and Direct TV. Consequently, it will be difficult
to further develop sales revenue growth from this business, and the growth of
Ku-Band Direct Broadcast Satellite Systems may reduce future sales revenue from
this business, which could adversely affect the financial performance of the
Company. See "BUSINESS-- Satellite Transmission" and "--Competition."
RELIANCE ON FIFTH DIMENSION ASSETS ACQUISITION; POSSIBLE RECISSION OFFER IF NOT
COMPLETED
A significant portion of the proceeds of this Offering are allocated to the
Fifth Dimension Assets Acquisition. See "USE OF PROCEEDS." None of the net
proceeds from this Offering will be held in an escrow account, pending closing
of the Fifth Dimension Assets Acquisition. In the event the Fifth Dimension
assets acquisition is not completed, the Company and the Managing Underwriter
may be required to undertake a registered recission offer to investors in this
Offering. The effect of such a recission could result in a return of all
proceeds, to the extent available, of this Offering to investors.
NO ESCROW OF OFFERING PROCEEDS
The Company does not intend to escrow proceeds of this offering pending
completion of the Fifth Dimension Assets Acquisition. The Company intends to
utilize a portion of the net offering proceeds as working capital. There is no
assurance that all of the net proceeds of this offering would be available for
return to investors in the event the Company fails to consummate the Fifth
Dimension Assets Acquisition and a recission offer is undertaken by the Company.
ADDITIONAL FINANCING MAY BE REQUIRED
The Company will receive net proceeds of approximately $6,601,250 from this
Offering. The Company believes that the proceeds of this offering will be
sufficient to fund the Fifth Dimension Assets Acquisition, the ongoing
operations of the Company for the next twelve months, and to allow the Company
to expand the operations of its subsidiaries. The Company's success may be
dependent upon its ability to raise additional capital, or to have other parties
bear a portion of the required costs to further develop or exploit its business
objectives. There is no assurance that funds will be available from any source,
or on terms favorable to the Company, and if not available, the Company's
operations may be limited. See "USE OF PROCEEDS" and "BUSINESS."
COMPETITION
The domestic and international markets for the products developed, licensed,
and marketed by the Company's subsidiaries are highly competitive. Many of the
Company's competitors have longer operating histories, greater name recognition,
greater market acceptance of their products, and significantly greater
financial, technical, sales, marketing and other resources to devote to the
development, promotion, and sale of their products. Many large companies with
sophisticated product marketing and technical abilities and financial resources
that do not currently compete with the Company may enter the market and quickly
become significant competitors. To the extent such competitors establish a
performance, price or distribution advantage, the Company could be adversely
affected. See "BUSINESS--Competition."
COLORADO SATELLITE BROADCASTING, INC.
CSB faces competition in the area of explicit adult programming from several
companies, including Spice, Inc. The Company intends to pursue establishing a
non-explicit cable and satellite network. CSB will face competition in the
non-explicit arena from Playboy, Inc., the dominant non-explicit provider (NYSE:
PLAA), Spice, Inc., and from other well-funded sources. Management estimates
that establishing a non-explicit cable and satellite network will require $2
million or more and 12 to 24 months to fully implement. Only a small portion of
the net proceeds of this Offering will be allocated to this project, and will be
used
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to continue the Company's evaluation of the merits of pursuing such a direction.
There is no assurance that the Company will ultimately decide to fully pursue
launching of a soft-core network. In the event the Company does decide to pursue
such a venture, the Company would, in all likelihood, need to raise additional
capital. There is no assurance that the Company would be successful in raising
funding to establish a soft-core network.
DAVID.
The management of DaViD intends to complete the acquisition of content
rights to an additional approximately 500 unrated and adult motion picture
titles, and thereafter concentrate on releasing those titles gradually over
time, as the market dictates. Competition in the distribution of unrated and
adult motion pictures has become intense in the past five years.
INROADS.
The personal computer consumer software industry is intensely competitive.
The market for CD-ROM products has increased dramatically the past three years.
CD-ROM software is quickly replacing the floppy disc as the most popular
personal computer format for programs, games, and information. The fluid nature
of the consumer software industry and rapidly changing demand for products make
it difficult to predict the future success of the Company in the business of
producing packaged software products for the retail market. Numerous large,
well-funded software developing and publishing competitors exist. These
competitors have greater capital, marketing resources and brand recognition than
the Company. Inroads' success is dependent upon the ability of its staff to
continue to develop CD-ROM titles and products that are commercially viable.
Inroads will continue to face significant competition for the foreseeable
future.
IN-SIGHT.
In-Sight will face competition from publishers of fine art posters and
decorative art posters.
SIGNIFICANT GROWTH OF BUSINESS
Management anticipates that the Company will be entering a period of
significant growth upon the completion of this Offering. This growth, if
effected, will expose the Company to increased competition, greater overhead,
marketing and support costs and other risks associated with entry into new
markets and development of new products. To manage growth effectively, the
Company will need to continue to improve and expand its operational, financial
and management information systems and to expand, train, motivate and manage its
employees. Should the Company be unable to manage growth effectively, its
results of operations could be adversely affected. See "BUSINESS."
DEPENDENCE ON KEY PERSONNEL
The Company's success depends to a significant extent upon the contributions
of its executive officers and its other key technical personnel, and upon its
ability to continue to attract and retain highly talented personnel. Competition
for such personnel, particularly software development technical personnel (as
utilized and relied upon by Inroads) is intense. The Company currently has only
one employment agreement, with Andrew Brandt, in effect. The Company will
acquire key-man life insurance on the lives of Messrs. Kreloff and Bender, in
the amount of $1,000,000 each and naming the Company as beneficiary, on or
before the closing of this Offering. Only Mr. Brandt is subject to a
noncompetition agreement. The loss of the services of any of its executive
officers or other key personnel could have a material adverse effect on the
Company's business and operating results, and there can be no assurance that the
Company will be successful in attracting and retaining such personnel. See
"BUSINESS" and "MANAGEMENT."
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BROAD MANAGEMENT DISCRETION IN USE OF PROCEEDS
A significant portion of the net proceeds from this Offering will be used
for working capital, and to expand the operations of the Company's subsidiaries.
As a consequence, the Company's management will have the discretion to allocate
a large percentage of the proceeds to uses which the shareholders may not deem
desirable, and there can be no assurance that the proceeds can or will yield a
significant return. See "USE OF PROCEEDS."
CONTROL BY PRINCIPALS OF THE COMPANY
The Company's executive officers, directors, and their affiliates
beneficially own 2,419,000 restricted Common Shares of the Company. This
represents approximately 42.4% of the 5,707,511 Common Shares that will be
issued and outstanding following this Offering, assuming the Underwriter does
not exercise its Overallotment Option and prior to exercise of any other
outstanding options or warrants, and prior to issuance of 840,000 shares of
Common Stock to Fifth Dimension. Following the Fifth Dimension transaction, but
prior to any warrant or option exercise and assuming no exercise of the
Underwriter's Overallotment Option, there will be 6,547,511 shares issued and
outstanding, of which executive officers, directors, and affiliates of the
Company will own 36.9%. As a result, the current shareholders will continue to
have significant influence over the affairs of the Company. Such concentration
of ownership may have the effect of delaying, deferring or preventing a change
in control of the Company.
In addition, the Board of Directors has the authority to issue up to
5,000,000 shares of Preferred Stock and to determine the price, rights,
preferences, privileges and restrictions, including voting rights, of such stock
without further shareholder approval. The rights of the holders of Common Stock
will be subjected to, and may be adversely affected by, the rights of the
holders of any Preferred Stock that may be issued in the future. Issuance of
Preferred Stock could have the effect of delaying, deferring or preventing a
change in control of the Company. See "DESCRIPTION OF SECURITIES."
CERTAIN PRIOR TRANSACTIONS NOT APPROVED BY DISINTERESTED BOARD MEMBERS
The Company has entered into certain non arms'-length transactions, prior to
the date of this prospectus, with affiliates of the Company and other
"interested" parties. No current ongoing transactions were approved by a
majority of the Company's independent directors who do not have an interest in
the transactions and who had access, at the Company's expense, to the Company's
or independent legal counsel. Current ongoing and past transactions were
approved by a majority of disinterested, but not independent, directors. Any
ongoing or future transactions between the Company and its officers, directors,
principal shareholders, or other affiliates will be on terms no less favorable
to the Company than could be obtained from unaffiliated third parties on an
arms-length basis and will be approved by a majority of the Company's
independent and disinterested directors. Any future loans to officers,
directors, principal shareholders, or affiliates will be made for a bonafide
business purpose, on terms no less favorable than could be obtained from
unaffiliated third parties and will be approved by a majority of the Company's
independent and disinterested directors. See "CERTAIN TRANSACTIONS."
OFFERING PRICE
The pricing of this offering of the Common Stock was determined by the
Company and the Managing Underwriter based on a discounted present value of
future projected earnings and the trading price of the Company's common stock on
the Nasdaq Electronic Bulletin Board. The Company's common stock currently is
"thinly traded," and the price of the Company's common stock as quoted on the
Nasdaq Electronic Bulletin Board may not be an accurate indication of the true
value of the stock. The discounted present value of future projected earnings
valuation method relies extensively on management's subjective belief of future
performance, and bears little relationship to the assets or any objective
criteria of value applicable to the Company. In making such valuation the risks
of the Company's proposed product and
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service lines, the business potential of the Company, the Company's competitive
position, the proceeds to be raised by the offering, the percentage of ownership
desired to be retained by current shareholders, and conditions of the market for
new securities offerings were all considered.
EXERCISE OF WARRANTS AND OPTIONS
As of June 30, 1997, 146,666 shares of Common Stock were issuable upon
exercise of outstanding employee, officer, director or consultant stock options
at an average exercise price of $6.00 per share, and 609,000 shares of Common
Stock were issuable upon exercise of other outstanding warrants at prices of
$4.00 per share (20,000 warrants), $5.50 per share (189,000 warrants), and $6.00
per share (400,000 warrants). One of these warrants, for 400,000 shares, is held
by Quarto, and contains anti-dilution and exercise price provisions that require
the Company to issue additional warrant(s) to Quarto to purchase additional
shares of the Company's Common Stock, depending on the price of the shares of
Common Stock offered hereby and the value of the Company's Common Stock issued
to Fifth Dimension sellers as part of the Fifth Dimension Assets Acquisition.
See "--Quarto Warrant." An additional 400,000 shares of Common Stock have been
reserved for issuance upon exercise of the Fifth Dimension warrant, and 150,000
shares of Common Stock are issuable upon exercise of the Underwriter's Warrant.
See "BUSINESS--Fifth Dimension Assets Acquisition" and "UNDERWRITING." For the
life of such options and warrants, the holders thereof will have the opportunity
to profit from a rise in the market price of the Common Stock. Further, the
terms upon which the Company could obtain additional capital during the life of
such options and warrants may be adversely affected. The holders of such options
and warrants may be expected to exercise such options and warrants at a time
when the Company would, in all likelihood, be able to obtain any needed capital
by a new offering of its securities on more favorable terms than those provided
for by those options and warrants.
The existence of such warrants may adversely affect the terms on which the
Company may obtain additional financing, and may have a depressing affect on the
trading price of the Company's Common Stock. See "DESCRIPTION OF
SECURITIES--Shares Eligible for Future Sale."
QUARTO WARRANT
On September 20, 1996, the Company issued a stock purchase warrant to Quarto
(the "Quarto Warrant") as part of the acquisition of 30% of Inroads by Quarto.
Pursuant to the terms of the Quarto Warrant, Quarto is entitled to purchase up
to 400,000 shares of the Company's common stock for $6.00 per share anytime
between September 20, 1996 and September 20, 2001. The Quarto Warrant contains
certain anti-dilution and price adjustment provisions which will result in
adjustment of the number of shares Quarto may purchase and the exercise price
per share upon exercise of the Quarto Warrant. Specifically, upon completion of
this Offering, but prior to consummation of the Fifth Dimension Assets
Acquisition, the Quarto Warrant will be adjusted to provide that Quarto may
purchase up to 457,200 shares of the Company for $5.25 per share. Upon
completion of the Fifth Dimension Assets Acquisition, the Quarto Warrant will
again be adjusted to provide that Quarto may purchase up to a total of 592,531
shares of the Company's common stock for $4.05 per share.
LIMITS ON SECONDARY TRADING; POSSIBLE ILLIQUIDITY OF TRADING MARKET;
UNDERWRITING CONDITION OF LISTING
The Company has applied to have its Common Stock listed on the Nasdaq
SmallCap Market, which is less liquid than the Nasdaq National Market and other
stock exchanges. There can be no assurance that this application will be
accepted and that the Common Stock will be listed on the Nasdaq SmallCap Market.
The underwriting agreement between the Managing Underwriter and the Company
requires the Company to obtain Nasdaq listing as a condition of closing this
Offering. If the Company is unable to maintain listing standards once listed,
then trading, if any, in the Common Stock would be conducted in the
over-the-counter market on an electronic bulletin board established for
securities that do not meet the
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Nasdaq SmallCap or other exchange listing requirements. As a result, an investor
would find it more difficult to dispose of, or to obtain accurate quotations as
to the price of, the Common Stock. In addition, depending on several factors
including the future market price of the Common Stock, the Common Stock could
become subject to the so-called "penny stock" rules that impose additional sales
practice and market making requirements on broker-dealers who sell and/or make a
market in such securities, which could adversely affect the ability or
willingness of the purchasers of Common Stock to sell their shares in the
secondary market.
POTENTIAL ADVERSE EFFECT ON THE MARKET FOR THE COMPANY'S SECURITIES
Effective August 11, 1993, the Securities and Exchange Commission adopted
Rule 15g-9, which established the definition of a "penny stock," for purposes
relevant to the Company, as any equity security that has a market price of less
than $5.00 per share or with an exercise price of less than $5.00 per share,
subject to certain exceptions. For any transaction involving a penny stock,
unless exempt, the rule requires: (i) that a broker or dealer approve a person's
account for transactions in penny stocks; and (ii) the broker or dealer receive
from the investor a written agreement to the transaction, setting forth the
identity and quantity of the penny stock to be purchased. In order to approve a
person's account for transactions in penny stocks, the broker or dealer must:
(i) obtain financial information and investment experience and objectives of the
person; and (ii) make a reasonable determination that the transactions in penny
stocks are suitable for that person and that person has sufficient knowledge and
experience in financial matters to be capable of evaluating the risks of
transactions in penny stocks. The broker or dealer must also deliver, prior to
any transaction in a penny stock, a disclosure schedule prepared by the
Commission relating to the penny stock market, which, in highlighted form: (i)
sets forth the basis on which the broker or dealer made the suitability
determination; and (ii) that the broker or dealer received a signed, written
agreement from the investor prior to the transaction. Disclosure also has to be
made about the risks of investing in penny stocks in both public offerings and
in secondary trading, and about commissions payable to both the broker-dealer
and the investor in cases of fraud in penny stock transactions. Finally, monthly
statements have to be sent disclosing recent price information for the penny
stock held in the account and information on the limited market in penny stocks.
The foregoing required penny stock restrictions will not apply to the
Company's securities in the event such securities are approved for listing on a
national stock exchange and have certain price and volume information provided
on a current and continuing basis. There can be no assurance that the Company's
securities will qualify for exemption from these restrictions if a market ever
develops for the Company's securities. If such a market does develop and the
Company's securities were subject to the rules on penny stocks, the market
liquidity for the Company's securities could be severely adversely affected.
UNDERWRITER'S WARRANT
At the closing of this Offering, the Company will sell to the Managing
Underwriter for nominal consideration a warrant to purchase up to 150,000 shares
of the Company's Common Stock. The Underwriter's Warrant will be exercisable for
a period of four years commencing twelve months after the date of this
Prospectus, at an exercise price equal to 130% of the Offering price per share.
As long as the Underwriter's Warrant or other outstanding warrants remain
unexercised, the Company's ability to obtain additional capital might be
adversely affected. Moreover, the Managing Underwriter or other holders of
outstanding warrants may be expected to exercise such warrants at a time when
the Company would, in all likelihood, be able to obtain any needed capital by a
new offering of its securities on terms more favorable than those provided by
the warrants. Holders of the Underwriter's Warrant and holders of other warrants
have certain registration rights with respect to shares of Common Stock
underlying those warrants. See "UNDERWRITING."
16
<PAGE>
POTENTIAL RULE 144 SALES
3,739,000 of the 4,192,511 shares of common stock of the Company currently
outstanding are "restricted securities," as that term is defined in Rule 144 as
promulgated by the Securities and Exchange Commission under the Securities Act
of 1933, as amended. As restricted shares, these 3,739,000 shares may be resold
only pursuant to an effective registration or under the requirements of Rule 144
or other applicable exemption from registration under the Act as required under
applicable state securities laws.
Rule 144 provides in essence that a person not affiliated with the issuer
who has held restricted securities for a period of one year, under certain
conditions, may sell every three months, in brokerage transactions, a number of
shares which does not exceed the greater of one percent of a company's
outstanding common stock or the average weekly trading volume during the four
calendar weeks prior to the sale. The shares held by the Company's founders
became available for trading in the open market, subject to volume and other
limitations imposed by Rule 144, between July, 1996 and September, 1997;
however, these shares are restricted from sale pursuant to the terms of lock up
agreements between the founders and the Underwriter. There is no limit on the
amount of restricted securities that may be sold by a non-affiliate after the
restricted securities have been held by the owner for a period of two years. A
sale under Rule 144 or any other exemptions from the Act, if available, or
subsequent registrations of common stock of the current shareholders, may have a
depressive effect upon the price of the common stock in any market that may
develop.
DILUTION TO SHAREHOLDERS BY ISSUANCE OF PREFERRED SHARES
The Company's Articles of Incorporation and First Amended and Restated
Bylaws provide that the Company may issue shares of Preferred Stock without
approval of the Company's shareholders. The terms and preferences of any class
of Preferred Stock, including conversion of Preferred Shares into shares of the
Company's common stock and preferred rights to the assets of the Company upon
liquidation, may be determined by the Company's Board of Directors. Such terms
and preferences may result in more shares of the Company's common stock being
issued, which would have a dilutive effect on any common shares or warrants not
protected by anti-dilution provisions. Such terms and preferences may otherwise
adversely affect holders of the Company's common stock. See "DESCRIPTION OF
SECURITIES."
RAPID TECHNOLOGICAL CHANGE
DaViD and Inroads are engaged in businesses (digital versatile disc content
and CD-ROM publishing) that have experienced tremendous technological change
over the past two years. CSB will be engaged in the satellite programming
business shortly after completion of this Offering. The satellite broadcasting
business has also experienced rapid technological changes, as smaller satellite
dishes and services have been introduced over the past three years. The Company
and its investors face all risks inherent in businesses that are subject to
rapid technological advancement, such as the possibility that a technology that
the Company has invested heavily in may become obsolete. In that event, the
Company may be required to invest in new technology. The inability of the
Company to identify, fund the investment in, and commercially exploit such new
technology could have an adverse impact on the financial condition of the
Company. See "BUSINESS." The Company's ability to implement its business plan
and to achieve the results projected by management will be dependent, to some
extent, upon management's ability to predict technological advances and
implement strategies to take advantage of such changes.
PRICE REDUCTIONS IN PERSONAL COMPUTER SOFTWARE--INROADS
Major personal computer software publishers have begun to reduce the prices
of their products in an effort to gain market share. At least one company is
known to have recently distributed its product at no cost, in order to obtain
entry into the market. The retail prices of many of the Company's competitor's
products have declined. There can be no assurance that product price reductions
will abate; if anything, the
17
<PAGE>
growing number of competitors in the personal computer software field suggests
further retail price reductions in the future. Such reductions may lead to a
decrease in gross margins on discounted items, and could result in lower cash
flow and operating margins for the Company. See "BUSINESS--Inroads."
INTELLECTUAL PROPERTY CLAIMS AND LITIGATION
The Company relies on a combination of copyright and trademark laws, trade
secrets, software security measures, license agreements and nondisclosure
agreements to protect its proprietary products. Despite the Company's
precautions, it may be possible for unauthorized third parties to copy aspects
of, or otherwise obtain and use, the Company's software products without
authorization, or to substantially use the Company's concepts and market them,
trading on the Company's established customer base. In addition, the Company
cannot be certain that others will not develop substantially equivalent or
superseding products, thereby substantially reducing the value of the Company's
proprietary rights. Furthermore, there can be no assurance that any
confidentiality agreements between the Company and its employees or any license
agreements with its customers will provide meaningful protection for the
Company's proprietary information in the event of any unauthorized use or
disclosure of such proprietary information. The Company is not aware that any of
its products infringes the proprietary rights of third parties, and is not
currently engaged in any intellectual property litigation or proceedings.
Nonetheless, there can be no assurance that the Company will not become the
subject of infringement claims or legal proceedings by third parties with
respect to current or future products. In addition, the Company may initiate
claims or litigation against third parties for infringement of the Company's
proprietary rights or to establish the validity of the Company's proprietary
rights. Any such claims could be time-consuming, result in costly litigation,
cause product shipment delays or lead the Company to enter into royalty or
licensing agreements rather than disputing the merits of such claims. Moreover,
an adverse outcome in litigation or similar adversarial proceedings could
subject the Company to significant liabilities to third parties, require
expenditure of significant resources to develop non-infringing technology,
require disputed rights to be licensed from others or require the Company to
cease the marketing or use of certain products, any of which could have a
material adverse effect on the Company's business and operating results. To the
extent the Company wishes or is required to obtain licenses to patents or
proprietary rights of others, there can be no assurance that any such licenses
will be made available on terms acceptable to the Company, if at all. See
"BUSINESS."
PRODUCT ERRORS/PRODUCT LIABILITY--INROADS
Software products such as those developed by Inroads often contain
undetected errors or failures when first introduced or as new versions are
released. There can be no assurance that errors will not occur or be found after
commencement of commercial shipments, resulting in loss of or delay in market
acceptance, any of which could have a material adverse effect upon the Company's
business and operating results. Further, the Company's license agreements with
its customers contain provisions designed to limit the Company's exposure to
potential product liability claims. Although the Company has not experienced any
product liability claims, the sale and support of products by the Company
entails the risk of such claims. See "BUSINESS--Inroads."
IMMEDIATE AND SUBSTANTIAL DILUTION
This Offering involves an immediate and substantial dilution of $3.92 per
share of Common Stock, or a 74.6% reduction between the Offering price of $5.25
per share of Common Stock and the net tangible book value of $1.33 per share of
Common Stock upon completion of the Offering, assuming no exercise of the
Overallotment Option, the Managing Underwriter's Warrant or other outstanding
warrants and options, and excluding issuance of 840,000 shares of Common Stock
to Fifth Dimension as part of the Fifth Dimension Assets Acquisition. Upon
completion of the Fifth Dimension Assets Acquisition and the Offering, and
assuming no warrant or option exercise, the Company's Common Stock will have a
net
18
<PAGE>
tangible book value of $.67 per share. This represents total dilution of $4.58
per share, or 87.2%, to investors in this Offering. See "DILUTION."
NO DIVIDENDS
The Company has not paid any dividends on its Common Stock and does not
intend to pay dividends in the foreseeable future. See "DIVIDEND POLICY."
LIMITATIONS ON LIABILITY OF DIRECTORS
The Company's Bylaws substantially limit the liability of the Company's
directors to the Company and its shareholders for breach of fiduciary or other
duties. See "DESCRIPTION OF SECURITIES-- Limitation on Liabilities."
POSSIBLE VOLATILITY OF SECURITIES PRICES
The market price of the Common Stock following the Offering may be highly
volatile, as has been the case recently with the securities of other companies
completing public offerings. Factors such as the Company's operating results,
its ability to complete the Fifth Dimension Assets Acquisition in a timely
manner, and public announcements by the Company or its competitors may have a
significant affect on the market price of the securities. In addition, market
prices for the securities of many small capitalization companies have
experienced wide fluctuations due to variations in quarterly operating results,
general economic conditions and other factors beyond the Company's control.
19
<PAGE>
USE OF PROCEEDS
The gross proceeds to the Company from the sale of 1,500,000 shares of
Common Stock offered hereby are estimated to be $7,875,000 ($9,056,250 if the
Underwriter's Overallotment Option is exercised in full), assuming an offering
price of $5.25 per share. The net proceeds to the Company are estimated to be
approximately $6,601,250 ($7,628,937 if the Underwriter's Overallotment Option
is exercised in full), after deducting estimated underwriting discounts of
$787,500 ($905,625 if the Underwriter's Overallotment Option is exercised in
full) and Offering expenses of approximately $486,250 ($521,688 if the
Underwriter's Overallotment Option is exercised in full), including the Managing
Underwriter's nonaccountable expense allowance of $236,250 ($271,688 if the
Underwriter's Overallotment Option is exercised in full). The Company currently
expects to use the estimated net proceeds as follows:
<TABLE>
<CAPTION>
APPROXIMATE APPROXIMATE
DOLLAR PERCENTAGE OF
APPLICATION OF NET PROCEEDS AMOUNT NET PROCEEDS
- ---------------------------------------------------------------------------- ------------ --------------
<S> <C> <C>
Fifth Dimension Assets Acquisition(1)....................................... $ 3,500,000 53.0%
Tenant Improvement, Relocation and Equipment--Call Center................... 750,000 11.4
DaViD--Acquisition of Titles................................................ 750,000 11.4
Transponder Deposits........................................................ 500,000 7.6
New Equipment Purchases--Uplink Facility.................................... 500,000 7.6
Repayment of Line of Credit................................................. 250,000 3.7
Working Capital and Other General Corporate Purposes(2)..................... 351,250 5.3
------------ -----
Total..................................................................... $ 6,601,250 100.0%
------------ -----
------------ -----
</TABLE>
- ------------------------
(1) Including, but not limited to, acquisition of: trademarks, proprietary
rights and other intellectual property rights associated with the adult
movie programming and broadcasting business; equipment, software technology,
furniture, machinery, appliances and other tangible personal property used
in the satellite uplink and customer call center facilities; any and all
rights Fifth Dimension has in adult programming in any format; all
subscriptions for the Adult Movies Business owned by Fifth Dimension; and
all rights to any "1-800" numbers used by Fifth Dimension in the Adult
Movies Business.
(2) This sum shall be available to fund anticipated increases in accounts
receivable and inventories and for the payment of operational expenses
including salaries, rent and other similar items to the extent revenues from
operations are insufficient for such purposes. Additionally, these proceeds
may be used to acquire the assets or operations of other companies which
would supplement the growth of the Company.
The amounts set forth above are the Company's best estimates only, based
upon the Company's business plan and certain assumptions regarding general
economic and industry conditions and the Company's anticipated future revenue
and expenditures, and merely indicate the proposed use of proceeds. The
foregoing represent estimates only, and the actual amounts expended by the
Company for these purposes and the timing of such expenditures will depend on
numerous factors. The Company may use a portion of the net proceeds to acquire
businesses or companies complementary to the Company's business, although the
Company currently has no specific plans or commitments to acquire any business
or companies other than certain assets owned by Fifth Dimension. Pending use of
the net proceeds for the above purposes, the Company intends to invest such
funds in short-term, interest-bearing, investment-grade obligations and
federally insured certificates of deposit.
20
<PAGE>
DIVIDEND POLICY
The Company has never declared or paid any cash dividends on its capital
stock. The Company currently anticipates that it will retain all future earnings
for use in its business and does not anticipate paying any cash dividends in the
foreseeable future. The payment of any future dividends will be at the
discretion of the Company's Board of Directors and will depend on, among other
things, future earnings, operations, capital requirements, the general financial
condition of the Company, general business conditions and contractual
restrictions on payment of dividends, if any.
DILUTION
The difference between the Offering price per share of Common Stock and the
adjusted pro forma net tangible book value per share after giving effect to this
Offering and the Fifth Dimension assets acquisition constitutes the dilution to
investors in this Offering. Adjusted net tangible book value per share is
determined by dividing the adjusted pro forma net tangible book value of the
Company (total tangible assets less total liabilities) by the number of shares
of Common Stock outstanding. All numbers included herein do not give effect to
the conversion or exercise of any convertible securities or options outstanding
or being sold hereby.
As of June 30, 1997, the net tangible book value of the Company was
$1,017,144, or $.24 per share of Common Stock (based on 4,207,511 shares
outstanding, including 15,000 shares of Preferred Stock converted to Common
Stock). After giving effect to the sale by the Company of the 1,500,000 shares
of Common Stock offered by it hereby and the receipt of estimated net proceeds
to the Company of $6,601,250 (after deducting underwriting discounts and
estimated expenses of this offering), the net tangible book value of the Company
will be $7,618,394, or $1.33 per share. This represents an immediate increase in
the net tangible book value of $1.09 (or 433%) per share to shareholders at June
30, 1997, and an immediate decrease in value of $3.97 per share (or 74.6%) to
investors in this Offering. After giving effect to the Fifth Dimension Assets
Acquisition, the net tangible book value of the Company will be $4,378,660, or
$.67 per share. The following table illustrates the foregoing dilution to the
investors on a per share basis:
<TABLE>
<CAPTION>
<S> <C> <C>
Offering price per share............................................................... $ 5.25
Pro forma net tangible book value per share before Offering............................ $ .24
Increase per share attributable to new investors....................................... $ 1.09
---------
Pro forma net tangible book value per share after Offering............................. $ 1.33
---------
Dilution per share to new investors.................................................... $ 3.92
---------
---------
Pro forma net tangible value per share after Fifth Dimension assets acquisition........ $ .67
---------
Dilution per share to new investors following Fifth Dimension assets acquisition....... $ 4.58
---------
---------
</TABLE>
To the extent outstanding options and Warrants are exercised, further
dilution to new investors in this Offering may result.
21
<PAGE>
The following table sets forth, on an unaudited pro forma basis as of June
30, 1997, the differences in the total consideration and the average price per
share of Common Stock paid by the Company's existing shareholders, investors in
this Offering, and the Fifth Dimension sellers:
<TABLE>
<CAPTION>
TOTAL CONSIDERATION
SHARES PURCHASED ------------------------
------------------------------------------ AVERAGE
APPROX. APPROX. PRICE PER
NUMBER PERCENT AMOUNT PERCENT SHARE
-------------- ----------- ------------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Preferred Conversion.................... 15,000 0.2% $ 85,000 0.7% $ 5.67
Existing Shareholders(1)................ 4,192,511 64.0 1,695,937 13.0 0.41
New Investors........................... 1,500,000(2) 23.0 7,875,000 60.3 5.25
Fifth Dimension Sellers................. 840,000 12.8 3,402,000 26.0 4.05
-------------- ----- ------------- ----- -----
Total................................. 6,547,511 100.0% $ 13,057,937 100.0% $ 1.99
-------------- ----- ------------- ----- -----
-------------- ----- ------------- ----- -----
</TABLE>
- ------------------------
(1) Excludes 948,197 shares of Common Stock reserved for issuance upon exercise
of outstanding warrants; excludes 150,000 shares of Common Stock reserved
for issuance upon exercise of the Underwriter's Warrant. See "UNDERWRITING."
The Quarto warrant to purchase up to 400,000 shares of the Company's Common
Stock will be adjusted depending on the price of the shares offered hereby
and the value of the shares of Common Stock issued to Fifth Dimension
sellers as part of the Fifth Dimension Assets Acquisition. These adjustments
will result in Quarto owning a warrant to purchase 592,531 shares of the
Company's restricted common stock for $4.05 per share. See "RISK
FACTORS--Quarto Warrant" and "BUSINESS."
(2) Excludes up to 225,000 shares of Common Stock that may be sold by the
Managing Underwriter upon exercise of its Overallotment Option. See
"UNDERWRITING."
22
<PAGE>
CAPITALIZATION
The following table sets forth the capitalization of the Company as of June
30, 1997 (i) on an actual basis; (ii) on a pro forma basis as adjusted to give
effect to the sale of the 1,500,000 shares of Common Stock offered hereby at an
assumed price of $5.25 per share, and the application of the net proceeds
therefrom as described under "USE OF PROCEEDS," including completion of the
Fifth Dimension assets acquisition. This table should be read in conjunction
with the Financial Statements and Notes thereto included elsewhere in this
Prospectus.
<TABLE>
<CAPTION>
JUNE 30,
---------------------------
AS
1997 ADJUSTED(2)
------------ -------------
<S> <C> <C>
Long-term obligations, excluding current portion..................................... $ 10,848 $ 1,010,848
Shareholders' equity (deficit):
Common Stock, $.0001 par value, 50,000,000 shares authorized, 4,192,511 shares
issued and outstanding(1)........................................................ 419 --
Common Stock, $.0001 par value, 50,000,000 shares authorized, 6,547,511 shares
issued and outstanding........................................................... -- 655
Series A and B Preferred Stock, $.10 par value, 5,000,000 shares authorized, 15,000
shares issued and outstanding.................................................... 1,500 0
Additional paid-in capital(2)...................................................... 1,779,018 11,783,532
Accumulated deficit................................................................ (763,793) (763,793)
------------ -------------
Total shareholders' equity......................................................... 1,017,144 11,020,394
------------ -------------
Total capitalization............................................................... $ 1,027,992 $ 12,031,242
------------ -------------
------------ -------------
</TABLE>
- ------------------------
(1) Based upon shares issued and outstanding as of June 30, 1997. Does not
include 948,197 shares of Common Stock reserved for issuance upon exercise
of warrants, excluding the Underwriter's Warrant, or any adjustments
thereto.
(2) The "As Adjusted" calculations are net of underwriting discounts and other
expenses of this Offering estimated to total $1,273,750.
23
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
OVERVIEW
New Frontier Media, Inc. ("NOOF" or the "Company") is a holding company with
three wholly-owned subsidiaries and one majority-owned subsidiary: Colorado
Satellite Broadcasting, Inc. ("CSB"); DaViD Entertainment, Inc. ("DaViD");
Boulder Interactive Group, Inc. d/b/a Inroads Interactive ("Inroads"); and Fuzzy
Entertainment, Inc. d/b/a Insight Editions ("In-Sight").
Management has formed CSB to acquire certain assets of Fifth Dimension and,
if the assets acquisition is completed, CSB will operate the Company's
subscription-based and transaction-based television networks. Upon completion of
this Offering and the Fifth Dimension Assets Acquisition, CSB will own, operate
and distribute the leading three C-band adult programming networks: EXXXTASY,
TRUE BLUE, and EXOTICA, collectively referred to hereinafter as the Exxxtasy
Networks. DaViD is in the business of acquiring content rights to existing adult
and unrated motion picture titles for distribution on laserdisc and digital
versatile disc ("DVD"). DaViD currently owns content rights to approximately 500
unrated and adult motion picture titles. Inroads is a CD-ROM software publishing
company, designing and developing CD-ROM titles and licensing third
party-developed titles. In-Sight acquires, produces, and distributes fine art
images and decorative posters.
RESULTS OF OPERATIONS
NEW FRONTIER MEDIA, INC.
The following table sets forth selected operating data for the periods and
upon the basis indicated:
<TABLE>
<CAPTION>
THREE MONTHS ENDED JUNE
YEAR ENDED MARCH 31, 30,
-------------------------- ------------------------
1997 1996 1997 1996
------------ ------------ ----------- -----------
<S> <C> <C> <C> <C>
Sales, net....................................... $ 2,515,802 $ 2,565,671 $ 479,330 $ 625,094
Cost of Sales.................................... $ 2,217,812 $ 1,843,765 $ 451,783 $ 521,525
------------ ------------ ----------- -----------
Gross Profit..................................... $ 297,990 $ 721,906 $ 27,547 $ 103,569
Total Operating Expenses......................... $ 931,342 $ 807,661 $ 277,112 $ 165,286
Other Income (Expense)........................... $ 182,516 $ 91,032 $ 23,772 $ 50,720
------------ ------------ ----------- -----------
Net Income (Loss) Before Income Taxes and
Minority Interest.............................. $ (450,836) $ 5,277 $ (225,793) $ (10,997)
Income Taxes..................................... -- $ (12,147) -- $ (2,454)
Minority Interest in Loss of Subsidiary.......... $ 64,806 -- $ 21,808 --
------------ ------------ ----------- -----------
Net Income (Loss)................................ $ (386,030) $ (6,870) $ (203,985) $ (13,451)
------------ ------------ ----------- -----------
------------ ------------ ----------- -----------
</TABLE>
THREE MONTHS ENDED JUNE 30, 1997 COMPARED WITH THREE MONTHS ENDED JUNE 30, 1996
NEW FRONTIER MEDIA, INC. (THE "COMPANY")
The Company functions as a holding company for its subsidiaries, and as such
generates no independent income. The Company incurs administrative expenses
relating to operation of its subsidiaries, particularly concerning market
making, public relations, and investment banking activities. The Company incurs
expenses related to operation of the Company and its subsidiaries as a public
entity, such as legal, accounting, and public relations costs.
For the three-month period ended June 30, 1997, the Company reported no
income, and total operating expenses of $121,904, compared with total operating
expenses of $62,355 for the same period the prior year. This increase of $59,549
for the period was directly attributable to increases in legal fees (from
24
<PAGE>
$2,494 for the period in 1996 to $27,401 for the same period in 1997),
public/investor relations ($0 in 1996 compared to $33,055 in 1997), and travel
and lodging expenses ($2,587 in 1996 compared to $17,361 in 1997). These
expenses increased primarily due to the Fifth Dimension transaction, and the
undertaking of the Offering by the Company.
DAVID ENTERTAINMENT, INC. ("DAVID")
DaViD reported sales of $390,794 for the three-month period ended June 30,
1997, compared with $634,879 for the same period the prior year. Management
attributes this decrease to DaViD's move from exclusively LaserDisc content and
distribution to a primary emphasis on the DVD market. Total operating expenses
remained constant ($123,835 for the three-month period in 1997 compared to
$116,817 for the same period the prior year). DaViD reported a net loss of
$14,050 for the period, compared to a net profit of $93,650 for the same period
the prior year.
BOULDER INTERACTIVE GROUP, INC. D/B/A INROADS INTERACTIVE ("INROADS")
Inroads reported sales of $99,250 for the three-month period ended June 30,
1997, up from $53,764 for the same period the prior year. Management attributes
this sales growth to the introduction of new titles to the market, as a result
of the strategic alliance with Quarto. Inroads' total operating expenses for the
period increased to $145,777, up from $108,434 for the same period the prior
year, as Inroads hired more personnel and incurred development expenses relating
to commercial exploitation of the Quarto titles. Inroads' net loss for the
period, $50,855, was slightly larger than the net loss of $42,372 for the same
period the prior year.
FUZZY ENTERTAINMENT, INC. D/B/A IN-SIGHT EDITIONS ("IN-SIGHT")
In-Sight reported total revenue of $1,987 for the quarter ended June 30,
1997, along with operating expenses of $10,661 and a net loss of $9,828. The
Company is not currently allocating significant resources to In-Sight.
COMPARISON OF YEARS ENDED MARCH 31, 1997 AND 1996
NEW FRONTIER MEDIA, INC.
The Company's total revenue for 1997 was $2,515,802, down $49,869 (1.9%)
from 1996. Cost of sales increased to $2,217,812 from $1,843,765 the prior year,
resulting in a $423,916 (58.7%) decrease in gross profit for the fiscal year
ended March 31, 1997 from the same period the prior year. The small decrease in
total revenue for 1997, as compared with 1996, is directly attributable to the
normal new product development and introduction timeline experienced by Inroads
as it develops and commercially exploits new titles under the agreement with
Quarto. Total operating expenses increased $148,997 (19.0%), from $782,345 for
the year ended March 31, 1996 to $931,342 for the year ended March 31, 1997,
resulting in a net loss from operations of $450,836 for the fiscal year ended
March 31, 1997. This increase was also due to Inroads beginning to develop and
commercially exploit Quarto-based titles. In particular, Inroads dedicated
significant resources to developing the IN FOCUS and CIGAR COMPANION titles,
both of which were released after the end of the fiscal year. Operating expenses
for NOOF and Inroads remained relatively constant for the year ($277,600 and
$510,715, respectively), while operating expenses for DaViD increased to
$71,216, from $6,801 for the same period the prior year (see Management's
discussion concerning Inroads and DaViD, below). NOOF performs many
administrative functions for Inroads, DaViD, and Fuzzy, and generates little or
no revenue separately. As a result, NOOF reported total revenue of $400, total
operating expenses of $277,600, and a net loss from operations of $277,200 for
the fiscal year ended March 31, 1997, compared with a net loss from operations
of $206,858 for the same period the prior year. Management attributes the higher
net loss for the year ended March 31, 1997 to increased travel and lodging
expenses, office expenses, employee benefits (health plan), and rent expense.
NOOF will continue
25
<PAGE>
to show net operating losses in the future, as it continues to function as the
administrative holding company for its subsidiaries.
DAVID
DaViD is a wholly-owned subsidiary of the Company. DaViD reported a $618,532
(38.8%) increase in revenue for the fiscal year ended March 31, 1997, to
$2,211,388 from $1,592,856 for the same period the prior year; however, revenue
and other financial results for DaviD for the fiscal year ended March 31, 1996
represent only six months' of operations for that year. DaViD reported total
cost of sales of $1,961,933, operating expenses of $71,216, and pre-tax earnings
of $179,039 for the year ended March 31, 1997, compared with total cost of sales
of $1,215,543, operating expenses of $6,801, and pre-tax profit of $353,895 for
the same period the prior year. Management attributes the higher operating
expenses for the year ended March 31, 1997 to increased legal costs, printing
costs, and distribution expenses being allocated away from cost of sales to
operating expense. Management anticipates revenue growth from DaViD, as Digital
Versatile Disc technology advances in 1997 and 1998.
INROADS
In September, 1996, the Company sold 30 percent of its interest in Inroads
to Quarto Holdings, Inc. ("Quarto") for $1,250,000 in cash and $525,000 worth of
digital material. For accounting purposes, the digital material is valued at $0.
Inroads also acquired the rights to develop and commercially exploit Quarto
materials in digital formats as a result of this transaction. Since the date of
the Quarto transaction, Inroads has allocated significant corporate resources to
identifying, developing, and commercially exploiting its first Quarto-based
products. Inroads reported total revenue of $290,994 for the fiscal year ended
March 31, 1997, compared with $971,370 for the same period the prior year.
Management attributes this 70 percent revenue decline to several factors,
including diversion of the Inroads resources to the Ralston Purina project,
normal delays in developing products under the Quarto agreement, and Inroad's
evolving market focus from "edutainment" products to alternative and specialty
products. See "BUSINESS." In addition, management attributes lower revenue
figures to the underperformance of its distributors, and the transition of
Inroads distribution strategy away from software retail outlets and toward
direct sales.
Inroad's latest CD-ROM products are targeted at enthusiasts and hobbyists,
primarily as a result of the titles that Inroads is developing and commercially
exploiting under the Quarto agreement. The Company is currently engaged in a
dispute with Quarto. See "BUSINESS--Legal Proceedings." Inroads dedicated a
major portion of its resources over the past several months to development of
its CIGAR COMPANION interactive CD-ROM, which was released to the market on July
1, 1997. Management believes that Inroads and the Company will realize revenues
from CIGAR COMPANION, based upon the surging popularity of cigars and
cigar-related products in the United States. Cigar Afficianado magazine reports
that in the first quarter of 1997, consumers in the United States purchased over
500 million cigars, a 96 percent increase over 1996 and a 300 percent increase
over 1995.
In addition to CIGAR COMPANION, Inroads has developed and recently released
a photography CD-ROM, IN FOCUS, THE GUIDE TO BETTER PHOTOGRAPHY, utilizing the
material acquired from Quarto. Inroads recently signed agreements for
distribution of IN FOCUS in Spain and Italy. IN FOCUS is co-branded by Olympus
America, which includes a free roll of film from Kodak for every person who
registers the IN FOCUS software with Inroads.
Inroad's MULTIMEDIA GUNS CD-ROM title was listed as the 17th-highest selling
software title on PC DATA's top-selling software list for April, 1997.
MULTIMEDIA GUNS reached number 15 on the PC DATA list for June, 1997. Currently,
Inroads only sells the MULTIMEDIA GUNS title through Wal-Mart at full retail.
Due to the success of MULTIMEDIA GUNS in this limited distribution channel,
CompUSA has agreed to carry the title. Management of Inroads anticipates sales
of MULTIMEDIA GUNS by CompUSA to meet or exceed sales of the title at Wal-Mart.
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The Company is currently engaged in a dispute with Quarto. See
"BUSINESS--Legal Proceedings."
IN-SIGHT
The Company capitalized In-Sight in November and December, 1996. In-Sight
reported total revenue of $13,020, cost of goods of $10,290, operating expenses
of $71,812, and a net loss of $69,082 for the fiscal year ended March 31, 1997.
In-Sight has not yet transitioned into the fully-operational stage. Most of In-
Sight's operating expenses were attributable to consulting expense of $40,187.
Management does not believe In-Sight will be a significant part of the Company's
business in the future.
COLORADO SATELLITE BROADCASTING, INC. ("CSB")
CSB is a wholly-owned subsidiary of the Company, formed to acquire the Fifth
Dimension assets and to operate and distribute the programming networks to be
acquired. Results of operations from the Fifth Dimension assets to be acquired
is discussed at Fifth Dimension Assets, below.
FIFTH DIMENSION ASSETS
The combined statements of income and retained earnings for Fifth Dimension
(Barbados) Inc., 1043133 Ontario Inc., and Merlin Sierra Inc. for the fiscal
year ended March 31, 1997 and 1996, and for the three-month period ended June
30, 1997 and 1996 follow (in U.S. dollars):
<TABLE>
<CAPTION>
THREE MONTHS THREE MONTHS
ENDED JUNE ENDED JUNE YEAR ENDED YEAR ENDED
30, 30, MARCH 31, MARCH 31,
1997 1996 1997 1996
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
(UNAUDITED) (AUDITED)
Sales................................................ $ 3,041,068 $ 3,573,571 $ 15,044,139 $ 12,223,731
Cost of Sales........................................ 1,904,646 2,236,915 9,560,847 6,317,438
------------- ------------- ------------- -------------
Gross Profit......................................... 1,136,422 1,336,656 5,483,292 5,906,293
Expenses............................................. 822,327 1,103,317 4,264,144 3,898,653
------------- ------------- ------------- -------------
Net income from operations........................... 314,095 233,339 1,219,148 2,007,640
Loss on investment in Shares......................... -- 220,000 220,000 --
------------- ------------- ------------- -------------
314,095 13,339 999,148 2,007,640
------------- ------------- ------------- -------------
Provision for (recovery of) income taxes
Current............................................ 20,000 -- 30,350 (113,563)
Deferred........................................... -- (574,980) 71,500 (71,500)
------------- ------------- ------------- -------------
20,000 (574,980) 101,850 (185,063)
------------- ------------- ------------- -------------
Net Income for the period............................ 294,095 588,319 897,298 2,192,703
Retained Earnings (Deficit) beginning of period...... 2,308,758 1,556,388 1,556,388 (636,315)
------------- ------------- ------------- -------------
2,602,853 2,144,707 2,453,686 1,556,388
Dividends paid....................................... -- -- 144,928 --
------------- ------------- ------------- -------------
Retained Earnings end of period...................... $ 2,602,853 $ 2,144,707 $ 2,308,758 $ 1,556,388
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
</TABLE>
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Management of the Company did not direct the operations of Fifth Dimension
or its subsidiaries during the periods reported upon, and have prepared this
discussion of financial condition based upon extensive interviews with
management of those companies and review of the audited and unaudited financial
statements for those companies. "Fifth Dimension," as used herein, refers to
Fifth Dimension (Barbados) Inc., 1043133 Ontario Inc., and Merlin Sierra Inc.
For the three-month period ended June 30, 1997, Fifth Dimension reported
sales of $3,041,068, compared with $3,573,571 for the same period the prior
year. Cost of sales remained constant as a percentage of sales at 62.6%;
however, Fifth Dimension reduced expenses to $822,327 (27.0% of sales) for the
three-month period ended June 30, 1997, compared with $1,103,317 (30.9% of
sales) for the same period in 1996. This resulted in an increase in net income
from operations of $80,756 (34.6%) for the quarter ended June 30, 1997
($314,095) compared with the same quarter the prior year ($233,339). Fifth
Dimension's net income for the quarter ended June 30, 1997 was $294,095, down
from $588,319 for the same period the prior year; however, $574,980 of the net
income for the quarter ended June 30, 1996 was
attributable to recovery of income taxes. Without provision for recovery of
income taxes, Fifth Dimension's net income for the quarter ended June 30, 1996
was $13,339, compared to $314,095 (an increase of $300,756) for the same period
in 1997.
Fifth Dimension's sales increased $2,810,408 (23.0%) to $15,044,139 for the
fiscal year ended March 31, 1997, from $12,223,731 for the prior year. This
increase was due to continued expansion of Fifth Dimension's subscriber-based
adult network programming. There was a significant increase in cost of sales for
the year ended March 31, 1997, up $3,243,409 (51.3%) to $9,560,847 from
$6,317,438 the prior year. Management of the Company attributes a majority of
this increase in cost of sales to related party transactions, set forth in Note
6 to the Financial Statements. Management believes that it can reduce or
eliminate future related party transactions, resulting in cost of sales
approximating 55 percent of sales. Because of the large increase in cost of
sales, and the smaller increase in expenses also associated with related party
transactions, Fifth Dimension's net income from operations fell to $1,219,148
for the fiscal year ended March 31, 1997, a $788,492 (39.3%) drop from the same
period the prior year. Fifth Dimension also suffered a one-time loss on
investment shares of $220,000 for the fiscal year ended March 31, 1997. Fifth
Dimension's net income for the year ended March 31, 1997 was $897,298, compared
with $2,192,703 for the same period the prior year. Management of the Company
attributes this decline in net income primarily to the related party
transactions discussed in Note 6 to the Fifth Dimension Financial Statements,
and the loss on investment shares. Fifth Dimension provided adjusted combined
financial statements to reflect, among other things, reasonable adjustments to
related party transactions and expenses that are not anticipated to reoccur in
the future. Fifth Dimension reported adjusted pre-tax income of $2,755,297 for
March 31, 1997. Managements of the Company relied on the adjusted pre-tax income
in determining the purchase price for the Fifth Dimension assets. See "FINANCIAL
STATEMENTS."
LIQUIDITY AND CAPITAL RESOURCES
The Company's net increase in cash and certificates of deposit for the
fiscal year ended March 31, 1997 was $810,864 (1,671.1%), up from $48,523 to
$859,387. This increase was primarily the result of the Company's sale of 30
percent of Inroads to Quarto for $1,250,000 cash, and digital material which for
accounting purposes has been valued at $0. $841,568 of the Company's cash and
cash equivalents are held in Inroad's bank accounts, and are restricted from
transfer to or use by NOOF or its other subsidiaries by the terms of the Quarto
agreements. NOOF had cash and cash equivalents of $1,384 at March 31, 1997.
DaViD had cash and cash equivalents of $18,441 at March 31, 1997. Fuzzy had cash
and cash equivalents of $(622) at March 31, 1997. NOOF retains some operating
revenue from its share of the net income of DaViD, and by assessing operating
costs to its subsidiaries on a pro rata basis. Completion of this offering and
the subsequent completion of the Fifth Dimension asset acquisition will provide
the Company with sufficient liquidity and capital to operate for the next 12
months.
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<PAGE>
BUSINESS DEVELOPMENT AND OUTLOOK
CSB intends to continue to expand the subscription base of Fifth Dimension
through advertising, marketing, and expansion of services to traditional cable
television providers, while streamlining operations and cutting administrative
and other costs. In addition, CSB is exploring the possibility of launching a
soft-core adult network to compete with PLAYBOY CHANNEL and SPICE.
Digital Versatile Disc ("DVD") Players are quickly becoming part of the
consumer electronic landscape in the United States and abroad. Paul Kagan
Associates, Inc. estimates that approximately 800,000 DVD players will be sold
in the United States by the end of December, 1997 and that this figure will grow
to 10 million by the year 2000. Management believes that the low replication
price of DVD (and the correspondingly low retail price of titles on DVD) will
result in a software to hardware purchase ratio of 5:1. Management expects that
approximately 5 percent of the total forecasted 10 million units of DVD software
sold in 1997, or 500,000 units, will be in the adult entertainment category.
DaViD continues to acquire content rights to unrated and adult motion pictures,
and to release an increasing number of titles per month, primarily on DVD.
Management believes DaViD revenues and net income will continue to grow as DVD
technology is introduced to the consumer market.
Inroads continues to develop new CD-ROM products, and Management believes it
has secured a source of future titles by virtue of the Quarto agreements.
Although CD-ROM software publishing remains a highly competitive business,
Management believes Inroads has begun to demonstrate an ability to create demand
for its products through conventional (e.g., Wal-Mart and CompUSA) and
alternative (e.g., Ralston Purina and Time Warner licensing agreements) retail
channels.
In-Sight is in the early development stages, and Management anticipates
reaching break-even by March 31, 1998.
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BUSINESS
HISTORY OF THE COMPANY
New Frontier Media, Inc. was originally incorporated as Strategic
Acquisitions, Inc. ("Strategic"), a "blank check" company, on February 23, 1988
in the State of Colorado.
On September 7, 1989, Strategic completed a reverse acquisition of National
Securities Network, Inc. ("NSN"), a privately-held Colorado corporation and
registered securities broker-dealer. Strategic issued 470,016,000 restricted
common shares to NSN shareholders, in exchange for all of the issued and
outstanding NSN common stock. Shareholders also approved a change of Strategic's
name to National Securities Holding Corporation ("NSHC"). NSHC continued in
operation as a broker-dealer until October 8, 1990, when it ceased operations
and sold its remaining broker-dealer business to Tamarron Investments, Inc., a
Colorado broker-dealer. NSHC had no operations between October 8, 1990 and
September 15, 1995.
On September 15, 1995, NSHC consummated the acquisition of New Frontier
Media, Inc. in a stock-for-stock exchange. NSHC first effected a 2,034.66:1
reverse split of all 569,706,000 NSHC Common Shares issued and outstanding,
resulting in 280,000 NSHC Common Shares issued and outstanding prior to the New
Frontier acquisition. NSHC shareholders also approved a change of the Company's
name to New Frontier Media, Inc. Currently, the Company has 4,207,511 Common
Shares and 0 Preferred Shares issued and outstanding. The Company is authorized
to issue a total of 50,000,000 Common Shares, par value $.0001 per share, and
5,000,000 Preferred Shares, par value $.10 per share.
All of the Company's current revenues are derived through its subsidiaries:
Boulder Interactive Group, Inc. d/b/a Inroads Interactive ("Inroads"); DaViD
Entertainment, Inc. ("DaViD"); and Fuzzy Entertainment, Inc. d/b/a Insight
Editions ("In-Sight"). The Company anticipates deriving significant revenue from
its fourth subsidiary, Colorado Satellite Broadcasting, Inc. ("CSB") upon
completion of the Fifth Dimension Assets Acquisition. There can be no assurance
that the Company will be able to derive significant, or any, revenues from CSB.
The Company's offices are located at 1050 Walnut Street, Suite 301, Boulder,
Colorado 80302. The telephone number is (303) 444-0632.
OVERVIEW
New Frontier Media, Inc. (the "Company") is a diversified publishing holding
company, doing business through its subsidiaries: CSB, DaVid, Inroads, and
In-Sight. The Company is currently engaged in three primary businesses: (i)
reference CD-ROM publishing; (ii) acquisition and distribution of unrated and
adult feature films in video disc formats; and, (iii) fine art and decorative
art poster publishing and distribution. Assuming successful completion of the
Fifth Dimension Assets Acquisition, the Company (through CSB) will be involved
in subscription-based and transaction-based television programming, particularly
the provision of adult entertainment programming to C-band satellite markets.
The Company's focus is to acquire high-quality content which can be distributed
by the Company and exploited through a wide variety of media. A portion of the
Company's CD-ROM sales are handled through Broderbund Software, Inc.
FIFTH DIMENSION ASSETS ACQUISITION
The Company has entered into agreements to acquire certain assets relating
to the subscription-based and transaction-based adult television networks of
Fifth Dimension.
The assets to be acquired from Fifth Dimension include but are not limited
to:
(a) any and all trademarks, proprietary rights and other intellectual
property rights owned by Fifth Dimension and associated with the Adult
Movies Business. These include but are not necessarily limited to trade
names, trademarks and/or service marks and any goodwill associated with
such trade names, trademarks and/or service marks;
(b) any and all rights Fifth Dimension may have in adult programming in any
format (including master tapes) of feature length films and other films
and programming, interstitial or otherwise, that contain motion picture
material that is nonrated or X-rated and whose main theme
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embodies nudity and/or sexually explicit material between consenting
adults, and all promotional materials and programming related thereto;
(c) all subscriptions for the Adult Movies Business services as of the date
of closing, including all subscriber lists, past and present, and any
other marketing data related thereto, in the possession of Fifth
Dimension;
(d) a complete list of all advertisers, marketing partners and vendors used
by Fifth Dimension in relations to the Adult Movies business and related
services, with contact names, mailing addresses, and phone and fax
numbers;
(e) all rights, title and interest Fifth Dimension may have in 1-800 phone
numbers used for the Adult Movies Business and related services and in
any World Wide Web address and websites used in the Adult Movies
Business;
(f) all rights, title and interests in any permits, licenses, franchises,
consents or authorizations issued by, and all registrations and filings
with, any government agency solely in connection with Adult Movies
Business of Fifth Dimension, whenever issued or filed, (including but
not limited to any permits or licenses from the Canadian
Radio-Television and Telecommunications Commission and any permits or
licenses from the Federal Communications Commission) excepting only
those which by law are non-transferable or those which have expired.
CSB is the Company's wholly-owned subsidiary that will operate the
subscription-based and transaction-based television networks to be acquired from
Fifth Dimension. A substantial portion of the proceeds from this Offering will
be used to complete the Fifth Dimension transaction. See "USE OF PROCEEDS" and
"BUSINESS--Fifth Dimension Assets Acquisition."
Fifth Dimension is a leading provider of subscriber-based premium television
channels (hereinafter "premium channels" or "pay television") and
transaction-based television networks ("pay-per-view"). Fifth Dimension owns,
operates and distributes the three leading C-band adult programming networks,
and is a leading provider of explicit adult programming via direct to home
("DTH") C-band satellite. Pursuant to the terms of the Asset Purchase Agreements
between the Company and Fifth Dimension, the Company will acquire certain assets
from Fifth Dimension, including the satellite uplink facility equipment, call
center facility equipment, satellite transponder subleases, film inventories,
intangible assets (including trade names, trademarks, service marks, copyrights,
mask work rights, licenses, brand names, trade secrets, trade dress, technical
know-how, good will, and other intangibles), subscriber base and lists, vendor
lists, books and records, permits and licenses, and all other property of Fifth
Dimension used in connection with Fifth Dimension's adult programming business.
The Company will enter into an Uplink Management Services Agreement and a Call
Center Interim Services Agreement with Fifth Dimension, pursuant to which Fifth
Dimension will operate, maintain, manage, and sustain the satellite uplink
facility and will receive and process subscriber calls until the Call Center can
be relocated to the Denver, Colorado metropolitan area. See "BUSINESS."
The assets to be acquired from Fifth Dimension generated sales of
$15,044,139 and pre-tax income of $897,298 (pre-tax income, as adjusted for
non-recurring expenses and related party transactions, would have been
$2,755,297) for the year ended March 31, 1997. The Company has agreed to acquire
certain Fifth Dimension assets for a total purchase price of $7,900,000,
consisting of $3,500,000 in cash, Common Stock of the Company valued at
$3,402,000, and a promissory note for $1,000,000. The Company evaluated certain
non-recurring costs included in the operation of Fifth Dimension in arriving at
the purchase price for the assets. The Company believes approximately $1,800,000
of expenses incurred by Fifth Dimension for the year ended March 31, 1997 will
not recur in the future, including excess salaries and related-party payments of
approximately $850,000, loss on investment shares of $220,000, certain legal
fees of approximately $100,000, approximately $415,000 of costs for duplication
of existing facilities and operations that the Company already has in place, and
other non-recurring costs of approximately $215,000. Terms of the Asset Purchase
Agreements provide that the Company will issue 840,000 shares of Common Stock to
Fifth Dimension as part of the purchase price. The Company will also issue Fifth
Dimension or its assignees warrants to purchase up to an additional 400,000
shares of the Company's Common Stock at $5.00 per
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share, all pursuant to the terms of the Asset Purchase Agreements and the
Warrant Agreement. See "BUSINESS--Fifth Dimension Assets Acquisition." The
Company has also agreed to pay Fifth Dimension "formula profits" exceeding
$2,000,000 for the first 12 months after closing. "Formula Profits" is defined
in the Asset Purchase Agreements as the total revenue from operations minus
actual operating costs. Maximum operating costs under this provision are limited
to an amount not greater than 125% of the projected costs set forth in Schedule
2.1(f) to the Asset Purchase Agreements. Schedule 2.1(f) details projected costs
of $12,294,444, and maximum operating costs of $15,368,055.
The Company believes it can enhance shareholder value by:
- Integrating the Fifth Dimension Assets into the Company via CSB, which is
currently a shell corporation;
- Substantially reducing operating costs associated with the Fifth Dimension
assets by moving the Call Center to Denver, Colorado;
- Eliminating related-party leases and payments that were previously made by
Fifth Dimension;
- Reducing licensing fees by combining the purchasing power of DaViD and
CSB; and
- Utilizing personnel of Inroads to implement simultaneous "web casting" of
CSB programming via the Internet.
In the asset purchase agreements, Fifth Dimension has agreed to indemnify,
defend, and hold harmless the Company against claims and losses that "arise,
result from or relate to any breach of, or failure by [Fifth Dimension] to
perform, any of [its] representations, warranties, covenants or agreements..."
under the agreements. The asset purchase agreements do not contain standard
cross-indemnification language particularly relating to claims, losses, costs,
damages, and liabilities that may arise after closing as a result of acts that
occurred prior to closing. The Company intends to acquire the Fifth Dimension
assets and operate the adult satellite network business through its wholly-owned
subsidiary CSB. A significant portion of the net proceeds from this offering are
allocated to this transaction. See "USE OF PROCEEDS." The Company, through CSB,
intends to operate its television network business in much the same way that
Fifth Dimension is currently operating its network business.
OVERVIEW--ADULT ENTERTAINMENT INDUSTRY
Despite nearly two decades of intense political campaigning against adult
entertainment, consumer purchases of adult entertainment have increased
dramatically. Adult Video News, an adult entertainment industry trade
publication, estimated the number of explicit adult video rentals rose from 75
million in 1985, to 490 million in 1992, and finally to an all-time high 665
million in 1996. Adult Video News reported that Americans spent more than $8
billion in 1996 on all forms of sexually explicit materials.
During the 1980s, the availability of adult movies on videocassette and on
cable television helped to legitimize the consumption of explicit material by
putting it in the home setting. The result, in the opinion of Management, has
been the legitimization of industry products by other businesses not
traditionally associated with the adult entertainment industry. Video stores
(video rentals), long distance telephone carriers (adult conversation lines,
internet adult services), satellite providers (transponder leases, adult
networks), cable companies (adult channels and networks), hotel chains
(soft-porn movies), and even mutual funds (investments in publicly-traded adult
entertainment companies) earn significant returns by supplying or investing in
adult entertainment either directly or indirectly.
The distribution of sexually explicit material is intensely competitive.
Hundreds of companies now produce and distribute films to wholesalers and
retailers, as well as directly to the consumer. The low cost of videotape and
the introduction of low cost video tape recorders, along with the minimal
production budgets of many adult films, has resulted in much lower barriers to
entry in the adult entertainment industry. The availability of adult films on
videocassette has virtually destroyed the adult theatre business.
The inclusion of "soft core" material routinely available on a variety of
cable television networks reinforces consumer demand. Americans spent over $150
million on adult pay-per-view in 1996, according to a recent article in U.S.
NEWS AND WORLD REPORT magazine (February 10, 1997). Cable companies such as Time
Warner, TeleCommunications, Inc., and Continental Cablevision offer non-explicit
services like the
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PLAYBOY CHANNEL and SPICE. According to public documents, the PLAYBOY and SPICE
channels generate as much as $200 million in revenue from cable and DTH
satellite services. Both companies have launched overseas services.
The adult entertainment industry continues to grow as technological advances
allow easier and more private access to products. Most major hotel chains,
including Marriott, Hyatt, and Hilton, offer in-room non-explicit adult
programming through services such as SPECTRAVISION and ON COMMAND. The
tremendous growth of the Internet, including chat rooms and web sites dedicated
to adult entertainment, has resulted in millions of potential customers
accessing these sites from the relative privacy of their personal computers. In
a recent ruling, ACLU v. Reno, the Supreme Court struck down portions of the
Communications Decency Act. Finally, telephone sex services continue to report
record sales. Industry sources estimate that total revenues generated in the
telephone sex business in 1996 exceeded $1 billion. Management believes that the
adult entertainment industry in general, and the private viewing segment of that
industry in particular, will continue to experience significant growth in the
coming years, particularly as advances in technology allow more private and
secure adult access to adult themed material.
OVERVIEW--FIFTH DIMENSION
Fifth Dimension is a leading provider of subscriber-based premium television
channels ("premium channels" or "pay television") and transaction-based
television networks ("pay-per-view"). Fifth Dimension currently owns, operates,
and distributes the three leading C-band adult programming networks: EXXXTASY,
TRUE BLUE, and EXOTICA (collectively referred to hereinafter as the "Exxxtasy
Networks"). Fifth Dimension, through the Exxxtasy Networks, is a leading
provider of explicit adult programming via direct to home ("DTH") C-band
satellite. To a lesser extent, Fifth Dimension provides its services through
cable television and wireless cable television multiple system operators
("MSOs"). Fifth Dimension does not currently provide Ku-band (small dish or
digital satellite) services. Fifth Dimension sells its network programming on a
subscription basis and on a pay-per-view basis. Premium channel subscribers and
pay-per-view subscribers have television set-top decoder boxes. They purchase
block programming (e.g., one day, one month, one year), or single movies or
events for a flat fee. As of March 31, 1997, the Exxxtasy Networks are available
to an estimated 2.35 million C-band DTH subscribers, and approximately 20,000
MSO subscribers. The Exxxtasy Networks have distribution agreements with nearly
every major distributor of C-band satellite programming in the United States.
Fifth Dimension has been unable to significantly expand its Exxxtasy
Networks distribution base primarily due to the refusal of MSOs and digital
satellite companies to carry explicit adult programming. CSB intends to launch a
branded, non-explicit service to compete with PLAYBOY CHANNEL and SPICE, the two
leading MSO and digital satellite adult networks. The Company has allocated a
small portion of the net proceeds from this Offering to continue evaluation of
the costs and timing of launching such a service. Management estimates a cost of
over $2 million and a timeframe of 12 to 24 months to launch a branded soft-core
adult network. In all likelihood, the Company would be required to seek
additional financing to fund this project. Fifth Dimension aggressively promotes
its networks' brand names with bold logotypes and high-quality interstitial
programming between feature films and special programming. The Exxxtasy Networks
also offer home shopping programming between feature film and special
programming, featuring adult theme products. The Exxxtasy Networks sell air time
to third parties who provide adult-oriented entertainment and information
through pay-per-call telephone lines.
EXXXTASY, TRUE BLUE, and EXOTICA each features approximately 36 movie titles
per week, or 100 to 150 movies each month, with at least 15 first-time
exhibitions per month. There is no cross-over programming between channels. All
channels are available 24 hours per day, featuring a mix of standard industry
format 90 minute feature films and special 30- and 60-minute features and
interviews. Staggered movie start times occur three times daily, allowing for
maximum viewing flexibility. Currently, the Exxxtasy Networks deliver explicit
adult programming exclusively.
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EXXXTASY (TELSTAR T-405, CHANNEL 19)
EXXXTASY is the premium channel of the three channels that make up the
Exxxtasy Networks. As of April 3, 1997, EXXXTASY had 43,355 subscribers.
EXXXTASY offers a diverse programming mix within the adult genre, consisting of
movies and specials that appeal to a wide variety of sexual preferences. Each
day of the broadcast week is specially constructed to deliver the widest variety
of sexually explicit programming in addition to special thematic segments and
features. EXXXTASY is available on an all-day pay-per-view basis ($6.95), as
well as periodic 1-month ($21.95), 3-month ($53.95), 6-month ($89.95), and
1-year ($149.95) subscriptions. Exxxtasy Networks does not allow refunds, and
services may be exchanged on an equal basis only. CSB does not intend to alter
the name, format or subscription structure of EXXXTASY, following completion of
the Fifth Dimension assets acquisition.
TRUE BLUE (TELSTAR T-405, CHANNEL 05)
TRUE BLUE is the budget service in the Exxxtasy Networks family. As of April
3, 1997, TRUE BLUE had 45,289 subscribers. TRUE BLUE is a leader in "classic"
adult programming (professional titles more than 5 years old), and features a
mix of amateur adult movies and classic adult feature films. "Amateur" movies
are those typically produced by unpaid producers and actors, utilizing
consumer-grade film, equipment, sets, etc. TRUE BLUE is available on an all-day
pay-per-view basis ($6.95), as well as periodic 1-month ($15.95), 3-month
($39.95), 6-month ($67.95), and 1-year ($109.95) subscriptions. Exxxtasy
Networks does not allow refunds, and services may be exchanged on an equal basis
only. CSB does not intend to alter the name, format or subscription structure of
TRUE BLUE, following completion of the Fifth Dimension assets acquisition.
EXOTICA (TELSTAR T-405, CHANNEL 22)
EXOTICA features a new movie every 90 minutes. As of April 3, 1997, EXOTICA
had 38,442 subscribers. EXOTICA offers a mix of recent adult feature film hits,
new adult features, European adult films, and classic adult features. EXOTICA is
available on an all-day pay-per-view basis ($6.95), as well as periodic 1-month
($18.95), 3-month ($46.95), 6-month ($89.95), and 1-year ($139.95)
subscriptions. Exxxtasy Networks does not allow refunds, and services may be
exchanged on an equal basis only. CSB does not intend to alter the name, format
or subscription structure of EXOTICA, following completion of the Fifth
Dimension asset acquisition.
GOVERNMENT REGULATION
In 1996, the United States Congress passed the Telecommunications Act of
1996 (for this paragraph only, the "Act"), a comprehensive overhaul of the
Federal Communications Act of 1934. Section 641 of the Act requires full audio
and video scrambling of channels which are primarily dedicated to "sexually
explicit" programming. If a multi-channel video programming distributor,
including a cable television operator, cannot comply with the full scrambling
requirement, then the channel must be blocked during the hours when children are
likely to be watching television, i.e., from 6:00 a.m. to 10:00 p.m. Both non-
explicit programming providers (such as Playboy, Inc.) and explicit programming
providers (such as Exxxtasy Networks) feature "sexually explicit" programming
within the contemplation of Section 641 of the Act. Although all adult
programming companies fully scramble their signals for security purposes,
several cable television MSOs lack the technical capability to fully scramble
the audio portion of the signal. These cable systems would be required to block
adult broadcasts between 6:00 a.m. and 10:00 p.m. Both Spice, Inc. and Playboy,
Inc. predict that revenues from cable television distribution sources could be
negatively affected by as much as 25% as a result of this provision, until new
equipment can be installed. The Company should not be impacted by this
provision, until and unless it decides to launch a non-explicit service to
compete with SPICE and the PLAYBOY CHANNEL.
The vast majority of Fifth Dimension's customers receive their broadcast
signals from a fully secure, fully-scrambled distribution source. Section 641 of
the Act should only affect the Company if it decides to pursue cable television
MSOs as a source of distribution for its programming.
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NETWORK PROGRAMMING
All of the Exxxtasy Networks' broadcast programming is acquired from third
party adult content studios. In most cases, Fifth Dimension pays a flat rate
ranging from $200 to $2,000 for unlimited broadcast rights to a feature film for
a specified period of time (usually one to three years). Fifth Dimension has
established relationships with nearly all of the major adult movie studios, and
purchases a wide variety of programming from each on a monthly basis. These
studios send Betacam SP, 1" or 3/4" master tapes to a dubbing facility in Los
Angeles, California. Dubbed copies of the programming are then forwarded to the
uplink facility, where they are screened and edited, if necessary, for quality
control purposes and to comply with running time requirements. CSB intends to
enter into an agreement with a U.S.-based company to create interstitial
programming (promotional segments, Network IDs, and movie trailers) for the
Exxxtasy Networks, following completion of the Fifth Dimension assets
acquisition.
NETWORK DELIVERY
THE C-BAND SATELLITE BUSINESS
There are currently approximately 2,300,000 C-band "big dish" satellite
systems in place in the United States. These systems feature the larger diameter
receivers. C-band systems, with their ability to scan different satellites,
offer owners an enormous variety of programming, significantly more than any
other service or delivery system (such as cable or digital satellite, which
locks on only one satellite). C-band satellite owners incur no cable charges,
premium channel costs (although this is changing, as premium providers have
begun to scramble their signals), or program supplier fees. In the past several
years, the market for C-band satellites has declined significantly, as small
digital satellite services (Ku-band) have flourished. These 18-inch digital
satellite dishes are much less expensive than the large C-band satellite
hardware ($200 versus approximately $3,000 for C-band), are relatively easy to
mount in unobtrusive locations, and offer digital channels. C-band satellite
equipment is also negatively affected by stricter zoning regulations and
covenant restrictions.
Approximately 90,000 C-band system owners replaced their big dishes with the
smaller Direct Broadcast Satellite ("DBS") dish systems in the last year,
according to General Instruments Access Control Center. Management believes the
C-band equipment base will remain in the 2,300,000 to 2,500,000 units range for
the next several years.
The introduction and rapid growth of the number of digital channels, due to
introduction of DBS and reduced transponder costs, affects C-band satellite,
which is broadcast in analog format. Management believes digital and analog
formats will co-exist for several years, and that new technologies will allow
C-band systems to receive digital channels. For example, General Instruments'
new 4DTV technology enables C-band users to watch programming transmitted via
DigiCipher II format. C-band continues to be the "work horse" of the satellite
entertainment industry. Every major cable system in the United States is C-band
based, delivering dozens of C-band channels to more than 65 million subscribers.
Hundreds of government, corporate, education, and network broadcasters use
C-band. C-band is also the preferred method of transmitting sports backhauls,
satellite news gathering, international broadcasts, and syndicated program and
wild feeds.
Management believes that C-band also offers a more stable delivery source,
particularly concerning satellite lifespan. Most satellites have a service life
of approximately 15 years; however, when cosmic accidents occur, as in the case
of the Telstar 401 in January, 1997, all channel occupants on that satellite
must find immediate replacement residency. In the case of the Telstar 401, all
channels were switched to other satellites that C-band customers could access
within a matter of hours. DBS customers, who are locked on one satellite, could
suffer significant delays in service if their satellite experienced a problem
similar to the Telstar 401 accident. It is unlikely the DBS provider would be
able to find an empty, viable "spare" satellite already in orbit to switch to.
Such a switch would involve re-programming every DBS dish to the new satellite
location. A more likely scenario would involve launch of a replacement
satellite, which could take weeks or months.
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The future of C-band is, in the opinion of management, far less volatile.
The gradual changeover from analog to digital satellites will proceed as the
market dictates. This slow, deliberate change could take as long as 15 years to
fully implement. In the meantime, the introduction of digital receivers in the
C-band market can be expected.
SATELLITE TRANSMISSION
Fifth Dimension delivers its video programming to its C-band customers (and
to a lesser extent to cable television customers) via satellite transmission.
CSB intends to continue to deliver the Exxxtasy Networks via satellite, as the
most efficient means of delivery available for point to multi-point
distribution. Satellite delivery of video programming is accomplished as
follows:
Video programming is played directly from the uplink facility. The program
signal is then scrambled (encrypted) so that the signal is unintelligible unless
it is passed through the proper decoding devices. The signal is then transmitted
(uplinked) by the earth station to a designated transponder on a communications
satellite. The transponder receives the program signal uplinked by the earth
station, amplifies the program signal and broadcasts (downlinks) it to satellite
dishes located within the satellite's area of signal coverage. The signal
coverage of the domestic satellite currently utilized by Fifth Dimension, and to
be utilized by CSB, is the continental United States, Hawaii, portions of the
Caribbean, Mexico, and Canada. Each transponder can retransmit one complete
analog color television signal, together with associated audio and data
sidebands.
For cable systems, the scrambled signal received by the cable system's
satellite dish is then descrambled. The cable system then rescrambles the signal
using rescrambling technology that is compatible with the addressable set top
decoders deployed in its system, and then distributes the signal throughout its
cable system. The satellite receivers of DTH and Digital Satellite customers
contain descrambling equipment. To offer pay-per-view services, the set top
boxes or satellite receivers must have an electronic "address" and the cable
system or satellite service provider must be able to remotely control each
customer's set-top box or satellite receiver, and cause it to descramble the
television signal for a specific period of time after the customer has made a
purchase of a premium service or pay-per-view movie or event. The ability to
control the scrambling and descrambling of a signal from a cable system's
facilities is essential for marketing and delivery of pay-per-view programming
services.
TRANSPONDER AGREEMENTS
In 1992, Fifth Dimension entered into contracts with AT&T's satellite
division to lease four channels on Telstar 401. Fifth Dimension delivered
Exxxtasy Network broadcasts utilizing Telstar 401 until January 11, 1997, when
Telstar 401 experienced an irreversible equipment failure. Fifth Dimension
immediately moved its transponders to AnikE2 (2) and Telstar 402R (2), and has
delivered its Exxxtasy Networks programming since January, 1997 via these two
satellites. Fifth Dimension has entered into an agreement to lease three
transponders on Telstar 405, a new AT&T satellite that was placed in service in
June, 1997. CSB will immediately benefit from the non-cancelable sublease
agreement on the three transponder slots on the new Telstar 405 satellite. CSB
plans to provide the three Exxxtasy Networks channels on the Telstar 405.
Initially, the 24-hour "barker" or promotional channel will be available on GE1,
a popular satellite with a broad-based entertainment and information programming
lineup. Within 90 to 120 days after the Fifth Dimension Assets Acquisition, CSB
intends to exchange its GE1 slot for a third slot on Telstar 405, and move the
barker to Telstar 402R. This will enable CSB to promote the Exxxtasy Networks on
the same satellite (Telstar 402R) where most competitors' services are offered.
UPLINK FACILITY
Fifth Dimension maintains a fully operational uplink facility in Ottawa,
Canada, dedicated exclusively to the Exxxtasy Networks. An uplink facility is
the means by which a video signal can be sent to a designated satellite
transponder so that it can be broadcast back to the earth to reach a large
geographic territory. The Ottawa uplink facility is equipped with the necessary
satellite equipment, editing equipment, power supplies and other equipment
necessary to provide 24-hour programming for its three networks,
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plus a barker channel. CSB intends to enter into a contract with Fifth
Dimension, whereby Fifth Dimension will operate the uplink facility for a period
of at least one year from the date of the Fifth Dimension assets acquisition.
CALL SERVICE CENTER
Fifth Dimension currently maintains a call service center in Ottawa, Canada.
CSB intends to relocate the call service center to the Denver, Colorado
metropolitan area. The call service center will employ approximately 30
part-time operators and 2 full-time managers. The call service center receives
incoming calls from customers wishing to order network programming, or having
questions about service or billing. The call service center is accessed from
anywhere in the U.S. or Canada via a toll-free "800" number. It is equipped with
approximately 30 work stations, each of which contains a networked computer work
station, proprietary order processing software, and telephone equipment. These
components are tied into a master switch which routes incoming calls and enables
orders to be processed and subscriber information to be updated "on-line."
The call service center is operational 24 hours each day, and staffed
according to call traffic patterns which take into account time of day, day of
the week, seasonal variances, holidays, and special promotions. Customers pay
for their orders with credit cards, which are authorized and charged before the
order is sent electronically to General Instrument's satellite operations
facility in San Diego, California for processing. General Instrument receives
the subscriber order and the subscriber's identification information, and sends
a signal up to the appropriate satellite, which "unlocks" the service ordered
for the applicable period of time.
COMPETITION
The market for adult premium channel and pay-per-view programming is divided
into two separate and distinct types of programming: explicit adult programming
networks, and non-explicit programming networks. Explicit adult programming,
like that offered by Exxxtasy Networks, consists of movies and other programming
that contains sexually explicit film and video, and which is generally referred
to as "X-rated" adult material. Non-explicit material is edited so as to be
acceptable under the self-imposed guidelines of the cable television and digital
satellite industries. Non-explicit programming, while generally not rated by the
Motion Picture Association of America, would receive an "R" rating if submitted
for review. The following table illustrates the Company's competitors in the
explicit adult network industry:
<TABLE>
<CAPTION>
PRICE
NAME OF SERVICE SUBSCRIBERS (PPV ALL DAY; ANNUAL) DISTRIBUTION DESCRIPTION OF SERVICE
- ---------------- ----------- --------------------- -------------- --------------------------------------------
<S> <C> <C> <C> <C>
Eurotica 30,000 $8.99;$129.99 C-band only Emerald Media, Inc.'s explicit channel; mid
quality progamming.
XXXCite 5,000 n/a; $59.95 C-band only Emerald Media, Inc.'s second explicit
channel. Plays programming already aired on
Eurotica.
X! Channel 24,000 $8.99/$59.95 C-band only Owned by Emerald Media, Inc. Low quality,
budget programming.
XXXPlore 40,000 $8.99/$59.95 C-band only Emerald Media, Inc. Same programming as X!
Channel.
Exxxtasy 43,355 $6.95/$149.95 C-band only Premium Channel. High quality programming,
high price.
True Blue 45,289 $6.95/$109.95 C-band only Classic and Amateur programming. Budget
priced.
Exotica 38,422 $6.95/$139.95 C-band only Complimentary high-quality film and video
programming for Exxxtasy subs.
</TABLE>
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EUROTICA/XXXCITE
These are premium channels owned by Emerald Media, Inc. Spice licenses
content for use by Emerald Media, Inc., sub-leases transponder slots to Emerald
Media, Inc., and provides playback services for Emerald Media, Inc. Management
believes Eurotica/XXXcite offer fewer movies per month than the Exxxtasy
Networks.
X! CHANNEL/XXXPLORE
These channels are also owned by Emerald Media, Inc. This competitor offsets
lower-quality programming by offering a low annual subscription rate ($59.95).
The Company will face general competition from other forms of non-adult
entertainment, including sporting and cultural events, television, feature
films, and non-explicit programming. In addition the Company will face
competition in the adult entertainment arena from other providers of explicit
programming, adult video rentals and sales, adult film theaters, newspapers and
magazines aimed at adult consumers, telephone talk lines ("telephone sex"
services), and adult-oriented Internet services.
MARKETING
Fifth Dimension markets its services primarily through a free, 24-hour
satellite channel which promotes the programming featured on the Exxxtasy
Networks. This channel, known as a "barker" channel, uses non-explicit movie
clips and interstitial programming to entice viewers who are "channel surfing"
to subscribe to one of the Exxxtasy Networks channels (periodic subscription),
or the purchase a "block" of programming (a single pay-per-view movie or event,
or an all-day purchase). To a lesser extent, Fifth Dimension advertises in print
publications such as satellite channel guides or adult themed magazines. Fifth
Dimension also aggressively markets its Exxxtasy Network programming directly to
satellite program packagers or distributors, through direct marketing campaigns,
face-to-face meetings, trade show exhibits and industry gatherings. The
distributors represent an important source of advertising and marketing
materials for the Exxxtasy Networks. Fifth Dimension's marketing department has
developed numerous programs and promotions to support the Exxxtasy Networks.
These have included the development of detailed monthly program guides, glossy
promotional pieces, and celebrity appearances at industry trade shows. CSB plans
to continue to market the Exxxtasy Networks in the same manner as Fifth
Dimension.
BUSINESS DEVELOPMENT STRATEGY
Together, the Exxxtasy Networks currently have the largest number of
explicit adult programming customers in the industry. CSB intends to continue to
acquire high-quality adult movie titles and features, and to market the Exxxtasy
Networks as they have been previously marketed by Fifth Dimension.
Management believes that numerous synergies exist between the Company and
the assets to be acquired from Fifth Dimension. The Company is already involved
in the adult entertainment video business through its subsidiary DaViD, the
largest publisher and distributor of adult video discs (LaserDisc and Digital
Versatile Disc) in the world. DaViD acquires video programming from every major
adult movie studio and many independents. Management believes DaViD and CSB can
achieve significant savings in licensing fees by combining their content
acquisitions and expertise.
The Company is also engaged in the software publishing business through its
subsidiary Inroads. Inroads' personnel are highly-skilled software engineers
with strong video compression and Internet-based capabilities. CSB plans to
construct an Internet link via fiber optic cable from its uplink facility, to
enable simultaneous "web-casting" of its programming.
As part of the Fifth Dimension Assets Acquisition, the Company will acquire
Fifth Dimension's internet site and customer base. After the acquisition, CSB
intends to upgrade the website www.Exxxtasy.com to include live one-on-one adult
video feeds, through the Company's www.sexsee.com site, and to add a variety of
other adult products and services.
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Mark H. Kreloff, the Company's Chief Executive Officer and president, as
well as several of the Company's largest shareholders, have been involved in the
cable television industry to a significant extent over the last 20 years.
Management believes that it can utilize this experience to its advantage,
particularly as CSB approaches MSOs as a distribution source of explicit and
non-explicit programming.
LAUNCH OF NON-EXPLICIT, BRANDED NETWORK
Two companies, Playboy, Inc. and Spice, Inc., currently dominate the
non-explicit adult programming arena, a $259 million retail revenue industry
segment. Playboy offers the PLAYBOY CHANNEL and ADULTVISION, and Spice offers
SPICE/ADAM & EVE NETWORKS. Playboy is the dominant participant in the
non-explicit adult programming television network business, with 1996 revenues
of $44 million and strong brand name recognition. Playboy's programming consists
of high-quality specials and edited or "cable version" adult films. Spice
generated $33 million in revenues for the year ended December, 1996. Spice has
experienced unfavorable financial results in the past two years due to
unsuccessful attempts to diversify out of the adult movie business and poor
returns on international and non-core business investments. As a result, Spice
has limited resources to expand its business. Spice does not have strong brand
name recognition, and its programming is considered to be inferior to that
offered by Playboy.
Fifth Dimension has been successful in significantly impacting Spice's
revenue from the C-band market over the past three years. Management of the
Company believes it may attempt to enter the non-explicit adult programming
business by forming a joint venture with a branded adult magazine or other
highly-recognizable name brand. Management has begun discussions with companies
that meet the criteria of offering high-quality adult products combined with
superior name recognition from the buying public. A portion of the net proceeds
of this offering may be utilized to undertake entry into the non-explicit adult
programming business.
INTERNATIONAL OPPORTUNITIES
Fifth Dimension has begun discussions with numerous parties in Europe, Asia,
and South America to launch explicit and non-explicit services in these
geographic areas. Management of the Company intends to continue these
discussions. These discussions are in the preliminary stages, and there can be
no assurance that any of these discussions will result in completed deals for
the Company in the future.
MARKETING THE EXXXTASY NETWORKS TO CABLE TELEVISION MULTIPLE SYSTEM
OPERATORS
Cable television multiple system operators are facing increasing competitive
pressure from digital satellite providers. Many of these MSOs are seeking ways
to differentiate their services. Recently, Fifth Dimension successfully secured
distribution for its explicit programming on two cable television systems. Based
on this success, CSB intends to focus its efforts on the bottom to middle tier
cable television MSOs, and launch a major marketing effort to increase awareness
of the Company's alternative programming. Management hopes to gradually persuade
smaller MSOs to carry the Exxxtasy Networks.
DAVID
DaViD is a leading content owner of feature-length adult and unrated motion
pictures for the video disc markets.
LASERDISC CONTENT LICENSING
DaViD is primarily engaged in the licensing of existing feature-length adult
and unrated motion picture content for periods ranging from seven years to
perpetuity, for distribution on all formats of video disc media (e.g., LaserDisc
and Digital Versatile Disc, or "DVD"). DaViD licenses its motion picture
programming from approximately ten motion picture studios and/or licensors.
DaViD has purchased approximately 90% of its titles for single licensing fees,
ranging from $2,000 to $5,000 per title. Over 50% of DaViD's exclusive licensing
agreements are for "all formats of laser video disc whether now known or
hereafter devised." Current formats exploited by DaViD, or which DaViD intends
to exploit, include 8"and
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12" LaserDisc, CD-ROM (QuickTime-TM- Compression), VideoCD (MPEG1 Video
Compression), and Digital Versatile Disc (MPEG2 Video Compression), collectively
referred to as "Video Discs."
DaViD's typical exclusive distribution term ranges from seven years to
perpetuity. Exclusive distribution territory ranges from North America
(approximately 40% of DaViD's titles) to worldwide (approximately 60% of DaViD's
titles). For a few, high-quality titles in DaViD's library (approximately five
percent of total library titles), DaViD pays royalties ranging from ten to
twenty percent of collected wholesale revenues.
DaViD has reached a definitive agreement to acquire a library of
approximately 350 adult feature film rights for distribution on 8" and 12"
LaserDisc and DVD, for $2,000 to $5,000 per title. The distribution term for
these titles ranges from seven years to perpetuity. These titles range in
content from Japanese animation to foreign films to adult entertainment. DaViD
sells its 8" and 12" LaserDisc titles on a worldwide basis under the LASERDISC
ENTERTAINMENT label, and plans to sell its 5 1/4" Digital Versatile Disc titles
under the DAVID ENTERTAINMENT label. DaViD is currently negotiating to acquire
Digital Versatile Disc rights to approximately 500 additional adult and unrated
feature films, and expects to begin exploiting these rights in late 1997 and
1998, when the projected installed base of Digital Versatile Disc hardware is
expected to be a minimum of 2 million households.
DaViD's contracted acquisition library includes classic and new release
adult features such as CALIGULA, INSATIABLE, LES FEMMES EROTIQUE, and HIDDEN
OBSESSIONS, foreign feature films such as the award-winning Japanese film IN THE
REALM OF THE SENSES, and Japanese animation titles such as UROTSUKIDOJI: THE
LEGEND OF THE OVERFIEND.
DaViD acquires video disc rights to approximately 100 feature films each
year, and historically has released five to six new titles per month in the
LaserDisc format only. In March, 1997, DaViD began the transition to release of
titles on DVD. Release of titles on LaserDisc, and revenues associated with
those releases, have declined. DaViD intends to release most of its titles on
the DVD format in the future. As DVD hardware penetration grows, DaViD expects
to release up to 20 titles per month.
JACKET PRINTING
DaViD maintains an in-house art department which designs and produces the
electronic art necessary to print LaserDisc jackets and DVD jewel case inserts.
Jewel case inserts are printed by the replication company, while jackets for
LaserDiscs are printed by third-party printers and shipped to the replication
company for disc insertion.
DISC REPLICATION
DaViD contracts out the replication for LaserDisc and Digital Versatile Disc
to third-party manufacturers, including Pioneer Video Manufacturing, Inc., a
wholly-owned subsidiary of Japan-based Pioneer Electronics. The replication
companies receive masters from DaViD in the form of D-2 master tapes (LaserDisc)
or digital "one- off" discs (DVD). Glass masters and stampers are created from
the D-2 or one-off masters. Disc assembly (insertion into a jacket or jewel
case) is handled by the replication company.
DISTRIBUTION
DaViD currently distributes its titles in the 8" and 12" LaserDisc and DVD
formats.........................................................................
DaViD
began to distribute its titles in the 5 1/4" VideoCD format in February, 1997.
DaViD currently releases five to six feature-length motion picture titles per
month in the 12" LaserDisc format. DaViD intends to release eight to ten
feature-length motion picture titles per month in the DVD format in the first
quarter of 1998, ten to fifteen titles per month in the DVD format in the second
and third quarters of 1998, and up to 20 titles per month beginning in the
fourth quarter of 1998.
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INROADS
Inroads is a leading, vertically-integrated CD-ROM software publishing
company. The Company owns seventy percent (70%) of Inroads; thirty percent (30%)
of Inroads is owned by Quarto Holdings, Inc. ("Quarto"), a subsidiary of the
Quarto Group, Inc., the largest co-edition book publisher in the world. Quarto
also owns an adjustable Warrant to purchase up to 400,000 shares of the Company,
at an exercise price of $6.00 per share. Assuming completion of this Offering
and the Fifth Dimension Assets Acquisition, Quarto's warrant will be adjusted to
entitle Quarto to purchase up to 592,531 shares of the Company's restricted
common stock for $4.05 per share. See "RISK FACTORS--Quarto Warrant."
CD-ROM DEVELOPMENT
Inroads' in-house developed titles are produced, designed, and developed
directly by the Inroads' twelve-person staff. Inroads' licensed titles
(developed outside of the Company's offices) are localized, packaged, and, if
necessary, enhanced with new graphics or interface design/operating elements by
Inroads. Inroads' staff consists of producers, writers, software engineers,
artists, and management personnel. All of Inroads' CD-ROM titles, whether
developed in-house or licensed, contain video, still photography, audio,
original music, and text. These elements are combined with custom-designed
interfaces and computer code to deliver high-quality, easy-to-use, original
CD-ROM titles. Utilizing state-of-the-art technology, Inroads has developed and
released nine titles since its inception in June, 1994: (1) MULTIMEDIA DOGS: THE
COMPLETE INTERACTIVE GUIDE TO DOGS; (2) MULTIMEDIA DOGS VERSION 2.0; (3)
MULTIMEDIA CATS: THE COMPLETE INTERACTIVE GUIDE TO CATS; (4) MULTIMEDIA EXOTIC
PETS: HORSES, BIRDS, AQUATICS & POCKET PETS; (5) MULTIMEDIA BUGS: THE COMPLETE
INTERACTIVE GUIDE TO INSECTS; (6) MULTIMEDIA GUNS: THE ENTHUSIAST'S GUIDE TO
FIREARMS; (7) MULTIMEDIA HORSES: THE COMPLETE INTERACTIVE GUIDE TO HORSES; (8)
CIGAR COMPANION INTERACTIVE; and, (9) IN FOCUS, THE GUIDE TO BETTER PHOTOGRAPHY.
Other titles are under development. In addition, Inroads is developing a line of
children's "MY FIRST" which will be based on MULTIMEDIA DOGS, MULTIMEDIA CATS,
MULTIMEDIA HORSES, AND MULTIMEDIA EXOTIC PETS. Inroads releases one to two
CD-ROM titles per quarter.
CD-ROM CONTENT LICENSING AND CREATION
Inroads licenses most of the still photography contained in its titles from
third party photographers and stock photography companies. Most of the video
contained in Inroads' titles is shot with Inroads' equipment and by Inroads'
personnel. All text is either licensed from Quarto's library of books or written
by Inroads' in-house staff. All voices (narrative) and music used in Inroads'
titles are developed and owned by Inroads. Royalty arrangements for licensed
video and photography are negotiated on a title by title basis and range from 2%
to 5% of collected wholesale dollars.
CD-ROM TITLE LICENSING
Inroads' strong distribution network and expertise in product packaging
provides a framework for numerous opportunities to acquire and/or license
existing software products developed and produced by other companies, at a
fraction of the cost of developing titles in-house. In September 1996, the
Company completed agreements with Quarto whereby Quarto acquired 30 percent of
Inroads for $1,250,000 in cash and digital material valued by the Company at
$-0-, and valued at $525,000 by Quarto. The Quarto agreement grants the Company
the right to commercially exploit Quarto titles. Inroads has completed and
released two Quarto-based titles to date: CIGAR COMPANION INTERACTIVE, based on
the best-selling Quarto title THE COMPLETE CIGAR COMPANION, and IN FOCUS, THE
GUIDE TO BETTER PHOTOGRAPHY, based on best-selling Quarto books by Michael
Freeman.
CD-ROM MASTERING
CD-ROM titles are programmed, designed, developed, and tested by Inroads.
Once an optical disc master ("Gold Master") has been approved for release, the
Gold Master is then submitted to a replication company for manufacture. Box and
jewel case art is developed simultaneously with the development of the software,
and submitted for printing approximately three to four weeks prior to disc
replication.
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CD-ROM JEWEL CASE INSERT AND BOX DESIGN AND PRINTING
New Frontier Media, Inc. maintains an in-house art department which designs
and produces the electronic art necessary to print boxes and jewel case inserts.
Jewel case inserts are printed by the replication company, while boxes are
printed by third-party printers and shipped to the replication company for jewel
case insertion.
CD-ROM DISC REPLICATION
Inroads contracts out all CD-ROM replication to third-party manufacturers,
including Pioneer Video Manufacturing, Inc., a wholly-owned subsidiary of
Japan-based Pioneer Electronics. The replication companies receive masters from
Inroads in the form of a digital disc "one-off" master. Glass masters and
stampers are then created from the "one-off" master. CD-ROM replication,
jewel-case insert printing and insertion, and jewel-case boxing are all handled
in-house by the replication company. Inroads receives finished CD-ROM goods from
its manufacturers in boxes containing 200 units each.
CD-ROM SOFTWARE DISTRIBUTION
In 1995, Inroads entered into an exclusive software distribution agreement
with Broderbund Software, Inc. ("Broderbund"), a publicly-traded company with
revenues exceeding $140 million annually. Broderbund is considered one of the
premier CD-ROM software publishers in the industry. As an affiliated label of
Broderbund, a small portion of Inroads' products are sold directly by
Broderbund's seventeen-person direct sales force, and marketed by Broderbund's
marketing staff. Under the terms of Inroads' contract with Broderbund, a minimum
of 76% of all collected wholesale revenue is allocated to Inroads, and 24% to
Broderbund. Unlike many affiliated label contracts, which base payments on
collected accounts receivable, Broderbund pays Inroads at the end of each
calendar month based on units shipped the previous month. Inroads is responsible
for all costs associated with software development, package design and printing,
disc replication, and marketing.
RALSTON PURINA PROJECT.
On August 14, 1996, Inroads entered into a Promotion Agreement and a License
Agreement with the Ralston Purina Company, St. Louis, Missouri ("Purina"). Under
the terms of the License Agreement, Inroads granted Purina a non-exclusive,
worldwide, corporate license to copy and use specified content contained on and
in two of Inroads' CD-ROM titles: MULTIMEDIA DOGS, and MULTIMEDIA CATS. Purina
may, under the License Agreement, use the MULTIMEDIA DOGS and/or MULTIMEDIA CATS
content to develop, publish, advertise and promote one or more Internet web
sites, all within the "purina.com" Internet domain, and in the development,
publication, advertisement and promotion of private-label versions of Inroads
CD-ROM titles to be made available by Purina to the general public. The License
Agreement runs from August 14, 1996 through December 31, 1999.
Under the terms of the Promotion Agreement, Inroads has agreed to develop
and provide Purina a version of Inroads' CD-ROM title MULTIMEDIA DOGS,
customized to include Purina's names, logos, brand names, trademarks, designs,
commercials, videos and other information requested by Purina, and to provide
consulting and programming services to Purina, and produce customized CD-ROMs
and CD-ROM packages. Purina has agreed, among other things, to develop and
implement a Promotion Test whereby the customized Inroads MULTIMEDIA DOGS
CD-ROMs shall be offered to the general consuming public nationwide through
various scheduled Purina pet products Brand or Group promotional venues during
the period July 1, 1996 through December 31, 1997, including over 50 million
offers via Sunday free-standing inserts. Purina has guaranteed that a minimum of
ten thousand (10,000) customized MULTIMEDIA DOGS CD-ROMs will be redeemed during
this promotion. Inroads has also granted Ralston Purina an exclusive option to
utilize MULTIMEDIA CATS as a private label promotion.
The Promotion Agreement further provides that the customized MULTIMEDIA DOGS
CD-ROMs will be offered to consumers for $9.95 per CD-ROM, plus shipping and
handling. The consumer will be directed
42
<PAGE>
to send the $9.95 to Inroads, of which $1.00 will be rebated back to Purina.
Inroads estimates that the Company will net approximately $7.00 per unit sold
under this project. Inroads will provide the fulfillment supplier for the
Promotion Test. The Promotion Agreement runs from July 1, 1996 through December
31, 1997. Through September 30, 1997, the Company had realized revenues of
$118,900 from the Ralston Purina Project.
OTHER PROJECTS.
In addition to the "MY FIRST" SERIES and RINGLING BROS./BARNUM & BAILEY
projects currently under development and referenced above, Inroads is also in
various stages of negotiation on the following projects:
INTERNATIONAL LICENSING. MULTIMEDIA HORSES has already been signed by three
foreign affiliates. Inroads has taken a booth at Milia (Cannes, France), the
largest multimedia show in the world, in February, 1998. At Milia, Inroads
intends to showcase prototypes of its other new releases.
ADVERTISING. Inroads has taken full-page, four-color ads in three major
magazines to sell its CD-ROM products direct via a toll-free number, at full
retail. The ads run for one year (12 issues) and are paid for through a barter
arrangement which provides a rebate to the publisher on each unit sold. The
magazines are SHOOTING TIMES and HANDGUNNING (MULTIMEDIA GUNS), DOG WORLD
(MULTIMEDIA DOGS), and EQUUS (MULTIMEDIA HORSES). Inroads' most recent titles
are marketed to hobbyists and enthusiasts. Inroads intends to advertise in
specialty catalogues and magazines targeted at these potential customers.
FUZZY ENTERTAINMENT, INC. D/B/A IN-SIGHT EDITIONS ("IN-SIGHT")
In-Sight is a niche publisher and distributor of fine-art and decorative art
posters, which are priced in the low to moderate price range. In addition,
In-Sight merchandises and licenses its images for other retail and commercial
uses and purposes. Based in Marina Del Rey, California, In-Sight employs two
full-time employees in the design and production areas, and one employee in
shipping/warehousing. All accounting, inventory control, and accounts
receivable/payable functions are managed at the Company's Boulder, Colorado
office.
FINE ART AND DECORATIVE ART POSTER DESIGN AND PRE-PRESS
In-Sight begins the poster publishing design process by licensing existing
original art, or commissioning an artist to create a new design upon which a
poster concept is ultimately based. Poster design concepts are selected based on
a combination of aesthetic appeal, commercial potential, and the ability of
In-Sight's contracted printer to execute the final design. The existing or
commissioned art is ultimately modified several times through a series of
carefully art-directed element changes. All art direction is overseen by In-
Sight.
LIMITED EDITIONS
For each poster that is developed and released by In-Sight, a special,
limited-edition version is designed and printed. Limited editions are printed on
100 pound stock (far heavier paper than standard poster paper), and are
hand-signed and numbered in editions of no more than 1,000. Although the
incremental cost to create a limited edition is approximately $.25 to $.50 per
unit, the wholesale price for each limited edition poster is two to three times
the standard poster price.
FINE ART AND DECORATIVE ART PRINTING
In-Sight sources its printing from several high-end U.S. printing companies,
including Gore Graphics.
FINE ART AND DECORATIVE ART DISTRIBUTION
In-Sight distributes its posters directly from its facility in Marina Del
Rey, California to all major U.S. retail accounts, including certain upscale
framing companies.
43
<PAGE>
SALES, MARKETING AND DISTRIBUTION
DOMESTIC SALES, MARKETING & DISTRIBUTION
All Video Disc sales are handled directly by DaVid. Inroads handles most
CD-ROM product sales; however, a small percentage of Inroads' CD-ROM product
sales are handled directly through Novato, California-based Broderbund Software,
Inc., as part of Inroads' affiliated label program agreement with Broderbund.
All major decorative art retailers (such as Deck the Walls, Prints Plus, and
Wal-Mart) are sold direct by In-Sight's in-house sales staff.
PRICING
The Company's subsidiaries price their products competitively. LaserDiscs
sell for a weighted average price of $30.50 per unit, which translates to a
"retail street price" of $50.00 to $60.00 per unit. CD-ROM products sell for a
weighted average price of $14.00 per unit, which translates to a "retail street
price" of $19.95 per unit. Fine art and decorative art posters sell for a
weighted average price of $6.00 to $8.00 per unit, which translates to a retail
unframed street price of $10.95 to $14.95 per unit. Hand-signed and individually
numbered limited editions sell for a weighted average of $20.00 per unit, and
carry a suggested retail price of $35.00 to $40.00. It is anticipated that DVD
titles will sell for a weighted average price of $10.00 per unit, which
translates to a "retail street price" of $19.95.
PRIVATE LABEL/PREMIUM DEALS
Inroads has been successful in creating and securing distribution for
private label versions of its consumer CD-ROM products for a number of large
corporate customers, including Time Warner New Media, Ralston Purina and The
Wisconsin Humane Society. Under the terms of the private-label agreement with
Purina, Inroads will receive approximately $7.00 per unit from each CD-ROM unit
sold through Purina's advertising and specially-marked dog and cat food
packaging. A total of over 50 million impressions has been guaranteed by Purina
in the form of special newspaper inserts, specially-marked packages of Purina
products, and bounce-back coupons.
INTERNATIONAL SALES, MARKETING & DISTRIBUTION
Approximately 10% of all Video Disc sales, 25% of all CD-ROM sales, and 10%
of all fine art and decorative art sales are made in markets other than the
United States.
CD-ROM INTERNATIONAL SALES, MARKETING AND DISTRIBUTION. Inroads' CD-ROM
titles are sold internationally primarily through re-publishing agreements with
a variety of foreign software publishing companies, such as Markt &
Technik/Viacom (Germany), PersonalSoft/Softkey (France), Jackson Libri (Italy),
and Multimedia Industries, Ltd. (Japan). In most cases, Inroads' international
re-publishing arrangements provide for a $4.00 per unit royalty payable to
Inroads. In a typical re-publishing transaction, all translation work related to
the re-published title is performed by the local re-publisher, and all
engineering related to the re-published title is performed by Inroads. Advances
against royalties received from re-publishers range from $5,000 to $7,500 per
title. To a much lesser extent, Inroads sells finished CD-ROM products to
English-speaking countries other than the United States, such as Australia, New
Zealand, South Africa, and the Caribbean Islands.
VIDEO DISC INTERNATIONAL SALES, MARKETING AND DISTRIBUTION. DaViD's
12"LaserDiscs and 5 1/4" Digital Versatile Discs are sold internationally as
finished goods directly by DaViD.
FINE ART AND DECORATIVE ART POSTER SALES, MARKETING AND
DISTRIBUTION. In-Sight's fine art and decorative art posters are sold
internationally either through direct sales of finished goods, or through
licensing arrangements with re-publishers in each foreign market.
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<PAGE>
CUSTOMERS
The Company's subsidiaries sell their CD-ROMs, Video Discs, fine art and
decorative art posters, and other products (the "Products") to approximately
1,000 wholesale and retail accounts, with no final retail account representing
more than 10% of total Company sales. The Products are then resold or rented on
a worldwide basis to consumers of the CD-ROM software, Video Discs, and fine-art
and decorative art posters. The Company's target consumer ranges in age from
pre-school to adult.
MARKETS FOR PRODUCTS
LASERDISC MARKETS
According to the LaserDisc Association, as of January, 1997, approximately
2.2 million U.S. households owned a LaserDisc player. The worldwide LaserDisc
household figure is estimated to be 12.0 million with the heaviest
concentrations in Japan, Taiwan, Hong Kong, Singapore, Malaysia and Indonesia.
The LaserDisc Association estimates that the installed base of LaserDisc
households will grow domestically at a rate of 25% per year for the next three
years and then see little or no growth as the next Video Disc technology takes
hold (see Digital Versatile Disc Markets). LaserDisc is primarily a sell-through
business (not much rental activity) and caters to upper-income households with
home-theater installations. LaserDisc employs an analog video technology along
with a digital sound technology to deliver twice the resolution of ordinary home
video cassette tape. LaserDisc's popularity has grown over the past ten years
among movie enthusiasts for its "instant access" capabilities (similar to audio
CD) and its durability as a movie playback medium. LaserDisc's disadvantages
include its size (12 inches in diameter), high retail price, and the limited
amount of information that can be placed on a single side of a disc (60 minutes
maximum).
For the calendar year ending 1996, the LaserDisc Association reported that
the average U.S. LaserDisc household purchased twelve LaserDiscs. The LaserDisc
Association further estimated that between five percent (5%) and ten percent
(10%) of all LaserDisc purchases had strong sexual content and themes.
DIGITAL VERSATILE DISC MARKETS
The market for Digital Versatile Disc ("DVD") is expected to grow
dramatically beginning in the fourth quarter of 1997. Up until September, 1995,
two competing technologies existed for DVD video playback: Time Warner/Toshiba's
technology and SONY/Philips' technology. In September, 1995 these companies
agreed upon a unified format for DVD. In October, 1996 a unified, single
standard was finalized for the mastering (with copy protection) and replication
of DVDs. It is widely believed that this unified DVD format will make serious
inroads into the market shares currently held by LaserDisc and, to a much
greater extent, the Video Cassette Recorder ("VCR"). DVD has several major
advantages over competing home video delivery technologies: 1) A single 5 1/4"
DVD can hold up to 135 minutes per side of high resolution digital full-motion
video and audio. DVD discs contain information on both sides; 2) Instant access
is available to a favorite scene; 3) DVD contains significantly higher image and
audio quality than LaserDisc and Video Tape; 4) Multiple language tracks can be
incorporated on one disc; 5) Since DVD is 100% digital (video and sound), the
cost of replication will be comparable to CD-ROM or audio CD at under $1.00 per
unit in small press runs; and, 6) A relatively low replication cost will
translate to a retail price for a motion picture of under $20.00, giving this
medium tremendous mass-market potential.
Experts at Toshiba estimate that the market for DVD software could exceed
$20 billion by the year 2005. Domestic hardware sales estimates made by
Panasonic range from 800,000 to 1 million DVD households by the calendar year
ending 1997, and 5 million to 10 million domestic DVD households by the calendar
year ending 1999.
The earliest hardware segment to adapt to DVD will most likely be the
computer hardware industry. The next evolution of the CD-ROM drive, now standard
equipment for all multimedia computer systems, will be the DVD-ROM. Similar to a
CD-ROM in most respects, the DVD-ROM will be capable of holding
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<PAGE>
more than ten times more information than a CD-ROM. Management believes that the
market for feature-film software on DVD will initially consist of computer users
with DVD-ROM drives. Dataquest estimates that nearly five million multimedia
computer households will be equipped with a DVD-ROM drive by the year 2000.
CD-ROM MARKET
The Software Publisher's Association estimates that the number of CD-ROM
households is currently 23 million domestic and 35 million worldwide. By the end
of calendar 1997, the Software Publisher's Association estimates that these
numbers will grow to 30 million domestic and 45 million worldwide. This growth
will be primarily fueled by the availability of multimedia computer systems
which are shipped with bundled interactive encyclopedias on CD-ROM for the same
price as a complete bound set of encyclopedias (approximately $1,500). In
addition, 60% of all new computers purchased are being shipped with built-in
CD-ROM drives. Over 10,000 CD-ROM titles currently exist, ranging from pure
education to pure entertainment to hybrids, or "edutainment." It is estimated
that only 1,000 of these titles are of a quality level acceptable to the largest
retailers. Of these 1,000 high-quality titles, fewer than 50 cover reference
subjects such as those CD-ROMs produced by Inroads.
There are three types of software available on the Home Software market
segment: Games, Home Education and Productivity. Games clearly dominate software
sales, with approximately 60% of the market. Home education titles, such as
those published by Inroads Interactive, represent 11% of the total market for
software. According to the Software Publisher's Association, the Home Education
market segment generated $958 million of the $9 billion in retail software sales
in 1996.
The Company's products compete with similar titles from Microsoft, Inc.
(MICROSOFT DOGS), Macmillian Digital, a Viacom company (BEST OF BREED), and
Dorling Kindersley (ULTIMATE CAT). In head-to-head comparisons of the products
to Inroads' MULTIMEDIA DOGS: THE COMPLETE INTERACTIVE GUIDE TO DOGS and
MULTIMEDIA CATS: THE COMPLETE INTERACTIVE GUIDE TO CATS, Inroads' titles have
consistently been ranked higher by software magazines than those titles
developed by competitors. This fact, coupled with Inroads' average development
budget of less than $70,000 per title, as compared to an average of $1 million
per title for the competition, explains why Inroads is able to sell its CD-ROM
products profitably at far lower prices than its competitors.
FINE ART AND DECORATIVE ART PUBLISHING MARKETS
The fine art and decorative art market is comprised of several segments:
sports celebrity and Hollywood celebrity posters; novelty posters; museum
posters; and fine art and decorative posters. The fine art and decorative
posters segment, which In-Sight currently focuses on, is "hit driven" and highly
fragmented, with no single company dominating the market segment. Products range
from the very low end in terms of price and quality, to the expensive limited
edition poster market. Management's philosophy is to lead the industry in terms
of subject matter, design, execution, printing quality, and value. Management
has already demonstrated its ability to set trends in the industry with the
success of its first six releases.
EMPLOYEES AND OFFICE SPACE
As of the date of this Prospectus, the Company had 10 full-time and three
part-time employees. Four full-time employees are employed in executive
positions; three part-time employees are employed in administrative and clerical
positions; the remainder of the Company's employees are employed in software
development and sales. The Company's employees are not members of a union, and
the Company has never suffered a work stoppage. New Frontier leases
approximately 3,500 square feet of office space at 1050 Walnut Street, Suite
301, Boulder, Colorado 80302. The Company's lease on this office space runs
through January, 1998, at a rate of approximately $3,100 per month. The Company
also sub-leases approximately 6,000 square feet of space in Marina Del Rey,
California. Assuming completion of the Fifth Dimension assets acquisition, the
Company intends to establish a Call Center in the Denver, Colorado
46
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metropolitan area within nine months of the acquisition. Management anticipates
the need to lease up to 4,000 additional square feet to house up to 30 Call
Center employees.
LEGAL PROCEEDINGS
SANDS BROTHERS
On November 11, 1996, the Company entered into a financial consulting
agreement (the "Sands Agreement"), with Sands Brothers & Co., Ltd. ("Sands
Brothers"), an investment banking concern headquartered in New York City. Under
the terms of the two-year Sands Agreement, Sands Brothers agreed to provide
financial advisory services to the Company. The Sands Agreement contains a
provision granting Sands Brothers the exclusive right to underwrite or place any
private or public financing undertaken by the Company during the term of the
Sands Agreement.
On May 20, 1997, the Company terminated the Sands Agreement. On September
26, 1997, counsel for Sands Brothers sent a letter to Mark Kreloff, the
Company's president, alleging breach of the Sands Agreement by the Company, and
demanding that the Company comply with the terms of the Sands Agreement.
On October 3, 1997, the Company filed a Complaint in District Court in
Boulder, Colorado (Case No. 97 CV 1428) against Sands Brothers, alleging breach
of the terms of the Sands Agreement by Sands Brothers. The Company also alleged
fraud in the inducement, and is seeking return of its initial payment of $25,000
to Sands Brothers and recission of the Sands Agreement. As of the date of this
prospectus, Sands Brothers has not filed an Answer to the Company's Complaint.
The Company has no reason to believe that Sands Brothers will not file an
Answer.
QUARTO
On October 7, 1997, Quarto's counsel notified the Company of Quarto's claim
that the Company had breached the Quarto Stockholder Agreement dated September
20, 1996. Counsel for Quarto demanded recission of the Purchase Agreement
between the Company and Quarto dated September 20, 1996, and a return of all
amounts Quarto paid for its 30 percent interest in Inroads. Counsel for Quarto
generally alleged fraud in the inducement, misrepresentation, violation of
federal and state securities laws, and failure of consideration as basis for its
demand for recission and return of all amounts paid. The Company has obtained an
opinion from J. John Combs III, its litigation counsel, stating that there is no
basis for recission of the Quarto agreements under the facts or under Colorado
law, that any breach alleged by Quarto is not "material," and that Quarto has
suffered no damages as the result of any alleged breach of the Quarto Purchase
Agreement by the Company.
On October 16, 1997, Quarto's counsel demanded that the Board of Directors
of Inroads take all actions necessary to restore certain Inroads' certificates
of deposits that had been encumbered by or for the benefit of the Company, and
to obtain repayment of any funds loaned to the Company for the benefit of the
Company. Counsel for Quarto also demanded that the Board of Directors of Inroads
institute an action for misappropriation of assets, mismanagement, and breach of
fiduciary duties against those members of Inroads' management who participated
in the acts that Quarto's counsel alleges constituted a misappropriation of
Inroads' assets. Counsel for Quarto has notified the Board of Directors of
Inroads of Quarto's intent to institute a derivative action on behalf of Inroads
against certain managers and directors of Inroads who allegedly participated in
the claimed misappropriation of Inroads' assets, should Inroads' Board of
Directors fail or refuse to initiate such an action on its own.
On October 23, 1997, Quarto filed an action in Federal District Court,
Denver, Colorado against the Company and Inroads.
The Company is vigorously contesting the foregoing claims. This Offering,
and the Company's future operations, could be negatively affected if either
Sands Brothers or Quarto, or both, were successful in their claims against the
Company.
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MANAGEMENT
DIRECTORS AND OFFICERS
The following table sets forth the name, age and position with the Company
of each officer and director of the Company as of the date of this Prospectus.
<TABLE>
<CAPTION>
NAME AGE POSITION
- -------------------------------- --- -------------------------------------------------------------------------
<S> <C> <C>
Mark H. Kreloff................. 35 Chairman of the Board, President and Chief Executive Officer, New
Frontier Media, Inc.; Director, Inroads; Vice President and Director,
DaViD; Director, In-Sight; President and Director, CSB.
Andrew V. Brandt................ 28 Senior Vice President, New Frontier; President and Director, Inroads.
Michael Weiner.................. 55 Executive Vice President, Secretary-Treasurer and Director, New Frontier
Media, Inc.; Director, Inroads; President, Secretary-Treasurer and
Director, DaViD; President, Secretary-Treasurer and Director, In-Sight;
Vice President, Secretary-Treasurer and Director, CSB.
Daniel Bender................... 51 Senior Vice President and Director, CSB.
Scott D. Wussow................. 41 Chief Financial Officer, New Frontier Media, Inc.
Clive Ng........................ 36 Director, New Frontier Media, Inc.
Koung Y. Wong................... 45 Director, New Frontier Media, Inc.
</TABLE>
MARK H. KRELOFF. Mr. Kreloff has held the title Chairman and Chief
Executive Officer of New Frontier Media, Inc. since the Company's inception in
September, 1995. Mr. Kreloff has been actively involved in the cable television,
entertainment and computer software industries since 1977. Prior to founding the
Company and during the four years immediately preceding his employment with the
Company, he was the President and Chairman of the Board for LEI Partners, L.P.,
a LaserDisc publishing company; Elmfield IV, Inc., an entertainment production
and distribution company, and California Software Partners, L.P., a computer
software development and publishing company. Previously, Mr. Kreloff held the
title Vice President, Mergers and Acquisitions, with Kidder Peabody & Co. and
Drexel Burnham Lambert. From 1983 through 1986, Mr. Kreloff was employed by
Butcher & Singer, Inc., a Philadelphia-based investment bank, in the Cable
Television and Broadcast Media Group. From 1977 through 1983, Mr. Kreloff held a
variety of positions, including Marketing Director, in his family's cable
television system based in New Jersey. Mr. Kreloff is an honors graduate of
Syracuse University and holds B.S. degrees in Finance and Public Communications.
ANDREW V. BRANDT. Mr. Brandt has held the title of President of Boulder
Interactive Group, Inc. since Inroads' inception in June, 1994. Mr. Brandt has
extensive experience in software company management, 3-D computer graphics, user
interface design, and software engineering. Prior to joining New Frontier Media,
Inc., Mr. Brandt spent two years developing numerous 3-D graphics libraries and
graphical user interfaces for a variety of platforms. Mr. Brandt developed a
system for medical applications utilizing real-time, three-dimensional
ultrasound acquisition and a video see-through head-mounted display. He also
helped prototype the first digital video interactive system and led the port of
Pixar's RenderMan to a supercomputer. Mr. Brandt graduated Magna Cum Laude from
the University of California, San Diego with a B.S. in Computer Engineering and
holds an M.S. in Computer Science from the University of North Carolina at
Chapel Hill.
MICHAEL WEINER. Mr. Weiner has been the Executive Vice President and a
director of New Frontier Media, Inc. since the Company's inception. Prior to
founding the Company, Mr. Weiner was actively involved as a principal and
director in a variety of publishing businesses, including a fine art poster
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company. Mr. Weiner has been actively involved in creative businesses for the
past 25 years. His background includes 15 years in real estate development and
syndication as well as ownership in various publishing companies. Mr. Weiner is
a partner in the investment firm Maxim Financial Corporation, a private
portfolio management company based in Boulder, Colorado. From June, 1995 to the
present, Mr. Weiner has been Executive Vice President of the Company. For the 15
years prior to June, 1995, Mr. Weiner was self-employed as a real estate and
business consultant.
DANIEL BENDER. Mr. Bender will become President and a director of Colorado
Satellite Broadcasting, Inc. upon completion of the Fifth Dimension assets
acquisition. Mr. Bender has been actively involved in the satellite broadcasting
industry for the past eleven years. In 1989, Mr. Bender founded Satellite Source
Programming, Inc. ("SSP"). SSP was responsible for the sale and activation of 5
million C-band subscriber accounts through on-line service marketing. In 1993,
Mr. Bender launched T.V. Erotica, an adult satellite subscription and
pay-per-view service. Mr. Bender negotiated all key contracts with AT&T, General
Instrument, and Denver Uplink as part of his responsibilities as CEO of T.V.
Erotica. In 1995, T.V. Erotica's name was changed to XXXotica, and the service
was expanded to several European markets. In 1996, Mr. Bender merged XXXotica
with XTC Group to create Fifth Dimension, the largest C-band satellite adult
network in the world.
SCOTT D. WUSSOW. Mr. Wussow has eighteen years of accounting and finance
experience, and is a Certified Public Accountant. He joined the Company as Chief
Financial Officer on April 1, 1996. For the past five years before joining the
Company, Mr. Wussow was Chief Financial Officer for Hart Bornhoft Group, an
investment firm. He was responsible for financial reporting, systems
development, operations, compliance, and risk management. Previous to that, Mr.
Wussow was Controller at Neodata Services, a publisher services company, and was
Accounting Manager for a division of MCI Communications. While at MCI, Mr.
Wussow was department head for general accounting and special projects for the
Western Division start-up. Among his responsibilities was fixed asset accounting
for the network system and the establishment of the customer service call
center. Mr. Wussow graduated Magna Cum Laude from the University of Wisconsin at
Eau Claire with a B.A. degree in Accounting.
CLIVE C.N. NG. Mr. Ng is Deputy Chairman of Pacific Media PLC, a
publicly-listed UK company. Pacific Media PLC owns the United Artists Theaters
Asia with United Artists Theaters of the US and with TVB of Hongkong, the
Chinese Channel in Europe. Mr. Ng co-founded UIH Asia Holdings, a regional
partnership to develop Asian cable television markets, as well as Spectradyne
Asia, then the leader in the TV settop box business for hotels. In 1995 he led
Pacific Media's purchase of a key share in one of Hongkong's leading ISP's,
Hongkong Supernet. Mr. Ng earned a Bachelor of Arts degree from Syracuse
University's School of Management in 1983, and earned a Master's Degree in
Business Administration from New York University in 1985.
KOUNG Y. WONG. Mr. Wong was born in Canton, China in 1952 and immigrated to
the United States in 1969 with his family. He earned a Bachelor of Arts degree
from City College of San Francisco in 1975, and studied Architecture at the
University of California at Berkeley for one year. In 1976, Mr. Wong opened a
stereo store, Wong's Hi-Fi, in San Francisco. For the last 21 years, Mr. Wong
has been the president and sole shareholder of Wong's Audio-Visual, Inc. a
leading commerce electronics hardware and software distribution company based in
South San Francisco, California. Wong's Audio-Visual, Inc. includes a 20,000
square-foot corporate headquarters and distribution center and an 8,500
square-foot retail superstore in San Francisco.
No director or executive officer of the Company is related to any other
director or executive officer. None of the Company's officers or directors hold
any directorships in any other public company. There are currently two outside
directors on the Company's Board of Directors. The Company's compensation
committee is comprised of Messrs. Kreloff, Weiner, and Wong. The Company's audit
committee is comprised of Messrs. Kreloff, Weiner, and Wussow. Fifth Dimension
will be entitled to name one nominee to the Company's Board of Directors, upon
completion of the Fifth Dimension Assets Acquisition.
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DIRECTOR COMPENSATION
None of the Company's directors received any compensation during the most
recent fiscal year for serving in his position as a director. No plans have been
adopted to compensate directors in the future; however, it is likely that during
fiscal 1998 the Board of Directors will adopt an employee stock option plan
which includes provision for stock options to be issued to directors.
EXECUTIVE COMPENSATION
The following table sets forth the annual compensation paid to executive
officers of the Company for the fiscal year ended March 31, 1997. No executive
officer received annual compensation in excess of $100,000.
<TABLE>
<CAPTION>
NAME AND OTHER ANNUAL RESTRICTED STOCK
PRINCIPAL POSITION YEAR SALARY($) BONUS($) COMPENSATION AWARDS OPTIONS/ SARS
- ------------------------- --------- ----------- ----------- ------------------- ------------------- ---------------
<S> <C> <C> <C> <C> <C> <C>
Mark H. Kreloff, CEO,
COO, Pres., and
Chairman............... 1997 0 15,000 0 0 0
Michael Weiner, Sr. V.P.,
Sec.-Treas. and
Director............... 1997 0 15,828 0 0
Andrew V. Brandt,
President, BIG......... 1997 75,695 3,125 0 0 0
Scott D. Wussow, CFO..... 1997 46,333 2,083 0 0 0
<CAPTION>
NAME AND ALL OTHER
PRINCIPAL POSITION LTIP PAYOUTS COMPENSATION
- ------------------------- ------------- ---------------
<S> <C> <C>
Mark H. Kreloff, CEO,
COO, Pres., and
Chairman............... 0 36,028
Michael Weiner, Sr. V.P.,
Sec.-Treas. and
Director............... 0 0
Andrew V. Brandt,
President, BIG......... 0 5,053
Scott D. Wussow, CFO..... 0 0
</TABLE>
Management anticipates adopting bonus and stock option plans during fiscal
1998. The current annual salaries of the executive officers of the Company are:
Mark H. Kreloff, Chief Executive Officer, $0; Andrew Brandt, Senior Vice
President, $75,695; Michael Weiner, Executive Vice President, Secretary and
Treasurer, $0; Scott Wussow, Chief Financial Officer, $50,000. Mr. Bender, who
will become President of CSB upon completion of the Fifth Dimension assets
acquisition, will be paid an annual salary of $100,000.
Upon completion of the Fifth Dimension Assets Acquisitions, the Company
intends to pay Messrs. Kreloff and Weiner salaries of $100,000 each per year.
The Company's Board of Directors may, at its discretion, award discretionary
bonuses in the future. It is anticipated that an independent compensation
committee will be established during 1998. The compensation committee will
establish salaries, incentives and other forms of compensation for directors,
officers and other employees of the Company, and establish and administer the
Company's benefit plans and recommend policies relating to such plans. Upon
completion of the Fifth Dimension transaction, Fifth Dimension will be entitled
to have one nominee sit on the Company's Board of Directors.
EMPLOYMENT AGREEMENTS
The Company has an employment agreement with Mr. Brandt. Such agreement will
continue through December, 1999, unless earlier terminated for cause, and
provides for annual compensation of $75,695. Mr. Brandt also has agreed not to
compete with the Company or Inroads during his employment term and for a period
of 3 years thereafter; however, courts frequently find noncompetition clauses in
employment agreements to be unenforceable, or restrict the duration or
geographic scope of such agreements. Accordingly, there can be no assurance that
Mr. Brandt's agreement not to compete would be enforced by a court if
challenged.
LIMITS ON LIABILITY AND INDEMNIFICATION
The Company's Articles of Incorporation eliminate the personal liability of
its directors to the Company and its shareholders for monetary damages for
breach of the directors' fiduciary duties in certain circumstances. The Articles
of Incorporation further provide that the Company will indemnify its officers
50
<PAGE>
and directors to the fullest extent permitted by law. The Company believes that
such indemnification covers at least negligence and gross negligence on the part
of the indemnified parties. Insofar as indemnification for liabilities under the
Securities Act may be permitted to directors, officers, and controlling persons
of the Company pursuant to the foregoing provisions or otherwise, the Company
has been advised that in the opinion of the Securities and Exchange Commission
such indemnification is against public policy as expressed in the Securities Act
and is, therefore, unenforceable.
CERTAIN TRANSACTIONS
The Company purchased $65,000 of adult laserdisc format titles from Elmfield
IV, L.P. a related entity controlled by Mr. Kreloff, through the issuance of
preferred stock (see Notes 3 and 4 to the financial statements filed herewith).
During the year ended March 31, 1997 and 1996, Disc Replication International, a
distributor owned in part by Mark H. Kreloff, the Company's President and CEO,
withheld from sales of $2,236,143 and $1,592,856 replicating costs of $1,646,364
and $939,622 and management fees of $470,000 and $262,500, respectively, all
pursuant to the terms of a management agreement between the Company and Disc
Replication International. Included in accounts receivable at March 31, 1997 and
1996 were $141,585 and $222,276, respectively, from the related entity.
In June, 1995, the Company issued a three year note receivable in the amount
of $38,000 to Mr. Brandt, an officer of the Company. The note requires quarterly
interest only payments at a rate of 6.1 percent per annum. The principal is due
on August 31, 1998.
The Company leases certain equipment and office space from Elmfield IV,
L.P., an entity controlled by Mr. Kreloff, on a month to month basis. During the
years ended March 31, 1997 and 1996 the Company paid $116,549 and $98,212,
respectively, to this entity relating to these leases. Management believes the
terms of these leases are commensurate with terms that would be obtained from an
unrelated third party lessor.
Certain of the Company's principals, or entities that the principals own
and/or control, have made loans to the Company and/or its subsidiaries. These
loans, totalling $139,573 are unsecured demand notes bearing interest at 8.5%
per annum and due on demand anytime after December 31, 1996. See "FINANCIAL
STATEMENTS." In addition, the Company lent Mr. Brandt $38,000 on June 1, 1995.
This loan is a below-market 6.1% quarterly interest-only loan, with the
principal due on August 31, 1998. The loan to Mr. Brandt was an isolated
transaction. On June 15, 1997, the Company's Board of Directors adopted a policy
prohibiting related party and below-market loans by the Company at any time
after June 15, 1997. In the future, the Company will not enter into transactions
and loans on terms that are no less favorable to the Company than those that can
be obtained from unaffiliated third parties. Forgiveness of loans must be
approved by a majority of the Company's independent directors who do not have an
interest in the transactions and who have access, at the Company's expense, to
the Company's or independent counsel.
No current ongoing transactions were approved by a majority of the Company's
independent directors who do not have an interest in the transactions and who
had access, at the Company's expense, to the Company's or independent legal
counsel. Current ongoing and past transactions were approved by a majority of
disinterested, but not independent, directors.
51
<PAGE>
PRINCIPAL SHAREHOLDERS
The following table sets forth, as of the date of this Prospectus and as
adjusted to give effect to the sale of the 1,500,000 shares of Common Stock
offered by the Prospectus, the number and percentage of shares of outstanding
Common Stock owned by each person owning at least 5% of the Company's Common
Stock, each officer and director owning stock, and all officers and directors as
a group:
<TABLE>
<CAPTION>
SHARES BENEFICIALLY OWNED SHARES BENEFICIALLY OWNED
PRIOR TO THE OFFERING AFTER THE OFFERING(1)
NAME OF -------------------------- --------------------------
BENEFICIAL OWNER NUMBER PERCENT NUMBER PERCENT
- ------------------------------------------------------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Mark H. Kreloff(2)(3)....................................... 1,014,000 24.2% 1,014,000 17.8%
101 Pine Needle Road
Boulder, CO 80304
Michael Weiner(2)(3)........................................ 615,000 14.7 615,000 10.8
1002 Rose Hill
Boulder, CO 80302
Andrew V. Brandt(2)......................................... 279,500 6.7 279,500 4.9
2193 Sunshine Canyon
Boulder, CO 80302
Stephen P. Cherner.......................................... 475,000(4) 11.3 475,000(4) 8.3
165 Green Rock Drive
Boulder, CO 80302
------------ --- ------------ ---
Total..................................................... 2,383,500 57.1% 2,393,500 42.1%
------------ --- ------------ ---
------------ --- ------------ ---
</TABLE>
- --------------------------
(1) Excludes exercise of warrants and options, including the Underwriter's
Warrant, and assumes the Underwriter does not exercise its Overallotment
Option. Also excludes a minimum of 840,000 shares of Common Stock and a
warrant to purchase up to 400,000 shares of the Company's Common Stock, to
be issued to Fifth Dimension as part of the Fifth Dimension assets
acquisition.
(2) Officer of the Company or of Company subsidiary. See "MANAGEMENT."
(3) Director of the Company or of Company subsidiary. See "MANAGEMENT."
(4) 195,000 Common Shares owned by Stephen P. Cherner; 80,000 Common Shares
owned by Maxim Profit Sharing Plan; 200,000 Common Shares owned by Maxim
Corporation. Mr. Cherner is the owner of Maxim Corporation.
52
<PAGE>
DESCRIPTION OF SECURITIES
Prior to this Offering there were approximately 300 holders of record of the
Company's Common Stock. The Company is currently authorized to issue 50,000,000
shares of its Common Stock, par value $.0001 per share, and 5,000,000 shares of
its Preferred Stock, par value $.10 per share. As of the date of this
Prospectus, and prior to issuance of any shares of Common Stock to investors,
the Company has 4,207,511 shares of its Common Stock, and 0 shares of its
Preferred Stock, issued and outstanding. There are also warrants to purchase an
additional 755,666 shares of the Company's common stock issued and outstanding.
COMMON STOCK
Each holder of shares of Common Stock is entitled to one vote per share on
all matters to be voted on by shareholders. The holders of Common Stock are
entitled to receive dividends, if any, as may be declared from time to time by
the Board of Directors out of funds legally available therefor and, in the event
of liquidation, dissolution or winding-up of the Company, to share ratably in
all assets available for distribution, subject to the rights of the holders of
any Preferred Stock as described below.
Upon the liquidation, dissolution or winding up of the Company, the holders
of shares of Common Stock would be entitled to share PRO RATA in the
distribution of all of the Company's assets remaining available for distribution
after satisfaction of all its liabilities and the payment of the liquidation
preference of any outstanding Preferred Stock. The holders of Common Stock have
no preemptive or conversion rights. All shares of Common Stock outstanding
immediately following the Offering will be fully paid and are not subject to
further calls or assessments by the Company. There are no redemption or sinking
fund provisions applicable to the Common Stock.
PREFERRED STOCK
The Company's Articles of Incorporation, as amended, authorize the issuance
of up to 5,000,000 shares of Preferred Stock. The Board of Directors is
authorized, without further shareholder action, to issue such shares in one or
more series, and to fix the rights, preferences, privileges and restrictions
thereof, including dividend rates, conversion rights, voting rights, terms of
redemption, redemption prices, amounts payable upon liquidation and the number
of shares constituting any series or the designation of such series. If such
Preferred Stock is issued, it will rank senior to the Company's Common Stock in
respect of rights to receive dividends and to participate in distributions or
payments in the event of any liquidation, dissolution or winding up of the
Company. The issuance of Preferred Stock may have the effect of delaying,
deferring, discouraging or preventing a third party from acquiring a majority of
the outstanding voting stock of the Company or other change in control of the
Company without further action by the shareholders, and may adversely affect the
voting and other rights of the holders of the common Stock, including the loss
of voting control to others. The Board of Directors does not at present intend
to seek shareholder approval prior to issuing any such Preferred Stock, unless
required to do so by law.
SERIES A PREFERRED STOCK
On September 20, 1995, the Company's Board of Directors adopted a Statement
of Series Shares, defining a class of Preferred Stock to be issued as "Series
A." On September 20, 1995, the Company issued 10,000 shares of its Series A
Preferred Stock to Banco Financial, Inc., as payment in full of a promissory
note between DaViD and Banco Financial, Inc. The Series A Preferred shares were
convertible into 10,000 shares of the Company's common stock; on July 15, 1997,
Banco Financial, Inc. exercised its right to convert the Series A Preferred
shares into 10,000 shares of Common Stock.
SERIES B PREFERRED STOCK
On December 31, 1996, the Company's Board of Directors adopted a Statement
of Series Shares, defining a class of Preferred Stock to be issued as "Series
B." The Series B Preferred carries an 8% annual
53
<PAGE>
premium, payable annually, and is convertible into shares of the Company's
common stock pursuant to the terms of the Statement of Series Shares. There are
no shares of Series B Preferred stock issued and outstanding as of the date of
this Prospectus.
SHARES ELIGIBLE FOR FUTURE SALE
Upon completion of this offering, assuming the Underwriter does not exercise
its Overallotment Option, the Company will have 5,707,511 Common Shares, and 0
Preferred Shares, outstanding. The Company will also have warrants issued and
outstanding which, if exercised in full, would require the Company to issue an
additional 948,197 shares of its common stock, excluding the Underwriter's
Warrant and the warrant to be issued to Fifth Dimension. Completion of the Fifth
Dimension Assets Acquisition (840,000 shares of restricted Common Stock plus a
warrant to purchase 400,000 shares) and subsequent conversion of all warrants
issued and outstanding would result in the Company having 8,045,708 shares of
its Common Stock issued and outstanding, assuming the Underwriter does not
exercise its Overallotment Option. All of the shares issued upon exercise of
warrants or options will initially be "restricted" from sale and public
transfer.
In general, Rule 144 promulgated under the Securities Act provides that a
person (or persons whose shares are aggregated) who has beneficially owned
"restricted" shares for at least one year, including persons who may be deemed
affiliates of the Company, is entitled to sell within any three-month period a
number of shares of Common Stock that does not exceed the greater of one percent
(1%) of the then-outstanding shares of Common Stock of the Company, or the
average weekly trading volume of the Common Stock during the four calender weeks
preceding the date on which notice of the sale is filed with the Commission.
Sales under Rule 144 are subject to certain restrictions relating to manner of
sale, notice and the availability of current public information about the
Company. A person who is not an affiliate of the Company at any time during the
90 days preceding a sale, and who has beneficially owned shares for at least two
years, would be entitled to sell such shares immediately following the Offering
without regard to the volume limitations, manner of sale provisions or notice or
other requirements of Rule 144.
All of the Company's officers and directors have agreed to enter into
lock-up agreements with the Underwriter, precluding Rule 144 sales for a minimum
of 12 months from the date of this Prospectus.
LIMITATION OF LIABILITY; INDEMNIFICATION MATTERS AND DIRECTORS' AND OFFICERS'
INSURANCE
The Company's Bylaws require the Company, to the fullest extent permitted or
required by Colorado law, to (i) indemnify its directors against any and all
liabilities and (ii) advance any and all reasonable expenses, incurred in any
proceeding to which any such director is a party or in which such director is
deposed or called to testify as a witness because he or she is or was a director
of the Company. Generally, Colorado statutory law permits indemnification of a
director upon a determination that he or she acted in good faith and in a manner
he or she reasonabley believed to be in, or not opposed to, the best interests
of the corporation and, with respect to any criminal action or proceeding, had
no reasonable cause to believe his or her conduct was unlawful. The right to
indemnification granted in the Company's Bylaws is not exclusive of any other
rights to indemnification against liabilities or the advancement of expenses
which a director may be entitled to under any written agreement, Board
resolution, vote of stockholders, Colorado law or otherwise.
At present, the Company is not aware of any pending or threatened litigation
or proceeding involving a director, officer, employee or agent of the Company in
which indemnification would be required or permitted under the Company's Bylaws,
any indemnification agreement, or Colorado law.
TRANSFER AGENT AND WARRANT AGENT
The transfer agent for the Common Stock and the Warrant Agent for the
warrants is Corporate Stock Transfer, Inc., 370 Seventeenth Street, Suite 2350,
Denver, Colorado 80202, telephone (303) 595-3300.
54
<PAGE>
UNDERWRITING
Subject to the terms and conditions of the Underwriting Agreement among the
Company and the Underwriters named below (the "Underwriting Agreement"), the
Company has agreed to sell to each of the Underwriters named below, and each of
the Underwriters named below has severally agreed to purchase from the Company,
the respective number of shares of Common Stock set forth opposite its name
below:
<TABLE>
<CAPTION>
UNDERWRITER NUMBER OF SHARES
- --------------------------------------------------------------------------- -----------------
<S> <C>
Centex Securities, Inc.....................................................
</TABLE>
Under the terms and conditions of the Underwriting Agreement, the
Underwriters are committed to purchase and pay for all of the shares of Common
Stock offered hereby, if any are taken.
The Underwriters propose to offer the shares of Common Stock in part
directly to the public at the offering price set forth on the cover page of this
Prospectus, and in part to certain securities dealers at such price less a
concession of $.50 per share. The Underwriters may allow, and such dealers may
allow, a concession not in excess of $ per share to certain brokers and
dealers. After the shares of Common Stock are released for sale to the public,
the offering price and other selling terms may from time to time be varied by
the Underwriters. In addition, the Company has agreed to pay the Managing
Underwriter a 3% nonaccountable expense allowance on the aggregate initial
public offering price of the shares of Common Stock, including shares subject to
the Overallotment Option, of which $70,000 has been paid.
The Company has granted the Underwriters an Overallotment Option exercisable
for 30 days after the date of this Prospectus to purchase up to an aggregate of
225,000 additional shares of Common Stock solely to cover overallotments, if
any. If the Underwriters exercise their Overallotment Option, the Underwriters
have severally agreed, subject to certain conditions, to purchase approximately
the same percentage thereof that the number of shares of Common Stock to be
purchased by each of them, as shown in the table above, bears to the 1,500,000
shares of Common Stock offered hereby.
The Company has agreed in the Underwriting Agreement not to offer, sell,
contract to sell, grant any option to purchase or otherwise dispose of any
shares of Common Stock or any securities convertible into or exercisable or
exchangeable for Common Stock, subject to certain limited exceptions, for a
period of 12 months after the date of this Prospectus without the prior written
consent of the Underwriters. In addition, the Company's directors and executive
officers have agreed not to sell, contract to sell, grant any option to purchase
or otherwise dispose of any shares of Common Stock or any securities convertible
into or exercisable or exchangeable for Common Stock, other than as gifts,
pledges, and certain other transfers to persons who agree to the same
restrictions for a period of 12 months after the date of this Prospectus without
the prior written consent of the Underwriters.
The Company has agreed to sell to Centex Securities, Inc., the Managing
Underwriter, for nominal consideration, warrants to purchase 150,000 shares of
Common Stock on the closing date of this offering. The warrants will have an
exercise price equal to 130% of the offering price, will be exercisable
beginning on the first anniversary of the date of this Prospectus and for a
period of four years thereafter, and will contain certain anti-dilution,
registration rights, net issuance and exercise provisions. Until the first
anniversary date of this Prospectus, the warrants may not be sold, transferred,
assigned or hypothecated, except to the Underwriters or their officers,
directors or partners, subject to certain conditions and by will or operation of
law.
55
<PAGE>
At any time the Underwriter's warrants are likely to be exercised, the
Company would probably be able to obtain additional equity capital on more
favorable terms. The Company has registered the Common Stock underlying the
Underwriter's Warrants under the 1933 Act. If the Company files a registration
statement relating to an equity offering under the provisions of the 1933 Act at
any time during the five-year period following the date of this Prospectus, the
holders of the Underwriter's Warrants or underlying Common Stock will have the
right, subject to certain conditions, to include in such registration statement,
at the Company's expense, all or part of the underlying Common Stock at the
request of the holders. Additionally, the Company has agreed, for a period of
five years commencing on the date of this Prospectus, on demand of the holders
of a majority of the Underwriter's Warrants or the Common Stock issued or
issuable thereunder, to register the Common Stock underlying the Underwriter's
Warrants one time at the Company's expense. The registration of securities
pursuant to the Underwriter's Warrants may result in substantial expense to the
Company at a time when it may not be able to afford such expense, and may impede
future financing. The Company may find that the terms on which it could obtain
additional capital may be adversely affected while the Underwriter's Warrants
are outstanding. The number of shares of Common Stock covered by the
Underwriter's Warrants and the exercise price are subject to adjustment under
certain events to prevent dilution.
In connection with the Offering, the Underwriters and their respective
affiliates may, in accordance with Regulation M under the Securities Exchange
Act of 1934 (the "Exchange Act"), engage in overallotment, stabilizing
transaction, syndicate covering transactions, penalty bids and other
transactions that stabilize, maintain or otherwise affect the market price for
the Common Stock. Over-allotment involves syndicate sales in excess of the
offering size, which creates a syndicate short position, in which case the
Underwriter may engage in a syndicate covering transaction or may exercise the
Underwriters' over-allotment option described above. Syndicate covering
transactions involve the purchase of Common Stock in the open market following
completion of the offering to cover all or a portion of a syndicate short
position. Penalty bids permit the Underwriters to reclaim a selling concession
from a syndicate member when Common Stock originally sold by such syndicate
member is purchased in a syndicate covering transaction to cover syndicate short
position. Stabilizing transactions permit bids to purchase the underlying
security so long as the stabilizing bids do not exceed a specified minimum. Any
of the transactions described in this paragraph may cause the price of Common
Stock to be higher than it would otherwise be in the absence of such
transactions. These transactions may be effected on the Nasdaq SmallCap Market
or otherwise and, if commenced, may be discontinued at any time.
The Company has agreed to indemnify the several Underwriters against certain
liabilities, including liabilities under the Securities Act or to contribute to
payments the Underwriters may be required to make in respect of such
liabilities.
The foregoing is a summary of the principal terms of the agreements
described above and does not purport to be complete. Reference is made to copies
of each such agreement which are filed as exhibits to the Registration Statement
of which this Prospectus forms a part. See "Additional Information."
LEGAL MATTERS
The validity of the shares of Common Stock offered hereby will passed upon
for the Company by Krausman, L.L.C., Denver, Colorado. Certain legal matters
will be passed upon for the Underwriters by Luce, Forward, Hamilton & Scripps
LLP, San Diego, California.
EXPERTS
The financial statements of the Company for the fiscal years ended March 31,
1997 and 1996 included in this Prospectus have been included in reliance on the
report of Spicer, Jeffries & Co., Denver, Colorado, independent accountants,
given on the authority of that firm as experts in accounting and auditing. The
financial statements of Fifth Dimension for the fiscal years ended March 31,
1997 and 1996 and
56
<PAGE>
incorporated by reference in this Prospectus have been included in and
incorporated herein in reliance on the report of Ernst & Young, Chartered
Accountants, given on the authority of that firm as experts in accounting and
auditing.
AVAILABLE INFORMATION
The Company has filed with the Securities and Exchange Commission (the
"Commission") a Registration Statement on Form SB-2 (the "Registration
Statement") under the Securities Act of 1933, as amended (the "Securities Act"),
with respect to the shares of Common Stock offered hereby. This Prospectus omits
certain information contained in the Registration Statement and the exhibits and
schedules thereto. Statements contained herein concerning the provisions of any
documents are not necessarily complete, and in each instance reference is made
to the copy of such document filed as an exhibit to the Registration Statement.
Each such statement is qualified in its entirety by such reference. The
Registration Statement, including exhibits and schedules filed therewith, may be
inspected without charge at the public reference facilities maintained by the
Commission at Room 1024, Judiciary Plaza, 450 Fifth Street, N.W., Washington,
D.C. 20549; Northwest Atrium Center, 500 West Madison Street, Suite 1400,
Chicago, IL 60661; 7 World Trade Center, New York, NY 10048; and 5670 Wilshire
Boulevard, Los Angeles, CA 90036. Copies of such materials may be obtained from
the public reference section of the Commission, Room 1024, Judiciary Plaza, 450
Fifth Street, N.W., Washington, D.C. 20549 upon payment of the prescribed fees.
The Commission maintains a web site that contains such reports and other
information regarding the Company at http://www.sec.gov.
57
<PAGE>
INDEX TO FINANCIAL STATEMENTS
<TABLE>
<S> <C>
PRO FORMA FINANCIAL STATEMENTS WITH RESPECT TO NFMI TRANSACTION
Introduction................................................................... F-2
Pro Forma Combined Balance Sheet, June 30, 1997................................ F-3
Notes to Pro Forma Combined Balance Sheet, June 30, 1997....................... F-4
Pro Forma Combined Statement of Operations for the three months ended June 30,
1997......................................................................... F-5
Notes to Pro Forma Combined Statement of Operations for the three months ended
June 30, 1997................................................................ F-6
Pro Forma Combined Statement of Operations for the year ended March 31, 1997... F-7
Notes to Pro Forma Combined Statement of Operations for the year ended March
31, 1997..................................................................... F-8
NEW FRONTIER MEDIA, INC.
Independent Auditors' Report of Spicer, Jeffries & Co. dated July 3, 1997...... F-9
Consolidated Balance Sheets, June 30, 1997 (unaudited), March 31, 1997 and F-10 -
1996......................................................................... F-11
Consolidated Statements of Operations, for the three months ended June 30, 1997
and 1996 (unaudited) and the years ended March 31, 1997 and 1996............. F-12
Consolidated Statements of Changes in Shareholders' Equity for the three months
ended June 30, 1997 (unaudited) and the years ended March 31, 1997 and
1996......................................................................... F-13
Consolidated Statements of Cash Flows for the three months ended June 30, 1997 F-14 -
and 1996 (unaudited) and the years ended March 31, 1997 and 1996............. F-15
F-16 -
Notes to the Consolidated Financial Statements................................. F-24
FIFTH DIMENSION COMMUNICATION (BARBADOS) INC., 1043133 ONTARIO INC. AND
MERLIN SIERRA INC.
Auditors' Report of Ernst & Young dated June 27, 1997.......................... F-25
Combined Balance Sheets, June 30, 1997 (unaudited), March 31, 1997 and 1996
(audited).................................................................... F-26
Combined Statements of Income and Retained Earnings, for the three months ended
June 30, 1997 and 1996 (unaudited) and the years ended March 31, 1997 and
1996 (audited)............................................................... F-27
Combined Statements of Cash Flows for the three months ended June 30, 1997 and
1996 (unaudited) and the years ended March 31, 1997 and 1996 (audited)....... F-28
F-29 -
Notes to the Unaudited and Audited Financial Statements........................ F-40
</TABLE>
F-1
<PAGE>
NEW FRONTIER MEDIA, INC.
AND SUBSIDIARIES
INTRODUCTION TO PROFORMA COMBINED FINANCIAL STATEMENTS
The following unaudited pro forma combined balance sheet reflects (1) the
shares issued and proceeds received in connection with the public offering on
Form SB-2 registration statement as if it had occurred on June 30, 1997 (2) the
acquisition of certain assets of Fifth Dimension Communications (Barbados) Inc.,
1043133 Ontario Inc. and Merlin Sierra Inc. ("Fifth Dimension") and the
acquisition of videoplayback and broadcast uplink equipment from Fifth Dimension
Communications (1996) Corporation and 841161 Ontario Limited (two entities
related through common ownership by Fifth Dimension's shareholders) by Colorado
Satellite Broadcasting, Inc. ("CSB") a newly formed wholly owned subsidiary of
New Frontier Media, Inc. ("NFMI") through the issuance of NFMI's unissued common
stock, cash and debt, as if it had occurred on June 30, 1997.
The following unaudited pro forma combined statements of operations reflect
for the purposes of computing earnings per share the shares issued in connection
with the public offering on Form SB-2 registration statement and the issuance of
shares to Fifth Dimension for certain assets of Fifth Dimension, Fifth Dimension
Communication (1996) Corporation and 841161 Ontario Limited by NFMI as if it had
occurred on April 1, 1996. All shares issued are considered issued and
outstanding for all periods presented.
The public offering on Form SB-2 registration statement will add 1,500,000
shares of NFMI's common stock and $7,875,000 of proceeds received, less offering
expenses.
The acquisition of assets of Fifth Dimension will be accomplished through
the issuance of 840,000 shares of NFMI's unissued common stock, 400,000 warrants
for NFMI's common stock, $3,500,000 in cash and debt of $1,000,000.
The acquisition of Fifth Dimension will be accounted for under the purchase
method of accounting. Under the purchase method of accounting, assets acquired
are recorded at their fair values. No adjustments have been made in the pro
forma balance sheet to the carrying values of the Fifth Dimension assets
acquired, final determination of the fair values of such assets will be made at
the date of acquisition. Accordingly, the purchase price in excess of recorded
asset amounts acquired from Fifth Dimension will be allocated to intangible
assets. Management believes that the fair market value of the equipment and film
inventories approximate book value. Certain intangible assets purchased from
Fifth Dimension are considered to have an indefinite future value such as
tradenames, trademarks, etc. In addition, the subscriber base and subscriber
lists generated sales of approximately $15,000,000 for the year ended March 31,
1997 and are considered an important component of the goodwill purchased. The
satellite transponder leases are for a period of five years with an option to
renew the leases for an additional five years. An important part of the
operations of Fifth Dimension is maintaining the transponder leases. The
benefits of the transponder leases are inuring to NFMI in connection with the
acquisition. Accordingly management believes that the amortization of the above
intangible assets should relate to the transponder leases and therefore all
intangibles as a group will be amortized over a 10 year period. In managements
opinion, the allocation of the purchase price and estimated transaction costs
incurred in the purchase will not differ materially from the preliminary
allocation used in these pro forma financial statements.
F-2
<PAGE>
NEW FRONTIER MEDIA, INC.
AND SUBSIDIARIES
PRO FORMA COMBINED BALANCE SHEET
JUNE 30, 1997
ASSETS
<TABLE>
<CAPTION>
PRO FORMA
ADJUSTMENT, PRO FORMA AFTER
NEW FRONTIER PUBLIC OFFERING PUBLIC OFFERING
MEDIA, INC. AND ACQUISITION AND ACQUISITION
AND OF FIFTH OF FIFTH
SUBSIDIARIES FIFTH DIMENSION DIMENSION DIMENSION
------------ --------------- --------------- ---------------
<S> <C> <C> <C> <C>
CURRENT ASSETS
Cash and certificates of deposit.............. $ 655,281 $ 524,376 $(3,560,000)(b) $ 3,696,531
6,601,250(a)
(524,376)(c)
Accounts receivable, net...................... 84,514 2,953,093 (2,953,093)(c) 84,514
Inventories................................... 753,211 -- -- 753,211
Other current assets.......................... 177,869 491,657 (291,657)(c) 377,869
------------ --------------- --------------- ---------------
Total current assets........................ 1,670,875 3,969,126 (727,876) 4,912,125
------------ --------------- --------------- ---------------
FURNITURE AND EQUIPMENT,
at cost--net.................................. 55,667 406,286 713,980(d) 1,175,933
------------ --------------- --------------- ---------------
OTHER ASSETS
Film exhibition rights........................ -- 653,546 -- 653,546
Notes receivable--officer (Note 3)............ 38,000 -- -- 38,000
Other assets--net............................. 203,444 672,775 (672,775)(c) 203,444
Goodwill and intangible assets................ -- -- 5,988,188(b) 5,988,188
------------ --------------- --------------- ---------------
Total other assets.......................... 241,444 1,326,321 5,315,413 6,883,178
------------ --------------- --------------- ---------------
TOTAL ASSETS................................ $1,967,986 $ 5,701,733 $ 5,301,517 $ 12,971,236
------------ --------------- --------------- ---------------
------------ --------------- --------------- ---------------
<CAPTION>
LIABILITIES AND SHAREHOLDERS' EQUITY
<S> <C> <C> <C> <C>
CURRENT LIABILITIES
Accounts payable.............................. $ 114,155 $ 902,425 $ (902,425)(c) $ 114,155
Lines of credit............................... 348,616 -- -- 348,616
Deferred revenue.............................. -- 1,794,101 (1,794,101)(c) --
Income tax payable............................ -- 402,082 (402,082)(c) --
Other liabilities............................. 193,588 -- -- 193,588
------------ --------------- --------------- ---------------
Total current liabilities................... 656,359 3,098,608 (3,098,608) 656,359
------------ --------------- --------------- ---------------
LONG-TERM DEBT.................................. 10,848 -- 1,000,000(b) 1,010,848
------------ --------------- --------------- ---------------
MINORITY INTEREST IN SUBSIDIARY................. 283,635 -- -- 283,635
------------ --------------- --------------- ---------------
SHAREHOLDERS' EQUITY
Common stock.................................. 419 272 84(b) 653
(272)(c)
150(a)
Preferred stock............................... 1,500 -- -- 1,500
Additional paid-in capital.................... 1,779,018 -- 3,401,916(b) 11,782,034
6,601,100(a)
Retained earnings (deficit)................... (763,793) 2,602,853 (2,602,853)(c) (763,793)
------------ --------------- --------------- ---------------
TOTAL SHAREHOLDERS' EQUITY.................. 1,017,144 2,603,125 7,400,125 11,020,394
------------ --------------- --------------- ---------------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY.................................... $1,967,986 $ 5,701,733 $ 5,301,517 $ 12,971,236
------------ --------------- --------------- ---------------
------------ --------------- --------------- ---------------
</TABLE>
See Notes to Pro Forma Combined Balance Sheets.
F-3
<PAGE>
NEW FRONTIER MEDIA, INC.
AND SUBSIDIARIES
NOTES TO PRO FORMA COMBINED BALANCE SHEET
JUNE 30, 1997
(a) Adjustment to record common stock issued in public offering of securities on
Form SB-2 registration statement. (1,500,000 shares of common stock and net
proceeds of $6,601,250)
(b) Adjustment to record issuance of 840,000 shares of common stock valued at
$3,402,000, $3,500,000 in cash and $1,000,000 in debt for certain assets of
Fifth Dimension, Fifth Dimension Communications (1996) Corporation and
841161 Ontario Limited. In addition, NFMI will incur approximately $60,000
in direct acquisition costs relating to the purchase of Fifth Dimension
resulting in $5,988,188 of goodwill and intangible assets.
(c) Adjustment to remove certain assets and liabilities not purchased or assumed
by NFMI from Fifth Dimension relating to (b) above.
(d) Adjustment to record acquisition of videoplayback and broadcast uplink
equipment from Fifth Dimension Communications (1996) Corporation and 841161
Ontario Limited relating to (b) above.
F-4
<PAGE>
NEW FRONTIER MEDIA, INC.
AND SUBSIDIARIES
PRO FORMA COMBINED STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 1997
<TABLE>
<CAPTION>
NEW PRO FORMA PRO FORMA
FRONTIER ADJUSTMENTS AFTER
MEDIA, INC. ACQUISITION ACQUISITION
AND FIFTH OF FIFTH OF FIFTH
SUBSIDIARIES DIMENSION DIMENSION DIMENSION
---------------- ------------ --------------- ----------------
<S> <C> <C> <C> <C>
SALES, net..................................... $ 479,330 $ 3,041,068 $ -- $ 3,520,398
COST OF SALES.................................. 451,783 1,904,646 -- 2,356,429
---------------- ------------ --------------- ----------------
GROSS PROFIT................................... 27,547 1,136,422 -- 1,163,969
---------------- ------------ --------------- ----------------
OPERATING EXPENSES
Occupancy and equipment...................... 36,030 87,776 (42,826)(e) 107,567
26,587(f)
Legal and professional....................... 30,264 59,362 -- 89,626
Advertising and promotion.................... 67,676 149,369 (19,387)(c) 197,658
Salaries, wages and benefits................. 68,812 322,719 (45,282)(d) 346,249
Communications............................... 7,785 47,068 -- 54,853
General and administrative................... 41,241 152,051 -- 193,292
Research and development..................... 7,048 -- -- 7,048
Consulting................................... 18,256 1,323 -- 19,579
Amortization of goodwill and intangible
assets..................................... -- -- 149,705(h) 149,705
---------------- ------------ --------------- ----------------
Total operating expenses................... 277,112 819,668 68,797 1,165,577(i)
---------------- ------------ --------------- ----------------
OTHER INCOME (EXPENSE)
Licensing fees and royalties, net............ 22,582 -- -- 22,582
Interest, net................................ 1,190 (2,659) -- (1,469)
---------------- ------------ --------------- ----------------
Total other income......................... 23,772 (2,659) -- 21,113
---------------- ------------ --------------- ----------------
Net income (loss) before minority interest
and income taxes........................... (225,793) 314,095 (68,797) 19,505
Minority interest in loss of subsidiary........ 21,808 -- -- 21,808
Income taxes................................... -- (20,000) (10,402)(g) (30,402)
---------------- ------------ --------------- ----------------
NET INCOME (LOSS).............................. $ (203,985) $ 294,095 $ (79,199) $ 10,911
---------------- ------------ --------------- ----------------
---------------- ------------ --------------- ----------------
NET INCOME (LOSS) PER SHARE OF COMMON STOCK.... $ (.05) $ *
---------------- ----------------
---------------- ----------------
WEIGHTED AVERAGE NUMBER OF SHARES
OUTSTANDING.................................. 4,192,511(a) 6,547,511(b)
---------------- ----------------
---------------- ----------------
</TABLE>
- ------------------------
* less than $.01 per share
See Notes to Pro Forma Combined Statement of Operations.
F-5
<PAGE>
NEW FRONTIER MEDIA, INC.
AND SUBSIDIARIES
NOTES TO PRO FORMA COMBINED STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 1997
(a) The weighted average number of shares outstanding of NFMI represents the
original shares outstanding at June 30, 1997.
(b) The weighted average number of shares outstanding after the acquisition
represents 1,500,000 common shares of NFMI issued in the public offering on
Form SB-2 registration statement and 840,000 shares issued to Fifth
Dimension in connection with the acquisition of certain assets from Fifth
Dimension, Fifth Dimension Communications (1996) Corporation and 841161
Ontario Limited and the 15,000 preferred shares which are treated as if
converted to common stock. All shares issued are considered issued and
outstanding for the entire period.
(c) Entertainment expense related to stadium skybox that is discontinued.
(d) Marketing office closed and to be operated from existing Boulder, Colorado
office of NFMI.
(e) To remove rental expense on videoplayback and broadcast uplink equipment
paid to Fifth Dimension Communications (1996) Corporation and 841161 Ontario
Limited.
(f) To add actual depreciation recorded by Fifth Dimension Communications (1996)
Corporation and 841161 Ontario Limited on videoplayback and broadcast uplink
equipment.
(g) To increase income taxes to United States tax rates on adjusted pro forma
net income.
(h) Amortization of goodwill and intangible assets ($5,988,188/10 years x 3
months).
(i) Should Fifth Dimension not realize the benefit of the registrant incurring
expenses on its behalf, but instead operating on a stand alone basis, total
expenses would be $1,227,098.
F-6
<PAGE>
NEW FRONTIER MEDIA, INC.
AND SUBSIDIARIES
PRO FORMA COMBINED STATEMENT OF OPERATIONS
YEAR ENDED MARCH 31, 1997
<TABLE>
<CAPTION>
PRO FORMA
NEW FRONTIER ADJUSTMENTS PRO FORMA AFTER
MEDIA, INC. AND FIFTH ACQUISITION OF ACQUISITION OF
SUBSIDIARIES DIMENSION FIFTH DIMENSION FIFTH DIMENSION
---------------- ------------- --------------- -----------------
<S> <C> <C> <C> <C>
SALES, net.................................. $ 2,515,802 $ 15,044,139 $ -- $ 17,559,941
COST OF SALES............................... 2,217,812 9,560,847 -- 11,778,659
---------------- ------------- --------------- -----------------
GROSS PROFIT................................ 297,990 5,483,292 -- 5,781,282
---------------- ------------- --------------- -----------------
OPERATING EXPENSES
Occupancy and equipment................... 190,675 357,356 (138,696)(g) 522,633
113,298(h)
Legal and professional.................... 67,625 213,889 -- 281,514
Advertising and promotion................. 199,238 530,301 (78,980)(d) 650,559
Salaries, wages and benefits.............. 236,017 1,650,714 (415,727)(e) 1,471,004
Commissions............................... -- 363,457 (305,982)(f) 57,475
Communications............................ 32,137 254,398 -- 286,535
General and administrative................ 129,615 735,280 -- 864,895
Consulting................................ 76,035 -- -- 76,035
Amortization of goodwill and intangible
assets.................................. -- -- 598,819(j) 598,819
---------------- ------------- --------------- -----------------
Total operating expenses................ 931,342 4,105,395 (227,268) 4,809,469(k)
---------------- ------------- --------------- -----------------
OTHER INCOME (EXPENSE)
Licensing fees and royalties, net......... 164,802 -- -- 164,802
Interest, net............................. 17,714 (158,749) -- (141,035)
Loss on investment shares................. -- (220,000) 220,000(c) --
---------------- ------------- --------------- -----------------
Total other income (expense)............ 182,516 (378,749) 220,000 23,767
---------------- ------------- --------------- -----------------
Net income (loss) before minority interest
and income taxes........................ (450,836) 999,148 447,268 995,580
Minority interest in loss of subsidiary..... 64,806 -- -- 64,806
Income taxes................................ -- (101,850) (427,345)(i) (529,195)
---------------- ------------- --------------- -----------------
NET INCOME (LOSS)........................... $ (386,030) $ 897,298 $ 19,923 $ 531,191
---------------- ------------- --------------- -----------------
---------------- ------------- --------------- -----------------
NET INCOME (LOSS) PER SHARE OF COMMON
STOCK..................................... $ (0.09) $ 0.08
---------------- -----------------
---------------- -----------------
WEIGHTED AVERAGE NUMBER OF SHARES
OUTSTANDING............................... 4,188,459(a) 6,543,459(b)
---------------- -----------------
---------------- -----------------
</TABLE>
See Notes to Pro Forma Combined Statement of Operations.
F-7
<PAGE>
NEW FRONTIER MEDIA, INC.
AND SUBSIDIARIES
NOTES TO PRO FORMA COMBINED STATEMENT OF OPERATIONS
YEAR ENDED MARCH 31, 1997
(a) The weighted average number of shares outstanding of NFMI represents the
original weighted average shares outstanding for the year ended March 31,
1997.
(b) The weighted average number of shares outstanding after the acquisition
represents the 1,500,000 common shares of NFMI issued in the public offering
on Form SB-2 registration statement, and 840,000 shares issued to Fifth
Dimension in connection with the acquisition of certain assets from Fifth
Dimension and the conversion of 15,000 preferred shares to common shares.
All shares issued are considered issued and outstanding for the entire year.
(c) Loss on investment shares not related to Satellite operations.
(d) Entertainment expense related to stadium skybox that is discontinued.
(e) Marketing office closed and to be operated from existing Boulder, Colorado
office of NFMI.
(f) Consulting payments paid to third party which will no longer be used in
Satellite operations.
(g) To remove rental expense on videoplayback and broadcast uplink equipment
paid to Fifth Dimension Communications (1996) Corporation and 841161 Ontario
Limited.
(h) To add actual depreciation recorded by Fifth Dimension Communications (1996)
Corporation and 841161 Ontario Limited on videoplayback and broadcast uplink
equipment.
(i) To increase income taxes to United States tax rates on adjusted pro forma
net income.
(j) Amortization of goodwill and intangible assets (5,988,188 / 10 years).
(k) Should Fifth Dimension not realize the benefit of the registrant incurring
expenses on its behalf, but instead operating on a stand alone basis, total
expenses would be $5,250,594.
F-8
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Board of Directors
New Frontier Media, Inc. and Subsidiaries
We have audited the accompanying consolidated balance sheets of New Frontier
Media, Inc. and Subsidiaries as of March 31, 1997 and 1996, and the related
consolidated statements of operations, changes in shareholders' equity, and cash
flows for the years then ended. These financial statements are the
responsibility of the Company's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above
present fairly, in all material respects, the financial position of New Frontier
Media, Inc. and Subsidiaries as of March 31, 1997 and 1996, and the results of
their operations and their cash flows for the years then ended, in conformity
with generally accepted accounting principles.
As discussed in Note 10 to the financial statements, a substantial claim has
been asserted against the Company. The ultimate outcome of this matter cannot
presently be determined.
SPICER, JEFFRIES & CO.
Denver, Colorado
July 3, 1997, except for Note 10
as to which the date is October 7, 1997
F-9
<PAGE>
NEW FRONTIER MEDIA, INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
MARCH 31, 1997 AND 1996 AND JUNE 30, 1997 (UNAUDITED)
ASSETS
<TABLE>
<CAPTION>
JUNE 30, MARCH 31, MARCH 31,
1997 1997 1996
------------ ------------ ------------
<S> <C> <C> <C>
(UNAUDITED)
CURRENT ASSETS
Cash--restricted (Note 4)............................................. $ 104,386 $ 109,387 $ 48,523
Investment in certificates of deposit--restricted
(Notes 4 and 7)..................................................... 550,895 750,000 --
Accounts receivable (Notes 1 and 3)................................... 84,514 212,370 222,276
Inventories (Note 1).................................................. 753,211 659,503 354,089
Prepaid distribution rights (Note 1).................................. 69,000 82,250 94 500
Common stock subscribed............................................... -- -- 20,000
Income tax receivable................................................. -- -- 72,500
Other................................................................. 108,869 68,225 48,990
------------ ------------ ------------
Total current assets................................................ 1,670,875 1,881,735 860,878
------------ ------------ ------------
FURNITURE AND EQUIPMENT, at cost (Note 1)............................... 81,931 65,552 39,314
Less: accumulated depreciation and amortization....................... (26,264) (22,661) (10,479)
------------ ------------ ------------
Net furniture and equipment......................................... 55,667 42,891 28,835
------------ ------------ ------------
OTHER ASSETS
Notes receivable--officer (Note 3).................................... 38,000 38,000 38,000
Accounts receivable--retainage (Note 1)............................... 95,235 88,844 77,053
Other................................................................. 108,209 135,001 12,583
------------ ------------ ------------
Total other assets.................................................. 241,444 261,845 127,636
------------ ------------ ------------
$ 1,967,986 $ 2,186,471 $ 1,017,349
------------ ------------ ------------
------------ ------------ ------------
</TABLE>
See accompanying notes to consolidated financial statements.
F-10
<PAGE>
NEW FRONTIER MEDIA, INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
MARCH 31, 1997 AND 1996 AND JUNE 30, 1997 (UNAUDITED)
LIABILITIES AND SHAREHOLDERS' EQUITY
<TABLE>
<CAPTION>
MARCH 31, MARCH 31,
1997 1996
JUNE 30, ------------ ------------
1997
------------
(UNAUDITED)
<S> <C> <C> <C>
CURRENT LIABILITIES
Accounts payable...................................................... $ 114,155 $ 125,928 $ 186,742
Current portion of long-term debt (Note 2)............................ 139,573 139,573 139,573
Current portion of obligations under capital lease (Note 6)........... 5,856 5,139 --
Lines of credit (Note 7).............................................. 348,616 341,274 --
Other accrued liabilities............................................. 48,159 45,416 15,562
------------ ------------ ------------
Total current liabilities........................................... 656,359 657,330 341,877
LONG-TERM DEBT
Obligations under capital leases (Note 6)............................. 10,848 12,926 --
------------ ------------ ------------
Total liabilities................................................... 667,207 670,256 341,877
------------ ------------ ------------
MINORITY INTEREST IN SUBSIDIARY (Notes 1 and 4)......................... 283,635 305,443 --
------------ ------------ ------------
COMMITMENTS AND CONTINGENCIES (Notes 4 and 6)
SHAREHOLDERS' EQUITY (Notes 1 and 4)
Common stock, $.0001 par value, 50,000,000 shares authorized,
4,192,511, 4,189,000 and 4,175,250, shares issued and outstanding,
respectively........................................................ 419 419 418
Preferred stock, $.10 par value, 5,000,000 shares authorized:
Class A, 10,000 shares issued and outstanding....................... 1,000 1,000 1,000
Class B, 5,000 shares issued and outstanding........................ 500 500 --
Additional paid-in capital............................................ 1,779,018 1,768,661 847,832
Deficit............................................................... (763,793) (559,808) (173,778)
------------ ------------ ------------
Total shareholders' equity.......................................... 1,017,144 1,210,772 675,472
------------ ------------ ------------
$ 1,967,986 $ 2,186,471 $ 1,017,349
------------ ------------ ------------
------------ ------------ ------------
</TABLE>
See accompanying notes to consolidated financial statements.
F-11
<PAGE>
NEW FRONTIER MEDIA, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
THREE MONTHS ENDED
JUNE 30, YEAR ENDED MARCH 31,
-------------------------- --------------------------
1997 1996 1997 1996
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
(UNAUDITED)
SALES, net............................................... $ 479,330 $ 625,094 $ 2,515,802 $ 2,565,671
COST OF SALES............................................ 451,783 521,525 2,217,812 1,843,765
------------ ------------ ------------ ------------
GROSS PROFIT............................................. 27,547 103,569 297,990 721,906
------------ ------------ ------------ ------------
OPERATING EXPENSES
Occupancy and equipment................................ 36,030 40,092 190,675 118,960
Legal and professional................................. 30,264 7,287 67,625 96,101
Advertising and promotion.............................. 67,676 23,601 199,238 225,319
Salaries, wages and benefits........................... 68,812 44,696 236,017 184,282
Communications......................................... 7,785 8,058 32,137 22,609
General and administrative............................. 41,241 27,686 129,615 60,942
Research and development............................... 7,048 -- -- 8,851
Consulting............................................. 18,256 13,866 76,035 65,281
Abandoned project costs................................ -- -- -- 25,316
------------ ------------ ------------ ------------
Total operating expenses............................. 277,112 165,286 931,342 807,661
------------ ------------ ------------ ------------
OTHER INCOME (EXPENSE)
Licensing fees and royalties........................... 27,537 62,571 191,995 157,106
Licensing commissions.................................. (4,955) (12,312) (27,193) (54,665)
Interest income........................................ 12,068 640 37,736 4,152
Interest expense....................................... (10,878) (179) (20,022) (15,561)
------------ ------------ ------------ ------------
Total other income................................... 23,772 50,720 182,516 91,032
------------ ------------ ------------ ------------
Net income (loss) before income taxes and minority
interest........................................... (225,793) (10,997) (450,836) 5,277
INCOME TAXES (Notes 1 and 5)............................. -- (2,454) -- (12,147)
------------ ------------ ------------ ------------
Net loss before minority interest (225,793) (13,451) (450,836) (6,870)
Minority interest in loss of subsidiary.................. 21,808 -- 64,806 --
------------ ------------ ------------ ------------
NET LOSS................................................. $ (203,985) $ (13,451) $ (386,030) $ (6,870)
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
NET LOSS PER COMMON SHARE (Note 1)....................... $ (.05) $ * $ (.09) $ *
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
WEIGHTED AVERAGE SHARES OUTSTANDING (Note 1)............. 4,192,511 4,181,917 4,188,459 4,051,896
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
</TABLE>
* less than $.01 per share
See accompanying notes to consolidated financial statements.
F-12
<PAGE>
NEW FRONTIER MEDIA, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
MARCH 31, 1997 AND 1996 AND JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
CLASS B
PREFERRED
STOCK
COMMON STOCK CLASS A PREFERRED STOCK -----------
----------------------------------------------- ------------------------
$0.10 PAR
NO PAR VALUE $0.0001 PAR VALUE $0.10 PAR VALUE VALUE
---------------------- ----------------------- ------------------------ -----------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES
----------- --------- ---------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
BALANCES, March 31, 1995................ 4,000 $ 80,000 -- $ -- -- $ -- --
Contribution of capital............... -- 3,250 -- -- -- -- --
Reverse acquisition of National
Securities Holding Corporation (Note
1).................................. (4,000) (83,250) 4,000,000 400 -- -- --
Issuance of Class A preferred stock... -- -- -- -- 10,000 1,000 --
Issuance of common stock.............. -- -- 175,250 18 -- -- --
Net Loss.............................. -- -- -- -- -- -- --
----------- --------- ---------- ----- ----------- ----------- -----
BALANCES, March 31, 1996................ -- -- 4,175,250 418 10,000 1,000 --
Issuance of subsidiary's common stock,
less offering costs of $11,085...... -- -- -- -- -- -- --
Issuance of Class B preferred stock,
less offering costs of $6,663....... -- -- -- -- -- -- 5,000
Issuance of common stock, less
offering costs of $10,922........... -- -- 20,000 2 -- -- --
Retirement of common stock............ -- -- (6,250) (1) -- -- --
Net loss.............................. -- -- -- -- -- -- --
----------- --------- ---------- ----- ----------- ----------- -----
BALANCES, March 31, 1997................ -- -- 4,189,000 419 10,000 1,000 5,000
Issuance of common stock.............. -- -- 10,511 1 -- -- --
Retirement of common stock............ -- -- (7,000) (1) -- -- --
Net loss.............................. -- -- -- -- -- -- --
----------- --------- ---------- ----- ----------- ----------- -----
BALANCES, June 30, 1997................. $ -- $ -- 4,192,511 $ 419 10,000 $ 1,000 5,000
----------- --------- ---------- ----- ----------- ----------- -----
----------- --------- ---------- ----- ----------- ----------- -----
<CAPTION>
ADDITIONAL
PAID-IN
AMOUNT CAPITAL DEFICIT
----------- ----------- ----------
<S> <C> <C> <C>
BALANCES, March 31, 1995................ $ -- $ -- $ (166,908)
Contribution of capital............... -- -- --
Reverse acquisition of National
Securities Holding Corporation (Note
1).................................. -- 82,850 --
Issuance of Class A preferred stock... -- 64,000 --
Issuance of common stock.............. -- 700,982 --
Net Loss.............................. -- -- (6,870)
----- ----------- ----------
BALANCES, March 31, 1996................ -- 847,832 (173,778)
Issuance of subsidiary's common stock,
less offering costs of $11,085...... -- 863,915 --
Issuance of Class B preferred stock,
less offering costs of $6,663....... 500 12,837 --
Issuance of common stock, less
offering costs of $10,922........... -- 69,076 --
Retirement of common stock............ -- (24,999) --
Net loss.............................. -- -- (386,030)
----- ----------- ----------
BALANCES, March 31, 1997................ 500 1,768,661 (559,808)
Issuance of common stock.............. -- 47,533 --
Retirement of common stock............ -- (37,176) --
Net loss.............................. -- -- (203,985)
----- ----------- ----------
BALANCES, June 30, 1997................. $ 500 $ 1,779,018 $ (763,793)
----- ----------- ----------
----- ----------- ----------
</TABLE>
See accompanying notes to consolidated financial statements.
F-13
<PAGE>
NEW FRONTIER MEDIA, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
THREE MONTHS ENDED JUNE
30, YEARS ENDED MARCH 31,
------------------------ ------------------------
1997 1996 1997 1996
----------- ----------- ------------ ----------
(UNAUDITED)
<S> <C> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss.................................................... $ (203,985) $ (13,451) $ (386,030) $ (6,870)
Adjustments to reconcile net loss to net cash used in
operating activities:
Depreciation and amortization............................. 3,603 -- 12,244 7,807
Issuance of common stock for services..................... 15,000 -- -- --
Increase (decrease) in accounts payable................... (11,773) (68,171) (60,814) 170,491
(Increase) decrease in accounts receivable................ 121,465 51,317 (1,885) (233,997)
Increase in inventories................................... (93,708) (99,962) (305,414) (326,929)
(Increase) decrease in prepaid distribution rights........ 13,250 9,830 12,250 (94,500)
(Increase) decrease in other assets....................... 11,148 624 (141,715) (59,309)
(Increase) decrease in income tax receivable.............. -- -- 72,500 (72,500)
Increase in other accrued liabilities..................... 2,743 -- 29,854 15,562
Minority interest in loss of subsidiary................... (21,808) -- (64 806) --
----------- ----------- ------------ ----------
Net cash used in operating activities................... (164,065) (119,813) (833,816) (600,245)
----------- ----------- ------------ ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of equipment and furniture......................... (16,379) (4,470) (6,928) (17,732)
Increase in notes receivable--officer....................... -- -- -- (38,000)
(Purchase) redemption of certificates of deposit............ 199,105 -- (750,000) --
----------- ----------- ------------ ----------
Net cash used in investing activities................... 182,726 (4,470) (756,928) (55,732)
----------- ----------- ------------ ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on capital lease obligation........................ (1,361) -- (1,245) --
Proceeds from line of credit................................ 7,342 -- 341,274 --
Payments of notes payable................................... -- -- -- (45,427)
Issuance of common stock, net of offering costs............. 7,534 100,000 89,078 681,000
Retirement of common stock.................................. (37,177) -- (25,000) --
Issuance of preferred stock, net of offering costs.......... -- -- 13,337 65,000
Contribution of capital..................................... -- -- -- 3,250
Issuance of subsidiary's common stock, net of offering
costs..................................................... -- -- 863,915 --
Increase in minority interest, net of offering costs of
$4,751.................................................... -- -- 370,249 --
----------- ----------- ------------ ----------
Net cash provided by financing activities............... (23,662) 100,000 1,651,608 703,823
----------- ----------- ------------ ----------
</TABLE>
See accompanying notes to consolidated financial statements.
F-14
<PAGE>
NEW FRONTIER MEDIA, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(CONCLUDED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED JUNE
30, YEARS ENDED MARCH 31,
------------------------ ------------------------
1997 1996 1997 1996
----------- ----------- ------------ ----------
(UNAUDITED)
<S> <C> <C> <C> <C>
NET INCREASE (DECREASE) IN CASH............................... $ (5,001) $ (24,283) $ 60,864 $ 47,846
CASH, BEGINNING OF PERIOD..................................... 109,387 48,523 48,523 677
----------- ----------- ------------ ----------
CASH, END OF PERIOD........................................... $ 104,386 $ 24,240 $ 109,387 $ 48,523
----------- ----------- ------------ ----------
----------- ----------- ------------ ----------
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Interest paid............................................... $ -- $ -- $ 5,487 $ --
----------- ----------- ------------ ----------
----------- ----------- ------------ ----------
Income taxes paid........................................... $ -- $ -- $ -- $ 12,147
----------- ----------- ------------ ----------
----------- ----------- ------------ ----------
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING
ACTIVITIES:
Common stock subscribed..................................... $ -- $ (20,000) $ -- $ 20,000
Purchase of equipment via capital lease obligation.......... $ -- $ -- $ 19,310 $ --
----------- ----------- ------------ ----------
----------- ----------- ------------ ----------
Common stock issued for services............................ $ 40,000 $ -- $ -- $ --
----------- ----------- ------------ ----------
----------- ----------- ------------ ----------
</TABLE>
See accompanying notes to consolidated financial statements.
F-15
<PAGE>
NEW FRONTIER MEDIA, INC.
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
YEARS ENDED MARCH 31, 1997 AND 1996 AND
THREE MONTHS ENDED JUNE 30, 1997 AND 1996 (UNAUDITED)
NOTE 1--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION, BUSINESS, AND CONSOLIDATION
The Company was incorporated on July 26, 1995 as New Frontier Media, Inc.
("NFMI") and subsequently changed its name to Old Frontier Media, Inc. ("OFMI").
On July 31, 1995, OFMI acquired 100% of the outstanding common stock of Boulder
Interactive Group, Inc. ("BIG") (a developer and publisher of entertainment and
educational computer software on CD-ROM), incorporated on June 3, 1994, for 100%
of OFMI's outstanding common stock. In addition, on July 31, 1995 OFMI
capitalized two subsidiaries, David Entertainment, Inc. ("DVD") (distributor of
adult laserdisc and digital video disc format titles) and FUZZY Entertainment,
Inc. ("FUZZY") (developer and distributor of fine art posters and decorative art
posters).
On September 15, 1995, the shareholders of National Securities Holding
Corporation ("NSHC") approved an exchange of common stock of NSHC for the
outstanding common stock of Old Frontier Media, Inc. ("OFMI") and a name change
from NSHC to New Frontier Media, Inc.. As a result of this transaction, NFMI
owns OFMI as a wholly owned subsidiary. OFMI is presently the only operating
subsidiary (through its subsidiaries BIG, DVD and FUZZY) of NFMI. The stock
exchange between NSHC and OFMI has been considered a reverse acquisition. Under
reverse acquisition accounting, OFMI was considered the acquiror for accounting
and financial reporting purposes, and acquired the assets and assumed the
liabilities of NSHC. The acquisition was accomplished through the exchange of
all the outstanding common stock of OFMI for 3,720,000 shares of common stock
and 40,000 shares of preferred stock (after giving effect to the conversion of
the preferred stock to common stock and then giving effect to a 1-for 2,034.66
reverse stock split of NSHC's common stock) representing a controlling interest
in NSHC. On September 20, 1996, Quarto Holdings, Inc. ("Quarto") purchased 1,714
newly issued common shares of BIG for a 30% minority interest (see Note 4).
The accompanying consolidated financial statements include the historical
accounts of BIG for all periods and the accounts of NFMI since September 15,
1995 and OFMI, DVD and FUZZY since inception. As a result of the issuance of the
common stock of BIG, as mentioned above, the accompanying financial statements
include 100% of the operations of BIG through September 20, 1996, and the
minority interest in net loss of subsidiary represents 30% of the operations of
BIG after that date. All intercompany accounts and transactions have been
eliminated in consolidation. The June 30, 1997 and 1996 amounts included herein
are unaudited. In the opinion of management, all adjustments (which include only
normal recurring adjustments) necessary to present fairly the financial
position, results of operations, cash flows and changes in shareholders' equity
at June 30, 1997 and 1996 have been made.
ACCOUNTS RECEIVABLE
In connection with BIG's sales and distribution of its products, BIG's major
distributor withholds 10% of its sales for returns from retailers. Per the
agreement dated December 23, 1994 with the distributor, these funds will be
retained until the agreement is terminated, but at no time shall the reserve
exceed the lesser of $150,000, or 10% of the total net receipts for the previous
twelve months. The agreement automatically renews after its three year term on a
year to year basis unless terminated by either party upon 180 days written
notice. At June 30, 1997, March 31, 1997 and 1996, retention amounts were
F-16
<PAGE>
NEW FRONTIER MEDIA, INC.
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
YEARS ENDED MARCH 31, 1997 AND 1996 AND
THREE MONTHS ENDED JUNE 30, 1997 AND 1996 (UNAUDITED)
NOTE 1--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
$95,235, $88,844 and $77,053, respectively. In addition, included in accounts
receivable at June 30, 1997 and March 31, 1997 is $11,962 and $17,141 from this
distributor.
INVENTORIES
Inventories consist of CD-ROM and laserdisc products which are acquired or
internally developed. These costs include acquisition, production, duplication
and the physical packaging of the products and are charged to cost of sales as
sales are made over the number of units estimated to be sold. It is the
Company's policy to evaluate these products for net realizable value on a
product-by-product basis.
FURNITURE AND EQUIPMENT
Furniture and equipment are stated at cost. The cost of maintenance and
repairs is charged to operations as incurred; significant additions and
betterments are capitalized. Depreciation is computed using accelerated and
straight-line methods over the estimated useful lives of three to five years.
INCOME TAXES
Concurrent with the stock exchange discussed above, BIG terminated its
subchapter S election effective July 31, 1995. The Company files a consolidated
income tax return with its subsidiaries in which the Company has an 80% or
greater interest.
CASH FLOWS
For purposes of reporting cash flows, cash includes those investments which
are short-term in nature (three months or less to original maturity), are
readily convertible to cash, and represent insignificant risk of changes in
value.
PREPAID DISTRIBUTION RIGHTS
Prepaid distribution rights include laserdisc and digital disc format title
rights purchased under agreements with related (see Note 3) and non-related
entities for replication and distribution. As these format titles are placed in
production, they will be charged to cost of sales as sales are made over the
number of units estimated to be sold.
RESEARCH AND DEVELOPMENT COSTS
All costs incurred to establish technological feasibility of the Company's
CD-ROM products are expensed as incurred. The majority of these costs are
contract services.
FAIR VALUE OF FINANCIAL INSTRUMENTS
The carrying amount of cash, certificates of deposits, accounts receivable,
accounts payable and notes receivable and payable approximates fair value.
F-17
<PAGE>
NEW FRONTIER MEDIA, INC.
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
YEARS ENDED MARCH 31, 1997 AND 1996 AND
THREE MONTHS ENDED JUNE 30, 1997 AND 1996 (UNAUDITED)
NOTE 1--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONCLUDED)
ESTIMATES
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
STOCK WARRANTS
The Company follows the intrinsic value based method of accounting as
prescribed by APB 25, ACCOUNTING FOR STOCK ISSUED TO EMPLOYEES, for its
stock-based compensation. Under the Company's stock warrant issuances, the
exercise price is in excess of the fair value of the warrants at the grant date
and no compensation cost is recognized.
NET LOSS PER SHARE OF COMMON STOCK
Net loss per share of common stock is based on the weighted average number
of shares of common stock outstanding, giving effect to the reverse acquisition
and reverse stock split of NFMI discussed above. Common stock equivalents are
not included in the weighted average calculation since their effect would be
anti-dilutive. Preferred dividends of $1,213, $813, $3,417 and $1,718 have been
added back to the net loss to arrive at net loss per common share for the three
months ended June 30, 1997 and 1996 and years ended March 31, 1997 and 1996,
respectively.
RECLASSIFICATIONS
Certain prior year amounts have been reclassified to conform to the current
year presentation.
NOTE 2--LONG-TERM DEBT
<TABLE>
<CAPTION>
MARCH 31,
JUNE 30, ------------------------
1997 1997 1996
----------- ----------- -----------
<S> <C> <C> <C>
(UNAUDITED)
Notes payable to officers and shareholders bearing interest at 8.5%,
unsecured and due on demand anytime after December 31, 1996.............. $ 85,000 $ 85,000 $ 85,000
Notes payable to entities, controlled by officers and shareholders, bearing
interest at 8.5%, unsecured and due on demand anytime after December 31,
1996..................................................................... 54,573 54,573 54,573
----------- ----------- -----------
139,573 139,573 139,573
Less current portion................................................... (139,573) (139,573) (139,573)
----------- ----------- -----------
$ -- $ -- $ --
----------- ----------- -----------
----------- ----------- -----------
</TABLE>
F-18
<PAGE>
NEW FRONTIER MEDIA, INC.
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
YEARS ENDED MARCH 31, 1997 AND 1996 AND
THREE MONTHS ENDED JUNE 30, 1997 AND 1996 (UNAUDITED)
NOTE 2--LONG-TERM DEBT (CONCLUDED)
Included in other liabilities at June 30, 1997, March 31, 1997 and 1996 are
$29,320, $11,012 and $15,562 of accrued interest relating to the above notes,
respectively.
NOTE 3--RELATED PARTY TRANSACTIONS
The Company purchased $65,000 of adult laserdisc format titles from a
related entity through the issuance of preferred stock (see Note 4). In
addition, the Company has an agreement with another related entity to sell,
package, handle, replicate and ship these adult laserdisc format titles at the
Company's expense for a management fee of $35,000 per month through May 31, 1996
and $40,000 per month thereafter. During the three months ended June 30, 1997
and 1996 and the years ended March 31, 1997 and 1996 this related entity
withheld from sales of $378,049, $631,742, $2,236,143 and $1,592,856,
replicating costs of $324,887, $451,035, $1,646,364 and $939,622 and management
fees of $120,000, $110,000, $470,000 and $262,500, respectively. Included in
accounts receivable at June 30, 1997, March 31, 1997 and 1996 was $25,173,
$141,585 and $222,276 due from the related entity, respectively.
In June 1995, the Company issued a three year note receivable to one of its
officers in the amount of $38,000. The note requires interest only payments at a
rate of 6.1%, payable on a quarterly basis with the principal due on August 31,
1998. Interest earned on this note for the three months ended June 30, 1997 and
1996 and the years ended March 31, 1997 and 1996 was $578, $578, $2,318 and
$1,346, respectively.
The Company leases certain equipment and office space via entities
controlled by an officer and shareholder on a month to month basis (see Note 6).
During the three months ended June 30, 1997 and 1996 and the years ended March
31, 1997 and 1996 the Company paid $18,339, $21,080, $116,549 and $98,212 to
these entities relating to these leases, respectively.
NOTE 4--SHAREHOLDERS' EQUITY
COMMON STOCK
The Company issued 195,250 units (one share of common stock and one Class A
warrant to purchase one share of common stock at an exercise price of $5.50
expiring December 13, 1997) through a private placement memorandum at a price of
$4.00 per unit. In December, 1996, 6,250 units were retired at the original
subscription price. For the three months ended June 30, 1997 the Company issued
10,511 shares of common stock in prepayment of services to be rendered and for
services rendered. In addition, the Company purchased and retired 7,000 shares
of common stock during the three months ended June 30, 1997.
PREFERRED STOCK
On September 20, 1995, the Company issued 10,000 shares of Class A
preferred, 5% cumulative stock in exchange for adult laserdisc format content
titles from a related entity (see Note 3).
In February, 1997 the Company issued 5,000 shares of Series B, 8%
cumulative, convertible preferred stock at $4.00 per share. Each Series B
preferred share is convertible into one share of the Company's common stock
subject to certain conditions.
F-19
<PAGE>
NEW FRONTIER MEDIA, INC.
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
YEARS ENDED MARCH 31, 1997 AND 1996 AND
THREE MONTHS ENDED JUNE 30, 1997 AND 1996 (UNAUDITED)
NOTE 4--SHAREHOLDERS' EQUITY (CONCLUDED)
As of June 30, 1997, cumulative dividends in arrears on Class A and B
preferred stock totalled $6,348.
SUBSIDIARY SALE OF STOCK
On September 20, 1996, Quarto Holdings, Inc., a Delaware Corporation,
purchased 30% of newly issued common stock of BIG for $1,250,000 in cash and
rights to develop and exploit digital material owned by Quarto. The Company
placed a $-0- value on the rights received from Quarto. The Company recorded 70%
of the $1,250,000 in proceeds as equity on a consolidated basis and 30% of this
amount as a minority interest (see Note 1).
In connection with the purchase, NFMI entered into a stockholder agreement
with Quarto whereby at least 75% of stockholder approval is necessary to approve
certain actions taken on behalf of BIG. The agreement enumerates various actions
and restrictions as it relates to the operations of BIG, specifically (1) that
the funding proceeds can only be used to fund BIG's development and
commercialization of CD-ROM titles and (2) 75% shareholder approval is required
before encumbering any assets of BIG. Therefore, cash and certificates of
deposit of $687,773 and $841,568 at June 30, 1997 and March 31, 1997,
respectively was restricted to BIG's operations and could not be used for the
operations of NFMI or its affiliates. On November 4, 1996 and February 11, 1997
NFMI opened lines of credit with a banking institution (see Note 7) and secured
these lines of credit with BIG's certificates of deposit. Under (2) above NFMI
breached the terms of the stockholder agreement by not obtaining 75% stockholder
approval before encumbering the assets of BIG. On July 2, 1997, the Company
unencumbered the certificates of deposits. Actions, if any, that Quarto may take
against NFMI regarding the breach of the stockholder agreement cannot be
determined at the present time.
WARRANTS
In connection with the above transaction, Quarto purchased a warrant from
NFMI for $400 cash which allows the right to purchase up to 400,000 common
shares of NFMI at an exercise price of $6.00 per share expiring on September 20,
2001. Pursuant to the terms of the warrant agreement, these shares and the
related exercise price will be adjusted if additional shares of common stock are
issued by the Company.
On October 12, 1995, the Company issued 20,000 warrants at an exercise price
of $4.00, expiring October 12, 1998, to an investment banker in connection with
a financial advisor agreement.
NOTE 5--INCOME TAXES
The Company has an unused net operating loss carry forward on a consolidated
basis of approximately $240,000 for income tax purposes, which principally
expires in 2012. In addition, the Company's 70% owned subsidiary BIG, which is
not part of the consolidated income tax return, has a net operating loss of
approximately $216,000 expiring in 2012. These net operating loss carryforwards
may result in future income tax benefits; however, because realization is
uncertain at this time, a valuation reserve in the same amount has been
established. Temporary differences arise from the recording of depreciation.
F-20
<PAGE>
NEW FRONTIER MEDIA, INC.
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
YEARS ENDED MARCH 31, 1997 AND 1996 AND
THREE MONTHS ENDED JUNE 30, 1997 AND 1996 (UNAUDITED)
NOTE 5--INCOME TAXES (CONCLUDED)
Significant components of the Company's deferred tax liabilities and assets as
of March 31, 1997 and 1996 are as follows:
<TABLE>
<CAPTION>
1997 1996
----------- ---------
<S> <C> <C>
Deferred tax liabilities.............................................. $ -- $ --
----------- ---------
----------- ---------
Deferred tax assets
Net operating loss carry forwards................................... 174,808 3,270
Valuation allowance for deferred tax assets......................... (174,808) (3,270)
----------- ---------
$ -- $ --
----------- ---------
----------- ---------
</TABLE>
The income tax provision reflected on the statement of operations of $12,147
in 1996 was due to filing a short period return to coincide the respective
entities' tax year end. This provision is not recoverable from the utilization
of the above net operating loss.
NOTE 6--COMMITMENTS AND AGREEMENTS
The Company has leases for office space and equipment under various
operating and capital leases. Included in furniture and equipment at March 31,
1997 is $19,310 of equipment under capital lease and accumulated depreciation
relating to this lease of $3,862.
Future minimum lease payments under these leases as of March 31, 1997 are as
follows:
<TABLE>
<CAPTION>
PRINCIPAL DUE
YEAR ENDED MARCH 31, OPERATING CAPITAL CAPITAL LEASE
- ------------------------------------------------------------------ ----------- --------- -------------
<S> <C> <C> <C>
1998.............................................................. $ 56,000 $ 7,606 $ 5,139
1999.............................................................. -- 7,606 5,814
2000.............................................................. -- 6,473 6,102
2001.............................................................. -- 1,414 1,010
----------- --------- -------------
$ 56,000 23,099 $ 18,065
----------- -------------
----------- -------------
Less amount representing interest................................. 5,034
---------
Present value of net minimum lease payments....................... $ 18,065
---------
---------
</TABLE>
Total rent expense for the three months ended June 30, 1997 and 1996 and the
years ended March 31, 1997 and 1996, was $18,339, $21,080, $136,013 and
$100,441, respectively.
On November 11, 1996 the Company entered into a two year financial advisory
and consulting agreement requiring annual payments of $50,000 and warrants to
purchase 150,000 shares of NFMI's common stock at an exercise price of the
market value of the common stock at the date of issuance. As of March 31, 1997
none of the above warrants were issued.
F-21
<PAGE>
NEW FRONTIER MEDIA, INC.
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
YEARS ENDED MARCH 31, 1997 AND 1996 AND
THREE MONTHS ENDED JUNE 30, 1997 AND 1996 (UNAUDITED)
NOTE 6--COMMITMENTS AND AGREEMENTS (CONCLUDED)
The Company's subsidiary FUZZY has entered into an agreement with an
individual to find images, negotiate artist contracts, finalize prints and
proofs and the marketing and selling of the prints. The agreement is for a term
of seven years and the Company has agreed to advance the venture as a line of
credit up to $250,000. Net profits will be split on a 50%/50% basis; however, in
the event advances are drawn by this individual, profits will be split on a
60%/40% basis until the advances have been paid in full. Included in other
assets as of June 30, 1997 and March 31, 1997 is approximately $78,716 and
$70,000 of advances to this individual under the agreement.
NOTE 7--LINES OF CREDIT
The Company has lines of credit with a banking institution as follows:
<TABLE>
<CAPTION>
MARCH 31,
1997
JUNE 30, ----------
1997
-----------
(UNAUDITED)
<S> <C> <C>
$250,000 line of credit, dated November 4, 1996, bearing interest at 7.950%,
due November 4, 1997 secured by certificate of deposit....................... $ 248,934 $ 247,241
$100,000 line of credit, dated February 11, 1997, bearing interest at 8.280%,
due November 4, 1997 secured by certificate of deposit....................... 99,682 94,033
----------- ----------
$ 348,616 $ 341,274
----------- ----------
----------- ----------
</TABLE>
The two certificates of deposit securing the above lines of credit are held
in the name of the Company's subsidiary BIG. The certificates bear interest at
rates ranging from 6% to 7% and mature in November and December of 1997 (see
Note 4).
NOTE 8--STOCK WARRANTS
The Company has no formal stock option plan; however, it has granted
warrants to officers and employees allowing them to purchase common stock of the
Company in excess of the market value of the stock at date of grant. Warrants
granted are for a three-year term.
In addition, common stock warrants have been issued in connection with
certain offerings of stock and in connection with a financial advisory agreement
(see Note 4). At March 31, 1997, warrants to purchase common stock at various
prices were outstanding which expire as follows:
<TABLE>
<CAPTION>
EXERCISE
EXPIRATION DATE WARRANTS PRICE
- ------------------------------------------------------------------------- --------- -----------
<S> <C> <C>
December, 1997........................................................... 189,000 $ 5.50
October, 1998............................................................ 20,000 4.00
September, 2001.......................................................... 400,000 6.00
---------
609,000
---------
---------
</TABLE>
F-22
<PAGE>
NEW FRONTIER MEDIA, INC.
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
YEARS ENDED MARCH 31, 1997 AND 1996 AND
THREE MONTHS ENDED JUNE 30, 1997 AND 1996 (UNAUDITED)
NOTE 8--STOCK WARRANTS (CONCLUDED)
The following table describes certain information related to the Company's
compensatory stock warrant activity for the year ending March 31, 1997.
<TABLE>
<CAPTION>
NUMBER OF WEIGHTED AVERAGE
WARRANTS EXERCISE PRICE
----------- -----------------
<S> <C> <C>
Outstanding, March 31, 1996.................................... -- $ --
Grants during year--Exercise price > market price.............. 146,666 6.00
Exercised, forfeited and expired during year................... -- --
-----------
Outstanding and exercisable, March 31, 1997.................... 146,666 $ 6.00
----------- -----
----------- -----
</TABLE>
The weighted average grant date fair value of the warrants granted in 1997
was as follows:
<TABLE>
<S> <C>
Exercise price > market price....... $ .5329
---------
---------
</TABLE>
The fair value of each option warrant is estimated using the Black-Scholes
option-pricing model with the following assumptions: risk-free interest rate of
6.50%; dividend yield of -0-%; expected life three years; and volatility of
16.71%.
A summary of the Company's outstanding and exercisable stock warrants as of
March 31, 1997 is as follows:
<TABLE>
<CAPTION>
WEIGHTED AVERAGE
NUMBER OF REMAINING CONTRACTUAL
EXERCISE PRICES WARRANTS LIFE (MONTHS)
- ---------------------------------------------------------- ----------- -------------------------
<S> <C> <C>
$6.00--Outstanding and exercisable........................ 546,666 48
$4.00--Outstanding and exercisable........................ 20,000 18
$5.50--Outstanding and exercisable........................ 189,000 9
</TABLE>
As previously described, the Company applies APB 25 and related
Interpretations in accounting for its stock warrants. Accordingly, no
compensation cost has been recognized. Had compensation cost for the Company's
warrants been determined based on the fair value at the grant dates for awards
consistent with the method of SFAS 123, the Company's net loss and loss per
share would have increased to the pro forma amounts indicated below:
<TABLE>
<CAPTION>
MARCH 31,
1997
------------
<S> <C>
Net loss........................................................................ $ (464,189)
------------
------------
Net loss per share.............................................................. $ (.11)
------------
------------
</TABLE>
F-23
<PAGE>
NEW FRONTIER MEDIA, INC.
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONCLUDED)
YEARS ENDED MARCH 31, 1997 AND 1996 AND
THREE MONTHS ENDED JUNE 30, 1997 AND 1996 (UNAUDITED)
NOTE 9--RISKS AND UNCERTAINTIES (CONCLUDED)
As previously discussed in Note 3, the Company distributes, through a
related entity, its adult laserdisc format titles. This related entity generates
substantially all of its sales from two distributors in California.
The Company sells the majority of its CD-Rom products through a distributor
in California. For the periods ended March 31, 1997 and 1996, 6% and 35% of
total sales were received from this distributor (see Note 1). The loss of this
distributor or the loss of the related entity's distributors mentioned above
could have an adverse effect on the Company's operations.
The Company also uses one major vendor to replicate all of its laserdisc
products; management believes that other vendors could be substituted on
materially the same terms if the loss of this vendor occurred.
The Company has deposits in a bank in excess of the FDIC insured amounts of
$100,000. The amounts in excess of $100,000 are subject to loss should the bank
cease business.
NOTE 10--EVENTS SUBSEQUENT TO THE DATE OF THE AUDITORS' REPORT
On October 24, 1997, the Company obtained a $1,000,000 line of credit from a
shareholder of the Company. The line of credit is valid for one year, and any
amounts the Company draws against the line of credit will bear interest at a
rate of 9% per annum. The Company has been making a rapid transition from a
distributor of adult films on Laserdisc to a distributor of adult films on
Digital Video Disc, which has resulted in a decrease of sales during the
transition period. In addition, two software products on CD-ROM have been
released, which management believes will result in increased sales in the coming
months. Should the public acceptance of these products and/or the successful
completion of the public Offering not be achieved within a certain time frame,
the Company may have to discontinue operations.
In addition, on September 29, 1997 the Company encumbered BIG's certificate
of deposit which is alleged by Quarto to be a violation of the terms of the
stockholder agreement (see Note 4). On October 7, 1997 the Company was notified
by Quarto that if certain terms and conditions were not met, Quarto would pursue
arbitration and other legal avenues for rescission of the purchase agreement and
return of all amounts invested in BIG by Quarto. Management, after review and
discussion with litigation counsel, has concluded that the encumbrance of assets
has caused Quarto no damages, financial or otherwise. The ultimate outcome of
this matter cannot be presently determined.
F-24
<PAGE>
AUDITORS' REPORT
To the Directors of
Fifth Dimension Communications (Barbados) Inc.,
1043133 Ontario Inc. and Merlin Sierra Inc.
We have audited the combined balance sheets of Fifth Dimension
Communications (Barbados) Inc., 1043133 Ontario Inc. and Merlin Sierra Inc. as
at March 31, 1997 and 1996 and the combined statements of income and retained
earnings and cash flows for the years then ended. These combined financial
statements are the responsibility of the companies' management. Our
responsibility is to express an opinion on these combined financial statements
based on our audits.
We conducted our audits in accordance with auditing standards generally
accepted in Canada. Those standards require that we plan and perform an audit to
obtain reasonable assurance whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation.
In our opinion, these combined financial statements present fairly, in all
material respects, the financial position of the companies as at March 31, 1997
and 1996 and the results of their operations and the changes in their financial
position for the years then ended in accordance with accounting principles
generally accepted in the United States.
<TABLE>
<S> <C>
[LOGO]
</TABLE>
Ottawa, Canada Chartered Accountants
June 27, 1997
F-25
<PAGE>
FIFTH DIMENSION COMMUNICATIONS (BARBADOS) INC.
1043133 ONTARIO INC. AND MERLIN SIERRA INC. (NOTE 1)
COMBINED BALANCE SHEETS
(UNITED STATES DOLLARS)
ASSETS
<TABLE>
<CAPTION>
AS AT: JUNE 30,
- --------------------------------------------------------------------------- 1997
----------- MARCH 31, MARCH 31,
1997 1996
$ ---------- ----------
(UNAUDITED) $ $
<S> <C> <C> <C>
CURRENT ASSETS
Cash....................................................................... 524,376 642,466 615,559
Accounts receivable--net of allowance for doubtful accounts of $1,450 (June
30, 1997); $1,450 (March 31, 1997); $59,530 (March 31, 1996)............. 1,929,997 1,522,195 560,351
Related party receivables (Note 6)......................................... 1,023,096 1,492,275 1,764,866
Inventory.................................................................. -- -- 11,409
Transponder deposits....................................................... 200,000 200,000 150,000
Deferred income taxes...................................................... -- -- 71,500
Prepaid expenses........................................................... 291,657 282,883 623,756
----------- ---------- ----------
3,969,126 4,139,819 3,797,461
Film exhibition rights..................................................... 653,546 748,331 662,935
Restricted investments--at cost (Note 3)................................... 672,775 691,492 825,449
Investment in shares....................................................... -- -- 220,000
Capital assets--net (Note 4)............................................... 406,286 348,463 400,259
----------- ---------- ----------
5,701,733 5,928,105 5,906,084
----------- ---------- ----------
----------- ---------- ----------
LIABILITIES
CURRENT LIABILITIES
Bank loan (Note 5)......................................................... -- 35,128 98,958
Accounts payable and accrued charges....................................... 375,005 1,009,773 905,682
Related party payables (Note 6)............................................ 527,420 471,282 860,703
Income taxes payable (Note 10)............................................. 402,082 382,082 408,744
Deferred subscription revenue.............................................. 1,794,101 1,720,810 2,075,337
----------- ---------- ----------
3,098,608 3,619,075 4,349,424
----------- ---------- ----------
----------- ---------- ----------
Commitments and Contingent Liabilities (Notes 6 & 7)
SHAREHOLDERS' EQUITY
Capital Stock (Note 8)..................................................... 272 272 272
Retained Earnings.......................................................... 2,602,853 2,308,758 1,556,388
----------- ---------- ----------
2,603,125 2,309,030 1,556,660
----------- ---------- ----------
5,701,733 5,928,105 5,906,084
----------- ---------- ----------
----------- ---------- ----------
</TABLE>
See accompanying notes to Financial Statements.
F-26
<PAGE>
FIFTH DIMENSION COMMUNICATIONS (BARBADOS) INC.
1043133 ONTARIO INC. AND MERLIN SIERRA INC.
COMBINED STATEMENTS OF INCOME AND RETAINED EARNINGS
(UNITED STATES DOLLARS)
<TABLE>
<CAPTION>
THREE MONTHS THREE MONTHS
ENDED JUNE ENDED JUNE YEAR ENDED YEAR ENDED
30, 30, MARCH 31, MARCH 31,
1997 1996 1997 1996
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
(UNAUDITED) (AUDITED)
Sales................................................ $ 3,041,068 $ 3,573,571 $ 15,044,139 $ 12,223,731
Cost of Sales........................................ 1,904,646 2,236,915 9,560,847 6,317,438
------------- ------------- ------------- -------------
Gross Profit......................................... 1,136,422 1,336,656 5,483,292 5,906,293
Expenses (see Schedule).............................. 822,327 1,103,317 4,264,144 3,898,653
------------- ------------- ------------- -------------
Net income from operations........................... 314,095 233,339 1,219,148 2,007,640
Loss on investment in Shares......................... -- 220,000 220,000 --
------------- ------------- ------------- -------------
314,095 13,339 999,148 2,007,640
------------- ------------- ------------- -------------
Provision for (recovery of) income taxes
Current............................................ 20,000 -- 30,350 (113,563)
Deferred........................................... -- (574,980) 71,500 (71,500)
------------- ------------- ------------- -------------
20,000 (574,980) 101,850 (185,063)
------------- ------------- ------------- -------------
Net Income for the period............................ 294,095 588,319 897,298 2,192,703
Retained Earnings (Deficit), beginning of period..... 2,308,758 1,556,388 1,556,388 (636,315)
------------- ------------- ------------- -------------
2,602,853 2,144,707 2,453,686 1,556,388
Dividends paid....................................... -- -- 144,928 --
------------- ------------- ------------- -------------
Retained Earnings end of period...................... $ 2,602,853 $ 2,144,707 $ 2,308,758 $ 1,556,388
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
</TABLE>
See accompanying notes to Financial Statements.
F-27
<PAGE>
FIFTH DIMENSION COMMUNICATIONS (BARBADOS) INC.
1043133 ONTARIO INC. AND MERLIN SIERRA INC.
COMBINED STATEMENTS OF CASH FLOWS
(UNITED STATES DOLLARS)
<TABLE>
<CAPTION>
THREE MONTHS THREE MONTHS YEAR YEAR
ENDED JUNE 30, ENDED JUNE 30, ENDED MARCH 31, ENDED MARCH 31,
1997 1996 1997 1996
-------------- -------------- ---------------- ----------------
$ $ $ $
(UNAUDITED) (UNAUDITED) (AUDITED) (AUDITED)
<S> <C> <C> <C> <C>
CASH PROVIDED FROM (USED IN)
OPERATING ACTIVITIES
Net income for the period.................... 294,095 588,319 897,298 2,192,703
Items not affecting cash--
Amortization of capital assets............... 30,744 48,077 120,347 144,398
Amortization of film exhibition rights....... 200,302 271,325 931,637 776,758
Loss on investment in shares................. -- 220,000 220,000 --
Deferred income taxes........................ -- (574,980) 71,500 (71,500)
Net change in operating components of working
capital (Note 11).......................... 136,496 (253,254) (936,660) (821,184)
-------------- -------------- ---------------- ----------------
661,637 299,487 1,304,122 2,221,175
-------------- -------------- ---------------- ----------------
INVESTING ACTIVITIES
Investment in shares......................... -- -- -- (220,000)
Purchases of capital assets.................. (88,567) (13,719) (74,682) (144,108)
Sales of capital assets...................... -- -- 6,131 11,893
Transfers of capital assets to related
company.................................... -- -- -- 567,373
(Advances to) repayments from, Teletheatre
Plus Inc................................... -- -- 718,432 (718,432)
Purchases of film exhibition rights.......... (105,517) (271,325) (1,017,033) (904,121)
(Purchase) redemption of restricted
investments................................ (592,002) (9,944) 133,957 (22,135)
-------------- -------------- ---------------- ----------------
(786,086) (294,988) (233,195) (1,429,530)
-------------- -------------- ---------------- ----------------
FINANCING ACTIVITIES
Capital stock................................ -- -- -- 100
Bank loan.................................... (35,128) (15,625) (63,830) 98,958
Dividends.................................... -- -- (144,928) --
Net change in accounts receivable and
payable, related companies................. 41,487 (206,964) (835,262) (398,661)
-------------- -------------- ---------------- ----------------
6,359 (222,589) (1,044,020) (299,603)
-------------- -------------- ---------------- ----------------
INCREASE (DECREASE) IN CASH FOR THE PERIOD... (118,090) (218,090) 26,907 492,042
CASH--BEGINNING OF PERIOD.................... 642,466 615,559 615,559 123,517
-------------- -------------- ---------------- ----------------
CASH--END OF PERIOD.......................... 524,376 397,969 642,466 615,559
-------------- -------------- ---------------- ----------------
-------------- -------------- ---------------- ----------------
</TABLE>
See accompanying notes to financial statements.
F-28
<PAGE>
FIFTH DIMENSION COMMUNICATIONS (BARBADOS) INC.
1043133 ONTARIO INC., MERLIN SIERRA INC.
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1997
1. BASIS OF PRESENTATION
These financial statements present the combined assets, liabilities,
revenues and expenses of Fifth Dimension Communications (Barbados) Inc. and
1043133 Ontario Inc. for the years ended March 31, 1997 and 1996 and those of
Merlin Sierra Inc., from February 1, 1996, the date of acquisition to March 31,
1996 and the year ended March 31, 1997.
The three companies carry on complementary but different businesses related
to the broadcasting of movies to subscribers by satellite and cable. Fifth
Dimension Communications (Barbados) Inc. is incorporated under the laws of
Barbados, 1043133 Ontario Inc. is incorporated under the laws of the Province of
Ontario in Canada and Merlin Sierra Inc. is incorporated under the laws of the
State of California in the United States. None of the three companies own shares
in the other companies.
These combined financial statements have been prepared by management in
accordance with accounting principles generally accepted in the United States
applied on a consistent basis and are presented in United States dollars. They
have been prepared in connection with a proposed sale of the combined business
of the three companies as expressed in a letter of intent dated April 14, 1997.
Under the terms of the letter of intent, the purchaser will only acquire certain
of the assets of the combined entities presented.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the dates of financial
statements and the reported amounts of revenues and expenses during the
reporting periods. Actual results could differ from those estimates.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVENTORY
Inventory is recorded at the lower of cost and net realizable value.
FILM EXHIBITION RIGHTS
Rights to exhibit films are recorded at cost and are amortized on a
straight-line basis over the period of the contract, which is normally
twenty-four months.
INVESTMENT IN SHARES
The investment in shares, originally recorded at cost, has been accounted
for by the equity basis.
CAPITAL ASSETS
Capital assets are initially recorded at cost and amortized over their
estimated useful lives. Furniture and fixtures are being amortized on the
diminishing balance basis at a rate of 20% per year. Automobiles and computers
are being amortized on the diminishing balance basis at a rate of 30% per year.
Leaseholds and the telephone system are amortized on a straight line basis over
the five year term of the realty lease. Software is amortized at a 100% rate.
F-29
<PAGE>
FIFTH DIMENSION COMMUNICATIONS (BARBADOS) INC.
1043133 ONTARIO INC., MERLIN SIERRA INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 1997
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
REVENUE RECOGNITION
Revenue from sales of television movie subscriptions from three to twelve
months is recognized on a monthly basis over the term of the subscription.
FOREIGN EXCHANGE
Monetary assets and liabilities denominated in currencies other than United
States dollars are translated at exchange rates in effect at the balance sheet
date. Non-monetary assets and liabilities in currencies other than United States
dollars are translated at historical rates. Revenue and expense items are
translated at average rates of exchange for the year. Translation gains and
losses are included in the determination of earnings.
3. RESTRICTED INVESTMENTS
Restricted investments consist of short-term marketable securities and
deposits recorded at cost held as collateral by the financial institutions
providing merchant credit card service to 1043133 Ontario Inc.
4. CAPITAL ASSETS
<TABLE>
<CAPTION>
1997 1996
------------------------ ------------------------
ACCUMULATED ACCUMULATED
COST AMORTIZATION COST AMORTIZATION
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
$ $ $ $
Furniture and fixtures.................................... 101,562 40,196 95,444 25,522
Leaseholds................................................ 52,004 15,042 50,470 31,528
Telephone system.......................................... 105,297 44,836 100,731 398
Automobiles............................................... 55,489 36,028 55,489 20,352
Computers................................................. 298,197 149,749 271,439 100,640
Software.................................................. 38,234 16,469 14,766 9,640
---------- ------------ ---------- ------------
650,783 302,320 588,339 188,080
Accumulated amortization.................................. 302,320 188,080
---------- ----------
348,463 400,259
---------- ----------
---------- ----------
</TABLE>
5. BANK LOAN
The bank loan to Merlin Sierra Inc. bears interest at 16% with monthly
principal repayments of $12,148 to June, 1997. The loan is collateralized by a
commercial security agreement on all assets of Merlin Sierra Inc. and personal
guarantees of certain officers of Merlin Sierra Inc.
6. RELATED COMPANY INFORMATION
The companies are related by common control.
F-30
<PAGE>
FIFTH DIMENSION COMMUNICATIONS (BARBADOS) INC.
1043133 ONTARIO INC., MERLIN SIERRA INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 1997
6. RELATED COMPANY INFORMATION (CONTINUED)
(A) ACCOUNTS RECEIVABLE AND ACCOUNTS PAYABLE
Accounts receivable include amounts due from related companies totalling
$1,492,275 (1996 $1,764,866). Accounts payable include amounts due to related
companies totalling $471,282 (1996 $860,703).
The significant balances receivable from or (payable to) related companies,
each of which are related by being under common control, are as follows:
<TABLE>
<CAPTION>
1997 1996
---------- ----------
<S> <C> <C>
$ $
Fifth Dimension Communications (1996) Corporation......................................... (171,971) (698,847)
Fifth Dimension Communications Holdings, Inc. ............................................ 461,599 45,880
Fifth Dimension Capital Corporation....................................................... 929,854 577,517
Fifth Dimension Communications Atlantic Inc. ............................................. -- 132,609
Fifth Dimension SatCom Inc. .............................................................. (86,408) 31,408
Turks & Caicos Island Wireless Television Ltd. ........................................... (150,000) --
Fifth Dimension Technologies Inc. ........................................................ 60,066 (102,772)
FirstLink Communications Inc. ............................................................ 14,011 164,671
Teletheatre Plus Inc. note receivable..................................................... -- 718,432
</TABLE>
(B) TRANSACTIONS
Related party transactions are measured at exchange values which correspond
to the amount established and agreed upon by both parties.
The significant transactions entered into by 1043133 Ontario Inc. with
related companies are as follows:
Rented offices from Fifth Dimension Capital Corporation for $47,826 (1996
$47,826).
Rented satellite uplink from 841161 Ontario Limited for $62,000 (1996
$62,000) and space for broadcasting facilities for $41,526 (1996
$18,141). Prepaid expenses include prepaid rent to 841161 Ontario Limited
of $118,000 (1996 Nil).
Purchased accounting and administrative services from Fifth Dimension
Capital Corporation for $166,423 (1996 $142,140).
Purchased engineering services from Fifth Dimension SatCom Inc. for
$365,836 (1996 $374,177).
Purchased full period satellite space segment from Fifth Dimension
Communications (1996) Corporation for Nil (1996 $377,570) and occasional
use satellite space segment for $53,934 (1996 Nil) and rented
broadcasting equipment for $113,000 (1996 $117,174). In addition, a
management fee of $81,500 was charged to Fifth Dimension Communications
(1996) Corporation in 1996. No amount was required to be charged in 1997.
Purchased subscriber activation services from FirstLink Communications
Inc. for $224,275 (1996 $181,017).
F-31
<PAGE>
FIFTH DIMENSION COMMUNICATIONS (BARBADOS) INC.
1043133 ONTARIO INC., MERLIN SIERRA INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 1997
6. RELATED COMPANY INFORMATION (CONTINUED)
Wrote down amounts receivable from NA Microsat Corporation of $20,141
(1996 $91,217) to their estimated realizable value.
Transferred equipment to Fifth Dimension Communications (1996)
Corporation for $564,161 (1996 Nil).
Rented a hospitality suite from Fifth Dimension Technologies Inc. for
$75,938 (1996 $18,750) and purchased computer equipment for $30,605 (1996
$38,287).
The significant transactions entered into by Merlin Sierra Inc. with related
companies are as follows:
Purchase of satellite space segment from Fifth Dimension Communications
(1996) Corporation for $1,188,000 (1996 $132,000).
The significant transactions entered into by Fifth Dimension Communications
(Barbados) Inc. with related companies are as follows:
Sold to Fifth Dimension Atlantic Communications Inc. space segment for
$76,500 (1996 $102,000).
Rented broadcasting equipment for $25,700 (1996 Nil) and purchased
occasional use satellite space segment for $80,900 (1996 Nil) from Fifth
Dimension Communications (1996) Corporation.
Purchased subscriber activation services from FirstLink Communications
Inc. for $34,600 (1996 Nil).
Purchased engineering services from Fifth Dimension SatCom Inc. for
$92,000 (1996 Nil).
(C) COMMITMENTS
Commitments by 1043133 Ontario Inc. to related companies are as follows:
The minimum amounts of future lease payments to 841161 Ontario Limited
for office accommodation are $40,000 for each of 1998 and 1999.
The minimum amounts of future lease payments to 841161 Ontario Limited
for a satellite uplink facility are $62,000 for 1998 and $31,000 for
1999.
The minimum amounts of future lease payments to Fifth Dimension Capital
Corporation for office facilities are $48,000 for 1998 and 1999.
A commitment to purchase full period satellite space segment from Fifth
Dimension Communications (1996) Corporation for $770,000.
The minimum amount of future lease payments to Fifth Dimension
Communications (1996) Corporation are $128,070 for 1998.
A commitment to Fifth Dimension SatCom Inc. for the purchase of
engineering services in amounts which are based on usage.
F-32
<PAGE>
FIFTH DIMENSION COMMUNICATIONS (BARBADOS) INC.
1043133 ONTARIO INC., MERLIN SIERRA INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 1997
7. THIRD PARTY COMMITMENTS AND CONTINGENT LIABILITIES
Commitments of Fifth Dimension Communications (Barbados) Inc.
The Company will be committed as of July 1, 1997 for purchases of full
period space segment on three additional satellite transponders totalling
$22.5 million during the estimated five year life of the contracts.
The Company has committed as of March 31, 1997 to purchase full period
space segment totalling $5.4 million to December 31, 1999.
Fifth Dimension Communications (Barbados) Inc. and 1043133 Ontario Inc. have
given a guarantee to the vendor in regard to the unpaid purchase price for the
acquisition of the business of Merlin Sierra Inc. for a total amount of
$850,000. The balance owing as at March 31, 1997 was $643,830 (1996 Nil).
1043133 Ontario Inc. has a commitment to purchase promotional video services
of $217,000 in each of 1998 and 1999.
8. CAPITAL STOCK
<TABLE>
<CAPTION>
1997 1996
----- -----
<S> <C> <C>
$ $
AUTHORIZED
Fifth Dimension Communications (Barbados) Inc. is authorized to issue an unlimited number of common
shares and redeemable non-voting preference shares. Non-cumulative dividends on both classes of
shares may be declared at the discretion of the directors.
1043133 Ontario Inc. is authorized to issue an unlimited number of common shares
Merlin Sierra Inc. is authorized to issue 100 common shares.
ISSUED
Fifth Dimension Communications (Barbados) Inc.
100 Common shares................................................................................. 100 100
1043133 Ontario Inc.
100 Common shares................................................................................. 72 72
Merlin Sierra Inc.
100 Common shares................................................................................. 100 100
--- ---
272 272
--- ---
--- ---
</TABLE>
9. FAIR MARKET VALUE
The carrying amounts of the current assets and liabilities, restricted
investments and investment in shares approximate fair market values.
10. INCOME TAXES
The Companies have accumulated timing differences relating to a write down
of accounts receivable which, if recognized, would have resulted in a deferred
income tax debit of $365,000 (1996 $351,000). A valuation allowance for deferred
tax assets was booked for $365,000 (1996 $351,000).
F-33
<PAGE>
FIFTH DIMENSION COMMUNICATIONS (BARBADOS) INC.
1043133 ONTARIO INC., MERLIN SIERRA INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 1997
11. NET CHANGE IN WORKING CAPITAL
<TABLE>
<CAPTION>
THREE MONTHS ENDED YEAR ENDED
----------------------- ----------------------
JUNE 30, JUNE 30, MARCH 31, MARCH 31,
1997 1996 1997 1996
----------- ---------- ---------- ----------
(UNAUDITED)
<S> <C> <C> <C> <C>
Cash (used in) provided by:
Accounts receivable............................................. $ 30,608 (748,169) (961,844) (233,525)
Inventory....................................................... -- (22,311) 11,409 (6,545)
Transponder deposits............................................ -- (144,609) (50,000) (150,000)
Prepaid expenses................................................ (8,774) 246,065 340,873 10,509
Accounts payable................................................ (578,629) 1,166,768 104,091 459,304
Income taxes payable............................................ 20,000 -- (26,662) (186,023)
Deferred subscription revenue................................... 73,291 (750,998) (354,527) (714,901)
----------- ---------- ---------- ----------
136,496 (253,254) (936,660) (821,184)
----------- ---------- ---------- ----------
----------- ---------- ---------- ----------
</TABLE>
F-34
<PAGE>
FIFTH DIMENSION COMMUNICATIONS (BARBADOS) INC.
1043133 ONTARIO INC., MERLIN SIERRA INC.
COMBINED SCHEDULE OF EXPENSES
<TABLE>
<CAPTION>
YEAR ENDED MARCH 31,
----------------------
1997 1996
---------- ----------
$ $
(U.S. DOLLARS)
<S> <C> <C>
Advertising............................................................................ 360,304 425,996
Amortization of capital assets......................................................... 120,347 144,398
Bank and credit card charges........................................................... 209,824 115,061
Bad debts.............................................................................. 68,000 162,095
Business development................................................................... 3,361 15,369
Commissions............................................................................ 363,457 375,924
Computer............................................................................... 9,970 25,809
Consulting fees........................................................................ 11,718 8,166
Employee benefits...................................................................... 104,959 114,100
Interest............................................................................... 158,749 161,305
Insurance.............................................................................. 10,186 12,133
Maintenance............................................................................ 24,868 28,381
Office................................................................................. 265,761 233,149
Professional fees...................................................................... 346,329 230,752
Rent................................................................................... 202,171 96,890
Salaries............................................................................... 1,545,755 1,282,237
Sales expense.......................................................................... 2,500 556
Security............................................................................... 4,655 945
Taxes other than income................................................................ 4,053 604
Travel................................................................................. 164,136 153,260
Telephone.............................................................................. 254,398 289,436
Utilities.............................................................................. 28,643 22,087
---------- ----------
4,264,144 3,898,653
---------- ----------
---------- ----------
</TABLE>
F-35
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NO DEALER, SALESMAN OR OTHER PERSON HAS BEEN AUTHORIZED TO GIVE ANY
INFORMATION OR TO MAKE ANY REPRESENTATIONS OTHER THAN CONTAINED IN THIS
PROSPECTUS IN CONNECTION WITH THE OFFERING DESCRIBED HEREIN, AND IF GIVEN OR
MADE, SUCH INFORMATION OR REPRESENTATIONS MUST NOT BE RELIED UPON AS HAVING BEEN
AUTHORIZED BY THE COMPANY. THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFER TO SELL,
OR THE SOLICITATION OF AN OFFER TO BUY, THE SECURITIES OFFERED HEREBY TO ANY
PERSON IN ANY STATE OR OTHER JURISDICTION IN WHICH SUCH OFFER OR SOLICITATION IS
UNLAWFUL. NEITHER THE DELIVERY OF THIS PROSPECTUS NOR ANY SALE HEREUNDER SHALL,
UNDER ANY CIRCUMSTANCES, CREATE ANY IMPLICATION THAT THERE HAS BEEN NO CHANGE IN
THE AFFAIRS OF THE COMPANY SINCE THE DATE HEREOF.
------------------------
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
Prospectus Summary........................................................ 3
Risk Factors.............................................................. 8
Use of Proceeds........................................................... 20
Dividend Policy........................................................... 21
Dilution.................................................................. 21
Capitalization............................................................ 23
Management's Discussion and Analysis of Financial Condition and Results of
Operations.............................................................. 24
Business.................................................................. 30
Management................................................................ 47
Certain Transactions...................................................... 50
Principal Shareholders.................................................... 51
Description of Securities................................................. 52
Underwriting.............................................................. 54
Legal Matters............................................................. 55
Experts................................................................... 55
Available Information..................................................... 56
Index to Financial Statements............................................. F-1
</TABLE>
UNTIL , 1997 (25 DAYS AFTER THE DATE OF THIS PROSPECTUS), ALL
DEALERS EFFECTING TRANSACTIONS IN THE REGISTERED SECURITIES, WHETHER OR NOT
PARTICIPATING IN THIS DISTRIBUTION, MAY BE REQUIRED TO DELIVER A PROSPECTUS.
THIS IS IN ADDITION TO TO OBLIGATION OF DEALERS TO DELIVER A PROSPECTUS WHEN
ACTING AS UNDERWRITERS AND WITH RESPECT TO THEIR UNSOLD ALLOTMENTS OR
SUBSCRIPTIONS.
[LOGO]
SHARES
NEW FRONTIER MEDIA, INC.
---------------------
PROSPECTUS
---------------------
CENTEX SECURITIES
INCORPORATED
, 1997
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<PAGE>
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
ITEM 24. INDEMNIFICATION OF DIRECTORS AND OFFICERS.
(i) Article 3, Section 3.17 of the Company's First Amended and Restated
Bylaws provides as follows:
"SECTION 3.17
LIMITATIONS ON LIABILITY
To the fullest extent permitted by the Colorado Business Corporation Act as
the same exists or may hereafter be amended, a director of the corporation shall
not be liable to the corporation or its stockholders for monetary damages for
any action taken or any failure to take any action as a director.
Notwithstanding the foregoing, a director will have liability for monetary
damages for a breach or failure which involves: (i) a violation of criminal law;
(ii) a transaction from which the director derived an improper personal benefit,
either directly or indirectly; (iii) destributions in violation of the Colorado
Business Corporation Act or the Articles of the corporation (but only to the
extent provided by law); (iv) willful misconduct or disregard for the best
interests of the corporation concerning any acts or omissions concerning any
proceeding other than in the right of the corporation or a shareholder; or, (v)
reckless, malicious or wanton acts or omissions concerning any proceeding other
than in the right of the corporation or of a shareholder. No repeal, amendment
or modiffication of this Article, whether direct or indirect, shall eliminate or
reduce its effect with respect to any act or omission of a director of the
corporation occurring prior to such repeal, amendment or modification."
(ii) Article 3, Section 3.18 of the Company's First Amended and Restated
Bylaws provides as follows:
"SECTION 3.18
INDEMNIFICATION
Subject to and in accordance with the Colorado Business Corporation Act, and
except as may be expressly limited by the Articles of Incorporation and any
amendments thereto, the corporation shall indemnify any person:
(i) made a party to any proceeding (other than an action by, or in the
right of, the corporation) by reason of the fact that he is or was a
director, officer, employee or agent of the corporation, or is or was
serving at the corporation's request, as a director, officer, employee or
agent of another corporation, or other enterprise; or,
(ii) who was or is a party to any proceeding by or in the right of the
corporation, to procure a judgment in its favor by reason of the fact that
his is or was a director, officer, employee, or agent of the corporation or
is or was serving at the request of the corporation as a director, officer,
employee, or agent of another corporation, partnership, joint venture,
trust, or other enterprise. This indemnification shall be mandatory in all
circumstances in which indemnification is permitted by law.
The corporation may maintain indemnification insurance regardless of its
power to indemnify under the Colorado Business Corporation Act.
The corporation may make any other or further indemnification or advancement
of expenses of any of the directors, officers, employees or agents under any
bylaw, agreement, vote of shareholders or disinteredsted directors or otherwise,
both as to action in his or her official capacity and to action in another
capacity while holding such office, except an indemnification against material
criminal or unlawful misconduct as set forth by statute, or as to any
transaction wherein the director derived an improper personal benefit.
II-1
<PAGE>
Except to the extent reimbursement shall be mandatory in accordance
herewith, the corporation shall have the right to refuse indemnification, in
whole or in part, in any instance in which the person to whom indemnification
would otherwise have been applicable, if he or she unreasonable refused to
permit the corporation, at its own expense and through counsel of its own
choosing, to defend him or her in the action, or unreasonably refused to
cooperate in the defense of such action."
ITEM 25. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION.(1)
<TABLE>
<S> <C>
SEC Registration Fee............................................... 3,512
NASD Filing Fee.................................................... 1,466
Blue Sky Filing Fees............................................... 10,000
Blue Sky Legal Fees................................................ 20,000
Printing Expenses.................................................. 80,000
Legal Fees and Expenses............................................ 75,000
Accounting Fees.................................................... 30,000
Transfer Agent..................................................... 3,000
NASDAQ SmallCap Application Fee.................................... 5,000
Miscellaneous Expenses............................................. 22,022
-----------
TOTAL............................................................ 250,000(1)
-----------
-----------
</TABLE>
- ------------------------
(1) Does not include the Managing Underwriter's commission and nonaccountable
expenses of $1,023,750 ($1,177,313 if the Overallotment Option is
exercised). All expenses, except the SEC registration fee, the NASD filing
fee, and the NASDAQ SmallCap application fee are estimated.
ITEM 26. RECENT SALES OF UNREGISTERED SECURITIES.
During the last three years, the Company has sold the following shares of
its Common Stock which were not registered under the 1933 Act, as amended:
(i) Between March 1, 1996 and June 30, 1996, the Company sold 195,200
Units in an exempt private placement to accredited investors only. Each Unit
consisted of one share of Common Stock and one Warrant (the "Unit Warrant")
to purchase an additional share of Common Stock. On or about December 15,
1996, the Company's Board of Directors extended the exercise date for the
Unit Warrant to December 31, 1997. The exercise price for each Unit Warrant
is $5.50.
(ii) From time to time, the Company has issued a total of 146,666
non-qualified stock options to employees. Each option allows the holder to
purchase one share of the Company's Common Stock, at an exercise price of
$6.00 per share. The options are exercisable through December 31, 1997.
(iii) In February and March, 1997, the Company issued a total of 5,000
shares of its Preferred Series B stock to one accredited investor for total
consideration of $20,000. In July, 1997, the investor converted his
Preferred Series B shares into 20,000 shares of the Company's restricted
Common Stock, pursuant to the Statement of Series B Preferred Shares.
(iv) On May 31, 1997, the Company issued 2,511 shares of restricted
Common Stock to Krausman, L.L.C. for services valued at $7,533.12.
With respect to the sales made, the Company relied on Sections 4(2) and 4(6)
of the Securities Act of 1933, as amended (the "1933 Act"). The Company employed
no advertising or general solicitation in offering the securities. The
securities were offered to a limited number of persons, all of whom were
business associates of the Company or its executive officers and directors, and
the tranfer thereof was appropriately restricted by the Company and its transfer
agent. All shareholders were accredited investors as that term is defined in
Rule 501 of Regulation D under the 1933 Act, and were capable of analyzing the
II-2
<PAGE>
merits and risks of their investment and acknowledged in writing that they were
acquiring the securities for investment purposes only, and not with a view
toward distribution or resale. Each investor represented in writing that he or
she understood the speculative nature of his or her investment.
ITEM 27. EXHIBITS.
<TABLE>
<CAPTION>
EXHIBIT
NO. TITLE
- --------- ---------------------------------------------------------------------------------------------
<C> <S>
1.01+ Form of Underwriting Agreement
1.02+ Form of Agreement Among Underwriters
1.03+ Form of Selected Dealer Agreement
1.04+ Form of Underwriter's Warrant
1.05+ Form of Lock-up Agreement
3.01* Articles of Incorporation of Company, with Amendment
3.02* Articles of Incorporation--Inroads
3.03* Articles of Incorporation--David
3.04* Articles of Incorporation--In-Sight
3.05* Articles of Incorporation--CSB
3.06* First Amended Bylaws of Company
4.01+ Form of Common Stock Certificate
5.01* Opinion of Krausman, L.L.C., regarding legality of the Common Stock (includes consent)
10.01+* Asset Purchase Agreement Among the Company, CSB, Fifth Dimension Communications (Barbados)
Inc., and Merlin Sierra, Inc. (Agreement previously filed; Agreement and Schedules thereto
filed herewith)
10.02+* Asset Purchase Agreement Among the Company, CSB, and 1043133 Ontario Inc. (Agreement
previously filed; Agreement and Schedules thereto filed herewith)
10.03+* Asset Purchase Agreement Among the Company, CSB, and 1248663 Ontario Inc. (Agreement
previously filed; Agreement and Schedules thereto filed herewith)
11.01* Computation of Earnings Per Share
23.01* Consent of Spicer, Jeffries & Co.
23.02* Consent of Ernst & Young
23.03* Consent of Krausman, L.L.C. (See 5.01, above)
23.04* Consent of Combs & Associates
27.01+ Financial Data Schedule
</TABLE>
- ------------------------
* Filed herewith.
+ Previously filed.
ITEM 28. UNDERTAKINGS.
The Company hereby undertakes:
(a) That insofar as indemnification for liabilities arising under the 1933
Act may be permitted to directors, officers and controlling persons of the
Company, the Company has been advised that in the
II-3
<PAGE>
opinion of the Securities and Exchange Commission, such indemnification is
against public policy as expressed in the 1933 Act and is, therefore,
unenforceable. In the event that a claim for indemnification against such
liabilities (other than the payment by the Company of expenses incurred or paid
by a director, officer or controlling person of the Company in the successful
defense of any action, suit or proceeding) is asserted by such director, officer
or controlling person in connection with the securities being registered, the
Registrant will, unless in the opinion of its counsel the matter has been
settled by controlling precedent, submit to a court of approprate jurisdiction
the question of whether such indemnification by it is against public policy as
expressed in the 1933 Act, and will be governed by the final adjudication of
such issue.
(b) That, subject to the terms and conditions of Section 13(a) of the
Securities Exchange Act of 1934, it will file with the Securities and Exchange
Commission such supplementary and periodic information, documents and reports as
may be prescribed by any rule or regulation of the Commission heretofore or
hereafter duly adopted pursuant to authority conferred in that section.
(c) That any post-effective amendment filed will comply with the applicable
form, rules and regulations of the Commission in effect at the time such
post-effective amendment is filed.
(d) To file, during any period in which offers or sales are being made, a
post-effective amendment to this registration statement:
(i) To include any prospectus required by section 10(a)(3) of the 1933
Act;
(ii) To reflect in the prospectus any facts or events arising after the
effective date of the registration statement (or the most recent
post-effective amendment thereof) which, individually or in the aggregate,
represent a fundamental change in the information set forth in the
registration statement;
(iii) To include any material information with respect to the plan of
distribution not previously disclosed in the registration statement or any
material change to such information in the registration statement;
(e) That, for the purpose of determining any liability under the 1933 Act,
each such post-effective amendment shall be deemed to be a new registration
statement relating to the securities offered therein, and the offering of such
securities at that time shall be deemed to be the initial bona fide offering
thereof.
(f) To remove from registration by means of a post-effective amendment any
of the securities being registered which remain unsold at the termination of
this offering.
(g) To provide to the Managing Underwriter at the closing specified in the
Underwriting Agreement certificates in such denominations and registered in such
names as required by the Underwriter to permit prompt delivery to each
purchaser.
II-4
<PAGE>
SIGNATURES
Pursuant to the requirements of the 1933 Act, as amended, the Company
certifies that it has reasonable grounds to believe that it meets the
requirements of filing on Form SB-2 and has caused this Amendment No. 1 to the
Registration Statement on Form SB-2 to be signed on its behalf by the
undersigned, thereunto duly authorized, in Boulder, Colorado on October ,
1997.
<TABLE>
<S> <C> <C>
NEW FRONTIER MEDIA, INC.
By:
/s/ MARK H. KRELOFF
---------------------------------------------
Mark H. Kreloff
PRESIDENT
</TABLE>
Pursuant to the requirements of the 1933 Act, as amended, this Registration
Statement has been signed below by the following persons on the dates indicated.
SIGNATURE TITLE DATE
- ------------------------------ -------------------------- -------------------
/s/ MARK H. KRELOFF
- ------------------------------ Chairman, Chief Executive October , 1997
Mark H. Kreloff Officer, President
/s/ MICHAEL WEINER Executive Vice President,
- ------------------------------ Secretary, Treasurer and October , 1997
Michael Weiner Director
/s/ SCOTT WUSSOW Chief Financial Officer
- ------------------------------ (Principal Accounting October , 1997
Scott Wussow Officer)
/s/ CLIVE NG
- ------------------------------ Director October , 1997
Clive Ng
/s/ KOUNG Y. WONG
- ------------------------------ Director October , 1997
Koung Y. Wong
II-5
<PAGE>
EXHIBIT INDEX
<TABLE>
<CAPTION>
EXHIBIT PAGE
NO. TITLE NO.
- --------- ----------------------------------------------------------------------------------------------- ---------
<S> <C> <C>
1.01+ Form of Underwriting Agreement
1.02+ Form of Agreement Among Underwriters
1.03+ Form of Selected Dealer Agreement
1.04+ Form of Underwriter's Warrant
1.05+ Form of Lock-up Agreement
3.01* Articles of Incorporation of Company
3.02* Articles of Incorporation--Inroads
3.03* Articles of Incorporation--David
3.04* Articles of Incorporation--In-Sight
3.05* Articles of Incorporation--CSB
3.06* First Amended Bylaws of Company
4.01+ Form of Common Stock Certificate
5.01* Opinion of Krausman, L.L.C., regarding legality of the Common Stock (incudes consent)
10.01* Asset Purchase Agreement Among the Company, CSB, Fifth Dimension Communications (Barbados)
Inc., and Merlin Sierra, Inc.
10.02* Asset Purchase Agreement Among the Company, CSB, and 1043133 Ontario Inc.
10.03* Asset Purchase Agreement Among the Company, CSB, and 1248663 Ontario Inc.
11.01* Computation of Earnings Per Share
23.01* Consent of Spicer, Jeffries & Co.
23.02* Consent of Ernst & Young
23.03* Consent of Krausman, L.L.C. (See 5.01, above)
23.04* Consent of Combs & Associates
27.01+ Financial Data Schedule
</TABLE>
- ------------------------
* Filed Herewith.
+ Previously Filed.
<PAGE>
ARTICLES OF INCORPORATION
OF
NEW FRONTIER MEDIA, INC.
The undersigned, acting as the incorporator of a corporation to be
incorporated under the laws of the State of Colorado, adopts these Articles
of Incorporation.
ARTICLE I.
NAME
The name of the Corporation is New Frontier Media, Inc.
ARTICLE II.
AUTHORIZED CAPITAL
The Corporation shall have authority to issue 10,000,000 shares of
common stock which shall be without par value per share and which shall have
unlimited voting rights and shall be entitled to receive the net assets of
the Corporation upon dissolution.
ARTICLE III.
AGENT--OFFICES
A. INITIAL REGISTERED AGENT. The street address of the initial
registered office of the Corporation is 1535 Grant Street, Suite 140, Denver,
Colorado 80203, and the name of its initial registered agent at that address
is Search Company International. The written consent of the initial
registered agent to the appointment as such is stated below.
B. INITIAL PRINCIPAL OFFICE. The address of the Corporation's initial
principal office is 11050 Walnut Street, Suite 301, Boulder, Colorado 80302.
ARTICLE IV.
INCORPORATOR
The name and address of the incorporator is Melody Egge, an individual,
4601 DTC Blvd., Suite 1050, Denver, Colorado 80237.
ARTICLE V.
PURPOSE--POWERS
A. PURPOSE. The purpose for which the Corporation is organized is to
transact any lawful business or businesses.
<PAGE>
B. POWERS. The Corporation shall have and may exercise all powers and
rights granted or otherwise provided, including, but not limited to, all
powers necessary or convenient to effect the Corporation's purpose.
ARTICLE VI.
PREEMPTIVE RIGHTS
No shareholder of the Corporation shall be entitled as of right to
acquire additional unissued shares of the Corporation or securities
convertible into such shares or carrying a right to subscribe for or to
acquire such shares.
ARTICLE VII.
BOARD OF DIRECTORS
The corporate powers shall be exercised by or under the authority of,
and the business and affairs of the Corporation shall be managed under the
direction of, a board of directors. The directors shall be elected at each
annual meeting of the shareholders, provided that vacancies may be filled by
election by the remaining directors, though less than a quorum, or by the
shareholders at a special meeting called for that purpose. Despite the
expiration of his or her term, a director continues to serve until his or her
successor is elected and qualifies.
The names and addresses of the members of the initial board of directors
are as follows:
NAME ADDRESS
Mark Kreloff 1050 Walnut Street, Suite 301
Boulder, Colorado 80302
Michael Weiner 1050 Walnut Street, Suite 301
Boulder, Colorado 80302
Stephen Cherner 1050 Walnut Street, Suite 301
Boulder, Colorado 80302
ARTICLE VIII.
CUMULATIVE VOTING
Cumulative voting shall not be permitted in the election of directors.
2
<PAGE>
ARTICLE IX.
LIMITATION ON DIRECTOR LIABILITY
There shall be no personal liability, either direct or indirect, of any
director of the Corporation to the Corporation or to its shareholders for
monetary damages for any breach or breaches of fiduciary duty as a director;
except that this provision shall not eliminate the liability of a director to
the Corporation or to its shareholders for monetary damages for any breach,
act, omission or transaction as to which the Colorado Business Corporation
Act or any successor law (as in effect from time to time) prohibits expressly
the elimination of liability. This provision shall not eliminate the
liability of a director to the Corporation or to its shareholders for monetary
damages for any act or omission occurring prior to the date when this
provision becomes effective (which is the date of the Corporation's
incorporation). This provision shall not limit the rights of directors of the
Corporation for indemnification or other assistance from the Corporation. Any
repeal or modification of the foregoing provisions of this Article shall not
affect adversely any elimination of liability, right or protection of a
director of the Corporation with respect to any breach, act, omission or
transaction of such director occurring prior to the time of such repeal or
modification.
ARTICLE X.
INDEMNIFICATION
The Corporation may indemnify, to the fullest extent permitted by
applicable law in effect from time to time, any person, and the estate and
personal representative of any such person, against any liability and expense
(including attorneys' fees) incurred by reason of the fact that such person
is or was a director, officer, employee, fiduciary, or agent of the
Corporation or, while serving as a director, officer, fiduciary, or agent of
the Corporation, is or was serving at the request of the Corporation as a
director, officer, partner, trustee, employee, fiduciary, or agent of, or in
any similar managerial or fiduciary position of, another domestic or foreign
corporation or other individual or entity or of an employee benefit plan to
the extent and in the manner provided in any bylaw, resolution of the
directors, resolution of the shareholders, contract, or otherwise, so long as
such indemnification is legally permissible.
ARTICLE XI.
QUORUM AND VOTING REQUIREMENTS FOR SHAREHOLDERS' MEETINGS
A. QUORUM. A majority of the outstanding shares shall constitute a quorum
at any meeting of shareholders.
B. VOTING. Except as is otherwise required by the Colorado Business
Corporation Act or any successor law (as in effect from time to time), action
on a matter other than the election of directors is approved if a quorum
exists and if the votes cast favoring the action exceed the votes cast
opposing the action.
3
<PAGE>
IN WITNESS WHEREOF, the undersigned incorporator who is a natural person
over the age of eighteen years has executed these Articles of Incorporation
on July 26, 1995.
/s/ MELODY EGGE
---------------------------------
Melody Egge, Incorporator
4
<PAGE>
CONSENT OF REGISTERED AGENT
The undersigned initial registered agent of NEW FRONTIER MEDIA, INC. does
hereby confirm the address for such agent and consent to such registered
agent's appointment as such registered agent, all as set forth in Article
III, above, as provided in Section 7-102-102(1)(1) of the Colorado Business
Corporation Act.
Search Company International
By: /s/ AUDITHA OREMACHER
---------------------------
Auditha Oremacher
5
<PAGE>
ARTICLES OF AMENDMENT
TO THE
ARTICLES OF INCORPORATION
Pursuant to Section 7-110-103 of the Colorado Business Corporation Act,
the shareholders and board of directors of National Securities Holding
Corporation, a Colorado corporation ("NSHC" or the "Corporation"), hereby
adopt the following amendments to the Articles of Incorporation of NSHC:
1. The name of the Corporation is hereby changed to:
New Frontier Media, Inc.
This amendment to the Corporation's Articles of Incorporation was adopted
by the NSHC Board of Directors on August 18, 1995, and, upon recommendation of
the NSHC Board of Directors, by vote of the NSHC shareholders on September 15,
1995.
2. The Corporation effected a 1-for-2, 034.66 reverse stock split, whereby
every 2,034.66 shares of issued and outstanding NSHC common stock were
converted into 1 new share of NSHC common stock.
This amendment to the Corporation's Articles of Incorporation was adopted
by the NSHC Board of Directors on August 18, 1995, and, upon recommendation of
the NSHC Board of Directors, by vote of the NSHC shareholders on September
15, 1995.
3. The Corporation effected a decrease in the number of total authorized
shares of NSHC as follows:
Decrease in the number of common shares authorized, from 1,000,000,000
common shares to 50,000,000 common shares.
Decrease in the number of preferred shares authorized, from 40,000,000
preferred shares to 5,000,000 preferred shares.
This amendment to the Corporation's Articles of Incorporation was adopted
by the NSHC Board of Directors on August 18, 1995, and, upon recommendation
of the NSHC Board of Directors, by vote of the NSHC shareholders on September
15, 1995.
4. The quorum requirement for shareholders' meetings was reduced to
one-third of the issued and outstanding securities of the Corporation
entitled to vote on the matter, and the voting requirement o approve any
matter at a meeting of shareholders was reduced to a majority of shares
represented at such meeting.
This amendment to the Corporation's Articles of Incorporation was adopted
by the NSHC Board of Directors on August 18, 1995, and, upon recommendation
of the NSHC Board of Directors, by vote of the NSHC shareholders on September
15, 1995.
<PAGE>
5. The Corporation's registered office and registered agent were changed
to:
1050 Walnut Street, Suite 301
Boulder, Colorado 80302
Registered Agent: Mr. Mark Kreloff
This amendment to the Corporation's Articles of Incorporation was adopted
by the Corporation's Board of Directors on September 15, 1995. Mr. Kreloff's
signature below constitutes his assent to act as the Registered Agent for the
Corporation.
NEW FRONTIER MEDIA, INC. (formerly
National Securities Holding Corporation):
By: /s/ MARK H. KRELOFF
---------------------------------------
Mark H. Kreloff, President
By: /s/ MICHAEL WEINER
---------------------------------------
Michael Weiner, Secretary
<PAGE>
ARTICLES OF INCORPORATION
OF
BOULDER INTERACTIVE GROUP, INC.
The undersigned natural person, being more than eighteen years of age,
hereby establishes a corporation pursuant to the statute of Colorado, and
adopts the following Articles of Incorporation:
1. NAME. The name of the corporation is Boulder Interactive Group, Inc.
2. DURATION. The corporation shall have perpetual existence.
3. PURPOSE. The nature, objects and purposes of the business to be
transacted shall be to transact all lawful business for which corporaitons
may be incorporated pursuant to the Colorado Corporation Code.
4. AUTHORIZED CAPITAL. The aggregate number of shares which the
corporation shall have authority to issue is 100,000 shares of common stock,
each having no par value.
5. NO CUMULATIVE VOTING. Each shareholder of record shall have one vote
for each share of stock standing in his name on the books of the corporation
and entitled to vote. Cumulative voting shall not be allowed in the election
of directors or for any other purpose.
6. QUORUM. At all meetings of shareholders, a majority of the shares
entitled to vote at such meeting, represented in person or by proxy, shall
constitute a quorum.
7. SHAREHOLDER VOTE. Whenever the Colorado Corporation Code requires the
vote or concurrence of the holders of two-thirds of the outstanding shares, or
two-thirds of the shares entitled to vote thereon, or two-thirds of any class
or series, such requirement is hereby reduced so as to require the vote or
concurrence only of a simple majority thereof.
3. NO PREEMPTIVE RIGHTS. No shareholder of the corporation shall have any
preemptive or other right to subscribe for or otherwise acquire any
additional unissued or treasury shares of stock, or other securities of any
class, or rights, warrants or actions to purchase stock or scrip, or
securities of any kind convertible into stock or carrying stock purchase
warrants or savings.
9. NUMBER OF DIRECTORS. The number of directors shall from
1
<PAGE>
time to time be fixed by the bylaws, but in no event shall the number of
directors be less than the number of shareholders. Four directors shall
constitute the initial board, whose names and addresses are as follows:
Name Address
---- -------
Stephen Cherner 1035 Pearl St., Suite 402
Boulder, CO 80302
Michael Weiner 1035 Pearl St., Suite 402
Boulder, CO 80302
Paul Haigney 1035 Pearl St., Suite 402
Boulder, CO 80302
Mark Kreloff 1035 Pearl St., Suite 402
Boulder, CO 80302
10. REGISTERED OFFICE AND AGENT. The address of the initial registered
office of the corporation is 255 Canyon Blvd., Suite 100, Boulder, Colorado.
The name of its initial registered agent at such address is Douglas C.
Thorburn.
11. DIRECTOR CONFLICTS. The following provisions are inserted for the
management of the business and for the conduct of the affairs of the
corporation and the same are in furtherance of and not in limitation
of the powers conferred by law:
No contract or transaction between the corporation and one or more of its
directors, or between the corporation and any other corporation, partnership,
association, or other organization in which one or more of its directors or
officers are directors or officers or have a financial interest, shall be
void or voidable solely for that reason or solely because the director or
officer is present at or participates in the meeting of the board or
committee thereof which authorizes, approves, or ratifies the contract or
transacton or solely because his or their votes are counted for such purpose
if:
a. The material facts as to his relationship or interest and as to the
contract or transaction are disclosed or are known to the board of directors
or the committee, and the board or committee in good faith authorizes,
approves, or ratifies the contract or transaction by the affirmative vote of a
majority of the disinterested directors even though the disinterested
directors are less than a quorum; or
b. The material facts as to his relationship or interest and as to the
contract or transaction are disclosed or are known to the shareholders
entitled to vote thereon, and the contract or
2
<PAGE>
transaction is specifically authorized, approved, or ratified in good faith
by vote of the shareholders; or
c. The contract or transaction was fair as to the corporation.
d. Interested directors may be counted in determining the presence of a
quorum at a meeting of the board of directors or of a committee which
authorizes, approves, or ratifies the contract or transaction.
12. LIMITATION OF DIRECTOR'S LIABILITY. To the fullest extent permitted by
the Colorado Corporation Code, as the same exists or may hereafter by
amended, a director of this corporation shall not be liable to the
corporation or its shareholders for monetary damages for breach of fiduciary
duty as a director.
13. INDEMNIFICATION. The corporation shall, to the full extent permitted
by Colorado law, indemnify any person who was or is a party or is threatened
to be made a party to any threatened, pending or completed action, suit or
proceeding, whether civil, criminal, administrative or investigative, and
whether formal or informal, by reason of the fact that he is or was a
director or officer of the corporation. The right of indemnification shall
inure to the benefit of the heirs, executors, administrators and personal
representatives of the director or officer.
14. INCORPORATOR. The name and address of the incorporator is:
Name Address
---- -------
Douglas C. Thorburn 255 Canyon Blvd., Suite 100
Boulder, CO 80302
Dated: 6/3/94
---------------------------
[ILLEGIGLE]
---------------------------
Incorporator
VERIFICATION
STATE OF COLORADO )
COUNTY OF BOULDER )
I, GREG BURNS, a Notary Public, hereby
------------
3
<PAGE>
certify that on June 3, 1994, personally appeared before me Douglas C.
Thorburn, who being first duly sworn, declared that he was the person who
signed the foregoing document as incorporator and that the statements therein
contained are true.
Witness my hand and official seal.
My commission expires: 10/8/95
------------------------
Illegible [SEAL]
------------------------
Notary Public
4
<PAGE>
FIRST ARTICLES OF AMENDMENT
TO THE
ARTICLES OF INCORPORATION
BOULDER INTERACTIVE GROUP, INC.
A Colorado Corporation
Pursuant to Section 7-110-103 of the Colorado Business Corporation Act,
the sole shareholder and the Board of Directors of Boulder Interactive Group,
Inc., a Colorado corporation (the "Company"), hereby adopt the following
amendments to the Company's Articles of Incorporation:
1. Paragraph 7 of the Company's Articles of Incorporation is hereby amended
to read:
"7. SHAREHOLDER VOTE. In lieu of the provisions of the Colorado
Business Corporation Act requiring the vote or concurrence of the holders of
two-thirds of the outstanding shares, or two-thirds of the shares entitled
to vote thereon, or two-thirds of any class or series, the Company shall
instead be required to obtain the approval of the holders of three-fourths
(75%) of the Company's issued and outstanding common stock. In addition, the
Company shall obtain the approval of the holders of three-fourths (75%) of
the Company's outstanding shares of common stock to effect the following:
(a) Sale of the Company, or sale of substantially all of the
assets of the Company;
(b) Sale of any capital stock of the Company, including but not
limited to the issuance of any warrants, options, rights, or
other instruments convertible into capital stock of the
Company;
(c) An initial public offering of any capital stock of the
Company;
(d) Incurring indebtedness in excess of $100,000, other than
trade credit incurred in the ordinary course of business;
(e) Amending the Company's Articles of Incorporation Bylaws;
(f) Payment of any dividend or effecting any other distribution
to the Company's shareholders;
(g) Encumbering the assets of the Company; or,
(h) Filing any voluntary petition in bankruptcy, or dissolving or
liquidating the Company."
<PAGE>
CONSENT IN LIEU OF MEETING
Board of Directors and Sole Shareholder of
BOULDER INTERACTIVE GROUP, INC.
Pursuant to the terms of the Colorado Business Corporation Act and the
Articles of Incorporation and Bylaws of Boulder Interactive Group, Inc., a
Colorado corporation (the "Company"), the Board of Directors of the Company
and Old Frontier Media, inc., a Colorado corporation and sole shareholder of
the Company ("OFMI") hereby consent to the following actions:
WHEREAS, it is deemed to be in the best interests of the Company to sell
shares of common stock of the Company representing thirty percent (30%) of the
issued and outstanding common stock of the Company to Quarto Holdings, Inc.,
a Delaware corporation ("Quarto"), pursuant to the terms of a Stock and
Warrant Purchase Agreement (the "Purchase Agreement") by and among the
Company, Quarto, Old Frontier Media, Inc. and New Frontier Media, Inc., which
Purchase Agreement has been presented to this Board of Directors and ordered
filed with the records of this Company; and,
WHEREAS, it is deemed in the best interests of the Company to authorize
and ratify all actions necessary to effect the terms of the Purchase
Agreement;
NOW, THEREFORE, BE IT RESOLVED: That the form, terms and provisions of the
Purchase Agreement be and hereby are, in all respects, approved.
RESOLVED, FURTHER: That the form, terms and provisions of the Exhibits to
the Purchase Agreement, including without limitation, the form of Stockholder
Agreement, Rights Agreement, and Warrant to purchase shares of New Frontier
Media, Inc., be and hereby are, in all respects, approved.
RESOLVED, FURTHER: That Andrew Brandt, president of this Company, or any
other officer of this Company, be and hereby is authorized, empowered and
directed in the name and on behalf of this Company to execute and deliver the
Purchase Agreement with such changes therein as Andrew Brandt, or such other
officer of this Company, in his sole discretion, approve, the execution and
delivery thereof to be conclusive evidence of such approval, and, upon
satisfaction of the conditions to this Company's obligations thereunder as set
forth in the Purchase Agreement, to consummate the transactions contemplated
by the Purchase Agreement.
RESOLVED, FURTHER: That Andrew Brandt, President of the Company, or any
other officer, be and hereby is authorized to execute and deliver any and all
agreements, documents, and instruments and to do all acts and things deemed
necessary by Andrew Brandt, or such other officer, in connection with any
transactions involving the Company or any other party arising out of or
related to the Purchase Agreement.
RESOLVED, FURTHER: That the Company shall issue 1,714 shares of its common
stock, as evidenced by a stock certificate for 1,714 shares of the Company's
common stock and bearing a standard restrictive transfer legend, in the name
of Quarto Holdings, Inc., a Delaware corporation ("Quarto"), upon payment
therefore in compliance with the terms of the Purchase Agreement, to wit:
payment by Quarto to the Company of $1,775,000, consisting of $1,250,000 in
certified funds and the assignment of rights to existing digital material
owned by Quarto valued at $525,000. The President and Secretary of the
Company are hereby authorized to execute the certificate upon payment therefor
by Quarto, and to prepare and file any documents required pursuant to state
and federal securities laws.
<PAGE>
RESOLVED, FURTHER: That the form, terms and provisions of the First
Amendment to the Articles of Incorporation for the Company, attached hereto,
are hereby approved, and the Secretary of the Company is hereby directed to
file said First Amendment to the Articles of Incorporation with the Colorado
Secretary of State forthwith;
RESOLVED, FURTHER: That the Company's Articles of Incorporation provide
for a Board of Directors of the Company consisting of four (4) persons. The
Company's Board of Directors hereby appoints Mr. Harvey Goldstein to its
Board of Directors, effective September 21, 1996 and continuing for a term of
one year plus any additional number of days until the 1998 annual meeting of
shareholders, at which time the following duly elected and appointed Board
members may stand for reelection:
Harvey Goldstein
Michael Weiner
Mark H. Kreloff
Andrew Brandt
BOARD OF DIRECTORS OF THE COMPANY:
/s/ Mark H. Kreloff 9/16/96
- ---------------------------------------------
Mark H. Kreloff Date
/s/ Michael Weiner 9/16/96
- ---------------------------------------------
Michael Weiner Date
/s/ Andrew Brandt 9/16/96
- ---------------------------------------------
Andrew Brandt Date
OLD FRONTIER MEDIA, INC. (Sole shareholder of the Company):
/s/ Mark H. Kreloff 9/16/96
- ---------------------------------------------
Mark H. Kreloff, President Date
<PAGE>
ARTICLES OF INCORPORATION
OF
DaViD Entertainment, Inc.
The undersigned, who, if a natural person, is eighteen years of age or
older, hereby establishes a corporation pursuant to the Colorado Business
Corporation Act as amended and adopts the following Articles of Incorporation:
FIRST: The name of the corporation is DaViD Entertainment, Inc.
SECOND: The corporation shall have and may exercise all of the rights,
powers and privileges now or hereafter conferred upon corporations organized
under the laws of Colorado. In addition, the corporation may do everything
necessary, suitable or proper for the accomplishment of any of its corporate
purposes. The corporation may conduct part or all of its business in any part
of Colorado, the United States or the world and may hold, purchase, mortgage,
lease and convey real and personal property in any of such places.
THIRD: (a) The aggregate number of shares which the corporation shall have
authority to issue is 1,000,000 shares of common stock. The shares of this
class of common stock shall have unlimited voting rights and shall constitute
the sole voting group of the corporation, except to the extent any additional
voting group or groups may hereafter be established in accordance with the
Colorado Business Corporation Act. The shares of this class shall also be
entitled to receive the net assets of the corporation upon dissolution.
(b) Each shareholder of record shall have one vote for each share of
stock standing in his name on the books of the corporation and entitled to
vote. Cumulative voting shall not be permitted in the election of directors
or otherwise.
(c) Unless otherwise ordered by a court of competent jurisdiction, at
all meetings of shareholders one-third of the shares of a voting group
entitled to vote at such meeting, represented in person or by proxy, shall
constitute a quorum of that voting group.
FOURTH: The number of directors of the corporation shall be fixed by the
bylaws, or if the bylaws fail to fix such a number, then by resolution
adopted from time to time by the board of directors, provided that the number
of directors shall not be more than five (5) nor less than three (3). Three
(3) directors shall constitute the initial board of directors. The following
persons are elected to serve as the corporation's initial directors until the
first annual meeting of shareholders or until their successors are duly
elected and qualified:
<PAGE>
Name Address
---- -------
Stephen Cherner 1035 Pearl Street, Suite 402
Boulder, Colorado 80302
Mark Kreloff 1035 Pearl Street, Suite 402
Boulder, Colorado 80302
Michael Weiner 1035 Pearl Street, Suite 402
Boulder, Colorado 80302
FIFTH: The street address of the initial registered office of the
corporation is 1035 Pearl Street, Suite 402, Boulder Colorado 80302. The name
of the initial registered agent of the corporation at such address is J. John
Combs III, Esq.
SIXTH: The address of the initial principal office of the corporation is
1035 Pearl Street, Suite 402, Boulder Colorado 80302.
SEVENTH: The following provisions are inserted for the management of the
business and for the conduct of the affairs of the corporation, and the same
are in furtherance of and not in limitation or exclusion of the powers
conferred by law.
(a) Conflicting Interest Transactions. As used in this paragraph,
"conflicting interest transaction" means any of the following: (i) a loan or
other assistance by the corporation to a director of the corporation or to an
entity in which a director of the corporation is a director or officer or has
a financial interest; (ii) a guaranty by the corporation of an obligation of
a director of the corporation or of an obligation of an entity in which a
director of the corporation is a director or officer or has a financial
interest; or (iii) a contract or transaction between the corporation and a
director of the corporation or between the corporation and an entity in which
a director of the corporation is a director or officer or has a financial
interest. No conflicting interest transaction shall be void or voidable, be
enjoined, be set aside, or give rise to an award of damages or other
sanctions in a proceeding by a shareholder or by or in the right of the
corporation, solely because the conflicting interest transaction involves a
director of the corporation or an entity in which a director of the
corporation is a director or officer or has a financial interest, or solely
because the director is present at or participates in the meeting of the
corporation's board of directors or of the committee of the board of
directors which authorizes, approves or ratifies a conflicting interest
transaction, or solely because the director's vote is counted for such
purpose if: (A) the material facts as to the director's relationship or
interest and as to the conflicting interest transaction are disclosed or are
known to board of directors or the committee, and the board of directors or
committee in good faith authorizes, approves or ratifies and conflicting
interest transaction by the affirmative
<PAGE>
vote of a majority of the disinterested directors, even though the
disinterested directors are less than a quorum; or (B) the material facts as
to the director's relationship or interest and as to the conflicting interest
transaction are disclosed or are known to the shareholders entitled to vote
thereon, and the conflicting interest transaction is specifically
authorized, approved or ratified in good faith by a vote of the shareholders'
or (C) a conflicting interest transaction is fair as to the corporation as of
the time it is authorized, approved or ratified by the board of directors, a
committee thereof, or the shareholders. Common or interested directors may
be counted in determining the presence of a quorum at a meeting of the board of
directors or of a committee which authorizes, approves or ratifies the
conflicting interest transaction.
(b) Loans and guaranties for the Benefit of Directors. Neither the
board of directors nor any committee thereof shall authorize a loan by the
corporation to a director of the corporation or to an entity in which a
director of the corporation is a director or officer or has a financial
interest, or a guaranty by the corporation of an obligation of a director of
the corporation or of an obligation of an entity in which a director of the
corporation is a director or officer or has a financial interest, until at
least ten days after written notice of the proposed authorization of the loan
or guaranty has been given to the shareholders who would be entitled to vote
thereon if the issue of the loan or guaranty were submitted to a vote of the
shareholders. The requirements of this paragraph (b) are in addition to, and
not in substitution for, the provisions of paragraph (a) of Article SEVENTH.
(c) Indemnification. The corporation shall indemnify, to the maximum
extent permitted by law, any person who is or was a director, officer, agent,
fiduciary or employee of the corporation against any claim, liability or
expense arising against or incurred by such person made party to a
proceeding because he is or was a director, officer, agent, fiduciary or
employee of the corporation or because he is or was serving another entity as
a director, officer, partner, trustee, employee, fiduciary or agent at the
corporation's request. The corporation shall further have the authority to
the maximum extent permitted by law to purchase and maintain insurance
providing such indemnification.
(d) Limitation on Director's Liability. No director of this corporation
shall have any personal liability for monetary damages to the corporation or
its shareholders for breach of his fiduciary duty as a director, except that
this provision shall not eliminate or limit the personal liability of a
director to the corporation or its shareholders for monetary damages for: (i)
any breach of the director's duty of loyalty to the corporation or its
shareholders; (ii) acts or omissions not in good faith or which involve
intentional misconduct or a knowing violation of law; (iii) voting for
or assenting to a distribution in violation of Colorado Revised Statutes
Section 7-106-401 or the articles of incorporation
<PAGE>
if it is established that the director did not perform his duties in
compliance with Colorado Revised Statutes Section 7-108-401, provided that
the personal liability of a director in this circumstances shall be limited
to the amount of the distribution which exceeds what could have been
distributed without violation of Colorado Revised Statutes Section 7-106-401
or the articles of incorporation; or (iv) any transaction from which the
director directly or indirectly derives an improper personal benefit. Nothing
contained herein will be construed to deprive any director of his right to all
defenses ordinarily available to a director nor will anything herein be
construed to deprive any director or any right he may have for contribution
from any other director or other person.
(e) Negation of Equitable Interests in Shares or Rights. Unless a person
is recognized as a shareholder through procedures established by the
corporation pursuant to Colorado Revised Statutes Section 7-107-204 or any
similar law, the corporation shall be entitled to treat the registered holder
of any shares of the corporation as the owner thereof for all purposes
permitted by the Colorado Business Corporation Act, including without
limitation all rights deriving from such shares, and the corporation shall
not be bound to recognize any equitable or other claim to, or interest in,
such shares or rights deriving from such shares on the part of any other
person including without limitation, a purchaser, assignee or transferee of
such shares, unless and until such other person becomes the registered holder
of such shares or is recognized as such, whether or not the corporation shall
have either actual or constructive notice of the claimed interest of such
other person. By way of example and not of limitation, until such other
person has become the registered holder of such shares or is recognized
pursuant to Colorado Revised Statutes Section 7-107-204 or any similar
applicable law, he shall not be entitled: (i) to receive notice of the
meetings of the shareholders; (ii) to vote at such meetings; (iii) to examine
a list of the shareholders; (iv) to be paid dividends or other distributions
payable to shareholders; or (v) to own, enjoy and exercise any other rights
deriving from such shares against the corporation. Nothing contained herein
will be construed to deprive any beneficial shareholder, as defined in
Colorado Revised Statutes Section 7-113-101(1), of any right he may have
pursuant to Article 113 of the Colorado Business Corporation Act or any
subsequent law.
EIGHTH: The name and address of the incorporator is:
J. John Combs III, Esq.; 1035 Pearl Street, Suite 402, Boulder, Colorado
80302
DATED: the 24 day of June, 1995.
/s/ J. JOHN COMBS
-------------------------------
Incorporator
<PAGE>
J. John Combs III, Esq. hereby consents to the appointment as the initial
registered agent for DaViD Entertainment.
/s/ J. JOHN COMBS
-------------------------------
Incorporator
<PAGE>
ARTICLES OF INCORPORATION
OF
FUZZY ENTERTAINMENT, INC.
The undersigned, who, if a natural person, is eighteen years of age or
older, hereby establishes a corporation pursuant to the Colorado Business
Corporation Act as amended and adopts the following Articles of Incorporation:
FIRST: The name of the corporation is Fuzzy Entertainment, Inc.
SECOND: The corporation shall have and may exercise all of the rights,
powers and privileges now or hereafter conferred upon corporations organized
under the laws of Colorado. In addition, the corporation may do everything
necessary, suitable or proper for the accomplishment of any of its corporate
purposes. The corporation may conduct part or all of its business in any
part of Colorado, the United States or the world and may hold, purchase,
mortgage, lease and convey real and personal property in any of such places.
THIRD: (a) The aggregate number of shares which the corporation shall
have authority to issue is 1,000,000 shares of common stock. The shares of
this class of common stock shall have unlimited voting rights and shall
constitute the sole voting group of the corporation, except to the extent any
additional voting group or groups may hereafter be established in accordance
with the Colorado Business Corporation Act. The shares of this class shall
also be entitled to receive the net assets of the corporation upon
dissolution.
(b) Each shareholder of record shall have one vote for each
share of stock standing in his name on the books of the corporation and
entitled to vote. Cumulative voting shall not be permitted in the election
of directors or otherwise.
(c) Unless otherwise ordered by a court of competent
jurisdiction, at all meetings of shareholders one-third of the shares of a
voting group entitled to vote at such meeting, represented in person or by
proxy, shall constitute a quorum of that voting group.
FOURTH: The number of directors of the corporation shall be fixed by
the bylaws, or if the bylaws fail to fix such a number, then by resolution
adopted from time to time by the board of directors, provided that the number
of directors shall not be more than five (5) nor less than three (3). Three
(3) directors shall constitute the initial board of directors. The following
persons are elected to serve as the corporation's initial directors until the
first annual meeting of shareholders or until their successors are duly
elected and qualified:
<PAGE>
Name Address
---- -------
Stephen Cherner 1035 Pearl Street, Suite 402
Boulder, Colorado 80302
Mark Kreloff 1035 Pearl Street, Suite 402
Boulder, Colorado 80302
Michael Weiner 1035 Pearl Street, Suite 402
Boulder, Colorado 80302
FIFTH: The street address of the initial registered office of the
corporation is 1035 Pearl Street, Suite 402, Boulder, Colorado 80302. The
name of the initial registered agent of the corporation at such address is
J. John Combs III, Esq.
SIXTH: The address of the initial principal office of the corporation
is 1035 Pearl Street, Suite 402, Boulder, Colorado 80302.
SEVENTH: The following provisions are inserted for the management of the
business and for the conduct of the affairs of the corporation, and the same
are in furtherance of and not in limitation or exclusion of the powers
conferred by law.
(a) Conflicting Interest Transactions. As used in this paragraph,
"conflicting interest transaction" means any of the following: (i) a loan or
other assistance by the corporation to a director of the corporation or to an
entity in which a director of the corporation is a director or officer or has
a financial interest; (ii) a guaranty by the corporation of an obligation of
a director of the corporation or of an obligation of an entity in which a
director of the corporation is a director or officer or has a financial
interest; (iii) a contract or transaction between the corporation and a
director of the corporation or between the corporation and an entity in which
a director of the corporation is a director or officer or has a financial
interest. No conflicting interest transaction shall be void or voidable, be
enjoined, be set aside, or give rise to an award of damages or other
sanctions in a proceeding by a shareholder or by or in the right of the
corporation, solely because the conflicting interest transaction involves a
director of the corporation or an entity in which a director of the
corporation is a director or officer or has a financial interest, or solely
because the director is present at or participates in the meeting of the
corporation's board of directors or of the committee of the board of
directors which authorizes, approves or ratifies a conflicting interest
transaction, or solely because the director's vote is counted for such
purpose if: (A) the material facts as to the director's relationship or
interest and as to the conflicting interest transaction are disclosed or are
known to board of directors or the committee, and the board of directors or
committee in good faith authorizes, approves or ratifies the conflicting
interest transaction by the affirmative
<PAGE>
vote of a majority of the disinterested directors, even though the
disinterested directors are less than a quorum; or (B) the material facts as
to the director's relationship or interest and as to the conflicting interest
transaction are disclosed or are known to the shareholders entitled to vote
thereon, and the conflicting interest transaction is specifically authorized,
approved or ratified in good faith by a vote of the shareholders' or (C) a
conflicting interest transaction is fair as to the corporation as of the time
it is authorized, approved or ratified by the board of directors, a committee
thereof, or the shareholders. Common or interested directors may be counted
in determining the presence of a quorum at a meeting of the board of
directors or of a committee which authorizes, approves or ratifies the
conflicting interest transaction.
(b) Loans and Guaranties for the Benefit of Directors. Neither the
board of directors nor any committee thereof shall authorize a loan by the
corporation to a director of the corporation or to an entity in which a
director of the corporation is a director or officer or has a financial
interest, or a guaranty by the corporation of an obligation of a director of
the corporation or of an obligation of an entity in which a director of the
corporation is a director or officer or has a financial interest, until at
least ten days after written notice of the proposed authorization of the loan
or guaranty has been given to the shareholders who would be entitled to vote
thereon if the issue of the loan or guaranty were submitted to a vote of the
shareholders. The requirements of this paragraph (b) are in addition to, and
not in substitution for, the provisions of paragraph (a) of Article SEVENTH.
(c) Indemnification. The corporation shall indemnify, to the maximum
extent permitted by law, any person who is or was a director, officer, agent,
fiduciary or employee of the corporation against any claim, liability or
expense arising against or incurred by such person made party to a proceeding
because he is or was a director, officer, agent, fiduciary or employee of the
corporation or because he is or was serving another entity as a director,
officer, partner, trustee, employee, fiduciary or agent at the corporation's
request. The corporation shall further have the authority to the maximum
extent permitted by law to purchase and maintain insurance providing such
indemnification.
(d) Limitation on Director's Liability. No director of this corporation
shall have any personal liability for monetary damages to the corporation or
its shareholders for breach of his fiduciary duty as a director, except that
this provision shall not eliminate or limit the personal liability of a
director to the corporation or its shareholders for monetary damages for:
(i) any breach of the director's duty of loyalty to the corporation or its
shareholders; (ii) acts or omissions not in good faith or which involve
intentional misconduct or a knowing violation of law; (iii) voting for or
assenting to distribution in violation of Colorado Revised Statutes Section
7-106-401 or the articles of incorporation
<PAGE>
if it is established that the director did not perform his duties in
compliance with Colorado Revised Statutes Section 7-108-401, provided that
the personal liability of a director in this circumstances shall be limited
to the amount of the distribution which exceeds what could have been
distributed without violation of Colorado Revised Statutes Section 7-106-401
or the articles of incorporation; or (iv) any transaction from which the
director directly or indirectly derives an improper personal benefit.
Nothing contained herein will be construed to deprive any director of his
right to all defenses ordinarily available to a director nor will anything
herein be construed to deprive any director of any right he may have for
contribution from any other director or other person.
(e) Negation of Equitable Interests in Shares or Rights. Unless a
person is recognized as a shareholder through procedures established by the
corporation pursuant to Colorado Revised Statutes Section 7-107-204 or any
similar law, the corporation shall be entitled to treat the registered holder
of any shares of the corporation as the owner thereof for all purposes
permitted by the Colorado Business Corporation Act, including without
limitation all rights deriving from such shares, and the corporation shall not
be bound to recognize any equitable or other claim to, or interest in, such
shares or rights deriving from such shares on the part of any other person
including without limitation, a purchaser, assignee or transferee of such
shares, unless and until such other person becomes the registered holder of
such shares or is recognized as such, whether or not the corporation shall
have either actual or constructive notice of the claimed interest of such
other person. By way of example and not of limitation, until such other
person has become the registered holder of such shares or is recognized
pursuant to Colorado Revised Statutes Section 7-107-204 or any similar
applicable law, he shall not be entitled; (i) to receive notice of the
meetings of the shareholders; (ii) to vote at such meetings; (iii) to examine
a list of the shareholders; (iv) to be paid dividends or other distributions
payable to shareholders; or (v) to own, enjoy and exercise any other rights
deriving from such shares against the corporation. Nothing contained herein
will be construed to deprive any beneficial shareholder, as defined in
Colorado Revised Statutes Section 7-113-101(1), of any right he may have
pursuant to Article 113 of the Colorado Business Corporation Act or any
subsequent law.
EIGHTH: The name and address of the incorporator is:
J. John Combs III, Esq.; 1035 Pearl Street, Suite 402, Boulder, Colorado
80302
DATED the 24 day of June, 1995.
/s/ J. John Combs
-------------------------------------
Incorporator
<PAGE>
J. John Combs III, Esq. hereby consents to the appointment as the initial
registered agent for Fuzzy Entertainment, Inc.
/s/ J. John Combs
-------------------------------------
Initial Registered Agent
<PAGE>
FIRST AMENDED AND RESTATED BYLAWS
OF
NEW FRONTIER MEDIA
A Colorado Corporation
<PAGE>
INDEX TO
FIRST AMENDED AND RESTATED BYLAWS OF
NEW FRONTIER MEDIA, INC.
Page
ARTICLE 1 - OFFICES 1
Section 1.1 Principal Office 1
Section 1.2 Registered Office 1
ARTICLE 2 - SHAREHOLDERS 1
Section 2.1 Annual Meeting 1
Section 2.2 Special Meetings 2
Section 2.3 Place of Meetings 2
Section 2.4 Notice of Meeting 2
Section 2.5 Meeting of all Shareholders 2
Section 2.6 Closing of Transfer Books or Fixing of Record Date 2
Section 2.7 Voting Record 3
Section 2.8 Quorum 3
Section 2.9 Manner of Acting 4
Section 2.10 Proxies 4
Section 2.11 Voting of Shares 4
Section 2.12 Voting of Shares by Certain Shareholders 4
Section 2.13 Informal Action by Shareholders 5
Section 2.14 Voting by Ballot 5
Section 2.15 Cumulative Voting 5
ARTICLE 3 - BOARD OF DIRECTORS 5
Section 3.1 General Powers 5
Section 3.2 Performance of Duties 5
Section 3.3 Number, Tenure and Qualifications 6
Section 3.4 Regular Meetings 6
Section 3.5 Special Meetings 7
Section 3.6 Notice 7
Section 3.7 Quorum 7
Section 3.8 Manner of Acting 7
Section 3.9 Informal Action by Directors 8
Section 3.10 Participation by Electronic Means 8
Section 3.11 Vacancies 8
Section 3.12 Resignation 8
Section 3.13 Removal 8
Section 3.14 Committees 8
Section 3.15 Compensation 9
Section 3.16 Presumption of Assent 9
Section 3.17 Limitations on Liability 9
Section 3.18 Indemnification 9
<PAGE>
ARTICLE 4 - OFFICERS 10
Section 4.1 Number 10
Section 4.2 Election and Term of Office 11
Section 4.3 Removal 11
Section 4.4 Vacancies 11
Section 4.5 President 11
Section 4.6 Vice President 12
Section 4.7 Secretary 12
Section 4.8 Treasurer 12
Section 4.9 Assistant Secretaries and Assistant Treasurers 13
Section 4.10 Bonds 13
Section 4.11 Salaries 13
ARTICLE 5 - CONTRACTS, LOANS, CHECKS AND DEPOSITS 13
Section 5.1 Contracts 13
Section 5.2 Loans 13
Section 5.3 Checks, Drafts, Etc. 13
Section 5.4 Deposits 14
ARTICLE 6 - SHARES, CERTIFICATES FOR SHARES AND TRANSFER OF SHARES 14
Section 6.1 Regulation 14
Section 6.2 Certificates for Shares 14
Section 6.3 Cancellation of Certificates 15
Section 6.4 Lost, Stolen or Destroyed Certificates 15
Section 6.5 Transfer of Shares 15
ARTICLE 7 - FISCAL YEAR 15
ARTICLE 8 - DIVIDENDS 16
ARTICLE 9 - CORPORATE SEAL 16
ARTICLE 10 - WAIVER OF NOTICE 16
ARTICLE 11 - AMENDMENTS 16
<PAGE>
ARTICLE 12 - EXECUTIVE COMMITTEE 17
Section 12.1 Appointment 17
Section 12.2 Authority 17
Section 12.3 Tenure and Qualifications 17
Section 12.4 Meetings 17
Section 12.5 Quorum 18
Section 12.6 Informal Action by Executive Committee 18
Section 12.7 Vacancies 18
Section 12.8 Resignation and Removal 18
Section 12.9 Procedure 18
ARTICLE 13 - EMERGENCY BYLAWS 19
<PAGE>
FIRST AMENDED AND RESTATED BYLAWS
OF
NEW FRONTIER MEDIA, INC.
A Colorado Corporation
ARTICLE I
OFFICES
SECTION 1.1 PRINCIPAL OFFICE.
The principal office of the corporation in the state of Colorado shall
be located in the city of Boulder, county of Boulder. The corporation may have
such other offices, either within or outside of the State of Colorado as the
board of directors may designate, or as the business of the corporation may
require from time to time.
SECTION 1.2 REGISTERED OFFICE.
The registered office of the corporation, required by the Colorado
Business Corporation Act to be maintained in the State of Colorado, may be,
but need not be, identical with the principal office in the State of
Colorado, and the address of the registered office may be changed from time
to time by the board of directors.
ARTICLE 2
SHAREHOLDERS
SECTION 2.1 ANNUAL MEETING.
The annual meeting of the shareholders shall be held on June 1 in each
year, commencing with the year 1998, at the hour of 10:00 a.m., or at such
other time on such other day as shall be fixed by the board of directors for
the purpose of electing directors and for the transaction of such other
business as may come before the meeting. If the day fixed for the annual
meeting shall be a legal holiday in the State of Colorado, such meeting shall
be held on the next succeeding business day. If the election of directors
shall not be held on the day designated herein for any annual meeting of the
shareholders, or at any adjournment thereof, the board of directors shall
cause the election to be held at a special meeting of the shareholders as
soon thereafter as may be convenient.
1
<PAGE>
SECTION 2.2 SPECIAL MEETINGS.
Special meetings of the shareholders, for any purpose or purposes,
unless otherwise prescribed by statute, may be called by the chief executive
officer, the president, or by the board of directors, and shall be called by
the president at the request of the holders of not less than one-tenth of all
outstanding shares of the corporation entitled to vote at the meeting.
SECTION 2.3 PLACE OF MEETINGS.
The board of directors may designate any place, either within or outside
of the State of Colorado, as the place of meeting for any annual meeting or
for any special meeting called by the board of directors. If no designation
is made, or if a special meeting be otherwise called, the place of meeting
shall be the principal office of the corporation in the State of Colorado.
SECTION 2.4 NOTICE OF MEETING.
Written notice stating the place, day and hour of the meeting of
shareholders and, in case of a special meeting, the purpose or purposes for
which the meeting is called, shall, unless otherwise prescribed by statute,
be delivered not less than ten nor more than fifty days before the date of
the meeting, either personally or by mail, by or at the direction of the
chief executive officer, the president, or the secretary, or the officer or
other persons calling the meeting, to each shareholder of record entitled to
vote at such meeting; provided, however, that if the authorized shares of the
corporation are to be increased, at least thirty days' notice shall be given,
and if sale of all or substantially all assets are to be voted upon, at least
twenty days' notice shall be given. If mailed, such notice shall be deemed to
be delivered when deposited in the United States mail, addressed to the
shareholder at his or her address as it appears on the stock transfer books
of the corporation, with postage thereon prepaid.
SECTION 2.5 MEETING OF ALL SHAREHOLDERS.
If all of the shareholders shall meet at any time and place, either
within or outside of the State of Colorado, and consent to the holding of a
meeting at such time and place, such meeting shall be valid without call or
notice, and at such meeting any corporate action may be taken.
SECTION 2.6 CLOSING OF TRANSFER BOOKS OR FIXING OF RECORD DATE.
For the purpose of determining shareholders entitled to notice of or to
vote at any meeting of shareholders or any adjournment thereof, or
shareholders entitled to receive payment of any dividend, or in order to make
a determination of shareholders for any other purpose, the board of directors
of the corporation may provide that the share transfer books shall be closed
for a stated period but not to exceed, in any case, fifty days. If the share
transfer books shall be closed for the purpose of determining shareholders
entitled to notice of or to vote at a meeting of shareholders, such books
shall be closed for at least ten days immediately preceding such meeting. In
lieu of closing the share transfer books, the board of directors may fix in
advance a date as the record date for any such
2
<PAGE>
determination of shareholders, such date in any case to be not more than
fifty days and, in case of a meeting of shareholders, not less than ten days
prior to the date on which the particular action, requiring such
determination of shareholders, is to be taken. If the share transfer books
are not closed and no record date is fixed for the determination of
shareholders entitled to notice of or to vote at a meeting of shareholders,
or shareholders entitled to receive payment of a dividend, the date on which
notice of the meeting is mailed or the date on which the resolution of the
board of directors declaring such dividend is adopted, as the case may be,
shall be the record date for such determination of shareholders. When a
determination of shareholders entitled to vote at any meeting of shareholders
has been made as provided in this Section, such determination shall apply to
any adjournment thereof.
SECTION 2.7 VOTING REQUIRED.
The officer or agent having charge of the stock transfer books for
shares of the corporation shall make, at least ten days before such meeting
of shareholders, a complete record of the shareholders entitled to vote at
each meeting of shareholders or any adjournment thereof, arranged in
alphabetical order, with the address of and the number of shares held by
each. The record, for a period of ten days prior to such meeting, shall be
kept on file at the principal office of the corporation, whether within or
outside of the State of Colorado, and shall be subject to inspection by any
shareholder for any purpose germane to the meeting at any time during usual
business hours. Such record shall be produced and kept open at the time and
place of the meeting and shall be subject to the inspection of any
shareholder during the whole time of the meeting for the purposes thereof.
The original stock transfer books shall be the prima facie evidence as
to who are the shareholders entitled to examine the record or transfer books
or to vote at any meeting of shareholders.
SECTION 2.8 QUORUM.
A majority of the outstanding shares of the corporation entitled to vote,
represented in person or by proxy, shall constitute a quorum at any meeting
of shareholders, except as otherwise provided by the Colorado Business
Corporation Act and the Articles of Incorporation. In the absence of a quorum
at any such meeting, a majority of the shares so represented may adjourn the
meeting from time to time for a period not to exceed sixty days without
further notice. At such adjourned meeting at which a quorum shall be present
or represented, any business may be transacted which might have been
transacted at the meeting as originally noticed. The shareholders present at
a duly organized meeting may continue to transact business until adjournment,
notwithstanding the withdrawal during such meeting of that number of
shareholders whose absence would cause there to be less than a quorum.
3
<PAGE>
SECTION 2.9 MANNER OF ACTING.
If a quorum is present, the affirmative vote of the majority of the
shares represented at the meeting and entitled to vote on the subject matter
shall be the act of the shareholders, unless the vote of a greater proportion
or number or voting by classes is otherwise required by statute or by the
Articles of Incorporation or these bylaws.
SECTION 2.10 PROXIES.
At all meetings of shareholders a shareholder may vote in person or by
proxy executed in writing by the shareholder or by a duly authorized
attorney-in-fact. Such proxy shall be filed with the secretary of the
corporation before or at the time of the meeting. No proxy shall be valid
after eleven months from the date of the execution, unless otherwise provided
in the proxy.
SECTION 2.11 VOTING OF SHARES.
Unless otherwise provided by these bylaws or the Articles of Incorporation,
each outstanding share entitled to vote shall be entitled to one vote upon
each matter submitted to vote at a meeting of shareholders, and each
fractional share shall be entitled to a corresponding fractional vote on each
such matter.
SECTION 2.12 VOTING OF SHARES BY CERTAIN SHAREHOLDERS.
Shares standing in the name of another corporation may be voted by such
officer, agent or proxy as the bylaws of such corporation may prescribe, or,
in the absence of such provision, as the board of directors of such other
corporation may determine.
Shares standing in the name of a deceased person, a minor ward or an
incompetent person, may be voted by an administrator, executor, court
appointed guardian or conservator, either in person or by proxy without a
transfer of such shares into the name of such administrator, executor, court
appointed guardian or conservator. Shares standing in the name of a trustee
may be voted by him, either in person or by proxy, but no trustee shall be
entitled to vote shares held by him or her without a transfer of such shares
into his or her name.
Shares standing in the name of a receiver may be voted by such receiver
and shares held by or under the control of a receiver may be voted by such
receiver without the transfer thereof into the trustee name if authority so
to do be contained in an appropriate order of the court by which such
receiver was appointed.
A shareholder whose shares are pledged shall be entitled to vote such
shares until the shares have been transferred into the name of the pledgee,
and thereafter the pledgee shall be entitled to vote the shares so transferred.
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Neither shares of its own stock belonging to this corporation, nor
shares of its own stock held by it in a fiduciary capacity, nor shares of
its own stock held by another corporation if the majority of shares entitled
to vote for the election of directors of such corporation is held by this
corporation may be voted, directly or indirectly, at any meeting and shall
not be counted in determining the total number of outstanding shares at any
given time.
Redeemable shares which have been called for redemption shall not be
entitled to vote on any matter and shall not be deemed outstanding shares on
and after the date on which written notice of redemption has been mailed to
shareholders and a sum sufficient to redeem such shares has been deposited
with a bank or trust company with irrevocable instruction and authority to
pay the redemption price to the holders of the shares upon surrender of
certificates therefor.
SECTION 2.13 INFORMAL ACTION BY SHAREHOLDERS.
Any action required or permitted to be taken at a meeting of the
shareholders may be taken without a meeting if a consent in writing, setting
forth the action so taken, shall be signed by all of the shareholders
entitled to vote with respect to the subject matter thereof.
SECTION 2.14 VOTING BY BALLOT.
Voting on any question or in any election may be by voice vote unless
the presiding officer shall order or any shareholder shall demand that voting
be by ballot.
SECTION 2.15 CUMULATIVE VOTING.
Cumulative voting shall not be allowed.
ARTICLE 3
BOARD OF DIRECTORS
SECTION 3.1 GENERAL POWERS.
The business and affairs of the corporation shall be managed by its
board of directors.
SECTION 3.2 PERFORMANCE OF DUTIES.
A director of the corporation shall perform his or her duties as a
director, including his or her duties as a member of any committee of the
board upon which he or she may serve, in good faith, in a manner he or she
reasonably believes to be in the best interests of the corporation, and with
such care as an ordinarily prudent person in a like position would use under
similar circumstances. In performing his or her duties, a director shall be
entitled to rely on information, opinions, reports, or statements, including
financial statements and other financial data, in each case prepared or
presented
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by persons and groups listed in paragraphs (A), (B), and (C) of this Section
3.2; but he or she shall not be considered to be acting in good faith if he
or she has knowledge concerning the matter in question that would cause such
reliance to be unwarranted. A person who so performs his or her duties shall
not have any liability by reason of being or having been a director of the
corporation. Those persons and groups on whose information, opinions,
reports, and statements a director is entitled to rely upon are:
A. One or more officers or employees of the corporation whom the
director reasonably believes to be reliable and competent in the matter
presented;
B. Counsel, public accountants, or other persons as to matters which
the director reasonably believes to be within such persons' professional or
expert competence; or
C. A committee of the board upon which he or she does not serve, duly
designated in accordance with the provision of the articles of incorporation
or the bylaws, as to matters within its designated authority, which committee
the director reasonably believes to merit confidence.
SECTION 3.3 NUMBER, TENURE AND QUALIFICATIONS.
The number of directors of the corporation shall be not more than seven
(7). The number of directors of the corporation shall be fixed from time to
time by resolution of the board of directors, but in no instance shall there
be less than one director or that number otherwise required by law. Each
director shall hold office until the next annual meeting of shareholders or
until his or her successor shall have been elected and qualified. Directors
need not be residents of the state of Colorado or shareholders of the
corporation.
When shares of the corporation shall become owned beneficially or of
record by one shareholder, the corporation shall elect at least one director.
When the shares of the corporation shall become owned beneficially or of
record by two shareholders, the corporation shall elect at least two
directors. When the shares of the corporation shall become owned
beneficially or of record by three or more shareholders, the corporation
shall elect at least three directors.
There shall be a chairman of the board, who has been elected from among
the directors. He or she shall preside at all meetings of the stockholders
and of the board of directors. He or she shall shall have such other powers
and duties as may be prescribed by the board of directors.
SECTION 3.4 REGULAR MEETINGS.
A regular meeting of the board of directors shall be held without other
notice than this bylaw immediately after, and at the same place as, the
annual meeting of shareholders. The board of directors may provide, by
resolution, the time and place, either within or without the state of
Colorado, for the holding of additional regular meetings without other notice
than such resolution.
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SECTION 3.4 SPECIAL MEETINGS.
Special meetings of the board of directors may be called by or at the
request of the chief executive officer, the president or any two directors.
The person or persons authorized to call special meetings of the board of
directors may fix any place, either within or without the state of Colorado,
as the place for holding any special meeting of the board of directors called
by them.
SECTION 3.6 NOTICE.
Written notice of any special meeting of directors shall be given as
follows:
By mail to each director at his or her business address at least three
days prior to the meeting; or
By personal delivery or telegram at least twenty-four hours prior to the
meeting to the business address of each director, or in the event such notice
is given on a Saturday, Sunday or holiday, to the residence address of each
director. If mailed, such notice shall be deemed to be delivered when
deposited in the United States mail, so addressed, with postage thereon
prepaid. If notice be given by telegram, such notice shall be deemed to be
delivered when the telegram is delivered to the telegraph company. Any
director may waive notice of any meeting. The attendance of a director at
any meeting shall constitute a waiver of notice of such meeting, except where
a director attends a meeting for the express purpose of objecting to the
transaction of any business because the meeting is not lawfully called or
convened. Neither the business to be transacted at, nor the purpose of, any
regular or special meeting of the board of directors need be specified in the
notice or waiver of notice of such meeting.
SECTION 3.7 QUORUM.
A majority of the number of directors fixed by or pursuant to section
3.2 of this Article 3 shall constitute a quorum for the transaction of
business at any meeting of the board of directors, but if less than such
majority is present at a meeting, a majority of the directors present may
adjourn the meeting from time to time without further notice.
SECTION 3.8 MANNER OF ACTING.
Except as otherwise required by law or by the Articles of Incorporation,
the act of the majority of the directors present at a meeting at which a
quorum is present shall be the act of the board of directors.
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SECTION 3.9 INFORMAL ACTION BY DIRECTORS.
Any action required or permitted to be taken by the board of directors
or by a committee thereof at a meeting may be taken without a meeting if a
consent in writing, setting forth the action so taken, shall be signed by all
of the directors or all of the committee members entitled to vote with
respect to the subject matter thereof.
SECTION 3.10 PARTICIPATION BY ELECTRONIC MEANS.
Any members of the board of directors or any committee designated by
such board may participate in a meeting of the board of directors or
committee by means of telephone conference or similar communications equipment
by which all persons participating in the meeting can hear each other at the
same time. Such participation shall constitute presence in person at the
meeting.
SECTION 3.11 VACANCIES.
Any vacancy occurring in the board of directors may be filled by the
affirmative vote of a majority of the remaining directors though less than a
quorum of the board of directors. A director elected to fill a vacancy shall
be elected for the unexpired term of his or her predecessor in office. Any
directorship to be filled by reason of an increase in the number of directors
may be filled by election by the board of directors for a term of office
continuing only until the next election of directors by the shareholders.
SECTION 3.12 RESIGNATION.
Any director of the corporation may resign at any time by giving written
notice to the president or the secretary of the corporation. The resignation
of any director shall take effect upon receipt of notice thereof or at such
later time as shall be specified in such notice, and, unless otherwise
specified therein, the acceptance of such resignation shall not be necessary
to make it effective. When one or more directors shall resign from the board,
effective at a future date, a majority of the directors then in office,
including those who have so resigned, shall have power to fill such vacancy
or vacancies, the vote thereon to take effect when such resignation or
resignations shall become effective.
SECTION 3.13 REMOVAL.
Any director or directors of the corporation may be removed at any time,
with or without cause, in the manner provided in the Colorado Business
Corporation Act.
SECTION 3.14 COMMITTEES.
By resolution adopted by a majority of the board of directors, the
directors may designate two or more directors to constitute a committee, any
of which shall have such authority in the management of the corporation as
the board of directors shall designate and as shall be prescribed by the
Colorado Business Corporation Act.
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SECTION 31.5 COMPENSATION.
By resolution of the board of directors and irrespective of any personal
interest of any of the members, each director may be paid his or her
expenses, if any, of attendance at each meeting of the board of directors,
and may be paid a stated salary as director or a fixed sum for attendance at
each meeting of the board of directors or both. No such payment shall
preclude any director from serving the corporation in any other capacity and
receiving compensation therefor.
SECTION 3.16 PRESUMPTION OF ASSENT.
A director of the corporation who is present at a meeting of the board
of directors at which action on any corporate matter is taken shall be
presumed to have assented to the action taken unless his or her dissent shall
be entered in the minutes of the meeting or unless he or she shall file his
or her written dissent to such action with the person acting as the secretary
of the meeting before the adjournment thereof or shall forward such dissent by
registered mail to the secretary of the corporation immediately after the
adjournment of the meeting. Such right to dissent shall not apply to a
director who voted in favor of such action.
SECTION 3.17 LIMITATIONS ON LIABILITY.
To the fullest extent permitted by the Colorado Business Corporation
Act as the same exists or may hereafter be amended, a director of the
corporation shall not be liable to the corporation or its stockholders for
monetary damages for any action taken or any failure to take any action as a
director. Notwithstanding the foregoing, a director will have liability for
monetary damages for a breach or failure which involves: (i) a violation of
criminal law; (ii) a transaction from which the director derived an improper
personal benefit, either directly or indirectly; (iii) distributions in
violation of the Colorado Business Corporation Act or the Articles of
Incorporation of the corporation (but only to the extent provided by law);
(iv) willful misconduct or disregard for the best interests of the
corporation concerning any acts or omissions concerning any proceeding other
than in the right of the corporation or a shareholder; or (v) reckless,
malicious or wanton acts or omissions concerning any proceeding other than in
the right of the corporation or of a shareholder. No repeal, amendment or
modification of this Article, whether direct or indirect, shall eliminate or
reduce its effect with respect to any act or omission of a director of the
corporation occurring prior to such repeal, amendment or modification.
SECTION 3.18 INDEMNIFICATION.
Subject to and in accordance with the Colorado Business Corporation Act,
and except as may be expressly limited by the Articles of Incorporation and
any amendments thereto, the corporation shall indemnify any person:
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(i) made a party to any proceeding (other than an action by, or
in the right of, the corporation) by reason of the fact that he is or was a
director, officer, employee or agent of the corporation, or is or was serving
at the corporation's request, as a director, officer, employee or agent of
another corporation, or other enterprise; or,
(ii) who was or is a party to any proceeding by or in the right of
the corporation, to procure a judgement in its favor by reason of the fact
that he is or was a director, officer, employee, or agent of the corporation
or is or was serving at the request of the corporation as a director, officer,
employee, or agent of another corporation, partnership, joint venture, trust,
or other enterprise. This indemnification shall be mandatory in all
circumstances in which indemnification is permitted by law.
The corporation may maintain indemnification insurance regardless of
its power to indemnify under the Colorado Business Corporation Act.
The corporation may make any other or further indemnification or
advancement of expenses of any of the directors, officers, employees or agents
under any bylaw, agreement, vote of shareholders or disinterested directors
or otherwise, both as to action in his or her official capacity and to action
in another capacity while holding such office, except an indemnification
against material criminal or unlawful misconduct as set forth by statute, or
as to any transaction wherein the director derived an improper personal
benefit.
Except to the extent reimbursement shall be mandatory in accordance
herewith, the corporation shall have the right to refuse indemnification, in
whole or in part, in any instance in which the person to whom indemnification
would otherwise have been applicable, if he or she unreasonably refused to
permit the corporation, at its own expense and through counsel of its own
choosing, to defend him or her in the action, or unreasonably refused to
cooperate in the defense of such action.
ARTICLE 4
OFFICERS
SECTION 4.1 NUMBER.
The officers of the corporation shall be a president, a secretary, and a
treasurer, each of whom shall be elected by the board of directors. Such
other officers as may be deemed necessary may be elected or appointed by the
board of directors. Any two or more offices may be held by the same person.
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SECTION 4.2 ELECTION AND TERM OF OFFICE.
The officers of the corporation to be elected by the board of directors
shall be elected annually by the board of directors at the first meeting of
the board of directors held after the annual meeting of the shareholders. If
the election of officers shall not be held at such meeting, such election
shall be held as soon thereafter as practicable. Each officer shall hold
office until his or her successor shall have been duly elected and shall have
qualified or until his or her death or until he or she shall resign or shall
have been removed in the manner hereinafter provided.
SECTION 4.3 REMOVAL.
Any officer or agent may be removed by the board of directors whenever
in its judgement the best interests of the corporation will be served thereby,
but such removal shall be without prejudice to the contract rights, if any,
of the person so removed. Election or appointment of an officer or agent
shall not of itself create contract rights.
SECTION 4.4 VACANCIES.
A vacancy in any office because of death, resignation, removal,
disqualification or otherwise, may be filled by the board of directors for the
unexpired portion of the term.
SECTION 4.5 PRESIDENT.
The president shall be the chief executive officer of the corporation
and, subject to the control of the board of directors, shall in general
supervise and control all of the business and affairs of the corporation. He
or she shall, when present, and in the absence of a chairman of the board,
preside at all meetings of the shareholders and of the board of directors. He
or she may sign, with the secretary or any other proper officer of the
corporation thereunto authorized by the board of directors, certificates for
shares of the corporation and deeds, mortgages, bonds, contracts, or other
instruments which the board of directors has authorized to be executed,
excepted in cases where the signing and execution thereof shall be expressly
delegated by the board of directors or by these bylaws to some other officer
or agent of the corporation, or shall be required by law to be otherwise
signed or executed; and in general shall perform all duties incident to the
office of president and such other duties as may be prescribed by the board
of directors from time to time.
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SECTION 4.6 VICE PRESIDENT.
If elected or appointed by the board of directors, the vice president (or
in the event there be more than one vice president, the vice presidents in
the order designated at the time of their election, or in the absence of any
designation, then in the order of their election) shall, in the absence of
the president or in the event of his or her death, inability or refusal to
act, perform all duties of the president, and when so acting, shall have all
the powers of and be subject to all the restrictions upon the president. Any
vice president may sign, with the treasurer or an assistant treasurer or the
secretary or an assistant secretary, certificates for shares of the
corporation; and shall perform such other duties as from time to time may be
assigned to him or her by the president or by the board of directors.
SECTION 4.7 SECRETARY.
The secretary shall: (a) keep the minutes of the proceedings of the
shareholders and of the board of directors in one or more books provided for
that purpose; (b) see that all notices are duly given in accordance with the
provisions of these bylaws or as required by law; (c) be custodian of the
corporate records and of the seal of the corporation and see that the seal of
the corporation is affixed to all documents the execution of which on behalf
of the corporation under its seal is duly authorized; (d) keep a register of
the post office address of each shareholder which shall be furnished to the
secretary by such shareholder; (e) sign with the chairman or vice chairman of
the board of directors, or the president, or a vice president, certificates
for shares of the corporation, the issuance of which shall have been
authorized by resolution of the board of directors; (f) have general charge
of the stock transfer books of the corporation; and (g) in general perform
all duties incident to the office of secretary and such other duties as from
time to time may be assigned to him or her by the president or by the board
of directors.
SECTION 4.8 TREASURER.
The treasurer shall: (a) have charge and custody of and be responsible
for all funds and securities of the corporation; (b) receive and give
receipts for moneys due and payable to the corporation from any source
whatsoever, and deposit all such moneys in the name of the corporation in
such banks, trust companies or other depositories as shall be selected in
accordance with the provisions of Article 5 of these bylaws; and (c) in
general perform all of the duties incident to the office of treasurer and
such other duties as from time to time may be assigned to him or her by the
president or by the board of directors.
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SECTION 4.9 ASSISTANT SECRETARIES AND ASSISTANT TREASURERS.
The assistant secretaries, when authorized by the board of directors,
may sign with the chairman or vice chairman of the board of directors or the
president or a vice president certificates for shares of the corporation the
issuance of which shall have been authorized by a resolution of the board of
directors. The assistant secretaries and assistant treasurers, in general,
shall perform such duties as shall be assigned to them by the secretary or
the treasurer, respectively, or by the president or the board of directors.
SECTION 4.10 BONDS.
If the board of directors by resolution shall so require, any officer or
agent of the corporation shall give bond to the corporation in such amount
and with such surety as the board of directors may deem sufficient,
conditioned upon the faithful performance of their respective duties and
offices.
SECTION 4.11 SALARIES.
The salaries of the officers shall be fixed from time to time by the board
of directors and no officer shall be prevented from receiving such salary by
reason of the fact that he or she is also a director of the corporation.
ARTICLE 5
CONTRACTS, LOANS, CHECKS AND DEPOSITS
SECTION 5.1 CONTRACTS.
The board of directors may authorize any officer or officers, agent or
agents, to enter into any contract or execute and deliver any instrument in
the name of and on behalf of the corporation, and such authority may be
general or confined to specific instances.
SECTION 5.2 LOANS.
No loans shall be contracted on behalf of the corporation and no
evidences of indebtedness shall be issued in its name unless authorized by a
resolution of the board of directors. Such authority may be general or
confined to specific instances.
SECTION 5.3 CHECKS, DRAFTS, ETC.
All checks, drafts or other orders for the payment of money, notes or
other evidences of indebtedness issued in the name of the corporation shall
be signed by such officer or officers, agent or agents of the corporation and
in such manner as shall from time to time be determined by resolution of the
board of directors.
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SECTION 5.4 DEPOSITS.
All funds of the corporation not otherwise employed shall be deposited
from time to time to the credit of the corporation in such banks, trust
companies or other depositories as the board of directors may select.
ARTICLE 6
SHARES, CERTIFICATES FOR SHARES AND TRANSFER OF SHARES
SECTION 6.1 REGULATION.
The board of directors may make such rules and regulations as it may deem
appropriate concerning the issuance, transfer and registration of certificates
for shares of the corporation, including the appointment of transfer agents
and registrars.
SECTION 6.2 CERTIFICATES FOR SHARES.
Certificates representing shares of the corporation shall be
respectively numbered serially for each class of shares, or series thereof,
as they are issued, shall be impressed with the corporate seal or a facsimile
thereof, and shall be signed by the chairman or vice-chairman of the board of
directors or by the president or a vice president and by the treasurer or an
assistant treasurer or by the secretary or an assistant secretary; provided
that such signatures may be facsimile if the certificate is counter-signed by
a transfer agent, or registered by a registrar other than the corporation
itself or its employee. Each certificate shall state the name of the
corporation, the fact that the corporation is organized or incorporated under
the laws of the state of Colorado, the name of the person to whom issued, the
date of issue, the class (or series of any class), the number of shares
represented thereby and the par value of the shares represented thereby or a
statement that such shares are without par value. A statement of the
designations, preferences, qualifications, limitations, restrictions and
special or relative rights of the shares of each class shall be set forth in
full or summarized on the face or back of the certificates which the
corporation shall issue, or in lieu thereof, the certificate may set forth
that such a statement or summary will be furnished to any shareholder upon
request without charge. Each certificate shall be otherwise in such form as
may be prescribed by the board of directors and as shall conform to the rules
of any stock exchange on which the shares may be listed.
The corporation shall not issue certificates representing fractional
shares and shall not be obligated to make any transfers creating a fractional
interest in a share of stock. The corporation may, but shall not be
obligated to, issue scrip in lieu of any fractional shares, such scrip to
have terms and conditions specified by the board of directors.
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SECTION 6.3 CANCELLATION OF CERTIFICATES.
All certificates surrendered to the corporation for transfer shall be
canceled and no new certificates shall be issued in lieu thereof until the
former certificate for a like number of shares shall have been surrendered
and canceled, except as herein provided with respect to lost, stolen or
destroyed certificates.
SECTION 6.4 LOST, STOLEN OR DESTROYED CERTIFICATES.
Any shareholder claiming that his or her certificate for shares is lost,
stolen or destroyed may make an affidavit or affirmation of that fact and
lodge the same with the secretary of the corporation, accompanied by a signed
application for a new certificate. Thereupon, and upon the giving of a
satisfactory bond of indemnity to the corporation not exceeding an amount
double the value of the shares as represented by such certificate (the
necessity for such bond and the amount required to be determined by the
president and treasurer of the corporation), a new certificate may be issued
of the same tenor and representing the same number, class and series of
shares as were represented by the certificate alleged to be lost, stolen or
destroyed.
SECTION 6.5 TRANSFER OF SHARES.
Subject to the terms of any shareholder agreement relating to the
transfer of shares or other transfer restrictions contained in the Articles
of Incorporation or authorized therein, shares of the corporation shall be
transferable on the books of the corporation by the holder thereof in person
or by his or her duly authorized attorney, upon the surrender and
cancellation of a certificate or certificates for a like number of shares.
Upon presentation and surrender of a certificate for shares properly endorsed
and payment of all taxes therefor, the transferee shall be entitled to a new
certificate or certificates in lieu thereof. As against the corporation, a
transfer of shares can be made only on the books of the corporation and in
the manner hereinabove provided, and the corporation shall be entitled to
treat the holder of record of any share as the owner thereof and shall not be
bound to recognize any equitable or other claim to or interest in such share
on the part of any other person, whether or not it shall have express or
other notice thereof, save as expressly provided by the statutes of the state
of Colorado.
ARTICLE 7
FISCAL YEAR
The fiscal year of the corporation shall end on the last day of March
each year.
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ARTICLE 8
DIVIDENDS
The board of directors may from time to time declare, and the
corporation may pay, dividends on its outstanding shares in the manner and
upon the terms and conditions provided by law and its Articles of
Incorporation.
ARTICLE 9
CORPORATE SEAL
The board of directors shall provide a corporate seal which shall be
circular in form and shall have inscribed thereon the name of the corporation
and the state of incorporation and the words "CORPORATE SEAL."
ARTICLE 10
WAIVER OF NOTICE
Whenever any notice is required to be given under the provisions of
these bylaws or under the provisions of the Articles of Incorporation or
under the provisions of the Colorado Business Corporation Act, or otherwise,
a waiver thereof in writing, signed by the person or persons entitled to such
notice, whether before or after the event or other circumstance requiring
such notice, shall be deemed equivalent to the giving of such notice.
ARTICLE 11
AMENDMENTS
These bylaws may be altered, amended or repealed and new bylaws may be
adopted by a majority of the directors present at any meeting of the board of
directors of the corporation at which a quorum is present.
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ARTICLE 12
EXECUTIVE COMMITTEE
SECTION 12.1 APPOINTMENT.
The board of directors by resolution adopted by a majority of the full
board, may designate two or more of its members to constitute an executive
committee. The designation of such committee and the delegation thereto of
authority shall not operate to relieve the board of directors, or any member
thereof, of any responsibility imposed by law.
SECTION 12.2 AUTHORITY.
The executive committee, when the board of directors is not in session,
shall have and may exercise all of the authority of the board of directors
except to the extent, if any, that such authority shall be limited by the
resolution appointing the executive committee and except also that the
executive committee shall not have the authority of the board of directors in
reference to amending the Articles of Incorporation, adopting a plan of
merger or consolidation, recommending to the shareholders the sale, lease or
other disposition of all or substantially all of the property and assets of
the corporation otherwise than in the usual and regular course of its
business, recommending to the shareholders a voluntary dissolution of the
corporation or a revocation thereof, or amending the bylaws of the
corporation.
SECTION 12.3 TENURE AND QUALIFICATIONS.
Each member of the executive committee shall hold office until the next
regular annual meeting of the board of directors following his or her
designation and until his or her successor is designated as a member of the
executive committee and is elected and qualified.
SECTION 12.4 MEETINGS.
Regular meetings of the executive committee may be held without notice
at such time and places as the executive committee may fix from time to time
by resolution. Special meetings of the executive committee may be called by
any member thereof upon not less than one day's notice stating the place,
date and hour of the meeting, which notice may be written or oral, and if
mailed, shall be deemed to be delivered when deposited in the United States
mail addressed to the member of the executive committee at his or her
business address. Any member of the executive committee may waive notice of
any meeting and no notice of any meeting need be given to any member thereof
who attends in person. The notice of a meeting of the executive committee
need not state the business proposed to be transacted at the meeting.
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SECTION 12.5 QUORUM.
A majority of the members of the executive committee shall constitute a
quorum for the transaction of business at any meeting thereof, and action of
the executive committee must be authorized by the affirmative vote of a
majority of the members present at a meeting at which a quorum is present.
SECTION 12.6 INFORMAL ACTION BY EXECUTIVE COMMITTEE.
Any action required or permitted to be taken by the executive committee
at a meeting may be taken without a meeting if a consent in writing,
setting forth the action so taken, shall be signed by all of the directors
entitled to vote with respect to the subject matter thereof.
SECTION 12.7 VACANCIES.
Any vacancy in the executive committee may be filled by a resolution
adopted by a majority of the full board of directors.
SECTION 12.8 RESIGNATIONS AND REMOVAL.
Any member of the executive committee may be removed at any time with or
without cause by resolution adopted by a majority of the full board of
directors. Any member of the executive committee may resign from the
executive committee at any time by giving written notice to the president or
secretary of the corporation, and unless otherwise specified therein, the
acceptance of such resignation shall not be necessary to make it effective.
SECTION 12.9 PROCEDURE.
The executive committee shall elect a presiding officer from its members
and may fix its own rules of procedure which shall not be inconsistent with
these bylaws. It shall keep regular minutes of its proceedings and report the
same to the board of directors for its information at the meeting thereof
held next after the proceedings shall have been taken.
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ARTICLE 3
EMERGENCY BYLAWS
The emergency bylaws provided in this Article 13 shall be operative
during any emergency in the conduct of the business of the corporation
resulting from an attack on the United States or any nuclear or atomic
disaster, notwithstanding any different provision in the preceding articles
of the bylaws or in the Articles of Incorporation or in the Colorado Business
Corporation Act. To the extent not inconsistent with the provisions of this
Article, the bylaws provided in the preceding articles shall remain in effect
during such emergency and upon its termination the emergency bylaws shall
cease to be operative.
During any such emergency:
A. A meeting of the board of directors may be called by any officer or
director of the corporation. Notice of the time and place of the meeting
shall be given by the person calling the meeting to such of the directors as
it may be feasible to reach by any available means of communication. Such
notice shall be given at such time in advance of the meeting as circumstances
permit in the judgment of the person calling the meeting.
B. At any such meeting of the board of directors, a quorum shall
consist of the number of directors in attendance at such meeting.
C. The board of directors, either before or during any such emergency,
may, effective in the emergency, change the principal office or designate
several alternative principal offices or regional offices, or authorize the
officers so to do.
D. The board of directors, either before or during any such emergency,
may provide, and from time to time modify, lines of succession in the event
that during an emergency any or all officers or agents of the corporation
shall for any reason be rendered incapable of discharging their duties.
E. No officer, director or employee acting in accordance with these
emergency bylaws shall be liable except for willful misconduct.
F. These emergency bylaws shall be subject to repeal or change by
further action of the board of directors or by action of the shareholders,
but no such repeal or change shall modify the provisions of the next
paragraph with regard to action taken prior to the time of such repeal or
change. Any amendment of these emergency bylaws may make any further or
different provision that may be practical and necessary for the circumstances
of the emergency.
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CERTIFICATE
I hereby certify that the foregoing First Amended and Restated Bylaws
constitute the bylaws of New Frontier Media, Inc. adopted by the board of
directors of the corporation as of July 15, 1997.
---------------------------------------
Michael Weiner
Secretary
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<PAGE>
Special Meeting of the Board of Directors
of
NEW FRONTIER MEDIA, INC.
A Colorado Corporation
A special meeting of the Board of Directors of New Frontier Media, Inc.,
a Colorado corporation (the "Company") was held at 1:00 p.m. on July 15,
1997, pursuant to the terms of the Company's Bylaws and the Colorado Business
Corporation Act. All directors were present.
The Board of Directors received and reviewed the proposed First Amended
and Restated Bylaws of the Company, and unanimously adopted the following
resolution:
RESOLVED, that the First Amended and Restated Bylaws of New Frontier
Media, Inc., a copy of which is attached hereto and incorporated herein by
reference, are hereby approved and adopted by the Company's Board of
Directors, effective immediately.
There was no other business brought before the meeting, and the meeting
was adjourned at 1:45 p.m.
- ------------------------------------
Michael Weiner, Secretary
<PAGE>
[LETTERHEAD]
October 23, 1997
Board of Directors
New Frontier Media, Inc.
1050 Walnut Street.
Suite 301
Boulder, Colorado 80302
Re: LEGALITY OF SECURITIES BEING OFFERED PURSUANT TO
REGISTRATION STATEMENT ON FORM SB-2
Gentlemen:
This firm has acted as securities counsel to you (the "Company") in
connection with the Registration Statement on Form SB-2 (Registration No.
333-35337, hereinafter the "Registration Statement") pertaining to the
registration of up to 1,500,000 shares (the "Shares") if the Company's Common
Stock, $.0001 par value (the "Common Stock"), being offered by the Company,
up to 225,000 additional shares of Common Stock being registered for sale
pursuant to an overallotment option (the "Option Shares"), and an additional
150,000 shares of Common Stock to be issued upon exercise of the
Underwriter's Warrant (the "Warrant Shares"), the terms of which are set
forth in an Exhibit to the Registration Statement.
In that connection, we have examined originals, or copies certified or
otherwise identified to our satisfaction, of such documents, corporate
records and other instruments as we have deemed necessary for the purposes of
this opinion and consent. For purposes of this opinion and consent, we have
assumed the authenticity of all documents submitted to us as copies, and the
authenticity of the originals of all documents submitted to us as copies. We
have also assumed the genuineness of the signatures of persons signing all
documents in connection with which this opinion is rendered, the authority of
such persons signing on behalf of the parties thereto other than the Company,
and the due authorization, execution and delivery of all documents by the
parties thereto other than the Company.
Based on the foregoing, we are of the opinion that:
(1) The Company is a corporation validly existing and in good standing
under the laws of the State of Colorado.
(2) The Shares, Option Shares, and Warrant Shares have been duly
authorized and when they are issued pursuant to the terms set forth in the
Registration Statement will be validly issued, fully paid and non-assessable.
<PAGE>
Board of Directors
New Frontier Media, Inc.
October 23, 1997
Page Two
We hereby consent to the reference to this firm in the Registration
Statement, under the heading "LEGAL MATTERS," and further consent to the
filing of this option and consent as exhibits 5.01 and 23.03 thereto.
Yours truly,
KRAUSMAN, L.L.C.
/s/ Kent D. Krausman
Kent D. Krausman
KDK/mm
<PAGE>
ASSET PURCHASE AGREEMENT
This Asset Purchase Agreement (the "Agreement") is made to be effective
September 5, 1997 (the "Effective Date"), among NEW FRONTIER MEDIA, INC., a
Colorado corporation, COLORADO SATELLITE BROADCASTING, INC. ("Buyer"), a
wholly owned subsidiary of New Frontier Media, Inc., and FIFTH DIMENSION
COMMUNICATIONS (BARBADOS) INC., a Barbados corporation, and MERLIN SIERRA,
INC., a California corporation. New Frontier Media, Inc. and Buyer are
collectively referred to in this Agreement as "Buyers." Fifth Dimension
Communications (Barbados) Inc. and Merlin Sierra, Inc. are each referred to
in this Agreement as "Seller" and collectively referred to as "Sellers".
This Agreement sets forth the terms and conditions upon which Buyers
agree to purchase from Sellers, and Sellers agree to sell to Buyers, certain
properties and assets of Sellers ("Subject Assets") relating to the "Adult
Movies Business" of Sellers.
NOW THEREFORE, in consideration of the mutual covenants, agreements,
representations and warranties contained in this Agreement, the parties agree
as follows:
DEFINITIONS
"104 Agreement" means the asset purchase agreement made on the same date as
this Agreement among the Buyers and 1043133 Ontario Inc.
"124 Agreement" means the asset purchase agreement made on the same date as
this Agreement among the Buyers and 1248663 Ontario Inc., wherein the Buyers
agreed to purchase certain satellite uplinking and playback equipment and
certain call center equipment and related assets from 1248663 Ontario Inc.
and Merlin Sierra, Inc.
"5DBC" means Fifth Dimension Communications (Barbados) Inc.
"Adult Movies Business" means any and all present or contemplated satellite
broadcast services on television or any other medium, including cable
television and the Internet, which broadcasts, replays, and/or otherwise
exploits feature length adult programming and all related promotional content
and other programming of a non-rated or X-rated nature and whose main theme
embodies nudity and/or sexually explicit material between consenting adults
and such other related business assets as are necessary for the operation
thereof.
"adverse or adversely", when used alone or in conjunction with other terms
(including without limitation "affect," "change" and "effect"), means any
event discovered by either party after the date hereof which is reasonably
likely in the respective business judgment of either Buyers or Sellers, as
the case may be, to be expected to (a) adversely affect the validity or
enforceability of this Agreement, or (b) adversely affect the business,
operation, management or properties of Sellers taken as a whole or Buyers, or
(c) impair Sellers or Buyers, or (d) adversely affect the respective
aggregate rights and remedies of either party under this Agreement.
Notwithstanding
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the foregoing no event affecting the adult movie industry generally shall be
deemed to constitute an adverse change, have an adverse effect or to
adversely affect or effect.
"Agreement" means this Agreement as originally in effect, including unless
the context otherwise specifically requires, all schedules and all exhibits
hereto, and as any of the same may from time to time be supplemented,
amended, modified or restated in the manner herein or therein provided.
"Applicable Law" shall mean any Law of any Authority, whether domestic or
foreign, including without limitation all federal and state securities and
environmental laws, to which a person or entity is subject or by which it or
any of its business or operations is subject or any of its property or assets
is bound.
"Authority" means any governmental or quasi-governmental authority, whether
administrative, executive, judicial, legislative or other, or any combination
thereof, including without limitation, any federal, provincial, state,
territorial, county, municipal or other government or governmental or
quasi-governmental agency, arbitrator, authority, board, body, branch,
bureau, central bank or comparable agency, or Entity, commission,
corporation, court, department, instrumentality, master, mediator, panel,
referee, system, or other political unit or subdivision or other Entity of
any of the foregoing whether domestic or foreign.
"Buyers' Disclosure Schedule" means the schedule attached as SCHEDULE 8.2(a).
"Closing" means the closing of the transactions contemplated herein and
"Closing Date" means the date on which the closing takes place.
"Collateral Agreements" means agreements and other documents executed or
required to be executed pursuant to the terms of this Agreement.
"Entity" means any corporation, firm, unincorporated organization,
association, partnership, limited liability company, trust (inter vivos or
testamentary), estate of a deceased, individual, business trust, joint stock
company, joint venture or other organization, entity or business, whether
acting in an individual, fiduciary or other capacity, or any Authority.
"Governmental Authorizations" means all approvals, concessions, consents,
franchises, licenses, permits, and other authorizations of all applicable
Authorities.
"material, materially or materiality", unless specifically stated otherwise,
shall be determined without regard to the fact that various provisions of
this Agreement set forth specific dollar amounts.
"Merlin" means Merlin Sierra, Inc.
"New Frontier" means New Frontier Media, Inc.
"Private Authorizations" means all approvals, concessions, consents,
franchises, licenses, permits, and other authorizations of all persons (other
that Authorities) including without
2
<PAGE>
limitation those with respect to copyrights, computer software programs,
patents, service marks, trademarks, trade names, technology and know-how.
"Subject Assets" means:
(a) any and all trademarks, proprietary rights and other intellectual
property rights owned by Sellers and associated with the Adult Movies
Business. These include but are not necessarily limited to the trade
names, trademarks and/or service marks listed on SCHEDULE 1(a),
"Trademarks List," and any goodwill associated with such trade names,
trademarks and/or service marks;
(b) any and all rights Sellers may have in adult programming in any format
(including master tapes) of feature length films and other films and
programming, interstitial or otherwise, that contain motion picture
material that is non-rated or X-rated and whose main theme embodies
nudity and/or sexually explicit material between consenting adults,
and all promotional materials and programming related thereto as set
forth in SCHEDULE 1(b), "Programming List." No representation or
warranty is made with respect to the nature and extent of the rights
Sellers may have in such programming;
(c) all subscriptions for the Adult Movies Business services as of the
Date of Closing, including all subscriber lists, past and present, and
any other marketing data related thereto, in the possession of
Sellers, as described in SCHEDULE 1(c), "Subscribers List" (and it is
understood that the subscriber lists shall be delivered on disk(s) in
electronic form only because of the length of such lists);
(d) a complete list of all advertisers, marketing partners and vendors
used by Sellers in relations to the Adult Movies business and related
services, with contact names, mailing addresses, and phone and fax
numbers; as set forth in SCHEDULE 1(d) "Vendors List";
(e) all rights, title and interest Sellers may have in 1-800 phone numbers
used for the Adult Movies Business and related services and in any
World Wide Web address and websites used in the Adult Movies Business;
(f) upon request of Buyers, Sellers shall provide copies of all papers,
computerized databases, and records in Sellers' custody or control
relating to any or all of the above described assets and the operation
of Sellers' Adult Movies Business, including but not limited to all
sales and subscription records, maintenance and production records,
and plans and designs of all structures, fixtures and equipment, but
excluding accounting and financial records and personnel and labor
relations records;
(g) all rights, title and interests in any permits, licenses, franchises,
consents or authorizations issued by, and all registrations and
filings with, any government agency solely in connection with Adult
Movies Business of Sellers, whenever
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<PAGE>
issued or filed, (including but not limited to any permits or licenses
from the Canadian Radio-Television and Telecommunications Commission
and any permits or licenses from the Federal Communications Commission)
excepting only those which by law are non-transferable or those which
have expired;
(h) any tort or insurance proceeds arising out of any damages or
destruction of any of the Subject Assets herein between the date of
this Agreement and the Closing Date to the extent required to repair
or replace any subject asset being acquired hereunder; and
(i) all other assets to be transferred from Sellers to Buyer under
SECTION 1 of this Agreement.
"Transactions" means the transactions contemplated by this Agreement and all
Collateral Agreements.
ARTICLE 1. TRANSFER OF ASSETS
Subject to the terms and conditions set forth in this Agreement, Sellers
agree to sell, convey, transfer, assign and deliver to Buyer, and Buyers
agree to purchase from Sellers at the Closing described in ARTICLE 3, all of
the Subject Assets, whether tangible, intangible, real, personal or mixed,
and wherever located, including those assets set forth in the lists of
SCHEDULES 1(a) through (d) and as further described in this ARTICLE 1.
1.1 TRANSPONDER SUBLEASES. Pursuant to SCHEDULE 1.1, the Transponder Sublease
Agreements, 5DBC and its successors or assigns agree to sublease to Buyer,
all rights, title and interests 5DBC may have in and pursuant to the
Agreement between 5DBC and AT&T Corp. concerning Skynet Transponder Service
dated November 21, 1996, and the Agreement between 5DBC and Loral Skynet
concerning Skynet Transponder service dated April 29, 1997 ("Skynet
Transponder Agreements"). The terms and conditions of the Subleases to Buyer
shall be the substantially identical to the terms and conditions of the
Skynet Transponder Agreements. Buyer shall have the right to upgrade, if
available, the rights and interest under the Transponder Sublease Agreements
(for example, to a "Silver Service") at Buyers' expense. For each
Transponder Sublease Agreement, Buyer shall furnish and maintain throughout
the terms of the Skynet Transponder Agreements, to the lessors under the
Skynet Transponder Agreements, a security deposit in an amount equal to one
month of the monthly rate to be paid by 5DBC for the service provided under
the applicable Skynet Transponder Agreement. The deposit may be in the form
of cash or its equivalent or an acceptable letter of credit. Payments under
the Transponder Sublease Agreements shall be due five (5) working days before
the date on which payments by 5DBC are due pursuant to the applicable Skynet
Transponder Agreements. Ml payments under the Transponder Sublease Agreements
by Buyer shall be applied directly to 5DBC's obligations under the Skynet
Transponder Agreements. The Buyer shall be entitled to any renewal rights
5DBC may have pursuant to the Skynet Transponder Agreements. New Frontier
shall guarantee the obligations Buyer will have under the Transponder
Sublease Agreements. If 5DBC is in default of or cannot otherwise perform
its obligations under the Skynet Transponder Agreements
4
<PAGE>
(which reasons shall include the insolvency or bankruptcy of 5DBC), 5DBC
agrees to assign, according to the to the terms of those agreements and
contingent upon acceptance and approval of the assignments by the lessors
thereto, its interests in the Skynet Transponder Agreements to Buyers.
1.2 FUTURE SATELLITE RIGHTS. Buyers shall have a right of first refusal to
obtain satellite transponder service rights on Nahuel, AsiaSat and IntelSat
satellites to the extent 5DBC may have such rights in such satellites and
desires to sublease those transponder service rights to third parties for use
in Adult Movies Programming.
ARTICLE 2. PURCHASE PRICE
2.1 PAYMENT OF PURCHASE PRICE. In consideration for the transfer and
assignment of the Subject Assets and in consideration of the representations,
warranties and covenants of Sellers set forth herein, Buyers on the
conditions set forth herein:
(a) shall pay, subject to ARTICLE 5, an earnest money deposit in the
amount of US$85,000.00;
(b) shall deliver to Sellers at the Closing (as hereinafter defined)
US$2,339,828.00 plus taxes as provided in ARTICLE 6, payable in cash
as more fully described in SECTION 3.2;
(c) shall deliver at the Closing a promissory note in the amount of
US$814,289.00 executed by Buyer and payable to Sellers in the form
substantially similar to that set forth in SCHEDULE 2.1(c). Buyer's
performance under the promissory note shall be guaranteed by New
Frontier. Additionally, in order to secure Buyer's obligations
pursuant to the promissory note, at the Closing Buyer shall execute
and deliver to Sellers a security agreement in the form attached as
Exhibit A to SCHEDULE 2.1(c) pursuant to which Buyer shall grant to
Sellers a security interest/lien in all of its furniture, fixtures,
equipment and inventory, ranking first in priority over all other
security interests/lienholders, except the interests of Buyers' chief
financial institutions which shall have a first priority up to an
amount of US$2,000,000.00;
(d) shall deliver to Sellers at the Closing Date, a certificate
for 840,000 shares of common stock of New Frontier, such shares to
be "restricted" from transfer as that term is defined by Rule 144
promulgated under the Securities Act of 1933, as amended, duly
registered in the name of Sellers (or such other parties as Sellers
may direct) equivalent in value to US$3,402,000.00, the value of
which is agreed to be US$4.05 per share, and which was determined
by allowing a 19% discount of the closing bid price on New Frontier's
"free-trading" common stock on April 14, 1997;
(e) shall deliver to Sellers (or to such other parties as Sellers may
direct) at the
5
<PAGE>
Closing Date and subject to SCHEDULE 2.1(e), the "Warrant Purchase
Agreement," a total of 400,000 warrants for New Frontier common stock
exerciseable at US$5.00 per share;
(f) shall pay to Sellers any and all "Formula Profits" exceeding
US$2,000,000.00 in the first twelve months of operations of the
business by Buyer after the Closing Date. "Formula Profits" shall
equal the total revenue derived from operations less the actual
operating costs of Buyer, provided that for the purposes of
calculating Formula Profits the amount attributed to operating costs
shall not exceed 125% of the projected costs as set forth in SCHEDULE
2.1(f), the "Valuation of the Adult Business Companies as of March 31,
1997." Formula Profits shall be payable by Buyer to Sellers within
three months after the completion of the first twelve months of
operation of the business by Buyer. If Formula Profits are not paid
within such three month period, Buyer shall pay to Sellers interest on
the outstanding balance of Formula Profits, such interest to be
calculated at 24% per annum from the last day of such three month
period, compounded daily, and payable on the last day of every
calendar month. New Frontier hereby guarantees Buyer's obligations
under this SECTION 2.1(f); and
(g) shall assume and discharge, and shall indemnify Sellers against,
liabilities and obligations of Sellers under the leases, contracts or
other agreements, if any, specified on SCHEDULE 4 but only to the
extent that such liabilities or obligations accrue on or after the
Closing Date.
2.2 ALLOCATION OF THE PURCHASE PRICE. The parties agree that the Purchase Price
(defined as the sum of the amounts specified in SECTIONS 2.1 (b) and (c) above
and the transfer of the stocks and warrants as referred to in SECTIONS 2.1 (d)
and (e) above) shall be allocated as set forth in SCHEDULE 2.2 and that such
allocation will be used by the parties in reporting the transaction contemplated
by this Agreement for tax purposes.
ARTICLE 3. THE CLOSING
The closing of the purchase and sale of the Subject Assets by Sellers to
Buyers (the "Closing") shall take place at 2500 Don Reid Drive, Ottawa,
Ontario, sixty-four (64) days after the date of this Agreement or at such
other place and/or time as the parties may agree in writing (the "Closing
Date"). In the event that the conditions specified in this Agreement have
not be fulfilled by such date, either Sellers or Buyers may extend the
Closing Date for a period or periods not exceeding an aggregate of thirty
(30) days by written notice to the other parties.
3.1 SELLERS' OBLIGATIONS AT CLOSING.
(a) At the Closing Sellers shall deliver or cause to be delivered to
Buyer:
(i) assignment and assumption agreements for personal property
leases, all contracts and agreements of Sellers to be assumed in
connection herewith,
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in form and substance reasonably satisfactory to Buyers' counsel,
and accompanied by all consents required by this Agreement and
the personal property leases, contracts and agreements being
assigned;
(ii) instruments of assignment and transfer (including a bill of sale)
of all the Subject Assets in form and substance reasonably
satisfactory to Buyers' counsel; and
(iii) such other documents as shall be reasonably requested by Buyers
or Buyers' counsel (for example, a BULK SALES ACT affidavit).
(b) Simultaneously, with the consummation of the transfer, Sellers,
through its officers, agents and employees, shall put Buyer into full
possession and enjoyment of all the Subject Assets to be sold,
conveyed, transferred, assigned and delivered by this Agreement.
(c) Sellers, at any time before or after the Closing Date shall execute,
acknowledge, and deliver any further deeds, assignments, conveyances
and other assurances, documents and instruments of transfer,
reasonably requested by Buyers and shall take any other action
consistent with the terms of this Agreement that may be reasonably
requested by Buyers for the purpose of assigning, transferring,
granting, conveying and confirming to Buyers, or reducing to
possession, any or all property and assets to be conveyed or
transferred by this Agreement. If requested by Buyers, Sellers
further agrees to prosecute or otherwise enforce in their own names
for the benefit of Buyers any claims, rights, or benefits that are
transferred to Buyers by this Agreement and that require prosecution
or enforcement in any of Sellers' names. Any prosecution or
enforcement of claims, rights, or benefits under this Section shall be
solely at Buyer's expense, unless the prosecution or enforcement is
made necessary by a breach of this Agreement by Sellers.
3.2 BUYER'S OBLIGATIONS AT CLOSING. At the Closing Buyers shall deliver to
Sellers against delivery of the items specified in SECTION 2.1, a certified bank
or cashier's check, or a wire transfer of immediately available funds, in the
amount of US$2,339,828.00 plus taxes pursuant to ARTICLE 6 payable to Sellers
and the promissory note payable to Sellers in the amount of US$814,289.00.
Sellers shall notify Buyers within five (5) days of the Closing Date whether the
amount payable at Closing shall be delivered by certified bank or cashier's
check, or by wire transfer. At closing, Buyers shall deliver to Sellers such
documents that shall be reasonably requested by Sellers or Sellers' counsel.
ARTICLE 4. ASSUMPTION OF LIABILITIES
Buyers are not assuming any debt, liability or obligation of Sellers, whether
known or unknown, fixed or contingent, except as herein specifically
otherwise provided. Sellers agree to indemnify and hold Buyers harmless
against all debts, claims, liabilities and obligations of Sellers not
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expressly assumed by Buyers hereunder, and to pay any and all attorneys' fees
and legal costs incurred by Buyers, its successors and assigns in connection
therewith. Buyers shall have the benefit of and shall perform and assume all
leases, contracts and agreements, if any, specifically listed on SCHEDULE 4,
in accordance with the terms and conditions thereof, except to the extent
modifications are specifically set forth in SCHEDULE 4 and except to the
extent set forth in the assignments or assignment and assumption agreements
for such leases, contract and agreements.
ARTICLE 5. RETURN OF DEPOSIT
Upon execution of this Agreement, Buyers shall pay to Sellers an earnest
money deposit of US$21,250.00. Upon parties' final acceptance of the form
and content of the schedules to this Agreement, Buyers shall pay to Sellers a
further earnest money deposit of US$63,750.00. Such deposits shall be
returned to Buyers if the Transactions are not closed due to: (a) the failure
of any conditions set forth in ARTICLE 11 to be met at or before the Closing
as a result of any act or omission by Sellers; or (b) the occurrence of any
default by Sellers described in SECTION 17.3. If the Transactions are not
closed for any other reason, the deposit shall be retained by Sellers. Upon
Closing, the deposit shall be applied towards the payment due to Sellers
under SECTION 2.1(b).
ARTICLE 6. TAXES
Buyers shall pay all sales, use and transfer taxes arising out of the
transfer of the Subject Assets, including any foreign transfer taxes and
shall pay its portion, prorated as of the Closing Date, of state, provincial,
and local real and personal property taxes of the business being sold
hereunder; to a maximum of the amount such taxes that would have been payable
if the sale of the Subject Assets had been made by a company located in the
Province of Ontario, Canada. Buyers shall not be responsible for any
business, occupation, withholding or similar tax, or for any income, sales,
use, value-added or similar taxes related to any period, or transaction
occurring during any period, before the Closing Date.
ARTICLE 7. REPRESENTATIONS AND WARRANTIES OF SELLERS
Sellers, jointly and severally, hereby represent and warrant to Buyers that
the following facts and circumstances are and will be at all times up to the
Closing Date, except as contemplated hereby, true and correct, and hereby
acknowledge that such facts and circumstances constitute the basis upon which
Buyers are induced to enter into and perform this Agreement. Each warranty
set forth in this ARTICLE 7 shall survive eighteen (18) months past the
Closing Date and any investigation made by or on behalf of Buyers. Buyers
shall conduct their own due diligence investigation and that investigation
shall include an investigation into whether Sellers is or has operated in
accordance with the warranties and representations of Sellers. If prior to
the closing date, Buyers believe they have discovered any breach of the
representations and warranties of Sellers, they shall forthwith advise
Sellers in writing of such breach. If Sellers does not or cannot cure such
breach prior to the Closing Date, Buyers may elect to close (in which case
the
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breach shall be deemed non-material) or not close provided such breach is
material. If Buyers fail to give such notice then the breach will be deemed
non-material.
7.1 ORGANIZATION, GOOD STANDING AND QUALIFICATION. Each Seller is a
corporation organized, validly existing, and in good standing under the laws
of its jurisdiction of incorporation. Each Seller has all necessary corporate
powers to own its properties and to carry on its business as now owned and
operated by it, and is duly qualified to transact any business and is in good
standing in all jurisdictions in which the nature of its business or its
properties makes such qualification necessary.
7.2 FINANCIAL STATEMENTS. SCHEDULE 7.2(a) is the Combined Financial
Statements for the years ending March 31, 1997 and 1996 for Sellers and
1043133 Ontario Inc., certified by Ernst & Young, chartered accountants,
whose opinions with respect to such financial statements are included into
this Agreement. SCHEDULE 7.2(b) sets forth unaudited combined balance sheets
of Sellers and others as of June 30, 1997 (the "Stub Period Date"), together
with related unaudited combined statements of changes in financial positions
and unaudited combined statements of income and retained earnings for the
three (3) month period then ending, as prepared by Sellers. These financial
statements in SCHEDULES 7.2(a) and (b) are referred to as the "Financial
Statements." The Financial Statements have been prepared in accordance with
generally accepted accounting principles ("GAAP") consistently followed by
Sellers throughout the periods indicated, are complete and correct in all
material respects and accurately and fairly depict the present financial
position of Sellers as of the respective dates of the balance sheets included
in the Financial Statements, and the results of their operations for the
respective periods indicated. Sellers have no liabilities or obligations of
any nature (known or unknown, absolute, accrued, contingent or otherwise) of
the type required to be reflected or disclosed in a balance sheet (or notes
thereto) prepared in accordance with GAAP that were not frilly reflected or
reserved against in the Financial Statements. The Audited Financial
Statements being provided by Sellers shall contain in footnotes or otherwise
information concerning adjustments and add-back payments as reflected on page
7 of the Letter of Understanding dated April 14, 1997 Sellers from New
Frontier, which is attached as SCHEDULE 7.2(c). The Financial Statements
accurately reflect the revenues and expenses of Sellers' Adult Movies
Business.
7.3 ABSENCE OF SPECIFIED CHANGES. Since March 31, 1997, there has not been
any:
(a) adverse material changes in the financial condition, liabilities,
assets, business, operating results or prospects of Sellers with
respect to their Adult Movies Business;
(b) destruction, damage to, or loss of any of the Subject Assets (whether
or not covered by insurance) that materially and adversely effects the
assets, financial condition, business, assets or prospects of Sellers
with respect to their Adult Movies Business;
(c) labor trouble or other event or condition of any character materially
and adversely effecting the financial condition, business, assets or
prospects of Sellers;
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(d) revaluation by Sellers of any of the Subject Assets in a manner that
would be materially adverse to Buyers;
(e) execution, creation, amendment, nonrenewal or termination of any
material contract, agreement or license to which Sellers are a party,
except in the ordinary course of business or except as can be
terminated prior to the Closing Date without materially adversely
effecting the Subject Assets;
(f) creation or assumption by Sellers of any mortgage, pledge, security
interest or lien or other encumbrance on any material asset of Sellers
related to their Adult Movies Business, except as set forth in
SCHEDULE 7.3(f);
(g) receipt by Sellers of notice of any loss of, or material order
cancellation by, any major customers of Sellers, except as set forth
in SCHEDULE 7.3(g);
(h) other event or condition of any character of which Sellers have
knowledge that has or might reasonably have a material adverse effect
on the financial condition, business, assets, operating results or
prospects of their Adult Movies Business, except as set forth in
SCHEDULE 7.3(h); or
(i) agreement by Sellers to do any of the things described in the
preceding clauses (a) through (h).
7.4 SUBJECT ASSETS SUFFICIENT FOR OPERATIONS. The Subject Assets, together
with the "Subject Assets" described in the 124 Agreement and in the 5DBC
Agreement, constitute all assets of Sellers (except premises) which are
necessary for the continued uninterrupted operation by Sellers of its Adult
Movies Business as now conducted. Except as stated in SCHEDULE 4, none of the
Subject Assets are held under any lease, security agreement, conditional
sales, contract, or other title of retention or security agreement, or are in
the possession of anyone other than Sellers.
7.5 TRADE NAMES, TRADEMARKS AND COPYRIGHTS. Except as set forth SCHEDULE IN
7.5, Sellers do not use or own any trademark, service mark, trade name, trade
secret, or brand name in their Adult Movies Business. To the actual
knowledge of Sellers, no person has made any outstanding claims against
Sellers in respect of any trademark, trademark registration or application,
service mark, trade name, copyright, copyright registration or application or
brand name, the use of which is necessary or contemplated in connection with
the performance of any contract to which Sellers are a party.
7.6 TRADE SECRETS. Sellers are not aware of any trade secrets owned by, used
in or necessary for the operation of its Adult Movies Business.
7.7 TITLE TO ASSETS. To the best of Sellers' knowledge, Sellers have good and
marketable title to all the Subject Assets free and clear of mortgages,
liens, pledges, charges, encumbrances, equities, claims, easements, rights of
way, covenants, conditions, or restrictions, except for (i) those disclosed
in Sellers' balance sheet as of the Stub Period Date, included in the
Financial
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Statements, or in the Schedules to this Agreement; (ii) the lien of current
taxes not yet due and payable; and (iii) possible minor matters that, in the
aggregate, are not substantial in amount and do not materially detract from
or interfere with the present or intended use of any of these assets, nor
materially impair the operations of the Adult Movies Business. All the
Subject Assets are in good operating condition and repair, ordinary wear and
tear excepted. Sellers are in possession of all premises leased to it from
others and used in connection with their Adult Movies Business.
7.8 DEALERS AND DISTRIBUTORS. SCHEDULE 7.8 to this Agreement is a correct and
current list of all dealers and distributors of Sellers together with
summaries of the sales made to each customer during the most recent fiscal
year. Except as indicated in SCHEDULE 7.8, Sellers have no information and
are not aware of any facts indicating that any dealers or distributors of the
services offered by their Adult Movies Business intend to cease doing
business with Sellers or alter the amount of the business that they are
presently doing with Sellers where such cessation or alteration would have a
material adverse effect on their Adult Movies Business.
7.9 INSURANCE POLICIES. SCHEDULE 7.9 to this Agreement is a description of
all insurance policies held by Sellers concerning the Subject Assets. All
these policies are in the respective principal amounts set forth in SCHEDULE
7.9. Sellers have maintained and now maintain (a) insurance on all the
Subject Assets of a type customarily insured, covering property damage by
fire or other casualty, and (b) adequate insurance protection against all
liabilities, claims, and risks against which it is customary to insure. Such
insurance coverage will be cancelled as of Closing.
7.10 OTHER CONTRACTS. Copies of all contracts which will be assigned to or
assumed by Buyers under this Agreement are attached as part of SCHEDULE 4.
Except as set forth in SCHEDULE 4 and to the best of Sellers' knowledge, the
Subject Assets will not at Closing or thereafter (as a result of actions or
conduct of Sellers) be bound or potentially bound by, any distributor's or
manufacturer's representative or agency agreement, any output or requirements
agreement, any agreement not entered into in the ordinary course of business,
any indenture, mortgage, deed of trust, lease or any other agreement that is
unusual in nature, duration or amount (including, without limitation, any
agreement requiring the performance by Sellers of any obligation for a period
of time extending beyond one year from Closing Date or calling for
consideration of more than US$10,000.00 or requiring purchases at prices in
excess of, or sales at prices lower than, prevailing market prices). To the
best of Sellers' knowledge, there is no default or event that with notice or
lapse of time, or both, would constitute a default by any party to any of the
agreements listed in SCHEDULE 4 and such contracts remain in full force and
effect. Sellers have not received notice that any party to any of the
agreements listed in SCHEDULE 4 intends to cancel or terminate any of these
agreements or to exercise or not exercise any options under any of these
agreements. Sellers are not parties to, nor are Sellers or the Subject Assets
bound by, any agreement that is materially adverse to the business, assets,
property, operating results, prospects or financial condition of Sellers.
7.11 COMPLIANCE WITH LAWS. Sellers have received no notice of any violation
of any statutes, laws or regulations (including, without limitation any
applicable obscenity, environmental, health, building, zoning, or other law,
ordinance or regulations) from any Authority the violation of which may
materially adversely affect the Adult Movies Business. Sellers are not in
violation of or default under any provisions of their Articles of
Incorporation or Bylaws, both as amended.
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The execution, delivery and performance of the Agreement and the consummation
of the Transactions will not result in any such violation or default, or be
in conflict with or constitute, with or without the passage of time or the
giving of notice or both, a default under Sellers' Articles of Incorporation
or Bylaws, both as amended. To the best of Sellers' actual knowledge, all
licenses, permits, approvals, registrations, qualifications, certificates and
other authorizations necessary for the conduct of Sellers' Adult Movies
Business as presently conducted (the "Licenses") have been duly obtained, are
in full force and effect, and there are no proceedings pending or threatened
which may result in the revocation, cancellation, suspension or modification
of any of such Licenses.
7.12 LITIGATION. There is no suit, action, arbitration or legal,
administrative or other proceeding, or governmental investigation ("Actions")
pending or, to the best knowledge of Sellers, threatened, against or
affecting Sellers, or any of its business, assets or financial condition, or
against any officer, director or employee of Sellers in connection with such
officer's, director's or employee's relationship with or actions taken on
behalf of Sellers. Sellers are not party to or subject to the provisions of
any order, writ, injunction, judgment or decree of any court or government
agency or instrumentality, and there are no actions or claims by Sellers
currently pending or, to which Sellers intend to initiate. To the best
knowledge of Sellers, there has not occurred any event nor does there exist
any condition on the basis of which any litigation, proceeding or
investigation is likely to be instituted by or against Sellers. Sellers are
not in default with respect to any order, writ, injunction or decree of any
federal, state, local or foreign court, department, agency or instrumentality.
7.13 AGREEMENT WILL NOT CAUSE BREACH OR VIOLATION. Neither the entry into
this Agreement nor the consummation of the transactions contemplated hereby
will result in or constitute any of the following events where the occurrence
of such event would render Sellers materially unable to comply with this
Agreement: (a) a default or an event that, with notice or lapse of time or
both, would be a default, breach or violation of any lease, license,
promissory note, conditional sales contract, commitment, indenture, mortgage,
deed of trust or other agreement, instrument or arrangement; (b) an event
that would permit any party to terminate any agreement or to accelerate the
maturity of any indebtedness or other obligation; (c) the creation or
imposition of any lien, charge or encumbrance on any of the Subject Assets;
or (d) the violation of any law, regulation, ordinance, judgment, order or
decree.
7.14 AUTHORITY AND CONSENTS. Except as set forth in SCHEDULE 7.14, Sellers
has the right, power, legal capacity and authority to enter into, and perform
its obligations under this Agreement, and no approvals or consents of any
persons other than the shareholders of Sellers are necessary in connection
with it. The execution and delivery of this Agreement and the consummation of
this transaction by Sellers have been, or prior to the Closing will have
been, duly authorized by all necessary corporate action of Sellers (including
any necessary action by Sellers' security holders). This Agreement
constitutes a legal, valid and binding obligation of Sellers enforceable in
accordance with its terms except as limited by bankruptcy and insolvency laws
and by other laws affecting the rights of creditors generally.
7.15 INTEREST IN CUSTOMERS, SUPPLIERS AND COMPETITORS. Except as set forth in
SCHEDULE 7.15 or as contemplated by a Collateral Agreement, neither Sellers
nor any officer or director or
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shareholder of Sellers, nor any spouse or child of any of them has any direct
or indirect interest in any competitor, supplier or customer of Sellers or in
any person with whom Sellers are doing business.
7.16 DOCUMENTS DELIVERED. Each copy or original of any agreement, contract or
other instrument which is identified in any exhibit or schedule delivered by
Sellers or its counsel to Buyers (or their counsel or representatives),
whether before or after the execution hereof, is in fact what it is purported
to be by Sellers and has not been amended, canceled or otherwise modified.
7.17 FULL DISCLOSURE. None of the representations and warranties made by
Sellers or made in any letter, certificate or memorandum furnished or to be
furnished by Sellers or on their behalf, contains or will contain any untrue
statement of a material fact, or omits any material fact the omission of
which would make the statements made misleading and materially adverse to
Buyers. Except matters of general knowledge within the Adult Movies industry
and other matters generally available to the public, there is no fact known
to Sellers which materially adversely affects the condition, assets,
liabilities, business, or operations of the Sellers' Adult Movies Business
that has not been set forth herein or heretofore communicated to Buyer in
writing.
7.18 TRANSPONDER LEASE AGREEMENTS. 5DBC specifically represents and warrants
that it is not in default or otherwise been notified of any potential
material default or breach regarding the Skynet Transponder leases, except as
disclosed in SCHEDULE 7.18. To the extent necessary, 5DBC shall cooperate
with Buyers in obtaining any consents required with respect to Buyer's
sublease of the Skynet Transponders.
7.19 SOLVENCY. As of the execution and delivery of this Agreement, and, after
giving effect to the consummation of the Transactions, Sellers will be
solvent.
7.20 TAX MATTERS. Sellers shall continue to be responsible for and will
discharge all obligations and liabilities in respect to taxes pertaining to
their Adult Movies Business and the Subject Assets which arise or accrue for
all periods ending on or before the Closing Date (but excluding the taxes
referred to in ARTICLE 6). Sellers will indemnify and hold harmless Buyers
against any and all claims and demands incurred by Buyers that directly or
indirectly arise out of such obligations or liabilities. Without limiting the
foregoing, Sellers will be responsible for all federal, state, provincial,
local, foreign and other net income, gross income, gross receipts,
alternative or add on minimum, profits, sales, use, occupation, value-added,
ad valorem, transfer, franchise, license, lease, service use, withholding,
payroll, employment, excise, severance, premium, property, windfall profits,
customs, duties, or other taxes, fees assessments, or charges of any kind
whatsoever, together with any interest, penalties or additions to tax imposed
with respect thereto, or any obligations to any agreements or arrangements
with respect to and taxes described above.
7.21 EMPLOYMENT MATTERS. Buyer shall be under no obligation to offer
employment to any of Sellers' employees employed in connection with the Adult
Movies Business ("affected employees"), except as otherwise stated in this
Agreement. Buyer may, however, choose to
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retain the services of or to offer employment to one or more of the affected
employees, should it wish to do so, subject to SECTION 13.4.
Sellers will continue to be responsible for and will discharge all
obligations and liabilities in respect of the affected employees which arise
or accrue prior to, on or after the Closing Date. Sellers will indemnify and
save harmless Buyers against any and all claims and demands incurred by
Buyers that directly or indirectly pertain to or arise out of such
obligations or liabilities. Without limiting the forgoing, Sellers will be
responsible for and will bear and discharge any and all obligations and
liabilities for wages, severance pay, termination pay, notice of termination
of employment or pay in lieu of such notice, damages for wrongful discharge
or other employee benefits or claims, including vacation pay, which may arise
in connection with the employment or dismissal of any of the affected
employees, including any interest, award, judgment or penalty relating
thereto and any costs or expenses incurred by Buyers in defending against any
claim or demand relating to such obligation or liabilities.
7.22 124 AGREEMENT.
(a) The equipment (including without limitation essential spares and
replacement parts) and software technology, furniture, machinery,
appliances, and other tangible personal property and technology as
specifically set forth in SCHEDULE 1(a) of the 124 Agreement is
substantially similar to the equipment and technology used by Sellers
in connection with or historically allocated to their Adult Movies
Business carried on by the Sellers as of July 31, 1997 at the Uplink
Facility.
(b) The uplink facility to be operated, maintained, managed and sustained
under SECTION 1.1 of the 124 Agreement shall be of a substantially
similar nature and quality as those services currently being provided
by Sellers to their present subscribers.
(c) The "Subject Assets" described in the 124 Agreement constitute all
assets (other than premises) necessary for the continued uninterrupted
operation by 1248663 Ontario Inc. of the call center and uplink
facility as now conducted on behalf of the Sellers in respect of their
Adult Movies Business.
(d) SCHEDULE 1(b) of the 124 Agreement contains a complete list of the
hardware, equipment, furniture, machinery, appliances, software and
other tangible personal property now used at the Ottawa Call Center.
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ARTICLE 8. BUYERS' REPRESENTATIONS AND WARRANTIES
Buyers represents, warrants, and covenants to, and agrees with Sellers as
follows:
8.1 ORGANIZATION AND BUSINESS: POWER AND AUTHORITY: EFFECT OF TRANSACTION.
(a) Each Buyer (i) is a corporation duly organized, validly existing and
in good standing under the laws of its jurisdiction of incorporation;
(ii) has all requisite power and authority to own or hold under lease
its properties and to conduct its business as now conducted and as
presently proposed to be conducted, and has in full force and effect
all Governmental Authorizations and Private Authorizations and has
made all governmental filings, to the extent required for such
ownership and lease of its property and conduct of its business and is
in good standing in such jurisdictions in which the failure to be in
good standing would have a material adverse effect upon its property
or the nature of its business or operations.
(b) Each Buyer has all requisite power and authority (corporate and other)
and has in full force and effect all Governmental Authorizations and
Private Authorizations in order to enable it to execute and deliver,
and to perform its obligations under, this Agreement and each
Collateral Agreement executed or required to be executed pursuant
hereto or thereto or to consummate the Transactions and the Collateral
Agreements; and the execution, delivery and performance of this
Agreement and each Collateral Agreement has been duly authorized by
all requisite corporate or other action. No further action or approval
on the part of Buyers' stockholders is required in connection with the
execution, delivery and performance of this Agreement or each
Collateral Agreement or the consummation of the Transactions. This
Agreement has been duly executed and delivered by each Buyer and
constitutes, and each Collateral Agreement executed or required to be
executed pursuant hereto or thereto or to consummate the Transactions
when executed and delivered by Buyers will constitute, legal, valid
and binding obligations of Buyers enforceable in accordance with their
respective terms.
(c) Neither the execution and delivery of this Agreement or any Collateral
Agreement, nor the consummation of the Transactions, nor compliance
with the terms, conditions and provisions hereof or thereof by Buyers:
(i) will conflict with, or result in a material breach or violation
of; or constitute a material default under, any Applicable Law on
the part of Buyers or will conflict with, or result in a material
breach or violation of; or constitute a material default under,
or permit the acceleration of any obligation or liability in, or
but for any requirement of giving notice or passage of time or
both would constitute such a conflict with, material breach or
violation of, or material default under, or permit any such
acceleration in, any contractual obligation of Buyers;
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(ii) will require any Governmental Authorization or Private
Authorization, except for filing requirements under Applicable
Law in connection with the issuance of Buyers' shares to Sellers.
8.2 FINANCIAL AND OTHER INFORMATION
(a) Buyers have heretofore furnished to Sellers copies of the consolidated
financial statements of New Frontier and all of its subsidiaries
("Buyers' Financial Statements"). Buyers' Financial Statements,
including in each case the notes thereto, have been prepared in
accordance with GAAP applied on a consistent basis throughout the
periods covered thereby, except as otherwise noted therein or as set
forth in SCHEDULE 8.2(a) (Buyers' Disclosure Schedule), and are true,
accurate and complete, do not contain any untrue statement of material
fact or omit to state a material fact required by GAAP to be stated
therein or necessary in order to make the statements contained therein
not misleading, and fairly present the financial condition and the
results of operations of Buyers, on the bases therein stated, as of
the respective dates thereof, and for the respective periods covered
thereby subject, in the case of unaudited financial statements, to
normal year-end audit adjustments and accruals.
(b) Neither Buyers' Disclosure Schedule, Buyers' Financial Statements,
this Agreement, any Collateral Agreement, or any data, information or
statement furnished or to be furnished by or on behalf of Buyers
pursuant to this Agreement or any Collateral Agreement or required to
consummate the Transactions, contains or will contain any untrue
statement of material fact or omits or will omit to state a material
fact required to be stated herein or therein or necessary in order to
make statements contained herein or therein not misleading and all
Collateral Agreements, data, information or statements are and will be
true, accurate and complete.
8.3 CHANGES IN CONDITION. Since the date of the most recent financial
statements forming part of Buyers' Financial Statements, there has been no
material adverse change in Buyers taken as a whole or individually. Except
matters of general applicability to Buyers' industries, there is no event
known to Buyers which materially adversely affects Buyers taken as a whole or
individually, or the ability of Buyers to perform any of the obligations set
forth in this Agreement or any Collateral Agreement or to consummate the
Transactions.
8.4 COMPLIANCE WITH PRIVATE AUTHORIZATIONS. Each Buyer has obtained all
Private Authorizations which are necessary for the ownership by such Buyer of
its properties and the conduct of its business as now conducted or as
presently proposed to be conducted or which, if not obtained and maintained,
could, singly or in the aggregate, materially adversely affect such Buyer.
Neither Buyer is in breach or violation of, or is in default in the
performance, observance or fulfillment of, any Private Authorization, and no
event exists or has occurred, which constitutes, or but for any requirement
of giving of notice or passage of time or both would constitute, such a
breach, violation or default, under any contractual obligation of such Buyer
or
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Private Authorization, except for such defaults, breaches or violations, as
do not and will not have in the aggregate any material adverse affect on such
Buyer or the ability of such Buyer to perform any of its obligations set
fourth in this Agreement or any Collateral Agreement or to consummate the
Transactions. No Private Authorization is the subject of any pending or, to
Buyers' knowledge, information or belief, threatened attack, revocation or
termination.
8.5 COMPLIANCE WITH GOVERNMENTAL AUTHORIZATIONS AND APPLICABLE LAW.
(a) Each Buyer has obtained all other Governmental Authorizations which
are necessary for the ownership or uses of its properties and the
conduct of its business as now conducted or as presently proposed to
be conducted and which, if not obtained and maintained, would singly
or in the aggregate, have any material adverse affect on such Buyer
and its subsidiaries taken as a whole. No other Governmental
Authorization is subject of any pending or, to Buyers' knowledge,
information and belief, threatened challenge or proceeding to revoke
or terminate any such Governmental Authorization. Buyers' have no
reason to believe that any other Governmental Authorization would not
be renewed in the name of Buyer by the granting Authority in the
ordinary course.
(b) Neither Buyers nor any officer or director (in connection with the
business, operations and properties of such Buyer) is in or is charged
with or, to such Buyer's knowledge, information and belief, at any
time since its organization has been in or has been charged with, or
is threatened or under investigation with respect to, breach or
violation of, or default in the performance, observance or fulfillment
of, any Governmental Authorization or any Applicable Law, and no event
exists or has occurred, which constitutes, or but for any requirement
of giving notice or passage of time or both would constitute, such a
breach, violation or default, under:
(i) any Governmental Authorization or any Applicable Law, except for
such breaches, violations or defaults as do not and will not have
in the aggregate any material adverse affect on Buyers taken as a
whole or the ability of Buyers to perform any of the obligations
set forth in this Agreement or any Collateral Agreement or to
consummate the Transactions, or
(ii) any requirement of any insurance carrier, applicable to its
business, operations or properties.
8.6 AUTHORIZED AND OUTSTANDING STOCK.
(a) The authorized and outstanding capital stock of New Frontier is as set
forth below:
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DESCRIPTION AUTHORIZED ISSUED AND OUTSTANDING
Common 50,000,000 4,192,511
Preferred 5,000,000 none
(b) The warrants for New Frontier common stock issued and outstanding as
of July 28, 1997 is as follows:
HOLDER WARRANT(S) TO PURCHASE EXPIRATION DATE EXERCISE PRICE
Original Private
Placement 189,000 12/31/97 $ 5.50
National Securities 20,000 10/12/98 4.00
New Frontier
Employees 146,666 10/15/99 6.00
Quarto 400,000(i) 9/20/2001 6.00(ii)
(i) Subject to upward adjustment pursuant to the terms of the Quarto
Warrant Agreement.
(ii) Subject to downward adjustment pursuant to the terms of the Quarto
Warrant Agreement.
Buyers represent and warrant that: (i) Colorado Satellite Broadcasting, Inc.
is a wholly owned subsidiary of New Frontier; (ii) except as set forth above
in this SECTION 8.6, there are no options, warrants, commitments or other
rights to purchase shares or other securities of the Buyers; (iii) except as
set forth above in this SECTION 8.6, no securities or obligations convertible
into or exchangeable for shares or other securities of the Buyers have been
authorized or agreed to be issued or are outstanding; (iv) there are no
shareholders agreements or similar agreements (including agreements that
contain voting arrangements) with respect to any or all of the shares of
either Buyer; and (v) SCHEDULE 8.6 is a list of all persons who own 5% or
more of the issued and outstanding shares of any class of shares of New
Frontier.
8.7 DISCLOSURE. None of the representations and warranties made by Buyers or
made in any letter, certificate or memorandum furnished or to be furnished by
Buyers or on their behalf, contains or will contain any untrue statement of a
material fact, or omits any material fact the omission of which would make
the statements made misleading and materially adverse to Sellers.
8.8 CONTINUING REPRESENTATION AND WARRANTY. Except for those representations
and warranties which speak as of a specific date, all of the representations and
warranties of Buyers set forth in this Article shall be true and correct on the
Closing Date with the same force and effect as though
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made on and as of that date and those, if any which speak as of a specific
date shall be true and correct on the Closing Date.
8.9 SOLVENCY. As of the execution and delivery of this Agreement, and, after
giving effect to the consummation of the transactions contemplated herein,
Buyers taken as a whole and individually will be solvent.
8.10 INTERPRETATION. For the purposes of this ARTICLE 8, New Frontier and
Colorado Satellite Broadcasting, Inc. are each considered to be a "Buyer".
ARTICLE 9. SELLERS' OBLIGATIONS BEFORE CLOSING
Sellers covenant that, except as otherwise agreed in writing by Buyer, from
the date of this Agreement until the Closing:
9.1 BUYERS' ACCESS TO PREMISES AND INFORMATION. Buyers and its counsel,
accountants and other representatives shall be entitled to have full access
during normal business hours to all Sellers' properties, books, accounts,
records, contracts and documents of or relating to the Subject Assets.
Sellers shall furnish or cause to be furnished to Buyers and their
representatives all data and information concerning the Subject Assets and
Adult Movies Business that may reasonably be requested.
9.2 CONDUCT OF BUSINESS IN NORMAL COURSE. Each Seller shall carry on its
business and activities diligently and in substantially the same manner as
they previously have been carried on, and shall not make or institute any
unusual or novel methods of purchase, sale, lease, management, accounting or
operation that will vary materially from the methods used by Seller as of the
date of this Agreement if it would have a material adverse affect on the
Sellers' Adult Movies Business.
9.3 PRESERVATION OF BUSINESS AND RELATIONSHIPS. Each Seller shall use its
best efforts, without making any commitments on behalf of Buyers, to preserve
the Sellers' Adult Movies Business intact, to keep available to each Seller,
its present officers and employees, and to preserve its present relationships
with suppliers, customers and others having business relationships with it.
9.4 MAINTENANCE OF INSURANCE. Each Seller shall continue to carry its
existing insurance, subject to variations in amounts required by the ordinary
operations of their businesses. At the request of Buyers and at Buyers' sole
expense, the amount of insurance against fire and other casualties which, at
the date of this Agreement, Sellers carry on any of the Subject Assets or in
respect of their operations shall be increased by such amount or amounts as
Buyers shall specify.
9.5 NEW TRANSACTIONS. Sellers shall not do or agree to enter into any
contract, commitment or transaction which would materially adversely effect
the ability of Sellers to perform any obligation set forth in this Agreement
of any Collateral Agreement.
9.6 EXISTING AGREEMENTS. Except in ordinary course of business, Sellers
shall not modify,
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amend, cancel or terminate any of its existing contracts or agreements, or
agree to do any of those acts without the consent of Buyers, if doing so
would materially adversely affect the Adult Movies Business.
9.7 CONSENT OF OTHERS. As soon as reasonably practical after the execution
and delivery of this Agreement, and in any event on or before the Closing
Date, Sellers shall obtain the written consent of the persons described in
SCHEDULE 7.14 in form and substance satisfactory to Buyers and will furnish
to Buyers executed copies of those consents.
9.8 REPRESENTATIONS AND WARRANTIES TRUE AT CLOSING. Each Seller shall use
its reasonable commercial efforts to assure that all representations and
warranties of Sellers set forth in this Agreement and in any written
statements delivered to Buyers by Sellers under this Agreement will also be
true and correct as of the Closing Date as if made on that date and that all
conditions precedent to Closing shall have been met. Sellers shall promptly
disclose to Buyers any information contained in the Schedules to this
Agreement which, because of an event occurring after the date hereof, is
incomplete or is no longer correct as of all times after the date hereof
until the Closing Date; provided, however, that none of such disclosures
shall be deemed to modify, amend or supplement the representations and
warranties of Sellers or the schedules hereto for the purposes of ARTICLE 11,
unless Buyer shall have consented thereto in writing.
9.9 STATUTORY FILINGS. Sellers shall cooperate fully with Buyers in
preparing and filing all information and documents required under any
statutes or governmental rules or regulations pertaining to the Transactions,
including but not limited to, any licenses required by Industry Canada and
the rules promulgated thereunder.
ARTICLE 10. BUYERS' OBLIGATIONS BEFORE CLOSING
10.1 GENERAL OBLIGATIONS AND CONFIDENTIALITY. Prior to the Closing Date (or,
in the event the Closing does not occur, for a period of two years following
the date of this Agreement) Buyers shall use their best efforts to preserve
the confidentiality of any commercial information which is confidential and
which Sellers identify in writing as confidential which is disclosed to
Buyers or to their representatives by Sellers; provided that Buyers at all
times shall not be materially restricted in their investigation of the assets
or matters relating thereto. The above provisions of this Section shall not
apply to any information which (i) is already known to Buyers at the time of
disclosure by Sellers, (ii) is published or through no fault of Buyers
becomes published or (iii) is lawfully disclosed to Buyer by a third party.
Whether or not the Closing shall take place, Sellers waive any cause of
action, right or claim arising out of the access of Buyers or their
representatives to any trade secrets or other confidential business
information of Sellers from the date of this Agreement until the Closing
Date, except for the intentional competitive misuse by Buyers or its
representatives of such trade secrets or other confidential business
information (identified as confidential as required by this Article) if the
Closing does not take place.
10.2 SELLERS' ACCESS TO PREMISES AND INFORMATION. Each Seller and its
counsel, accountants and other representatives shall be entitled to have full
access during normal business hours to all Buyers' properties, books,
accounts, records, contracts and documents. The Buyers shall furnish
20
<PAGE>
or cause to be furnished to each Seller and its representatives all data and
information concerning Buyers that may reasonably be requested.
ARTICLE 11. CONDITIONS PRECEDENT TO BUYER'S PERFORMANCE
The obligation of Buyers to purchase the Subject Assets under this Agreement
are subject to the satisfaction, at or before the Closing, of all the
conditions set out below in this Article. Buyers may waive any or all of
these conditions; provided, however, that no such waiver of a condition shall
constitute a waiver by Buyers of any of its other rights or remedies, at law
or in equity, if Sellers shall be in default of any of their representations,
warranties or covenants under this Agreement.
11.1 ACCURACY'S OF SELLERS' REPRESENTATIONS AND WARRANTIES. All
representations and warranties by Sellers contained in this Agreement or in
any Collateral Agreement or in any written statement delivered by Sellers
thereunder shall be true on and as of the Closing as though such
representations and warranties were made on and as of that date. Buyers shall
have received a certificate, dated the Closing Date, signed by Sellers'
Presidents certifying, in such detail as Buyers and their counsel may
reasonably request, that the representations and warranties set out herein
are true and correct as of the Closing Date.
11.2 SELLERS' PERFORMANCE. Sellers shall have performed, satisfied, and
complied with all covenants, agreements, and conditions required by this
Agreement to be performed or complied with by Sellers on or before the
Closing Date.
11.3 CERTIFICATION BY SELLERS. Buyers shall have received a certificate,
dated the Closing Date, signed by Sellers' Presidents certifying, in such
detail as Buyer and its counsel may reasonably request, that the
representations and warranties set out herein are true and correct as of the
Closing Date.
11.4 OPINION OF SELLERS' COUNSEL. Buyers shall have received from counsel for
Sellers, opinions dated the Closing Date, in form and substance reasonably
satisfactory to Buyers and their counsel, stating that:
(a) each Seller is a corporation duly organized, validly existing and in
good standing under the applicable laws of the jurisdiction of their
incorporation and have all necessary corporate power to own their
properties as now owned and operate their businesses as now operated;
(b) all corporate proceedings required by law or by the provisions of this
Agreement to be taken by each Seller on or before the Closing Date in
connection with the execution and delivery of this Agreement and the
consummation of the Transactions have been duly and validly taken;
(c) this Agreement has been duly and validly authorized and, when executed
and delivered by each Seller will be valid and binding on such Seller
and enforceable
21
<PAGE>
in accordance with its terms, except as limited by bankruptcy and
insolvency laws and by other laws affecting the rights of creditors
generally; and
(d) neither the execution nor delivery of this Agreement nor the
consummation of the Transactions will constitute a default, or an
event that would with notice or lapse of time or both constitute a
default under, or violation or breach of Seller's articles of
incorporation or bylaws.
In rendering their opinions, counsel for each Seller may rely on certificates
of governmental authorities, certificates of Seller's officers, directors or
shareholders, and on opinions of associate counsel.
11.5 ABSENCE OF LITIGATION. No action, suit or proceeding before any court or
any governmental body or authority, pertaining to the Transactions or their
consummation shall have been instituted or threatened on or before the
Closing Date.
11.6 CORPORATE APPROVAL. The execution and delivery of this Agreement by
Sellers, and the performance of their covenants and obligations under it,
shall have been duly authorized by all necessary corporate action, and Buyer
shall have received copies of all resolutions pertaining to that
authorization, certified by the secretaries of Sellers.
11.7 CONSENTS. All necessary agreements and consents of any parties (other
than Buyers, their shareholders or directors, and Authorities in the United
States of America) to the consummation of the Transaction, or otherwise
pertaining to the matters covered by this Agreement, shall have been obtained.
11.8 APPROVAL OF DOCUMENTATION. The form and substance of all certificates,
instruments, opinions and other documents delivered to Buyers under this
Agreement shall be satisfactory in all reasonable respects to Buyers and
their counsel.
11.9 CONSULTING AGREEMENT. Buyers and the Shareholders identified in
SCHEDULE 11.9 shall enter into a consulting agreement substantially in the
form of SCHEDULE 11.9.
11.10 CONDITION OF ASSETS. The Subject Assets shall not have been materially
or adversely affected in any way as a result of any fire, accident, storm or
other casualty or labor or civil disturbance or act of God or the public
enemy.
11.11 NON-COMPETITION AGREEMENT. The shareholders of Sellers shall each have
duly executed and delivered to Buyers a Non-competition Agreement
substantially in the form of SCHEDULE 11.11.
11.12 AGREEMENT ON SCHEDULES. At the date of execution of this Agreement by
the parties, the form and content of the schedules to this Agreement had not
be settled by the parties and it is a condition precedent to Buyers'
performance under this Agreement that such schedules be settled prior to
Closing.
22
<PAGE>
ARTICLE 12. CONDITIONS PRECEDENT TO SELLERS' PERFORMANCE
The obligations of Sellers to sell and transfer the Subject Assets under this
Agreement are subject to the satisfaction, at or before the Closing, of all the
following conditions:
12.1 ACCURACY OF BUYERS' REPRESENTATIONS AND WARRANTIES. All representations
and warranties by Buyers contained in this Agreement or in any Collateral
Agreement or in any written statement delivered by Buyers thereunder shall be
true on and as of the Closing as though such representations and warranties
were made on and as of that date. Sellers shall have received a certificate,
dated the Closing Date, signed by Buyers' Presidents certifying, in such
detail as Sellers and their counsel may reasonably request, that the
representations and warranties set out herein are true and correct as of the
Closing Date.
12.2 BUYERS' PERFORMANCE. Buyers shall have performed and complied with all
covenants and agreements, and satisfied all conditions that it is required by
this Agreement to perform, comply with, or satisfy, before or at the Closing.
12.3 OPINION OF BUYERS' COUNSEL. Buyers shall have furnished Sellers with an
opinion from counsel for Buyers, dated the Closing Date, satisfactory to
Sellers and their counsel, stating that:
(a) Buyers are corporations duly organized, validly existing and in good
standing under the laws of the State of Colorado and have all
requisite corporate power to perform their obligations under this
Agreement;
(b) all corporate proceedings required by law or by the provisions of this
Agreement to be taken by Buyers on or before the Closing Date in
connection with the execution and delivery of this Agreement and the
consummation of the Transactions shall have been duly and validly
taken;
(c) this Agreement has been duly and validly authorized and, when executed
and delivered by Buyers will be valid and binding on Buyers and
enforceable in accordance with its terms, except as limited by
bankruptcy and insolvency laws and by other laws affecting the rights
of creditors generally;
(d) neither the execution nor delivery of this Agreement nor the
consummation of the Transactions will constitute a default, or an
event that would with notice or lapse of time or both constitute a
default under, or violation or breach of Buyers' articles of
incorporation or bylaws;
(e) the shares described in SECTION 2.1(d) and the Warrants described in
SECTION 2.1(e) have been duly authorized and, when issued and
delivered pursuant the this Agreement, will have been validly issued,
and will be fully paid and nonassessable; the stockholders of New
Frontier will have no preemptive rights or other rights with respect
to such shares or warrants; when such warrants are exercised in
accordance with their terms, the New Frontier shares that are due
23
<PAGE>
Sellers upon such exercise will have been validly issued, and will be
fully paid and non-assessable; the stockholders of New Frontier will
have no preemptive rights with respect to the shares issued upon the
exercise of such warrants; and
(f) to the best of such counsel's knowledge, there is no legal action
pending or threatened against either of Buyers which could have a
material adverse affect on Buyers.
In rendering its opinion, counsel for Buyers may rely on certificates of
governmental authorities and on opinions of associate counsel.
12.4 BUYERS' CORPORATE APPROVAL. Buyers shall have received corporate
authorization and approval for the execution and delivery of this Agreement
and all corporate action necessary or proper to fulfill the obligations of
Buyers to be performed under this Agreement on or before the Closing Date.
12.5 BOARD OF DIRECTORS APPOINTMENT. 5DBC shall have the right to appoint at
least one director to the Board of Directors of New Frontier and 5DBC shall
be entitled to have one additional nonvoting representative whom shall enjoy
all the rights and privileges of board members of New Frontier except for the
right to vote and whose expenses (traveling and lodging) shall be paid by New
Frontier. With respect to the right to appoint at least one director, at such
time after the Closing Date as 5DBC shall request, one designee of 5DBC shall
be appointed as a member of the Board of Directors of New Frontier, to hold
office until the next annual meeting of stockholders of New Frontier and
until such designee's successor shall have been elected and qualified (or the
earlier resignation or removal of such designee). Thereafter, so long as 5DBC
(and its affiliates) continue to own not less than 300,000 (as presently
constituted) shares of New Frontier, 5DBC shall, subject to the conditions
hereinafter set forth, be entitled to designate one management nominee for
election as a member of the Board of Directors of New Frontier.
Notwithstanding the foregoing, 5DBC shall not have the right to designate a
nominee for election as a member of the Board of Directors, or if such right
of designation shall have been exercised, such designee shall not have the
right to continue to serve as a member if his/her so serving would cause New
Frontier to violate any statute or regulation applicable to New Frontier.
12.6 CONSULTANT CONTRACT - DANIEL BENDER. Buyer shall enter into a
Consultant Agreement with Daniel Bender, provided Daniel Bender is prepared
to enter into such agreement, for a period of one year following the Closing
Date and in the amount of US$100,000.00 in a form substantially similar to
SCHEDULE 12.6, which shall be executed and delivered by Buyer on the Closing
Date.
12.7 AUDIO/VISUAL PRODUCTION AGREEMENT. Buyer shall enter into an
Audio/Visual Production Agreement with Diorio Productions Inc., provided
Diorio Productions Inc. is prepared to enter into such agreement, in a form
substantially similar to SCHEDULE 12.7, whereby Buyer agrees to purchase
Cdn$30,000.00 of interstitial programming per month for the acquired Adult
Movies Business for a period of nine (9) months following the Closing Date,
which agreement shall be executed and delivered by Buyer on the Closing Date.
12.8 AGREEMENT ON SCHEDULES. At the date of execution of this Agreement by
the parties, the
24
<PAGE>
form and content of the schedules to this Agreement had not be settled by the
parties and it is a condition precedent to Sellers' performance under this
Agreement that such schedules be settled prior to Closing and shall be
initialled by the signing officers of the parties.
12.9 CAPITALIZATION OF BUYERS. Prior to the Closing Date, the Buyers shall
have raised and received the net proceeds from a share offering of New
Frontier stock of not less than US$7,000,000 gross.
ARTICLE 13. SELLERS' OBLIGATIONS AFTER THE CLOSING.
13.1 PRESERVATION OF GOODWILL. Following the Closing, Sellers will restrict
their activities so that Buyers' reasonable expectations with respect to the
goodwill, business reputation, employee relations and prospects connected
with the Subject Assets will not be materially impaired. In furtherance but
not in limitation of this general obligation, Sellers agree that, for the
period of two (2) years following the Closing Date, or as long as Buyers or
its assigns or successors in interest carry on a like business in the
counties or areas specified, whichever is shorter:
(a) Sellers and their shareholders will not engage in any business or
activity which is substantially the same as, any business or activity
presently conducted by Sellers if such business or activity extends to
any of the geographic areas set forth in SCHEDULE 11.11 in which
Sellers have heretofore engaged in business or otherwise established
its goodwill, business reputation, or any customer relations. The
parties intend that the covenant contained herein shall be construed
as a series of separate covenants, one for each geographic area
specified in SCHEDULE 11.11. Except for geographic coverage, each
separate covenant shall be deemed identical in terms to the covenant
set forth above. If, in any judicial proceeding, a court shall refuse
to enforce any of the separate covenants deemed included in this
Section, then this unenforceable covenant shall be deemed eliminated
from these provisions for the purpose of those proceedings to the
extent necessary to permit the remaining separate covenants to be
enforced.
(b) Sellers and their shareholders will not disclose to any person or use
for their own benefit any price lists, pricing data, customer lists or
similar matters possessed by them relating to the Subject Assets or
the business transferred to Buyer unless they first clearly
demonstrate to Buyer that such matters are at the time of the proposed
disclosure or use of common knowledge within the trade.
13.2 SELLERS' INDEMNITIES. Sellers shall indemnify, defend and hold harmless
Buyers against and in respect of any and all claims, demands, losses, costs,
expenses, obligations, liabilities, damages, recoveries and deficiencies,
including interest, penalties and reasonable attorneys' fees, that Buyers
shall incur or suffer, which arise, result from or relate to any breach of,
or failure by Sellers to perform, any of their representations, warranties,
covenants or agreements in this Agreement or in any schedule, certificate,
exhibit or other instrument furnished or to be furnished by Sellers under
this Agreement. Notwithstanding any other provision of this Agreement,
Sellers shall not be liable to Buyer on any warranty, representation or
covenant made
25
<PAGE>
by Sellers in this Agreement, or under any of their indemnities in this
Agreement, regarding any single claim, loss, expense, obligation or other
liability that does not exceed US$2,500.00; provided, however, that when the
aggregate amount of all such claims, losses, expenses, obligations and
liabilities not exceeding US$2,500.00 each reaches US$25,000.00, Sellers
shall thereafter be liable in full for all such breaches and indemnities and
regarding all those claims, losses, expenses, obligations, and liabilities.
13.3 ACCESS TO RECORDS. From and after the Closing, Sellers shall allow
Buyers, and their counsel, accountants and other representatives, such access
to records which after the Closing are in the custody or control of Sellers
as Buyers reasonably require in order to comply with its obligations under
the law or under contracts assumed by Buyers pursuant to this Agreement.
13.4 NONSOLICITATION OF EMPLOYEES. Except with the prior written consent of
Sellers, Buyers shall not, prior to the first anniversary of the Closing,
solicit any employee of Sellers or of any affiliate of Sellers to leave such
employment if such employee was at any time between the date hereof and the
Closing an employee of Seller.
13.5 RISK OF LOSS.
(a) Until the Closing Date the Subject Assets will remain at the risk of
Sellers. Sellers will maintain all risk insurance in respect of loss
or damage to or any other casualty in respect of the Subject Assets
which provides for loss settlement on a replacement cost basis if the
Subject Assets are repaired or replaced and on an actual cash value
basis if the Subject Assets are not repaired or replaced. In the event
of any loss, damage or claim, in respect of any risk for which
insurance is to be carried as aforesaid arising before the Closing
Date, Buyers, as an additional condition of closing, will be entitled
to be satisfied that the insurers have accepted the claim of Sellers
for payment in accordance with the terms of the policies. If any
destruction or damage occurs to the Subject Assets on or before the
Closing Date or if any or all of the Subject Assets are appropriated,
expropriated or seized by governmental or other lawful authority on or
before the Closing Date, Sellers will forthwith give notice thereof to
Buyers and Buyers will have the option, exercisable by notice to
Sellers on or before the Closing Date:
(i) to reduce the Purchase Price by an amount equal to the cost of
repair or, if destroyed or damaged beyond repair or if
appropriated, expropriated or seized, by an amount equal to the
replacement cost of the assets forming the part of the Subject
Assets so damaged or destroyed or appropriated, expropriated or
seized and to complete the purchase;
(ii) to complete the purchase without reduction of the Purchase Price,
in which event all proceeds of insurance or compensation for the
destruction or damage or appropriation, expropriation or seizure
will be payable to Buyers and all right and claim of Sellers to
any such amounts not paid by the Closing Date will be assigned to
Buyers; or
26
<PAGE>
(iii) to rescind this Agreement and not complete the purchase if, in
the opinion of Buyers, such destruction, damage, appropriation,
expropriation or seizure is material and in such event Sellers
and Buyers will be released from all obligations hereunder and
the deposit referred to in SECTION 2.1(a) shall be returned to
Buyers.
(b) If Buyers elect to reduce the Purchase Price pursuant to SECTION
13.5(a)(i), Sellers and Buyers will at the Closing Date determine the
amount of the reduction to the extent that it is then determinable and
will undertake to adjust such amount after the Closing Date, if
necessary.
ARTICLE 14. COSTS
14.1 FINDER'S OR BROKER'S FEES. Each party shall be responsible for its on
costs or for any commission or finder's fee incurred on behalf of that party
in connection with the Transactions.
14.2 EXPENSES. Each of the parties shall pay all costs and expenses,
including, but not limited to attorneys' fees, incurred or to be incurred by
it in negotiating and preparing this Agreement and in closing and carrying
the Transactions.
ARTICLE 15. FORM OF AGREEMENT
15.1 HEADINGS. The subject headings of the Articles and Sections of this
Agreement are included for purposes of convenience only and shall not affect
the construction or interpretation of any of its provisions.
15.2 ENTIRE AGREEMENT; MODIFICATION; WAIVER. This Agreement constitutes the
entire agreement between the parties pertaining to the subject matter
contained in it and supersedes all prior and contemporaneous agreements,
representations, and understandings of the parties. No supplement,
modification or amendment of this Agreement shall be binding unless executed
in writing by all the parties. No waiver of any of the provisions of this
Agreement shall be deemed, or shall constitute, a waiver of any other
provision, whether or not similar, nor shall any waiver constitute a
continuing waiver. No waiver shall be binding unless executed in writing by
the party making the waiver.
15.3 COUNTERPARTS. This Agreement may be executed simultaneously in one or
more counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument.
ARTICLE 16. PARTIES
16.1 PARTIES IN INTEREST. Nothing in this Agreement, whether express or
implied, is intended to confer any rights or remedies under or by reason of
this Agreement on any persons other than the
27
<PAGE>
parties to it and their respective successors and permitted assigns, nor is
anything in this Agreement intended to relieve or discharge the obligation or
liability of any third persons to any party to this Agreement, nor shall any
provision give any third persons any right of subrogation or action over
against any party to this Agreement.
16.2 ASSIGNMENT. No party can assign this Agreement without the express
written consent of the other parties. This Agreement shall be binding on and
shall inure to the benefit of the parties to it and their respective heirs or
legal representatives, and their respective successors and permitted assigns.
ARTICLE 17. REMEDIES
17.1 RECOVERY OF LITIGATION COSTS. If any legal action or any arbitration or
other proceeding is brought for the enforcement of this Agreement, or because
of an alleged dispute, breach, default or misrepresentation in connection
with any of the provisions of this Agreement, the successful or prevailing
party or parties shall be entitled to recover reasonable attorneys' fees and
other costs incurred in that action or proceeding, in addition to any other
relief to which it or they may be entitled.
17.2 CONDITIONS PERMITTING TERMINATION. Subject to the provisions of ARTICLE
3 relating to the postponement of the Closing Date, either party may on the
Closing Date terminate this Agreement by written notice to the other, without
liability to the other, if any bona fide action or proceeding shall be
pending against either party on the Closing Date that could result in a
materially adverse judgment, decree or order that would prevent or make
unlawful the carrying out of this Agreement.
17.3 DEFAULTS PERMITTING TERMINATION. If a Buyer or Seller materially
defaults in the due and timely performance of any of its material warranties,
covenants, or agreements under this Agreement, the 124 Agreement or the 104
Agreement, the non-defaulting party or parties may on the Closing Date give
notice of termination of this Agreement, in the manner provided in ARTICLE 19.
The notice shall specify with particularity the default or defaults on which
the notice is based. The termination shall be on the first to occur of the
10th day after such notice or the Closing Date, unless the specified default
or defaults have been cured by such time.
ARTICLE 18. NATURE AND SURVIVAL OF REPRESENTATIONS AND
WARRANTIES
All representations, warranties, covenants and agreements of the parties
contained in this Agreement, or in any instrument, certificate, opinion or other
writing provided for in it, shall survive the Closing.
28
<PAGE>
ARTICLE 19. NOTICES
All notices, requests, demands and other communications under this Agreement
shall be in writing and shall be deemed to have been duly given on the date of
service if served personally on the party to whom notice is to be given, or on
the third day after mailing if mailed to the party to whom notice is to be
given, by first class mail registered or certified, postage prepaid, and
properly addressed as follows:
Sellers: Douglas Duncan
2500 Don Reid Drive
Ontario, Canada
K1H 8P5
Stuart Duncan
2500 Don Reid Drive
Ontario, Canada
K1H 8P5
Daniel Bender
27357 Valley Center Road
Valley Center, California
92082
with copy to: Jamie Wyllie, Esq.
Yegendorf, Brazeau, Seller, Prehogan & Wyllie
55 Metcalfe Street, Suite 750
Ontario, Canada
K1H 6L5
Buyers: New Frontier Media, Inc.
1050 Walnut Street, Suite 301
Boulder, CO 80302
Attn.: Mark H. Kreloff
with copy to: The Law Office of Mark L. Driver, P.C.
3300 East First Ave. Suite 600
Denver, CO 80206
Attn.: Mark L. Driver
Any party may change its address for purposes of this Article by giving the
other parties written notice of the new address in the manner set forth above.
29
<PAGE>
ARTICLE 20. GOVERNING LAW
This Agreement shall be construed in accordance with, and governed by, the laws
of the State of Colorado.
ARTICLE 21. MISCELLANEOUS
21.1 ANNOUNCEMENTS. Sellers will not make any announcements to the public
concerning this Agreement or the Transactions without the prior approval of
Buyers, which will not be unreasonably withheld. Notwithstanding any failure of
Buyers to approve it, Sellers may make an announcement of substantially the same
information as therefore announced to the public by Buyers, or any announcement
required by applicable law, but Sellers shall in either case notify Buyers of
the contents thereof reasonably promptly in advance of its issuance.
21.2 REFERENCES. Unless otherwise specified, references to Sections or
Articles are to sections or articles in this Agreement.
30
<PAGE>
21.3 RELATED TRANSACTIONS. It is a condition of the obligations of the parties
to close the Transactions that on the Closing Date the transactions referred to
in the 104 Agreement and the 124 Agreement also close on the Closing Date.
IN WITNESS WHEREOF, the parties to this Agreement have duly executed it as of
the day and year first above written.
BUYERS: New Frontier Media, Inc.
By: /s/ MARK H. KRELOFF
-------------------------------
Its: President
------------------------------
Colorado Satellite Broadcasting, Inc.
By: /s/ MICHAEL WEINER
-------------------------------
Its: President
------------------------------
SELLERS:
Fifth Dimension Communications
(Barbados) Inc.
By: /s/ DOUGLAS DUNCAN
-------------------------------
Its authorized signing officer
Merlin Sierra, Inc.
By: /s/ DOUGLAS DUNCAN
-------------------------------
Its authorized signing officer
31
<PAGE>
[LETTERHEAD]
VIA FACSIMILE
No. of Pages: 2
October 15, 1997
Mark L Driver
600 - 3300 East First Avenue
Denver, Colorado 80206
Fax No.: (303) 321-3196
Kent Krausman
The Citadel
400 - 3200 Cherry Creek South Drive
Denver, Colorado 80209
Fax No.: (303) 777-1622
Michael Wiener
New Frontier Media, Inc.
301 - 1050 Walnut Street
Boulder, Colorado 80302
Fax No.: (303) 444-0734
Dear Sirs:
RE: Amendment to Asset Purchase Agreement Effective 5 September 1997 among
New Frontier Media, Inc., Colorado Satellite Broadcasting, Inc., Fifth
Dimension Communications (Barbados) Inc., and Merlin Sierra, Inc. Our
File No.: 97-6478
As solicitors for the buyers under the above-described Asset Purchase
Agreement, you are hereby directed and authorized to replace the existing
page 5 of the Agreement with the page which is attached to this letter.
Yours very truly,
/s/ Jamie Wyllie
JW/sjw Jamie Wyllie
Att.
<PAGE>
(which reasons shall include the insolvency or bankruptcy of 5DBC), 5DBC
agrees to assign, according to the terms of those agreements and contingent
upon acceptance and approval of the assignments by the lessors thereto, its
interests in the Skynet Transponder Agreements to Buyers.
1.2 FUTURE SATELLITE RIGHTS. Buyers shall have a right of first refusal to
obtain satellite transponder service rights on Nahuel AsiaSat and IntelSat
satellites to the extent 5DBC may have such rights in such satellites and
desires to sublease those transponder service rights to third parties for use
in Adult Movies Programming.
ARTICLE 2. PURCHASE PRICE
2.1 PAYMENT OF PURCHASE PRICE. In consideration for the transfer and
assignment of the Subject Assets and in consideration of the representations,
warranties and covenants of Sellers set forth herein, Buyers on the
conditions set forth herein:
(a) shall pay, Subject to Article 5, an earnest money deposit in the
amount of US$85,000.00;
(b) shall deliver to Sellers at the Closing (as hereinafter defined)
US$2,339,828.00 plus taxes as provided in Article 6, payable in cash
as more fully described in SECTION 3.2;
(c) shall deliver at the Closing a promissory note in the amount of
US$814,289.00 executed by Buyer and payable to Sellers in the form
substantially similar to that set forth in Schedule 2.1(c). Buyer's
performance under the promissory note shall be guaranteed by New
Frontier. Additionally, in order to secure Buyer's obligations
pursuant to the promissory note, at the Closing Buyer shall execute
and deliver to Sellers a security agreement in the form attached as
Exhibit A to SCHEDULE 2.1(c) pursuant to which Buyer shall grant to
Sellers a security interest/lien in all of its furniture, fixtures,
equipment and inventory, ranking first in priority over all other
security interests/lienholders, except the interests of Buyers' chief
financial institutions which shall have a first priority up to an
amount of US $2,000,000.00;
(d) shall deliver to Sellers at the Closing Date, a certificate for
840,000 shares of common stock of New Frontier, such shares to be
"restricted" from transfer as that term is defined by Rule 144
promulgated under the Securities Act of 1933, as amended, duly
registered in the name of Sellers (or such other parties as Sellers
may direct) equivalent in value to US$3,402,000.00, the value of
which is agreed to be US$4.05 per share, and which was determined by
allowing a 19% discount of the closing bid price on New Frontier's
"free-trading" common stock on April 14, 1997;
(e) shall deliver to Sellers (or to such other parties as Sellers may
direct) at the
5
<PAGE>
[SCHEDULES TO THE BARBADOS AGREEMENT]
SCHEDULE 1(a)
TRADEMARKS LIST
EXOTICA (U.S. Trademark Application No. pending)
XXXOTICA (U.S. Trademark Registration No. 2030091)
XXXOTICA AND DESIGN (U.S. Trademark Registration No. 2028739)
<PAGE>
SCHEDULE 1(b)
PROGRAMMING LIST
None.
<PAGE>
SCHEDULE 1(c)
SUBSCRIBERS LIST
None.
<PAGE>
SCHEDULE 1(d)
VENDORS LIST
[attached]
<PAGE>
FIFTH DIMENSION COMMUNICATIONS (BARBADOS) INC.
VENDOR LISTING
VENDOR ADDRESS TELE # FAX #
- ------------------------------------------------------------------------------
Bartel Windsor Lodge. 434-2273
Government Hill
St. Michael, Barbados
Bios Inc. (Sunbeach) #6, 5th Avenue 426-4634 228-6330
(internet Provider) Belleville
St. Michael, Barbados
Chamber of Commerce First Floor, Newill House 426-0747 429-2907
Collymore Rock
St. Michael, Barbados
Ernst & Young P.O. Box 261 Bay Street 430-3900 426-9551
Bridgetown, Barbados
Federal Express Beckwith Mall 420-7380 429-5386
Lower Broad Street
Bridgetown, Barbados
Lashley Enterprises Inc. P.O. Box 1357 427-0207 429-3649
(Office Supplies) Bridgetown, Barbados
S.R. Musson Son & Company P.O. Box 103 429-5686 429-3237
(Rent) Bridgetown, Barbados
Stoutes Car Rental Limited Kirtons 435-4456 435-4435
St. Philip, Barbados
Prepared by Delani Davis
<PAGE>
MOVIE DISTRIBUTORS
<TABLE>
- -----------------------------------------------------------------------------------------------------------------------------------
COMPANY ADDRESS CITY, STATE ZIP CONTACT PHONE FAX
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ABV-USA, Inc. 6965 El Camino Real, #105-150 La Costa, CA 92009 Al Borda 619-734-1925 619-734-1929
Antares Worldwide 20695 S. Western Ave. #112 Torrance, CA 90501 Woody Varner 310-787-9000 310-781-3000
Antigua pictures 9650 De Soto Ave. Chatsworth, CA 91311 John Blatt 818-709-7400 818-709-7489
C.E.D., Inc. 2020 Broadway Santa Monica, CA 90404 Lisa Schmidt 310-829-2222 310-829-0202
Cinderella Distributors 8021 Remmet Canoga Park, CA 91304 Jack Michaelson 818-884-6681 818-884-7189
Coast to Coast Distributors 39 W. 19th St. New York, NY 10011 Jack Michaelson 212-727-0390 212-727-0590
Digital Media Group 5320 Derry Ave. #H Agoura Hills, CA 91301 Dewey Doolittle 818-597-9191 818-597-0492
Dreamland Entertainment 14666 Titus St., Suite 22 Panorama City, CA 91402 Jack Michaelson 818-884-6681 818-884-7189
Erotic Video Network (EVN) 20440 Corisco St. Chatsworth, CA 91311 Jack Michaelson 818-884-6681 881-884-7189
Fantazy Entertainment Group 8021 Remmet Canoga Park, CA 91304 Jack Michaelson 818-884-6681 818-884-7189
Fat Dog Productions 21708 Marilla St. Chatsworth, CA 91311 Larry Fields 800-223-9461 818-727-0328
Hollywood Video 8021 Remmet Canoga Park, CA 91304 Jack Michaelson 818-884-6681 818-884-7189
InXCess Productions, Inc. 9400 Lurtine Ave., #F Chatsworth, CA 91311 Alex Katz 818-341-0997 818-349-2278
Kan Marketing 2355 Topanga Canyon Rd. Topanga, CA 90290 Keith 310-455-8774 310-455-0779
Klimaxxx Productions 79888 Boqueron Way Bermuda Dunes, CA 92201 Jon Gallo 619-772-1928 619-772-1468
Metro Home Video 16557 Arminta St. Van Nuys, CA 91406 Jack Michaelson 818-884-6681 818-884-7189
Nitro Productions 21612 Marilla St. Chatsworth, CA 91311 Jack Michaelson 818-884-6681 818-884-7189
Notorious Productions 9753 Eton Ave. Chatsworth, CA 91311
Odyssey Group Video 8599 Venice Blvd. #C Los Angeles, CA 90034 Jack Michaelson 800-397-5114 310-202-0897
Ona Zee Productions 13360 Beach Ave. Marina Del Rey, CA 90292 Arlene Reese 310-577-8842 310-577-8850
Outlaw Productions 8701 West Chester Pike Upper Darby, PA 19082 Gary Palao 800-668-4380 610-692-5921
Paul Noman Productions 18936 Kilfinan St. Northridge, CA 91326 Jack Michaelson 818-884-6681 818-884-7189
Pepper Productions 8021 Remmet Canoga Park, CA 91304 Jack Michaelson 818-884-6681 818-884-7189
Pleasure Productions 59 Lake Dr. Hightstown, NJ 08520 Scott Blatt 609-426-1777 609-426-8897
Plum Productions 21115 Devonshire St., #135 Chatsworth, CA 91311 Jack Michaelson 818-772-7250 818-772-2160
Plush Productions 9204 Deering Ave. Chatsworth, CA 91311 Eddie Martinez 800-276-1844 818-772-9658
Randy West Productions 6520 Platt Ave., #647 West Hills, CA 91307 Randy West 818-888-6767 818-702-6561
Sin City Video 6617 Independence Ave. Canoga Park, CA 91303 Josle Farla 800-315-9888 818-999-CITY
Snatch Productions 16102 Hart St. Van Nuys, CA 91406 Todd Blatt 818-909-3700 818-909-3701
Stuart Canterbury 7095 Hollywood Blvd., #426 Los Angeles, CA 90028 Jack Michaelson 818-884-6681 818-884-7189
Tight Ends Productions 8040 Remmet Ave., #B Canoga Park, CA 91304 Jack Michaelson 818-884-6681 818-884-7189
VCA Pictures 9650 De Soto Ave. Chatsworth, CA 91311 Kimberly Wilson 800-421-2386 818-718-8536
Video Team 15753 Stagg St. Van Nuys, CA 91406 Jack Michaelson 818-884-6681 818-884-7189
Western Visual 15745 Stagg St. Van Nuys, CA 91406
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</TABLE>
<PAGE>
MOVIE DISTRIBUTORS
<TABLE>
- ----------------------------------------------------------------------------------------------------------------------------------
COMPANY ADDRESS CITY, STATE ZIP CONTACT PHONE FAX
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Wicked Pictures 9040 Eton Ave. Canoga Park, CA 91304 Steve Valadas 818-349-3593 818-349-6620
X-Citement Video 7118 Decetis Place Van Nuys, CA 91406 Jack Michaelson 800-821-6448 818-781-5315
XPLOR Media Group/Homegrown 7721 Convoy Ct. San Diego, CA 92111 Moffitt Timlake 619-541-0280 619-541-0210
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</TABLE>
<PAGE>
SCHEDULE 1.1
TRANSPONDER SUBLEASES
[Attached]
<PAGE>
TRANSPONDER SUBLEASE
AGREEMENT BETWEEN
Fifth Dimension Communications Holdings, Inc.
AND
Colorado Satellite Broadcasting, Inc.
CONCERNING SKYNET TRANSPONDER SERVICE ON TELSTAR 4
THIS SUBLEASE is made on this _______ day of______ , 1997 by and between
Fifth Dimension Communications Holdings, Inc., a corporation organized and
existing under the laws of the State of Delaware and having its primary
Canadian place of business at 2500 Don Reid Drive, Ottawa, Ontario K1H 8P5
(hereinafter referred to as "5D") and Colorado Satellite Broadcasting, Inc.,
a corporation organized and existing under the laws of Colorado and having
its primary place of business at 1050 Walnut Street, Suite 301, Boulder,
Colorado 80302 (hereinafter referred to as "CSB").
RECITALS:
A. LORAL SKYNET, (hereinafter referred to as "SKYNET") operates a
domestic satellite system and offers services on such system in accordance
with FCC Tariff No. 7 ("Tariff") filed with the Federal Communications
Commission ("FCC").
B. Fifth Dimension Communications (Barbados) Inc. entered into an
Agreement with SKYNET dated November 21, 1996 (hereinafter "Master Lease"),
for SKYNET satellite service and is entitled to transponder service
consisting of service on one (1) C-Band 36MHz 16 Watt non-protected
preemptible transponder ("Bronze" transponders) on Telstar 402R for service
which began on January 1, 1997 and terminates December 31, 1999. Fifth
Dimension Communications (Barbados) Inc. has assigned that Master lease to 5D.
C. Fifth Dimension Communications (Barbados) Inc. has assigned its
rights and interest in the Master Lease to 5D.
D. 5D wishes to sublease to CSB and CSB wishes to sublease from 5D all
rights and obligations 5D has in the Master Lease dated November 21, 1996.
ACCORDINGLY, 5D, in consideration of the payment by CSB to SKYNET for the
satellite and transponder services and such other adequate consideration
which is hereby acknowledge, 5D agrees to sublease its rights under the
Master Lease as follows:
1
<PAGE>
AGREEMENT
1. AGREEMENT. 5D subleases its rights in the SKYNET satellite and
Transponder Service as granted to 5D pursuant to the Master Lease and
according to the terms and conditions set forth therein to CSB. The
provisions of the Master Lease, all amendments thereto and all applicable FCC
Tariffs filed with the Federal Communications Commission are incorporated
into this Agreement between 5D, as sublessor, and CSB, as sublessee as though
5D was SKYNET and as though CSB was lessee under the Master Lease. 5D shall
not be liable for breaches of the Master Lease by SKYNET, subject to
paragraph 6 herein.
2. TERM. The term of this sublease shall begin on the closing date of
the Asset Purchase Agreement dated September 5, 1997 between New Frontier
Media, Inc., and Colorado Satellite Broadcasting, Inc., as first parties, and
Fifth Dimension Communications (Barbados) Inc. and Merlin Sierra, Inc., as
second parties, ("Asset Purchase Agreement ) and shall end on December 31,
1999, unless renewed at CSB's option according to the terms and conditions of
the Master Lease.
3. PAYMENT. CSB shall pay for the Transponder Service in accordance
with the following:
Quantity Service Satellite Term Monthly Rate
- -----------------------------------------------------------------------------
1 C-Band 36 MHz Telstar 4 December 31, 1999 $120,000.00
16 Watt
Payment under this Agreement shall be made, according to the terms and
conditions associated with SKYNET's billing for the services, directly to
SKYNET which shall receive payment at least five (5) days before the
beginning of each month. Confirmation of such payment shall be made to 5D
simultaneously with the payment to SKYNET at the following address:
Fifth Dimension Communications Holdings, Inc.
Stuart K. Duncan - President
2500 Don Reid Drive
Ottawa, Ontario K1H 8P5
4. DEPOSIT. CSB shall provide to 5D no later than the closing date of
the Asset Purchase Agreement a letter of credit on terms reasonably
acceptable to 5D in the amount of $USD120,000.00 to be used and applied as a
security in the event of a default by CSB under any of the terms and
conditions of this Agreement.
5. LIABILITY OF 5D. 5D's liability shall be limited to the extent it
acts as sublessor of the Master Lease. 5D shall not be liable for breaches of
the Master Lease by SKYNET, subject to paragraph 6 herein.
2
<PAGE>
6. AUTHORITY TO PROSECUTE CLAIMS. For so long as this Agreement shall
remain in effect, 5D hereby appoints CSB as attorney-in-fact of 5D for the
purpose of pursuing and prosecuting any claim deemed by CSB to be worthy of
pursuit or prosecution against SKYNET for any breach or potential breach of
the Master Lease or other conduct by SKYNET which, in the opinion of CSB
adversely or may adversely affect the interests of CSB hereunder. CSB, as
attorney-in-fact may prosecute or bring such action before any court, agency,
arbitral body or other entity which may have jurisdiction over such matter,
for and in the name of 5D, and such power, being coupled with an interest, is
irrevocable. Notice of any such prosecution or action by CSB must be given to
5D pursuant to section 10 herein. CSB agrees to indemnify and hold harmless
5D for any and all costs and attorneys fees directly incurred by or assessed
against 5D as a result of such prosecution or action brought by CSB. 5D
acknowledges that any breach or the Master Lease by SKYNET or other conduct
by SKYNET which adversely or may adversely affect the interests of CSB under
this Agreement, would cause 5D direct and actual damages or losses under the
terms of the Master Lease insofar as and to the extent CSB would suffer or
incur direct and/or actual damages as a result of said breach or adverse
conduct. The payment, settlement or other recovery by CSB as attorney-in fact
of 5D shall inure to the benefit of CSB.
7. REPRESENTATIONS OF 5D. 5D represents and warrants as follows:
a. That it is not currently in default of nor is it aware of any event
that with the notice or lapse of time, or both, would constitute a default of
any of its obligations, including the obligation of payment, under the Master
Lease;
b. That it will cooperate and exercise best efforts to obtain the
consent, approval and recognition of this Agreement by SKYNET, whether or not
required pursuant to the terms of the Master Lease or applicable Tariffs,
which consent, approval and recognition shall include consent and approval of
direct payment by CSB to SKYNET pursuant to section 3 herein and deposit of
the security deposit by CSB to SKYNET pursuant to section 4 herein.
c. That 5D does not currently have any other transponder leases or
other obligations with SKYNET other than those leases being subleased to CSB
and will not obtain any other transponder leases or obligations with SKYNET
or a third party which will in any way encumbers or would encumber or affect
the rights and obligations now existing under the Master Lease or the rights
of CSB under this Agreement.
d. That SKYNET has consented and approved of the assignment of the
Master Lease from Fifth Dimension Communications (Barbados) Inc. to 5D.
8. RENEWAL. To the extent available, CSB shall have any and all rights
and options to renew this Agreement as 5D has under the terms of the Master
Lease.
3
<PAGE>
9. MASTER LEASE. This Agreement and sublease is subject to the Master
Lease, as that term is defined in the recitals, and all amendments thereto.
The provisions of the Master Lease are applicable to this sublease as though
SKYNET, as lessor under the Master Lease, were the sublessor under this
Agreement and as though 5D as lessee under the Master Lease was sublessee CSB
under this Agreement. 5D shall not be liable for breaches of the Master Lease
by SKYNET, subject to paragraph 6 herein. CSB acknowledges that it has
received a copy of the Master Lease and represents that it will not cause or
allow to be caused any default under the Master Lease and that it will
indemnify 5D against any loss, liability, and expenses (including reasonable
attorneys' fees and costs) arising out of any default under the Master Lease
caused by CSB, and 5D will indemnify CSB against any loss, liability, and
expenses (including reasonable attorneys' fees and costs) arising out of any
default under the Master Lease caused by 5D.
10. NOTICES. All notices, demands, requests, or other communications
which may be or are required to be given, served, or sent by one party to the
other party pursuant to this Agreement shall be in writing and shall be
delivered by hand or mailed first-class, registered or certified mail, return
receipt requested, postage prepaid, addressed as follows:
If to 5D: Fifth Dimension Communications Holdings, Inc.
Stuart K. Duncan - President
2500 Don Ried Drive
Ottawa, Ontario K1M 8P5
If to CSB: Colorado Satellite Broadcasting, Inc.
Mark R. Kreloff- President
1050 Walnut Street, Suite 301
Boulder, CO 80302
11. INDEPENDENT CONTRACTOR. Except to the limited extent allowed under
section 6, nothing herein contained shall create any association,
partnership, joint venture, the relationship of principal and agent, or the
relationship of employer and employee between the parties hereto, it being
understood that 5D shall perform and provide as sublessor, all services
hereunder as an independent contractor.
12. GOVERNING LAW. This Agreement shall be governed by and construed
under the laws of the State of Colorado.
13. HEADINGS. The headings used throughout this Agreement are for
conveniences only and are not a part of this Agreement and shall have no
effect upon the construction and interpretation of this Agreement.
14. WAIVER. A waiver by either party of any of the terms and conditions
of this Agreement or any term and condition of the Master Lease in any
instance shall not be
4
<PAGE>
deemed or construed to be a waiver of such term and condition for the future,
or any subsequent breach thereof To the extent any waiver by 5D of any term
and condition of the Master Lease will or may adversely affect CSB's rights
hereunder, 5D must first obtain the written consent of CSB before any such
waiver.
15. SEVERALBILTY. If any provision of this Agreement, as applied to
either party or to any circumstance, shall be adjudged to be void or
unenforceable by any court, arbitral body, agency or other entity having
jurisdiction, the same shall in no way affect any other provision in any
other circumstances.
16. ASSIGNMENT AND TRANSFER. Either party may assign and/or transfer its
rights, duties and obligations under this Agreement in its entirety: (a) in
connection with the sale of all or substantially all of its assets; (b) to
its parent corporation, or (c) to any wholly owned affiliate or subsidiary of
the respective assignor, PROVIDED, however, that any such assignment or
transfer is in accordance with the terms and conditions of Master Lease.
IN WITNESS WHEREOF, the parties hereto have entered into this Agreement
and sublease as of the day and year above written.
Fifth Dimension Communications Holdings, Inc.
By:
Title:
Colorado Satellite Broadcasting, Inc.
By:
Title:
GUARANTEE
New Frontier Media, Inc. (the "Guarantor"), in consideration of the sum of
$2.00 now paid by Fifth Dimension Communications Holdings, Inc.("5D") to the
Guarantor (the receipt whereof is hereby acknowledged) and other valuable
consideration, hereby directly and unconditionally guarantees to and
covenants with 5D that:
5
<PAGE>
(1) Colorado Satellite Broadcasting, Inc. ("CSB") will duly perform and
observe each and every covenant, condition and term in the above agreement on
the part of CSB to be performed and observed, including the payment of sums
agreed to be paid or payable under the above agreement on the days and at the
time and in the manner specified ill the above Agreement;
(2) if any default shall be made by CSB, whether in payment of any sums from
time to time falling due under the above agreement as and when the same
become due and payable or in the performance or observance of any of the said
covenants, conditions or terms, the Guarantor will forthwith pay to 5D on
demand all sums in respect of which such default shall have occurred and all
damages that may arise in consequence of the non-observance or
non-performance of any of the said covenants, conditions or terms;
(3) the Guarantor is jointly and severally bound with CSB for the fulfillment
of all obligations of CSB under the above agreement;
(4) in the enforcement of its rights under the above agreement, 5D may
proceed against the Guarantor as if the Guarantor was a party to the above
agreement in place of CSB;
(5) the Guarantor hereby waives any rights to require 5D to proceed against
CSB or to take or perfect or proceed against or to exhaust any security held
from CSB or others or to pursue any other remedy whatsoever which may be
available to the SD before proceeding against the Guarantor;
(6) no neglect or forbearance of 5D in endeavoring to obtain payments
required to be made under the above agreement as and when the same become
due, no delay of 5D in taking any steps to enforce performance or observance
of the several covenants, conditions or terms of the above agreement to be
performed or observed by CSB, no extension or extensions of time which may be
given by 5D from time to time to CSB, and no other act or failure to act of
or by 5D shall release, discharge or in any way reduce the obligations of the
Guarantor under this guarantee; and
(7) in the event of a default by CSB under the above agreement, the Guarantor
will pay all amounts payable or to be paid at any time under the above
agreement.
IN WITNESS WHEREOF New Frontier Media, Inc. has entered into this guarantee
as of the day and year above written.
New Frontier Media, Inc.
By:
Title:
6
<PAGE>
TRANSPONDER SUBLEASE
AGREEMENT BETWEEN
Fifth Dimension Communications Holdings, Inc.
AND
Colorado Satellite Broadcasting, Inc.
CONCERNING SKYNET TRANSPONDER SERVICE ON TELSTAR 5
THIS SUBLEASE is made on this _______ day of_______________ 1997 by and
between Fifth Dimension Communications Holdings, Inc., a corporation
organized and existing under the laws of the State of Delaware and having its
primary Canadian place of business at 2500 Don Reid Drive, Ottawa, Ontario
K1H 8P5 (hereinafter referred to as "5D") and Colorado Satellite
Broadcasting, Inc., a corporation organized and existing under the laws of
Colorado and having its primary place of business at 1050 Walnut Street,
Suite 301, Boulder, Colorado 80302 (hereinafter referred to as "CSB").
RECITALS:
A. LORAL SKYNET, (hereinafter referred to as "SKYNET") operates a
domestic satellite system and offers services on such system in accordance
with FCC Tariff No. 7 ("Tariff") filed with the Federal Communications
Commission ("FCC").
B. Fifth Dimension Communications (Barbados) Inc. entered into an
Agreement with SKYNET dated July 1, 1997 (hereinafter "Master Lease"), for
SKYNET satellite service and is entitled to transponder service consisting of
service on three (3) Preemptible C-Band 36MHz 20 Watt transponders on Telstar
5 for service which began on In-Service date of Telstar 5 and terminates on
the five year anniversary of such In-Service date.
C. Fifth Dimension Communications (Barbados) has assigned its rights
and interest in the Master Lease to 5D.
D. 5D wishes to sublease to CSB and CSB wishes to sublease from 5D all
rights and obligations 5D has in the Master Lease dated July 1, 1997.
ACCORDINGLY, 5D, in consideration of the payment by CSB to SKYNET for the
satellite and transponder services and such other adequate consideration
which is hereby acknowledge, 5D agrees to sublease its rights under the
Master Lease as follows:
1
<PAGE>
AGREEMENT
1. AGREEMENT. 5D subleases its rights in the SKYNET satellite and
Transponder Service as granted to 5D pursuant to the Master Lease and
according to the terms and conditions set forth therein to CSB. The
provisions of the Master Lease, all amendments thereto and all applicable FCC
Tariffs filed with the Federal Communications Commission are incorporated
into this Agreement between 5D, as sublessor, and CSB, as sublessee as though
5D was SKYNET and as though CSB was lessee under the Master Lease. 5D shall
not be liable for breaches of the Master Lease by SKYNET, subject to
paragraph 6 herein.
2. TERM. The term of this sublease shall begin on the closing date of
the Asset Purchase Agreement dated September 5, 1997 between New Frontier
Media, Inc., and Colorado Satellite Broadcasting, Inc., as first parties, and
Fifth Dimension Communications (Barbados) Inc. and Merlin Sierra, Inc., as
second parties, ("Asset Purchase Agreement") and shall end on December 31,
1999, unless renewed at CSB's option according to the terms and conditions of
the Master Lease.
3. PAYMENT. CSB shall pay for the Transponder Service in accordance
with the following:
Quantity Service Satellite Term Monthly Rate
- --------------------------------------------------------------------------------
1 C-Band 36 MHz Telstar 5 I.S. for 5 Years $125,000.00
Preemptible transponder
Payment under this Agreement shall be made, according to the terms and
conditions associated with SKYNET's billing for the services, directly to
SKYNET which shall receive payment at least five (5)days before the beginning
of each month. Confirmation of such payment shall be made to 5D
simultaneously with the payment to SKYNET at the following address:
Fifth Dimension Communications Holdings, Inc.
Stuart K. Duncan - President
2500 Don Reid Drive
Ottawa, Ontario K1H 8P5
4. DEPOSIT. CSB shall provide to 5D no later than the closing date of
the Asset Purchase Agreement a letter of credit on terms reasonably
acceptable to 5D in the amount of $USD375,000.00 to be used and applied as a
security in the event of a default by CSB under any of the terms and
conditions of this Agreement.
5. LIABILITY OF 5D. 5D's liability shall be limited to the extent it
acts as sublessor of the Master Lease. 5D shall not be liable for breaches of
the Master Lease by SKYNET, subject to paragraph 6 herein.
2
<PAGE>
6. AUTHORITY TO PROSECUTE CLAIMS. For so long as this Agreement shall
remain in effect, 5D hereby appoints CSB as attorney-in-fact of 5D for the
purpose of pursuing and prosecuting any claim deemed by CSB to be worthy of
pursuit or prosecution against SKYNET for any breach or potential breach of
the Master Lease or other conduct by SKYNET which, in the opinion of CSB
adversely or may adversely affect the interests of CSB hereunder. CSB, as
attorney-in-fact may prosecute or bring such action before any court, agency,
arbitral body or other entity which may have jurisdiction over such matter,
for and in the name of 5D, and such power, being coupled with an interest, is
irrevocable. Notice of any such prosecution or action by CSB must be given to
5D pursuant to section 10 herein. CSB agrees to indemnify and hold harmless
5D for any and all costs and attorneys fees directly incurred by or assessed
against 5D as a result of such prosecution or action brought by CSB. 5D
acknowledges that any breach or the Master Lease by SKYNET or other conduct
by SKYNET which adversely or may adversely affect the interests of CSB under
this Agreement, would cause 5D direct and actual damages or losses under the
terms of the Master Lease insofar as and to the extent CSB would suffer or
incur direct and/or actual damages as a result of said breach or adverse
conduct. The payment, settlement or other recovery by CSB as attorney-in fact
of 5D shall inure to the benefit of CSB.
7. REPRESENTATIONS OF 5D. 5D represents and warrants as follows:
a. That it is not currently in default of nor is it aware of any event
that with the notice or lapse of time, or both, would constitute a default of
any of its obligations, including the obligation of payment, under the Master
Lease;
b. That it will cooperate and exercise best efforts to obtain the
consent, approval and recognition of this Agreement by SKYNET, whether or not
required pursuant to the terms of the Master Lease or applicable Tariffs,
which consent, approval and recognition shall include consent and approval of
direct payment by CSB to SKYNET pursuant to section 3 herein and deposit of
the security deposit by CSB to SKYNET pursuant to section 4 herein.
c. That 5D does not currently have any other transponder leases or
other obligations with SKYNET other than those leases being subleased to CSB
and will not obtain any other transponder leases or obligations with SKYNET
or a third party which will in any way encumbers or would encumber or affect
the rights and obligations now existing under the Master Lease or the rights
of CSB under this Agreement.
d. That SKYNET has consented and approved of the assignment of the
Master Lease from Fifth Dimension Communications (Barbados) Inc. to 5D.
8. RENEWAL. To the extent available, CSB shall have any and all rights
and options to renew this Agreement as 5D has under the terms of the Master
Lease.
3
<PAGE>
9. MASTER LEASE. This Agreement and sublease is subject to the Master
Lease, as that term is defined in the recitals, and all amendments thereto.
The provisions of the Master Lease are applicable to this sublease as though
SKYNET, as lessor under the Master Lease, were the sublessor under this
Agreement and as though 5D as lessee under the Master Lease was sublessee CSB
under this Agreement. 5D shall not be liable for breaches of the Master Lease
by SKYNET, subject to paragraph 6 herein. CSB acknowledges that it has
received a copy of the Master Lease and represents that it will not cause or
allow to be caused any default under the Master Lease and that it will
indemnify 5D against any loss, liability, and expenses (including reasonable
attorneys' fees and costs) arising out of any default under the Master Lease
caused by CSB, and 5D will indeMnify CSB against any loss, liability, and
expenses (including reasonable attorneys' fees and costs) arising out of any
default under the Master Lease caused by 5D.
10. NOTICES. All notices, demands, requests, or other communications
which may be or are required to be given, served, or sent by one party to the
other party pursuant to this Agreement shall be in writing and shall be
delivered by hand or mailed first-class, registered or certified mail, return
receipt requested, postage prepaid, addressed as follows:
If to 5D: Fifth Dimension Communications Holdings, Inc.
Stuart K. Duncan - President
2500 Don Ried Drive
Ottawa, Ontario K1H 8P5
If to CSB: Colorado Satellite Broadcasting, Inc.
Mark R. Kreloff- President
1050 Walnut Street, Suite 301
Boulder, CO 80302
11. INDEPENDENT CONTRACTOR. Except to the limited extent allowed under
section 6, nothing herein contained shall create any association,
partnership, joint venture, the relationship of principal and agent, or the
relationship of employer and employee between the parties hereto, it being
understood that 5D shall perform and provide as sublessor, all services
hereunder as an independent contractor.
12. GOVERNING LAW. This Agreement shall be governed by and construed
under the laws of the State of Colorado.
13. HEADINGS. The headings used throughout this Agreement are for
conveniences only and are not a part of this Agreement and shall have no
effect upon the construction and interpretation of this Agreement.
14. WAIVER. A waiver by either party of any of the terms and conditions
of this Agreement or any term and condition of the Master Lease in any
instance shall not be
4
<PAGE>
deemed or construed to be a waiver of such term and condition for the future,
or any subsequent breach thereof. To the extent any waiver by 5D of any term
and condition of the Master Lease will or may adversely affect CSB's rights
hereunder, 5D must first obtain the written consent of CSB before any such
waiver.
15. SEVERALBILTY. If any provision of this Agreement, as applied to
either party or to any circumstance, shall be adjudged to be void or
unenforceable by any court, arbitral body, agency or other entity having
jurisdiction, the same shall in no way affect any other provision in any
other circumstances.
16. ASSIGNMENT AND TRANSFER. Either party may assign and/or transfer its
rights, duties and obligations under this Agreement in its entirety: (a) in
connection with the sale of all or substantially all of its assets; (b) to
its parent corporation, or (c) to any wholly owned affiliate or subsidiary of
the respective assignor, PROVIDED, however, that any such assignment or
transfer is in accordance with the terms and conditions of Master Lease.
IN WITNESS WHEREOF, the parties hereto have entered into this Agreement
and sublease as of the day and year above written.
Fifth Dimension Communications Holdings, Inc.
By:
Title:
Colorado Satellite Broadcasting, Inc.
By:
Title:
GUARANTEE
New Frontier Media, Inc. (the "Guarantor"), in consideration of the sum of
$2.00 now paid by Fifth Dimension Communications Holdings, Inc.("5D") to the
Guarantor (the receipt whereof is hereby acknowledged) and other valuable
consideration, hereby directly and unconditionally guarantees to and
covenants with 5D that:
5
<PAGE>
(1) Colorado Satellite Broadcasting, Inc. ("CSB") will duly perform and observe
each and every covenant, condition and term in the above agreement on the part
of CSB to be performed and observed, including the payment of sums agreed to be
paid or payable under the above agreement on the days and at the time and in the
manner specified in the above Agreement;
(2) if any default shall be made by CSB, whether in payment of any sums from
time to time falling due under the above agreement as and when the same become
due and payable or in the performance or observance of any of the said
covenants, conditions or terms, the Guarantor will forthwith pay to 5D on demand
all sums in respect of which such default shall have occurred and all damages
that may arise in consequence of the non-observance or non-performance of any of
the said covenants, conditions or terms;
(3) the Guarantor is jointly and severally bound with CSB for the fulfillment
of all obligations of CSB under the above agreement;
(4) in the enforcement of its rights under the above agreement, 5D may proceed
against the Guarantor as if the Guarantor was a party to the above agreement in
place of CSB;
(5) the Guarantor hereby waives any rights to require 5D to proceed against CSB
or to take or perfect or proceed against or to exhaust any security held from
CSB or others or to pursue any other remedy whatsoever which may be available to
the 5D before proceeding against the Guarantor;
(6) no neglect or forbearance of 5D in endeavoring to obtain payments required
to be made under the above agreement as and when the same become due, no delay
of 5D in taking-any steps to enforce performance or observance of the several
covenants, conditions or terms of the above agreement to be performed or
observed by CSB, no extension or extensions of time which may be given by 5D
from time to time to CSB, and no other act or failure to act of or by 5D shall
release, discharge or in any way reduce the obligations of the Guarantor under
this guarantee; and
(7) in the event of a default by CSB under the above agreement, the Guarantor
will pay all amounts payable or to be paid at any time under the above
agreement.
IN WITNESS WHEREOF New Frontier Media, Inc. has entered into this guarantee as
of the day and year above written.
New Frontier Media, Inc.
By:
Title:
6
<PAGE>
SCHEDULE 2.1(c)
PROMISSORY NOTE
[attached]
<PAGE>
PROMISSORY NOTE
$814,229 , 1997
FOR VALUE RECEIVED, Colorado Satellite Broadcasting, Inc. ("Maker")
promises to pay to the order of Fifth Dimension Communications (Barbados)
Inc. and Merlin Sierra, Inc. (collectively "Holder") at ________________, or
at such other place as the holder hereof may from time to time designate in
writing, the principal sum of EIGHT HUNDRED FOURTEEN THOUSAND TWO HUNDRED
TWENTY NINE DOLLARS (USD$814,229) plus interest thereon as set forth herein.
Interest shall be calculated at the rate of prime plus one percent (1%),
based on the prime rate of Bank One as of the date hereof, and recalculated at
the beginning of each quarter, but in no event shall the interest rate be
greater than nine percent (9%) per annum, nor less than six percent (6%) per
annum.
This Note shall accrue interest at the aforesaid rate, compounded monthly
and all accrued interest shall be paid on [date which is twelve months from
closing] and thereafter, interest shall be paid monthly until the principal
and all accrued interest is paid in full.
On [date which is thirty six months from closing] Maker shall pay to
Holder the entire remaining balance of principal and all accrued but unpaid
interest.
Principal and interest shall be paid in lawful money of the United States
and in immediately available funds.
1. Maker may at any time prepay all or any part of this note or accrued
interest thereon at any time without penalty.
2. Each of the following events will constitute an event of default (an "Event
of Default") under this Note and under the Security Agreement executed of
even date herewith, and each other document securing or executed in
connection with this Note (collectively, the "Credit Documents"), and any
material Event of Default under any Credit Document shall constitute an
Event of De-
<PAGE>
fault hereunder and under each of the other Credit Documents:
A. If Maker shall sell all or substantially all its assets;
B. If the Maker shall default in the making of any payment of
principal and/or interest due hereunder and if the same remains unpaid
for five (5) days following receipt by Maker of written notice of such
default; or
C. If Maker shall have made a voluntary assignment for the benefit of
creditors, or if proceedings shall have been commenced under the
bankruptcy laws by or against Maker, or if a receiver or trustee shall
have been appointed for the benefit of creditors against Maker;
provided, however, that Maker shall not be deemed to be in default due
to any involuntary proceedings brought against it if such proceedings
are dismissed or resolved in favor of Maker within sixty (60) days
from the commencement of such proceedings.
3. Upon the occurrence of any Event of Default, the entire balance of
principal, accrued interest, and other sums owing hereunder shall, at the
option of Holder, become at once due and payable without notice or demand,
and Holder shall have the option, in its sole discretion, to exercise any
remedies available to it under the Credit Documents, at law or in equity.
No delay or omission by the Holder in exercising any right hereunder shall
operate as a waiver of such right or any other right of the Holder. A
waiver of any right by Holder on one occasion shall not be construed as a
bar to or as a waiver of any right in the future. None of the provisions
hereof and none of the rights of the Holder shall be deemed to have been
waived by acceptance of any partial amount or by any other indulgence
granted to the Maker.
(a) The entire balance of principal, interest, and other sums due upon the
maturity hereof, by acceleration or otherwise, shall bear interest from the
date due until paid at the greater of (i) eighteen percent (18%) per annum
or (ii) a per annum rate equal to five percent (5%) over the prime rate
(for corporate loans at large United States money center commercial banks)
published in THE WALL STREET JOURNAL on the first business day of each
month (the "Default Rate"); provided, however, that such rate shall not
exceed the maximum permitted by applicable state or federal law.
2
<PAGE>
In the event THE WALL STREET JOURNAL is no longer published or no longer
publishes such prime rate, Holder shall select a comparable reference.
(b) If any payment under this Note is not made when due, interest shall
accrue at the Default Rate from the date five (5) days after the date such
payment was due until payment is actually made.
4. In addition to interest as set forth herein, Maker shall pay to Holder a
late charge equal to five percent (5%) of any amounts due under this Note
in the event any such amount is not paid when due.
5. All payments hereunder shall be applied first to the payment of late
charges, if any, then to the payment of prepayment premiums, if any, then
to the payment of accrued and unpaid interest, and then to the reduction of
principal.
6. The Maker of this Promissory Note, for itself and its legal representatives,
successors and assigns, hereby expressly waives presentment, demand,
protest, notice of protest, presentment for the purpose of accelerating
maturity, diligence in collection, and the benefit of any exemption under
the homestead exemption laws, if any, or any other exemption or insolvency
laws, and consents that the Holder may extend the time for payment of any
part or the whole of the indebtedness evidenced hereby.
7. If this Promissory Note shall not be paid when due and shall be placed by
the Holder hereof in the hands of any attorney for collection, through
legal proceedings or otherwise, the Maker shall pay a reasonable attorney's
fee to the Holder hereof together with reasonable costs and expenses of
collection.
8. The provisions of this Note and of all agreements between Maker and Holder
are, whether now existing or hereinafter made, hereby expressly limited so
that in no contingency or event whatever, whether by reason of acceleration
of the maturity hereof, prepayment, demand for payment or otherwise, shall
the amount paid, or agreed to be paid, to Holder for the use, forbearance,
or detention of the principal hereof or interest hereon, which remains
unpaid from time to time, exceed the maximum amount permissible under
applicable law, it particularly being the intention of the parties hereto
to conform strictly to Colorado and Federal law, which-
3
<PAGE>
ever is applicable. If from any circumstance whatever, the performance
or fulfillment of any provision hereof or of any other agreement between
Maker and Holder shall, at the time performance or fulfillment of such
provision is due, involve or purport to require any payment in excess of
the limits prescribed by law, then the obligation to be performed or
fulfilled is hereby reduced to the limit of such validity, and if from any
circumstance whatever Holder should ever receive as interest an amount
which would exceed the highest lawful rate, the amount which would be
excessive interest shall be applied to the reduction of the principal
balance owing hereunder (or, at Holder's option, be paid over to Maker) and
shall not be counted as interest. To the extent permitted by applicable law,
determination of the legal maximum amount of interest shall at all times be
made by amortizing, prorating, allocating and spreading in equal parts
during the period of the full stated term of this Note, all interest at any
time contracted for, charged, or received from Maker in connection with this
Note and all other agreements between Maker and Holder, so that the actual
rate of interest on account of the indebtedness represented by this Note is
uniform throughout the term hereof.
9. This Promissory Note, together with all the rights and obligations of the
Holder and Maker hereunder shall be governed by, and construed,
interpreted, and enforced in accordance with, the applicable laws of the
State of Colorado.
10. This Note is secured by a Security Agreement, Fixture Filing, and Financing
Statement, all dated of even date herewith granted by Maker for the benefit
of the named Holder hereof.
11. If any provision hereof or of any other document securing or related to the
indebtedness evidenced hereby is, for any reason and to any extent, invalid
or unenforceable, then neither the remainder of the document in which such
provision is contained, nor the application of the provision to other
persons, entities, or circumstances, nor any other document referred to
herein, shall be affected thereby, but instead shall be enforceable to the
maximum extent permitted by law.
12. Each provision of this Note shall be and remain in full force and effect
notwithstanding any negotiation or transfer hereof and any interest herein
to any other Holder.
4
<PAGE>
13. The remedies provided to Holder in this Note, the Security Agreement and
the other Credit Documents are cumulative and concurrent and may be
exercised singly, successively or together against Maker, and other
security, or any guarantor of this Note, at the sole and absolute
discretion of the Holder.
14. If Maker is more than one entity, or if this Note is guaranteed by another
entity, then (a) all entities comprising Maker and any guarantor are
jointly and severally liable for all of the Maker's obligations hereunder;
(b) all representations, warranties, and covenants made by Maker shall be
deemed representations, warranties, and covenants of each of the entities
comprising Maker; and (c) any breach, Default or Event of Default by any of
the entities comprising Maker or any guarantor hereunder shall be deemed to
be a breach, Default, or Event of Default of Maker.
Maker
- ----------------------------------
by:
Guarantee:
FOR VALUABLE CONSIDERATION, the receipt of which is hereby acknowledged,
the undersigned New Frontier Media, Inc. ("Guarantor") unconditionally
guarantees to Holder (i) the full and prompt performance by Colorado
Satellite Broadcasting, Inc. ("Maker"), of all obligations which Maker
presently or hereafter may have to Holder and (ii) payment when due of all
sums presently or hereafter owing by Maker to Holder. Guarantor further
agrees to indemnify Holder against any losses Holder may sustain and expenses
Holder may incur as a result of any wrongful act of Maker. This is an
unconditional guarantee of payment of all indebtedness of Maker to Holder, or
any part thereof, by Guarantor and Guarantor acknowledges and agrees that
Holder may proceed against Guarantor without first exercising Holder's rights
against Maker or any collateral.
5
<PAGE>
For the purposes of this guarantee and indemnity, all sums owing to
Holder by Maker shall be deemed to have become immediately due and payable if
(a) Maker defaults in any of its obligations to Holder; (b) a petition under
any Chapter of the Bankruptcy Act, as amended, or for the appointment of a
receiver of any part of the property of Maker be filed against Maker, and is
not dismissed within thirty (30) days; (c) such a petition is filed by Maker;
(d) Maker makes a general assignment for the benefit of creditors, suspends,
business or commits any act amounting to a business failure; or (e) Maker
sells all or substantially all of its assets.
This shall be a continuing guarantee and indemnity, and irrespective of
the lack of any notice to or consent of the undersigned, their obligations
hereunder shall not be impaired in any manner whatsoever by any renewal,
extension or indulgence. Guarantor hereby authorizes assured party, without
notice or demand, to (a) change the terms of all or any part of the
obligation guaranteed hereby, including without limitation, releasing,
extending, or compromising the same, changing the time for payment thereof,
and changing the rate of interest thereon; (b) take, or decline to take,
collateral for the payment of the obligation guaranteed hereby and exchange,
enforce or fail to enforce, fail to perfect, or release its interest in any
such collateral; and (c) release or substitute, or impair or suspend, any
remedy against any principal Maker, or any other guarantor of, or anyone else
liable on the obligation guaranteed hereby.
Notice of assured party's acceptance hereof, of default and nonpayment by
Maker or any other parties, of presentment, protest and demand, and of all
other matters of which the undersigned otherwise might be entitled are hereby
waived by the undersigned. The obligations hereunder of Guarantor shall be
binding on my heirs and personal representatives.
Guarantor shall reimburse Holder, on demand, for any and all expenses
incurred by Holder in the enforcement or attempted enforcement of any of
Holder's rights hereunder against Guarantor including, but not limited to,
all reasonable attorneys' fees and costs.
This Guarantee and indemnity is assignable by Holder, shall be construed
literally in Holder's favor and shall inure to the benefit of Holder's
successors and assigns. Until all indebtedness covered hereby has been paid
in full, Guarantor shall not be subrogated to any of Holder's rights against
Maker, or any collateral and any funds or other
6
<PAGE>
property at any time received by Guarantor from Maker shall be held in trust
for and shall be paid or transferred to Holder upon demand therefor. Legal
rights and obligations hereunder shall be determined in accordance with the
laws of the State of Colorado.
Guarantor:
- -----------------------------------
7
<PAGE>
EXHIBIT A TO SCHEDULE 2.1(c)
SECURITY AGREEMENT
[attached]
<PAGE>
WARRANT NO. P-
WARRANT TO PURCHASE COMMON SHARES
OF
NEW FRONTIER MEDIA, INC.
Warrant to Purchase 400,000 Common Shares
(subject to adjustment as set forth herein)
Exercise Price $5.00 Per Share
(subject to adjustment as set forth herein)
NOT EXERCISABLE AT ANY TIME BEFORE NOVEMBER ____, 1998 OR AFTER
3:00 P.M. MOUNTAIN TIME NOVEMBER ____, 2003.
THE SECURITIES REPRESENTED BY THIS WARRANT HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933 (THE "ACT") OR REGISTERED OR QUALIFIED UNDER
ANY OTHER APPLICABLE FEDERAL OR STATE SECURITIES LAWS. THESE SECURITIES MAY
NOT BE OFFERED FOR SALE, SOLD, OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT OR QUALIFICATION FILED IN ACCORDANCE WITH
THE ACT OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE ACT.
New Frontier Media, Inc., 1050 Walnut Street, Suite 301, Boulder,
Colorado 80302, a Colorado corporation (the "Company"), hereby certifies
that, for $100 received in hand, [INSERT CORP NAME AND ADDRESS] , a __________
--------------------------------
corporation, or its lawful assigns (the "Holder"), is entitled, subject to
the terms and conditions set forth below, to purchase from the Company at any
time on or after November ________, 1998, but before 3:00 p.m. Mountain Time
on November _____, 2003, up to 400,000 Common Shares of the Company at a
purchase price price of $5.00 per Share (the "Exercise Price").
The number and character of the Shares purchasable upon exercise of this
Warrant and the Exercise Price are subject to adjustment as provided below.
The term "Warrant" as used herein shall include this Warrant and any Warrants
issued in substitution for or replacement of this Warrant, or any Warrants
into which this Warrant may be divided or exchanged. The shares purchasable
upon exercise of this Warrant are hereinafter referred to as "Warrant Shares."
1
<PAGE>
1. EXERCISE OF WARRANT.
(a) Subject to the other terms and conditions of this Warrant, the
purchase rights evidenced by this Warrant may be exercised in whole or
in part at any time, and from time to time, on or after November _____,
1998, but before 3:00 p.m. Mountain Time on November _____, 2003, by the
Holder's presentation and surrender of this Warrant to the Company at
its principal office, accompanied by a duly executed Notice of Exercise,
in the form attached to and by this reference incorporated in the
Warrant as Exhibit A, and by payment of the aggregate Exercise Price, in
certified funds or a bank cashier's check, for the number of Warrant
Shares specified in the Notice of Exercise. In the event this Warrant
is exercised in part only, as soon as is practicable after the
presentation and surrender of this Warrant to the Company for exercise,
the Company shall execute and deliver to the Holder a new Warrant,
containing the same terms and conditions as this Warrant, evidencing the
right of the Holder to purchase the number of Warrant Shares as to which
this Warrant has not been exercised.
(b) Upon receipt of this Warrant by the Company as described in
subsection (a) above, the Holder shall be deemed to be the holder of
record of the securities comprising the Warrant Shares issuable upon
such exercise, notwithstanding that the transfer books of the Company
may then be closed or that certificated representing such securities may
not have been prepared or actually delivered to the Holder.
(c) Prior to the issuance of any Warrant Shares upon exercise of this
Warrant, the Company shall secure the listing of such shares upon each
national securities exchange or automated quotation system, if any, upon
which shares of the Company's common stock are then listed (subject to
official notice of issuance upon exercise of this Warrant) and shall
maintain, so long as any other shares of common stock shall be so
listed, such listing of all shares of common stock from time to time
issuable upon the exercise of this Warrant, and the Company shall so
list on each national securities exchange or automated quotation system,
and shall maintain such listing of, any other shares of capital stock of
the Company issuable upon the exercise of this Warrant if and so long as
any shares of the same class as such shares shall be listed on such
national securities exchange or automated quotation system.
2. EXERCISE PRICE.
The Exercise Price of any Warrant(s) exercised by the Holder during the
Exercise Period shall be $5.00 per Share, as adjusted from time to time
pursuant to the terms of this Agreement. Notice of intent to exercise the
Warrant by the Holder shall be effective when such Notice of Intent is hand
delivered, mailed, or sent by facsimile tranfer to the Company.
2
<PAGE>
3. EXCHANGE, ASSIGNMENT, OR LOSS OF WARRANT.
(a) This Warrant may not be sold, transferred, assigned, or hypothecated
during its term, except for: (i) the transfer by operation of law as a
result of the death of any transferee to whom all or a portion of this
Warrant may be transferred; or, (ii) assignment or transfer of this
Warrant to one or more affiliates of the Holder or a successor to the
business and assets of the Holder. Any assignment or transfer of this
Warrant shall be made by the presentation and surrender of this Warrant
to the Company at its principal office, accompanied by a duly executed
Assignment Form, in the form attached to and by this reference
incorporated in this Warrant as Exhibit B. Upon the presentation and
surrender of these items to the Company, the Company, at its sole
expense, shall execute and deliver to the new Holder or Holders a new
Warrant or Warrants, containing the same terms and conditions as this
Warrant, in the name of the new Holder or Holders as named in the
Assignment Form, and this Warrant shall at that time be canceled.
(b) The Company will execute and deliver to the Holder a new Warrant
containing the same terms and conditions as this Warrant containing the
same terms and conditions as this Warrant upon receipt by the Company of
evidence reasonably satisfactory to it of the loss, theft, destruction,
or mutilation of this Warrant, provided that in the case of loss, theft,
or destruction, the Company receives from the Holder a reasonably
satisfactory indemnification, and in the case of mutilation, the Holder
presents and surrenders this Warrant to the Company for cancellation.
4. REGISTRATION UNDER THE SECURITIES ACT OF 1933.
(a) If at any time during the Exercise Period the Company should file a
registration statement for an offering of its stock with the United
States Securities and Exchange Commission pursuant to the Securities Act
of 1933, as amended (the "Act"), or pursuant to any other act passed
after the date of this Agreement, which filing provides for the sale of
securities by the Company to the public, or file a Regulation A Offering
Statement under the Act, the Company shall offer to the Holder or
Holders of this Warrant and the holders of any Warrant Shares the
opportunity to register or qualify the Warrant (if prior to its
expiration), Warrant Shares and any shares of Common Stock underlying
the unexercised portion of this Warrant if any, at the Company's sole
expense, regardless of whether the Holder or Holders of this Warrant or
the holders of Warrant Shares, or both, may have previously availed
themselves of any of the registration rights described in this Section
4; provided, however, that in the case of a Regulation A offering, the
opportunity to qualify shall be limited to the amount of the available
exemption after taking into account the securities that the Company
wishes to qualify; and further provided that such obligation to include
the Holder or Holders in such registration shall be explicitly
conditioned on approval of such inclusion by the managing underwriter of
the offering, and only if the managing underwriter reasonably believes
that such inclusion would adversely affect the price or distribution of
the Company's
3
<PAGE>
securities. Notwithstanding anything to the contrary, this subsection
(a) shall not be applicable to a registration statement filed by the
Company with the United States Securities and Exchange Commission for
securities aggregating ten percent (10%) of the then issued and
outstanding common stock of the Company to be offered solely to
employees of the Company pursuant to various plans, registrations
statements on Form S-4, or any other successor or appropriate Form(s).
The Company shall deliver written notice to the Holder or Holders of
this Warrant and to any holders of the Warrant Shares of its intention
to file a registration statement or Regulation A Offering Statement
under the Act at least 60 days prior to the filing of such registration
statement or offering statement, and the Holder or Holders and holders
of Warrant Shares shall have 30 days thereafter to request in writing
that the Company register or qualify the Warrant, Warrant Shares or the
Common Stock underlying the unexercised portion of this Warrant, in
accordance with this subsection (a). Upon the delivery of such a
written request within the specified time, the Company shall be
obligated to include in its contemplated registration statement or
offering statement all information necessary or advisable to register or
qualify the Warrant, Warrant Shares or the shares of Common Stock
underlying the unexercised portion of this Warrant, for a public
offering, if the Company does not file the contemplated registrations
statement or offering statement; provided, however, that neither the
delivery of the notice by the Company not the delivery of a request by a
Holder or by a holder of Warrant Shares shall in any way obligate the
Company to file a registration statement or offering statement.
Furthermore, notwithstanding the filing of a registration statement or
offering statement, the Company may, at any time prior to the effective
date thereof, determine not to offer the securities to which the
registration statement or offering statement relates.
The Company shall pay for all expenses incurred under this section,
including, but not be limited to, legal, accounting, consulting,
printing, federal and state filing fees, NASD fees, out-of-pocket
expenses incurred by counsel, accountants and consultants retained by
the Company, and miscellaneous expenses directly related to the
registration statement or offering statement and the offering, but
excluding the portion of any underwriting commissions and transfer taxes
attributable to the offer and sale of the Warrant, Warrant Shares and
the Common Stock underlying the unexercised portion of this Warrant.
(b) Upon the written request of the Holder, made at any time after
November ___, 1999 but before November _____, 2003, the Company shall
file, within 90 days of such written request, a registration statement
or Regulation A Offering Statement pursuant to the Act, and all
necessary amendments thereto, to register or qualify up to 400,000
Warrant Shares, on a one-time only basis. This registration shall
qualify the 400,000 Warrant Shares on a continuing basis under Rule 415
under the Securities Act of 1933, as amended. No additional securities
shall be included in such registration statement or offering statement
without the written consent of the Holder. The Company may use the
Regulation A exemption if
4
<PAGE>
available, but the Company must file a registration statement if the
securities that are to be covered cannot be sold pursuant to Regulation
A because of the limitations applicable. The Company agrees to use its
best efforts to cause this registration or qualification to become
effective as promptly as practicable, and its officers, directors,
consultants, auditors and counsel shall cooperate in all matters
necessary or advisable to pursue this objective. The Holder shall be
entitled to exercise the rights described in this subsection (a) one
time only.
The Company shall pay all expenses relating to registration of Warrant
Shares under this section. Those expenses shall include, but not be
limited to, legal, accounting, consulting, printing, federal and state
filing fees, NASD fees, out-of-pocket expenses incurred by counsel,
accountants and consultants retained by the Company, and miscellaneous
expenses directly related to the registration statement or offering
statement and the offering. This expense shall not include the portion
of any underwriting commissions and transfer taxes attributable to the
offer and sale of the Warrant, Warrant Shares and the Common Stock
underlying the unexercised portion of this Warrant, all of which
expenses shall be borne by the Holder or Holders of this Warrant and the
holders of the Warrant Shares registered or qualified. The Company
shall not pay any brokerage fees, commissions or underwriting discounts
except to the extent they are attributable to other securities that the
Company has been permitted to register or qualify or to offer in
conjunction with the registration and qualification of the Warrant
Shares.
(c) The Holder agrees that it shall sell a maximum of 100,000 Warrant
Shares during any three-month period during the term of this agreement,
and shall be subject to all market disruption rules promulgated under
any federal or state securities act.
(d) In the event that the Company registers or qualifies the Warrant,
Warrant Shares or the shares of their Common Stock underlying the
unexercised portion of this Warrant, pursuant to subsections (a) or (b)
above, the Company shall include in the registration statement or
qualification, such information as is necessary or advisable to comply
with the applicable statutes and regulations so as to permit the public
sale of the Warrant, Warrant Shares or the Common Stock underlying the
unexercised portion of this Warrant. As used in subsections (a) and (b)
of this Section 4, reference to the Company's securities shall include,
but not be limited to any class or type of the Company's securities or
the securities of any of the Company's subsidiaries or affiliates.
(e) In addition to the registration rights described in subsections (a)
and (b) above, upon the written request of any Holder of this Warrant or
any holder of Warrant Shares, the Company, as promptly as possible after
delivery of such request, shall cooperate with the requesting Holder in
preparing and signing any registration statement or offering statement
that the Holder may desire to file in order to sell or transfer the
Warrant and Warrant Shares. Within 10 days after the delivery of the
written request described above, the Company shall deliver written
notice to all other Holders of this Warrant and holders of Warrant
Shares, of
5
<PAGE>
any, advising them that the Company is proceeding with a registration
statement or offering statement and that their Warrant and Warrant
Shares will be included therein if they so desire, provided that the
Holders deliver written notice to the Company of their desire to be
included within 10 days after the delivery of the Company's notice to
them. The Company will supply all information necessary or advisable
for any such registration statements or offering statements, and will
bear all of the costs of the first registration statement filed pursuant
to this section.
(f) As to each registration statement or offering statement, the
Company's obligations contained in this Section 4 shall be conditioned
upon a timely receipt by the Company in writing of the following:
(1) Information as to the terms of the contemplated public
offering furnished by and on behalf of each Holder intending to
make a public distribution of Warrant Shares or Common Stock
underlying the unexercised portion of the Warrant; and
(2) Such other information as the Company may reasonable require
from such Holders, or any underwriter for any of them, for
inclusion in the registration statement or offering statement.
(g) In each instance in which the Company shall take any action to
register or qualify the Warrant, Warrant Shares or the Common Stock
underlying the unexercised portion of this Warrant, pursuant to this
Section 4, the Company shall do the following:
(1) Supply to the underwriter, as the representative of the Holder
or Holders and the holders of Warrant Shares whose Warrant Shares
are being registered or qualified, 2 manually signed copies of each
registration statement or offering statement, and all amendments
thereto, and a reasonable number of copies of the preliminary,
final or other prospectus or offering circular, all prepared in
conformity with the requirements of the Act and the rules and
regulations promulgated thereunder, and such other documents as the
Underwriter shall reasonably request;
(2) cooperate with respect to:
(A) all necessary or advisable actions relating to the
preparation and the filing of any registration statements or
offering statements, and all amendments thereto, arising from
the provisions of this Section 4;
(B) all reasonable efforts to establish an exemption from the
provisions of the Act or any other federal or state securities
statutes;
6
<PAGE>
(C) all necessary or advisable actions to register or qualify
the public offering at issue pursuant to federal securities
statutes and the state "blue sky" securities statutes of each
jurisdiction the Holder and Holders of the Warrant or the
holders of Warrant Shares shall reasonably request;
(D) all other necessary or advisable actions that the Holder
or Holders of the Warrant or the holders of Warrant Shares
shall reasonably request; and,
(E) all other necessary or advisable actions that the Holder
or Holders of the Warrant or holders of the Warrant Shares
request to complete the contemplated disposition of their
securities in each reasonably requested jurisdiction;
(3) keep all registration statements or offering statements to
which this Section 4 applies, and all amendments thereto, effective
under the Act for a period of at least 3 months after their initial
effective date and cooperate with respect to all necessary or
advisable actions to permit completion of the public sale or other
disposition of the securities subject to a registration statement
or offering statement; and
(4) indemnify and hold harmless each Holder, each Warrant holder,
each holder of Warrant Shares, and each underwriter within the
meaning of the Act for each such Holder or holder of Warrant
Shares, from and against all losses, claims, damages, and
liabilities including, but not limited to, any and all expenses
reasonably incurred in investigating, preparing, defending or
settling any claim, arising from or relating to:
(A) any untrue or alleged untrue statement of a material fact
contained in any registration statement or offering statement
to which this Section 4 applies; or,
(B) any omission or alleged omission to state a material fact
necessary to make the statements contained in a registration
statement or offering statement to which this Section 4
applies not misleading;
provided, however, that the indemnification contained in this
provision (4) shall not apply if the untrue statement or omission,
or alleged untrue statement or omission, was the result of
information furnished in writing to the Company by the Holder or
underwriter seeking indemnification expressly for use in the
registration statement at issue. To the extent that the
indemnification contained in this provision applies, the Company
also shall indemnify and hold harmless each officer, director,
employee, controlling person or agent of an indemnified Holder,
holder of Warrant Shares or underwriter.
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(h) In each instance in which pursuant to this Section 4 the Company
shall take any action to register or qualify the Warrant, Warrant Shares
or the Common Stock underlying the unexercised portion of this Warrant,
prior to the effective date of any registration statement or offering
statement, the Company and each Holder or holder of Warrant Shares being
registered or qualified shall enter into reciprocal indemnification
agreements, in the form customarily used by reputable investment bankers
with respect to public offerings of securities, containing substantially
the same terms as described in subsection (f)(4) above. These
indemnification agreements also shall contain an agreement by the Holder
at issue to indemnify and hold harmless the Company, its officers and
directors from and against any and all losses, claims, damages and
liabilities, including, but not limited to, all expenses reasonably
incurred in investigating, preparing, defending or selling any claim,
directly resulting from any untrue statements of material facts, or
omissions to state a material fact necessary to make a statement not
misleading, contained in a registration statement or offering statement
to which this Section 4 applies, if, and only if, the untrue statement
or omission directly resulted from information provided in writing to
the Company by the indemnifying Holder expressly for use in the
registration statement or offering statement at issue.
(i) For purposes of subsection (f)(1) above, by the receipt of this
Warrant or any Warrant Shares all Holders and all holders of Warrant
Shares acknowledge and agree that the underwriter is and shall be their
representative.
(j) The Company's obligations described in this Section 4 shall
continue in full force and effect regardless of the exercise, surrender,
cancellation or expiration of this Warrant.
5. RESERVATION OF SHARES OF COMMON STOCK; ANTIDILUTION; INCLUSION. The
Company hereby agrees that at all times prior to November _____, 2003, it
will have authorized and will reserve and keep available for issuance and
delivery to the Holder that number of shares of its Common Stock that may be
required from time to time for issuance and delivery upon the exercise of the
then unexercised portion of this Warrant, and all other similar Warrnts then
outstanding and unexercised.
In the case of any stock split or reclassification of the common stock
of the Company or the Warrant Shares, the number of shares to which the
holder is entitled under this Warrant and the Warrant Shares shall also be
adjusted so that the remaining number of shares of Company common stock to
which the Hoder is entitled under the unexercised portion of this Warrant and
the remaining Warrant Shares outstanding immediately following such stock
split or reclassification shall bear the same relationship to the number of
shares of Company stock to which the Holder is entitled under the unexercised
portion of this Warrant and the Warrant Shares outstanding immediately prior
to such stock split or reclassification as the number of shares of common
stock outstanding immediately following such split or reclassification as the
number of shares of common stock outstanding immediately prior to such stock
split or reclassification.
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In the event the Company enters into any consolidation, merger, stock
split, combination or other transaction in which shares of common stock of
the Company are exchanged for or changed into other stock or securities, cash
and/or any other property (the "Exchange Property"), then in any such case
the rights of the Holder under the Warrant shall be to acquire the Exchange
Property in the plaace of Warrant Shares and each Warrant Share shall at the
same time be similarly exchanged or changed into an amount per share, equal
to the aggregate amount of stock, securities, cash and'or any other property
(payable in kind), as the case may be, into which or for which each share of
common stock is changed or exchanged; provided that any such Exchange
Property may be made subject to restrictions no more onerous to the Holder
thereof than the terms upon which the Warrant Shares may be acquired or
transferred.
6. TRANSFER TO COMPLY WITH THE SECURITIES ACT OF 1933.
(a) This Warrant, the Warrant Shares, and all other securities issued
or issuable upon exercise of this Warrant, may not be offered, sold or
transferred, in whole or in part, except in compliance with the Act, and
except in compliance with all applicable state securities statutes.
(b) The Company shall cause the following legend or its equivalent to
be set forth on each certificate representing the Warrant Shares, or any
other security issued or issuable upon exercise of this Warrant, not
theretofore distributed to the public or sold to underwriters, as
defined by the Act, for distribution to the public:
"The shares represented by this Certificate have not been
registered under the Securities Act of 1933 ("the Act") and are
"restricted securities" as that term is defined in Rule 144 under
the Act. The shares may not be offered for sale, sold, or
otherwise transferred except pursuant to an effective registration
statement under the Act or pursuant to an exemption from
registration under the Act, the availability of which must be
established to the satisfaction of the Company."
7. RIGHTS OF THE HOLDER. The Holder shall not be entitled to any
rights as a shareholder in the Company by reason of this Warrant, either at
law or equity, except as specifically provided for herein. The Company
covenants, however, that for so long as this Warrant is at least partially
unexercised, it will furnish any Holder of this Warrant with copies of any
and all material filed with the U.S. Securities and Exchange Commission, or
any other regulatory agency, as well as all reports and communications
furnished to the shareholders of the Company.
8. CHARGES DUE UPON EXERCISE. The Holder shall pay any and all issue
or transfer taxes, including but not limited to all federal or state taxes,
that may be payable with respect to the transfer of this Warrant or the issue
or delivery of Warrant Shares upon exercise of this Warrant.
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9. WARRANT SHARES TO BE FULLY PAID. The Company covenants that all
Warrant Shares that may be issued and delivered to a Holder of this Warrant
upon the exercise of this Warrant will, upon such delivery, be validly and
duly issued, fully paid and nonassessable.
10. NOTICES. All notices, certificates, requests or other similar
items provided for in this Warrant shall be in writing and shall be
personally delivered or deposited in the mail, first class postage prepaid,
addressed to the respective party as indicated in the portions of this
Warrant preceding Section 1. All notices shall be deemed to be delivered
upon personal delivery or upon the expiration of 3 business days following
deposit in the mail. The addresses of the parties may be changed, and
addresses of other Holders and holders of Warrant Shares may be specified, by
written notice delivered pursuant to this Section 10. The Company's
principal office shall be deemed to be the address provided pursuant to this
Section for the delivery of notices to the Company.
11. APPLICABLE LAW. This Warrant shall be governed by and construed in
accordance with the laws of the State of Colorado.
12. ARBITRATION. The Company and the Holder, and by receipt of the
Warrant or any Warrant Shares all subsequent Holders or holders of Warrant
Shares, agree to submit all controversies, claims, disputes and matters of
difference with respect to this Warrant, including, without limitation, the
application of this Section 12 to arbitration in Denver, Colorado, according
to the Rules of the American Arbitration Association from time to time in
force. The agreement to arbitrate shall be specifically enforceable.
Arbitration may proceed in the absence of any party if notice of the
proceeding has been given to that party. The parties agree to abide by all
awards rendered in any such proceeding. These awards shall be final and
binding on all parties to the extent and in the manner provided by the rules
of civil procedure enacted in Colorado. All awards may be filed, as a basis
of judgment and of the issuance of execution for its collection, with the
clerk of one or more courts, state or federal, having jurisdiction over
either the party against whom that award is rendered or its property. No
party shall be considered in default hereunder during the pendency of
arbitration proceedings relating to that default.
13. MISCELLANEOUS PROVISIONS.
(a) Subject to the terms and conditions contained herein, this Warrant
shall be binding on the Company and its successors and shall inure to
the benefit of the original Holder, its successors and assigns and all
holders of Warrant Shares.
(b) If the Company fails to perform any of its obligations hereunder,
it shall be liable to the Holder for all damages, costs and expenses
resulting from the failure, including but not limited to all reasonable
attorney's fees and disbursements. The Holder shall be entitled to seek
specific performance of the terms of this agreement, at the option of
the Holder.
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<PAGE>
(c) This Warrant cannot be changed or terminated or any performance or
condition waived in whole or in part except by an agreement in writing
signed by the party against whom enforcement of the change, termination
or waiver is sought.
(d) If any provision of this Warrant shall be held to be invalid,
illegal or unenforceable, such provision shall be severed, enforced to
the extent possible, or modified in such a way as to make it
enforceable, and the invalidity, illegality or unenforceability shall
not affect the remainder of this Warrant.
(e) The Company agrees to execute such further agreements, conveyances,
certificates and other documents as may be reasonably requested by the
Holder to effectuate the intent and provisions of this Warrant.
(f) Paragraph headings used in this Warrant are for convenience only
and shall not be taken or construed to define or limit any of the terms
or provisions of this Warrant. Unless otherwise provided, or unless the
context shall otherwise require, the use of the singular shall include
the plural and the use of any gender shall include all genders.
NEW FRONTIER MEDIA, INC.
By____________________________________
Mark H. Kreloff, President
ATTEST:
_______________________________________
Michael Weiner, Secretary
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SECURITY AGREEMENT
This Security Agreement, dated as of _____ 1997, is entered into between
Colorado Satellite Broadcasting, Inc., (Debtor), Fifth Dimension
Communications, Inc., and Merlin Sierra, Inc. (collectively, Secured Party)
WHEREAS, Debtor has agreed to grant to secured Party a security interest in
all of the Collateral (as hereinafter defined) as security for Debtor's
obligations owing to Secured Party arising under the Promissory Note dated
_____ between Debtor and Secured Party (the "Note") and other credit
documents executed by Debtor in connection therewith.
WHEREAS, Debtor has or will grant to its senior lender a first position
security interest in the Collateral up to the amount of $2,000,000 and
Secured Party acknowledges that the security interests granted herein is
subordinate to that security interest.
WHEREAS, Debtor may grant to a lender to be approved by Secured Party a
security interest in the Collateral up to the amount of US$725,510 and as to
the Promissory Note for US$185,711, given by Debtor to 1248663 Ontario, Inc.
only, Secured Party acknowledges that the security interests granted herein
will be subordinate to that security interest in the amount set forth in this
paragraph.
NOW, THEREFORE, in consideration of the mutual promises, covenants,
conditions, representations, and warranties hereinafter set forth, and for
other good and valuable consideration, the parties hereto agree as follows:
1. DEFINITIONS
As used in this Agreement, all initially capitalized terms used but not
defined herein shall have the meaning ascribed thereto in the Note, or if
said term is not in the Note, then said initially capitalized term shall have
the meaning ascribed thereto in the Purchase Agreements. In addition, the
following terms shall have the following meanings.
"AGREEMENT" shall mean this Security Agreement, any concurrent or subsequent
exhibits or schedules to this Security Agreement, and any extensions,
supplements, amendments, or modifications to or in connection with this
Security Agreement, or to any such schedules or exhibits.
"NOTE" shall have the meaning set forth in the recitals to this Agreement.
<PAGE>
"CODE" shall mean the Colorado Uniform Commercial Code, and any and all terms
used in this Agreement which are defined in the Code shall be construed and
defined in accordance with the meaning and definition ascribed to such terms
under the Code, unless otherwise defined herein.
"COLLATERAL" shall mean any and all of the furniture, equipment, fixtures and
inventory, of Debtor, in each case whether now existing or hereafter acquired
or created, and any proceeds or products of any of the foregoing, including
proceeds of insurance covering the Collateral or any portion thereof, or any
and all substitutions, replacements, additions, and accessions.
"DEBTOR" shall have the meaning set forth in the introduction to this
Agreement.
"FURNITURE", "EQUIPMENT", and "FIXTURES" shall mean any and all of Debtor's
presently existing and hereafter acquired machinery, equipment, tools,
motors, motor vehicles, rolling stock, jibs, and other goods (other than
Inventory, farm products, and consumer), of every kind and description,
wherever located, including without limitations those items listed in
schedules 1(a) and 1(b) of the "124 Agreement" which are incorporated herein
by reference, together with any and all parts, improvements, additions,
attachments, replacements, accessories, and substitutions thereto or
therefore, and all other rights of Debtor relating thereto, whether in the
possession and control of Debtor, or in the possession and control of a
third party for the account of Debtor.
"EVENT OFF DEFAULT" shall have the meaning set forth in the Note.
"INVENTORY" shall mean any and all of Debtor's presently existing and
hereafter acquired goods of every kind and description, held for sale or
lease or to be furnished under a contract of service or which have been so
leased or furnished, wherever located, including film, videos, magnetic tape,
optical disks, CD's and any and all media upon which images of any kind are
stored and recorded for later use or viewing, amplifiers, transmitters,
converters, cables, antennas, connections, towers, decoder boxes, converter
boxes, addressable boxes, microwave transmitters, and earth stations.
"OBLIGATIONS" shall mean any and all debts, liabilities, obligations, or
undertakings owing by Debtor to Secured Party arising under, advanced
pursuant to, or evidenced by the Note, or this Agreement, whether direct or
indirect, absolute or contingent, due or to become due, voluntary or
involuntary, whether now existing or hereafter arising, and including all
interest not paid when due and all secured Party's Expenses which Debtor is
required to pay or reimburse pursuant to this Agreement, the
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Note, any other credit documents between Secured Party and Debtor, or by law.
"PURCHASE AGREEMENTS" shall mean the Purchase Agreements between New Frontier
Media, Inc., and Colorado Satellite Broadcasting, Inc., on the one hand and
Fifth Dimension Communications, Inc., Merlin Sierra, Inc., and 1248663
Ontario Inc., on the other hand, executed on September 5, 1997, including all
exhibits and agreements referenced therein.
"SECURED PARTY" shall have the meaning set forth in the introduction to this
Agreement.
"SECURED PARTY'S EXPENSES" shall mean: any and all reasonable costs or
expenses required to be paid by Debtor under this Agreement which are paid or
advanced by Secured Party; all reasonable costs and expenses of Secured
Party, including their or its reasonable attorneys' fees and expenses,
incurred or expended to correct any default or enforce any provision of this
Agreement, or in gaining possession of, maintaining, handling, preserving,
storing, shipping, selling, preparing for sale, or advertising to sell the
Collateral, irrespective of whether a sale is consummated; and all reasonable
costs and expenses of suit incurred or expended by Secured Party, including
its reasonable attorneys' fees and expenses in enforcing or defending this
Agreement, irrespective of whether suit is brought.
"SENIOR LENDER" shall mean Debtor's chief financial institutions as chosen by
debtor and an unsecured creditor approved by Maker.
2. CONSTRUCTION
Unless the context of this Agreement clearly requires otherwise, references
to the plural include the singular, references to the singular include the
plural, the part includes the whole, "including" is not limiting, and "or"
has the inclusive meaning represented by the phrase "and/or." References in
this Agreement to "determination" by Secured Party include reasonable
estimates (absent manifest error) by Secured Party, as applicable (in the
case of quantitative determinations) and reasonable beliefs (absent manifest
error) by Secured Party, as applicable (in the case of qualitative
determinations). The words "hereof, "herein", "hereby," "hereunder," and
similar terms in this Agreement refer to this Agreement as a whole and not to
any particular provision of this Agreement. Article, section, subsection,
exhibit, and schedule references are to this Agreement unless otherwise
specified.
3. CREATION OF SECURITY INTEREST
3.1 Subject to the provisions of 3.2 hereof, Debtor hereby grants to Secured
Party a continuing security interest in all presently
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<PAGE>
existing and hereafter acquired or arising Collateral in order to secure the
prompt payment and performance of all of the Obligations. Such security
interest in the Collateral shall attach to all Collateral without further act
on the part of Secured Party or Debtor.
3.2 Debtor has granted or will grant to (its senior lender] a first position
security interest in the Collateral up to the maximum amount of $2,000,000
and Secured Party acknowledges that the security interest granted herein is
or will be subordinate in priority to that security interest, but only to a
maximum of $2,000,000. Additionally, Debtor has granted or will grant upon
the approval of Secured Party, which approval will not be unreasonably
withheld, a second position security interest in the Collateral up to the
maximum amount of $725,510.00 and Secured Party acknowledges that the
security interest herein is or will be subordinate in priority to that
security interest.
4. FURTHER ASSURANCES
4.1 Debtor shall execute and deliver to Secured Party, concurrently with
Debtor's execution of this Agreement, and from time to time at the request of
Secured Party, all financing statements, continuation financing statements,
fixture filings, security agreements, collateral assignments, chattel
mortgages, assignments, and all other documents that Secured Party may
reasonably request, in form reasonably satisfactory to secured Party, to
perfect and maintain perfected Secured Party's security interests in the
Collateral and in order to consummate fully all of the transactions
contemplated by this Agreement and the Note. Debtor hereby irrevocably makes,
constitutes, and appoints Secured Party (and Secured Party's officers,
employees, or agents) as Debtor's true and lawful attorney with power to sign
the name of Debtor on any of the above-described documents or on any other
similar documents which need to be executed, recorded, or filed, and to do
any and all things necessary in the name and on behalf of Debtor in order to
perfect, or continue the perfection of, Secured Party's security interests in
the Collateral. Debtor agrees that neither Secured Party, nor any of its
designees or attorneys-in-fact, will be liable for any act of commission or
omission, or for any error of judgment or mistake of fact or law with respect
to the exercise of the power of attorney granted under this Section 4.1, other
than as a result of its or their gross negligence or willful misconduct. The
power of attorney granted under this Section 4.1 is coupled with an interest
and shall be irrevocable until all of the obligations have been paid in full,
the Note terminated, and Debtor's duties hereunder have been discharged in
full.
4.2 Without limiting the generality of the foregoing Section 4.1 or any of the
provisions of the Note, Debtor will: (a) at the request of the Secured Party,
appear in and defend any action or
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<PAGE>
proceeding which may affect Debtor's title to, or the security interest of
Secured Party in, any of the Collateral; and (b) upon demand of Secured
Party, allow inspection of Collateral by Secured Party or persons designated
by Secured Party at any time during normal business hours and, provided that
no Event of Default has occurred and is continuing, upon three (3) Business
Days' notice to Debtor.
4.3 After the occurrence and during the continuance of an Event of Default,
Debtor agrees to take all actions and do all things reasonably requested of
Debtor to carry out the intent of this Agreement.
5. RIGHTS AND REMEDIES
5.1 Upon the occurrence and during the continuance of an Event of Default,
Secured Party, without notice or demand, may do any one or more of the
following, all of which are authorized by Debtor:
(a) Make such payments and do such acts as it considers necessary or
reasonable to protect Secured Party's security interest in the Collateral.
Debtor agrees to assemble and make available any or all of the Collateral if
Secured Party so requires. Debtor authorizes Secured Party to enter the
premises where the Collateral is located, take and maintain possession of the
Collateral, or any part of it, and to pay, purchase, contest, or compromise
any encumbrance, charge, or lien which, in the opinion of the Secured Party,
appears to be prior or superior to Secured Party's security interest, and to
pay all costs and expenses incurred in connection therewith;
(b) Ship, reclaim, recover, store, finish, maintain, repair, prepare for
sale, advertise for sale, or sell (in the manner provided for herein), the
Collateral;
(c) Sell the Collateral, at either a public or private sale, or both, by way
of one or more contracts or transactions, for cash or on terms, in such
manner and at such places (including Debtor's premises) as is commercially
reasonable; and apply any proceeds of any sale or other disposition of the
Collateral in the order provided in C.R.S. Section 4-9-504, including the
payment of Secured Party's Expenses. It is not necessary that the Collateral
be present at any such sale;
(d) Without constituting a retention of collateral in satisfaction of
indebtedness as provided for in C.R.S. Section 4-9-505, notify account
debtors and other obligors of Debtor of Secured Party's security interests in
the Collateral, and proceed to collect the same and apply the net cash
proceeds therefrom to the Obligations;
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<PAGE>
(e) Secured Party shall give notice of any disposition of the Collateral as
follows:
(1) Secured Party shall give Debtor and each holder of a security interest in
the Collateral who has filed with Secured Party a written request for notice,
a written notice stating the time and place of a public sale, or, if the
disposition is to be either a private sale or some other disposition that is
not a public sale, the time on or after which the private sale or other
disposition is to be made;
(2) The notice described in the immediately preceding paragraph shall be
delivered to Debtor as provided in Section 9.1 of the Note at least ten (10)
calendar days before the date fixed for a public sale, or at least five (5)
calendar days before the date on or after which the private sale or other
disposition is to be made, unless the collateral is perishable or threatens
to decline speedily in value. Notice to persons other than Debtor claiming an
interest in the collateral shall be sent to such addresses as such persons
have furnished to Secured Party prior to the date of such notice;
(3) If the disposition is to be a public sale, Secured Party shall also give
notice of the time and place of said sale by publishing a notice at least
five (5) calendar days before the date of the sale in a newspaper of general
circulation, if one exists, in the county in which the sale is to be held;
(g) Secured Party may, in its own name, or in the name of a designee or
nominee, credit bid and purchase at any public sale;
(h) Debtor shall pay Secured Party's reasonable Expenses; and
(i) Any portion of the obligations which remains unpaid after disposition of
the Collateral as provided above shall be paid immediately by Debtor provided
that Secured Party has complied in all material respects with Section
[9-504?] of the Code, as in effect at the time of such disposition. Any
excess which exists after disposition of the Collateral shall be returned
promptly, without interest and subject to the rights of third parties, to
Debtor by Secured Party.
(j) Apply to any court of competent jurisdiction for the appointment of a
receiver for the benefit of the creditors of Debtor. In said receivership
application, Debtor agrees that Secured Party shall only need to prove to the
Court that an Event of Default shall have occurred and be continuing, and
that no bond for more than $10,000 shall be required.
5.2 (a) Subject to the provisions of Section 5.2(e) below, if an Event of
Default shall have occurred and be continuing, Debtor waives, releases and
stipulates it shall not raise any defense,
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<PAGE>
claim or objection it otherwise might be able to raise or advance in general
to the appointment of a receiver to protect the interests of creditors,
provided that Debtor may make bona fide objections to the appointment of any
particular receiver.
(b) The receiver shall in addition have the power to dispose of the
Collateral in any manner lawful in the jurisdiction in which his appointment
is confirmed, including the power to conduct a public or private sale of the
Collateral. Secured Party may bid at any such public or private sale.
(c) Notwithstanding anything herein contained to the contrary, Debtor's
execution and delivery of this Agreement and any related agreements (i) do
not have the purpose of and will not constitute, create, or have the effect
of constItuting or creating, directly or indirectly, actual or practical
ownership or control, affirmative or negative, direct or indirect, of Debtor
by Secured Party, or control, affirmative or negative, direct or indirect, by
Secured Party over the programming, management, or any other aspect of the
operation of Debtor or any of its properties, which ownership and control
will remain exclusively and at all times in Debtor: and (ii) do not and will
not constitute the transfer, assignment, or disposition in any manner,
voluntarily or involuntarily, directly or indirectly, of any Governmental
Authorizations at any time issued to Debtor or the transfer of control of
Debtor.
5.3 The rights and remedies of Secured Party under this Agreement, the Note,
the Purchase Agreements, and all other agreements contemplated hereby and
thereby shall be cumulative. Secured Party shall have all other rights and
remedies not inconsistent herewith as provided under the Code, by law, or in
equity. No exercise by Secured Party of any one right or remedy shall be
deemed an election of remedies, and no waiver by Secured Party of any default
on Debtor's part shall be deemed a continuing waiver of any further defaults.
No delay by secured Party shall constitute a waiver, election or acquiescence
with respect to any right or remedy.
6. REPRESENTATIONS AND WARRANTIES. Debtor hereby represents and warrants to
the Secured Party that:
a. The Debtor is a corporation duly organized and validly existing
under the laws of the State of Colorado; the execution and performance of
this Agreement have been duly authorized by all appropriate action with
respect to the Debtor; the execution and performance of this Agreement will
not violate or contravene any provisions of law or regulation or of the
Debtor's articles of incorporation, by-laws, or other agreements to which it
is a party or by which it is bound; and no consent or approval of directors
or shareholders or any governmental agency or authority is required in
connection with the Debtor's execu-
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<PAGE>
tion, delivery or performance of this Agreement which has not been obtained.
b. The Debtor's principal office is at 1050 Walnut Street, Suite 301,
Boulder, CO 80302, and the Debtor maintains its books of account and records
only at such address.
c. All of the Equipment and Inventory is kept and located only at
Ottawa, Canada, and is in the possession of the secured party, affiliate or
subsidiary thereof.
d. The Debtor is the owner of the Collateral free and clear of all
encumbrances and security interests other than the Secured Party's security
interest.
e. Excepting only those assets subject to the Call Center Agreement and
Uplink Center Agreement (as those terms are defined in the Purchase
Agreements) during the term of those agreements, none of the Collateral is in
the possession of any third party or subject to any document of title.
7. WAIVERS
So long as Secured Party complies with the obligations, if any, imposed by
CRS Section 4-9-207 of the code, Secured Party shall not otherwise be liable
or responsible in any way or manner for: (a) the safekeeping of the Equipment
or Inventory, or any of Debtor's Books relating to any of the Collateral;
(b) any loss or damage thereto occurring or arising in any manner or fashion
or from any cause; (c) any diminution in the value thereof; or (d) any act or
default of any carrier, warehouseman, bailee, forwarding agency, or other
person whomsoever.
All notices, requests, demands or other communications provided for in this
Agreement shall be in writing and shall be delivered by hand, sent prepaid by
Federal Express (or a comparable overnight delivery service) or sent by the
United States mail, certified, postage prepaid, return receipt requested, as
follows:
If to the Secured Party:
With copies to:
If to the Debtor:
Colorado Satellite Broadcasting, Inc.
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<PAGE>
1050 Walnut Street, Suite 301
Boulder, CO 80302
Attn.: Mark Kreloff
With copies to:
The Law Office of Mark L. Driver, P.C.
3300 East First Ave.,
Suite 600
Denver, CO 80206
Any notice, request, demand or other communication delivered or sent in the
foregoing manner shall be deemed given or made (as the case may be) upon the
earliest of (a) the date it is actually received, (b) on the business day
after the day on which it is delivered by hand, (c) on the business day after
the day on which it is properly delivered to Federal Express (or a comparable
overnight delivery service, or (d) on the third business day after the day on
which it is deposited in the United States mail. The Debtor or the Secured
Party may change its address by notifying the other party of the new address
in any manner permitted by this paragraph 8.
9. GOVERNING LAW: JURISDICTION AND VENUE
9.1 GOVERNING LAW. THIS AGREEMENT SHALL BE DEEMED TO HAVE BEEN MADE IN THE
STATE OF COLORADO AND THE VALIDITY, CONSTRUCTION, INTERPRETATION, AND
ENFORCEMENT HEREOF, AND THE RIGHT OF THE PARTIES HEREOF SHALL BE DETERMINED
UNDER, GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE
STATE OF COLORADO, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW.
9.2 JURISDICTION AND VENUE. THE PARTIES HERETO AGREE THAT ANY PROCEEDING
PURSUANT TO SECTION 9 ARISING IN CONNECTION WITH THIS AGREEMENT SHALL BE HELD
ONLY IN THE STATE OF COLORADO OR AT THE SOLE OPTION OF SECURED PARTY, IN ANY
OTHER FORUM IN WHICH SECURED PARTY INITIATES PROCEEDINGS AND WHICH HAS
JURISDICTION OVER THE SUBJECT MATTER AND PARTIES IN CONTROVERSY. THE PARTIES
HERETO HEREBY WAIVE ANY RIGHT EACH MAY HAVE TO ASSERT THE DOCTRINE OF FORUM
NON CONVENIENCE OR TO OBJECT TO VENUE TO THE EXTENT ANY PROCEEDING IS BROUGHT
IN ACCORDANCE WITH THIS SECTION 9.2 AND STIPULATE THAT ANY FORUM LOCATED IN
COLORADO, SHALL HAVE IN PERSONAM JURISDICTION AND VENUE OVER EACH SUCH PARTY
FOR THE PURPOSE OF ARBITRATING ANY SUCH DISPUTE, CONTROVERSY, OR PROCEEDING
ARISING OUT OF OR RELATED TO THIS AGREEMENT. SERVICE OF PROCESS SUFFICIENT
FOR PERSONAL JURISDICTION IN ANY ACTION AGAINST DEBTOR MAY BE MADE BY
REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO ITS ADDRESS
SPECIFIED FOR NOTICES PURSUANT TO SECTION 8.
9
<PAGE>
10. GENERAL PROVISIONS
10.1 This Agreement shall be binding and deemed effective when executed and
delivered by Debtor and accepted and executed by Secured Party.
10.2 This Agreement shall bind and inure to the benefit of the respective
successors and assigns of Debtor and Secured Party; PROVIDED, HOWEVER, that
Debtor may not assign this Agreement or any rights hereunder without Secured
Party's prior written consent and any prohibited assignment shall be
absolutely void. No consent by Secured Party to an assignment by Debtor shall
release Debtor from its Obligations. Secured Party reserves its right to
sell, assign, transfer, negotiate, or grant participation in all or any part
of, or any interest in, the rights and benefits hereunder pursuant to and in
accordance with the provisions of the Note. In connection therewith, Secured
Party may disclose all documents and information which Secured Party now or
hereafter may have relating to Debtor, Debtor's business, or the Collateral
to any such prospective or actual Transferee PROVIDED that such Transferee
has first agreed to be bound by the provisions of Section 10.3 hereof.
10.3 Secured Party agrees to keep confidential any information relating to
Debtor delivered by Debtor hereunder; PROVIDED that nothing herein shall
prevent Secured Party from disclosing such information: (a) to any affiliate
of Secured Party or any prospective or actual transferee that agrees to be
bound by this section 10.3, (b) upon order, subpoena, or other process of any
court or administrative agency, (c) upon the request or demand of any
regulatory agency or authority having jurisdiction over Secured Party, (d)
which has been publicly disclosed (other than by Secured Party unless such
disclosure was otherwise permitted hereunder), (e) which has been obtained
from any Person that is not a party hereto or an affiliate of any such party,
(f) in connection with the exercise of any remedy, or the resolution of any
dispute, hereunder or under any of the Purchase Agreements, this Agreement
or the Note, (g) to the legal counsel or certified public accountants for
Secured Party, or (h) as otherwise expressly required by the Note, this
Agreement or the Purchase Agreements.
10.4 Section headings and numbers have been set forth herein for
convenience only. Unless the contrary is compelled by the context, everything
contained in each Section hereof applies equally to this entire Agreement.
10.5 Neither this Agreement nor any uncertainty or ambiguity herein shall
be construed or resolved against Secured Party or Debtor, whether under any
rule of construction or otherwise. On the contrary, this Agreement has been
reviewed by each of the parties and their counsel and shall be construed and
interpreted
10
<PAGE>
according to the ordinary meaning of the words used so as to accomplish
fairly the purposes and intentions of all parties hereto.
10.6 Each provision of this Agreement shall be severable from every other
provision of this Agreement for the purpose of determining the legal
enforceability of any specific provision.
10.7 This Agreement cannot be changed, modified, amended, or terminated,
except by a written document executed by both Debtor and Secured Party. All
prior agreements, understandings, representations, warranties, and
negotiations, if any, are merged into this Agreement, the Note, the Purchase
Agreements and the other documents and agreements entered into in connection
herewith and therewith.
10.8 The parties intend and agree that their respective rights, duties,
powers, liabilities, obligations, and discretion shall be performed, carried
out, discharged, and exercised reasonably and in good faith.
10.9 After termination of the Note and when Secured Party has received
payment and performance in full of all Obligations, Secured Party shall
execute and deliver to Debtor a termination of all of the security interests
granted by Debtor hereunder.
10.10 This Agreement may be executed in any number of counterparts and by
different parties on separate counterparts, each of which counterparts, when
so executed and delivered, shall be deemed to be an original. All of such
counterparts, taken together, shall constitute but one and the same
Agreement. This Agreement shall become effective upon the execution of a
counterpart of this Agreement by each of the parties hereto.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date
first set forth above.
Debtor
By
Title:
Secured Party
By
Title:
11
<PAGE>
SCHEDULE 2.1(e)
WARRANT PURCHASE AGREEMENT
[attached]
<PAGE>
SCHEDULE 2.1(f)
VALUATION OF THE ADULT BUSINESS COMPANIES
AS OF MARCH 31, 1997
[attached]
<PAGE>
VALUATION OF THE ADULT COMPANIES
AS OF MARCH 31, 1997
INTRODUCTION
This document has been prepared as a guide to establishing a fair valuation for
the sale of the "Adult Movie Business". The entity being valued consists of the
combined operations being carried on in the three corporations in the following
jurisdictions:
CORPORATION LOCATION INCORPORATION
Fifth Dimension Communications Bridgetown Laws of Barbados
(Barbados) Inc Barbados
1043133 Ontario Inc. Ottawa Laws of Ontario
Canada
Merlin Sierra Inc. Valley Center Laws of California
California
It is assumed that a sale would consist of either the shares of the companies or
of all their net assets plus certain broadcasting assets owned by Fifth
Dimension Communications (1996) Corporation and 841161 Ontario Ltd.
The approach used is to capitalize the future maintainable pre-tax earnings at
an appropriate multiple. Future maintainable pre-tax earnings have been computed
by reference to the concept of normalized monthly net income. This approach has
been taken, rather than extrapolating past results, because a number of specific
events have occurred and conditions existed during the last two years which are
not expected to recur or exist in the future. As a result, reported earnings
have been erratic.
It is assumed that the business will be delivered to a buyer in the existing
form which is considered to be the best configuration for a global enterprise.
Specifically a head office in a strategically located base in Barbados, a call
center and a broadcasting facility based in Ontario, Canada and a marketing and
purchasing base in California. This arrangement is considered to be the optimum
for a business delivering satellite movie services into the USA, Central and
South America and the Pacific Rim. Should a buyer wish to change this
configuration, it would be at its expense and the future maintainable pre-tax
earnings projection would not necessarily result in the amounts generated under
these assumptions.
It is also submitted that the success of the business, past and future, is
strongly related to its access to an expert satellite engineering and technical
expertise and its connection to the satellite space segment brokerage operation.
It is essential to the maintenance of projected results that a
1
<PAGE>
contract for the supply of satellite engineering and technical services and
satellite access services be part of the package. In addition, satellite
access authorization and access services at competitive rates are essential.
It is assumed that a contract for exclusive supply would be executed for these
services with FirstLink Communications Inc. or the service be acquired.
Proper presentation of the movie service to subscribers is competitively
necessary and it is assumed that the film production company currently providing
services would be retained on existing terms.
PROJECTION ANALYSIS
ACTIVITY LEVELS
The assumption is that the business would operate three channels and existing
pay-per-view facilities. While important and significant initiatives are being
pursued with cable operators in several countries and direct to home services,
revenues from these areas have not been predicted beyond existing levels.
Similarly, while sundry sales of merchandise and telephone services present a
huge opportunity, projections are made at existing levels since a buyer would be
developing these businesses and would not be expected to pay for its own
achievements.
The subscriber levels are predicted to stay at the normalized levels based on
recent sold levels.
NORMALIZATION OF THE OPERATION
Certain steps and contractual arrangement have been put into place to remedy
certain areas of the business which would all be in place by July 1, 1997.
The first action relates to satellite service. As a result of satellite failures
on January 11, 1997, the business currently utilizes temporary facilities which
do not provide ideal reception and footprint. The business delivered would have
in place satellite transponder contracts for four transponders suitable for
three channels and an advertising or barker channel with the most desirable
coverage for the area of operation.
The second action relates to operating costs. Many expenses in the past, of
which the most significant are salaries and the promotional expenses for the
Corel Centre, are established at levels determined by the personal preferences
and remuneration levels of shareholder managers. In addition, significant
professional fees and travel expenses incurred and included in the historic
costs are non-recurring. In projecting the future costs these salary and non-
recurring costs have been excluded.
PROJECTION BASES
REVENUES
2
<PAGE>
Direct Subscriptions
These have been projected from the existing subscriber base enhanced as of July
1, 1997 as a result of normalized transponder coverage and institution of a
barker channel. The projected sustainable monthly revenue level has been
included as the average for the projected amount for the six months ending
December 31, 1997, which is $726,776.
Pay-per-view
These services have maintained a reasonably constant level regardless of
fluctuations in the back yard dish market or physical transmission problems.
During the twelve months ended February 28, 1997 the annual revenue has been
$1.7 million. For the projection, the monthly average of $141,667 has been used.
An adjustment, after computing the capitalized value, is required because income
is reported by the provider with a one month delay and, in addition, current
reports pick up services provided in the prior three months.
Revenues from distributors
The business sells subscriptions through approximately twelve distributors. The
volume of business is also fairly constant compared with direct subscriptions
since the service is sold in combination with a full program package. In fact, a
steady increase in distributor revenue has been experienced through the most
recent six months and therefore the projection is for the average for the last
six months plus five percent, or $454,178 per month. An adjustment after
computing the capitalized value is required because income is reported with a
one month delay.
Other Revenues
This category includes all other sales including merchandise, telephone
services, cable fee income and DTH. An estimate of $25,000 has been used.
COSTS
Movies
The level of movie purchases is related to the policy of the business and the
number of channels. Decisions as to the level of quality, frequency of replays
and commitment to new titles each month can influence the monthly cost. For this
projection, a monthly cost of $65,000 has been used. This is less than recent
historic levels which have been inflated by larger purchases made to build the
movie library and take advantage of special prices.
Transponders
3
<PAGE>
The two of the three transponders in use from January 15 to June 30, 1997 are
considered temporary accommodation to bridge the period from the failure of the
AT&T 401 transponder on January 11, 1997 to the in service date of the
replacement 405 transponders on July 1, 1997. For the projection, it is assumed
that the transponders used will be two 405s, the existing 402R and one
additional one which may be a 402R. These four will provide full market area
coverage for three channels and an advertising channel with a total monthly cost
of $500,000.
Broadcasting Costs
The assumption is that the costs are those of the existing facility and the
individual elements are the averages for the most recent twelve months modified
where appropriate for present conditions.
The facility is the broadcast center at Don Reid Drive in Ottawa. Costs include
the rental that the business pays for the use of the assets owned by Fifth
Dimension Communications (1996) Corporation and 841161 Ontario Limited. The
equipment in Fifth Dimension Communications (1996) Corporation includes uplinks,
editing, playout and broadcasting equipment. In addition, 1043133 Ontario Inc
pays rents to 841161 Ontario Limited for use of space in 2500 Don Reid Drive and
other uplink equipment. The repairs and maintenance item reflects the
requirement to keep the facility in top condition for reliable twenty four hour
operation and the age of the facility. A lease would be required for realty.
Technicians and engineering personnel are provided by Fifth Dimension
Communications (1996) Corporation at gross salary cost plus 25% to cover
benefits and provide a small profit. These persons to varying degrees work full
or part time on the adult business operation and this is reflected in the
determination of the monthly charge invoiced.
Tier bits costs are invoiced annually by General Instruments and the cost used
is one twelfth of the amounts invoiced for 1997.
Activation services are provided by FirstLink Communications Inc. using
proprietary software. This service replaced the outside provider at the same
cost but in Canadian dollars as that previously provided in US dollars. This
services facilitates the subscriber's access to the satellite service through
General Instrument's access center in San Diego. The cost is the average last
twelve months but in practice is charged on a per service basis so it is a
revenue related cost.
All other broadcasting costs include dubbing and video tape conversions as well
as scrambling and a number of sundry items.
Subscriber call center
The total cost of the call centre includes the operation of the center and the
sales and promotional activities that have mainly been based in that facility.
The details of these costs are presented in the attached schedule. Mostly these
are the historical costs or contractual amounts.
4
<PAGE>
Telephone facility costs will be greater than shown because a contract for a new
system is being negotiated) Premises are rented and a lease would be required
for the facility.
Salaries are based on actual staffing levels and remuneration rates but exclude
the salaries paid to the shareholders and managers whose remuneration reflect
considerations other than market rates. An amount is added for a reasonable cost
for a call center manager. Benefits are included at the present level to include
all statutory payroll taxes and the health and security policy.
5
<PAGE>
CAPITALIZATION RATE
The rate of return expected by a buyer will depend upon his particular
circumstances. However, based on a seller's expectation arising from the
decision to sell or hold it is proposed that a pre-tax return of 30% per year is
appropriate resulting in the capitalization of projected sustainable annual
earnings at a rate of three and one-third times. Below this rate the seller
would not wish to sell.
The determination of the rate of return is premised on the following:
The business has been operating successfully since October 1993 or three
and one half years and can be considered well established having recorded
at various times high profit returns and demonstrated an ability to recover
and beat its competition.
As an early entrant to the business it has established itself as the
dominant competitor in the market. The company has clearly a loyal
following of subscribers even though they are sensitive to price
competition.
The business is secure in its suppliers of movie materials, broadcasting
facilities and satellite segment and has the potential to expand
significantly into Central and South America and the Pacific Rim in which
the market will be up to four times that in the USA with little incremental
cost. The supplementary revenue sources have not been fully exploited and
could match or exceed the existing revenue streams.
The legal and territorial arrangement of the business has protected it from
certain politically antagonistic influences.
The business has an competitive advantage arising from its technical and
engineering staff and ready access to satellite facilities through its
brokerage affiliate.
6
<PAGE>
COMPUTATION OF THE VALUE OF THE ADULT BUSINESS The value is
computed by applying a capitalization rate of three point five to
the estimated maintainable future annual earnings of the business.
The following computes the future maintainable annual earnings for
the adult business based on the regularized monthly earnings
projected for July 1997 and thereafter.
COSTS
MOVIES
Predicted cost 65,000
TRANSPONDERS
There will be four transponders as of July, 1997.
Two will cost $120k and two will cost $130k 500,000
Three will be used for movie channels and one for
an advertising channel
SUBSCRIBER CALL CENTER
It is assumed that the costs are those of the
existing center an are analysed in detail
Salaries excluding shareholders and present manager 88,453
Manager salary 6,000
Benefits at 12% 11,334
-------
105,787
Bank and credit card costs
Prior years average 12,000
Computer costs 5,000
Prior years average
Office expenses
prior years average 16,000
Depreciation of furniture and equipment 10,000
Computed
Accounting and admin costs 21,000
Prior years average
Office rent lease 8,000
Telephone 20,000
Prior years average
Utilities 2,000
Prior years average
Sundry operating costs 5,000
Prior years average
-------
204,787
-------
SALES AND PROMOTIONAL COSTS
Advertising 25,000
Video and Audio Production Services 22,000
Bad debts and charge backs 5,000
Commission 5,000
Salary and office cost cable sales 5,000
Travel costs of shows etc 15,000
-------
77,000
-------
7
<PAGE>
BROADCASTING COSTS
It is assumed that the costs are those of the
existing facilities
Facility rental 25,000
Repairs and maintenance 15,000
Technicians, engineering support and playout labour 37,000
Tier bits 15,750
Activation services 25,000
Dubbing and tap conversion, scrambling and sundry 20,000
-------
137,750
PURCHASING AND MARKETING OFFICE COSTS 20,000
HEAD OFFICE COSTS 15,000
AUDITING AND COMPLIANCE 5,000
----------
TOTAL COSTS 1,024,537
----------
REVENUES
Direct subscriptions 726,776
Pay per view 141,667
Distributors 454,178
Other 25,000
----------
TOTAL REVENUES 1,347,621
----------
NET MONTHLY INCOME 323,083
ANNUAL 3,876,998
VALUE AT 3.33 X 12,910,402
ADD VALUE OF RECEIVABLES FROM DISTRIBUTORS
AND PPV RECORDED ONE MONTH IN ARREARS 595,845
---------
VALUATION 13,506,247
----------
----------
8
<PAGE>
<TABLE>
<S> <C> <C> <C>
The total price would be 13,500,000
THE FOLLOWING IS A BREAKDOWN OF THE PURCHASE PRICE
Item Company Amount
- ---- ------- ------
The business of the Adult Channel Fifth Dimension Communications 12,455,000
including the trading names, (Barbados) Inc.
subscriber list and all contracts
The Call Centre facility operation 1043133 Ontario Inc.
including all the fixed assets
Broadcasting assets Fifth Dimension Communications Net book value
(1996) Corporation 550,000
Broadcasting assets 841161 Ontario Limited Net book value 225,000
Computers, telephonic equipment 1043133 Ontario Inc Net book value 250,000
Sundry assets Merlin Sierra Nominal 20,000
----------
13,500,000
----------
----------
THE CONSIDERATION WOULD BE
Fifth Dimension Communications Cash 550,000
(1996) Corporation
841161 Ontario Limited Cash 225,000
1043133 Ontario Inc Cash 250,000
Merlin Sierra Cash 20,000
Fifth Dimension Communications
(Barbados) Inc. Cash 4,955,000
----------
Total Cash 6,000,000
Fifth Dimension Communications Holdings, Inc
(A US COMPANY INCORPORATED IN DELAWARE) 5% Note Payable 1,000,000
over 10 years
Common shares 6,500,000
representing 10%
of buyer's equity
and not dilutable
----------
13,500,000
----------
----------
</TABLE>
9
<PAGE>
XTC
PROJECTED REVENUE
FOR THE 12 MONTH PERIOD ENDING FEBRUARY, 1998
<TABLE>
MARCH, 97 APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER
--------- ----- --- ---- ---- ------ --------- ------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Unearned revenue
recognized
1 Year 246,041 224,391 206,794 192,771 176,888 158,459 138,898 117,048 93,005 69,241
6 Months 53,522 43,255 33,111 23,706 13,761 4,170
3 Months 86,333 52,176 17,054
-----------------------------------------------------------------------------------------------------
385,895 319,822 256,959 216,477 190,648 162,629 138,898 117,048 93,005 69,241
-----------------------------------------------------------------------------------------------------
Projected revenue
1 Year 26,479 52,104 77,292 101,667 133,959 166,897 199,397 233,626 267,376 300,314
6 Months 10,592 20,842 30,917 40,667 53,584 66,757 69,167 72,609 76,034 79,457
3 Months 38,130 75,030 111,300 108,270 117,870 129,030 140,730 143,520 144,690 145,320
1 Month 139,810 135,300 132,990 128,700 170,500 173,910 171,600 180,730 178,200 173,910
-----------------------------------------------------------------------------------------------------
215,011 283,276 352,499 379,304 475,913 636,594 680,894 630,485 666,300 699,001
-----------------------------------------------------------------------------------------------------
TOTAL REVENUE 600,906 603,098 609,458 595,781 666,561 699,223 719,792 747,533 759,305 768,242
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
AVERAGE REVENUE
JULY TO DECEMBER 726,776
-------
-------
</TABLE>
JANUARY, 98 FEBRUARY TOTAL
Unearned revenue
recognized
1 Year 41,416 12,577 1,677,530
6 Months 171,524
3 Months 155,563
-------------------------------------
41,416 12,577 2,004,616
-------------------------------------
Projected revenue
1 Year 334,544 366,627 2,260,282
6 Months 80,234 79,892 680,752
3 Months 145,320 142,920 1,442,130
1 Month 180,730 169,400 1,935,780
-------------------------------------
740,828 758,839 6,318,944
-------------------------------------
TOTAL REVENUE 782,244 771,416 8,323,560
-------------------------------------
-------------------------------------
<PAGE>
XTC
PROJECTED REVENUE
FOR THE 12 MONTH PERIOD ENDING FEBRUARY, 1998
<TABLE>
MARCH, 97 APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER
--------- ------ --- ---- ---- ------ --------- ------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Average total cash per day 20,500 20,500 19,500 19,500 25,000 25,500 26,000 26,500 27,000 25,500
number of days in month 31 30 31 30 31 31 30 31 30 31
-------------------------------------------------------------------------------------------------
Total cash per month 635,500 615,000 604,500 585,000 775,000 790,500 780,000 821,500 810,000 790,500
-------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------
Average percentage breakdown
1 Year 50% 50% 50% 50% 50% 50% 50% 50% 50% 50%
6 Months 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%
3 Months 18% 18% 18% 18% 18% 18% 18% 18% 18% 18%
1 Month 22% 22% 22% 22% 22% 22% 22% 22% 22% 22%
Cash Allocation
1 Year 317,750 307,250 302,250 292,550 387,500 395,250 390,000 410,750 405,000 395,250
6 Months 83,550 81,600 80,450 58,500 77,500 79,050 78,000 82,150 81,000 79,050
3 Months 114,390 110,700 108,810 105,300 139,500 142,290 140,400 147,870 145,800 142,290
1 Month 139,810 135,300 132,990 128,700 170,500 173,910 171,600 180,730 178,200 173,910
JANUARY, 98 FEBRUARY TOTAL
----------- -------- -----
Average total cash per day 26,500 27,500
number of days in month 31 28
---------------------
Total cash per month 821,500 770,000
---------------------
---------------------
Average percentage breakdown
1 Year 50% 50%
6 Months 10% 10%
3 Months 18% 18%
1 Month 22% 22%
Cash Allocation
1 Year 410,750 385,000 4,399,500
6 Months 82,150 77,000 879,500
3 Months 147,870 138,600 1,583,820
1 Month 180,730 169,400 1,935,780
</TABLE>
Assumption:
- -----------
- - In July, the move to T5 will increase revenues since there is more
satellite coverage.
- - Percentage breakdown based upon average of Nov, Dec/96 and Jan/97.
<PAGE>
UNEARNED REVENUE ALLOCATION
<TABLE>
TOTAL MARCH, 97 APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER
----- --------- ----- --- ---- ---- ------ --------- ------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ONE YEAR
- --------
MARCH, 97 317,750 26,479 26,479 26,479 26,479 26,479 28,479 26,479 26,479 26,479 26,479
APRIL 307,500 25,625 25,625 25,625 25,625 26,625 25,625 25,825 25,625 25,625
MAY 302,250 25,188 25,188 25,188 25,188 25,188 25,188 25,188 25,188
JUNE 292,500 24,375 24,375 24,375 24,375 24,375 24,375 24,375
JULY 387,500 32,292 32,292 32,292 32,292 32,292 32,292
AUGUST 395,250 32,938 32,938 32,938 32,938 32,938
SEPTEMBER 390,000 32,500 32,500 32,500 32,500
OCTOBER 410,750 34,229 34,229 34,229
NOVEMBER 405,000 33,750 33,750
DECEMBER 395,250 32,938
JANUARY, 98 410,750
FEBRUARY 385,000
------------------------------------------------------------------------------------------------------------
4,399,500 26,479 52,104 77,292 101,667 133,959 168,897 199,397 233,628 267,376 300,314
-------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------
4,399,500
---------
Diff -
---------
---------
UNEARNED
JANUARY, 98 FEBRUARY BALNCE
----------- -------- ------
<S> <C> <C> <C>
MARCH, 97 26,480 26,480 -
APRIL 25,625 25,625 (25,625)
MAY 25,188 25,188 (50,370)
JUNE 24,375 24,375 (73,125)
JULY 32,292 32,292 (129,164)
AUGUST 32,938 32,938 (164,684)
SEPTEMBER 32,500 32,500 (195,000)
OCTOBER 34,229 34,229 (239,605)
NOVEMBER 33,750 33,750 (270,000)
DECEMBER 32,938 32,938 (296,436)
JANUARY, 98 34,229 34,229 (342,292)
FEBRUARY 32,083 (352,917)
---------------------------------
334,544 368,627 (2,139,218)
---------------------------------
---------------------------------
6 MONTHS
- --------
MARCH, 97 63,550 10,592 10,592 10,592 10,592 10,592 10,590
APRIL 61,500 10,250 10,250 10,250 10,250 10,250 10,250
MAY 80,450 10,075 10,075 10,075 10,075 10,075 10,075
JUNE 58,500 9,750 9,750 9,750 9,750 9,750 9,750
JULY 77,500 12,917 12,917 12,917 12,917 12,917 12,915
AUGUST 79,050 13,175 13,175 13,175 13,175 13,175
SEPTEBMER 78,000 13,000 13,000 13,000 13,000
OCTOBER 82,150 13,692 13,692 13,692
NOVEMBER 81,000 13,500 13,500
DECEMBER 79,050 13,175
JANUARY, 98 82,150
FEBRUARY 77,000
-----------------------------------------------------------------------------------------------------------
879,900 10,592 20,842 30,917 40,667 53,584 66,757 69,167 72,609 76,034 79,457
-------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------
879,900
--------
UNEARNED
JANUARY, 98 FEBRUARY BALNCE
----------- -------- ------
<S> <C> <C> <C>
MARCH, 97 -
APRIL -
MAY -
JUNE -
JULY -
AUGUST 13,175 -
SEPTEMBER 13,000 13,000 -
OCTOBER 13,692 13,692 (13,690)
NOVEMBER 13,500 13,500 (27,000)
DECEMBER 13,175 13,175 (39,525)
JANUARY, 98 13,692 13,692 (54,766)
FEBRRUARY 12,833 (64,167)
--------------------------------
80,234 79,892 (199,148)
--------------------------------
--------------------------------
</TABLE>
<PAGE>
UNEARNED REVENUE ALLOCATION
<TABLE>
TOTAL MARCH,97 APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER
----- -------- ----- --- ---- ---- ------ --------- ------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
3 MONTHS
- --------
MARCH,97 114,390 38,130 38,130 38,130
APRIL 110,700 36,900 36,900 36,900
MAY 108,810 36,270 36,270 36,270
JUNE 105,300 35,100 35,100 35,100
JULY 139,500 46,500 46,500 46,500
AUGUST 142,290 47,430 47,430 47,430
SEPTEMBER 140,400 46,800 46,800 46,800
OCTOBER 147,870 49,920 49,290 49,920
NOVEMBER 145,800 48,600 48,600
DECEMBER 142,290 47,430
JANUARY,98 147,870
FEBRUARY 138,800
---------------------------------------------------------------------------------------------------------------
1,583,820 38,130 75,030 111,300 108,270 117,870 129,030 140,730 143,520 144,690 145,320
------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------
1,583,820
---------
1 MONTH 139,810 135,300 132,990 128,700 170,600 173,910 171,600 180,730 178,200 173,910
- ------- ------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------
</TABLE>
UNEARNED
JANUARY,98 FEBRUARY BALANCE
---------- -------- --------
3 MONTHS
- --------
MARCH,97 -
APRIL -
MAY -
JUNE -
JULY -
AUGUST -
SEPTEMBER -
OCTOBER -
NOVEMBER 48,600 -
DECEMBER 47,430 47,430 -
JANUARY,98 49,290 49,290 (49,290)
FEBRUARY 46,200 (92,400)
--------------------------------------------
145,320 142,920 (141,690)
-----------------------------------
-----------------------------------
1 MONTH 180,730 169,400
- ------- ----------------------
----------------------
<PAGE>
SCHEDULE OF SUBSCRIBER CALL CENTER EXPENSES
<TABLE>
March April May June July August September October November
1996 1996 1996 1996 1996 1996 1996 1996 1996
$ $ $ $ $ $ $ $ $
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ADVERTISING AND PROMOTION 51,890 62,478 24,520 24,149 23,522 23,479 21,293 21,785 16,564
BANK CHARGES 12,264 13,094 11,690 9,886 13,517 13,640 13,620 14,434 14,292
BAD DEBTS 208 7,060 314 0 (2,242) 0 0 (13) 29
COMMISSION 2,207 9,260 7,520 4,920 7,214 3,433 3,744 4,932 3,796
COMPUTER 2,673 366 415 235 804 351 5,886 0 204
DEPRECIATION 8,765 31,865 8,512 8,344 8,185 8,025 4,746 7,769 7,928
INTEREST 13,131 10,342 16,306 13,146 23,212 19,090 19,975 213 50,263
OFFICE 27,703 3,684 18,108 15,251 12,533 16,663 16,706 24,555 23,359
PROFESSIONAL FEES 25,025 34,912 47,882 26,364 21,356 22,318 22,655 28,697 12,217
RENT 6,482 20,769 (3,678) 7,732 7,839 7,721 7,706 7,518 7,803
COREL CENTER 6,398 6,767 6,029 6,398 6,398 6,398 6,398 6,398 6,398
SALARIES 111,371 117,298 112,060 105,896 102,062 111,841 112,388 100,652 102,578
SUNDRY OPERATING 2,894 4,222 4,903 3,026 2,928 2,572 6,417 6,807 2,933
TRAVEL 9,542 8,298 4,900 (685) 904 19,383 3,474 14,520 4,715
TELEPHONE 17,717 21,502 11,443 14,683 10,780 11,111 17,690 18,076 21,373
UTILITIES 2,503 2,358 1,503 2,055 2,270 2,463 1,884 1,877 2,405
--------------------------------------------------------------------------------------------------
300,854 354,274 272,406 241,401 241,283 268,488 264,581 256,219 276,854
INTERCOMPANY REVENUE FOR
1043133 ONTARIO RECEIVED FROM
BARBADOS (A) 0 0 (244,200) (244,200) (244,200) (244,200) (244,200) (244,200) (244,200)
--------------------------------------------------------------------------------------------------
300,854 354,274 28,206 (2,799) (2,917) 24,288 20,381 12,019 32,654
INTERCOMPANY CHARGE FROM
1043133 ONTARIO TO
BARBADOS (B) 0 0 239,130 239,130 239,130 239,130 239,130 239,130 239,130
--------------------------------------------------------------------------------------------------
300,854 354,274 267,336 236,331 236,213 263,418 295,511 251,149 271,784
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
SCHEDULE 2.2
ALLOCATION OF PURCHASE PRICE
US$50,000 any and all trademarks, proprietary rights and other intellectual
property rights owned by Seller and associated with its Adult
Movies Business. These include but are not necessarily limited
to the trade names, trademarks and/or service marks listed on
SCHEDULE 1(a) of the Asset Purchase Agreement, "Trademarks List,"
and any goodwill associated with such trade names, trademarks
and/or service marks
US$500,000 any and all rights Sellers may have in adult programming in any
format (including master tapes) of feature length films and other
films and programming, interstitial or otherwise, that contain
motion picture material that is non-rated or X-rated and whose
main theme embodies nudity and/or sexually explicit material
between consenting adults, and all promotional materials and
programming related thereto as set forth in SCHEDULE 1(b) of the
Asset Purchase Agreement, "Programming List"
US$1,004,113 all subscriptions for the Adult Movies Business services as of
the Date of Closing, including all subscriber lists, past and
present, and any other marketing data related thereto, in the
possession of Sellers, as described in SCHEDULE 1(c) of the Asset
Purchase Agreement, "Subscribers List" (the subscriber lists
shall be delivered on disk(s) in electronic form only because of
the length of such lists)
US$1 a complete list of all advertisers, marketing partners and
vendors used by Sellers in relations to the Adult Movies business
and related services, with contact names, mailing addresses, and
phone and fax numbers; as set forth in SCHEDULE 1(d) of the Asset
Purchase Agreement, "Vendors List"
US$1 all rights, title and interest Sellers may have in 1-800 phone
numbers used for the Adult Movies Business and related services
and in any World Wide Web address and websites used in the Adult
Movies Business
US$1 copies of all papers, computerized databases, and records in
Sellers' custody or control relating to any or all of the above
described assets and the operation of Sellers' Adult Movies
Business, including but not limited to all sales and subscription
records, maintenance and production records, and plans and
designs of all structures, fixtures and equipment, but excluding
accounting and financial records and personnel and labor
relations records
<PAGE>
2
US$1 all rights, title and interests in any permits, licenses,
franchises, consents or authorizations issued by, and all
registrations and filings with, any government agency solely in
connection with Adult Movies Business of Sellers, whenever issued
or filed, (including but not limited to any permits or licenses
from the Canadian Radio-Television and Telecommunications
Commission and any permits or licenses from the Federal
Communications Commission) excepting only those which by law are
non-transferable or those which have expired
US$5,000,000 subleases in respect of all rights, title and interests 5DBC may
have in and pursuant to the Agreement between 5DBC and AT&T Corp.
concerning Skynet Transponder Service dated November 21, 1996,
and the Agreement between 5DBC and Loral Skynet concerning Skynet
Transponder service dated April 29, 1997
<PAGE>
SCHEDULE 4
LEASES, CONTRACTS, AND AGREEMENTS
<PAGE>
SCHEDULE 4
LEASES, CONTRACTS & AGREEMENTS
Seller shall assign and transfer and Buyer shall have the benefit of and
shall perform and assume the following Leases, Contracts and Agreements in
accordance with the conditions thereof, except to the extent set forth in the
subsequent Assignment or Assignment and Assumption Agreement for such Leases,
Contracts and Agreements:
1. Direct Marketing Agreement dated March 1, 1996 between:
Fifth Dimension Communications (Barbados) Inc., 1043133 Ontario Inc.
and TVE Communications LLC, as the First Parties, and
American Programming Service, as the Second Party
2. Direct Marketing Agreement dated March 1, 1996 between:
Fifth Dimension Communications (Barbados) Inc., 1043133 Ontario Inc.
and TVE Communications LLC, as the First Parties, and
Consumer Satellite Systems, Inc. as the Second Party
3. Direct Marketing Agreement dated March 1, 1996 between:
Fifth Dimension Communications (Barbados) Inc., 1043133 Ontario Inc.
and TVE Communications Inc., as the First Parties, and
Freedom Satellite as the Second Party
4. Direct Marketing Agreement dated March 1, 1996 between:
Fifth Dimension Communications (Barbados) Inc., 1043133 Ontario Inc.
and TVE Communications Inc., as the First Parties, and
FTP Services as the Second Party
5. Direct Marketing Agreement dated April 1, 1996 between:
Fifth Dimension Communications (Barbados) Inc., 1043133 Ontario Inc.
and TVE Communications Inc., as the First Parties, and
Galaxy Satellite Programming Inc. as the Second Party
6. Direct Marketing Agreement dated March 1, 1996 between:
Fifth Dimension Communications (Barbados) Inc., 1043133 Ontario Inc.
and TVE Communications LLC, as the First Parties, and
North American Programming Services Inc. as the Second Party
7. Direct Marketing Agreement dated March 1, 1996 between:
Fifth Dimension Communications (Barbados) Inc., 1043133 Ontario Inc.
and TVE Communications LLC, as the First Parties, and
Program Source as the Second Party
8. Direct Marketing Agreement dated April 1, 1996 between:
<PAGE>
Fifth Dimension Communications (Barbados) Inc., 1043133 Ontario Inc.
and TVE Communications Inc., as the First Parties, and
Satellite Direct Communications as the Second Party
9. Direct Marketing Agreement dated March 1, 1996 between:
Fifth Dimension Communications (Barbados) Inc., 1043133 Ontario Inc.
and TVE Communications Inc., as the First Parties, and
Satellite Programming Services as the Second Party
10. Direct Marketing Agreement dated March 1, 1996 between:
Fifth Dimension Communications (Barbados) Inc., 1043133 Ontario Inc.
and TVE Communications LLC, as the First Parties, and
Satellite Receivers LTD as the Second Party
11. Direct Marketing Agreement dated March 1, 1996 between:
Fifth Dimension Communications (Barbados) Inc., 1043133 Ontario Inc.
and TVE Communications Inc., as the First Parties, and
Satellite Source as the Second Party
12. Direct Marketing Agreement dated March 1, 1996 between:
Fifth Dimension Communications (Barbados) Inc., 1043133 Ontario Inc.
and TVE Communications LLC, as the First Parties, and
Skywalker Communications Inc. as the Second Party
13. Direct Marketing Agreement dated July 1, 1996 between:
Fifth Dimension Communications (Barbados) Inc., 1043133 Ontario Inc.
and TVE Communications Inc., as the First Parties, and
Superstar/Netlink Group LLC as the Second Party
14. Direct Marketing Agreement dated March 1, 1996 between:
Fifth Dimension Communications (Barbados) Inc., 1043133 Ontario Inc.
and TVE Communications Inc., as the First Parties, and
Turner Vision, Inc. as the Second Party
15. Direct Marketing Agreement dated March 1, 1996 between:
Fifth Dimension Communications (Barbados) Inc., 1043133 Ontario Inc.
and TVE Communications LLC, as the First Parties, and
Universal Satellite TV Inc. as the Second Party
16. Any and all licenses and contractual rights of Fifth Dimension
Communications (Barbados) Inc. for the films in the "XTC - COM Movie
Library", the titles and respective producers of which are attached here as
Exhibit A.
<PAGE>
EXHIBIT A
SCHEDULE A
LEASES, CONTRACTS, AND AGREEMENTS
<PAGE>
XTC-COM
MOVIE LIBRARY
Sept. 11, 1997
<PAGE>
- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
5355 $50,000,000 Cherry 00:00
- ------------------------------------------------------------------------------
3688 10,000 Anal Maniacs #01 75:08 1993 26-Jul-96
- ------------------------------------------------------------------------------
3687 10,000 Anal Maniacs #02 77:27 1994 26-Jul-96
- ------------------------------------------------------------------------------
4914 100% Amateur #01 112:06 1994 Odyssey Group 12-Dec-96
- ------------------------------------------------------------------------------
5105 100% Amateur #04 114:33 1994 Odyssey Group 04-Dec-96
- ------------------------------------------------------------------------------
5106 100% Amateur #05 112:02 1994 Odyssey Group 04-Dec-96
- ------------------------------------------------------------------------------
5107 100% Amateur #06 110:51 1994 Odyssey Group 04-Dec-96
- ------------------------------------------------------------------------------
5164 100% Amateur #07 00:00
- ------------------------------------------------------------------------------
5165 100% Amateur #08 117:07 1994 Odyssey Group 12-Dec-96
- ------------------------------------------------------------------------------
4918 100% Amateur #09 114:53 1995 Odyssey Group 12-Dec-96
- ------------------------------------------------------------------------------
5196 100% Amateur #10 112:46 1995 Odyssey Group 12-Dec-96
- ------------------------------------------------------------------------------
5174 100% Amateur #11 111:22 1995 Odyssey Group 12-Dec-96
- ------------------------------------------------------------------------------
5175 100% Amateur #12 112:20 1996 Odyssey Group 12-Dec-96
- ------------------------------------------------------------------------------
4912 100% Amateur #13 112:43 1996 Odyssey Group 12-Dec-96
- ------------------------------------------------------------------------------
4915 100% Amateur #14 113:04 1996 Odyssey Group 12-Dec-96
- ------------------------------------------------------------------------------
4913 100% Amateur #15 115:20 1996 Odyssey Group 12-Dec-96
- ------------------------------------------------------------------------------
4917 100% Amateur #16 114:12 1996 Odyssey Group 12-Dec-96
- ------------------------------------------------------------------------------
6108 100% Amateur #17 112:29 1996 Odyssey Group 21-Feb-97
- ------------------------------------------------------------------------------
6107 100% Amateur #18 112:55 1996 Odyssey Group 21-Feb-97
- ------------------------------------------------------------------------------
6106 100% Amateur #19 113:46 1996 Odyssey Group 21-Feb-97
- ------------------------------------------------------------------------------
6105 100% Amateur #20 113:08 1996 Odyssey Group 21-Feb-97
- ------------------------------------------------------------------------------
6104 100% Amateur #21 111:35 1996 Odyssey Group 24-Feb-97
- ------------------------------------------------------------------------------
6109 100% Amateur #22 115:02 1996 Odyssey Group 26-May-97
- ------------------------------------------------------------------------------
6110 100% Amateur #23 113:27 1996 Odyssey Group 24-Feb-97
- ------------------------------------------------------------------------------
6111 100% Amateur #24 00:00
- ------------------------------------------------------------------------------
6521 1001 Nights 79:28 1996 In-X-Cess Prod 01-May-97
- ------------------------------------------------------------------------------
4515 113 Cherry Lane 71:57 1995 01-Aug-96
- ------------------------------------------------------------------------------
3294 20th Century Fox 72:30 1991 Fantazy Ent. 15-May-96
- ------------------------------------------------------------------------------
3477 30 Days In The Hole 80:46 1993 Film West 24-May-96
- ------------------------------------------------------------------------------
5074 30 Men For Sandy 91:02 1995 Sin City/R. Siffre 29-Nov-96
- ------------------------------------------------------------------------------
6615 300 Men for Jasmin 88:36 1997 Dan Bender/ XTC 20-Jun-97
- ------------------------------------------------------------------------------
6635 4 Big Ones 82:22 1994 Digital Media Gro 25-Jul-97
- ------------------------------------------------------------------------------
3047 40 Something And Still
Hot 71:38 1995 Sunshine Films 16-Feb-96
- ------------------------------------------------------------------------------
3833 50 Enni Calore 75:00 0 27-Jul-96
- ------------------------------------------------------------------------------
0149 69 Pump Street 81:55 Zane Ent. 14-Jun-94
- ------------------------------------------------------------------------------
4776 7 Good Women**BAD VIDEO 81:05 1993 Hollywood Video 07-Oct-96
- ------------------------------------------------------------------------------
6008C A Coming Of Angel -
The Sequel 87:04
- -------------------------------------------------------------------------------
0942 A Few Good Women 76:28 1994 Hole In One Vide 14-Aug-94
- -------------------------------------------------------------------------------
1865 A Hard Act To Swallow 87:10 1988 Video Team 20-Jan-95
- -------------------------------------------------------------------------------
XXX A Lacey Affair 0
- -------------------------------------------------------------------------------
4558 A Lacy Affair 87:35 1984 Hollywood Video 23-Aug-96
- -------------------------------------------------------------------------------
0313 A Lacy Affair #03 76:40 1989 Hollywood / RHF 14-Jun-94
- -------------------------------------------------------------------------------
0303 A Lacy Affair #04 -
d3040? 67:55 1991 Hollywood Video 23-Sep-94
- -------------------------------------------------------------------------------
1429 A Little Christmas Tail 68:57 1991 Zane Ent. 25-Nov-94
- -------------------------------------------------------------------------------
Page 1
<PAGE>
MASTER DATA BASE
- -------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- -------------------------------------------------------------------------------
1818 A Little Dove Tail 75:40 1987 Intropics 20-Jan-95
- -------------------------------------------------------------------------------
0795 A Little Irresistable 72:38 1991 Zane Ent 01-Jun-94
- -------------------------------------------------------------------------------
2157 A Little Romance 87:20 1986 Hollywood Video 29-Mar-95
- -------------------------------------------------------------------------------
1858 A Lover For Susan 79:43 1987 Classic EdiUon Vi 20-Jan-95
- -------------------------------------------------------------------------------
2755 A Man's Dream 72:49 1992 Pleasure Produc 11-Dec-95
- -------------------------------------------------------------------------------
1237 A Pussy Called Wanda 78:58 1992 Dreamland Ent 27-Oct-94
- -------------------------------------------------------------------------------
1228 A Pussy Called Wanda 2 77:00
- -------------------------------------------------------------------------------
2816 A Rare Starlet 70:53 1987 Moonlight Ent. 29-Nov-95
- -------------------------------------------------------------------------------
4294 A Rear and Pleasant
Danger 81:55 1994 26-Jul-96
- -------------------------------------------------------------------------------
4292 A Reason To Die 87:56 1993 26-Jul-96
- -------------------------------------------------------------------------------
4291 A Round Behind 83:13 1995 26-Jul-96
- -------------------------------------------------------------------------------
1055 A Shaver Among Us 69:24 1991 Zane Ent. 20-Oct-94
- -------------------------------------------------------------------------------
6566 A Shot In The Pink 90:23 1995 CED/Barbie Brid 15-May-97
- -------------------------------------------------------------------------------
6569 A Shot In The Pink #2 86:55 1996 CED/Barbie Brid 15-May-97
- -------------------------------------------------------------------------------
1824 A Street Girl Named
Desire 77:25 1993 Fat Dog 20-Jan-95
- -------------------------------------------------------------------------------
1434 A Stripper Named Desire 82:05 1993 Coast To Coast 28-Oct-94
- -------------------------------------------------------------------------------
1975 A Taste Of Paradise 80:50 1985 RHF/Hollywood V 23-Sep-94
- -------------------------------------------------------------------------------
0682 A Taste of XTC 62:08 1991 Cinderella 01-Aug-94
- -------------------------------------------------------------------------------
0109 A Trip Down Mammary Lane 73:44 1991 Filmco Releasing 01-Jun-94
- -------------------------------------------------------------------------------
2711 A Trois Sur Caroline 74:53 1992 Euro-Sexe 31-Oct-95
- -------------------------------------------------------------------------------
1987 A Very Debauched Girl 83:51 1994 08-Mar-95
- -------------------------------------------------------------------------------
3055 A Witch's Tail 55:21 1994 Goulash Internati 02-Feb-96
- -------------------------------------------------------------------------------
3645 A.W.O.S. 74:06 26-Jul-96
- -------------------------------------------------------------------------------
6621 Abused 78:41 1996 CED/Zane Ent. 18-Jul-97
- -------------------------------------------------------------------------------
3160 Ace Mahulland 88:04
- -------------------------------------------------------------------------------
1426 Acts Of Confession 70:43 1991 Plum Prod. 21-Nov-94
- -------------------------------------------------------------------------------
4285 Acts of Confession 70:45 26-Jul-96
- -------------------------------------------------------------------------------
0781 Addicted To Cum 102:07
- -------------------------------------------------------------------------------
5077 Addicted To Lust 80:03 1996 nitro 23-Dec-96
- -------------------------------------------------------------------------------
1341 Adultery 84:23 1984 Dreamland Ent. 31-Oct-94
- -------------------------------------------------------------------------------
4290 Adultery 78:42 1986 26-Jul-96
- -------------------------------------------------------------------------------
6667 Adventures In Paradise 84:17 1996 Klimaxxx Prod. 28-Aug-97
- -------------------------------------------------------------------------------
2832 Adventures of DP Boys
#10 70:14 1995 Heatwave Entert 29-Nov-95
- -------------------------------------------------------------------------------
4296 Adventures of Major
Morehead 76:46 1994 26-Jul-96
- -------------------------------------------------------------------------------
4315 Adventures of Mighty Mac 72:41 1994 Legend Video 25-Jul-96
- -------------------------------------------------------------------------------
2668 Adventures Of Nanou #03 70:01 1994 Nanou 05-Oct-95
- -------------------------------------------------------------------------------
3505 African Angel #01 116:20 1994 Nitro 07-Oct-96
- -------------------------------------------------------------------------------
4735 African Angel #02 115:25 1996 Nitro 05-Sep-96
- -------------------------------------------------------------------------------
5227 African Angels #3 108:55 0 Rodnievision 19-Aug-97
- -------------------------------------------------------------------------------
4689 Afrodisiac 74:12 Coast To Coast 30-Aug-96
- -------------------------------------------------------------------------------
4602 Afrodisiac #02 79:17 1989 Coast To Coast 30-Aug-96
- -------------------------------------------------------------------------------
4690 After Midnight 67:20 1992 Coast To Coast 30-Aug-96
- -------------------------------------------------------------------------------
0351 Afternoon Tease 85:42
- -------------------------------------------------------------------------------
0351 Afternoon Tease 0
- -------------------------------------------------------------------------------
Page 2
<PAGE>
MASTER DATA BASE
- -------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- -------------------------------------------------------------------------------
3283 Against All Bods 88:32 1987
- -------------------------------------------------------------------------------
2380 Aged To PerfecUon 109:17 1994 Totally Tastless 10-Jul-95
- -------------------------------------------------------------------------------
3266 Aged To Perfection #02 80:00 1995 Totally Tastless 15-May-96
- -------------------------------------------------------------------------------
2962 AHV - Triple Play #97 86:51 1995 Odyssey Group 02-Feb-96
- -------------------------------------------------------------------------------
2712 AHV: Triple Play #82
- Backdoor Barb 84:19 1994 Odyssey 02-Nov-95
- -------------------------------------------------------------------------------
1909 AJA 78:13 1988 21-Feb-95
- -------------------------------------------------------------------------------
4282 Aja & Friends 74:12 26-Jul-96
- -------------------------------------------------------------------------------
5083 Al Borda's Brazilian
Adventures 62:30 1996 Al Borda Video 08-Jan-97
- -------------------------------------------------------------------------------
2740 Alex Jordan's First
Timers #01 84:25 1993 Odyssey 18-Oct-95
- -------------------------------------------------------------------------------
2726 Alex Jordan's First
Timers #02 86:06 1993 Odyssey Group 18-Oct-95
- -------------------------------------------------------------------------------
2743 Alex Jordan's First
Timers #03 89:43 1993 Odyssey 18-Oct-95
- -------------------------------------------------------------------------------
2741 Alex Jordan's First
Timers #04 88:03 1994 Odyssey 18-Oct-95
- -------------------------------------------------------------------------------
2742 Alex Jordan's First
Timers #05 88:03 1994 Odyssey 18-Oct-95
- -------------------------------------------------------------------------------
2744 Alex Jordan's First
Timers #06 89:10 1994 Odyssey 18-Oct-95
- -------------------------------------------------------------------------------
4739 Ali Boobie & The 40 D's 75:10 1987 Fantasy Ent 05-Sep-96
- -------------------------------------------------------------------------------
4289 Alice in Anal Land 76:44 1994 26-Jul-96
- -------------------------------------------------------------------------------
0751 Alice In Hollyweird 71:30 1992 Zane Ent 01-Jun-94
- -------------------------------------------------------------------------------
5180 All American Anal Nurses 80:26 1996 L.B.O. 03-Dec-96
- -------------------------------------------------------------------------------
4288 All American Girl 83:13 1991 Fantazy Ent. 26-Jul-96
- -------------------------------------------------------------------------------
1556 All American Girl**Cppa
(dupe-4288) 74:59 Fantazy Ent. 26-Jul-96
- -------------------------------------------------------------------------------
2475 All Inside Eva - Una
Donna Chiamata C 79:45 1994 08-Sep-95
- -------------------------------------------------------------------------------
4700 All Night Long 82:38 1989 05-Sep-96
- -------------------------------------------------------------------------------
0918 All That Sex 74:06 1990 Legend Video 25-Aug-94
- -------------------------------------------------------------------------------
1345 All The Right Motions 78:22 Dreamland Ent. 31-Oct-94
- -------------------------------------------------------------------------------
0309 All The Way 84:04 1989 Hollywood Video 14-Jun-94
- -------------------------------------------------------------------------------
0752 All The Way Down 73:00 1987
- -------------------------------------------------------------------------------
2409 All The Way In 83:16 1986 Osolobo Producti 18-Jul-95
- -------------------------------------------------------------------------------
6494 All The Way Up 71:54 1993 Fat Dog 07-May-97
- -------------------------------------------------------------------------------
0867 Alley Cat 70:54 1991 Cinderella 01-Aug-94
- -------------------------------------------------------------------------------
1929 Always 76:26 1993 Xcitement 21-Feb-95
- -------------------------------------------------------------------------------
3188 Amanda Victoria -
Sultry Sessions 63:09 1995 Glitz Video 25-Mar-96
- -------------------------------------------------------------------------------
1891 Amateur Dreams 2
Inter-racial dreams 71:31 1994 Dreamland Ent. 24-Jan-95
- -------------------------------------------------------------------------------
2306 Amateur Home Video
#03-Porking in R 74:16 1991 AHV 02-Jun-95
- -------------------------------------------------------------------------------
2714 Amateur Home Video -
Triple Play #73 84:24 1994 Odyssey 02-Nov-95
- -------------------------------------------------------------------------------
2716 Amateur Home Video -
Triple Play #75 86:18 1994 Odyssey 02-Nov-95
- -------------------------------------------------------------------------------
2717 Amateur Home Video -
Triple Play 74 - 83:40 1994 Odyssey 02-Nov-95
- -------------------------------------------------------------------------------
2309 Amateur Home Video 23 -
Hidden Char 67:39 1992 EVN 02-Jun-95
- -------------------------------------------------------------------------------
2429 Amateur Home Video 33 -
To The Baja 67:24 1993 EVN 02-Aug-95
- -------------------------------------------------------------------------------
2307 Amateur Home Video 38 -
Mysterious 71:26 1993 AHV 02-Jun-95
- -------------------------------------------------------------------------------
2308 Amateur Home Video 39 -
The Folks N 69:13 1993 AHV 02-Jun-95
- -------------------------------------------------------------------------------
2311 Amateur Home Video 8 -
Sweet Heat 72:58 1991 AHV 02-Jun-95
- -------------------------------------------------------------------------------
2206 Amateur Night #01 84:50 1990 Hollywood Video 01-May-95
- -------------------------------------------------------------------------------
3782 Amateur Night #01 119:28 1993 03-Jul-96
- -------------------------------------------------------------------------------
3783 Amateur Night #02 111:17 1993 03-Jul-96
- -------------------------------------------------------------------------------
Page 3
<PAGE>
MASTER DATA BASE
- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
2310 Amateur Night #03 84:47 1990 Hollywood Video 02-Jun-95
- ------------------------------------------------------------------------------
2205 Amateur Night #07 83:18 1991 Hollywood Video 01-May-95
- ------------------------------------------------------------------------------
4698 Amateur Nights #05 80:09 Hollywood Video 30-Aug-96
- ------------------------------------------------------------------------------
4778 Amateur Nights #08 80:14 1990 Hollywood Video 07-Oct-96
- ------------------------------------------------------------------------------
4781 Amateur Nights #09 79:50 1990 Hollywood Video 07-Oct-96
- ------------------------------------------------------------------------------
4777 Amateur Nights #10 76:00 1990 Hollywood Video 07-Oct-96
- ------------------------------------------------------------------------------
2664 Amateurs Exposed #01 110:34 1992 05-Oct-95
- ------------------------------------------------------------------------------
2665 Amateurs Exposed #02 109:55 1993 05-Oct-95
- ------------------------------------------------------------------------------
2572 Amateurs Exposed #03 105:27 1993 Amateurs In Acti 08-Sep-95
- ------------------------------------------------------------------------------
2573 Amateurs Exposed #04 117:30 1994 08-Sep-95
- ------------------------------------------------------------------------------
XXX Amazing Tails 0
- ------------------------------------------------------------------------------
6290C Amazing Tails #02 73:07
- ------------------------------------------------------------------------------
5378C Amazing Tails #05 00:00
- ------------------------------------------------------------------------------
XXX Amazon Heat 00:00
- ------------------------------------------------------------------------------
2045 Amber Pays The Rent 82:26 1986 Video Team 02-Mar-95
- ------------------------------------------------------------------------------
2029 Amber Waves 84:57 1987 Video Team 23-Feb-95
- ------------------------------------------------------------------------------
2443 Ambushed 86:55 0 N/A 18-Jul-95
- ------------------------------------------------------------------------------
0775 Amer's Rnchst Home
Vid #01 74:27 n 01-Jun-94
- ------------------------------------------------------------------------------
0776 Amer's Rnchst Home
Vid #02 70:51 Zane Ent. 01-Jun-94
- ------------------------------------------------------------------------------
0777 Amer's Rnchst Home
Vid #03 72:28 1991 Zane Ent. 01-Jun-94
- ------------------------------------------------------------------------------
0778 Amer's Rnchst Home
Vid #04 72:44 1991 Zane Ent. 01-Jun-94
- ------------------------------------------------------------------------------
0779 Amer's Rnchst Home
Vid #05 72:50
- ------------------------------------------------------------------------------
1459 Amer's Rnchst Home
Vid #06 71:56 1992 Zane Ent. 25-Nov-94
- ------------------------------------------------------------------------------
1886 Amer's Rnchst Home
Vid #07 71:17 1991 Zane Ent. 24-Jan-95
- ------------------------------------------------------------------------------
1460 Amer's Rnchst Home
Vid #09 74:42 1989 Zane Ent. 25-Nov-94
- ------------------------------------------------------------------------------
1462 Amer's Rnchst Home
Vid #10 71:57 1992 Zane Ent. 25-Nov-94
- ------------------------------------------------------------------------------
1461 Amer's Rnchst Home
Vid #11 70:26 1991 Zane Ent. 25-Nov-94
- ------------------------------------------------------------------------------
1416 Amer's Rnchst Home
Vid #13 69:55 1992 Zane Ent. 25-Nov-94
- ------------------------------------------------------------------------------
1980 Amer's Rnchst Home
Vid #19 65:36 1992 Zane EnL 08-Feb-95
- ------------------------------------------------------------------------------
2114 Amer's Rnchst Home
Vid #28 68:25 1992 Zane Ent. 16-Feb-95
- ------------------------------------------------------------------------------
1896 Amer's Rnchst Home
Vid #36 74:29 1992 Zane Ent. 24-Jan-95
- ------------------------------------------------------------------------------
2115 Amer's Rnchst Home
Vid #47 63:15 1992 Zane Ent. 16-Feb-95
- ------------------------------------------------------------------------------
2116 Amer's Rnchst Home
Vid #48 65:40 1992 Zane Ent. 16-Feb-95
- ------------------------------------------------------------------------------
2105 Amer's Rnchst Home
Vid #50 69:55 1993 Zane Ent. 16-Feb-95
- ------------------------------------------------------------------------------
2204 Amer's Rnchst Home
Vid #51 73:11 1993 Zane Ent. 28-Apr-95
- ------------------------------------------------------------------------------
2113 Amer's Rnchst Home
Vid #55 72:31 1990 Zane Ent. 16-Feb-95
- ------------------------------------------------------------------------------
1982 Amer's Rnchst Home
Vid #61 83:02 1994 Zane Ent. 08-Feb-95
- ------------------------------------------------------------------------------
1977 Amer's Rnchst Home
Vid #62 79:23 1993 Zane Ent. 08-Feb-95
- ------------------------------------------------------------------------------
1979 Amer's Rnchst Home
Vid #74 80:16 1993 Zane Ent. 08-Feb-95
- ------------------------------------------------------------------------------
1978 Amer's Rnchst Home
Vid #75 81:41 1993 Zane Ent. 08-Feb-95
- ------------------------------------------------------------------------------
1417 Amer's Rnchst Home
Vid 12 70:26
- ------------------------------------------------------------------------------
1981 Amer's Rnchst Home
Vid 34 79:55 1992
- ------------------------------------------------------------------------------
2713 America's Home Video's
#30 - Uptown 72:07 1992 EVN 02-Nov-95
- ------------------------------------------------------------------------------
4565 America's Most Wanted 85:28 1991 Hollywood Video 23-Aug-96
- ------------------------------------------------------------------------------
Page 4
<PAGE>
MASTER DATA BASE
- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
4293 American Beauty #01 74:23 1994 26-Jul-96
- ------------------------------------------------------------------------------
4297 American Beauty #02 71:26 26-Jul-96
- ------------------------------------------------------------------------------
0913 American Built 66:26 1992 Legends Video 25-Aug-94
- ------------------------------------------------------------------------------
2697 American Home Video -
Triple Play #6 85:54 1994 Odyssey 02-Nov-95
- ------------------------------------------------------------------------------
2695 American Home Video -
Triple Play #6 85:50 1994 Odyssey 02-Nov-95
- ------------------------------------------------------------------------------
2691 American Home Video -
Triple Play #7 84:10 1994 Odyssey 31-Oct-95
- ------------------------------------------------------------------------------
2698 American Home Video -
Triple Play 65 85:14 1994 Odyssey 02-Nov-95
- ------------------------------------------------------------------------------
2692 American Home Video -
Triple Play 70 83:36 1994 Odyssey 02-Nov-95
- ------------------------------------------------------------------------------
6629 American Swinger Video
Magazine #0 116:29 CED/Zane Ent 17-Jul-97
- ------------------------------------------------------------------------------
6528 Amici per II ... Sesso
Anale 77:20 N/A 01-May-97
- ------------------------------------------------------------------------------
2341 Amorous Amateurs #02 80:58 1992 Pearl Necklace V 04-Jul-95
- ------------------------------------------------------------------------------
2339 Amorous Amateurs #10 104:38 1992 Pearl Necklace V 27-Jun-95
- ------------------------------------------------------------------------------
2428 Amorous Amateurs #13 99:39 1992 Pearl Necklace V 02-Aug-95
- ------------------------------------------------------------------------------
1109 Amorous Amateurs #33 112:32 1994 Pearl Necklace V 09-Sep-94
- ------------------------------------------------------------------------------
1107 Amorous Amateurs #34 106:57 1994 Pearl Necklace V 09-Sep-94
- ------------------------------------------------------------------------------
1108 Amorous Amateurs #35 105:47 1994 Pearl Necklace V 09-Sep-94
- ------------------------------------------------------------------------------
1533 Amorous Amateurs #36 106:59 Pearl Necklace V 28-Nov-94
- ------------------------------------------------------------------------------
4526 An Innocent Woman 65:20 01-Aug-96
- ------------------------------------------------------------------------------
1008 An Innocent Woman 65:16
- ------------------------------------------------------------------------------
1343 An Unnaturel Act #01 79:52 Dreamland Ent. 31-Oct-94
- ------------------------------------------------------------------------------
1342 An Unnaturel Act #02 71:27 0 Dreamland Ent. 31-Oct-94
- ------------------------------------------------------------------------------
1780 Anal 0rgasm 72:31 1992 Dragon 24-Jan-95
- ------------------------------------------------------------------------------
4769 Anal 247 74:10 1995 Coast To Coast 24-Sep-96
- ------------------------------------------------------------------------------
3244 Anal Addiction 76:30 1990 Valentine 06-May-96
- ------------------------------------------------------------------------------
2108 Anal Addiction #02 84:11 1990 Valentine 16-Feb-95
- ------------------------------------------------------------------------------
2153 Anal Addiction #02 84:17 1991 Valentine 29-Mar-95
- ------------------------------------------------------------------------------
2347 Anal Addicts 75:30 1995 Kiny World Prod 27-Jun-95
- ------------------------------------------------------------------------------
3243 Anal Adventures 74:26 1992 Mitch Spinelli 06-May-96
- ------------------------------------------------------------------------------
2247 Anal Al's Adventures 103:47 1995 Pleasure Produc 01-May-95
- ------------------------------------------------------------------------------
4600 Anal Alien 77:06 1994 Coast To Coast 30-Aug-96
- ------------------------------------------------------------------------------
2826 Anal Analysis 66:13 1992 Heatwave Entert 29-Nov-95
- ------------------------------------------------------------------------------
1628 Anal Angel 71:36
- ------------------------------------------------------------------------------
0165 Anal Annie And The Men
In Her Life 106:00 Lipstick Video
- ------------------------------------------------------------------------------
2802 Anal Asians #02 86:39 1994 Intropics 29-Nov-95
- ------------------------------------------------------------------------------
4659 Anal Attitude 73:26 1992 Hollywood Video 30-Aug-96
- ------------------------------------------------------------------------------
3211 Anal Bad Girls 72:52 1994 Rosebud prod. 13-Mar-96
- ------------------------------------------------------------------------------
4428 Anal Blues 92:14 1994 25-Jul-96
- ------------------------------------------------------------------------------
2128 Anal Boom 77:05 0 Movie Star 10-Mar-95
- ------------------------------------------------------------------------------
3485 Anal Brunettes 111:28 Odyssey Group 24-May-96
- ------------------------------------------------------------------------------
1619 Anal Bunny 78:32 Movie Star 09-Dec-94
- ------------------------------------------------------------------------------
4295 Anal Carnival -D4283 72:58 1991 26-Jul-96
- ------------------------------------------------------------------------------
1396 Anal Carnival -D4295 00:00 17-Nov-94
- ------------------------------------------------------------------------------
4283 Anal Chiropractor*D3158 80:47 1995 26-Jul-96
- ------------------------------------------------------------------------------
3158 Anal Chiropractor*D4283 80:47 1995 Cinderella 04-Mar-96
- ------------------------------------------------------------------------------
Page 5
<PAGE>
MASTER DATA BASE
- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
4286 Anal Climax 72:51 1991 26-Jul-96
- ------------------------------------------------------------------------------
4287 Anal Climax #02 75:15 1991 26-Jul-96
- ------------------------------------------------------------------------------
1447 Anal Climax #03 75:45 1991 Rose Bud 11-Aug-95
- ------------------------------------------------------------------------------
3693 Anal Coed 76:05 1994 26-Jul-96
- ------------------------------------------------------------------------------
3692 Anal Crack Master 71:12 26-Jul-96
- ------------------------------------------------------------------------------
3696 Anal Cubes of
Chinatown #01 77:33 1992 26-Jul-96
- ------------------------------------------------------------------------------
3695 Anal Cuties of
Chinatown #02 77:11 1992 24-Jul-96
- ------------------------------------------------------------------------------
3694 Anal Cuties of
Chinatown #03 71:11 1992 26-Jul-96
- ------------------------------------------------------------------------------
0722 Anal Dawn 72:17 1991 Zane Ent. 01-Jun-94
- ------------------------------------------------------------------------------
3699 Anal Delights #01 77:01 26-Jul-96
- ------------------------------------------------------------------------------
3698 Anal Delights #02 75:20 1993 26-Jul-96
- ------------------------------------------------------------------------------
3697 Anal Delights #03 72:33 26-Jul-96
- ------------------------------------------------------------------------------
3691 Anal Delinquent #01 75:19 1994 26-Jul-96
- ------------------------------------------------------------------------------
3690 Anal Delinquent #02 72:43 26-Jul-96
- ------------------------------------------------------------------------------
3676 Anal Distraction 82:02 1993 26-Jul-96
- ------------------------------------------------------------------------------
3689 Anal Ecstasy 71:58 26-Jul-96
- ------------------------------------------------------------------------------
2611 Anal Europe #08 74:02 1993 Las Vegas Video 08-Sep-95
- ------------------------------------------------------------------------------
5265 Anal Explosions #01 83:10 1996 Nitro 08-Jan-97
- ------------------------------------------------------------------------------
6242 Anal Explosions #2 76:04 1996 Nitro Prod. 03-Mar-97
- ------------------------------------------------------------------------------
0744 Anal Extacy Girls 87:07 1993 Rosebud Prod. 01-Jun-94
- ------------------------------------------------------------------------------
4949 Anal Factory #04 -
- ------------------------------------------------------------------------------
Anal Nitrate 79:59 1995 Plush Ent. 05-Nov-96
- ------------------------------------------------------------------------------
4948 Anal Factory #05 -
In Through The Out 71:49 1995 Plush Ent. 05-Nov-96
- ------------------------------------------------------------------------------
4950 Anal Factory #06 -
Anal Pool Party 80:28 1995 Plush Ent. 05-Nov-96
- ------------------------------------------------------------------------------
3611 Anal Fever 86:02 1991 02-Jul-96
- ------------------------------------------------------------------------------
2370 Anal Freaks 78:34 1994 Kinky World Prod 27-Jun-95
- ------------------------------------------------------------------------------
3181 Anal Fugitive 80:00 1995 Pepper Prod. 04-Mar-96
- ------------------------------------------------------------------------------
3674 Anal Fury 76:20 1991 26-Jul-96
- ------------------------------------------------------------------------------
2782 Anal Gang Bang #03 66:45 1995 FHV/Sunshine 29-Nov-95
- ------------------------------------------------------------------------------
3628 Anal Generation 71:48 02-Jul-96
- ------------------------------------------------------------------------------
2938 Anal Heartbreakers 77:50
- ------------------------------------------------------------------------------
1927 Anal Heat 73:05 1991 Zane Ent. 16-Feb-95
- ------------------------------------------------------------------------------
3679 Anal Hounds and Bitches 72:18 1994 26-Jul-96
- ------------------------------------------------------------------------------
4712 Anal House Party 79:35 1993 In-X-Cess Prod 05-Sep-96
- ------------------------------------------------------------------------------
3678 Anal Idol 72:30 1994 26-Jul-96
- ------------------------------------------------------------------------------
3681 Anal Illusions 67:38 1991 26-Jul-96
- ------------------------------------------------------------------------------
3684 Anal Inferno 70:42 1992 26-Jul-96
- ------------------------------------------------------------------------------
4480 Anal Innocence 80:55 1991 01-Aug-96
- ------------------------------------------------------------------------------
3685 Anal Innocence #02 71:29 1994 31-Dec-95
- ------------------------------------------------------------------------------
1122 Anal Intruder #01 82:34 1989 Coast To Coast 28-Oct-94
- ------------------------------------------------------------------------------
4599 Anal Intruder #02 68:04 Coast To Coast 30-Aug-96
- ------------------------------------------------------------------------------
4601 Anal Intruder #03 72:42 1989 Coast To Coast 30-Aug-96
- ------------------------------------------------------------------------------
4694 Anal Intruder #04 82:37 1989 Coast To Coast 30-Aug-96
- ------------------------------------------------------------------------------
1972 Anal Intruder #05 84:14 Coast To Coast 08-Feb-95
- ------------------------------------------------------------------------------
4580 Anal Intruder #09 83:36 1995 23-Aug-96
- ------------------------------------------------------------------------------
Page 6
<PAGE>
MASTER DATA BASE
- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
4606 Anal Intruder #10 75:46 1995 Coast To Coast 30-Aug-96
- ------------------------------------------------------------------------------
1396 Anal Intruder 8**CPPA 79:32 1994
- ------------------------------------------------------------------------------
3680 Anal Invader 82:04 1995 26-Jul-96
- ------------------------------------------------------------------------------
3683 Anal Kittens 71:37 26-Jul-96
- ------------------------------------------------------------------------------
2035 Anal Knights Of
Hollywood 83:20 1993 Fantastic
- ------------------------------------------------------------------------------
3682 Anal Lover #01 73:34 1992 26-Jul-96
- ------------------------------------------------------------------------------
3686 Anal Lover 2~CPPA 71:50 1994
- ------------------------------------------------------------------------------
4425 Anal Madness 84:13 1992 25-Jul-96
- ------------------------------------------------------------------------------
XXX Anal Malle Exposed 0
- ------------------------------------------------------------------------------
2836 Anal Maniacs #01 - Off
To Hollywood 75:05 1994 Zane Ent. 02-Nov-95
- ------------------------------------------------------------------------------
2853 Anal Maniacs #02
(Quebec Version) 75:47 1995 Wicked Pictures 03-Jan-96
- ------------------------------------------------------------------------------
3233 Anal Maniacs #03 80:04 1995 Western Visuals 23-Apr-96
- ------------------------------------------------------------------------------
6015C Anal Misconduct 00:00 Video
- ------------------------------------------------------------------------------
2141 Anal Mystique 83:30 1994 Emerald City 10-Mar-95
- ------------------------------------------------------------------------------
2032 Anal Nation #02 72:57 1991 Coast To Coast 08-Feb-95
- ------------------------------------------------------------------------------
2154 Anal Orgy 71:50 1992 Dragon 29-Mar-95
- ------------------------------------------------------------------------------
3673 Anal Oriental Sorority 109:12 1994 26-Jul-96
- ------------------------------------------------------------------------------
2184 Anal Persuasion 82:47 1994 Executive 28-Apr-95
- ------------------------------------------------------------------------------
2181 Anal Planet 83:12 1994 Coast To Coast 31-Mar-95
- ------------------------------------------------------------------------------
3675 Anal Poker 87:41 1993 26-Jul-96
- ------------------------------------------------------------------------------
3665 Anal Rampage #01 80:04 1992 26-Jul-96
- ------------------------------------------------------------------------------
3666 Anal Rampage #02 70:52 1992 26-Jul-96
- ------------------------------------------------------------------------------
5225 Anal Receivers 00:00 Masked Pictures
- ------------------------------------------------------------------------------
1889 Anal Rescue 811 77:15 1992 05-Jan-95
- ------------------------------------------------------------------------------
3663 Anal Revolution 73:36 1991 26-Jul-96
- ------------------------------------------------------------------------------
2682 Anal Romance 78:32 1993 Las Vegas Video 18-Oct-95
- ------------------------------------------------------------------------------
3664 Anal Rookies 78:21 1992 26-Jul-96
- ------------------------------------------------------------------------------
3661 Anal Savage #01 71:38 1994 26-Jul-96
- ------------------------------------------------------------------------------
3662 Anal Savage #02 72:54 16-Jul-96
- ------------------------------------------------------------------------------
1970 Anal Scream 118:24 1993 Pleasure Prod. 02-Mar-95
- ------------------------------------------------------------------------------
4409 Anal Seige 74:29 1993 26-Jul-96
- ------------------------------------------------------------------------------
3659 Anal Senorita 71:55 1995 16-Jul-96
- ------------------------------------------------------------------------------
3660 Anal Sensations 77:34 1993 26-Jul-96
- ------------------------------------------------------------------------------
4785 Anal Sexual Silence 87:55 1993 In-X-Cess Produc 17-Oct-96
- ------------------------------------------------------------------------------
4479 Anal Sluts & Sweethearts 77:22 1992 01-Aug-96
- ------------------------------------------------------------------------------
1401 Anal Sluts And
Sweethearts 77:43 1992
- ------------------------------------------------------------------------------
3658 Anal Sluts and
Sweethearts #02 78:26 1992 26-Jul-96
- ------------------------------------------------------------------------------
3667 Anal Squeeze 73:39 1993 16-Jul-96
- ------------------------------------------------------------------------------
4478 Anal Starlets -d1408 96:24 1991 01-Aug-96
- ------------------------------------------------------------------------------
1408 Anal Starlets --d4478 72:09 Rosebuds 25-Nov-94
- ------------------------------------------------------------------------------
3656 Anal Taboo 72:09 1992 26-Jul-96
- ------------------------------------------------------------------------------
3668 Anal Takeover #01 93:24 1993 26-Jul-96
- ------------------------------------------------------------------------------
2285 Anal Therapy 77:03 1992 Fat Dog 02-Jun-95
- ------------------------------------------------------------------------------
3655 Anal Thrills 71:12 1992 26-Jul-96
- ------------------------------------------------------------------------------
Page 7
<PAGE>
MASTER DATA BASE
- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
3649 Anal Thunder #01 74:24 26-Jul-96
- ------------------------------------------------------------------------------
3654 Anal Thunder #02 71:25 1994 26-Jul-96
- ------------------------------------------------------------------------------
3507 Anal Town USA #03
**Don't Schedule 83:57 1995 Nitro 25-Sep-96
- ------------------------------------------------------------------------------
4361 Anal Town USA #04
**Don't Schedule 78:19 1995 Nitro 26-Jul-96
- ------------------------------------------------------------------------------
3530 Anal Town USA #05 **CPPA 79:47 1995 Nitro 24-Sep-96
- ------------------------------------------------------------------------------
3509 Anal Town USA #06**CPPA 81:11 1995 Nitro 25-Sep-96
- ------------------------------------------------------------------------------
3535 Anal Town USA #07
**Don't Schedule 79:44 1996 Nitro 24-Sep-96
- ------------------------------------------------------------------------------
3534 Anal Town USA #08
**Don't Schedule 78:52 1996 Nitro 24-Sep-96
- ------------------------------------------------------------------------------
3511 Anal Town USA #09
**Don't Schedule 79:38 1996 Nitro 25-Sep-96
- ------------------------------------------------------------------------------
3532 Anal Town USA #10
**Don't Schedule 77:22 1996 Nitro 24-Sep-96
- ------------------------------------------------------------------------------
3647 Anal Town USA #11
**Don't Schedule 76:57 1996 Nitro 26-Jul-96
- ------------------------------------------------------------------------------
3508 Anal Town USA #11**CPPA 78:56 1996 Nitro 25-Sep-96
- ------------------------------------------------------------------------------
3510 Anal Town USA #12 **CPPA 76:24 Nitro 24-Sep-96
- ------------------------------------------------------------------------------
3648 Anal Town USA #12
**Don't Schedule 77:10 1996 Nitro 26-Jul-96
- ------------------------------------------------------------------------------
1995 Anal Twins 83:59 1992 Coast To Coast 08-Feb-95
- ------------------------------------------------------------------------------
4486 Anal Urge 83:15 1993 01-Aug-96
- ------------------------------------------------------------------------------
6577 Anal Virgins 94:38 1996 Plush Ent./New S 05-Jun-97
- ------------------------------------------------------------------------------
6626 Anal Virgins #02 86:11 1996 Plush Ent./New S 17-Jul-97
- ------------------------------------------------------------------------------
6625 Anal Virgins #03 87:38 1996 Plush Ent./New S 17-Jul-97
- ------------------------------------------------------------------------------
1404 Anal Virgins Of America
#01 77:07 1993 Forbidden 25-Nov-94
- ------------------------------------------------------------------------------
1887 Anal Virgins Of America
#03 83:03 1993 Valintine/Forbidd 24-Jan-95
- ------------------------------------------------------------------------------
3245 Anal Virgins Of America
#04 82:04 1993 Forbidden Films 06-May-96
- ------------------------------------------------------------------------------
3239 Anal Virgins Of America
#05 80:14 1993 Forbidden Films 06-May-96
- ------------------------------------------------------------------------------
1892 Anal Virgins Of America
4 82:04 1993
- ------------------------------------------------------------------------------
3657 Anal Vision #03 81:58 1992 26-Jul-96
- ------------------------------------------------------------------------------
3652 Anal Vision #09 78:51 1993 26-Jul-96
- ------------------------------------------------------------------------------
3650 Anal Vision #18 81:44 1993 26-Jul-96
- ------------------------------------------------------------------------------
3651 Anal Vision #23 58:47 1994 26-Jul-96
- ------------------------------------------------------------------------------
5028 Anal Witness 106:56 Henri Pachard Pr 08-Jan-97
- ------------------------------------------------------------------------------
1183 Anal Woman #02 76:20 08-Aug-94
- ------------------------------------------------------------------------------
2252 Anal Woman #03 79:59 1995 Pleasure Produc 01-May-95
- ------------------------------------------------------------------------------
2385 Analation 77:45 1990 n 20-Jun-95
- ------------------------------------------------------------------------------
2376 Analita Campagnola
(Sexy Country Gir 76:47 1994 Tibbins Internati 27-Jun-95
- ------------------------------------------------------------------------------
2253 Anals Of History #02 72:27 1992 Midnight Vid. 02-Jun-95
- ------------------------------------------------------------------------------
2277 Anaux d'Amour Baise au
Telephone 80:01 Magma 31-Mar-95
- ------------------------------------------------------------------------------
2917 Angel Baby 79:25 1995 Sin City 04-Jan-96
- ------------------------------------------------------------------------------
3572 Angel Gets Even 74:03 0 Fantazy Ent 17-Jul-96
- ------------------------------------------------------------------------------
3640 Angel Hard 88:10 1996 Ona Zee 03-Jul-96
- ------------------------------------------------------------------------------
3589 Angel Kelly Raw 76:36 Fantazy Ent 25-Jul-96
- ------------------------------------------------------------------------------
3109 Angel Of The Night 82:28 1989 Intropics Video 14-Feb-96
- ------------------------------------------------------------------------------
1923 Angel Rising 71:56 1988 Intropics 23-Feb-95
- ------------------------------------------------------------------------------
2292 Angel's Got To Have It 68:14 Cinderella 24-May-95
- ------------------------------------------------------------------------------
4509 Angela Baron's Final
Farewell 84:17 1989 01-Aug-96
- ------------------------------------------------------------------------------
3599 Angela Takes A Dare 79:12 1988 Fantazy Ent 17-Jul-96
- ------------------------------------------------------------------------------
Page 8
<PAGE>
MASTER DATA BASE
- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
1579 Angelina - Garages A
Bites 81:02 1992 Eurnpix 18-Nov-94
- ------------------------------------------------------------------------------
3531 Angels In Flight 80:27 1995 Nitro 24-Sep-96
- ------------------------------------------------------------------------------
2162 Angels Of Mercy 86:45 1985 Hollywood Video 29-Mar-95
- ------------------------------------------------------------------------------
5158C Angels With Sticky Faces 00:00 East River Film W
- ------------------------------------------------------------------------------
6724 Anna Malle's Wild Life
#01 86:54
- ------------------------------------------------------------------------------
3643 Anniversary 87:24 1992 26-Jul-96
- ------------------------------------------------------------------------------
3700 Annunci A.A.A. 89:56 1994 23-Aug-96
- ------------------------------------------------------------------------------
1075 Another Rear View 75:12 1991 Legend Video 20-Oct-94
- ------------------------------------------------------------------------------
1450 Another Secret 77:49 Soho Video 03-Jan-95
- ------------------------------------------------------------------------------
3271 Anthony Spinelli's
Ecstasy 72:28 1986 Plum Prod. 07-May-96
- ------------------------------------------------------------------------------
4598 Anus Family 89:33 1991 Coast To Coast 30-Aug-96
- ------------------------------------------------------------------------------
1000 Anus The Menace 78:55 1993 Coast To Coast 12-Sep-94
- ------------------------------------------------------------------------------
4522 Any Port in The Storm 86:37 1991 01-Aug-96
- ------------------------------------------------------------------------------
4539 Anything Goes 105:24 1996 Outlaw 23-Aug-96
- ------------------------------------------------------------------------------
4651 April Rayne Is Wild &
Wicked 79:06 CDI/Video Team 30-Aug-96
- ------------------------------------------------------------------------------
2536 Arabian Nights 107:26 1994 Wicked Pictures 30-Aug-95
- ------------------------------------------------------------------------------
3127 Ariana's Dirty Dancers 138:21 1995 4 Play Prod. 04-Mar-96
- ------------------------------------------------------------------------------
3129 Ariana's Dirty Dancers
#01 138:23 1994 4 Play Prod. 04-Mar-96
- ------------------------------------------------------------------------------
3124 Ariana's Dirty Dancers
#03 138:08 1995 4 Play Prod. 04-Mar-96
- ------------------------------------------------------------------------------
3204 Ariana's Dirty Dancers
#04 140:19 1992 4 Play Prod. 19-Apr-96
- ------------------------------------------------------------------------------
3198 Ariana's Dirty Dancers
#05 138:09 1995 Ed Powers 09-Apr-96
- ------------------------------------------------------------------------------
3201 Ariana's Dirty Dancers
#06 138:59 1995 Ed Powers 19-Apr-96
- ------------------------------------------------------------------------------
6280 Arizona Gold 73:31 1996 Klimaxxx Prod. 04-Apr-97
- ------------------------------------------------------------------------------
1949 Art Of Sex 77:35 1993 Fat Dog 23-Feb-95
- ------------------------------------------------------------------------------
3135 As Time Goes Bi**Damaged 80:00 1993 28-Feb-96
- ------------------------------------------------------------------------------
1346 Ascent Of A Woman 84:52 1993 Dreamland Ent. 31-Oct-94
- ------------------------------------------------------------------------------
XXX Asia 0
- ------------------------------------------------------------------------------
6174 Asia Volume #04 83:36 0 03-Sep-97
- ------------------------------------------------------------------------------
1973 Asian Appetite 76:16 1993 Hollywood Video 23-Sep-94
- ------------------------------------------------------------------------------
4465 Asian Beauties 73:22 1993 EVN (CDI) 25-Jul-96
- ------------------------------------------------------------------------------
4805 Asian Debutantes #01 63:00 1996 In-X-Cess Prod 20-Sep-96
- ------------------------------------------------------------------------------
4702 Asian Debutantes #02 63:04 1995 In-X-Cess Prod 05-Sep-96
- ------------------------------------------------------------------------------
4804 Asian Debutantes #03 59:43 1996 In-X-Cess Prod 20-Sep-96
- ------------------------------------------------------------------------------
6550 Asian Debutantes #07 89:41 1997 In-X-Cess Prod 26-May-97
- ------------------------------------------------------------------------------
6549 Asian Debutantes #08 82:55 1997 In-X-Cess Prod 26-May-97
- ------------------------------------------------------------------------------
6548 Asian Debutantes #09 86:43 1997 In-X-Cess Prod 26-May-97
- ------------------------------------------------------------------------------
6556 Asian Debutantes #10 87:43 1997 In-X-Cess Prod 02-Jun-97
- ------------------------------------------------------------------------------
4540 Asian Exotica 70:38 1995 EVN (CDI) 09-Aug-96
- ------------------------------------------------------------------------------
4362 Asian Fantasies 72:16 1995 EVN (CDI) 26-Jul-96
- ------------------------------------------------------------------------------
6215 Asian Games 86:51 1995 Western Visuals 01-Mar-97
- ------------------------------------------------------------------------------
3653 Asian Heat #01 73:50 1993 16-Jul-96
- ------------------------------------------------------------------------------
3642 Asian Heat #02 72:31 1993 18-Jul-96
- ------------------------------------------------------------------------------
3644 Asian Heat #03 73:55 1993 16-Jul-96
- ------------------------------------------------------------------------------
3671 Asian Heat #04 83:30 1993 18-Jul-96
- ------------------------------------------------------------------------------
Page 9
<PAGE>
MASTER DATA BASE
- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
3672 Asian Heat #05 82:23 1995 16-Jul-96
- ------------------------------------------------------------------------------
XXX Asian Invasian 0
- ------------------------------------------------------------------------------
XXX Asian Invasion 0
- ------------------------------------------------------------------------------
4299 Asian Passion 66:44 EVN (CDI) 17-Jul-96
- ------------------------------------------------------------------------------
1638 Asian Persuasion 90:48 1993 Western Visuals 20-Dec-94
- ------------------------------------------------------------------------------
4364 Asian Vacation 66:38 1993 26-Jul-96
- ------------------------------------------------------------------------------
4358 Asians on the Make 69:08 1996 EVN (CDI) 26-Jul-96
- ------------------------------------------------------------------------------
6659 Ass Busters Incorporated 80:30 1995 Blue Coyote Pict 28-Aug-97
- ------------------------------------------------------------------------------
2827 Ass Capades 66:25 1992 Heatwave Entert 29-Nov-95
- ------------------------------------------------------------------------------
2936 Ass Freaks 73:50 1995 Rosebud Prod. 03-Jan-96
- ------------------------------------------------------------------------------
3670 Ass Kisser- "A Love
Story" 79:14 1995 16-Jul-96
- ------------------------------------------------------------------------------
4974 Ass Lovers Special 88:06 1995 Plush Ent. 13-Nov-96
- ------------------------------------------------------------------------------
0851 Assinine 72:00 0 Hole In One 14-Aug-94
- ------------------------------------------------------------------------------
3362 Assmania #02 86:50 1995 Moonlight 30-May-96
- ------------------------------------------------------------------------------
XXX Asspiring Actresses 0
- ------------------------------------------------------------------------------
3212 Assy Sassy #02 72:28 1994 Rosebud prod. 13-Mar-96
- ------------------------------------------------------------------------------
1581 Ateliers Hard 71:02 1993 Fanta-Z 18-Nov-94
- ------------------------------------------------------------------------------
3165 Attic Toys 76:10 1995 Eroyic Angel/ Mid 25-Mar-96
- ------------------------------------------------------------------------------
6509 Authentic Bi & Beyond #6 78:28 1995 Fat Dog 15-May-97
- ------------------------------------------------------------------------------
2152 Auto Erotica #02 71:01 Valentine 10-Mar-95
- ------------------------------------------------------------------------------
6572 Aux Frontieres du Rectum 69:15 1996 M.S.T/Turbo Film 02-Jun-97
- ------------------------------------------------------------------------------
0853 Avenging Angel #01 76:08 Coast To Coast 06-May-94
- ------------------------------------------------------------------------------
3071 Avventura In Discoteca 125:05 Midnight Prod. 31-Jan-96
- ------------------------------------------------------------------------------
3714 Babe Patrol 75:43 1994 27-Jul-96
- ------------------------------------------------------------------------------
4524 Babe Watch #01 91:42 1994 01-Aug-96
- ------------------------------------------------------------------------------
3712 Babe Watch #02 87:45 1994 27-Jul-96
- ------------------------------------------------------------------------------
4827 Babe Watch #03 72:48 1995 Sin City 20-Sep-96
- ------------------------------------------------------------------------------
6246 Babe Wire 114:08 1996 Heatwave 04-Apr-97
- ------------------------------------------------------------------------------
1118 Babes 71:17 1993 Cinderella 23-Sep-94
- ------------------------------------------------------------------------------
2927 Babydoll 75:00 1994 Sin City 03-Jan-96
- ------------------------------------------------------------------------------
4736 Babylon 2000 72:29 1994 Fantazy Ent 05-Sep-96
- ------------------------------------------------------------------------------
1901 Back Alley #02 102:45 1991 Western Visuals 11-Jan-95
- ------------------------------------------------------------------------------
1712 Back Alley #06 112:54 1991 Western Visuals 20-Dec-94
- ------------------------------------------------------------------------------
1900 BackAlley #07 118:10 1991 Western Visuals 11-Jan-95
- ------------------------------------------------------------------------------
2102 Back Alley #08 106:39 1991 Western Visuals 31-Jan-95
- ------------------------------------------------------------------------------
1757 Back Alley #10 110:36 1991 Western Visuals 11-Jan-95
- ------------------------------------------------------------------------------
2099 Back Alley #20 104:58 1992 Western Visuals 31-Jan-95
- ------------------------------------------------------------------------------
1934 Back Burners - Their
Hottest Anal Sce 89:41 1992 Video Team 05-Sep-95
- ------------------------------------------------------------------------------
4300 Back Door Asians 65:40 1995 EVN (CDI) 17-Jul-96
- ------------------------------------------------------------------------------
3596 Back East Babes #01 85:47 1994 Nitro 25-Jul-96
- ------------------------------------------------------------------------------
3597 Back East Babes #02 77:56 0 Nitro 25-Jul-96
- ------------------------------------------------------------------------------
5222 Back East Babes #03 83:00 1996 Nitro 03-Jan-97
- ------------------------------------------------------------------------------
3594 Back on Top 75:54 1989 Fantasy Home Vi 25-Jul-96
- ------------------------------------------------------------------------------
5202 Back Rent 83:26 1995 Masked Pictures 28-Jan-97
- ------------------------------------------------------------------------------
Page 10
<PAGE>
MASTER DATA BASE
- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
4729 Back To Class 74:40 1984
- ------------------------------------------------------------------------------
6154 Backdoor Black 00:00
- ------------------------------------------------------------------------------
6051 Backdoor Blacks #02 87:42 1993 Western Visuals 28-Jan-97
- ------------------------------------------------------------------------------
2878 Backdoor To Budapest 66:47 1993 Heatwave 03-Jan-96
- ------------------------------------------------------------------------------
1957 Backdoor To Hollywood 79:53 1986 CB Prod. 10-Aug-95
- ------------------------------------------------------------------------------
1264 Backdoor To Hollywood
#03 90:05 1989 Cinderella 05-Nov-94
- ------------------------------------------------------------------------------
1321 Backdoor To Hollywood
#04 74:00 1989 Cinderella 17-Nov-94
- ------------------------------------------------------------------------------
1278 Backdoor To Hollywood
#05 88:56 Cinderella 05-Nov-94
- ------------------------------------------------------------------------------
1279 Backdoor To Hollywood
#06 74:55 Cinderella 05-Nov-94
- ------------------------------------------------------------------------------
1280 Backdoor To Hollywood
#07 80:24 1989 Cinderella 05-Nov-94
- ------------------------------------------------------------------------------
1320 Backdoor To Hollywood
#08 88:37 1989 Cinderella 17-Nov-94
- ------------------------------------------------------------------------------
1322 Backdoor To Hollywood
#10 73:50 1990 Cinderella 17-Nov-94
- ------------------------------------------------------------------------------
1323 Backdoor To Hollywood
#11 72:30 Cinderella 17-Nov-94
- ------------------------------------------------------------------------------
1324 Backdoor To Hollywood
#12 82:59 1990 Cinderella 17-Nov-94
- ------------------------------------------------------------------------------
1325 Backdoor To Hollywood
#13 71:00 Cinderella 17-Nov-94
- ------------------------------------------------------------------------------
3256 Backdoor To Paradise 90:11 1985 Pleasure Produc 23-May-96
- ------------------------------------------------------------------------------
0087 Backin' In 92:48 1993 Western Visuals 14-Jun-94
- ------------------------------------------------------------------------------
5238 Backing In #05 00:00
- ------------------------------------------------------------------------------
5237 Backing In #06 00:00
- ------------------------------------------------------------------------------
6058 Backing In #07 00:00
- ------------------------------------------------------------------------------
6059 Backing In #07 0 Western Visuals
- ------------------------------------------------------------------------------
0088 Backing In 2 0
- ------------------------------------------------------------------------------
3713 Backside Out #02 87:49 1992 27-Jul-96
- ------------------------------------------------------------------------------
1912 Backside To The
Future**incest 87:03 1993
- ------------------------------------------------------------------------------
3297 Backstage 82:19 Cinderella 01-May-96
- ------------------------------------------------------------------------------
1953 Backway Inn #02 74:00 1992 Fat Dog 23-Feb-95
- ------------------------------------------------------------------------------
6511 Backway Inn #05 85:16 1995 Fat Dog 28-Apr-97
- ------------------------------------------------------------------------------
0858 Bad Attitude 70:03 1991 Cinderella 01-Aug-94
- ------------------------------------------------------------------------------
4758 Bad Break 82:16 1991 CDI/Video Team 24-Sep-96
- ------------------------------------------------------------------------------
0301 Bad Girls 84:00
- ------------------------------------------------------------------------------
2451 Bad Girls #02 81:51 1983
- ------------------------------------------------------------------------------
1625 Bad Girls #03 86:10 1990 Plum Prod./Night 23-Sep-94
- ------------------------------------------------------------------------------
1626 Bad Girls #04 76:45 1987 Plum Prod./Night 23-Sep-94
- ------------------------------------------------------------------------------
2557 Bad Girls #04 104:37 1986 Gourmet Video 16-Oct-95
- ------------------------------------------------------------------------------
1602 Bad Girls 2 -
Stripsearch 71:48 1989 Plum Prod. 23-Sep-94
- ------------------------------------------------------------------------------
0948 Bad Influence 72:18 1991 Cinderella 01-Aug-94
- ------------------------------------------------------------------------------
4645 Bad Mama Jama & The Fat
Ladies Of T 89:36 CDI/Video Team 30-Aug-96
- ------------------------------------------------------------------------------
3718 Badlands #01 87:20 1994 26-Jul-96
- ------------------------------------------------------------------------------
3717 Badlands #02 83:36 1994 27-Jul-96
- ------------------------------------------------------------------------------
5240 Baise Paysanne 86:05 Turbo Film 08-Jan-97
- ------------------------------------------------------------------------------
4447 Bang City #05 65:58 1995 Sin City 25-Jul-96
- ------------------------------------------------------------------------------
1682 Bang-A-Thon 108:45 Western Visuals 11-Jan-95
- ------------------------------------------------------------------------------
5201 Bangin' the Boys Under
the Hood 00:00 Sticky Video Pro
- ------------------------------------------------------------------------------
2192 Barbarella La Donna di
Cuori 68:10 1992 27-Mar-95
- ------------------------------------------------------------------------------
Page 11
<PAGE>
MASTER DATA BASE
- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
0028 Barbi Unleashed 103:19
- ------------------------------------------------------------------------------
0028 Barbii Unleashed 84:17
- ------------------------------------------------------------------------------
3459 Bare Ass In The Park 79:56 1995 Pepper Prod. 23-May-96
- ------------------------------------------------------------------------------
0757 Barflies 84:58 1990 Zane Ent. 01-Jun-94
- ------------------------------------------------------------------------------
3087 Barrio Babes - Homie
Sweet Homie 78:58 1994 Sin City 02-Feb-96
- ------------------------------------------------------------------------------
4513 Bashful Blonde From
Beautiful Bendov 93:46 1994 01-Aug-96
- ------------------------------------------------------------------------------
3724 Bat Bitch #01 73:09 1990 27-Jul-96
- ------------------------------------------------------------------------------
3723 Bat Bitch #02 72:01 1991 27-Jul-96
- ------------------------------------------------------------------------------
0086 Battle Of The Stars 71:26 1985 Now Showing 14-Jun-94
- ------------------------------------------------------------------------------
0102 Battle Of The Ultra
Milk Maids 87:45 1992 Filmco Releasing 01-Jun-94
- ------------------------------------------------------------------------------
0725 Bay City Hot Licks 66:30 Rosebud Prod. 01-Jun-94
- ------------------------------------------------------------------------------
0976 Bazooka County 73:00 Coast To Coast 07-Oct-94
- ------------------------------------------------------------------------------
0987 Bazooka County #03 76:27 1991 Coast To Coast 07-Oct-94
- ------------------------------------------------------------------------------
0968 Bazooka County #04 85:50 1992 Coast To Coast 14-Aug-94
- ------------------------------------------------------------------------------
0946 Bazooka County #05 70:29 1993 Savage/Coast To 14-Aug-94
- ------------------------------------------------------------------------------
1039 Bazooka County 2**Cppa 72:45 1989
- ------------------------------------------------------------------------------
2919 Beach Ball 78:34 1994 Sin City 03-Jan-96
- ------------------------------------------------------------------------------
3022 Beach Blondes 69:16 1994 Midnight 05-Feb-96
- ------------------------------------------------------------------------------
0934 Beauty And The Beach 70:00
- ------------------------------------------------------------------------------
0934 Beauty and the Beach 71:46 Teese Me Prod. 14-Sep-94
- ------------------------------------------------------------------------------
4832 Beaver & Buttface -
'Porno Rules!' 71:21 1995 Sin City 20-Sep-96
- ------------------------------------------------------------------------------
1360 Beaver And Buttcheeks 81:47 Dreamland Ent. 31-Oct-94
- ------------------------------------------------------------------------------
3159 Because I Can 88:39 1995 Bella Pictures 15-May-96
- ------------------------------------------------------------------------------
6640 Because I Can, Too 90:00
- ------------------------------------------------------------------------------
2604 Bedazzled 82:04 1993 Odyssey Group 08-Sep-95
- ------------------------------------------------------------------------------
2981 Bedtime Stories 70:43 1986 Western Visuals 31-Jan-96
- ------------------------------------------------------------------------------
4334 Beeping Miss Buffy 64:03 1996 CDI 26-Jul-96
- ------------------------------------------------------------------------------
1597 Beetlejizm 82:52 1991 11-Jan-95
- ------------------------------------------------------------------------------
6567 Begging for It 74:41 1996 CED/Poison Pictu 15-May-97
- ------------------------------------------------------------------------------
2819 Behind Blue Eyes 80:55 1986 Moonlight Ented 29-Nov-95
- ------------------------------------------------------------------------------
2830 Behind Blue Eyes #02 77:31 1988 Moonlight Ented 29-Nov-95
- ------------------------------------------------------------------------------
2680 Behind The Backdoor #05 75:11 1992 EUN 02-Nov-95
- ------------------------------------------------------------------------------
3721 Behind The Brown Door 71:33 1995 16-Jul-96
- ------------------------------------------------------------------------------
3592 Behind the Scenes 83:19 1994 Fantazy Ent. 25-Jul-96
- ------------------------------------------------------------------------------
3103 Bella Monica 89:15 1994 Fiesta Direct 28-Feb-96
- ------------------------------------------------------------------------------
2892 Ben Dover And Barbie 107:07 1995 FHV/Sunshine 03-Jan-96
- ------------------------------------------------------------------------------
3711 Best Body in Town 74:58 1989 27-Jul-96
- ------------------------------------------------------------------------------
0965 Best Butt ln The West 113:10 1995 Coast To Coast 14-Sep-94
- ------------------------------------------------------------------------------
4607 Best Butt ln The West 2 86:25 1995 Coast To Coast 30-Aug-96
- ------------------------------------------------------------------------------
2030 Best of Edward
Penishands 90:38 1992 Video Team 02-Mar-95
- ------------------------------------------------------------------------------
0713 Best Of Kascha 119:15 1990 Cinderella 01-Jun-94
- ------------------------------------------------------------------------------
1520 Best Of Loose Ends #02 82:30 4 Play Prod. 28-Oct-94
- ------------------------------------------------------------------------------
4238 Best of Oriental Anal 120:38 24-Jul-96
- ------------------------------------------------------------------------------
4836 Best Of Talk Dirty #01 117:32 1991 CDI/Dreamland 24-Sep-96
- ------------------------------------------------------------------------------
Page 12
<PAGE>
MASTER DATA BASE
- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
4837 Best Of Talk Dirty #02 114:32 1992 CDI/Dreamland 24-Sep-96
- ------------------------------------------------------------------------------
3716 Best Of The Ass Masters
*CPPA 74:38
- ------------------------------------------------------------------------------
1019 Betrayal 81:01 1992 07-Oct-94
- ------------------------------------------------------------------------------
2432 Betrayal Of Innocence 111:30 1994 Coast To Coast 11-Aug-95
- ------------------------------------------------------------------------------
2418 Betrayal Of Innocence
#03 68:09 1994 Coast To Coast 18-Jul-95
- ------------------------------------------------------------------------------
0994 Between Her Thighs 64:43 1992 Cinderella 12-Sep-94
- ------------------------------------------------------------------------------
6240 Beverly Hills Bikini
Company 110:10 1996 N/A 03-Mar-97
- ------------------------------------------------------------------------------
2886 Beverly Hills Seduction 76:44 1988 Western Visuals 03-Jan-96
- ------------------------------------------------------------------------------
3253 Beverly She-Billies 70:06 1994 23-May-96
- ------------------------------------------------------------------------------
1645 Beyond Desire 72:44 Night Magic 20-Dec-94
- ------------------------------------------------------------------------------
0897 Beyond Innocence 70:37 1990 LBO Ent. Group 30-Aug-94
- ------------------------------------------------------------------------------
2466 Bi 'N' Large 84:30 1994 Bi-Line 30-Aug-95
- ------------------------------------------------------------------------------
2949 Bi-Bi Baby 76:02 1990 Cinderella 29-Nov-95
- ------------------------------------------------------------------------------
2670 Bi-Bi European Style 74:18 1991 Pleasure Produc 30-Oct-95
- ------------------------------------------------------------------------------
2764 Bi-Ways 58:20 1990
- ------------------------------------------------------------------------------
2445 Bi And Beyond - The
Ultimate Sexual U 74:58 Paul Norman Pro 18-Jul-95
- ------------------------------------------------------------------------------
3037 Bi And Byond #05 -
Where No Man Has 84:05 1991 Paul Norman 31-Jan-96
- ------------------------------------------------------------------------------
3136 Bi Anonymous 89:00 1993 28-Feb-96
- ------------------------------------------------------------------------------
3029 Bi Claudius 78:50 1994 Bi-Line 02-Feb-96
- ------------------------------------------------------------------------------
3035 Bi Dream Of Genie 76:56 1994 Bi-Line 02-Feb-96
- ------------------------------------------------------------------------------
3039 Bi George 79:22 1994 Bi-Line 02-Feb-96
- ------------------------------------------------------------------------------
3046 Bi Golly 63:33 1993 Bi-Line 02-Feb-96
- ------------------------------------------------------------------------------
4953 Bi Laurie 88:58 1995 Digital Media 05-Nov-96
- ------------------------------------------------------------------------------
3030 Bi N' Large 0
- ------------------------------------------------------------------------------
3216 Bi Now, Pay Later 69:22 1995 Pleasure Prod. 13-Mar-96
- ------------------------------------------------------------------------------
3138 Bi On The 4th Of July 77:19 1994 28-Feb-96
- ------------------------------------------------------------------------------
2852 Bi Swingers 80:23 1990
- ------------------------------------------------------------------------------
3137 Bi The Time You Get Back 89:08 1995 28-Feb-96
- ------------------------------------------------------------------------------
2671 Bi-Dacious 72:39 1989 Pleasure Produc 30-Oct-95
- ------------------------------------------------------------------------------
4573 Bi-witched 81:10 CDI/Pepper 23-Aug-96
- ------------------------------------------------------------------------------
3715 Bianca Trump's Towers 74:19 27-Jul-96
- ------------------------------------------------------------------------------
3401 Big Black & Beautiful
Gang Bang 75:12 1995 Hollywood Video 19-Aug-97
- ------------------------------------------------------------------------------
2051 Big Boob Bonanza 70:50 1993 Video Team 18-Feb-95
- ------------------------------------------------------------------------------
2118 Big Boob Bonanza #02 79:14 1994 Video Team 02-Mar-95
- ------------------------------------------------------------------------------
4586 Big Bust Bangers 70:36 1994 Fantastic Picture 23-Aug-96
- ------------------------------------------------------------------------------
2715 Big Murray's #06 107:06 1993 Fat Dog 18-Oct-95
- ------------------------------------------------------------------------------
2424 Big Murray's #08 -
Blondes Have More 109:20 1993 Fat Dog 02-Aug-95
- ------------------------------------------------------------------------------
2696 Big Murray's #11 -
Willing And Able 107:42 1993 Fat Dog 18-Oct-95
- ------------------------------------------------------------------------------
2616 Big Murray's #12 109:06 1993 Fat Dog 08-Sep-95
- ------------------------------------------------------------------------------
2699 Big Murray's #18 -
Crazed Cuties 83:56 1993 Fat Dog 18-Oct-95
- ------------------------------------------------------------------------------
2203 Big Murray's #19 67:30 1994
- ------------------------------------------------------------------------------
2336 Big Murray's #22 -
Exotic Erotica" 96:13 1993 Fat Dog 01-May-95
- ------------------------------------------------------------------------------
2333 Big Murray's #24 -
Age Before Beauty 76:45 1993 Fat Dog 01-May-95
- ------------------------------------------------------------------------------
2332 Big Murray's #25 -
Age Before Beauty 74:05 1994 Fat Dog 01-May-95
- ------------------------------------------------------------------------------
Page 13
<PAGE>
MASTER DATA BASE
- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
2202 Big Murray's #26 -
Real Tits 70:43 1994 Fat Dog 01-May-95
- ------------------------------------------------------------------------------
2334 Big Murray's Nu-Cummers
23 "Naught 73:55 01-May-95
- ------------------------------------------------------------------------------
5356C Big Orgy 84:10 Vidco
- ------------------------------------------------------------------------------
5017 Big Pink 91:51 1995 Sin City 19-Nov-96
- ------------------------------------------------------------------------------
4458 Big Thingiees 69:26 1996 Bella Pictures 25-Jul-96
- ------------------------------------------------------------------------------
3708 Big Tit Racket 85:13 1995 26-Jul-96
- ------------------------------------------------------------------------------
3707 Big Town 77:43 1993 27-Jul-96
- ------------------------------------------------------------------------------
1066 Bigger 69:10
- ------------------------------------------------------------------------------
0919 Biker Chicks ln Love 67:59 Legend Video 25-Aug-94
- ------------------------------------------------------------------------------
1112 Bikini Beach #01 82:14 1993 Coast To Coast 22-Oct-94
- ------------------------------------------------------------------------------
1113 Bikini Beach #02 78:06 1993 Coast To Coast 22-Oct-94
- ------------------------------------------------------------------------------
4693 Bikini Beach #03 76:28 1994 Coast To Coast 30-Aug-96
- ------------------------------------------------------------------------------
0939 Bikini City 70:13 1991 Coast To Coast
- ------------------------------------------------------------------------------
2870 Biloxi Babes 69:15 1988 Western Visuals 03-Jan-96
- ------------------------------------------------------------------------------
4922 Bimbet's Anal Land 85:20 1996 Tight Ends Produ 13-Nov-96
- ------------------------------------------------------------------------------
0138 Bimbo Bowlers From
Boston 85:48 1989 Zane Ent. 14-Jun-94
- ------------------------------------------------------------------------------
3207 Bimbo Bowlers From
Buffalo 88:00 1989 Zane Ent. 13-Mar-96
- ------------------------------------------------------------------------------
3546 Bimbo Cheerleaders
From Outer Spac 79:21 1990 Fantazy Ent 07-Jul-96
- ------------------------------------------------------------------------------
1888 Bimbonese 101 77:25 1993 05-Jan-95
- ------------------------------------------------------------------------------
4833 Biography - Buck Adams 69:28 1995 Sin City 20-Sep-96
- ------------------------------------------------------------------------------
2914 Biography: Rocco
Siffredi - The Man a 75:47 1995 Sin City 03-Jan-96
- ------------------------------------------------------------------------------
6501 Biography: Asia Carrera 73:21 1996 Sin City 08-May-97
- ------------------------------------------------------------------------------
6489 Biography: Jeanna Fine 80:31 1996 Sin City 08-May-97
- ------------------------------------------------------------------------------
4783 Biography: Jon Dough 67:08 1996 Sin City 17-Oct-96
- ------------------------------------------------------------------------------
4747 Biography: Max Steiner 70:41 1995 Sin City 20-Sep-96
- ------------------------------------------------------------------------------
6565 Biography: Rocco
Sifreddi #02 84:34 1996 Sin City 28-Apr-97
- ------------------------------------------------------------------------------
6500 Biography: Ron Jeremy 74:50 1996 Sin City 06-May-97
- ------------------------------------------------------------------------------
4795 Biography: Samantha
Strong 67:50 1995 Sin City 16-Oct-96
- ------------------------------------------------------------------------------
4790 Biography: Sulka 55:02 1981 Sin City 16-Oct-96
- ------------------------------------------------------------------------------
4745 Biography: Sunset Thomas 77:01 1995 Sin City 20-Sep-96
- ------------------------------------------------------------------------------
6491 Biography: Tabitha Cash 65:53 1996 Sin City 08-May-97
- ------------------------------------------------------------------------------
0163 Bionca On Fire 85:01 1984 Play Prod. 14-Jun-94
- ------------------------------------------------------------------------------
2639 Bisexuel 81:15 Euro Vid. 30-Sep-95
- ------------------------------------------------------------------------------
2708 Bittes Expertes Pour
Chattes A L'Essai 84:20 1991
- ------------------------------------------------------------------------------
4499 Bizar Studio #303 74:11 0 01-Aug-96
- ------------------------------------------------------------------------------
4582 Bizarr Studio 74:13 0 EMP Video 23-Aug-96
- ------------------------------------------------------------------------------
4525 Black & Horny 84:33 1994 01-Aug-96
- ------------------------------------------------------------------------------
4618 Black & White Revisited 76:11 CDI/Video Team 30-Aug-96
- ------------------------------------------------------------------------------
4688 Black Anal Memories 85:34 1994 Coast To Coast 30-Aug-96
- ------------------------------------------------------------------------------
1453 Black And Blue 83:30 1991 Soho Video 03-Jan-95
- ------------------------------------------------------------------------------
1163 Black And Born To
Butt Fuck 113:22 1991 Zane Ent. 07-Sep-94
- ------------------------------------------------------------------------------
1193 Black And Gold 73:28 Ebony & Ivory 05-Nov-94
- ------------------------------------------------------------------------------
3706 Black and White 80:57 1992 18-Jul-96
- ------------------------------------------------------------------------------
1810 Black And White In
Living Colour 81:50 1992 Bad Girls 03-Jan-95
- ------------------------------------------------------------------------------
Page 14
<PAGE>
MASTER DATA BASE
- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
2904 Black Ass Mastas -
Darker And Deepe 70:42 1995 Sin City 03-Jan-96
- ------------------------------------------------------------------------------
2365 Black Beauty 83:20 1989 Ebony and Ivory 27-Jun-95
- ------------------------------------------------------------------------------
2005 Black Booty 82:16 1993 Zane Ent 01-Mar-95
- ------------------------------------------------------------------------------
1135 Black Buttman 70:28 1994 Coast To Coast 22-Oct-94
- ------------------------------------------------------------------------------
1393 Black Buttnicks 74:50 Coast To Coast 28-Oct-94
- ------------------------------------------------------------------------------
0761 Black By Popular Demand 69:05 1992 Zane Ent. 01-Jun-94
- ------------------------------------------------------------------------------
1508 Black Chicks In Heat
#02 109:43 Pepper Prod. 30-Jan-95
- ------------------------------------------------------------------------------
1256 Black Detail "Vienna"
#01 85:19 1994 Video Team 27-Oct-94
- ------------------------------------------------------------------------------
1841 Black Detail #02 78:34 1994 Video Team 20-Jan-95
- ------------------------------------------------------------------------------
0680 Black Dreams 83:02 1992 Ebony & Ivory Vi 14-Aug-94
- ------------------------------------------------------------------------------
0762 Black Encounters 74:05 Zane Ent. 01-Jun-94
- ------------------------------------------------------------------------------
4590 Black Erotic Moments 82:19 1989 23-Aug-96
- ------------------------------------------------------------------------------
1898 Black For More 86:18 1993 Zane Ent. 24-Jan-95
- ------------------------------------------------------------------------------
3291 Black Hole #05 95:18 1995 Cinderella 15-May-96
- ------------------------------------------------------------------------------
0763 Black In The Saddle 83:59 1990 Zane Ent. 01-Jun-94
- ------------------------------------------------------------------------------
6136 Black Label #03 -
Facial Fantasies 115:20 1996 Ona Zee 10-Feb-97
- ------------------------------------------------------------------------------
6135 Black Label #04 -
Busty Encounters 113:37 1996 Ona Zee/Glitz Vid 10-Feb-97
- ------------------------------------------------------------------------------
1267 Black Licorice 76:20 Fanta-Z 05-Nov-94
- ------------------------------------------------------------------------------
4725 Black Magic 75:25 1986 Dreamland Ent. 24-Sep-96
- ------------------------------------------------------------------------------
2551 Black Mamma Whamma 79:29 1992 Western Visuals 29-Sep-95
- ------------------------------------------------------------------------------
2315 Black Men, White Women 48:10 1994 Global 24-Apr-96
- ------------------------------------------------------------------------------
3217 Black Moon Rising 71:17 1987 Zane Ent. 25-Mar-96
- ------------------------------------------------------------------------------
0764 Black Obsession 73:25 Zane Ent. 01-Jun-94
- ------------------------------------------------------------------------------
3454 Black On Black 73:18 Midnight Video 17-May-96
- ------------------------------------------------------------------------------
2628 Black On White #01 70:55 1991 Video Team 08-Sep-95
- ------------------------------------------------------------------------------
0048 Black On White #01 90:00
- ------------------------------------------------------------------------------
0049 Black On White Again 2 27:00
- ------------------------------------------------------------------------------
2212 Black Orchid 106:49 1993 Western Visuals 24-Apr-95
- ------------------------------------------------------------------------------
1507 Black Pepper #01 109:44 Pepper Prod. 04-Nov-94
- ------------------------------------------------------------------------------
1509 Black Pepper #02 111:24 1993 Pepper Prod. 04-Nov-94
- ------------------------------------------------------------------------------
1338 Black Satin Knights 75:15 1988 Dreamland Ent. 31-Oct-94
- ------------------------------------------------------------------------------
3017 Black Streets 69:35 1994 Legend 03-Jan-96
- ------------------------------------------------------------------------------
3705 Black Studs & Little
White Trash 74:01 1995 18-Jul-96
- ------------------------------------------------------------------------------
XXX Black Superstars 0 Coast-To-Coast 30-Aug-96
- ------------------------------------------------------------------------------
1188 Black Tie Affair 79:49 1993 Executive Vid. 09-Sep-94
- ------------------------------------------------------------------------------
1563 Black Valley Girls #02 79:57 1989 Dreamland Ent. 03-Jan-95
- ------------------------------------------------------------------------------
1593 Black Valley Girls I 76:01 1986 Dreamland Ent. 03-Jan-95
- ------------------------------------------------------------------------------
2384 Black Velvet 74:11 0 Coast To Coast 20-Jun-95
- ------------------------------------------------------------------------------
1036 Black Velvet #02 76:40 1989 Coast To Coast 12-Sep-94
- ------------------------------------------------------------------------------
2369 Black Velvet #03 85:16 1994 Coast To Coast 27-Jun-95
- ------------------------------------------------------------------------------
6605 Black Video Virgins
#01 106:51 1996 Plush Ent/New S 08-Jun-97
- ------------------------------------------------------------------------------
2884 Black Widow 68:52 1988 Western Visuals 03-Jan-96
- ------------------------------------------------------------------------------
1211 Black With Sugar 89:31 1989 Ebony & Ivory 05-Nov-94
- ------------------------------------------------------------------------------
2984 Blacks And Blondes:
The Movies 83:30 1989 Jelly Roll Compa 31-Jan-96
- ------------------------------------------------------------------------------
Page 15
<PAGE>
MASTER DATA BASE
- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
2685 Blazing Nova 64:25 1989 Las Vegas Video 18-Oct-95
- ------------------------------------------------------------------------------
3013 Blinded By Love 86:53 1993 Odyssey Group 02-Feb-96
- ------------------------------------------------------------------------------
2907 Blindfold 80:34 1995 Sin City 03-Jan-96
- ------------------------------------------------------------------------------
0989 Blonde Bombshell 79:33 1991 Coast To Coast 07-Oct-94
- ------------------------------------------------------------------------------
4697 Blonde Fantasy 79:17 1987 Coast To Coast 30-Aug-96
- ------------------------------------------------------------------------------
5393C Blonde Fire N/A 1979
- ------------------------------------------------------------------------------
0887 Blonde Forces 85:27 1991 Michael Craig Pr 28-Mar-95
- ------------------------------------------------------------------------------
2367 Blonde Forces #02 76:55 1994 Coast To Coast 13-Jul-95
- ------------------------------------------------------------------------------
1657 Blonde Heat 90:07 Night Magic Vide 20-Dec-94
- ------------------------------------------------------------------------------
1190 Blonde Ice #02 72:28 1993 Executive Vid. 09-Sep-94
- ------------------------------------------------------------------------------
4695 Blonde On Black 74:11 1985 Coast To Coast 30-Aug-96
- ------------------------------------------------------------------------------
0849 Blonde Riders 74:26 1991 Coast To Coast 06-May-94
- ------------------------------------------------------------------------------
1137 Blonde Savage 69:12 1991 Cinderella 07-Sep-94
- ------------------------------------------------------------------------------
1717 Blondes And Brunettes 70:53 1992 Plum Prod. 23-Sep-94
- ------------------------------------------------------------------------------
1743 Blondes And
Brunettes #02 77:28 1992 Plum Prod. 23-Sep-94
- ------------------------------------------------------------------------------
0753 Blow For Blow 82:32 1993 n 01-Jun-94
- ------------------------------------------------------------------------------
1168 Blow Job Baby 79:31 1994 Coast To Coast 22-Oct-94
- ------------------------------------------------------------------------------
6487 Blue Dreams 83:48 1996 Sin City 19-Jun-97
- ------------------------------------------------------------------------------
0940 Blue Review 88:11 1990 Cinderella 14-Sep-94
- ------------------------------------------------------------------------------
3741 Bobby Hollander's
Breast Worx #11 65:14 16-Jul-96
- ------------------------------------------------------------------------------
4786 Boddie Guard 89:13 1993 In-X-Cess Produc 17-Oct-96
- ------------------------------------------------------------------------------
0144 Bodies By Jackie 87:29 1985 Innovative Video 14-Jun-94
- ------------------------------------------------------------------------------
1562 Bodies In Heat 75:41 1983 Four Rivers Prod 24-Jan-95
- ------------------------------------------------------------------------------
1557 Bodies in Heat-
The Sequel 78:21 1989 Dreamland Ent. 24-Jan-95
- ------------------------------------------------------------------------------
3023 Body And Soul 79:51 1992 2-Feb-96
- ------------------------------------------------------------------------------
1999 Body English 68:32 1994 21-Feb-95
- ------------------------------------------------------------------------------
4730 Body Games 78:52 1987 CDI/Dreamland 07-Oct-96
- ------------------------------------------------------------------------------
0312 Body Heat 84:00
- ------------------------------------------------------------------------------
1339 Body Music 83:59 1989 Dreamland Ent. 31-Oct-94
- ------------------------------------------------------------------------------
4610 Body Music #02 78:18 1990 CDI/Dreamland 30-Aug-96
- ------------------------------------------------------------------------------
2230 Body of Innocence 84:32 1993 Wicked Pictures 24-Apr-95
- ------------------------------------------------------------------------------
2098 Body Rhythm 76:01 1991 Bad Girls 31-Jan-95
- ------------------------------------------------------------------------------
5020 Bodyguard 83:59 1994 Sin City Euro 19-Nov-96
- ------------------------------------------------------------------------------
3727 Bomb Squad 86:15 1994 07-Jul-96
- ------------------------------------------------------------------------------
3725 Bone Alone 86:31 1994 27-Jul-96
- ------------------------------------------------------------------------------
1796 Bone Heads 66:57 1992 05-Jan-95
- ------------------------------------------------------------------------------
1971 Bonfire Of The Panties 77:10 Coast To Coast 08-Feb-95
- ------------------------------------------------------------------------------
6161 Bonjour! A Deux Mains 70:47 Turbo 24-Feb-97
- ------------------------------------------------------------------------------
0121 Bonnie and Clyde #02 80:48
- ------------------------------------------------------------------------------
6254 Boob Acres 77:56 1996 Heatwave 04-Apr-97
- ------------------------------------------------------------------------------
1219 Boobs A Poppin' 78:30 1994 Totally Tastless 27-Sep-94
- ------------------------------------------------------------------------------
3720 Boobs to Kill For 83:03 1995 27-Jul-96
- ------------------------------------------------------------------------------
1457 Booby Guard 74:19 1993 Forbidden 03-Jan-95
- ------------------------------------------------------------------------------
3709 Booby Guard N/A 27-Jul-96
- ------------------------------------------------------------------------------
Page 16
<PAGE>
MASTER DATA BASE
- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
3469 Booby Prize 83:26 1995 Pepper Prod. 23-May-96
- ------------------------------------------------------------------------------
3171 Book Of Fantasy 88:25 1993 Dolly Buster/Dino 13-Mar-96
- ------------------------------------------------------------------------------
5141C Boom Boom Valdez 77:33 1995
- ------------------------------------------------------------------------------
0999 Boomer Anal 73:34 1990 Cinderella 12-Sep-94
- ------------------------------------------------------------------------------
3609 Booty Babaes 72:23 1994 02-Jul-96
- ------------------------------------------------------------------------------
3710 BootyHo 73:26 1993 18-Jul-96
- ------------------------------------------------------------------------------
2939 Booty Queen 72:19 1995 Rosebud 03-Jan-96
- ------------------------------------------------------------------------------
3748 Booty Sister 71:49 1994 27-Jul-96
- ------------------------------------------------------------------------------
3194 Bordello 76:38 0 Global Vision 04-Apr-96
- ------------------------------------------------------------------------------
3560 Born for Porn 74:01 1991 Fantazy Ent 25-Jul-96
- ------------------------------------------------------------------------------
4603 Borrowed Bodies 82:23 1995 Coast To Coast 30-Aug-96
- ------------------------------------------------------------------------------
4660 Bottoms Up 73:53 1993 Hollywood Video 30-Aug-96
- ------------------------------------------------------------------------------
3317 Bouncin' In The U.S.A. 83:17 1987 World Premiere 23-May-96
- ------------------------------------------------------------------------------
2125 Bourgeoises Le Jour
Putes Et Salopes 73:16 1994 Europix 10-Mar-95
- ------------------------------------------------------------------------------
2238 Bourree Campagnard 66:13 27-Mar-95
- ------------------------------------------------------------------------------
3323 Boys Are Us 79:50 1995 15-May-96
- ------------------------------------------------------------------------------
3728 Brain Surgeon 107:09 1993 27-Jul-96
- ------------------------------------------------------------------------------
0754 Brainteaser 73:21 1991 Zane Ent. 01-Jun-94
- ------------------------------------------------------------------------------
3629 Brassiere To Eternity 142:07 1994 02-Jul-96
- ------------------------------------------------------------------------------
2847 Brassiere To
Eternity #02 72:30 1994 Pepper Prod. 29-Nov-95
- ------------------------------------------------------------------------------
3246 Brat Pack 76:28 1989 23-Apr-96
- ------------------------------------------------------------------------------
0353 Breakfast With Tiffany 69:08 Hollywood Video 23-Sep-94
- ------------------------------------------------------------------------------
2550 Breakin' In 70:56 1986 Western Visuals 29-Sep-95
- ------------------------------------------------------------------------------
1097 Breast Friends 74:00 1990 08-Aug-94
- ------------------------------------------------------------------------------
3719 Breast Worx #0 86:40 1992 23-Jul-96
- ------------------------------------------------------------------------------
3747 Breast Worx #02 89:01 1991 27-Jul-96
- ------------------------------------------------------------------------------
3737 Breast Worx #03 86:35 27-Jul-96
- ------------------------------------------------------------------------------
3736 Breast Worx #04 78:21 0 27-Jul-96
- ------------------------------------------------------------------------------
3739 Breast Worx #05 83:21 1991 27-Jul-96
- ------------------------------------------------------------------------------
3738 Breast Worx #06 82:53 L.B.O. Ent.
- ------------------------------------------------------------------------------
3740 Breast Worx #07 73:11 27-Jul-96
- ------------------------------------------------------------------------------
3743 Breast Worx #08 71:15 1991 18-Jul-96
- ------------------------------------------------------------------------------
4383 Breast Worx #09 65:35 1991 26-Jul-96
- ------------------------------------------------------------------------------
3742 Breast Worx #10 62:48 03-Jul-96
- ------------------------------------------------------------------------------
3746 Breast Worx #12 68:31 1993 24-Jul-96
- ------------------------------------------------------------------------------
3745 Breast Worx #13 64:43 1995 LBO Ent. Group 31-Dec-95
- ------------------------------------------------------------------------------
3744 Breast Worx #14 69:35 1991 27-Jul-96
- ------------------------------------------------------------------------------
3750 Breast Worx #15 59:06 1992 24-Jul-96
- ------------------------------------------------------------------------------
3749 Breast Worx #40 62:45 1993 LBO Et. Group In 31-Dec-95
- ------------------------------------------------------------------------------
3092 Breastman's Ultimate
Orgy 105:22 1993 EVN 19-Jan-96
- ------------------------------------------------------------------------------
6060 Breathless 00:00 Western Visuals
- ------------------------------------------------------------------------------
4952 Bride & Groom Orgy 78:06 1995 Digital Media 05-Nov-96
- ------------------------------------------------------------------------------
5005C Bring On The Virgins 72:54 1989
- ------------------------------------------------------------------------------
6642 British Anal Invasion 79:57
- ------------------------------------------------------------------------------
Page 17
<PAGE>
MASTER DATA BASE
- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
3733 Broad of Directors 94:33 1993 27-Jul-96
- ------------------------------------------------------------------------------
0755 Bronco Millie 73;47 1992 Zane Ent. 01-Jun-94
- ------------------------------------------------------------------------------
1543 Brooke Does
College**Cppa 68:35
- ------------------------------------------------------------------------------
0662 Brother Act**CPPA 77:44
- ------------------------------------------------------------------------------
0573 Broutte Minou 71:30 0 Broute Minou 01-Jun-94
- ------------------------------------------------------------------------------
2039 Brunette Bombshells 69:28 1993 Video Team 02-Mar-95
- ------------------------------------------------------------------------------
1735 Brunettes #01 111:25 1993 Western Visuals 11-Jan-95
- ------------------------------------------------------------------------------
1702 Brunettes #02 114:34 1993 Western Visuals 20-Dec-94
- ------------------------------------------------------------------------------
3751 Bubble Butts #01 76:11 1992
- ------------------------------------------------------------------------------
3752 Bubble Butts #02 89:06 1993 23-Jul-96
- ------------------------------------------------------------------------------
4426 Bubble Butts #03 82:36 1992 25-Jul-96
- ------------------------------------------------------------------------------
3753 Bubble Butts #04 78:12 1992 27-Jul-96
- ------------------------------------------------------------------------------
3754 Bubble Butts #05 87:01 1992 27-Jul-96
- ------------------------------------------------------------------------------
3755 Bubble Butts #06 81:20 1992 07-Oct-96
- ------------------------------------------------------------------------------
3638 Bubble Butts #07 83:05 1992 02-Jul-96
- ------------------------------------------------------------------------------
3756 Bubble Butts #08 74:44 1992 27-Jul-96
- ------------------------------------------------------------------------------
3757 Bubble Butts #09 84:34 26-Jul-96
- ------------------------------------------------------------------------------
3734 Bubble Butts #10 88:46 0 16-Jul-96
- ------------------------------------------------------------------------------
2025 Bubbles 69:41 1992 Plum Prod. 08-Feb-95
- ------------------------------------------------------------------------------
4828 Buck Adam's Centrefold 68:10 1995 Sin City 20-Sep-96
- ------------------------------------------------------------------------------
3186 Buck Soup 72:32 1995 N/A 28-Mar-96
- ------------------------------------------------------------------------------
6522 Buffy The Vamp 86:55 1991 Fat Dog 01-May-97
- ------------------------------------------------------------------------------
1859 Buffy The Vampire Layer 86:55 1993 Fat Dog 20-Jan-95
- ------------------------------------------------------------------------------
5067 Buffy's Anal Adventure 70:30 1996 CDI 14-Jan-97
- ------------------------------------------------------------------------------
4330 Buffy's Bare Ass BBQ 68:39 1996 CDI 26-Jul-96
- ------------------------------------------------------------------------------
3610 Buffy's First Encounter 85:24 1996 02-Jul-96
- ------------------------------------------------------------------------------
4329 Buffy's New Boobs 72:37 1995 CDI 26-Jul-96
- ------------------------------------------------------------------------------
6077 Buffy's Nude
Camera Party 00:00 CDI
- ------------------------------------------------------------------------------
3703 Built for Sex 79:48 27-Jul-96
- ------------------------------------------------------------------------------
3033 Bulging Bellies 83:26 1995 Lipstik Video 31-Jan-96
- ------------------------------------------------------------------------------
6252 Bullet Proof Bra 81:48 1996 Cinderella 04-Apr-97
- ------------------------------------------------------------------------------
0103 Bung Ho Babes 71:00 Filmco Releasing 01-Jun-94
- ------------------------------------------------------------------------------
4557 Bunny Bleu's Gang
Bang Adventure 72:17 1994 23-Aug-96
- ------------------------------------------------------------------------------
4398 Bunz Eye 70:14 1992 26-Jul-96
- ------------------------------------------------------------------------------
2497 Burgundy Blues 88:55 1993 29-Sep-95
- ------------------------------------------------------------------------------
0925 Burn 67:14 1991 Legend Video 25-Aug-94
- ------------------------------------------------------------------------------
1119 Burning Desire 72:11 1993 Cinderella 07-Sep-94
- ------------------------------------------------------------------------------
1517 Bus Stop Tales #01 80:10 1989 4 Play Prod. 09-Sep-94
- ------------------------------------------------------------------------------
1516 Bus Stop Tales #02 73:27 4 Play Prod. 09-Sep-94
- ------------------------------------------------------------------------------
1515 Bus Stop Tales #03 80:00 1989 4 Play Prod. 09-Sep-94
- ------------------------------------------------------------------------------
1514 Bus Stop Tales #05 86:49 1989 4 Play Prod. 09-Sep-94
- ------------------------------------------------------------------------------
1513 Bus Stop Tales #06 79:53 4 Play Prod. 09-Sep-94
- ------------------------------------------------------------------------------
1512 Bus Stop Tales #07 85:49 1989 4 Play Prod. 09-Sep-94
- ------------------------------------------------------------------------------
0890 Bush League 80:43 Coast To Coast 30-Aug-94
- ------------------------------------------------------------------------------
Page 18
<PAGE>
MASTER DATA BASE
- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
0995 Bush League #02 77:58 1993 Coast To Coast 12-Sep-94
- ------------------------------------------------------------------------------
1535 Bush League #03 80:03 1992 Pearl Necklace V 28-Oct-94
- ------------------------------------------------------------------------------
1536 Bush League #24 81:33 1993 Pearl Necklace V 28-Oct-94
- ------------------------------------------------------------------------------
1526 Bush League #3 79:48 1993 Pearl Necklace V 28-Oct-94
- ------------------------------------------------------------------------------
3235 Bush Wackers 88:09 1989 Night Magic Vide 23-Apr-96
- ------------------------------------------------------------------------------
0756 Bushwacked 71:32 1991 Zane Ent. 01-Jun-94
- ------------------------------------------------------------------------------
3704 Bust-A-Move 76:23 27-Jul-96
- ------------------------------------------------------------------------------
5394C Busted 00:00 Caballero
- ------------------------------------------------------------------------------
3473 Bustline 83:07 1994 Legend Video 23-May-96
- ------------------------------------------------------------------------------
1675 But Can She Type? 78:55 1989 Cinderella 23-Feb-95
- ------------------------------------------------------------------------------
1387 Butt Bongo Bonanza 80:33 1990 Filmco 03-Jan-95
- ------------------------------------------------------------------------------
3732 Butt Hunt 67:55 1994 Bella Pictures 27-Jul-96
- ------------------------------------------------------------------------------
3702 Butt Lite -
"Queen Of Rears" 72:24 16-Jul-96
- ------------------------------------------------------------------------------
4514 Butt Love 0 0
- ------------------------------------------------------------------------------
2701 Butt Naked #02 77:01 1994 Odyssey 02-Nov-95
- ------------------------------------------------------------------------------
0046 Butt Packing Bimbos 119:30
- ------------------------------------------------------------------------------
3630 Butt Sisters Do
Cleveland 71:42 1995 02-Jul-96
- ------------------------------------------------------------------------------
3701 Butt Sisters Do Hawaii 88:55 1995 07-Oct-96
- ------------------------------------------------------------------------------
3701 Butt Sisters Do Hawaii 88:55 1995 23-Jul-96
- ------------------------------------------------------------------------------
3163 Butt Sisters do L.A. 80:30 1993 Midnight Video 25-Mar-96
- ------------------------------------------------------------------------------
3730 Butt Sisters Do
Las Vegas 88:02 1995 07-Oct-96
- ------------------------------------------------------------------------------
3731 Butt Sisters Do Seattle 77:49 1995 07-Oct-96
- ------------------------------------------------------------------------------
0746 Butt Sluts 74:48 1994 Rosebud Prod. 01-Jun-94
- ------------------------------------------------------------------------------
1076 Butt Sluts #02 72:50 Rosebud Girls 20-Oct-94
- ------------------------------------------------------------------------------
6052 Butt-nanza 89:12 1995 DBF Productions 28-Jan-97
- ------------------------------------------------------------------------------
4443 Buttjammers #02 85:48 Sin City 25-Jul-96
- ------------------------------------------------------------------------------
4742 Buttjammers #04 79:55 Sin City 24-Sep-96
- ------------------------------------------------------------------------------
4782 Buttjammers #05 77:25 1995 Sin City 17-Oct-96
- ------------------------------------------------------------------------------
4818 Buttman's Big Butt
Backdoor Babes 140:20 1995 Evil Angel/John L 07-Oct-96
- ------------------------------------------------------------------------------
4813 Buttman's Big Tit
Adventures #03 56:42 1995 Evil Angel 07-Oct-96
- ------------------------------------------------------------------------------
4588 Buttman's British Babes 134:29 1993 Evil Angel 23-Aug-96
- ------------------------------------------------------------------------------
4593 Buttman's British Big
Tits 140:05 1995 Evil Angel 23-Aug-96
- ------------------------------------------------------------------------------
4819 Buttman's European
Vacation #03 139:59 1995 Evil Angel/John L 07-Oct-96
- ------------------------------------------------------------------------------
4592 Buttman's Wet Dream 139:50 1995 Evil Angel 23-Aug-96
- ------------------------------------------------------------------------------
2028 Buttmans Paris Vacation 75:44 1993 21-Feb-95
- ------------------------------------------------------------------------------
0881 Buttnick Vacation 74:49 1992 Hole In One 14-Aug-94
- ------------------------------------------------------------------------------
0852 Buttnicks 66:28 1989 Hole In One 14-Aug-94
- ------------------------------------------------------------------------------
3298 Butts Motel #04 69:44 Executive 15-May-96
- ------------------------------------------------------------------------------
1217 Butts Motel #06 83:49 1994 Executive Vid. 27-Sep-94
- ------------------------------------------------------------------------------
3032 Buttslammers #06 -
Over The Edge 110:23 1994 Bruce Seven 31-Jan-96
- ------------------------------------------------------------------------------
2783 Buttwatch #02 77:45 1995 FHV/Sunshine 29-Nov-95
- ------------------------------------------------------------------------------
2893 Buttwoman 78:48 1990 FHV/Sunshine 19-Jan-96
- ------------------------------------------------------------------------------
2812 Buzzzz! 84:50 1993 Bedtime Theater 04-Jan-96
- ------------------------------------------------------------------------------
4925 C.H.P - Corn Hole Patrol 86:19 1996 Tight Ends Prod 14-Nov-96
- ------------------------------------------------------------------------------
Page 19
<PAGE>
MASTER DATA BASE
- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
5229 C.U.M.T.V. 00:00 Nitro
- ------------------------------------------------------------------------------
2088 Cab O Lay 85:33 1988 Pleasure Produc 30-Oct-95
- ------------------------------------------------------------------------------
0118 Cabaret Sin 96:04 1987 Phillip O'Toole 14-Jun-94
- ------------------------------------------------------------------------------
5269 Cable Girl 77:47 1996 Nitro 08-Jan-97
- ------------------------------------------------------------------------------
1902 Cadillac And Devell 74:12 1993 Zane Ent. 23-Feb-95
- ------------------------------------------------------------------------------
2191 Cafe Der Lust 82:08 1992 27-Mar-95
- ------------------------------------------------------------------------------
3208 Cafe Life 77:27 1994 Zane Ent. 13-Mar-96
- ------------------------------------------------------------------------------
1259 Caged Fury 82:24 Dreamland Ent. 27-Oct-94
- ------------------------------------------------------------------------------
3765 Cajun Heat 77:25 1993 24-Jul-96
- ------------------------------------------------------------------------------
4357 California Asians 72:58 EVN (CDI) 26-Jul-96
- ------------------------------------------------------------------------------
3565 California Bikini Girls 112:33 Odyssey Group 25-Jul-96
- ------------------------------------------------------------------------------
3587 California Blondes #03 115:59 1990 Odyssey Group 25-Jul-96
- ------------------------------------------------------------------------------
6637 California Face Cream
Specialists 80:01 1994 Ona Zee 25-Jul-97
- ------------------------------------------------------------------------------
3520 California Girls 114:50
- ------------------------------------------------------------------------------
3605 California Girls #02 112:14 Odyssey Group 25-Jul-96
- ------------------------------------------------------------------------------
4581 California Girls #03 117:17 1987 23-Aug-96
- ------------------------------------------------------------------------------
4351 California Legs #01 84:07 1993 Fantazy Ent 26-Jul-96
- ------------------------------------------------------------------------------
3588 California Legs
#02**CPPA 85:52 1994
- ------------------------------------------------------------------------------
3567 California Pady Girls 111:19 Odyssey Group 25-Jul-96
- ------------------------------------------------------------------------------
2447 California Reaming 63:01 1988 Western Visuals 28-Aug-95
- ------------------------------------------------------------------------------
4811 California Valley
Girls**CPPA 87:45 1993 Hollywood Video 17-Oct-96
- ------------------------------------------------------------------------------
6207 Calvin's Cheap Thrills 71:03 1996 Al Borda Video 04-Apr-97
- ------------------------------------------------------------------------------
6670 Calvin's Cheap Thrills
#3 72:55 1997 ABV-USA 03-Sep-97
- ------------------------------------------------------------------------------
2403 Cambio De Parejas 49:04 1994 Kitsch Productio 29-Jun-95
- ------------------------------------------------------------------------------
1455 Camera Shy 76:21 1993 Forbidden 03-Jan-95
- ------------------------------------------------------------------------------
2357 Campus Capers 80:50 1982 Mialmi Productio 04-Jul-95
- ------------------------------------------------------------------------------
3050 Can't Get Enough -
Girls Of Holland #0 61:07 1992 New Sensations 05-Feb-96
- ------------------------------------------------------------------------------
4519 Candy Factory 81:29 1995 01-Aug-96
- ------------------------------------------------------------------------------
2807 Candy Snackers 75:16 1993 Vidmax 29-Nov-95
- ------------------------------------------------------------------------------
3150 Candy Stripers 73:41 1978 Arrow 17-Nov-95
- ------------------------------------------------------------------------------
3152 Candy Stripers #02 80:31 Arrow 17-Nov-95
- ------------------------------------------------------------------------------
1070 Cannes Connection 83:08 1990
- ------------------------------------------------------------------------------
1863 Cannes Heat 85:35 1994 Fat Dog 20-Jan-95
- ------------------------------------------------------------------------------
2389 Cape Lere 73:09 1992 Coast To Coast 20-Jun-95
- ------------------------------------------------------------------------------
1428 Cape Rear 83:21 1992 Western Visuals 21-Nov-94
- ------------------------------------------------------------------------------
5166 Capetown #1 141:33 1996 Private Media Gr 08-Apr-97
- ------------------------------------------------------------------------------
5167 Capetown #2 146:25 1996 Private Media Gr 03-Mar-97
- ------------------------------------------------------------------------------
2194 Capri Vacation 88:00 1992
- ------------------------------------------------------------------------------
1054 Captain Butt's Beach 90:27 1993 Hustler 35mm. 20-Oct-94
- ------------------------------------------------------------------------------
6612 Career Girls 83:43 1996 Outlaw Productio 19-Jun-97
- ------------------------------------------------------------------------------
XXX Career Girls 0
- ------------------------------------------------------------------------------
3760 Careless 114:31 1993 16-Jul-96
- ------------------------------------------------------------------------------
2975 Carenna - Star On
The Rise 66:32 1988 Western Visuals 31-Jan-96
- ------------------------------------------------------------------------------
2606 Carlito's Backway 82:48 1993 Odyssey Group 08-Sep-95
- ------------------------------------------------------------------------------
Page 20
<PAGE>
MASTER DATA BASE
- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
1960 Carnal College 81:36 1987
- ------------------------------------------------------------------------------
6272 Carnal Garden 71:49 1996 Klimaxx Producti 06-Jun-97
- ------------------------------------------------------------------------------
3598 Carnal Invasion 77:24 1996 Nitro 25-Jul-96
- ------------------------------------------------------------------------------
4316 Carnival 81:31 1995 CDI/S.Canterbur 25-Jul-96
- ------------------------------------------------------------------------------
5268 Carnival Of Flesh 78:32 1996 Nitro 08-Jan-97
- ------------------------------------------------------------------------------
2189 Carnival Of Knowledge 72:02 1992 Wicked Pictures 24-Apr-95
- ------------------------------------------------------------------------------
4321 Carol Cummings Show 74:55 24-Jul-96
- ------------------------------------------------------------------------------
3601 Carol Cums Again 72:33 1988 Fantazy Ent 25-Jul-96
- ------------------------------------------------------------------------------
1574 Casting 82:50 Dolly Buster Ent. 09-Dec-94
- ------------------------------------------------------------------------------
2571 Casting Call #02 102:51 1993
- ------------------------------------------------------------------------------
2493 Casting Call #03 110:10 1993 Filmwest Produc 22-Aug-95
- ------------------------------------------------------------------------------
2426 Casting Call #04 113:20 1993 Soho/Filmwest 23-Aug-95
- ------------------------------------------------------------------------------
2327 Casting de Salope 67:18 Charnel 01-May-95
- ------------------------------------------------------------------------------
5155C Casual Lies 75:54 1992
- ------------------------------------------------------------------------------
2772 Cat And Ermine 54:53 11-Dec-95
- ------------------------------------------------------------------------------
1025 Cat And Mouse 82:37 1992 07-Oct-94
- ------------------------------------------------------------------------------
2134 Cat And Mouse #02 79:00 1993 01-May-95
- ------------------------------------------------------------------------------
3557 Cat Scratch Fever 76:15 1988 Fantazy Ent 25-Jul-96
- ------------------------------------------------------------------------------
3481 Cat Walk 86:53 1994 Sin City 24-May-96
- ------------------------------------------------------------------------------
0674 Catalina Five-O 66:58 1991 Cinderella 01-Aug-94
- ------------------------------------------------------------------------------
0675 Catalina Five-O #02 69:46 1991 Cinderella 01-Aug-94
- ------------------------------------------------------------------------------
1294 Catalina Five-O -
Undercover 79:50 1991 Cinderella 17-Nov-94
- ------------------------------------------------------------------------------
1616 Catalina Five-O
Sabotage 69:41 1991 Cinderella 19-Dec-94
- ------------------------------------------------------------------------------
1088 Catburgler - aka -
Freakout 79:26 1992 Pleasure Produc 07-Sep-94
- ------------------------------------------------------------------------------
6083 Catwalk #02 72:16 1996 Sin City 10-Feb-97
- ------------------------------------------------------------------------------
1198 Caught By Surprize 76:06 Cinderella 05-Nov-94
- ------------------------------------------------------------------------------
3536 Caught From Behind #02 85:08 1984 Hollywood Video 24-Sep-96
- ------------------------------------------------------------------------------
3539 Caught From Behind #03 83:02 1985 Hollywood Video 24-Sep-96
- ------------------------------------------------------------------------------
3503 Caught From Behind #04 113:14 Hollywood Video 24-Sep-96
- ------------------------------------------------------------------------------
3538 Caught From Behind #05 83:19 1986 Hollywood Video 24-Sep-96
- ------------------------------------------------------------------------------
3501 Caught From Behind #07 80:56 1987 Hollywood Video 07-Oct-96
- ------------------------------------------------------------------------------
3537 Caught From Behind #08 82:57 1988 Hollywood Video 24-Sep-96
- ------------------------------------------------------------------------------
3502 Caught From Behind #09 77:29 1988 Hollywood Video 07-Oct-96
- ------------------------------------------------------------------------------
4456 Caught From Behind #10 83:11 1989 Hollywood Video 25-Jul-96
- ------------------------------------------------------------------------------
4455 Caught From Behind #11 84:28 1990 Hollywood Video 25-Jul-96
- ------------------------------------------------------------------------------
4466 Caught From Behind #12 84:34 1989 Hollywood Video 23-Sep-96
- ------------------------------------------------------------------------------
4469 Caught From Behind #13 80:39 1990 Hollywood Video 23-Sep-96
- ------------------------------------------------------------------------------
4589 Caught From Behind #14 81:18 1991 Hollywood Video 23-Aug-96
- ------------------------------------------------------------------------------
4470 Caught From Behind #15 78:55 1991 Hollywood Video 23-Sep-96
- ------------------------------------------------------------------------------
4468 Caught From Behind #16 81:12 1992 Hollywood Video 23-Sep-96
- ------------------------------------------------------------------------------
4467 Caught From Behind #17 79:07 1993 Hollywood Video 23-Sep-96
- ------------------------------------------------------------------------------
3761 Caught From Behind #18 82:02 1995 Hollywood Video 16-Jul-96
- ------------------------------------------------------------------------------
3759 Caught From Behind #19 82:50 1994 Hollywood Video 03-Jul-96
- ------------------------------------------------------------------------------
3758 Caught From Behind #20 72:22 1994 Hollywood Video 03-Jul-96
- ------------------------------------------------------------------------------
Page 21
<PAGE>
MASTER DATA BASE
- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
3500 Caught From Behind #6 84:50 1986 Hollywood Video 19-Aug-97
- ------------------------------------------------------------------------------
1277 Caught In The
Middle**CPPA 90:29
- ------------------------------------------------------------------------------
4691 Caught Looking 86:53 1995 Coast To Coast 30-Aug-96
- ------------------------------------------------------------------------------
CV14 Celebrity Sinners 175:03 XTC Com 20-Sep-95
- ------------------------------------------------------------------------------
6570 Celles Par qui Le
Foutre Arrive 83:48 1996 M.S.T/Turbo Film 02-Jun-97
- ------------------------------------------------------------------------------
3764 Certifiabley Anal 71:21 1994 27-Jul-96
- ------------------------------------------------------------------------------
5214 CH69 - Channel 69 #1 86:37 1996 Coast To Coast 08-Jan-97
- ------------------------------------------------------------------------------
5215 CH69 - Channel 69 #11 72:31 1996 Hole In One Vide 08-Jan-97
- ------------------------------------------------------------------------------
4748 Chained 82:09 1995 Sin City 20-Sep-96
- ------------------------------------------------------------------------------
2276 Chaleu d'Ete 103:51
- ------------------------------------------------------------------------------
3236 Chaleurs Lesbiannes 53:23 1994 Crescendo 02-May-96
- ------------------------------------------------------------------------------
3593 Changing Partners 72:16 1989 Fantazy Ent 25-Jul-96
- ------------------------------------------------------------------------------
2050 Charlie's Girls #01 88:11 0 Coast To Coast 18-Feb-95
- ------------------------------------------------------------------------------
2363 Charlie's Girls #02 87:07 Coast To Coast 27-Jun-95
- ------------------------------------------------------------------------------
1126 Charlie's Girls #03 73:41 Coast To Coast 28-Oct-94
- ------------------------------------------------------------------------------
1631 Charm School 84:03 1993 Jalapeno Pepper 19-Dec-94
- ------------------------------------------------------------------------------
2535 Chasey Revealed 86:42 1994 Wicked Pictures 30-Aug-95
- ------------------------------------------------------------------------------
6244 Chateau Duval 106:18 1995 Klimaxxx/Helen 30-May-97
- ------------------------------------------------------------------------------
6673 Chateau Duval Memories
#2 102:59 1996 Duval Enterprise 14-Aug-97
- ------------------------------------------------------------------------------
2508 Cheatin' 87:43 1994 Fat Dog 30-Aug-95
- ------------------------------------------------------------------------------
2880 Cheating American Style 79:44 1988 Western Visuals 03-Jan-96
- ------------------------------------------------------------------------------
0688 Checkmate 71:30 1992 Cinderella 01-Aug-94
- ------------------------------------------------------------------------------
2684 Cheek A Boo 72:46 1988 Las Vegas Video 18-Oct-95
- ------------------------------------------------------------------------------
6514 Cheek Mates 93:53 1996 Snatch Prod. 28-Apr-97
- ------------------------------------------------------------------------------
4604 Cheeks 78:48 1988 Coast To Coast 30-Aug-96
- ------------------------------------------------------------------------------
2396 Cheeks #02 - The Bitter
End 109:55 1989 Coast To Coast 27-Jun-95
- ------------------------------------------------------------------------------
2081 Cheeks #03 78:49 1992 Coast To Coast 08-Feb-95
- ------------------------------------------------------------------------------
2364 Cheeks #04 - A
Backstreet Affair 79:33 1990 Coast To Coast 27-Jun-95
- ------------------------------------------------------------------------------
1967 Cheeks #05 - Cop A Feel 89:40 1991 Coast To Coast 08-Feb-95
- ------------------------------------------------------------------------------
2397 Cheeks #06 83:49 1991
- ------------------------------------------------------------------------------
1167 Cheeks #07 - Mirror
Image 88:01 1992 Coast To Coast 22-Oct-94
- ------------------------------------------------------------------------------
4692 Cheeks #08 80:03 1995 Coast To Coast 30-Aug-96
- ------------------------------------------------------------------------------
4605 Chemical Reaction 78:19 1995 Coast To Coast 30-Aug-96
- ------------------------------------------------------------------------------
0986 Cheri Taylor Is Tasty
And Tight 87:58 N/A 07-Oct-94
- ------------------------------------------------------------------------------
6617 Cherry Busters 68:56 1995 Digital Media 26-Jun-97
- ------------------------------------------------------------------------------
0711 Cherry Pepper #03 111:38 Pepper Prod. 01-Jun-94
- ------------------------------------------------------------------------------
0709 Cherry Pepper Shemales 115:04 1993 Pepper Prod. 01-Jun-94
- ------------------------------------------------------------------------------
3009 Cherry Pie 75:58 1994 Sin City 02-Feb-96
- ------------------------------------------------------------------------------
5384C China Cat 00:00
- ------------------------------------------------------------------------------
3766 Chinatown 84:01 1994 27-Jul-96
- ------------------------------------------------------------------------------
5099 Chocoholics 119:44 1996 Al Borda Video 29-Nov-96
- ------------------------------------------------------------------------------
2476 Chocolate Bon Bons 80:53 1985 08-Sep-95
- ------------------------------------------------------------------------------
2066 Chocolate Cherries #02 72:24 1990 Hole In One Vid. 08-Feb-95
- ------------------------------------------------------------------------------
4649 Chocolate Delights #02 83:45 30-Aug-96
- ------------------------------------------------------------------------------
Page 22
<PAGE>
MASTER DATA BASE
- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
1155 Chocolate Kiss I 115:00 Down & Dirty Vid 07-Sep-94
- ------------------------------------------------------------------------------
0370 Christa 75:25 Cinevog Prod. 11-Oct-94
- ------------------------------------------------------------------------------
2980 Christine's Secret**
Only Air In Sojour 63:35 1985 Femme 01-May-96
- ------------------------------------------------------------------------------
3569 Christy Canyon VS.
Ginger Lynn - The 109:51 Odyssey Group 25-Jul-96
- ------------------------------------------------------------------------------
1361 Chuck And Di In Heat 65:00 1986 Dreamland Ent. 31-Oct-94
- ------------------------------------------------------------------------------
2034 Chug A Lug Girls #02 70:48 1993 Video Team 10-Mar-95
- ------------------------------------------------------------------------------
4639 Chug-A-Lug Girls 72:42 1993 CDI/Video Team 30-Aug-96
- ------------------------------------------------------------------------------
4671 Chug-A-Lug Girls #03 87:58 1993 CDI/Video Team 04-Sep-96
- ------------------------------------------------------------------------------
4668 Chug-A-Lug Girls #05 66:25 1995 CDI/Video Team 04-Sep-96
- ------------------------------------------------------------------------------
4669 Chug-A-Lug Girls #06 82:56 1995 CDI/Video Team 04-Sep-96
- ------------------------------------------------------------------------------
2577 CineSex #01 75:40 1995 Cal Vista 29-Sep-95
- ------------------------------------------------------------------------------
0912 City Of Sin 86:55 1991 Las Vegas Video 25-Aug-94
- ------------------------------------------------------------------------------
2539 Clark Gallery 86:08 1990 Clark Entertainm 30-Aug-95
- ------------------------------------------------------------------------------
1098 Class Ass 73:01 1993 08-Aug-94
- ------------------------------------------------------------------------------
1760 Classic Clips 80:45 1988 Plum Prod. 08-Feb-95
- ------------------------------------------------------------------------------
3767 Clean Shaven 85:33 1995 27-Jul-96
- ------------------------------------------------------------------------------
2462 Cliff Banger 68:30 1993 Heatwave Ented 22-Aug-95
- ------------------------------------------------------------------------------
4622 Climax 2000 88:41 1994 Coast To Coast 30-Aug-96
- ------------------------------------------------------------------------------
4638 Climax 2000 - #02 88:59 1994 Coast To Coast 30-Aug-96
- ------------------------------------------------------------------------------
2631 Close Friends 76:39 1994 Coast To Coast 15-Sep-95
- ------------------------------------------------------------------------------
0741 Club Anal 70:00 1993 Rosebud Prod. 01-Jun-94
- ------------------------------------------------------------------------------
2934 Club Anal 2 70:15 1993 03-Jan-96
- ------------------------------------------------------------------------------
3768 Club DV8 #01 77:40 1993 27-Jul-96
- ------------------------------------------------------------------------------
3769 Club DV8 #02 74:31 1993 27-Jul-96
- ------------------------------------------------------------------------------
2650 Club Exotica 76:07 1986 Western Visuals 02-Nov-95
- ------------------------------------------------------------------------------
4555 Club Kiss 89:09 1995 Ona Zee Prod. 23-Aug-96
- ------------------------------------------------------------------------------
6151 Club P 64:59 0 Turbo Films 10-Feb-97
- ------------------------------------------------------------------------------
1422 Coat My Throat With Cum 97:44 1993 Zane Ent. 25-Nov-94
- ------------------------------------------------------------------------------
1053 Cockateer #02 76:57 1990 Legend Video 20-Oct-94
- ------------------------------------------------------------------------------
5022 Cockpit 75:54 1996 Sin City 19-Nov-96
- ------------------------------------------------------------------------------
0323 Cocktails 75:21 1990 Hollywood Video 14-Jun-94
- ------------------------------------------------------------------------------
3563 Coed Cuties 115:29 Odyssey Group 28-Jun-96
- ------------------------------------------------------------------------------
3583 Coed Cuties Vol. #02 110:54 Odyssey Group 26-Jul-96
- ------------------------------------------------------------------------------
1767 Coffee, Tea Or Me 80:20 1987 Night Magic 09-Dec-94
- ------------------------------------------------------------------------------
1044 Collectible 64:00 1993 Legend's 20-Oct-94
- ------------------------------------------------------------------------------
1142 Color Me White 105:52 1991 Zane Ent. 07-Sep-94
- ------------------------------------------------------------------------------
3061 Colossal Orgy #02 66:56 1994 Heat Wave Ent. 02-Feb-96
- ------------------------------------------------------------------------------
1144 Come In My Mouth #03 116:32 Zane Ent. 07-Sep-94
- ------------------------------------------------------------------------------
2076 Come Rain Come Shine 75:50 1988 Cinderella 23-Feb-95
- ------------------------------------------------------------------------------
2499 Comeline 69:17 1993 Midnight Video 30-Aug-95
- ------------------------------------------------------------------------------
5086 Comin' Around The
Mountain 0 Plush Ent./Blue C 08-Jan-97
- ------------------------------------------------------------------------------
3770 Coming Alive 72:33 27-Jul-96
- ------------------------------------------------------------------------------
6282C Coming In Style 0
- ------------------------------------------------------------------------------
5375C Coming Of Age 00:00
- ------------------------------------------------------------------------------
Page 23
<PAGE>
MASTER DATA BASE
- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
2791 Coming On America 84:43 1988 29-Nov-95
- ------------------------------------------------------------------------------
0590 Coming Together 74:31 Caballero Home 01-Jun-94
- ------------------------------------------------------------------------------
1336 Command Performance -
Chorusline 79:44 1988 Dreamland Ent. 31-Oct-94
- ------------------------------------------------------------------------------
1045 Committed 68:43 1992 Legend Video 20-Oct-94
- ------------------------------------------------------------------------------
1566 Confessions Of A
Chauffeur 71:50 1990 Dreamland Ent. 03-Jan-95
- ------------------------------------------------------------------------------
6517 Controlled 75:53 Paul Norman Pro 28-Apr-97
- ------------------------------------------------------------------------------
3774 Cool Sheets 76:47 1989 27-Jul-96
- ------------------------------------------------------------------------------
3180 Cooler Girls 69:54 Midnight 25-Mar-96
- ------------------------------------------------------------------------------
5217 Coporate Affairs 00:00 N/A
- ------------------------------------------------------------------------------
2468 Corporate Bi - Out 77:49 1994 Bi-Line 30-Aug-95
- ------------------------------------------------------------------------------
4927 Corporate Justice 83:17 1996 Tight Ends Prod. 14-Nov-96
- ------------------------------------------------------------------------------
6495 Corrupt Secrets 72:22 1995 Digital Media Grp 06-May-97
- ------------------------------------------------------------------------------
0984 Corruption 80:42 1983 Coast To Coast 07-Oct-94
- ------------------------------------------------------------------------------
2661 Corruption Of Christina 77:08 1993 Wicked Pictures 05-Oct-95
- ------------------------------------------------------------------------------
1578 Couilles Pleines Pour
Jeunes Pompeus 68:44 1992 Europix 18-Nov-94
- ------------------------------------------------------------------------------
3762 County Line 119:23 1993 03-Jul-96
- ------------------------------------------------------------------------------
0583 Couple Enflames 72:30 n 01-Jun-94
- ------------------------------------------------------------------------------
2321 Couples In Heat 58:15 1992 Global 24-Apr-96
- ------------------------------------------------------------------------------
1258 Cover Girl 83:19 1994 Wicked Pictures 27-Oct-94
- ------------------------------------------------------------------------------
3482 Cover To Cover 82:40 1995 Wicked Pictures 28-May-96
- ------------------------------------------------------------------------------
4975 Crack Attack 80:07 1996 Plush Ent. 13-Nov-96
- ------------------------------------------------------------------------------
6190 Crackster 80:15 1996 Outlaw Productio 21-Feb-97
- ------------------------------------------------------------------------------
1161 Crank My Cunt 112:34 Zane Ent. 07-Sep-94
- ------------------------------------------------------------------------------
2589 Crazy With The Heat #01 78:06 1986 Night Magic 08-Sep-95
- ------------------------------------------------------------------------------
2250 Crazy WiTh The Heat #02 73:38 1993 Cal Vista 24-May-95
- ------------------------------------------------------------------------------
2350 Crazy With The Heat #03 73:10 1994 Metro Home Vide 27-Jun-95
- ------------------------------------------------------------------------------
3773 Cream 85:48 1994 27-Jul-96
- ------------------------------------------------------------------------------
0782 Cream Dream 73:48 1991 Zane Ent. 01-Jun-94
- ------------------------------------------------------------------------------
4442 Cream Rinse 82:24 1995 Sin City 25-Jul-96
- ------------------------------------------------------------------------------
3550 Creatures Of The Night 87:49 1990 Fantazy Ent 11-Jul-96
- ------------------------------------------------------------------------------
6093 Creme De La Face 00:00 Odyssey Group
- ------------------------------------------------------------------------------
2727 Creme De La Face #01 115:09 1994 Odyssey 30-Sep-95
- ------------------------------------------------------------------------------
4533 Creme De La Face #02 112:00 1994 Odyssey 23-Aug-96
- ------------------------------------------------------------------------------
6249 Creme De La Face #03 114:43 Rodneyvision 04-Apr-97
- ------------------------------------------------------------------------------
4534 Creme De La Face #04 116:05 1994 Odyssey 23-Aug-96
- ------------------------------------------------------------------------------
2737 Creme De La Face #05 117:34 1995 Odyssey 05-Oct-95
- ------------------------------------------------------------------------------
2738 Creme De La Face #06 109:42 1995 Odyssey 05-Oct-95
- ------------------------------------------------------------------------------
2739 Creme De La Face #07 115:12 1995 Odyssey 05-Oct-95
- ------------------------------------------------------------------------------
5076 Creme De La Face #08 114:00 Odyssey Group 29-Nov-96
- ------------------------------------------------------------------------------
5025 Creme De La Face #09 116:55 1995 Odyssey Group 19-Nov-96
- ------------------------------------------------------------------------------
5088 Creme De La Face #10 117:03 1995 Odyssey Group 30-Dec-96
- ------------------------------------------------------------------------------
6114 Creme De La Face #11 115:48 1996 Odyssey 24-Feb-97
- ------------------------------------------------------------------------------
6115 Creme De La Face #12 115:57 1996 Odyssey 24-Feb-97
- ------------------------------------------------------------------------------
6116 Creme De La Face #14 116:12 1996 Odyssey 24-Feb-97
- ------------------------------------------------------------------------------
Page 24
<PAGE>
MASTER DATA BASE
- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
6117 Creme De La Face #15 116:15 1996 Odyssey 24-Feb-97
- ------------------------------------------------------------------------------
2728 Creme De La Face 3 114:58 30-Sep-95
- ------------------------------------------------------------------------------
1692 Crimson Kiss 83:38 1993 Western Visuals 20-Dec-94
- ------------------------------------------------------------------------------
6255 Crimson Thighs 79:17 1995 Heatwave 03-Apr-97
- ------------------------------------------------------------------------------
1587 Crystal Balls 69:00 1986 Four Rivers Inc. 03-Jan-95
- ------------------------------------------------------------------------------
2123 Culs Farcis 80:39 High Class 10-Mar-95
- ------------------------------------------------------------------------------
4427 Cum For Dinner 112:39 1995 25-Jul-96
- ------------------------------------------------------------------------------
3575 Cum For Me Carol 72:45 1989 Fantazy Ent 25-Jul-96
- ------------------------------------------------------------------------------
0770 Cum In My Mouth 116:01 Zane Ent. 01-Jun-94
- ------------------------------------------------------------------------------
1159 Cum Loving Nurses 113:35 Zane Ent. 07-Sep-94
- ------------------------------------------------------------------------------
6616 Cum Quarts 86:25 1996 Plush Ent./Blue C 26-Jun-97
- ------------------------------------------------------------------------------
3542 Cum Rain, Cum Shine 70:10 Fantazy Ent 25-Jul-96
- ------------------------------------------------------------------------------
4943 Cum Soaked and Loaded 75:07 Plush EntBlue C 05-Nov-96
- ------------------------------------------------------------------------------
0058 Cum Splattered Sluts 0
- ------------------------------------------------------------------------------
0302 Cum To Dinner 76:00 Hollywood Video 14-Jun-94
- ------------------------------------------------------------------------------
3771 Cum To Drink Of It 127:47
- ------------------------------------------------------------------------------
2729 Cumm Brothers #01 103:17 1995 Odyssey Entertai 30-Sep-95
- ------------------------------------------------------------------------------
4535 Cumm Brothers #02 115:48 1994 23-Aug-96
- ------------------------------------------------------------------------------
2731 Cumm Brothers #03 118:21 1995 Odyssey 05-Oct-95
- ------------------------------------------------------------------------------
2730 Cumm Brothers #04 116:08 1995 Odyssey Entertai 30-Sep-95
- ------------------------------------------------------------------------------
2733 Cumm Brothers #05 113:15 1995 Odyssey 05-Oct-95
- ------------------------------------------------------------------------------
2734 Cumm Brothers #06 113:29 1995 Odyssey 05-Oct-95
- ------------------------------------------------------------------------------
2735 Cumm Brothers #07 112:33 1994 Odyssey 05-Oct-95
- ------------------------------------------------------------------------------
2736 Cumm Brothers #08 118:17
- ------------------------------------------------------------------------------
6127 Cumm Brothers #13 114:15 n 20-Feb-97
- ------------------------------------------------------------------------------
6128 Cumm Brothers #14 115:05 1995 N/A 20-Feb-97
- ------------------------------------------------------------------------------
6134 Cumm Brothers #15 116:40 n 10-Feb-97
- ------------------------------------------------------------------------------
5089 Cumm Brothers. #09 117:47 1995 Odyssey Group 30-Dec-96
- ------------------------------------------------------------------------------
5090 Cumm Brothers. #10 117:03 1995 Odyssey Group 30-Dec-96
- ------------------------------------------------------------------------------
6634 Cumm Bunnies 85:11 1996 Plush Ent./Blue C 25-Jul-97
- ------------------------------------------------------------------------------
3582 Cumming of Age Vol. 3 112:03
- ------------------------------------------------------------------------------
1226 Cumsuckers #01 115:12 Plum Prod. 27-Oct-94
- ------------------------------------------------------------------------------
1376 Cumsuckers #02 113:00 Plum Prod. 27-Oct-94
- ------------------------------------------------------------------------------
4452 Cunt Hunt 60:00 1994 Bella Pictures 25-Jul-96
- ------------------------------------------------------------------------------
1046 Curious 71:11 1992 Legend Video 20-Oct-94
- ------------------------------------------------------------------------------
3326 Cyndi's Offre A Toi -
Cindy Puts Out- 77:04 15-May-96
- ------------------------------------------------------------------------------
1027 Cyrano 64:32 1991
- ------------------------------------------------------------------------------
5262 D.P.#05 00:00
- ------------------------------------------------------------------------------
5262 D.P.#5 00:00 Western Visuals
- ------------------------------------------------------------------------------
6069C D.P. Eurosluts #02 00:00 N/A
- ------------------------------------------------------------------------------
6067C D.P. Eurosluts #03 00:00 N/A
- ------------------------------------------------------------------------------
2825 Da Butt Thang 71:10 1994 Heatwave Entert 29-Nov-95
- ------------------------------------------------------------------------------
4807 Daddy Doesn't Know 81:16 1984 03-Sep-97
- ------------------------------------------------------------------------------
6090 Dale's House Of Anal 117:07 Notorious Pictur 20-Feb-97
- ------------------------------------------------------------------------------
Page 25
<PAGE>
MASTER DATA BASE
- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
3807 Dance Naked 86:08 1995 27-Jul-96
- ------------------------------------------------------------------------------
0878 Dances With Foxes 71:11 1991 n 14-Aug-94
- ------------------------------------------------------------------------------
6525 Dangerous 90:50 1996 Snatch Prod. 06-May-97
- ------------------------------------------------------------------------------
0036 Dangerous Desire 70:28 1986 Now Showing 14-Jun-94
- ------------------------------------------------------------------------------
6636 Dangerous Pleasure 81:45 1995 Digital Media Gro 25-Jul-97
- ------------------------------------------------------------------------------
0935 Danielles Dirty Deeds 78:33 Hole In One 14-Sep-94
- ------------------------------------------------------------------------------
1687 Dare Devil 73:54 1989 Cinderella 19-Dec-94
- ------------------------------------------------------------------------------
3576 Dare Devil 73:54 1993 Fantazy Ent 17-Jul-96
- ------------------------------------------------------------------------------
1544 Dark Angel 60:11 1985 Magic Night Vide 21-Nov-94
- ------------------------------------------------------------------------------
1427 Dark Dreams 83:15 1992 Western Visuals 21-Nov-94
- ------------------------------------------------------------------------------
0758 Dark Justice 74:38 1992 Zane Ent. 01-Jun-94
- ------------------------------------------------------------------------------
1774 Dark Obsession 75:46 1993 Western Visuals 03-Jan-95
- ------------------------------------------------------------------------------
1028 Darker Side Of Shayla 73:07 1993 Paul Norman 07-Oct-94
- ------------------------------------------------------------------------------
1029 Darker Side Of Shayla
#02 77:07 1993 Paul Norman 07-Oct-94
- ------------------------------------------------------------------------------
3559 Date with The Devil 73:26 1991 Fantazy Ent 25-Jul-96
- ------------------------------------------------------------------------------
2495 Daydreams 74:39 1993 29-Sep-95
- ------------------------------------------------------------------------------
1996 Dead Aim 89:07 1994 Bell Pepper 08-Feb-95
- ------------------------------------------------------------------------------
4567 Deadly Sin 84:59 1995 Ona Zee Prod. 23-Aug-96
- ------------------------------------------------------------------------------
0759 Dear Brigitte 76:00 Zane Ent. 01-Jun-94
- ------------------------------------------------------------------------------
2658 Dear Diary 86:32 1995 Wicked Pictures 05-Oct-95
- ------------------------------------------------------------------------------
5388C Dear Pam 00:00
- ------------------------------------------------------------------------------
3241 Deb's Real Deal 92:54 1994 Lorreta Sterling 06-May-96
- ------------------------------------------------------------------------------
4629 Debbie - Class Of '89 77:22 1989 Coast To Coast 30-Aug-96
- ------------------------------------------------------------------------------
4625 Debbie - Class Of '95 81:50 1995 Coast-To-Coast 30-Aug-96
- ------------------------------------------------------------------------------
2669 Debbie And The Lustful
Coeds 73:11 1982 Vanguard Video 21-Nov-95
- ------------------------------------------------------------------------------
2584 Debbie Does Dallas #03 77:04 1985 Amcom Pictures 08-Sep-95
- ------------------------------------------------------------------------------
2288 Debbie Duz Dishes 87:48 1992 Showtime 24-May-95
- ------------------------------------------------------------------------------
2237 Debbie For Hire 71:33 1988 Show Time 28-Apr-95
- ------------------------------------------------------------------------------
4636 Debbie For President 80:29 1986 Coast To Coast 30-Aug-96
- ------------------------------------------------------------------------------
4637 Debbie: Class of '88 79:21 1991 Coast To Coast 30-Aug-96
- ------------------------------------------------------------------------------
6725 Debutantes Pretes A Tout 72:38
- ------------------------------------------------------------------------------
1696 Decadent 85:56 1991 Western Visuals 20-Dec-94
- ------------------------------------------------------------------------------
5260 Decadent 86:00 1991 Western Visuals 20-Feb-97
- ------------------------------------------------------------------------------
6620 Deceit 81:35 1996 CED/Zane Ent. 18-Jul-97
- ------------------------------------------------------------------------------
1932 Deception 77:55 1991 Xcitement 21-Feb-95
- ------------------------------------------------------------------------------
2718 Deep C Diver 73:33 1992 Las Vegas 18-Oct-95
- ------------------------------------------------------------------------------
3793 Deep Cheeks #01 78:09 1991 27-Jul-96
- ------------------------------------------------------------------------------
3792 Deep Cheeks #02 84:28 24-Jul-96
- ------------------------------------------------------------------------------
1042 Deep Cheeks #03 69:56 1992 Rose Bud Prod. 20-Oct-94
- ------------------------------------------------------------------------------
3796 Deep Cheeks #03 69:56 1992 27-Jul-96
- ------------------------------------------------------------------------------
1071 Deep Cheeks #04 73:40 1992 Valentine Video/ 20-Oct-94
- ------------------------------------------------------------------------------
3795 Deep Cheeks #04 73:43 1992 27-Jul-96
- ------------------------------------------------------------------------------
2187 Deep Cover 89:22 1993 Wicked Pictures 24-Apr-95
- ------------------------------------------------------------------------------
5023 Deep Cover 89:30 1993 Sin City 19-Nov-96
- ------------------------------------------------------------------------------
Page 26
<PAGE>
MASTER DATA BASE
- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
2498 Deep Desires 83:42 1987 Hollywood Video 30-Aug-95
- ------------------------------------------------------------------------------
0311 Deep Inside 86:28 1989 Erotic Fantasy 14-Jun-94
- ------------------------------------------------------------------------------
1035 Deep Inside Charlie 74:57 1992 Cinderella 12-Sep-94
- ------------------------------------------------------------------------------
3199 Deep Inside Dirty
Debutantes #01 137:48 1992 Omni Internation 03-Jun-96
- ------------------------------------------------------------------------------
3203 Deep Inside Dirty
Debutantes #02 127:05 1992 4 Play Prod. 03-Apr-96
- ------------------------------------------------------------------------------
2960 Deep Inside Dirty
Debutantes #03 122:54 1993 02-Feb-96
- ------------------------------------------------------------------------------
3200 Deep Inside Dirty
Debutantes #05 137:03 1993 Ed Powers 31-May-96
- ------------------------------------------------------------------------------
5198 Deep Inside Dirty
Debutantes #06 138:14 Ed Powers 11-Dec-96
- ------------------------------------------------------------------------------
6588 Deep Inside Dirty
Debutantes #09 134:55 1993 Ed Powers/4-Pla 08-Jun-97
- ------------------------------------------------------------------------------
6589 Deep Inside Dirty
Debutantes #l0 0 1993 08-Sep-97
- ------------------------------------------------------------------------------
6587 Deep Inside Dirty
Debutantes #8 138:01 1993 26-Jun-97
- ------------------------------------------------------------------------------
3062 Deep Inside Dirty
Debutantes 4 99:34 1993 02-Feb-96
- ------------------------------------------------------------------------------
3794 Deep Inside Jane 83:03 1993 27-Jul-96
- ------------------------------------------------------------------------------
1197 Deep Inside Laurel
Canyon 80:15 1988 Cinderella 05-Nov-94
- ------------------------------------------------------------------------------
4403 Deep Inside Raquel 70:46 1993 26-Jul-96
- ------------------------------------------------------------------------------
3153 Deep Throat 61:39 1972 Arrow 17-Nov-95
- ------------------------------------------------------------------------------
1067 Defenceless 68:50 1992 Cinderella 12-Sep-94
- ------------------------------------------------------------------------------
1418 Defending Your Sex Life 75:23 1993 Legend Video 25-Nov-94
- ------------------------------------------------------------------------------
1709 Defending Your Soul 76:36 1994 Aphrodite Studio 30-Nov-94
- ------------------------------------------------------------------------------
1020 DejaVu 77:21 1993 07-Oct-94
- ------------------------------------------------------------------------------
0956 Delicious 80:34 1981 Praexis Prod. 16-Sep-94
- ------------------------------------------------------------------------------
5102 Della Borsa 0 Digital Media 29-Nov-96
- ------------------------------------------------------------------------------
2241 Demolition Woman #02 81:49 1994 27-Mar-95
- ------------------------------------------------------------------------------
2156 Demolition Woman Cppa 80:17 1994
- ------------------------------------------------------------------------------
1068 Denim Dolls 70:23 1991 Cinderella 12-Sep-94
- ------------------------------------------------------------------------------
5171 Denni O's Beach Ballin' 00:00 Sticky Video Pro
- ------------------------------------------------------------------------------
4494 Dentist Sex 56:58 1994 01-Aug-96
- ------------------------------------------------------------------------------
3803 Depravate 92:22 1995 Ona Zee Prod. 03-Jul-96
- ------------------------------------------------------------------------------
1580 Depucelage Anal 84:05 1992 Cast'or 18-Nov-94
- ------------------------------------------------------------------------------
3787 DeSade 86:18 1995 27-Jul-96
- ------------------------------------------------------------------------------
3074 Desires Of 3 Women 92:39 Cinderella 19-Jan-96
- ------------------------------------------------------------------------------
5172 Desperately Seeking
Semen 67:33 1996 Sticky Video 28-Jan-97
- ------------------------------------------------------------------------------
2757 Detained 76:08 1992 Pleasure Produc 11-Dec-95
- ------------------------------------------------------------------------------
2119 Deuces Wild 84:33 1990 Fat Dog 23-Feb-95
- ------------------------------------------------------------------------------
6534 Deux Bites Pour Melodie 89:07 Turbo Films 06-May-97
- ------------------------------------------------------------------------------
6627 Deviant Doctor 64:06 1995 Plush Ent./Low Ri 17-Jul-97
- ------------------------------------------------------------------------------
3155 Devil In Miss Jones 64:01 1972 Arrow 17-Nov-95
- ------------------------------------------------------------------------------
0938 Devil ln Vanity 71:51 1989 Coast To Coast 14-Sep-94
- ------------------------------------------------------------------------------
0310 Devil's Ecstacy 82:02 Hollywood Classi 14-Jun-94
- ------------------------------------------------------------------------------
6047 Diabolix 39:11 Ona Zee 03-Sep-97
- ------------------------------------------------------------------------------
3089 Dial A Sailor 56:27 1990 31-Jan-96
- ------------------------------------------------------------------------------
1632 Dial N Again 79:08 1993 Yellow Pepper 19-Dec-94
- ------------------------------------------------------------------------------
3804 Dial N For Nikki 72:01 1993 27-Jul-96
- ------------------------------------------------------------------------------
0712 Diamond Double XX 106:18 Cinderella 01-Jun-94
- ------------------------------------------------------------------------------
Page 27
<PAGE>
MASTER DATA BASE
- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
6124 Diamond In The Raw 69:43 X-citment Video 24-Feb-97
- ------------------------------------------------------------------------------
6649 Diamonds 90:32 1996 03-Sep-97
- ------------------------------------------------------------------------------
6153 Diary Of A Geisha 85:33 1995 Western Visuals 24-Feb-97
- ------------------------------------------------------------------------------
6089 Diary Of A Pervert 99:20 Jim Powers 20-Feb-97
- ------------------------------------------------------------------------------
4431 Diary of a Porn Star 83:47 1993 25-Jul-96
- ------------------------------------------------------------------------------
2841 Dick And Jane #01 -
In Budapest 73:08 1994 Avica 09-Jan-96
- ------------------------------------------------------------------------------
2842 Dick And Jane 03 - Go
To Hollywood 90:05 1994 Avica 09-Jan-96
- ------------------------------------------------------------------------------
2840 Dick And Jane #05 - Big
Breast Advent 89:20 1993 Avica 09-Jan-96
- ------------------------------------------------------------------------------
2902 Dick And Jane #11 - Do
The Strip 77:51 1994 Avica 16-Feb-96
- ------------------------------------------------------------------------------
2898 Dick And Jane #12 - Do
The Slopes In 82:58 1994 Avica 16-Feb-96
- ------------------------------------------------------------------------------
2901 Dick And Jane #13 - Look
For Pussy In 74:33 1994 Avica 16-Feb-96
- ------------------------------------------------------------------------------
2837 Dick Tracer 84:29 1989 Down Under Pro 02-Nov-95
- ------------------------------------------------------------------------------
2502 Dickheads 87:16 1993 Midnight 30-Aug-95
- ------------------------------------------------------------------------------
3600 Did You Hear The About
The Farmer's 74:50 1991 Fantazy Ent 25-Jul-96
- ------------------------------------------------------------------------------
2406 Die Frauenadze 81:42 1994 Scandanavian Pi 29-Jun-95
- ------------------------------------------------------------------------------
6235 Directors' Wet Dreams 113:17 1995 CED/Dripping We 03-Mar-97
- ------------------------------------------------------------------------------
6647 Dirt Bags 72:26
- ------------------------------------------------------------------------------
2868 Dirty Angel 74:18 1988 Western Visuals 03-Jan-96
- ------------------------------------------------------------------------------
0343 Dirty Blondes 53:54 1986 n 14-Jun-94
- ------------------------------------------------------------------------------
5096 Dirty Business 79:01 1995 Digital Media/Sib 08-Jan-97
- ------------------------------------------------------------------------------
1261 Dirty Dating Service
#02 115:58 Wicked Pictures 27-Oct-94
- ------------------------------------------------------------------------------
2745 Dirty Debutantes #01 102.19 1990 18-Oct-95
- ------------------------------------------------------------------------------
2518 Dirty Debutantes #10 138:40 18-Oct-95
- ------------------------------------------------------------------------------
2563 Dirty Debutantes #12 137:13 1991 18-Oct-95
- ------------------------------------------------------------------------------
6595 Dirty Debutantes #44 139:02 1995 The Nasty Brothe 17-Jun-97
- ------------------------------------------------------------------------------
6586 Dirty Debutantes #7 -
Blonde Ambition 138:03 1993 26-Jun-97
- ------------------------------------------------------------------------------
3130 Dirty Debutantes Lovin
Spoonfuls #03 139:01 1995 4 Play Prod. 04-Mar-96
- ------------------------------------------------------------------------------
3798 Dirty Diana 76:29 27-Jul-96
- ------------------------------------------------------------------------------
3126 Dirty Dirty Debutantes
#01 138:51 1996 4 Play Prod. 04-Mar-96
- ------------------------------------------------------------------------------
4382 Dirty Doc's #01 75:16 1993 26-Jul-96
- ------------------------------------------------------------------------------
4381 Dirty Doc's House Calls
#02 76:58 1993 26-Jul-96
- ------------------------------------------------------------------------------
3806 Dirty Doc's House Calls
#03 80:08 1993 27-Jul-96
- ------------------------------------------------------------------------------
3800 Dirty Doc's House Calls
#04 75:20 1993 03-Jul-96
- ------------------------------------------------------------------------------
3799 Dirty Doc's House Calls
#05 84:21 1993 26-Jul-96
- ------------------------------------------------------------------------------
4488 Dirty Doc's House Calls
#06 73:59 1994 01-Aug-96
- ------------------------------------------------------------------------------
3637 Dirty Doc's House Calls
#07 79:22 1993 02-Jul-96
- ------------------------------------------------------------------------------
3634 Dirty Doc's House Calls
#08 77:26 1993 02-Jul-96
- ------------------------------------------------------------------------------
3802 Dirty Doc's House Calls
#09 85:03 1994 26-Jul-96
- ------------------------------------------------------------------------------
3801 Dirty Doc's House Calls
#10 84:17 1995 26-Jul-96
- ------------------------------------------------------------------------------
3784 Dirty Doc's House Calls
#11 83:56 1994 26-Jul-96
- ------------------------------------------------------------------------------
3641 Dirty Doc's House Calls
#12 73:56 1994 02-Jul-96
- ------------------------------------------------------------------------------
3817 Dirty Doc's House Calls
#13 80:50 1993 27-Jul-96
- ------------------------------------------------------------------------------
3818 Dirty Doc's House Calls
#14 75:40 1994 23-Jul-96
- ------------------------------------------------------------------------------
3788 Dirty Doc's House Calls
#15 80:38 1993 27-Jul-96
- ------------------------------------------------------------------------------
Page 28
<PAGE>
MASTER DATA BASE
- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
3789 Dirty Doc's House Calls
#16 81:51 1994 18-Jul-96
- ------------------------------------------------------------------------------
3811 Dirty Doc's House Calls
#17 77:32 1994 26-Jul-96
- ------------------------------------------------------------------------------
3791 Dirty Doc's House Calls
#18 86:49 1994 18-Jul-96
- ------------------------------------------------------------------------------
3790 Dirty Doc's House Calls
#19 83:40 1994 16-Jul-96
- ------------------------------------------------------------------------------
3809 Dirty Doc's House Calls
#20 84:34 1994 27-Jul-96
- ------------------------------------------------------------------------------
1151 Dirty Dozen #14 116:58 1990 Cinderella 22-Oct-94
- ------------------------------------------------------------------------------
2060 Dirty Dozen #24 95:52 1990 Cinderella 23-Feb-95
- ------------------------------------------------------------------------------
1154 Dirty Dozen #34 116:59 1990 Down & Dirty Vid 07-Sep-94
- ------------------------------------------------------------------------------
0696 Dirty Dozen #01 115:16 1990 Cinderella 01-Jun-94
- ------------------------------------------------------------------------------
1150 Dirty Dozen #02 115:40 1990 Cinderella 22-Oct-94
- ------------------------------------------------------------------------------
0698 Dirty Dozen #03 111:37 1990 Cinderella 01-Jun-94
- ------------------------------------------------------------------------------
0699 Dirty Dozen #04 115:00 1990 Cinderella 01-Jun-94
- ------------------------------------------------------------------------------
1147 Dirty Dozen #05 114:00 1990 Cinderella 22-Oct-94
- ------------------------------------------------------------------------------
0980 Dirty Dozen #07 98:53 1990 Cinderella 12-Sep-94
- ------------------------------------------------------------------------------
1152 Dirty Dozen #10 95:10 1990 Cinderella 22-Oct-94
- ------------------------------------------------------------------------------
1146 Dirty Dozen #12 114:24 1990 Cinderella 22-Oct-94
- ------------------------------------------------------------------------------
1316 Dirty Dozen #15 115:05 1990 Cinderella 17-Nov-94
- ------------------------------------------------------------------------------
1317 Dirty Dozen #17 109:29 1990 Cinderella 17-Nov-94
- ------------------------------------------------------------------------------
1318 Dirty Dozen #18 109:12 1990 Cinderella 17-Nov-94
- ------------------------------------------------------------------------------
1354 Dirty Dozen #19 110:01 1990 Cinderella 17-Nov-94
- ------------------------------------------------------------------------------
1352 Dirty Dozen #20 85:38
- ------------------------------------------------------------------------------
2055 Dirty Dozen #22 118:51 1990 Cinderella 23-Feb-95
- ------------------------------------------------------------------------------
0305 Dirty Dozen #30 85:13 Hollywood Classi 14-Jun-94
- ------------------------------------------------------------------------------
2043 Dirty Dozen #30 100:14 1990 Cinderella 23-Feb-95
- ------------------------------------------------------------------------------
1143 Dirty Dozen #32 115:08 1990 Down & Dirty Vid 07-Sep-94
- ------------------------------------------------------------------------------
0981 Dirty Dozen 8**CPPA 99:00 1990
- ------------------------------------------------------------------------------
6012C Dirty Dreams 00:00 Satellite II Prod.
- ------------------------------------------------------------------------------
3785 Dirty Girls 81:48 1986 27-Jul-96
- ------------------------------------------------------------------------------
2100 Dirty Girls #03 73:10 1988 Plum Prod. 31-Jan-95
- ------------------------------------------------------------------------------
2721 Dirty Harriet 77:59 1986 Fat Dog 18-Oct-95
- ------------------------------------------------------------------------------
2814 Dirty Laundry 71:48 1988 Plum Prod. 29-Nov-95
- ------------------------------------------------------------------------------
1651 Dirty Lily 67:33 Night Magic 20-Dec-94
- ------------------------------------------------------------------------------
1856 Dirty Little Lies 77:18 1993 Video Team 20-Jan-95
- ------------------------------------------------------------------------------
2023 Dirty Looks 69:25 1990 Intropics 23-Feb-95
- ------------------------------------------------------------------------------
6219 Dirty Minds 85:49 0 Nitro 01-Mar-97
- ------------------------------------------------------------------------------
5352C Dirty Movies 00:00
- ------------------------------------------------------------------------------
1227 Dirty Movies #01 112:45 1989 Western Visuals 27-Oct-94
- ------------------------------------------------------------------------------
1700 Dirty Movies #12 112:33 Western Visuals 20-Dec-94
- ------------------------------------------------------------------------------
1679 Dirty Movies #28 108:55 Western Visuals 20-Dec-94
- ------------------------------------------------------------------------------
3775 Dirty Stories #01 139:42 03-Jul-96
- ------------------------------------------------------------------------------
4979 Dirty Stories #02 114:02 Plush Ent./Subli 14-Nov-96
- ------------------------------------------------------------------------------
4973 Dirty Stories #03 109:41 1995 Plush Ent./Subli 13-Nov-96
- ------------------------------------------------------------------------------
5075 Dirty Stories #04 118:58 1995 Plush Ent./Subli 14-Jan-97
- ------------------------------------------------------------------------------
5073 Dirty Stories #05 00:00 Plush Ent./Subli 14-Jan-97
- ------------------------------------------------------------------------------
Page 29
<PAGE>
MASTER DATA BASE
- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
6671 Dirty Stories #6 105:13 1996 Plush 14-Aug-97
- ------------------------------------------------------------------------------
0952 Dirty Thoughts 71:10 16-Sep-94
- ------------------------------------------------------------------------------
0947 Dirty Tricks 76:38 1991 Coast To Coast 14-Aug-94
- ------------------------------------------------------------------------------
4822 Dirty Tricks 123:09 1991 John Leslie Prod. 08-Oct-96
- ------------------------------------------------------------------------------
6212 Dirty Video #01 68:44 1996 n 05-Mar-97
- ------------------------------------------------------------------------------
6655 Dirty Video #2 72:47 1997 ABV-USA 03-Sep-97
- ------------------------------------------------------------------------------
6650 Dirty Video #3 72:52 1997 ABV-USA 03-Sep-97
- ------------------------------------------------------------------------------
2579 Dirty Western 2 -
Smokin' Guns 77:07 1995 Cal Vista 29-Sep-95
- ------------------------------------------------------------------------------
1928 Diva -Being cosmetic
edited- 74:31 1993 Xcitement 21-Feb-95
- ------------------------------------------------------------------------------
1179 Diver Down 75:31 0 N/A 22-Oct-94
- ------------------------------------------------------------------------------
3786 Do It In The Road 80:24 1990 27-Jul-96
- ------------------------------------------------------------------------------
0783 Do The White Thing 70:45 1992 Zane Ent. 01-Jun-94
- ------------------------------------------------------------------------------
6039 Doctor Max 117:28 1996 Ona Zee/Jetset 10-Feb-97
- ------------------------------------------------------------------------------
6281 Doctor Trashy - Sweaty
Situations 90:09 1997 Klimaxxx/Liquid 04-Apr-97
- ------------------------------------------------------------------------------
2950 Dog Walker 116:35 1995 Valentine Video 03-Jan-96
- ------------------------------------------------------------------------------
2446 Doing It 82:19 1983 Select Video 22-Aug-95
- ------------------------------------------------------------------------------
4551 Doll House #01 83:44 1995 Ona Zee Prod. 23-Aug-96
- ------------------------------------------------------------------------------
4553 Doll House #03 81:19 1996 Ona Zee Prod. 23-Aug-96
- ------------------------------------------------------------------------------
4554 Doll House #04 82:21 1996 Ona Zee Prod. 23-Aug-96
- ------------------------------------------------------------------------------
4961 Doll House #05
receptical 81:18 1996 Ona Zee Prod. 11-Nov-96
- ------------------------------------------------------------------------------
5234 Dominant Jean 0
- ------------------------------------------------------------------------------
2188 Domination 73:24 1994 Wicked Pictures 24-Apr-95
- ------------------------------------------------------------------------------
3814 Don't Bother to Knock 69:09 31-Dec-95
- ------------------------------------------------------------------------------
6191 Done In The Desert Sun 85:29 1995 Outlaw Productio 21-Feb-97
- ------------------------------------------------------------------------------
3808 Donne Del Est 106:33 0 31-Dec-95
- ------------------------------------------------------------------------------
3969 Dottor Max Colpisce
Ancora 106:01 0 31-Dec-95
- ------------------------------------------------------------------------------
3815 Double Anal**Missing 84:55
- ------------------------------------------------------------------------------
1366 Double Big Melons #05 98:42 1991 Cinderella 17-Nov-94
- ------------------------------------------------------------------------------
1367 Double Big Melons #06 50:10
- ------------------------------------------------------------------------------
1364 Double Big Melons #08 100:23 1991 Cinderella 17-Nov-94
- ------------------------------------------------------------------------------
1363 Double Big Melons #09 97:38 1988 Cinderella 17-Nov-94
- ------------------------------------------------------------------------------
0694 Double Big Melons #13 110:33 1989 Cinderella 01-Jun-94
- ------------------------------------------------------------------------------
0695 Double Big Melons #14 99:00 Cinderella 01-Jun-94
- ------------------------------------------------------------------------------
1365 Double Big Melons
7*CPPA 100:15 1991
- ------------------------------------------------------------------------------
3231 Double Cross 72:11 1995 Western Visuals 23-Apr-96
- ------------------------------------------------------------------------------
0991 Double D 3**CPPA 91:00 1989
- ------------------------------------------------------------------------------
2943 Double D Housewives 77:49 1994 Paradise Visuals 19-Jan-96
- ------------------------------------------------------------------------------
1402 Double Detail 68:20 Soho 25-Nov-94
- ------------------------------------------------------------------------------
2948 Double Down 105:12 1993 LBO 19-Jan-96
- ------------------------------------------------------------------------------
1491 Double Ebony And Ivory
#06 55:36 1991 Ebony & Ivory 04-Nov-94
- ------------------------------------------------------------------------------
1494 Double Gems #01 60:38 1991 Cinderella 04-Nov-94
- ------------------------------------------------------------------------------
1495 Double Gems #03 58:35 Cinderella 04-Nov-94
- ------------------------------------------------------------------------------
1496 Double Gems #04 48:38 Cinderella 19-Dec-94
- ------------------------------------------------------------------------------
1497 Double Gems #05 52:27 1986 Cinderella 04-Nov-94
- ------------------------------------------------------------------------------
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- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
4411 Double Horny 83:33 1994 26-Jul-96
- ------------------------------------------------------------------------------
1171 Double Impact 70:18 1992 Cinderella 22-Oct-94
- ------------------------------------------------------------------------------
0316 Double Jeopardy #02 79:57 1990 Hollywood Video 14-Jun-94
- ------------------------------------------------------------------------------
2410 Double Penetration 79:21 Western Visuals 18-Jul-95
- ------------------------------------------------------------------------------
6079 Double Penetration
Virgins 72:56 0 Big Bang Video 28-Jan-97
- ------------------------------------------------------------------------------
6094 Double Penetration
Virgins #01 76:41 1994 Big Bang Video 24-Feb-97
- ------------------------------------------------------------------------------
6120 Double Penetration
Virgins #03 77:46 1994 Big Bang Video 24-Feb-97
- ------------------------------------------------------------------------------
6119 Double Penetration
Virgins #04 86:18 1994 Big Bang Video 24-Feb-97
- ------------------------------------------------------------------------------
6095 Double Penetration
Virgins 2 0
- ------------------------------------------------------------------------------
6211 Double Pleasures 90:06 1996 n 01-Mar-97
- ------------------------------------------------------------------------------
4631 Double Take 80:28 1989 Coast To Coast 30-Aug-96
- ------------------------------------------------------------------------------
2148 Dougie Hoser MD 75:53 1990 Video Team 10-Mar-95
- ------------------------------------------------------------------------------
3080 Down $4$ Bizness 67:47 1989 GMI 31-Jan-96
- ------------------------------------------------------------------------------
1420 Down And Dirty #41 106:20 0 Down & Dirty Vid 25-Nov-94
- ------------------------------------------------------------------------------
2322 DP Anal Sphincter Girls 55:30 1992 Global 24-Apr-96
- ------------------------------------------------------------------------------
2824 DP Boys #09- Janet and
Da Boyz 65:54 1995 Heatwave Entert 29-Nov-95
- ------------------------------------------------------------------------------
2815 DP Ho's Compilation 69:56 1994 Heat Wave 29-Nov-95
- ------------------------------------------------------------------------------
5258 DP4 0
- ------------------------------------------------------------------------------
4699 Dr. Black Love 78:13 Coast To Coast 05-Sep-96
- ------------------------------------------------------------------------------
3145 Dr. Butts #01 128:18 1991 05-Jun-96
- ------------------------------------------------------------------------------
3146 Dr. Butts #02 132:41 1992 06-Jun-96
- ------------------------------------------------------------------------------
3147 Dr. Butts 3-The Anal
Asylum 121:38 1993 02-Feb-96
- ------------------------------------------------------------------------------
6488 Dr. Fingers House Of
Lesbians 83:13 1995 Sin City 07-May-97
- ------------------------------------------------------------------------------
4396 Dr. Jeckel & Mrs. Hyde 81:24 1990 26-Jul-96
- ------------------------------------------------------------------------------
6118 Dr. Max & The Anal
Housewives 110:51 1996 Ona Zee/Jetset 24-Feb-97
- ------------------------------------------------------------------------------
6193 Dr. Max & The Big Butt
Girls 100:04 1996 Ona Zee/Jetset 21-Feb-97
- ------------------------------------------------------------------------------
6194 Dr. Max & The Big Girls 87:07 1996 Ona Zee/Midnigh 21-Feb-97
- ------------------------------------------------------------------------------
6112 Dr. Max & The New
Adventure 97:23 Ona Zee/Jetset P 20-Feb-97
- ------------------------------------------------------------------------------
4977 Dr. Max And The Anal
Girls 99:35 0 Digital Media 14-Nov-96
- ------------------------------------------------------------------------------
1425 Dragon Lady 86:35 1992 Western Visuals 21-Nov-94
- ------------------------------------------------------------------------------
1641 Dragon Lady #03 74:39 1992 Western Visuals 11-Jan-95
- ------------------------------------------------------------------------------
1642 Dragon Lady #04 - "Tales
from The Bed 86:24 1993 Western Visuals 11-Jan-95
- ------------------------------------------------------------------------------
1643 Dragon Lady #05 - "Tales
from The Bed 85:42 1993 Western Visuals 11-Jan-95
- ------------------------------------------------------------------------------
1644 Dragon Lady #06 86:50 1993 Western Visuals 11-Jan-95
- ------------------------------------------------------------------------------
6672 Dragon Lady #7 110:32 1994 Western Visuals 14-Aug-97
- ------------------------------------------------------------------------------
1156 Drain My Hose Dry 116:29 1989 Zane Ent. 07-Sep-94
- ------------------------------------------------------------------------------
4575 Dream Date 79:50 1992 Hollywood Video 23-Aug-96
- ------------------------------------------------------------------------------
0681 Dream Girls 73:00 1960 Cinderella 01-Aug-94
- ------------------------------------------------------------------------------
5348C Dream Jeans 0
- ------------------------------------------------------------------------------
3143 Dream Lover 75:28 1995 Sin City 28-Feb-96
- ------------------------------------------------------------------------------
3816 Dream Lust 80:36 1995 27-Jul-96
- ------------------------------------------------------------------------------
1116 Dream Machine 69:45 1992 Cinderella 23-Sep-94
- ------------------------------------------------------------------------------
2420 Dream Strokes 90:20 1994 Vidmax Corporat 11-Aug-95
- ------------------------------------------------------------------------------
6072 Dreamhouse 105:35 1996 XPLOR 10-Feb-97
- ------------------------------------------------------------------------------
Page 31
<PAGE>
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- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
3215 Dreams Bi-Night 59:34 1989 Pleasure Prod. 13-Mar-96
- ------------------------------------------------------------------------------
0318 Dreams Come True 77:06 1990 Hollywood Video 14-Jun-94
- ------------------------------------------------------------------------------
2662 Dreams In The Forbidden
Zone 78:16 1988 Night Magic Vide 05-Oct-95
- ------------------------------------------------------------------------------
3812 Dreams of an Everyday
Housewife 71:04 27-Jul-96
- ------------------------------------------------------------------------------
3282 Dreams Of Desire 100:07 1996 Ona Zee Prod. 09-May-96
- ------------------------------------------------------------------------------
3361 Drilling For Gold 86:58 1995 Moonlight 30-May-96
- ------------------------------------------------------------------------------
1710 Dripping Wet 111:15 1994
- ------------------------------------------------------------------------------
1129 Dripping Wet #01 88:11 1989 Cinderella 07-Sep-94
- ------------------------------------------------------------------------------
2040 Dripping Wet #02 68:50 1989 Cinderella 23-Feb-95
- ------------------------------------------------------------------------------
1295 Dripping Wet #04 81:27 1989 Cinderella 17-Nov-94
- ------------------------------------------------------------------------------
1296 Dripping Wet #05 86:03 Cinderella 17-Nov-94
- ------------------------------------------------------------------------------
2058 Dripping Wet #10 72:59 1989 Cinderella 23-Feb-95
- ------------------------------------------------------------------------------
2077 Dripping Wet #12 72:00 1989 Cinderella 23-Feb-95
- ------------------------------------------------------------------------------
1250 Dripping With Desire 81:00 Dreamland Ent. 27-Oct-94
- ------------------------------------------------------------------------------
6029 Driving Miss Daisy Crazy 89:35 1990 Western Visuals 28-Jan-97
- ------------------------------------------------------------------------------
1691 Driving Miss Daisy Crazy
Again 84:40 1992 Western Visuals 20-Dec-94
- ------------------------------------------------------------------------------
3813 Dun-Hur 73:35 1984 27-Jul-96
- ------------------------------------------------------------------------------
1844 Dutch Masters 82:24 1990 Intropics 20-Jan-95
- ------------------------------------------------------------------------------
1941 Dutch Treat 113:43 1992 Video Team 02-Mar-95
- ------------------------------------------------------------------------------
4746 Dynasty's Anal Brat Pack 87:38 1996 Outlaw 20-Sep-96
- ------------------------------------------------------------------------------
1173 Eager Beaver 74:39
- ------------------------------------------------------------------------------
0855 Earthquake Girls 76:15 1990 Coast To Coast 06-May-94
- ------------------------------------------------------------------------------
6657 East Coast Boys In
Search Of Fresh Fl 92:00 CED
- ------------------------------------------------------------------------------
2849 East Coast Sluts #01 69:45 1995 Pleasure Produc 11-Dec-95
- ------------------------------------------------------------------------------
2850 East Coast Sluts #02 70:52 1995 Pleasure Produc 11-Dec-95
- ------------------------------------------------------------------------------
3066 East Coast Sluts #03 66:14 1995 19-Jan-96
- ------------------------------------------------------------------------------
5223 East L.A. Law 53:39 1991 Western Visuals 08-Jan-97
- ------------------------------------------------------------------------------
4462 East Meets West 69:31 1995 EVN (CDI) 25-Jul-96
- ------------------------------------------------------------------------------
1910 Easy Access 87:51 1988 Zane Ent. 23-Feb-95
- ------------------------------------------------------------------------------
3821 Easy Pussy 75:38 1991 27-Jul-96
- ------------------------------------------------------------------------------
3054 Easy Way Out 89:12 1989 31-Jan-96
- ------------------------------------------------------------------------------
2905 Eat At Daves 68:20 1995 Sin City 04-Jan-96
- ------------------------------------------------------------------------------
0101 Eat My Jizz 30:00
- ------------------------------------------------------------------------------
0974 Ebony And Ivory 55:42 Cinderella 12-Sep-94
- ------------------------------------------------------------------------------
1868 Ebony Love #03 72:52 1993 VideoTeam 30-Jan-95
- ------------------------------------------------------------------------------
3288 Eclipse 71:30 1993 Sin City 01-May-96
- ------------------------------------------------------------------------------
3822 Ecstasy 72:17 27-Jul-96
- ------------------------------------------------------------------------------
3006 Edge 82:16 1995 Sin City 02-Feb-96
- ------------------------------------------------------------------------------
0901 Edge Of Heat 86:51 California 4 Play 30-Aug-94
- ------------------------------------------------------------------------------
0953 Edge Of Sensation 72:00 1991 Legend Video 16-Sep-94
- ------------------------------------------------------------------------------
1275 Educating Kasha 82:42
- ------------------------------------------------------------------------------
2609 Education D'une Pute 84:22 Europix 30-Aug-95
- ------------------------------------------------------------------------------
XXX Education of The Baroness 0
- ------------------------------------------------------------------------------
1828 Edward Penishands #01 71:55 1991 Paul Norman Pro 20-Jan-95
- ------------------------------------------------------------------------------
Page 32
<PAGE>
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- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
1800 Edward Penishands #02 69:11 1991 Paul Norman Pro 20-Jan-95
- ------------------------------------------------------------------------------
1786 Edward Penishands #03 71:49 1991 Paul Norman Pro 30-Jan-95
- ------------------------------------------------------------------------------
4363 Egg Foo Kitty Yung 67:25 EVN (CDI) 26-Jul-96
- ------------------------------------------------------------------------------
2876 Elle Suce A Genoux 53:42 0 Direct Video 04-Jan-96
- ------------------------------------------------------------------------------
1069 Elvis Slept Here 65:47 1994 Legend Video 20-Oct-94
- ------------------------------------------------------------------------------
0579 Emmanuelle A Cannes 81:18 Les Films J.M.P 01-Jun-94
- ------------------------------------------------------------------------------
3828 EMP #102 0
- ------------------------------------------------------------------------------
3826 EMP #104 72:49 0 27-Jul-96
- ------------------------------------------------------------------------------
3825 EMP #109 69:41 27-Jul-96
- ------------------------------------------------------------------------------
3824 EMP #110 74:09 0 27-Jul-96
- ------------------------------------------------------------------------------
4500 EMP #302 72:23 01-Aug-96
- ------------------------------------------------------------------------------
0438 Empire Of The Sins 75:00 1988 Nightlight Expres 23-Sep-94
- ------------------------------------------------------------------------------
4624 Employee Entrance - The
Back Door 82:56 1996 Coast To Coast 30-Aug-96
- ------------------------------------------------------------------------------
1252 En Garde 72:19 1993 Dreamland Ent. 27-Oct-94
- ------------------------------------------------------------------------------
3823 Endangered 82:54 1992 27-Jul-96
- ------------------------------------------------------------------------------
1678 Endless Nights 79:02 Cinderella 19-Dec-94
- ------------------------------------------------------------------------------
0577 Enleve Ton Slip 85:00 0 N/A 01-Jun-94
- ------------------------------------------------------------------------------
6243 Entangled 92:05 1996 Klimaxxx Prod. 04-Apr-97
- ------------------------------------------------------------------------------
2852.5 Entertainment Bi-Night 83:37 Pleasure Produc 11-Dec-95
- ------------------------------------------------------------------------------
0342 Entertainment L.A. Style 83:32 1990 Hollywood Video 14-Jun-94
- ------------------------------------------------------------------------------
1990 Entrainement Anale 92:12 0 Fanta-Z 10-Mar-95
- ------------------------------------------------------------------------------
3819 Environmental Attorney 96:14 1993 27-Jul-96
- ------------------------------------------------------------------------------
4826 Erika Bella Euroslut 91:17 1995 Elegant Angel 08-Oct-96
- ------------------------------------------------------------------------------
3467 Erotic Angel 80:29 VPN 28-May-96
- ------------------------------------------------------------------------------
3301 Erotic Appetites 81:11 1995 Metro 15-May-96
- ------------------------------------------------------------------------------
4929 Erotic Dreams 74:17 1987 Hollywood Video 15-Nov-96
- ------------------------------------------------------------------------------
5232 Erotic Dripping
Orientals 00:00 Western Visuals
- ------------------------------------------------------------------------------
2094 Erotic Explosions #13 106:03 1990 01-May-95
- ------------------------------------------------------------------------------
5337C Erotic Interludes-
Legends Of Porn, Se 00:00
- ------------------------------------------------------------------------------
1207 Erotic Moments 77:11 American Adult 05-Nov-94
- ------------------------------------------------------------------------------
1255 Erotic Newcommers #01 80:23 1993 Dreamland Ent. 27-Oct-94
- ------------------------------------------------------------------------------
1254 Erotic Newcummers #02 -
Texas Twist 71:07 1993 Dreamland Ent. 27-Oct-94
- ------------------------------------------------------------------------------
4967 Erotic Newcummers #05 75:25 1996 Dreamland Ent. 13-Nov-96
- ------------------------------------------------------------------------------
4812 Erotic Penetration 84:06 1993 Hollywood Video 17-Oct-96
- ------------------------------------------------------------------------------
1662 Erotic Radio WSEX 80:22 1984 Night Magic 20-Dec-94
- ------------------------------------------------------------------------------
6555 Erotic Rondo 80:05 1996 In-X-Cess Prod. 02-Jun-97
- ------------------------------------------------------------------------------
1521 Erotic Tail Pumping 113:16 Video Ent. 28-Oct-94
- ------------------------------------------------------------------------------
0962 Erotica 88:34 1991 Coast To Coast 14-Sep-94
- ------------------------------------------------------------------------------
1374 Erotica From The Past 68:00
- ------------------------------------------------------------------------------
2234 Erotika 91:51 1995 Western Visuals 24-Apr-95
- ------------------------------------------------------------------------------
6162 Esclave Du Sexe 82:11 Turbo 24-Feb-97
- ------------------------------------------------------------------------------
3027 Eskimo Gang Bang 62:57 Heat Wave 02-Feb-96
- ------------------------------------------------------------------------------
3830 Essence of a Woman 76:13 1993 Ona Zee Prod. 27-Jul-96
- ------------------------------------------------------------------------------
1269 Eternal Idol 68:58 1992 Cinderella 05-Nov-94
- ------------------------------------------------------------------------------
Page 33
<PAGE>
MASTER DATA BASE
- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
4406 Eternity 72:09 1991 26-Jul-96
- ------------------------------------------------------------------------------
4844 Euro Casting "Michelle" 79:29 Turbo Films 12-Nov-96
- ------------------------------------------------------------------------------
4838 Euro Gang Bang 81:56 0 Turbo Films 08-Nov-96
- ------------------------------------------------------------------------------
4707 Euro Kink #01 89:47 1995 In-X-Cess Produc
- ------------------------------------------------------------------------------
4793 Euro Kink #02 - I Love
To Suck Dick 89:40 1995 In-X-Cess Produc 16-Oct-96
- ------------------------------------------------------------------------------
3831 Euro Max #01 102:13 1995 03-Jul-96
- ------------------------------------------------------------------------------
4713 Euro Sex #01 88:32 1994 In-X-Cess Prod 05-Sep-96
- ------------------------------------------------------------------------------
0996 Euro Slut 76:00 1993 Coast To Coast 12-Sep-94
- ------------------------------------------------------------------------------
4711 Euro Sluts #01 89:46 1995 In-X-Cess Prod 05-Sep-96
- ------------------------------------------------------------------------------
4924 Euro-Bimbette 86:00 1996 Tight Ends Prod. 13-Nov-96
- ------------------------------------------------------------------------------
4803 Euro-Max #3 76:38 1995 Sin City Video
- ------------------------------------------------------------------------------
4792 Euro-Sex Collection #02 89:41 1995 In-X-Cess Innerv 16-Oct-96
- ------------------------------------------------------------------------------
2473 European Amateurs 57:55 1991 Amateur Adult Vi 08-Sep-95
- ------------------------------------------------------------------------------
6722 European Debutante #07 89:48 08-Sep-97
- ------------------------------------------------------------------------------
4706 European Debutantes #01 85:35 1994 In-X-Cess Produc 05-Sep-96
- ------------------------------------------------------------------------------
4767 European Debutantes #02 88:16 1994 In-X-Cess Produc 24-Sep-96
- ------------------------------------------------------------------------------
5188 European Debutantes #03 00:00 In-X-Cess Produc 12-Dec-96
- ------------------------------------------------------------------------------
5190 European Debutantes #04 00:00 In-X-Cess Produc 12-Dec-96
- ------------------------------------------------------------------------------
5189 European Debutantes #05 00:00 In-X-Cess Produc 12-Dec-96
- ------------------------------------------------------------------------------
6561 European Debutantes #06 91:01 1996 In-X-Cess Produc 08-May-97
- ------------------------------------------------------------------------------
6553 European Debutantes #08 89:52 1995 In-X-Cess Produc 02-Jun-97
- ------------------------------------------------------------------------------
6552 European Debutantes #09 89:32 1995 In-X-Cess Produc 02-Jun-97
- ------------------------------------------------------------------------------
6551 European Debutantes #10 89:56 1995 In-X-Cess Produc 02-Jun-97
- ------------------------------------------------------------------------------
4794 Eurosluts #02 - I Need
To Be Fucked 89:50 1995 In-X-Cess Prod 16-Oct-96
- ------------------------------------------------------------------------------
6709 Eurotica #02 - French
Group Gropes 115:24 1995 03-Sep-97
- ------------------------------------------------------------------------------
6710 Eurotica #03 - French
Group Gropes 115:24 1995 03-Sep-97
- ------------------------------------------------------------------------------
6712 Eurotica #05 -
Pulsating Pussies 106:16 1995 03-Sep-97
- ------------------------------------------------------------------------------
6713 Eurotica #06 - The Butt
Bangers 114:49 1996 08-Sep-97
- ------------------------------------------------------------------------------
6714 Eurotica #07 - Anal
Gang Bang Galore 103:51 1995 08-Sep-97
- ------------------------------------------------------------------------------
6751 Eurotica #08 - The
Queens of D. P. 109:36 1995 03-Sep-97
- ------------------------------------------------------------------------------
6717 Eurotica #10-The DP
Extravaganza! 105:20 1996 08-Sep-97
- ------------------------------------------------------------------------------
6718 Eurotica #12 - Les
Grande Gang Bang 111:10 1996 08-Sep-97
- ------------------------------------------------------------------------------
6720 Eurotica #15 - Anal
Ecstasy 87:18 1997 08-Sep-97
- ------------------------------------------------------------------------------
6708 Eurotica: Parisienne
Gang Bangs 114:02 1995 03-Sep-97
- ------------------------------------------------------------------------------
3832 Eurotrash #02 85:22 1994 24-Jul-96
- ------------------------------------------------------------------------------
4384 Eurotrash #03 80:51 26-Jul-96
- ------------------------------------------------------------------------------
N/A Eurotrash#06 71:00 1993 26-Jul-96
- ------------------------------------------------------------------------------
N/A Eurotrash #10 73:00 1993 26-Jul-96
- ------------------------------------------------------------------------------
0864 Eve Of Seduction 70:42 Cinderella 01-Aug-94
- ------------------------------------------------------------------------------
3827 Every Woman's Secret 73:54 27-Jul-96
- ------------------------------------------------------------------------------
0928 Evil Woman 68:34 1991 Legend Video 16-Sep-94
- ------------------------------------------------------------------------------
4983C Exhausted 76:00 1981
- ------------------------------------------------------------------------------
2246 Exit In Rear 73:48 1993 X-Citement Prod 01-May-95
- ------------------------------------------------------------------------------
4964 Exotic Car Models #01 75:00 1996 In-X-Cess Produc 13-Nov-96
- ------------------------------------------------------------------------------
Page 34
<PAGE>
MASTER DATA BASE
- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
4965 Exotic Car Models #02 75:00 1996 In-X-Cess Produc 13-Nov-96
- ------------------------------------------------------------------------------
4632 Expert Tease 74:32 1988 Coast To Coast 30-Aug-96
- ------------------------------------------------------------------------------
1822 Exposee 87:34 0 Double Dee 03-Jan-95
- ------------------------------------------------------------------------------
6043 Exstacy 103:24 1995 Western Visual 28-Jan-97
- ------------------------------------------------------------------------------
1648 Extreme Closeup 77:35 1987 Night Magic 11-Jan-95
- ------------------------------------------------------------------------------
2290 Extreme Passion 88:02 1993 Wicked Pictures 01-May-95
- ------------------------------------------------------------------------------
0013 Extremes 67:02 1992
- ------------------------------------------------------------------------------
3057 Extrordinaire #02 -
Bites Dans L'Anus 76:15 1995 Europix 19-Jan-96
- ------------------------------------------------------------------------------
1297 Eye Of The Needle 70:01 1991 Cinderella 17-Nov-94
- ------------------------------------------------------------------------------
3229 FZone 82:05 1995 Western Visuals 23-Apr-96
- ------------------------------------------------------------------------------
2038 Face Sitter #03 77:36 1994 CoastTo Coast 02-Mar-95
- ------------------------------------------------------------------------------
1034 Facesitter 76:15 1992 Coast To Coast 12-Sep-94
- ------------------------------------------------------------------------------
1431 Facesitter #02 76:15 1993 Coast To Coast 28-Oct-94
- ------------------------------------------------------------------------------
1680 Faithless Companions 85:32 1993 Western Visuals 20-Dec-94
- ------------------------------------------------------------------------------
0900 Falcon Head 77:32 1990 Argen Home Vid 30-Aug-94
- ------------------------------------------------------------------------------
2795 Fallen Angel - The
Lost Episodes 75:30 1980 Western Visuals 29-Nov-95
- ------------------------------------------------------------------------------
6284C Family Affairs 73:52
- ------------------------------------------------------------------------------
2179 Famous Anus 74:11 1990 Executive 29-Mar-95
- ------------------------------------------------------------------------------
6213 Fan Fuxxx 89:05 0 CED, Inc. 01-Mar-97
- ------------------------------------------------------------------------------
6645 Fanny Annie 83:00
- ------------------------------------------------------------------------------
5213 Fanny Farm 00:00
- ------------------------------------------------------------------------------
1033 Fantasmes De Sonia 78:11 1990 High Class 12-Sep-94
- ------------------------------------------------------------------------------
4623 Fantastic Memories 83:08 Coast To Coast 30-Aug-96
- ------------------------------------------------------------------------------
4542 Fantasy Couples 75:47 1988 Fantazy Ent 09-Aug-96
- ------------------------------------------------------------------------------
3838 Fantasy Escorts 74:12 1993 27-Jul-96
- ------------------------------------------------------------------------------
3494 Fantasy Girls 89:38 1989 Fantazy 30-May-96
- ------------------------------------------------------------------------------
1096 Fantasy Realm #02 -
Unlaced 76:33 1992 T.H. Royal 07-Sep-95
- ------------------------------------------------------------------------------
1624 Fantasy Weekend 79:34 1987 LA Video 30-Jan-95
- ------------------------------------------------------------------------------
2588 Fashion Fantasies 81:28 1985 International Ma 08-Sep-95
- ------------------------------------------------------------------------------
6648 Fashion Passion 86:51
- ------------------------------------------------------------------------------
6297 Fatal Bet 99:04 1995 Digital Media Grp 08-May-97
- ------------------------------------------------------------------------------
3325 Fatal illusion 87:34 0 15-May-96
- ------------------------------------------------------------------------------
2272 Fatal Passion 77:41 1988 Coast To Coast 31-Mar-95
- ------------------------------------------------------------------------------
1903 Father Of The Babe 71:22 1993 Zane Ent. 01-Mar-95
- ------------------------------------------------------------------------------
2834 Fatliners 86:12 1990 Showtime 11-Dec-95
- ------------------------------------------------------------------------------
2935 Fatliners #02 80:39 1990 Showtime 03-Jan-96
- ------------------------------------------------------------------------------
3446 Favorite Anals 65:42 1995 Ona Zee Prod. 15-May-96
- ------------------------------------------------------------------------------
3445 Favorite Facials 80:26 1995 Ona Zee Prod. 15-May-96
- ------------------------------------------------------------------------------
3313 Fazano's Student Bodies 130:54 1995 Elegant Angel 07-May-96
- ------------------------------------------------------------------------------
6643 Feast 77:17
- ------------------------------------------------------------------------------
4775 Feds in Bed 81:30 1993 Hollywood Video 07-Oct-96
- ------------------------------------------------------------------------------
6260 Fellatio Fenatics 78:58 1996 Star World Prod. 04-Apr-97
- ------------------------------------------------------------------------------
6496 Female Traffic 77:24 1995 Digital Media Grp 07-May-97
- ------------------------------------------------------------------------------
6503 Femelle Adultre 79:27 1995 Gerard Menoud 07-May-97
- ------------------------------------------------------------------------------
Page 35
<PAGE>
MASTER DATA BASE
- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
2992 Femme 74:42 1984 Femme 23-Apr-96
- ------------------------------------------------------------------------------
6076 Femme Fatale 0 0 N/A
- ------------------------------------------------------------------------------
2993 Femme: Urban Heat 77:25 1985 Femme 23-Apr-96
- ------------------------------------------------------------------------------
1059 Femmes Perverses 83:37 1993 Casanova 20-Oct-94
- ------------------------------------------------------------------------------
1591 Festival Des Pipes 83:35 Fantasy 18-Nov-94
- ------------------------------------------------------------------------------
2542 Fever Pitch 83:42 1995 Ona Zee Prod. 29-Sep-95
- ------------------------------------------------------------------------------
2656 Film Buff**Cppa 87:05 1994
- ------------------------------------------------------------------------------
1763 Filthy Delights 81:09 1990 Plum Prod. 08-Feb-95
- ------------------------------------------------------------------------------
1747 Filthy Delights #03 79:13 1990 Plum Prod. 08-Feb-95
- ------------------------------------------------------------------------------
1746 Filthy Delights #04 78:06 1990 Plum Prod. 08-Feb-95
- ------------------------------------------------------------------------------
6581 Filthy Fuckers #20 115:13 1995 CED/Zane 07-Jun-97
- ------------------------------------------------------------------------------
6604 Filthy Fuckers #51 120:10 1996 CED/Zane 08-Jun-97
- ------------------------------------------------------------------------------
3254 Finger Friggin' #02 59:18 1988 Pleasure Produc 23-May-96
- ------------------------------------------------------------------------------
1947 Fingers 74:23 1994 Legend 23-Feb-95
- ------------------------------------------------------------------------------
4612 Finishing Touch 84:40 1994 CDI/Dreamland 30-Aug-96
- ------------------------------------------------------------------------------
3230 Fire & Ice 77:11 1995 Western Visuals 23-Apr-96
- ------------------------------------------------------------------------------
2889 Fire Crackers 85:47 1995 Heatwave 03-Jan-96
- ------------------------------------------------------------------------------
2287 FIRM 66:48 1993 Deavo Media/Mid 02-Jun-95
- ------------------------------------------------------------------------------
3287 Firm Offer 69:06 1995 Sin City 08-May-96
- ------------------------------------------------------------------------------
3607 First Time Ever 85:56 1995 02-Jul-96
- ------------------------------------------------------------------------------
3533 Fishin' For Lust 76:24 1995 Nitro 24-Sep-96
- ------------------------------------------------------------------------------
1469 Fist Full Of Bimbos 80:51 1988 Fanta-Z/Cinderell 18-Nov-94
- ------------------------------------------------------------------------------
3571 Fistful of Bimbos 80:20 1994 Fantazy Ent 25-Jul-96
- ------------------------------------------------------------------------------
2634 Flesh and Boner 77:10 1994 Western Visuals 30-Aug-95
- ------------------------------------------------------------------------------
1660 Flesh And Fantasy *CPPA 75:28
- ------------------------------------------------------------------------------
3028 Flesh Mates 78:34 0 Erotic Angel/T & 03-Jan-96
- ------------------------------------------------------------------------------
5335C Flesh N' Lace #2 0
- ------------------------------------------------------------------------------
5018 Flesh Shopping Network 85:48 1995 Sin City 19-Nov-96
- ------------------------------------------------------------------------------
2186 Flexxx 80:10 1994 Video Team 01-May-95
- ------------------------------------------------------------------------------
2504 Flexxx #02 80:39 1995 Video Team 30-Aug-95
- ------------------------------------------------------------------------------
4561 Flying High #01 79:36 1993 Hollywood Video 23-Aug-96
- ------------------------------------------------------------------------------
4774 Flying High #02 74:28 1993 Hollywood Video 07-Oct-96
- ------------------------------------------------------------------------------
5152 Foolish Pleasure 78:18 n 08-Apr-97
- ------------------------------------------------------------------------------
3570 For Her Lips Only 74:54 1989 Fantazy Ent 25-Jul-96
- ------------------------------------------------------------------------------
3573 For Her Pleasure Only 73:35 1989 Fantazy Ent 25-Jul-96
- ------------------------------------------------------------------------------
2888 For Sale Bi - Owner 54:36 1993 Heatwave 03-Jan-96
- ------------------------------------------------------------------------------
3837 Forbidden Desires 69:08 1991 Fanta-Z Home Vi 07-Oct-96
- ------------------------------------------------------------------------------
0950 Forbidden Games 70:47 1990 Cinderella 01-Aug-94
- ------------------------------------------------------------------------------
3242 Forbidden Pleasures 78:13 1993 Forbidden Films 06-May-96
- ------------------------------------------------------------------------------
3836 Forbidden Pleasures 78:13 27-Jul-96
- ------------------------------------------------------------------------------
1056 Foreign Affairs 66:48 1992 Legend Video 20-Oct-94
- ------------------------------------------------------------------------------
1869 Foreign Affairs 72:57 1993 Video Team 08-Aug-95
- ------------------------------------------------------------------------------
5049 Foreign Asses 75:03 1996 Masked Pictures 21-Nov-96
- ------------------------------------------------------------------------------
3031 Foreskin Gump 74:43 1994 Legend Video 03-Jan-96
- ------------------------------------------------------------------------------
Page 36
<PAGE>
MASTER DATA BASE
- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
0929 Forever 67:55 1991 Legend Video 25-Aug-94
- ------------------------------------------------------------------------------
1298 Forever Yours 70:08 1991 Cinderella 17-Nov-94
- ------------------------------------------------------------------------------
3834 Fox Fever 81:30 26-Jul-96
- ------------------------------------------------------------------------------
3079 Franken Hunter**Grainy
Viz do not air 70:51 1993 Global Media 26-Feb-96
- ------------------------------------------------------------------------------
3495 Frankenpenis 83:29 1996 Leisure Time Co 28-Jun-96
- ------------------------------------------------------------------------------
3735 Frankenstein 81:15 1995 27-Jul-96
- ------------------------------------------------------------------------------
1251 Frat Girls Of Double D 78:47 1993 Plum Prod. 27-Oct-94
- ------------------------------------------------------------------------------
6283C French Finishing School 0
- ------------------------------------------------------------------------------
5097 Frenchman In Budapest 86:51 1995 Digital Media 08-Jan-97
- ------------------------------------------------------------------------------
2928 Frenzy 81:00 1993 03-Jan-96
- ------------------------------------------------------------------------------
3380 Fresh Meat-A Ghost
Story- 97:36 1994 John Leslie 24-May-96
- ------------------------------------------------------------------------------
4816 Fresh Meat Vol.#02 115:26 1996 Evil Angel/John 07-Oct-96
- ------------------------------------------------------------------------------
4510 Friday Night Fever 76:01 1990 01-Aug-96
- ------------------------------------------------------------------------------
5295C Friday The 13th #02 00:00
- ------------------------------------------------------------------------------
2000 Friends And Lovers #01 77:55 1991 Video Team 02-Mar-95
- ------------------------------------------------------------------------------
2033 Friends And Lovers #02 74:03 1991 Video Team 02-Mar-95
- ------------------------------------------------------------------------------
5168 Friends In Sex 99:41 Private 10-Feb-97
- ------------------------------------------------------------------------------
3315 From China With love 83:11 1993 Zane Ent. 07-May-96
- ------------------------------------------------------------------------------
4352 From Hand to Mouth 110:40 Odyssey Group 26-Jul-96
- ------------------------------------------------------------------------------
1299 From Kasha With Love 68:09 Cinderella 17-Nov-94
- ------------------------------------------------------------------------------
1672 From Rags To Riches 82:25 1988 Cinderella 19-Dec-94
- ------------------------------------------------------------------------------
1524 Fuck Lust #03 86:57 L.Prod. 28-Oct-94
- ------------------------------------------------------------------------------
1162 Fuck Meisters Of The
Universe 117:41 Zane Ent. 07-Sep-94
- ------------------------------------------------------------------------------
1078 Fucking On All Fours 70:02 1991 Hard 90s 22-Oct-94
- ------------------------------------------------------------------------------
6639 Full Moon Fever 60:01 1994 Ona Zee 25-Jul-97
- ------------------------------------------------------------------------------
1862 Full Nest 79:45 1992 Western Visuals 03-Jan-95
- ------------------------------------------------------------------------------
2074 Fun And Games 71:34 1994 Fat Dog 23-Feb-95
- ------------------------------------------------------------------------------
3157 Games Couples Play 80:36 1987 Hollywood Video 25-Mar-96
- ------------------------------------------------------------------------------
1656 Games Women Play 72:10 1980 Night Magic 20-Dec-94
- ------------------------------------------------------------------------------
6633 Gang Bang #01 70:36 1994 Nitsch CDI 25-Jul-97
- ------------------------------------------------------------------------------
2946 Gang Bang A L'Italienne 72:20 Europix 24-Jan-96
- ------------------------------------------------------------------------------
3865 Gang Bang Bitches #01 83:09 1991 16-Jul-96
- ------------------------------------------------------------------------------
3864 Gang Bang Bitches #02 82:45 1994 24-Jul-96
- ------------------------------------------------------------------------------
3859 Gang Bang Bitches #03 74:38 1994 18-Jul-96
- ------------------------------------------------------------------------------
3844 Gang Bang Bitches #04 83:10 1994
- ------------------------------------------------------------------------------
3845 Gang Bang Bitches #05 80:17 1994 18-Jul-96
- ------------------------------------------------------------------------------
3842 Gang Bang Bitches #06 72:25 1995 27-Jul-96
- ------------------------------------------------------------------------------
3843 Gang Bang Bitches #07 67:08 1995 27-Jul-96
- ------------------------------------------------------------------------------
4395 Gang Bang Bitches #08 66:50 1995 26-Jul-96
- ------------------------------------------------------------------------------
3840 Gang Bang Bitches #09 69:56 1995 27-Jul-96
- ------------------------------------------------------------------------------
4332 Gang Bang Bitches #10 71:27 1994 CDI/Plum 26-Jul-96
- ------------------------------------------------------------------------------
4336 Gang Bang Bitches #11 57:30 1995 CDI/Plum 26-Jul-96
- ------------------------------------------------------------------------------
4870 Gang Bang Bitches #12 70:03 1996 Ream-O-Rama 17-Oct-96
- ------------------------------------------------------------------------------
3852 Gang Bang Cummers 73:19 1993 27-Jul-96
- ------------------------------------------------------------------------------
Page 37
<PAGE>
MASTER DATA BASE
- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
3841 Gang Bang Face Bath #01 70:58 1993 27-Jul-96
- ------------------------------------------------------------------------------
3854 Gang Bang Face Bath #02 72:25 1994 27-Jul-96
- ------------------------------------------------------------------------------
3839 Gang Bang Face Bath #03 72:24 1994 27-Jul-96
- ------------------------------------------------------------------------------
3850 Gang Bang Fury 71:19 1992 27-Jul-96
- ------------------------------------------------------------------------------
3849 Gang Bang Jizz Jammers 72:28 1994 07-Oct-96
- ------------------------------------------------------------------------------
1525 Gang Bang Lust #03 75:37 L.Prod. 28-Oct-94
- ------------------------------------------------------------------------------
5068 Gang Bang O' Rama -
Next! 61:13 1996 CDI/Cinderella 10-Feb-97
- ------------------------------------------------------------------------------
5065 Gang Bang O'Rama #03 59:34 1996 CDI/Cinderella 14-Jan-97
- ------------------------------------------------------------------------------
5066 Gang Bang O'Rama-
Please Take A Nu 62:10 1996 CDI/Cinderella 10-Feb-97
- ------------------------------------------------------------------------------
6265 Gang Bang Princess 73:54 1996 Tight Ends Produ 04-Apr-97
- ------------------------------------------------------------------------------
3846 Gang Bang Pussy Cat 76:14 1992 18-Jul-96
- ------------------------------------------------------------------------------
4796 Gang Bang Story 77:50 1993 In-X-Cess Prod./ 16-Oct-96
- ------------------------------------------------------------------------------
3851 Gang Bang Thrills 75:15 1992 27-Jul-96
- ------------------------------------------------------------------------------
4400 Gang Bang Virgin #02 74:14 1995 Hollywood Video 26-Jul-96
- ------------------------------------------------------------------------------
3866 Gang Bang Virgins #1 76:54 0 Hollywood Video 27-Jul-96
- ------------------------------------------------------------------------------
3853 Gang Bang Wild Style 73:19 1993 27-Jul-96
- ------------------------------------------------------------------------------
6199 Gang Banging Whores 71:18 1996 24-Feb-97
- ------------------------------------------------------------------------------
2318 Gangbanger's Ball 56:32 1994 Global 24-Apr-96
- ------------------------------------------------------------------------------
3856 Gazongo 79:31 1995 26-Jul-96
- ------------------------------------------------------------------------------
6099 Geek's Pool Party 83:13 1996 Story Line Produ 24-Feb-97
- ------------------------------------------------------------------------------
4845 Geile Kussen Aus England 80:32 Turbo Films 12-Nov-96
- ------------------------------------------------------------------------------
2317 Geisha Princesses 54:51 1994 Global 24-Apr-96
- ------------------------------------------------------------------------------
2922 Gemini 78:59 1994 Sin City 03-Jan-96
- ------------------------------------------------------------------------------
4947 Gender Transender 61:55 1996 Plush Ent-/Blue C 05-Nov-96
- ------------------------------------------------------------------------------
4572 Gentlemen Prefer
She-Males 78:43 CDI/Pepper 23-Aug-96
- ------------------------------------------------------------------------------
1600 Geranalmo 72:00 11-Jan-95
- ------------------------------------------------------------------------------
3861 Get Lucky 78:56 1996 Nitro 12-Nov-96
- ------------------------------------------------------------------------------
4976 Getting Personal 80:58 1995 Plush Ent. 13-Nov-96
- ------------------------------------------------------------------------------
1276 Getting Ready 84:43 1986 Cinderella 05-Nov-94
- ------------------------------------------------------------------------------
0889 Ghost to Ghost 82:34 0 Coast To Coast 30-Aug-94
- ------------------------------------------------------------------------------
1043 Ghost Writer 70:45 1993 Legend 31-Oct-94
- ------------------------------------------------------------------------------
5279C Ghostess With The
Mostess 00:00 Blu-Pix
- ------------------------------------------------------------------------------
6571 Giclera Bien qui Gildera
La dernier 69:18 1996 Turbo Films 02-Jun-97
- ------------------------------------------------------------------------------
6608 Gigi Gives It Away 99:31 1995 Digital Media Gro 08-Jun-97
- ------------------------------------------------------------------------------
4954 Gigolo's Day 83:00 1995 Digital Media 05-Nov-96
- ------------------------------------------------------------------------------
2675 Gilligan's Bi-Land 76:23 0 Pleasure Produc 30-Sep-95
- ------------------------------------------------------------------------------
2500 Gimme Some Head 76:30 1995 Video Team 30-Aug-95
- ------------------------------------------------------------------------------
4791 Gina's Anal Gang Bang 68:46 1995 Sin City 16-Oct-96
- ------------------------------------------------------------------------------
2459 Ginger Lynn's Hawaiian
Scrapbook 86:23 1988 Gourmet Video C 30-Aug-95
- ------------------------------------------------------------------------------
6654 Girl Just Can't Help It
#7 73:28 ABV-USA
- ------------------------------------------------------------------------------
2354 Girl On The Run 77:34 1985 21-Jul-95
- ------------------------------------------------------------------------------
1559 Girl Toys 74:32 1986 Dreamland Ent. 03-Jan-95
- ------------------------------------------------------------------------------
6278 Girl, The Thief, & The
Detective 88:54 1995 Klimaxxx / Helen 04-Apr-97
- ------------------------------------------------------------------------------
3858 Girlfriends 68:19 1995 27-Jul-96
- ------------------------------------------------------------------------------
Page 38
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MASTER DATA BASE
- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
2910 Girlfriends 70:15 1992 03-Jan-96
- ------------------------------------------------------------------------------
2180 Girls And Guns 84:58 1993 Midnight Vid. 29-Mar-95
- ------------------------------------------------------------------------------
6216 Girls From Russia 86:03 1996 Western Visuals 01-Mar-97
- ------------------------------------------------------------------------------
0978 Girls Girls Girls 76:00 Cinderella 12-Sep-94
- ------------------------------------------------------------------------------
2554 Girls In The Hood #02 78:15 1992 Heat Wave Enter 29-Sep-95
- ------------------------------------------------------------------------------
3224 Girls Just Wanna Have
Girls 71:12 Janus Rainer 07-May-96
- ------------------------------------------------------------------------------
1878 Girls Of Double D #04 70:33 1994 Fat Dog 30-Jan-95
- ------------------------------------------------------------------------------
0670 Girls Of Double D #05
-D0670 84:08 1994 Cinderella 01-Aug-94
- ------------------------------------------------------------------------------
0979 Girls Of Double D #05
-D0979 80:05 1988 Cinderella 12-Sep-94
- ------------------------------------------------------------------------------
1312 Girls Of Double D #07 75:35 Cinderella 17-Nov-94
- ------------------------------------------------------------------------------
1313 Girls Of Double D #11 71:06 1990 Cinderella 17-Nov-94
- ------------------------------------------------------------------------------
1314 Girls Of Double D #12 72:00 Cinderella 17-Nov-94
- ------------------------------------------------------------------------------
1315 Girls Of Double D #14 72:10 1990 Cinderella 17-Nov-94
- ------------------------------------------------------------------------------
2709 Girls Of Double D -
Double Delight 82:14 1986 CD Prod. 18-Oct-95
- ------------------------------------------------------------------------------
3512 Girls Of Fantasex 66:17 1996 Nitro/Marc Hendr 25-Sep-96
- ------------------------------------------------------------------------------
6218 Girls Of Fantasex
Vol. 2 71:57 0 Nitro 01-Mar-97
- ------------------------------------------------------------------------------
2456 Girls Of Holland -
Sex Chef 75:48 1995 New Sensations 30-Aug-95
- ------------------------------------------------------------------------------
4640 Girls Of Sorority Row 98:03 1994 CDI/Video Team 30-Aug-96
- ------------------------------------------------------------------------------
4615 Girls Of Spring Break 107:40 1995 CDI/Video Team 30-Aug-96
- ------------------------------------------------------------------------------
3848 Girls of Summer 81:04 1993 27-Jul-96
- ------------------------------------------------------------------------------
4643 Girls Of The Athletic
Department 117:46 1995 CDI/Video Team 30-Aug-96
- ------------------------------------------------------------------------------
1961 Girls Of The Chorusline 78:57 1986 Classic Editions 23-Feb-95
- ------------------------------------------------------------------------------
4641 Girls Of The Ivy
League 109:08 1994 CDI/Video Team 30-Aug-96
- ------------------------------------------------------------------------------
1870 Girls Of The Packed #10 107:23 1994 Video Team 30-Jan-95
- ------------------------------------------------------------------------------
4642 Girls Of The Very Big
Eight 110:13 1994 CDIVideo Team 30-Aug-96
- ------------------------------------------------------------------------------
4313 Girls Off Duty 78:23 1994 CDI/S.Canterbur 25-Jul-96
- ------------------------------------------------------------------------------
2953 Girls On Duty 86:17 1994 Legend Video 03-Jan-96
- ------------------------------------------------------------------------------
3529 Girls Who Love B.W.C
#06 115:45 0
- ------------------------------------------------------------------------------
3487 Girls Who Love Big
Black Cocks 111:13 Odyssey Group 28-May-96
- ------------------------------------------------------------------------------
3488 Girls Who Love Big
White Cocks #02 115:01 Odyssey Group 24-May-96
- ------------------------------------------------------------------------------
3562 Girls Who Love Deep
Throat #03 112:04 Odyssey Group 25-Jul-96
- ------------------------------------------------------------------------------
3580 Girls Who Love John
Holmes 113:16 1989 Odyssey Group 25-Jul-96
- ------------------------------------------------------------------------------
1423 Girls Who Love Rough
And Raunchy 114:79 Zane Ent. 24-Jan-95
- ------------------------------------------------------------------------------
3044 Girls Will Be Boys #04 78:32 1993 Pleasure Produc 31-Jan-96
- ------------------------------------------------------------------------------
2469 Girls Will Be Boys #05 81:38 1993 Pleasure Produc 08-Sep-94
- ------------------------------------------------------------------------------
2472 Girls Will Be Boys #06 78:56 1993 Pleasure Produc 08-Sep-94
- ------------------------------------------------------------------------------
2349 Girls With Curves #02 80:48 1994 Metro Home Vide 27-Jun-95
- ------------------------------------------------------------------------------
4346 Girls with the Blue
Jeans Off 75:32 1989 Fantazy Ent 25-Jul-96
- ------------------------------------------------------------------------------
3862 Girly Video Magazine #01 88:29 Bella Pictures 27-Jul-96
- ------------------------------------------------------------------------------
4448 Girly Video Magazine
#02 103:59 1995 Bella Pictures 25-Jul-96
- ------------------------------------------------------------------------------
4457 Girly Video Magazine #03 88:27 0 Bella Pictures 25-Jul-96
- ------------------------------------------------------------------------------
4459 Girly Video Magazine #04 80:55 Bella Pictures 25-Jul-96
- ------------------------------------------------------------------------------
5085 Girly Video Magazine #05 81:24 1996 Al Borda Video 08-Jan-97
- ------------------------------------------------------------------------------
6198 Girly Video Magazine #06 89:31 1996 Al Borda Video 24-Feb-97
- ------------------------------------------------------------------------------
Page 39
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- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
0294 Give It To Me 80:07 1989 Hollywood Classi 14-Jun-94
- ------------------------------------------------------------------------------
3860 Glitz Tits #02 74:01 16-Jul-96
- ------------------------------------------------------------------------------
0320 Goddesses 88:04 1993 Amour Video 14-Jun-94
- ------------------------------------------------------------------------------
0064 Godmother 73:42 1992 All Worlds Video 14-Jun-94
- ------------------------------------------------------------------------------
3584 Going Pro 114:35 0 Odyssey Group 26-Jul-96
- ------------------------------------------------------------------------------
2295 Golden Girls 78:47 1983 Night Magic 01-May-95
- ------------------------------------------------------------------------------
3585 Golden Girls 112:17 Odyssey Group 26-Jul-96
- ------------------------------------------------------------------------------
3855 Gonzo Groups and
Gangbangs 69:35 27-Jul-96
- ------------------------------------------------------------------------------
4648 Good Boy - Bad Girl 68:41 CDI/Video Team 30-Aug-96
- ------------------------------------------------------------------------------
3561 Good Enough to Eat 74:58 1995 Fantazy Ent 25-Jul-96
- ------------------------------------------------------------------------------
2982 Good Evening Vietnam 68:00 1989 Western Visuals 31-Jan-96
- ------------------------------------------------------------------------------
4545 Good Girls Do 81:32
- ------------------------------------------------------------------------------
0117 Good Morning Saigon 87:59 1988 Zane Ent 14-Jun-94
- ------------------------------------------------------------------------------
2010 Good Vibrations 86:51 1993 Zane Ent. 23-Feb-95
- ------------------------------------------------------------------------------
3857 Graduation from FU 79:25 1992
- ------------------------------------------------------------------------------
1111 Grandma Does Dallas 79:20 1990 Loretta Sterling 09-Sep-94
- ------------------------------------------------------------------------------
3558 Great Balls of Fire 73:55 1990 Fantazy Ent 25-Jul-96
- ------------------------------------------------------------------------------
2930 Great Grandma Gets Her
Cookies 63:46 1994 Filmco Video 03-Jan-96
- ------------------------------------------------------------------------------
3303 Green Serrano Vol. #01 109:53 Pepper Prod. 10-May-96
- ------------------------------------------------------------------------------
3863 Group Therapy 88:56 27-Jul-96
- ------------------------------------------------------------------------------
1445 Guess Who Came At Dinner 86:36 Fanta-z/Cinderell 07-Nov-94
- ------------------------------------------------------------------------------
6256 Guilty As Sin 92:01 1996 Klimaxxx Prod. 04-Apr-97
- ------------------------------------------------------------------------------
5069 Gun Runner 71:31 1996 CDI/Cinderella 10-Feb-97
- ------------------------------------------------------------------------------
1813 Guttman's Hollywood
Vacation 73:20 1993 21-Feb-95
- ------------------------------------------------------------------------------
4627 Gypsy Queen 73:41 1995 Coast To Coast 30-Aug-96
- ------------------------------------------------------------------------------
1596 Halloweenie 71:38 1993 11-Jan-95
- ------------------------------------------------------------------------------
6554 Hamlet #01 77:15 1995 In-X-CESS 01-May-97
- ------------------------------------------------------------------------------
6519 Hamlet #02 77:21 1995 In-X-Cess Prod. 01-May-97
- ------------------------------------------------------------------------------
3544 Handle With Care 83:58 1989 Fantazy Ent 25-Jul-96
- ------------------------------------------------------------------------------
3887 Hands Off 74:47 1987 27-Jul-96
- ------------------------------------------------------------------------------
2439 Happy Ending 84:25 1994 Western Visuals 18-Jul-95
- ------------------------------------------------------------------------------
0788 Hard As A Rock 70:42 1993 Zane Ent. 01-Jun-94
- ------------------------------------------------------------------------------
5318C Hard Choices 00:00 Cabellero
- ------------------------------------------------------------------------------
4978 Hard Cum Cafe 86:53 Plush Ent./Blue C 14-Nov-96
- ------------------------------------------------------------------------------
2003 Hard For The Money 83:12 1991 21-Feb-95
- ------------------------------------------------------------------------------
3466 Hard Headed 75:25 1995 VPN 28-May-96
- ------------------------------------------------------------------------------
3886 Hard Line 84:52 1993 27-Jul-96
- ------------------------------------------------------------------------------
2177 Hard On Copy 87:39 1994 Western Visuals 01-Mar-95
- ------------------------------------------------------------------------------
1845 Hard Ride 89:08 1992 Western Visuals 03-Jan-95
- ------------------------------------------------------------------------------
0145 Hard Road To Victory 88:49 Western Visuals 14-Jun-94
- ------------------------------------------------------------------------------
2415 Hard Times 79:01 1983 Western Visuals 18-Jul-95
- ------------------------------------------------------------------------------
1286 Hard To Thrill 70:35 1991 Cinderella 17-Nov-94
- ------------------------------------------------------------------------------
1499 Hardballers #02 54:19 Cinderella 19-Dec-94
- ------------------------------------------------------------------------------
1500 Hardballers #03 54:13 Cinderella 04-Nov-94
- ------------------------------------------------------------------------------
Page 40
<PAGE>
MASTER DATA BASE
- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
1501 Hardballers #04 54:20 1994 Cinderella 19-Dec-94
- ------------------------------------------------------------------------------
1502 Hardballers #05 54:24 Cinderella 04-Nov-94
- ------------------------------------------------------------------------------
1503 Hardballers #06 54:23 Cinderella 30-Jan-95
- ------------------------------------------------------------------------------
1026 Hardcore Cafe Revisited 70:25 1992 Howard Beach 07-Oct-94
- ------------------------------------------------------------------------------
4930 Hardcore Confidential 71:49 1996 Tight Ends Prod 15-Nov-96
- ------------------------------------------------------------------------------
6268 Hardcore Confidential
#02 83:14 1996 Tight Ends Prod. 04-Apr-97
- ------------------------------------------------------------------------------
6269 Hardcore Debutantes #01 79:39 1996 Tight Ends Prod. 06-May-97
- ------------------------------------------------------------------------------
6266 Hardcore Debutantes #02 87:49 1997 Tight Ends Prod. 04-Apr-97
- ------------------------------------------------------------------------------
6267 Hardcore Interracial #01 86:59 1997 Tight Ends Prod. 04-Apr-97
- ------------------------------------------------------------------------------
4635 Harlem Honies #01 106:34 1993 Coast To Coast 30-Aug-96
- ------------------------------------------------------------------------------
4634 Harlem Honies #02 116:01 1993 Coast To Coast 30-Aug-96
- ------------------------------------------------------------------------------
2534 Haunted Nights 110:37 1994 Wicked Pictures 30-Aug-95
- ------------------------------------------------------------------------------
0068 Haunted Passions 86:58 1990 Filmco Releasing 01-Jun-94
- ------------------------------------------------------------------------------
0955 Haunting Dreams 73:18 1993 Las Vegas Video 16-Sep-94
- ------------------------------------------------------------------------------
1074 Haunting Dreams #02 72:06 1993 Las Vegas Video 31-Oct-94
- ------------------------------------------------------------------------------
1300 Hawaii Reflections 86:55 1990 Cinderella 17-Nov-94
- ------------------------------------------------------------------------------
3885 Hawaii Vice #01 74:55 1988 27-Jul-96
- ------------------------------------------------------------------------------
3884 Hawaii Vice #02 87:08 1989 27-Jul-96
- ------------------------------------------------------------------------------
4485 Hawaii Vice #03 77:37 1989 01-Aug-96
- ------------------------------------------------------------------------------
3891 Hawaii Vice #04 80:37 1989 28-Jul-96
- ------------------------------------------------------------------------------
3883 Hawaii Vice #05 88:03 1989 28-Jul-96
- ------------------------------------------------------------------------------
3890 Hawaii Vice #06 73:27 1989 28-Jul-96
- ------------------------------------------------------------------------------
3889 Hawaii Vice #07 74:54 1989 28-Jul-96
- ------------------------------------------------------------------------------
3892 Hawaii Vice #08 79:26 1989 28-Jul-96
- ------------------------------------------------------------------------------
3175 Hawaiian Buttwatch 71:23 1995 Sunshine Films 23-Apr-96
- ------------------------------------------------------------------------------
4626 Hawaiian Heat Beach
Tramps 86:39 1995 Coast To Coast 30-Aug-96
- ------------------------------------------------------------------------------
4633 Hawaiian Snatch Shots 85:05 1995 Coast To Coast 30-Aug-96
- ------------------------------------------------------------------------------
1875 Head Co-ed Society 71:54 1989
- ------------------------------------------------------------------------------
0828 Head First 0
- ------------------------------------------------------------------------------
3876 Head Hunters-Blow Job
Blvd. Vol. 1 85:09 1993 28-Jul-96
- ------------------------------------------------------------------------------
0789 HeadTalk 70:38 1991 Zane Ent. 01-Jun-94
- ------------------------------------------------------------------------------
3888 Headlines 83:31 1992 28-Jul-96
- ------------------------------------------------------------------------------
0863 Heart Breaker 68:02 1995 Cinderella 01-Aug-94
- ------------------------------------------------------------------------------
3874 Heartbeat 86:06 1994 28-Jul-96
- ------------------------------------------------------------------------------
0 Heather Hunter - The
True Story 60:00 28-Aug-97
- ------------------------------------------------------------------------------
2958 Heather Hunter's
Bedtime Stories 84:29 1992 Global Media 31-Jan-96
- ------------------------------------------------------------------------------
4559 Heather's Home Movies 76:01 23-Aug-96
- ------------------------------------------------------------------------------
2511 Heather: The Ultimate
Dream 98:22 1993 08-Sep-95
- ------------------------------------------------------------------------------
1894 Heaven Scent 83:26 1993 Zane Ent. 24-Jan-95
- ------------------------------------------------------------------------------
XXX Heavy Breathing 0
- ------------------------------------------------------------------------------
5079 Heet-Seekers 85:22 1996 Plush Ent. 23-Dec-96
- ------------------------------------------------------------------------------
6658 Heidi's High Heeled
Hookers 81:13 1995 CED 03-Sep-97
- ------------------------------------------------------------------------------
3402 Heidigate 69:45 1993 Hollywood Video 19-Aug-97
- ------------------------------------------------------------------------------
6273 Helen & Louise 91:38 1995 Klimaxxx Prod./ 09-Apr-97
- ------------------------------------------------------------------------------
Page 41
<PAGE>
MASTER DATA BASE
- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
6674 Helen and Louise #2 106:21 1995 Helen Duval Ente 14-Aug-97
- ------------------------------------------------------------------------------
4829 Hell Riders 68:02 1995 Sin City 20-Sep-96
- ------------------------------------------------------------------------------
1857 Hello Norma Jean 74:56 1994 Video Team 20-Jan-95
- ------------------------------------------------------------------------------
0185 Henri Pachard #04 -
Aggressive Wome 70:39 Henri Pachard 14-Jun-94
- ------------------------------------------------------------------------------
0344 Heraldo 78:51 1990 Double D. Prod. 14-Jun-94
- ------------------------------------------------------------------------------
3425 Here Comes Anna Malle;
Anal Angel 117:06 1994 Homegrown Vide 19-Aug-97
- ------------------------------------------------------------------------------
3429 Here Comes Sheena;
Godess of Lust 88:56 1994 Homegrown Vide 19-Aug-97
- ------------------------------------------------------------------------------
3574 Here, Eat This 71:58 Fantazy Ent 25-Jul-96
- ------------------------------------------------------------------------------
2149 Herman's Bed 72:12 1993 Hollywood Video 23-Sep-94
- ------------------------------------------------------------------------------
3264 Herman's Other Head 75:12 1992 Las Vegas Ent. 07-May-96
- ------------------------------------------------------------------------------
4810 Hershie Highway #02 82:55 1989 Hollywood Video 17-Oct-96
- ------------------------------------------------------------------------------
4564 Hershie Highway #03 80:00 1990 Hollywood Video 23-Aug-96
- ------------------------------------------------------------------------------
4568 Hershie Highway #04 82:43 1990 Hollywood Video 23-Aug-96
- ------------------------------------------------------------------------------
1994 Hexxxed 75:02 1994 Video Team 23-Feb-95
- ------------------------------------------------------------------------------
2091 Hidden Agenda 83:44 1992 Xcitement 01-May-95
- ------------------------------------------------------------------------------
0352 Hidden Desire 81:24 Hollywood Video 23-Sep-94
- ------------------------------------------------------------------------------
1123 Hidden Desires 71:17 Cinderella 07-Sep-94
- ------------------------------------------------------------------------------
2576 High Heel Harlots #01 83:14 1993 Silver Foxx Produ 29-Sep-95
- ------------------------------------------------------------------------------
1663 Hill Street Blacks 70:44 1985 Four Rivers Inc. 24-Jan-95
- ------------------------------------------------------------------------------
1664 Hill Street Blacks #02 65:55 1985 Four Rivers 24-Jan-95
- ------------------------------------------------------------------------------
2598 Hindfield 76:48 1995 Odyssey Group 08-Sep-95
- ------------------------------------------------------------------------------
1837 Histoires Cochonnes 89:46 Love Prod. 24-Jan-95
- ------------------------------------------------------------------------------
2298 Historic Erotica -
Bunghole Babe-O-Ra 54:29 1994 24-May-95
- ------------------------------------------------------------------------------
2297 Historic Erotica -
European Edition 55:29
- ------------------------------------------------------------------------------
6253 Hit and Run 78:54 1997 Cinderella 04-Apr-97
- ------------------------------------------------------------------------------
6499 Hitch Hiker #06 75:06 1994 Digital Media Grp 07-May-97
- ------------------------------------------------------------------------------
2694 Hitch Hiker #09 -
Back Road Detour 85:24 1995 Filmwest 18-Oct-95
- ------------------------------------------------------------------------------
2229 Ho-Ho-Ho 82:38 1993 Wicked Pictures 24-Apr-95
- ------------------------------------------------------------------------------
0355 Hocus Poke-Us 77:07 Hollywood Video 23-Sep-94
- ------------------------------------------------------------------------------
3403 Hole In One 70:00 1994 Hollywood Video 28-Aug-97
- ------------------------------------------------------------------------------
6214 Hollywood Hookers 90:03 1996 CED, Inc. 01-Mar-97
- ------------------------------------------------------------------------------
5173 Hollywood Legs 77:54 Nitro 08-Jan-97
- ------------------------------------------------------------------------------
4670 Hollywood On Ice 87:16 1995 CDI/Video Team 04-Sep-96
- ------------------------------------------------------------------------------
4788 Hollywood Scandal 88:58 1993 In-X-Cess Prod. 16-Oct-96
- ------------------------------------------------------------------------------
6298 Hollywood Studs 78:22 Fat Dog 07-May-97
- ------------------------------------------------------------------------------
1998 Hollywood Temps 83:33 1993
- ------------------------------------------------------------------------------
1489 Holy Cow What A Set
Of Knockers #02 52:41 0 Cinderella 04-Nov-94
- ------------------------------------------------------------------------------
1490 Holy Cow What A Set
Of Knockers #03 53:16 0 Cinderella 04-Nov-94
- ------------------------------------------------------------------------------
6053 Home But Not Alone 0 Western Visuals
- ------------------------------------------------------------------------------
4594 Home Movie Productions
#04 50:30 1991 Dreamland Ent. 23-Aug-96
- ------------------------------------------------------------------------------
4595 Home Movie Productions
#07 49:49 1991 Dreamland Ent. 23-Aug-96
- ------------------------------------------------------------------------------
1885 Home Movies #01 53:58 1989 Dreamland Ent. 24-Jan-95
- ------------------------------------------------------------------------------
1897 Home Movies #02 50:54 1989 Dreamland Ent. 24-Jan-95
- ------------------------------------------------------------------------------
2112 Home Movies #05 54:34 1990 Dreamland Ent. 16-Feb-95
- ------------------------------------------------------------------------------
Page 42
<PAGE>
MASTER DATA BASE
- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
2104 Mome Movies #08 53:41 1990 Dreamland Ent. 16-Feb-95
- ------------------------------------------------------------------------------
1585 Home Movies Edition #06 51:16 1990 Home Video Prod 03-Jan-95
- ------------------------------------------------------------------------------
6701 Homegrown Video #313 52:08 1995 Xplor Meida 28-Aug-97
- ------------------------------------------------------------------------------
6702 Homegrown Video #402 82:00 1993 Xplor Media 28-Aug-97
- ------------------------------------------------------------------------------
6703 Homegrown Video #405 85:44 1994 Xplor Media 28-Aug-97
- ------------------------------------------------------------------------------
6704 Homegrown Video #406 0 Xplor Media 29-Aug-97
- ------------------------------------------------------------------------------
6705 Homegrown Video #407 -
Cum Shot Re 114:45 1994 Xplor Media 28-Aug-97
- ------------------------------------------------------------------------------
2873 Homegrown Video #408 -
Rear Action 119:59 1992 Western Visuals 03-Jan-96
- ------------------------------------------------------------------------------
6706 Homegrown Video #409 87:49 1993 Xplor Media 28-Aug-97
- ------------------------------------------------------------------------------
6684 Homegrown Video #422 85:50 1994 Homegrown Vide 28-Aug-97
- ------------------------------------------------------------------------------
6685 Homegrown Video #424 118:15 1994 Homegrown Vide 28-Aug-97
- ------------------------------------------------------------------------------
6686 Homegrown Video #425 114:13 1994 Homegrown Vide 28-Aug-97
- ------------------------------------------------------------------------------
6687 Homegrown Video #426 118:42 1994 Homegrown Vide 28-Aug-97
- ------------------------------------------------------------------------------
6689 Homegrown Video #427 118:08 1994 Homegrown Vide 28-Aug-97
- ------------------------------------------------------------------------------
6690 Homegrown Video #429 88:06 1994 Homegrown Vide 28-Aug-97
- ------------------------------------------------------------------------------
6691 Homegrown Video #430 0 Xplor Media 29-Aug-97
- ------------------------------------------------------------------------------
6692 Homegrown Video #432 89:08 1994 Homegrown Vide 28-Aug-97
- ------------------------------------------------------------------------------
6693 Homegrown Video #433 121:47 1994 Homegrown Vide 28-Aug-97
- ------------------------------------------------------------------------------
6694 Homegrown Video #434 0 Xplor Media 29-Aug-97
- ------------------------------------------------------------------------------
2555 Homegrown Video #445 -
Sex Kittens 87:51 1995 Home Grown Vid 08-Sep-95
- ------------------------------------------------------------------------------
6676 Homegrown Video 410
Seattle Sex 87:45 1993 Homegrown Vide 14-Aug-97
- ------------------------------------------------------------------------------
6677 Homegrown Video 412
Cum Hungry 86:11 1993 Homegrown Vide 14-Aug-97
- ------------------------------------------------------------------------------
6678 Homegrown Video 413 84:50 1993 Homegrown Vide 14-Aug-97
- ------------------------------------------------------------------------------
6679 Homegrown Video 414 86:36 1993 Homegrown Vide 14-Aug-97
- ------------------------------------------------------------------------------
6680 Homegrown Video 416 85:29 1993 Homegrown Vide 14-Aug-97
- ------------------------------------------------------------------------------
6681 Homegrown Video 417 85:33 1994 Homegrown Vide 14-Aug-97
- ------------------------------------------------------------------------------
6682 Homegrown Video 418 85:30 1994 Homegrown Vide 14-Aug-97
- ------------------------------------------------------------------------------
6683 Homegrown Video 419 86:32 1994 Homegrown Vide 14-Aug-97
- ------------------------------------------------------------------------------
6695 Homegrown Video 435 85:20 1994 Homegrown Vide 14-Aug-97
- ------------------------------------------------------------------------------
6696 Homegrown Video 436 85:53 1994 Homegrown Vide 14-Aug-97
- ------------------------------------------------------------------------------
6697 Homegrown Video 442 84:50 1994 Homegrown Vide 14-Aug-97
- ------------------------------------------------------------------------------
2275 Homemade Pepper #01 87:50 Pepper Prod.? 31-Mar-95
- ------------------------------------------------------------------------------
2281 Homemade Pepper #02 102:20 1994 Pepper Prod. 31-Mar-95
- ------------------------------------------------------------------------------
2282 Homemade Pepper #03 107:24 1991 Pepper Prod. 31-Mar-95
- ------------------------------------------------------------------------------
2872 Honey Dipped Ebony 79:21 1992 Western Visuals 03-Jan-96
- ------------------------------------------------------------------------------
0727 Honey Drippers 73:00 Rosebud Prod. 01-Jun-94
- ------------------------------------------------------------------------------
3875 Hooked 64:28 1992 28-Jul-96
- ------------------------------------------------------------------------------
6601 Hooker Diaries 77:05 1997 Ona Zee/L.B.O.E 08-Jun-97
- ------------------------------------------------------------------------------
1946 Hookers Of Hollywood 79:12 1994 Legend 23-Feb-95
- ------------------------------------------------------------------------------
0829 Hopelessly Romantic 84:02
- ------------------------------------------------------------------------------
4963 Hornet's Nest 83:57 1996 Ona Zee Prod. 11-Nov-96
- ------------------------------------------------------------------------------
3868 Horny Bulls 85:56 1994 28-Jul-96
- ------------------------------------------------------------------------------
1713 Horny Henry's
Peeping Adventure 119:11 1994 Totally Tastless 30-Nov-94
- ------------------------------------------------------------------------------
3052 Horny Orgy 68:13 1993 Hungarian Goula 02-Feb-96
- ------------------------------------------------------------------------------
Page 43
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- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
5011C Hose Jobs**CPPA 72:20 1995
- ------------------------------------------------------------------------------
2976 Hospitality Sweet 82:28 1988 Western Visuals 31-Jan-96
- ------------------------------------------------------------------------------
6226 Hot Amateur Nights 106:14
- ------------------------------------------------------------------------------
4650 Hot Amber Nights 73:03 1987 Coast To Coast 30-Aug-96
- ------------------------------------------------------------------------------
2085 Hot And Heavy 75:53 1988 08-Feb-95
- ------------------------------------------------------------------------------
2491 Hot And Horney
Amateurs #03 87:56 1994 Passion Producti 22-Aug-95
- ------------------------------------------------------------------------------
2425 Hot And Horny
Amateurs #01 88:32 1993 Passion 18-Jul-95
- ------------------------------------------------------------------------------
2575 Hot And Horny
Amateurs #04 74:14 1994 08-Sep-95
- ------------------------------------------------------------------------------
1128 Hot And Nasty #01 103:03 Cinderella 07-Sep-94
- ------------------------------------------------------------------------------
1127 Hot And Nasty #03 100:00 Cinderella 07-Sep-94
- ------------------------------------------------------------------------------
1149 Hot And Nasty #04 96:34 Cinderella 22-Oct-94
- ------------------------------------------------------------------------------
2068 Hot And Nasty #11 94:36 1991 Cinderella 23-Feb-95
- ------------------------------------------------------------------------------
2067 Hot And Nasty 12 99:17 1990
- ------------------------------------------------------------------------------
3468 Hot Blooded 83:15 1985 VPN 28-May-96
- ------------------------------------------------------------------------------
0856 Hot Cherries 86:35 1990 Coast To Coast 06-May-94
- ------------------------------------------------------------------------------
6622 Hot Dolls 87:23 1997 Ona Zee Prod. 17-Jul-97
- ------------------------------------------------------------------------------
2359 Hot Flashes 61:45 1979 Historic Erotica 27-Jun-95
- ------------------------------------------------------------------------------
4842 Hot Honeys In Heat
vol.#20 104:35 Fat Dog 08-Nov-96
- ------------------------------------------------------------------------------
3183 Hot in The Saddle 75:04 1994 Erotic Angel 25-Mar-96
- ------------------------------------------------------------------------------
3564 Hot Ladies Of Leather 111:39 Odyssey Group 19-Jun-96
- ------------------------------------------------------------------------------
1287 Hot Licks 75:27 Cinderella 30-Jan-95
- ------------------------------------------------------------------------------
0307 Hot Lips 88:13 Erotic Fantasy 14-Jun-94
- ------------------------------------------------------------------------------
2448 Hot Lunch Club 77:36 1986 Western Visuals 28-Aug-95
- ------------------------------------------------------------------------------
6035 Hot Malibu 90:48 Casanova Produ 28-Jan-97
- ------------------------------------------------------------------------------
2244 Hot Model 82:12 1992 27-Mar-95
- ------------------------------------------------------------------------------
5203 Hot Parts 80:38 1996 Nitro Production 14-Jan-97
- ------------------------------------------------------------------------------
3873 Hot Property 98:32 1994 28-Jul-96
- ------------------------------------------------------------------------------
4969 Hot Property 85:52 1994 Dreamland Ent. 13-Nov-96
- ------------------------------------------------------------------------------
1485 Hot Service 79:33 1990 Cinderella 30-Nov-94
- ------------------------------------------------------------------------------
0591 Hot Shots 68:57 1981 Vidco Ent. 01-Jun-94
- ------------------------------------------------------------------------------
1200 Hot Spot 68:10 Cinderella 05-Nov-94
- ------------------------------------------------------------------------------
3881 Hot Summer Knights 71:28 1991 28-Jul-96
- ------------------------------------------------------------------------------
2509 Hot Talk Radio 87:59 1989 08-Sep-95
- ------------------------------------------------------------------------------
3151 Hot Wishes 81:54 1995 VPN 03-Jan-96
- ------------------------------------------------------------------------------
4971 Hot Witness for the
Prosecution 79:20 1995 Digital Media/XY 13-Nov-96
- ------------------------------------------------------------------------------
3382 Hotel De Passe 70:21 0 15-May-96
- ------------------------------------------------------------------------------
3321 Hotel Guard 91:52 1995 15-May-96
- ------------------------------------------------------------------------------
3882 Hotel Sodom #01 73:26 1995 28-Jul-96
- ------------------------------------------------------------------------------
3878 Hotel Sodom #02 82:37 1995 28-Jul-96
- ------------------------------------------------------------------------------
3879 Hotel Sodom #03 83:36 1995 28-Jul-96
- ------------------------------------------------------------------------------
3870 Hotel Sodom #04 86:13 1995 28-Jul-96
- ------------------------------------------------------------------------------
4399 Hotel Sodom #05 82:44 1995 26-Jul-96
- ------------------------------------------------------------------------------
3872 Hotel Sodom #06 82:59 1995 28-Jul-96
- ------------------------------------------------------------------------------
3871 Hotel Sodom #07 82:47 1995 16-Jul-96
- ------------------------------------------------------------------------------
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- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
4521 Hotel Sodom #08 82:52 1995 01-Aug-96
- ------------------------------------------------------------------------------
3880 Hotel Sodom #09 88:34 1995 16-Jul-96
- ------------------------------------------------------------------------------
3776 Hotel Sodom #10 79:00 1996 03-Jul-96
- ------------------------------------------------------------------------------
4718 Hotter Than July 69:02 02-Sep-97
- ------------------------------------------------------------------------------
3451 Hourman 90:12 1991 Coast To Coast 06-May-96
- ------------------------------------------------------------------------------
2383 House Of Lust 74:01 1985 Ron King & Ricky 20-Jun-95
- ------------------------------------------------------------------------------
0040 House Of Strange Desires 84:38 1984 Now Showing 14-Jun-94
- ------------------------------------------------------------------------------
4665 House Of The Rising Sun 77:35 1993 CDI/Video Team 04-Sep-96
- ------------------------------------------------------------------------------
6630 Howard Sperm's Private
Parties 78:24 1994 Ona Zee 25-Jul-97
- ------------------------------------------------------------------------------
1699 Huge Bras #01 107:15 Western Visuals 20-Dec-94
- ------------------------------------------------------------------------------
1731 Huge Bras #04 107:19 1991 Western Visuals 11-Jan-95
- ------------------------------------------------------------------------------
1736 Huge Bras #05 107:39 1991
- ------------------------------------------------------------------------------
1701 Huge Bras #06 113:35 1991 Western Visuals 11-Jan-95
- ------------------------------------------------------------------------------
2590 Hunchback 81:28 1991 Pleasure Produc 05-Oct-95
- ------------------------------------------------------------------------------
2875 Hungarian DP Party 66:42 1993 Goulash Ent. 04-Jan-96
- ------------------------------------------------------------------------------
3877 Hungry #01 82:37 1993 28-Jul-96
- ------------------------------------------------------------------------------
3142 Hungry #02 74:04 1993 Sin City 28-Feb-96
- ------------------------------------------------------------------------------
5070 Husbands 81:56 0 Digital Media/RD 03-Dec-96
- ------------------------------------------------------------------------------
2513 Hyapatia Obsessed 72:16 1993 Executive 28-Aug-95
- ------------------------------------------------------------------------------
5204 Hypnotic Hookers 84:50 1996 Nitro Production 14-Jan-97
- ------------------------------------------------------------------------------
6236 Hypnotic Hookers 2 116:49 1996 Nitro 03-Mar-97
- ------------------------------------------------------------------------------
3869 Hypnotic Passions 76:03 1993 28-Jul-96
- ------------------------------------------------------------------------------
1213 Hypnotyx 75:07 Bahia 05-Nov-94
- ------------------------------------------------------------------------------
1432 I Can't Get No
Satisfaction 81:54 1988 Cinderella 28-Oct-94
- ------------------------------------------------------------------------------
1065 I Cream With Genie 73:38 1990 The Dirty Boys 08-Aug-94
- ------------------------------------------------------------------------------
3247 I Found My Thrill On
Cheri Hill 83:04 1988
- ------------------------------------------------------------------------------
1893 I Love Juicy 87:32 1993 Zane Ent. 24-Jan-95
- ------------------------------------------------------------------------------
2813 I Love Sex 75:28 1989 Penguin Prod. 16-Jan-96
- ------------------------------------------------------------------------------
3904 I Made Marion 79:33 1993 28-Jul-96
- ------------------------------------------------------------------------------
3907 I Said A Butt Lite 82:52 1990 16-Jul-96
- ------------------------------------------------------------------------------
3906 I Segretti Di Madame
"X" #02 68:55 0 Ona Zee Prod. 28-Jul-96
- ------------------------------------------------------------------------------
3905 I Segretti Di Madame
"X" *Cppa 55:03 Ona Zee Prod. 28-Jul-96
- ------------------------------------------------------------------------------
3896 I Wanna Be a Bad Girl 68:22 1986 28-Jul-96
- ------------------------------------------------------------------------------
1921 I Want A Divorce 83:21 1993 Zane Ent. 01-Mar-95
- ------------------------------------------------------------------------------
2663 I Want To Be Bad 81:13 1984 Cal Vista 05-Oct-95
- ------------------------------------------------------------------------------
5334C I Want You 00:00
- ------------------------------------------------------------------------------
3547 I Want Your Sex 71:33 1990 Fantazy Ent 25-Jul-96
- ------------------------------------------------------------------------------
3898 I'll Take Another
Butt Lite 84:36
- ------------------------------------------------------------------------------
3545 I'm No Brat 74:02 1991 Fantazy Ent 25-Jul-96
- ------------------------------------------------------------------------------
0297 I'm No Dummy 83:01 Hollywood Video 14-Jun-94
- ------------------------------------------------------------------------------
0038 I've Never Done This
Before 71:06
- ------------------------------------------------------------------------------
6529 II culo di gilda 69:58 N/A 01-May-97
- ------------------------------------------------------------------------------
6030 II Guardonie 88:59 0 Ona Zee/Casano 28-Jan-97
- ------------------------------------------------------------------------------
3383 IL Marito Che Guarda 69:20 0 01-May-96
- ------------------------------------------------------------------------------
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- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
3903 II Medico Del Coppie 71:53 0 31-Dec-95
- ------------------------------------------------------------------------------
6530 II Produtione 91:06 Brividi Italian 01-May-97
- ------------------------------------------------------------------------------
3385 II Profumo Di Mia Moglie 80:50 Turbo Films 08-May-96
- ------------------------------------------------------------------------------
0034 Illusions Of Ecstasy 79:00 1985
- ------------------------------------------------------------------------------
2196 Im Bett Mit Sybylle 78:01 1992 27-Mar-95
- ------------------------------------------------------------------------------
0023 Imagination Exposed 70:14 Loretta Sterling 01-Jun-94
- ------------------------------------------------------------------------------
0930 Imagine 75:43 Las Vegas Video 16-Sep-94
- ------------------------------------------------------------------------------
6274 Immortal Lust 72:43 1996 Klimaxxx Prod. 04-Apr-97
- ------------------------------------------------------------------------------
3144 Impact 83:00 1995 N/A 28-Feb-96
- ------------------------------------------------------------------------------
6049 Impulse #01 90:51 0 Ona Zee/La Munc 06-Jun-97
- ------------------------------------------------------------------------------
6033 Impulse #05 00:00 Ona Zee/Casano 10-Feb-97
- ------------------------------------------------------------------------------
6034 Impulse #06 00:00 Ona Zee/La Munc 10-Feb-97
- ------------------------------------------------------------------------------
6037 Impulse #08 86:03 1996 Ona Zee/Casano 10-Feb-97
- ------------------------------------------------------------------------------
6036 Impulse #09 00:00 Ona Zee/Casano 10-Feb-97
- ------------------------------------------------------------------------------
xxx Impulse #10 00:00 Ona Zee 10-Feb-97
- ------------------------------------------------------------------------------
6038 Impulse #11 98:25 0 Ona Zee/Casano 10-Feb-97
- ------------------------------------------------------------------------------
6510 Impulse #13 - Euro Pink 90:28 1997 Ona Zee/Brick H 28-Apr-97
- ------------------------------------------------------------------------------
6048 Impulse #2 00:00
- ------------------------------------------------------------------------------
2883 In And Out With John
Leslie**CPPA 84:34 1988
- ------------------------------------------------------------------------------
2146 In Loving Color #01 79:33 1992 Video Team 27-Jun-95
- ------------------------------------------------------------------------------
4752 In Loving Color #02 59:53 CDI/Video Team 24-Sep-96
- ------------------------------------------------------------------------------
4661 In Loving Color #03 76:48 1993 CDI/Video Team 04-Sep-96
- ------------------------------------------------------------------------------
4662 In Loving Color #04
**poor viz 75:01 1993 CDI/Video Team 04-Sep-96
- ------------------------------------------------------------------------------
5320C In Search Of The Golden
Bone 00:00
- ------------------------------------------------------------------------------
1595 In Search Of Wild Beaver 72:23 1986 Dreamland Ent. 03-Jan-95
- ------------------------------------------------------------------------------
3893 In the Bush 84:53 1994 28-Jul-96
- ------------------------------------------------------------------------------
1945 In The Heat Of The
Moment 81:52 1990 Intropics 23-Feb-95
- ------------------------------------------------------------------------------
1086 In Your Face 77:16 1991 08-Aug-94
- ------------------------------------------------------------------------------
1185 In Your Face Again 72:54 1993 08-Aug-94
- ------------------------------------------------------------------------------
2193 Incesto Fatale 83:05 1992 27-Mar-95
- ------------------------------------------------------------------------------
2978 Inches For Keisha 77:55 1988 Western Visuals 31-Jan-96
- ------------------------------------------------------------------------------
3897 Incontri Anali Sul
Danubio 75:08 1996 Ona Zee Prod. 28-Jul-96
- ------------------------------------------------------------------------------
3251 Indecent Interview 100:57 1995 Pleasure Produc 23-May-96
- ------------------------------------------------------------------------------
6610 Indecent Obsession 91:56 1995 CED/Barbie Brid 08-Jun-97
- ------------------------------------------------------------------------------
2159 Indecent Wives 87:22 1985 Hollywood Video 29-Mar-95
- ------------------------------------------------------------------------------
4481 Indescretions 68:34 1991 01-Aug-96
- ------------------------------------------------------------------------------
0439 Inflamed 81:28 1993 Now Showing 23-Sep-94
- ------------------------------------------------------------------------------
1812 Inn Of Sin 70:40 1987 Video Team 20-Jan-95
- ------------------------------------------------------------------------------
5321C Innocence Lost 00:00
- ------------------------------------------------------------------------------
0104 Innocent Obsessions 73:00 Filmco/Loretta St 01-Jun-94
- ------------------------------------------------------------------------------
3908 Inogi Momento 84:42 Ona Zee Prod. 24-Jul-96
- ------------------------------------------------------------------------------
5308C Insatiable #02 00:00
- ------------------------------------------------------------------------------
5235 Insatiable Dreams 80:27 0 25-Jun-97
- ------------------------------------------------------------------------------
1768 Insatiable Immigrants 74:00 1989 Video Team 20-Jan-95
- ------------------------------------------------------------------------------
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- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
2719 Insatiaable Nurses 78:01 1992 Abandon 18-Oct-95
- ------------------------------------------------------------------------------
5396C Insatible 00:00
- ------------------------------------------------------------------------------
0893 Inside Job 77:31 N/A 30-Aug-94
- ------------------------------------------------------------------------------
2761 Inside Of Me 77:20 1993 Pleasure Produc 03-Jan-96
- ------------------------------------------------------------------------------
0148 Inside Sharon Mitchell 78:02 1988 Zane Ent. 14-Jun-94
- ------------------------------------------------------------------------------
3901 Intercourse With the
Vampire #02 71:03 1994 28-Jul-96
- ------------------------------------------------------------------------------
4808 Interlude Of Lust 83:53 1993 Hollywood Video 17-Oct-96
- ------------------------------------------------------------------------------
1004 Internal Affair 62:56 1992
- ------------------------------------------------------------------------------
2258 International Affairs 76:13 1994 Pleasure Produc 01-May-95
- ------------------------------------------------------------------------------
3065 International Amateurs
#03 75:04 1990 Elite Visuals 31-Jan-96
- ------------------------------------------------------------------------------
2754 International Amateurs
#05 73:42 1990 11-Dec-95
- ------------------------------------------------------------------------------
2756 International Amateurs
#06 72:28 1990 11-Dec-95
- ------------------------------------------------------------------------------
6257 International Sex Press 78:31 1996 26-Jun-97
- ------------------------------------------------------------------------------
6248 International Sex Press
#01 111:33 1996 Heatwave 04-Apr-97
- ------------------------------------------------------------------------------
4770 Interracial #247 74:28 1995 Coast To Coast 24-Sep-96
- ------------------------------------------------------------------------------
6606 Interracial Virgins #01 118:28 1996 Plush Ent./New S 08-Jun-97
- ------------------------------------------------------------------------------
3400 Intersextion 89:31 1995 Diver Down/ Holl 28-Aug-97
- ------------------------------------------------------------------------------
3214 Interview With A
She-Male 78:39 1995 Pleasure Prod. 13-Mar-96
- ------------------------------------------------------------------------------
5051 Interview With A Tramp 71:59 1996 Sticky Video Pro 21-Nov-96
- ------------------------------------------------------------------------------
3900 Intimate Anal Games 83:11 1994 28-Jul-96
- ------------------------------------------------------------------------------
5266 Intimate Interviews 85:00 1996 Nitro 08-Jan-97
- ------------------------------------------------------------------------------
3522 Intimate Interviews #01 84:35 1996 Nitro 25-Sep-96
- ------------------------------------------------------------------------------
3590 Intimate Interviews #02 87:34 Nitro 25-Jul-96
- ------------------------------------------------------------------------------
4920 Intimate Interviews #03 83:11 1996 Nitro 04-Dec-96
- ------------------------------------------------------------------------------
3895 Intimate Spies 85:43 1992 28-Jul-96
- ------------------------------------------------------------------------------
1806 Intimite Violee 86:47 Double Defi 24-Jan-95
- ------------------------------------------------------------------------------
2570 Intimite Violee Par
Une Femme 53:36 1992 Nanou 08-Sep-95
- ------------------------------------------------------------------------------
3902 Intimo Privato #04 58:21 24-Jul-96
- ------------------------------------------------------------------------------
0005 Into The Sunset 56:42 N/A 14-Jun-94
- ------------------------------------------------------------------------------
1206 Introducing Danielle 86:04 1990 Cinderella 05-Nov-94
- ------------------------------------------------------------------------------
1205 Introducing Kasha 80:16 1989 Cinderella 05-Nov-94
- ------------------------------------------------------------------------------
1194 Introducing Tabatha 72:17 1989 Cinderella 05-Nov-94
- ------------------------------------------------------------------------------
1181 Introducing Tracy 78:24 08-Aug-94
- ------------------------------------------------------------------------------
2071 Invasion of the Samurai
Sluts From Hel 78:12 1988 Nickel And Dime 23-Feb-95
- ------------------------------------------------------------------------------
3541 Invasion of the Samurai
Sluts From Hel 78:07 Fantazy Ent 25-Jul-96
- ------------------------------------------------------------------------------
3475 Invitation To The Blues 83:50 1995 VPN 23-May-96
- ------------------------------------------------------------------------------
6258 IR4 - In Rearendence Day 80:70 N/A
- ------------------------------------------------------------------------------
3894 Island Girl #01 90:10 1990 18-Jul-96
- ------------------------------------------------------------------------------
0676 Island Girls 90:13 1990 Cinderella 01-Aug-94
- ------------------------------------------------------------------------------
1196 Island Girls #03 -
Riptide 71:38 1991 Cinderella 05-Nov-94
- ------------------------------------------------------------------------------
3566 Itty Bitty Titty
Committee**CPPA 109:14
- ------------------------------------------------------------------------------
1659 Jack And Jill #02 86:26 1984 Platinum Picture 11-Jan-95
- ------------------------------------------------------------------------------
0137 Jack Hammer 82:04 1987 N/A 14-Jun-94
- ------------------------------------------------------------------------------
2767 Jail Babes 78:09 1990 Pleasure Produc 03-Jan-96
- ------------------------------------------------------------------------------
Page 47
<PAGE>
MASTER DATA BASE
- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
6502 Jailhouse Nurses 74:35 1995 Sin City 06-May-97
- ------------------------------------------------------------------------------
2419 James Blonde Meets
Dr. Rear 77:47 1994 Coast To Coast 18-Jul-95
- ------------------------------------------------------------------------------
3635 Jamie's Private's #01 72:00 1991 02-Jul-96
- ------------------------------------------------------------------------------
5298C Jane Bond Meets Golden
Rod 00:00
- ------------------------------------------------------------------------------
5289C Jane Bond Meets Golden
Rod 0
- ------------------------------------------------------------------------------
1260 Japanese Hardcore #01 78:55 1994 Video Team 27-Oct-94
- ------------------------------------------------------------------------------
2774 Jeanette Starion #02 93:06 0 ScanVIP 11-Dec-95
- ------------------------------------------------------------------------------
1935 Jennifer 69 65:28 1992 21-Feb-95
- ------------------------------------------------------------------------------
5246 Jeunes Et Salopes 77:35 0 08-Jan-97
- ------------------------------------------------------------------------------
2481 Jeunes Lesbiennes
Sodomissees 55:21 1992
- ------------------------------------------------------------------------------
0576 Jeux D'amour En
Ascenseur 72:24 Cinevog Prod. 11-Oct-94
- ------------------------------------------------------------------------------
3909 Jezebel 80:03 1993 28-Jul-96
- ------------------------------------------------------------------------------
3016 Jiggley Queens #02 78:25 1995 Legend/Jaro Vid 19-Jan-96
- ------------------------------------------------------------------------------
1944 Jiggly Queens 66:03 1994 23-Aug-95
- ------------------------------------------------------------------------------
2676 John Holmes, Master
Cocksman 60:02 0 30-Oct-95
- ------------------------------------------------------------------------------
3910 John Leslie All For
his Ladies 88:36 28-Jul-96
- ------------------------------------------------------------------------------
6160 John Love Vol. #2 85:56 0 Turbo Film 19-Jun-97
- ------------------------------------------------------------------------------
3568 John Stagliano's Dream
Girls 111:39 Odyssey Group 25-Jul-96
- ------------------------------------------------------------------------------
2325 John Wayne Bobbitt
Un-cut 76:42 1994 Video Exclusives 31-Dec-95
- ------------------------------------------------------------------------------
3496 John Wayne Bobbitt's
Bloopers & Behi 67:50 1995 Leisure Time Ent 28-Jun-96
- ------------------------------------------------------------------------------
1695 Joi Fuk Club 69:42 1990 Western Visuals 20-Dec-94
- ------------------------------------------------------------------------------
0902 Joined - The Siamese
Twins 66:50 1993 Paul Norman Fil 30-Aug-94
- ------------------------------------------------------------------------------
2454 Jordan McKnight's Gang
Bang Party 71:03 1994 Heat Wave 22-Aug-95
- ------------------------------------------------------------------------------
0566 Jouissances A Domicile 91:25 0 R.M.L. - Paris 01-Jun-94
- ------------------------------------------------------------------------------
1833 Joy Stick Girls 89:00 1985 Classic Editions 20-Jan-95
- ------------------------------------------------------------------------------
2232 Juggernaut 70:07 1990 Show Time 28-Apr-95
- ------------------------------------------------------------------------------
1693 Jugsy 84:56 1992 Western Visuals 20-Dec-94
- ------------------------------------------------------------------------------
3777 Juicy Treats 91:56 1991 03-Jul-96
- ------------------------------------------------------------------------------
1911 Jungle Beaver 73:08 1993 Hole In One 23-Feb-95
- ------------------------------------------------------------------------------
2532 Jungle Fever 77:12 1994 Hardcore Vid. 30-Aug-95
- ------------------------------------------------------------------------------
1720 Junkyard Susie 78:02 1987 Video Team 30-Jan-95
- ------------------------------------------------------------------------------
5253 Jus' Knockin' Boots 00:00 Paragon Prod.
- ------------------------------------------------------------------------------
5267 Jus' Knockin' Boots #01 84:58 1996 Nitro 08-Jan-97
- ------------------------------------------------------------------------------
5253 Jus' Knockin' Boots #02 00:00
- ------------------------------------------------------------------------------
0926 Just For The Hell Of It 82:06 1991 BlueGate Vid. Pr 16-Sep-94
- ------------------------------------------------------------------------------
6205 Just Lez 77:26 1996 20-Jun-97
- ------------------------------------------------------------------------------
2477 Just My Imagination 82:37 1993 Wicked Pictures 22-Aug-95
- ------------------------------------------------------------------------------
1590 Just One Day 85:08 Dino Vision 18-Nov-94
- ------------------------------------------------------------------------------
2560 Just The Two Of Us 80:51 1986 Western Visuals 29-Sep-95
- ------------------------------------------------------------------------------
2256 Justine - Nothing To
Hide 119:58 1994 Cal Vista 09-Jun-95
- ------------------------------------------------------------------------------
2988 K.U.N.T. T.V. 84:28 1988 Western Visuals 31-Jan-96
- ------------------------------------------------------------------------------
1988 Karin And Barbara -
Superstars 78:02 1994 08-Mar-95
- ------------------------------------------------------------------------------
1282 Kascha's Blues 84:30 1991 Cinderella 17-Nov-94
- ------------------------------------------------------------------------------
0998 Kasha's Days And Nights 69:01 1989 Cinderella 12-Sep-94
- ------------------------------------------------------------------------------
Page 48
<PAGE>
MASTER DATA BASE
- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
1565 Keisha And Co. 110:50 1991 Dreamland Ent. 03-Jan-95
- ------------------------------------------------------------------------------
0831 Kelly 18 69:38 1992 23-Oct-94
- ------------------------------------------------------------------------------
1458 Kelly 18-2-**CPPA** 70:30 1993
- ------------------------------------------------------------------------------
3168 Kept Women 80:20 1995 Legend/Jaro 25-Mar-96
- ------------------------------------------------------------------------------
0790 Key To Love 73:55 1994 Zane Ent. 01-Jun-94
- ------------------------------------------------------------------------------
3911 Killer 89:53 1991 28-Jul-96
- ------------------------------------------------------------------------------
5270 Kimberly Kupps Gets
5 A's. 74:07 1996 Nitro 08-Jan-97
- ------------------------------------------------------------------------------
6222 Kimberly Kupps Gets
Black Balled 71:31 Nitro 01-Mar-97
- ------------------------------------------------------------------------------
1091 King Tongue Meets
Anal Woman 78:55 1995 08-Aug-94
- ------------------------------------------------------------------------------
1094 Kink World 80:16 1993 08-Aug-94
- ------------------------------------------------------------------------------
4687 Kinky Business 67:22 1984 CDI/Dreamland E 19-Jun-97
- ------------------------------------------------------------------------------
1355 Kinky Business #02 86:00 1989 Dreamland Ent. 31-Oct-94
- ------------------------------------------------------------------------------
4708 Kinky Debutante
Interviews #01 89:33 1994 In-X-Cess Prod 05-Sep-96
- ------------------------------------------------------------------------------
4732 Kinky Debutante
Interviews #02 105:02 1994 In-X-Cess Prod 07-Oct-96
- ------------------------------------------------------------------------------
4731 Kinky Debutante
Interviews #03 115:28 1994 In-X-Cess Prod 07-Oct-96
- ------------------------------------------------------------------------------
4705 Kinky Debutante
Interviews #04 111:55 1994 In-X-Cess Prod 05-Sep-96
- ------------------------------------------------------------------------------
4801 Kinky Debutante
Interviews #05 111:20 1994 In-X-Cess Prod 17-Oct-96
- ------------------------------------------------------------------------------
4802 Kinky Debutante
Interviews #06 116:27 1994 In-X-Cess Prod 17-Oct-96
- ------------------------------------------------------------------------------
4800 Kinky Debutante
Interviews #07 76:56 1995 In-X-Cess Prod 17-Oct-96
- ------------------------------------------------------------------------------
4972 Kinky Debutante
Interviews #08 112:56 1995 In-X-Cess Produc 13-Nov-96
- ------------------------------------------------------------------------------
4932 Kinky Debutante
Interviews #09 114:03 1995 In-X-Cess Produc 05-Nov-96
- ------------------------------------------------------------------------------
4931 Kinky Debutante
Interviews #10 116:55 1995 In-X-Cess Produc 05-Nov-96
- ------------------------------------------------------------------------------
2372 Kinky Fantasies 79:43 1995 Kinky World Prod 27-Jun-95
- ------------------------------------------------------------------------------
2897 Kinky Peep Shows -Anal
&oral 113:30 1995 FHV/Sunshine 19-Jan-96
- ------------------------------------------------------------------------------
3913 Kinky Roomates 76:40 1992 28-Jul-96
- ------------------------------------------------------------------------------
1706 Kinky Sex Kittens 81:48 1991 Bad Girl Video 20-Dec-94
- ------------------------------------------------------------------------------
XXX Kiss 00:00
- ------------------------------------------------------------------------------
5252 Kisses From Romania 0
- ------------------------------------------------------------------------------
4684 Kissing Kaylan 83:07 1995 Coast To Coast 04-Sep-96
- ------------------------------------------------------------------------------
0791 Kitten Vamps 74:56 Zane Ent. 01-Jun-94
- ------------------------------------------------------------------------------
0873 Kittens #02 79:00 1992 Coppere Mine In 14-Aug-94
- ------------------------------------------------------------------------------
4722 Kittens #03 88:06 1993 Coast To Coast 24-Sep-96
- ------------------------------------------------------------------------------
4714 Kittens #04 100:07 1992 Coast To Coast 05-Sep-96
- ------------------------------------------------------------------------------
4720 Kittens #05 81:47 1994 Coast To Coast 24-Sep-96
- ------------------------------------------------------------------------------
3091 Kittens #07 95:40 1995 Hole In One Vide 16-Feb-96
- ------------------------------------------------------------------------------
4686 Kittens #08 85:38 1995 Coast To Coast 04-Sep-96
- ------------------------------------------------------------------------------
4597 Kittens 6 86:44 Coast to Coast 23-Aug-96
- ------------------------------------------------------------------------------
2391 Kittens I 84:47 1990 Coast To Coast 20-Jun-95
- ------------------------------------------------------------------------------
3912 Kitty Kat Club 109:25 1994 28-Jul-96
- ------------------------------------------------------------------------------
2434 Knockin' Da Booty 78:33 1993 Wicked Pictures 18-Jul-95
- ------------------------------------------------------------------------------
3926 L'Allegro Bella Para 100:54 Ona Zee Prod. 28-Jul-96
- ------------------------------------------------------------------------------
5305C L'amour 00:00
- ------------------------------------------------------------------------------
0571 L'Amour Du Champagne 97:52 1980 Alpha France 01-Jun-94
- ------------------------------------------------------------------------------
3058 L'Amour En Premiere
Classe 55:21 0 Euro-Sexe 02-Feb-96
- ------------------------------------------------------------------------------
Page 49
<PAGE>
MASTER DATA BASE
- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
3820 L'Erediteria 113:34 03-Jul-96
- ------------------------------------------------------------------------------
4849 L'Etudiante Enculee 81:58 Turbo Films 12-Nov-96
- ------------------------------------------------------------------------------
1983 L'Harem d'Aladdin 84:05 Lava Europix 08-Feb-95
- ------------------------------------------------------------------------------
2131 L'Infirmiere Drague
Sans Culottes 88:02 Europix 10-Mar-95
- ------------------------------------------------------------------------------
2706 L'Infirmiere Est Un Bon
Coup 75:46 0 Euro-Sexe 02-Nov-95
- ------------------------------------------------------------------------------
2861 L'Infirmiere Est
Vaginale 71:53 Direct Video 03-Jan-96
- ------------------------------------------------------------------------------
6050 L'lntervista 94:23 Ona Zee/Munche 28-Jan-97
- ------------------------------------------------------------------------------
1954 L.A. Rear 74:12 1993 Fat Dog 23-Feb-95
- ------------------------------------------------------------------------------
3190 La Casa Dei Guardoni 78:25 1992 Global Vision 04-Apr-96
- ------------------------------------------------------------------------------
3322 La Clinica Del Sesso -
Sex Clinic- 93:11 1995 Carolyn Monroe 15-May-96
- ------------------------------------------------------------------------------
2537 La Croisiere S'Encule 77:01 1990 Europix 30-Aug-95
- ------------------------------------------------------------------------------
2538 La Cul De La Depute 81:22 1995 Veronique Lefay 30-Aug-95
- ------------------------------------------------------------------------------
2688 La Directrice Est Une
Salope 61:46 1992 Cinevoq 02-Nov-95
- ------------------------------------------------------------------------------
2387 La Doctoresse A Des Gros
Seins #2 86:29 0 N/A 20-Jun-95
- ------------------------------------------------------------------------------
6726 La Doctoresse A Des Gros
Siens #3 87:36
- ------------------------------------------------------------------------------
2620 La Foire Du Trou**CPPA 86:08
- ------------------------------------------------------------------------------
1985 La Mariee Est Une Pute 81:16 1990 Europix 08-Feb-95
- ------------------------------------------------------------------------------
0588 La Marquise Assoiffee
D'Amour 65:30 0 N/A 01-Jun-94
- ------------------------------------------------------------------------------
2375 La Massaia In Calore
(Country Lovers) 74:28 1994 Antares World Wi 27-Jun-95
- ------------------------------------------------------------------------------
0578 La Nain Assoiffe De
Perversites 79:39
- ------------------------------------------------------------------------------
2610 La Petite Pute 87:04 1993 26-Jun-97
- ------------------------------------------------------------------------------
1057 La Poire Magique 84:39 1992 Eve Prod. 31-Oct-94
- ------------------------------------------------------------------------------
3919 La Princessa Anal 71:12 1993 18-Jul-96
- ------------------------------------------------------------------------------
2242 La Queue Du Loup 62:41 0 27-Mar-95
- ------------------------------------------------------------------------------
2619 La Reine Des Salopes 83:40 Europix 19-Oct-95
- ------------------------------------------------------------------------------
2862 La Roumanie 79:26 1992 Direct Video 03-Jan-96
- ------------------------------------------------------------------------------
2705 La Rousse Fait Vraiment
Tout 70:38 Euro-Sexe 31-Oct-95
- ------------------------------------------------------------------------------
2401 La Salope Habite Au
5'eme 73:12 Europix 29-Jun-95
- ------------------------------------------------------------------------------
3925 La Seduzione 73:51 1994 Ona Zee Prod. 28-Jul-96
- ------------------------------------------------------------------------------
0575 La Sensuelle Et La
Perverse 79:20 N/A 01-Jun-94
- ------------------------------------------------------------------------------
2195 La Tenda 87:30 1992 27-Mar-95
- ------------------------------------------------------------------------------
3471 LA Topless 79:02 1994 Legend Video 28-May-96
- ------------------------------------------------------------------------------
4644 Lace 68:33 1989 30-Aug-96
- ------------------------------------------------------------------------------
3040 Lacy Affair #04 67:59 1991 Hollywood Video 28-Feb-96
- ------------------------------------------------------------------------------
3921 Ladies Room 73:07 1994 28-Jul-96
- ------------------------------------------------------------------------------
2027 LADP 82:53 1991 21-Feb-95
- ------------------------------------------------------------------------------
0050 Lady By Night 86:17 1987 Dino Ferrara Pre 14-Jun-94
- ------------------------------------------------------------------------------
3548 Lady in Black 74:53 Fantazy Ent 25-Jul-96
- ------------------------------------------------------------------------------
4724 Laid In The USA 71:52 Coast To Coast 24-Sep-96
- ------------------------------------------------------------------------------
4616 Lana Exposed 82:10 1995 CDI/Video Team 30-Aug-96
- ------------------------------------------------------------------------------
2601 Lap Of Luxury 80:57
- ------------------------------------------------------------------------------
6527 Last Good Sex 97:14 1992 Fat Dog 06-May-97
- ------------------------------------------------------------------------------
1249 Last Tango In Rio 78:11 Dreamland Ent. 27-Oct-94
- ------------------------------------------------------------------------------
5026 Last Train #01 94:20 1995 Brickhouse Prod. 19-Nov-96
- ------------------------------------------------------------------------------
Page 50
<PAGE>
MASTER DATA BASE
- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
5178 Last Train #02 88:12 1995 Midnight Prod. 12-Dec-96
- ------------------------------------------------------------------------------
6275 Latex And Lace 78:07 CED/BBE 04-Apr-97
- ------------------------------------------------------------------------------
0832 Lather 65:11 1991 Legend Video 23-Oct-94
- ------------------------------------------------------------------------------
2264 Latin Luster 119:47 1993 Filmco 04-Jun-95
- ------------------------------------------------------------------------------
1301 Lawyers In Heat 73:12 1989 Cinderella 17-Nov-94
- ------------------------------------------------------------------------------
1623 Lay It Again Sam 72:55
- ------------------------------------------------------------------------------
1895 Lays Of Our Lives 79:53 1988 Zane Ent. 24-Jan-95
- ------------------------------------------------------------------------------
0792 Laze 76:21 1989 Zane Ent. 01-Jun-94
- ------------------------------------------------------------------------------
2408 Le Clos Des Plaisirs 65:25 0 Gabriel Pontello 29-Jun-95
- ------------------------------------------------------------------------------
2608 Le Cul De La Femme
Mariee 88:39 Europix 30-Aug-95
- ------------------------------------------------------------------------------
4843 Le Gang Bang De
Veronique 90:46 Turbo Film 08-Nov-96
- ------------------------------------------------------------------------------
2707 Le Grand Bleu -
Peintopes Annales 73:12 0 Euro-Sexe 02-Nov-95
- ------------------------------------------------------------------------------
3213 Le Marteau Pilon Anal 96:16 1993 Euro Sex 16-Apr-96
- ------------------------------------------------------------------------------
2638 Le Petit Chaperon Rose
#02 78:34 0 Europix 30-Sep-95
- ------------------------------------------------------------------------------
3049 Le Roman D'un Triquer 79:57 0 N/A 05-Feb-96
- ------------------------------------------------------------------------------
1808 Le Saucisson Italien 77:01 Europix 20-Jan-95
- ------------------------------------------------------------------------------
2622 Le Voleur De Culottes 93:40 1990
- ------------------------------------------------------------------------------
2405 LeVoyeur 82:38 Fantas 29-Jun-95
- ------------------------------------------------------------------------------
4666 Leather 68:54 1990 CDI/Video Team 04-Sep-96
- ------------------------------------------------------------------------------
4317 Leather 80:31 1989 CDI/S.Canterbur 25-Jul-96
- ------------------------------------------------------------------------------
4664 Leather & Lace 71:58 1994 CDI/Video Team 04-Sep-96
- ------------------------------------------------------------------------------
4663 Leather & Lace Revisited 71:17 1990 CDI/Video Team 04-Sep-96
- ------------------------------------------------------------------------------
1178 Leave It To Cleaver 83:08 The Erotic Video 22-Oct-94
- ------------------------------------------------------------------------------
1842 Leena 75:28 1992 Video Team 20-Jan-95
- ------------------------------------------------------------------------------
1801 Leena Goes Pro 76:34 1993 Video Team 20-Jan-95
- ------------------------------------------------------------------------------
2702 Leena Is Nasty 84:09 1994 Odyssey 22-Nov-95
- ------------------------------------------------------------------------------
2808 Leena Meets Frankenstein 77:49 1994 Pinnacle Odysse 02-Feb-96
- ------------------------------------------------------------------------------
0833 Legacy Of Love 78:43 1992 Legend Video 23-Oct-94
- ------------------------------------------------------------------------------
2111 Legend #04 Critic's
Choice 74:22 1993 Legend 16-Feb-95
- ------------------------------------------------------------------------------
3472 Legend #05 76:23 1993 Legend 28-May-96
- ------------------------------------------------------------------------------
0834 Legend 2 0
- ------------------------------------------------------------------------------
2407 Les Beurettes Violees 66:05 Fantas 29-Jun-95
- ------------------------------------------------------------------------------
2243 Les Boules de Pere Noel 65:57 1991 27-Mar-95
- ------------------------------------------------------------------------------
2278 Les Coulleuses De
Timbres 72:14 Fantas 31-Mar-95
- ------------------------------------------------------------------------------
1984 Les Cuisses Ouvedes 86:12 1994 Europix 08-Feb-95
- ------------------------------------------------------------------------------
0970 Les Deces De La Nuit 66:10 Ron King 14-Sep-94
- ------------------------------------------------------------------------------
5244 Les Deesses Enculees 89:30 0 Turbo Films 08-Jan-97
- ------------------------------------------------------------------------------
4847 Les Delires D'une
Nympadmane 65:59 0 Turbo Films 13-Nov-96
- ------------------------------------------------------------------------------
3101 Les Felees Du Sexe 75:45 1994 Fiesta Direct 28-Feb-96
- ------------------------------------------------------------------------------
3226 Les Jeunes Collegiennes
Du Quebec V 79:40 1995 4 Play Prod. 02-May-96
- ------------------------------------------------------------------------------
2637 Les Masseuses Taillent 78:04 Fantas 30-Sep-95
- ------------------------------------------------------------------------------
0969 Les Nuites De Sophie 72:54 0 Ron King 14-Sep-94
- ------------------------------------------------------------------------------
2531 Les Papys Baisent
L'Infirmiere 64:03 1992 Europix 30-Aug-95
- ------------------------------------------------------------------------------
3387 Les Putes Amatrices
En Action 65:13 0 Turbo Films 08-May-96
- ------------------------------------------------------------------------------
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- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
1572 Les Secretaires
Mouillent Leurs Cullot 66:38 Europix 18-Nov-94
- ------------------------------------------------------------------------------
4709 Lesbian Debutantes #01 90:14 1996 In-X-Cess Prod 05-Sep-96
- ------------------------------------------------------------------------------
4798 Lesbian Debutantes #02 87:58 1996 In-X-Cess Produc 16-Oct-96
- ------------------------------------------------------------------------------
4750 Lesbian Gang Bang NY
City 90:12 Outlaw 24-Sep-96
- ------------------------------------------------------------------------------
0728 Lesbian Lockup 71:27 1992 n 01-Jun-94
- ------------------------------------------------------------------------------
3480 Lessons In Love 96:05 1994 Sin City 24-May-96
- ------------------------------------------------------------------------------
1530 Lessons In Lust 84:48 1988 L.A. Video Corpo 28-Nov-94
- ------------------------------------------------------------------------------
3918 Lessons of Love 80:59 1990 26-Jul-96
- ------------------------------------------------------------------------------
1881 Let It Ride 119:00 1994 Fat Dog 30-Jan-95
- ------------------------------------------------------------------------------
4314 Let's Play Doctor 81:59 1995 CDI/S.Canterbur 25-Jul-96
- ------------------------------------------------------------------------------
3470 Lethal Lolita 84:46 1993 Legend 28-May-96
- ------------------------------------------------------------------------------
0909 Lethal Passion 99:57 1992 T.W. Enterprises 25-Aug-94
- ------------------------------------------------------------------------------
1210 Lethal Woman 65:31 1991 Cinderella 05-Nov-94
- ------------------------------------------------------------------------------
1373 Lets Get Physical 79:00 1985 Caribbean Films 27-Oct-94
- ------------------------------------------------------------------------------
5325C Letters Of Love 00:00
- ------------------------------------------------------------------------------
3920 Lettre Di Rimini 106:36 1993 03-Jul-96
- ------------------------------------------------------------------------------
0598 Liasons Masques 67:25 0 Cinevog Prod. 11-Oct-94
- ------------------------------------------------------------------------------
0839 Licking Legend 80:35 1993
- ------------------------------------------------------------------------------
3924 Lies of Passion 91:26 28-Jul-96
- ------------------------------------------------------------------------------
0095 Life In The Fat Lane #01 70:31 1990 Loretta Sterling 01-Jun-94
- ------------------------------------------------------------------------------
1405 Life In The Fat Lane #03 79:43 1993 Filmco 24-Jan-95
- ------------------------------------------------------------------------------
1406 Life In The Fat Lane #04 83:46 Filmco 24-Jan-95
- ------------------------------------------------------------------------------
0793 Life Of The Party 85:37 1991 Zane Ent. 01-Jun-94
- ------------------------------------------------------------------------------
2828 Life's A Beach 107:59 1995 Frontier Media 11-Dec-95
- ------------------------------------------------------------------------------
1653 Lilith Unleashed 83:01 1986 Night Magic 20-Dec-94
- ------------------------------------------------------------------------------
3922 Lingerie 79:35 1993 28-Jul-96
- ------------------------------------------------------------------------------
2790 Lingerie Busters 107:08 1992 29-Nov-95
- ------------------------------------------------------------------------------
3578 Lingerie Ladies #05 113:11 Odyssey Group 25-Jul-96
- ------------------------------------------------------------------------------
1708 Lip Service 78:18 1991 Bad Girl Video 20-Dec-94
- ------------------------------------------------------------------------------
4484 Lip Service 73:41 1989 01-Aug-96
- ------------------------------------------------------------------------------
3034 Lips On Lips 79:59 1989 Aphrodite 31-Jan-96
- ------------------------------------------------------------------------------
0794 Little Big Dong 70:34 1992 Zane Ent. 01-Jun-94
- ------------------------------------------------------------------------------
2915 Little Girl Lost-
the Savannah story 92:21 1995 Sin City 03-Jan-96
- ------------------------------------------------------------------------------
1534 Little Magicians 113:49 1994 Anabolic Video P 28-Nov-94
- ------------------------------------------------------------------------------
3923 Little Miss Anal 72:47 28-Jul-96
- ------------------------------------------------------------------------------
1817 Live Bait 73:35 1990 Intropics 20-Jan-95
- ------------------------------------------------------------------------------
2673 Live Bi Me 74:17 1990 Pleasure Produc 30-Oct-95
- ------------------------------------------------------------------------------
2818 Live In, Love In 77:27 1989 Moonlight Entert 29-Nov-95
- ------------------------------------------------------------------------------
1951 Live Sex 79:45 1994 Legend 23-Feb-95
- ------------------------------------------------------------------------------
2561 Living Doll 72:07 1992 Western Visuals 29-Sep-95
- ------------------------------------------------------------------------------
1410 Loads Of Fun #05 123:30 1993 Filmco 25-Nov-94
- ------------------------------------------------------------------------------
6210 Lockdown 76:27 1996 Nitro 01-Mar-97
- ------------------------------------------------------------------------------
6516 Lolita 83:50 1995 Sin City 28-Apr-97
- ------------------------------------------------------------------------------
1614 Long Hot Summer 71:50 1992 Cinderella 19-Dec-94
- ------------------------------------------------------------------------------
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- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
4408 Loopholes 85:03 1993 26-Jul-96
- ------------------------------------------------------------------------------
1271 Losing Control 78:48 Cinderella 05-Nov-94
- ------------------------------------------------------------------------------
2200 Lottery Lust 90:02 1993 EVN 24-May-95
- ------------------------------------------------------------------------------
2595 Love Doll Lucy #01 115:02 1995 Pleasure Produc 05-Oct-95
- ------------------------------------------------------------------------------
2768 Love Doll Lucy #02 108:12 1995 Pleasure Produc 03-Jan-96
- ------------------------------------------------------------------------------
4611 Love Exchange 82:40 1995 CDI/Dreamland 30-Aug-96
- ------------------------------------------------------------------------------
4328 Love From The Backside 74:32 1989 Fantazy Ent 24-Jul-96
- ------------------------------------------------------------------------------
5257 Love Ghost 00:00 Western Visual
- ------------------------------------------------------------------------------
0894 Love In An Elevator 72:52 Coast To Coast 30-Aug-94
- ------------------------------------------------------------------------------
4320 Love in Reverse 83:14 0 Fantazy Ent 24-Jul-96
- ------------------------------------------------------------------------------
5326C Love In Strange Places 00:00 Pendulous Prod.
- ------------------------------------------------------------------------------
2047 Love Lessons 82:46 1985 Hollywood Video 23-Sep-94
- ------------------------------------------------------------------------------
0083 Love Letter 89:02 N/A 14-Jun-94
- ------------------------------------------------------------------------------
3917 Love Letters #01 74:33 1993 28-Jul-96
- ------------------------------------------------------------------------------
3916 Love Letters #02 73:54 1993 28-Jul-96
- ------------------------------------------------------------------------------
1838 Love Lies 79:48 1988 Intropics 20-Jan-95
- ------------------------------------------------------------------------------
4928 Love Notes 83:12 1980 Hollywood Video 15-Nov-96
- ------------------------------------------------------------------------------
3504 Love On The Hershie
Highway 80:09 1994 Hollywood Video 07-Oct-96
- ------------------------------------------------------------------------------
1683 Love Potion 89:36 1995 Western Visuals 20-Dec-94
- ------------------------------------------------------------------------------
2122 Love Potion Sandwich 77:15 1994 Lave Prod.
- ------------------------------------------------------------------------------
1771 Love Probe 78:36 1986 Video Team 30-Jan-95
- ------------------------------------------------------------------------------
0875 Love Shack 75:14 N/A 14-Aug-94
- ------------------------------------------------------------------------------
1936 Love Thirsty 71:30 1990 Intropics 23-Feb-95
- ------------------------------------------------------------------------------
2944 Lover's Lane 83:15 1986 Dinovision 24-Jan-96
- ------------------------------------------------------------------------------
0835 Lover's Trance 72:00 1991 Legend Video 23-Oct-94
- ------------------------------------------------------------------------------
4779 Lovers 75:50 1993 Hollywood Video 07-Oct-96
- ------------------------------------------------------------------------------
2995 Lovers #02-Jennifer &
Steve 58:38 1994 Femme 01-May-96
- ------------------------------------------------------------------------------
2991 Lovers: Sydney & Ray 67:16 1993 Femme 23-Apr-96
- ------------------------------------------------------------------------------
3125 Lovin' Spoonfuls #04 138:00 1995 4 Play Prod. 04-Mar-96
- ------------------------------------------------------------------------------
6585 Loving Alternative
Video Magazine 109:38 1996 CED/Zane Ent. 05-Jun-97
- ------------------------------------------------------------------------------
1871 Loving Large 90:06 1994 Video Team 30-Jan-95
- ------------------------------------------------------------------------------
3082 Low Blows 78:02 1989 Moonlight Entert 31-Jan-96
- ------------------------------------------------------------------------------
5071 Low Down Dirty Game 96:19 1995 LBO Ent. Group 24-Feb-97
- ------------------------------------------------------------------------------
3390 Luna Di Miele in Otto 87:43 0 Turbo Films 17-Apr-96
- ------------------------------------------------------------------------------
0356 Lunar Lust 83:02 1990 Hollywood Video 23-Sep-94
- ------------------------------------------------------------------------------
1661 Lure Of The Triangle 72:04 Classix 20-Dec-94
- ------------------------------------------------------------------------------
2414 Lust American Style 79:08 1984 Western Visuals 18-Jul-95
- ------------------------------------------------------------------------------
6026 Lust And Desire 117:14 1996 Western Visuals 28-Jan-97
- ------------------------------------------------------------------------------
2165 Lust Bug 80:14 1985 Hollywood Video 29-Mar-95
- ------------------------------------------------------------------------------
1698 Lust Crimes 77:19 1992 Western Visuals 20-Dec-94
- ------------------------------------------------------------------------------
3914 Lust Never Sleeps 65:56 1991 28-Jul-96
- ------------------------------------------------------------------------------
3002 Lust Of Blackula 75:22 1987 Superstar 31-Jan-96
- ------------------------------------------------------------------------------
6062 Lustful Obsession 00:00 Notorious Prod.
- ------------------------------------------------------------------------------
2390 Lusty 76:00 1986 Cinderella 20-Jun-95
- ------------------------------------------------------------------------------
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- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
0030 Lusty Ladies #01 87:00
- ------------------------------------------------------------------------------
0031 Lusty Ladies #02 55:39 1991 Film Collectors A 14-Jun-94
- ------------------------------------------------------------------------------
1518 Lusty Ladies #10 45:23 1991 4 Play Prod. 28-Oct-94
- ------------------------------------------------------------------------------
1100 Lusty Ladies #18 81:39 1991 4 Play Prod.
- ------------------------------------------------------------------------------
1101 Lusty Ladies #19 58:53 1991 4 Play Prod. 09-Sep-94
- ------------------------------------------------------------------------------
1102 Lusty Ladies #20 60:06 1988 4 Play Prod. 09-Sep-94
- ------------------------------------------------------------------------------
1102 Lusty Ladies 20 60:02
- ------------------------------------------------------------------------------
0054 Lusty Ladies 4 0
- ------------------------------------------------------------------------------
3395 Lusty Lap Dancers 116:05 0 Rod Suction 19-Aug-97
- ------------------------------------------------------------------------------
3396 Lusty Lap Dancers 2 117:09 0 Hollywood Video 19-Aug-97
- ------------------------------------------------------------------------------
1415 Lusty Life #15 108:36 Zane Ent. 25-Nov-94
- ------------------------------------------------------------------------------
1145 Lusty Life #18 112:49 Zane Ent. 07-Sep-94
- ------------------------------------------------------------------------------
1140 Lusty Life #38 115:55 Zane Ent. 07-Sep-94
- ------------------------------------------------------------------------------
1141 Lusty Life #44 116:54 Zane Ent. 07-Sep-94
- ------------------------------------------------------------------------------
1413 Lusty Life 24 - Cum
Coated Tits 104:25 Zane Ent. 24-Jan-95
- ------------------------------------------------------------------------------
1421 Lusty Life 49 - Cum
Raging Cocks 82:50 Zane Ent. 25-Nov-94
- ------------------------------------------------------------------------------
0774 Lusty Life Series Vol.
#05 113:27 Zane Ent. 01-Jun-94
- ------------------------------------------------------------------------------
3976 M Series #02 74:38 1992 16-Jul-96
- ------------------------------------------------------------------------------
3975 M Series #03 72:16 1993 23-Jul-96
- ------------------------------------------------------------------------------
3974 M Series #09 74:10 1994 26-Jul-96
- ------------------------------------------------------------------------------
3977 M Series #01 74:09 1992 26-Jul-96
- ------------------------------------------------------------------------------
1948 Madam Hollywood 72:04 1993 01-Feb-95
- ------------------------------------------------------------------------------
0347 Madame X 73:41 1990 Hollywood Video 12-Sep-94
- ------------------------------------------------------------------------------
3970 Made in Germany 76:46 1990 28-Jul-96
- ------------------------------------------------------------------------------
3971 Made in Heaven 70:27 1991 28-Jul-96
- ------------------------------------------------------------------------------
2547 Magic Fingers 85:10 1987 Midnight Entertai 29-Sep-95
- ------------------------------------------------------------------------------
3968 Main St. U.S.A. 89:04 1992 28-Jul-96
- ------------------------------------------------------------------------------
3625 Major Fucking Slut 68:17 1994 Bella Pictures 02-Jul-96
- ------------------------------------------------------------------------------
5081 Major Fucking Whore 56:38 1996 Al Borda Video 08-Jan-97
- ------------------------------------------------------------------------------
2323 Major League Tits 55:56 1994 Global 24-Apr-96
- ------------------------------------------------------------------------------
1673 Make Me Sweat 56:07 1989 Cinderella 19-Dec-94
- ------------------------------------------------------------------------------
3260 Make My Night 84:23 1985 Cinderella 09-May-96
- ------------------------------------------------------------------------------
1843 Make Out 84:05 1988 Video Team 20-Jan-95
- ------------------------------------------------------------------------------
6664 Makin' The Rounds 68:30 1997 Liquid Video Pro 28-Aug-97
- ------------------------------------------------------------------------------
1204 Making Charlie 89:48 1989 Cinderella 05-Nov-94
- ------------------------------------------------------------------------------
1787 Making Ends Meet 76:20 1987 Video Team 30-Jan-95
- ------------------------------------------------------------------------------
1558 Making Tracks 86:24 1990 Dreamland Ent. 03-Jan-95
- ------------------------------------------------------------------------------
0836 Malibu Blue 79:35
- ------------------------------------------------------------------------------
4530 Malibu Heat 83:14 1995 Hollywood Video 01-Aug-96
- ------------------------------------------------------------------------------
4683 Malibu Madam 81:13 1995 Coast To Coast 04-Sep-96
- ------------------------------------------------------------------------------
0931 Malibu Spice 80:16 1991 Coastline Films P 16-Sep-94
- ------------------------------------------------------------------------------
6505 Maltese Bimbo 82:40 1993 Fat Dog 06-May-97
- ------------------------------------------------------------------------------
0796 Mam's The Word 70:56 N/A 01-Jun-94
- ------------------------------------------------------------------------------
1791 Mammary Lane 84:56 1988 Video Team 30-Jan-95
- ------------------------------------------------------------------------------
Page 54
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- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
4830 Man Killer 69:08 1996 Sin City 20-Sep-96
- ------------------------------------------------------------------------------
1331 Mandi's Magic 85:25
- ------------------------------------------------------------------------------
2587 Maneaters 76:13 1987 08-Sep-95
- ------------------------------------------------------------------------------
3978 Many Happy Returns 80:48 1995 28-Jul-96
- ------------------------------------------------------------------------------
4958 Marco Polo 83:10 1995 Sin City 11-Nov-96
- ------------------------------------------------------------------------------
2723 Marked #02 69:05 1993 Fat Dog 18-Oct-95
- ------------------------------------------------------------------------------
3478 Marquis De Sade 86:17 1995 In-X-Cess Prod. 24-Feb-97
- ------------------------------------------------------------------------------
2985 Married And Cheating 77:08 1989 Western Visuals 31-Jan-96
- ------------------------------------------------------------------------------
1601 Married With Hormones 89:06 11-Jan-95
- ------------------------------------------------------------------------------
2763 Married With She - Males 69:18 1994 Pleasure Produc 03-Jan-96
- ------------------------------------------------------------------------------
3965 Married Women 70:26 1990 24-Jul-96
- ------------------------------------------------------------------------------
2627 Masquerade 88:33 1995 Hollywood Video 08-Sep-95
- ------------------------------------------------------------------------------
3966 Masquerade 69:07 28-Jul-96
- ------------------------------------------------------------------------------
3964 Massagi Padicolari 67:39 0 23-Jul-96
- ------------------------------------------------------------------------------
6165 Maverdick 94:52 1995 Western Visuals 04-Apr-97
- ------------------------------------------------------------------------------
3430 Max 84:53 1995 Filmwest Prod. 28-Aug-97
- ------------------------------------------------------------------------------
2857 Max #04 - The Harder
They Come 87:57 1995 Film West 03-Jan-96
- ------------------------------------------------------------------------------
3431 MAX 2 71:34 0 Filmwest Produc 19-Aug-97
- ------------------------------------------------------------------------------
3427 MAX 3 86:37 0 Filmwest Produc 19-Aug-97
- ------------------------------------------------------------------------------
3424 MAX 5: The Harder They
Fall 89:18 1995 Filmwest Produc 19-Aug-97
- ------------------------------------------------------------------------------
3962 Max a Budapest 107:18 24-Jul-96
- ------------------------------------------------------------------------------
3963 Max A Parigi 116:27 1993 03-Jul-96
- ------------------------------------------------------------------------------
6656 Max At His Hardest 70:00 ABV-USA
- ------------------------------------------------------------------------------
2833 Max Bedroom 88:31 1987 Zane Ent. 29-Nov-95
- ------------------------------------------------------------------------------
0765 Max Hardcore Adventure
In Shopping 76:35 Zane Ent. 01-Jun-94
- ------------------------------------------------------------------------------
0766 Max Hardcore Animalistic
Urge 78:00 1992 Zane Ent. 01-Jun-94
- ------------------------------------------------------------------------------
0767 Max Hardcore Between
The Lines 79:36 Filmwest Prod. 01-Jun-94
- ------------------------------------------------------------------------------
2961 Max Hardcore: Love Hurts 99:36 1995 Zane Ent. 31-Jan-96
- ------------------------------------------------------------------------------
6700 Max Volume 7 88:05 1995 X-Plor Media/Fi 14-Aug-97
- ------------------------------------------------------------------------------
3956 Max World #02 - Europa
Issue 0 28-Jul-96
- ------------------------------------------------------------------------------
6699 Max World 4 81:00 1996 X - Plor Media Gro 14-Aug-97
- ------------------------------------------------------------------------------
0769 Maxhardcore And Suzy
Superslut 70:28 1992 Zane Ent. 01-Jun-94
- ------------------------------------------------------------------------------
4267 Maxworld 1-Southern
Cross 107:08 24-Jul-96
- ------------------------------------------------------------------------------
1705 Mega Splash #01 103:53 1992 Western Visuals 11-Jan-95
- ------------------------------------------------------------------------------
2933 Memoires Intimes -
L'ete De Julie 77:33 1995 Marc Hendrix 03-Jan-96
- ------------------------------------------------------------------------------
0837 Memories 69:48 1992 Legend Video 23-Oct-94
- ------------------------------------------------------------------------------
1375 Menage A Trois 73:00 0 Western Visuals 27-Oct-94
- ------------------------------------------------------------------------------
1764 Menage A Trois #02 109:20 1993 Bad Girls 11-Jan-95
- ------------------------------------------------------------------------------
1684 Menage A Trois #03 106:32 1993 Western Visuals 20-Dec-94
- ------------------------------------------------------------------------------
1681 Menage A Trois #04 105:01 1993 Western Visuals 11-Jan-95
- ------------------------------------------------------------------------------
6707 Menageres Defoncees au
Supermarch 75:26 0 Patrice Cabanel 19-Aug-97
- ------------------------------------------------------------------------------
1592 Mes Cousines Sont De
Vraies Salopes 80:24 1990 Europix 18-Nov-94
- ------------------------------------------------------------------------------
3191 Mia Moglie E una Porca 69:27 Global Vision 04-Apr-96
- ------------------------------------------------------------------------------
3954 Micheal Bruno's Private
Label 74:02 28-Jul-96
- ------------------------------------------------------------------------------
Page 55
<PAGE>
MASTER DATA BASE
- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
5242 Michelle #01 80:54 Turbo Film 08-Jan-97
- ------------------------------------------------------------------------------
4647 Midas Touch 70:34 1991 CDI/Video Team 30-Aug-96
- ------------------------------------------------------------------------------
2895 Middle Aged Sex Maniacs 74:33 1995 FHV/Sunshine 11-Dec-95
- ------------------------------------------------------------------------------
2626 Midnight Angel 70:04 1991 Cinderella 08-Sep-95
- ------------------------------------------------------------------------------
3308 Midnight Baller 73:17 Pleasure Produc 08-May-96
- ------------------------------------------------------------------------------
1930 Midnight Confessions 79:16 1992 Xcitement 21-Feb-95
- ------------------------------------------------------------------------------
1861 Midnight Dreams 84:49 1994 Western Visuals 03-Jan-95
- ------------------------------------------------------------------------------
1265 Midnight Fantasies 119:58 1992 Fantaz 05-Nov-94
- ------------------------------------------------------------------------------
1272 Midnight Fantasies #01
d1265 120:24 n 05-Nov-94
- ------------------------------------------------------------------------------
6223 Midnight Fire 81:02 1990 Pure Class Produ 01-Mar-97
- ------------------------------------------------------------------------------
0335 Midnight Heat 87:40 1983 n 14-Jun-94
- ------------------------------------------------------------------------------
1939 Midnight Hour 75:29 1991 Video Team 02-Mar-95
- ------------------------------------------------------------------------------
1224 Midnight Madness 78:00 Dreamland Ent. 27-Oct-94
- ------------------------------------------------------------------------------
3972 Midnight Orgy 65:06 1993 28-Jul-96
- ------------------------------------------------------------------------------
1803 Midsummers Love Story 80:28 1993 Western Visuals 03-Jan-95
- ------------------------------------------------------------------------------
4508 Millie Vanilla 83:45 1994 01-Aug-96
- ------------------------------------------------------------------------------
1950 Million Dollar Screw 80:08 1987 Video Team 02-Mar-95
- ------------------------------------------------------------------------------
0861 Mind Games 67:48 1992 Cinderella 01-Aug-94
- ------------------------------------------------------------------------------
1529 Mind Sex 85:28 1994 Ignite Prod. 28-Nov-94
- ------------------------------------------------------------------------------
0911 Mind Shadows 54:40 1990 Paul Norman Pro 25-Aug-94
- ------------------------------------------------------------------------------
1049 Mind Shadows #02 66:04 1993 Paul Norman Pro 31-Oct-94
- ------------------------------------------------------------------------------
2617 Minitel Et Maxicul 89:50 1992 Fanta-Z 30-Aug-95
- ------------------------------------------------------------------------------
2822 Miracle On 69th Street 86:34 1992 Heatwave Entert 29-Nov-95
- ------------------------------------------------------------------------------
1704 Mischief 73:05 1991 Western Visuals 03-Jan-95
- ------------------------------------------------------------------------------
6507 Miss Aphrodisiaque 87:35 1995 Digital Media Grp 07-May-97
- ------------------------------------------------------------------------------
1576 Miss Hard Crad Se
D'echaine 88:29 High Class 18-Nov-94
- ------------------------------------------------------------------------------
6557 Miss Liberty 84:59 1996 In-X-Cess 08-May-97
- ------------------------------------------------------------------------------
1825 Miss Nude International 77:17 1994 Legend 16-Feb-95
- ------------------------------------------------------------------------------
4301 Miss Nude International 85:03 1994 Cinderella 17-Jul-96
- ------------------------------------------------------------------------------
0750 Miss Twenty First
Century 71:10 Zane Ent. 01-Jun-94
- ------------------------------------------------------------------------------
0985 Mistaken Identity 71:44 1989 Coast To Coast 07-Oct-94
- ------------------------------------------------------------------------------
3000 Mistress Of Sin 73:30 1994 Las Vegas Video 19-Jan-96
- ------------------------------------------------------------------------------
3161 Mistress of The Mansion 75:47 1994 Cal Vista 25-Mar-96
- ------------------------------------------------------------------------------
3093 Misty Midnight 78:59 1995 Coastline Films 03-Jan-96
- ------------------------------------------------------------------------------
2823 Mo' Body 75:37 1992 Heatwave Entert 29-Nov-95
- ------------------------------------------------------------------------------
4787 Model's Memoirs 78:41 1994 In-X-Cess Produc 17-Oct-96
- ------------------------------------------------------------------------------
5047 Models For Hire #01 90:36 1996 Masked Pictures 21-Nov-96
- ------------------------------------------------------------------------------
5045 Models For Hire #02 86:31 1996 Masked Pictures 21-Nov-96
- ------------------------------------------------------------------------------
3973 Modern Love 67:15 1991 16-Jul-96
- ------------------------------------------------------------------------------
1245 Moist To The Touch 88:47 Dreamland Ent 27-Oct-94
- ------------------------------------------------------------------------------
6271 Molina 74:04 1996 Klimaxxx Produc 04-Apr-97
- ------------------------------------------------------------------------------
3102 Mondiali 79:21 Fiesta Direct 28-Feb-96
- ------------------------------------------------------------------------------
3182 Monkey Wench 80:22 1995 Bella Pictures 15-May-96
- ------------------------------------------------------------------------------
1522 Monster Mammaries**Cppa 85:48
- ------------------------------------------------------------------------------
Page 56
<PAGE>
MASTER DATA BASE
- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
4463 Moo Shoo Porkers 69:17 EVN (CDI) 25-Jul-96
- ------------------------------------------------------------------------------
1958 Moondance**CPPA 82:28 1991
- ------------------------------------------------------------------------------
2559 Moonlusting 81:35 1987 Western Visuals 29-Sep-95
- ------------------------------------------------------------------------------
2793 Moonlusting #02 78:46 1987 Western Visuals 29-Nov-95
- ------------------------------------------------------------------------------
0110 More Dirty Debutantes 84:37 1991 Nasty Bros. 14-Jun-94
- ------------------------------------------------------------------------------
3448 More Dirty Debutantes 118:01 1990 Ed Powers 15-May-96
- ------------------------------------------------------------------------------
5199 More Dirty Debutantes
#17 138:25 1992 Ed Powers 11-Dec-96
- ------------------------------------------------------------------------------
2747 More Dirty Debutantes
#03 112:37 1991 18-Oct-95
- ------------------------------------------------------------------------------
2748 More Dirty Debutantes
#04 119:26 1990 18-Oct-95
- ------------------------------------------------------------------------------
2963 More Dirty Debutantes
#06 120:55 1990 02-Feb-96
- ------------------------------------------------------------------------------
2968 More Dirty Debutantes
#07 137:04 1991 02-Feb-96
- ------------------------------------------------------------------------------
2521 More Dirty Debutantes
#08 137:20 18-Oct-95
- ------------------------------------------------------------------------------
2567 More Dirty Debutantes
#09 135:58 21-Nov-95
- ------------------------------------------------------------------------------
2749 More Dirty Debutantes
#11 138:27 18-Oct-95
- ------------------------------------------------------------------------------
6590 More Dirty Debutantes
#13 138:25 1992 The Nasty Brothe 17-Jun-97
- ------------------------------------------------------------------------------
6591 More Dirty Debutantes
#14 135:20 1992 The Nasty Brothe 17-Jun-97
- ------------------------------------------------------------------------------
6592 More Dirty Debutantes
#15 137:47 1992 The Nasty Brothe 17-Jun-97
- ------------------------------------------------------------------------------
2566 More Dirty Debutantes
#19 137:15 1993 Nasty Bros. 21-Nov-95
- ------------------------------------------------------------------------------
2520 More Dirty Debutantes
#21 137:19 1993 21-Nov-95
- ------------------------------------------------------------------------------
3197 More Dirty Debutantes
#38 137:54 1995 Ed Powers 10-Apr-96
- ------------------------------------------------------------------------------
3205 More Dirty Debutantes
#39 135:03 1995 Nasty Bros 31-May-96
- ------------------------------------------------------------------------------
3196 More Dirty Debutantes
#40 138:11 1995 Nasty Bros. 17-Apr-96
- ------------------------------------------------------------------------------
3202 More Dirty Debutantes
#41 137:14 1995 4 Play Prod. 03-Jun-96
- ------------------------------------------------------------------------------
6593 More Dirty Debutantes
#42 140:33 1995 The Nasty Brothe 17-Jun-97
- ------------------------------------------------------------------------------
6594 More Dirty Debutantes
#43 137:31 1995 The Nasty Brothe 17-Jun-97
- ------------------------------------------------------------------------------
6596 More Dirty Debutantes
#45 136:38 1995 The Nasty Brothe 17-Jun-97
- ------------------------------------------------------------------------------
6597 More Dirty Debutantes
#46 115:00 1993 The Nasty Brothe 17-Jun-97
- ------------------------------------------------------------------------------
6598 More Dirty Debutantes
#47 137:02 1995 The Nasty Brothe 19-Jun-97
- ------------------------------------------------------------------------------
5216 More Dirty Debutantes
#49 138:42 1995 Nasty Bros 03-Jan-97
- ------------------------------------------------------------------------------
2746 More Dirty Debutantes 2 117:53 18-Oct-95
- ------------------------------------------------------------------------------
3955 More Reel People #02 77:27 1991 28-Jul-96
- ------------------------------------------------------------------------------
4126 More Reel People #10 68:00 1995 24-Jul-96
- ------------------------------------------------------------------------------
4546 More Than A Woman 71:21 1992 CDI/Pepper 07-Aug-96
- ------------------------------------------------------------------------------
4322 More than Friends 74:33 Fantazy Ent. 24-Jul-96
- ------------------------------------------------------------------------------
1772 More Than Friends 0
- ------------------------------------------------------------------------------
5016 More!Sorority
Stewardesses 86:03 1995 Plush Ent.
- ------------------------------------------------------------------------------
1598 Motel Hell 00:00 1992 11-Jan-95
- ------------------------------------------------------------------------------
1598 Motel Hell 75:38
- ------------------------------------------------------------------------------
XXX Mouth To Mouth 0 Coast-To-Coast 04-Sep-96
- ------------------------------------------------------------------------------
1095 Mr. Big 69:26 1991 08-Aug-94
- ------------------------------------------------------------------------------
3934 Mr. Peeper's Amateur
Home Videos #0 72:00 1991 16-Jul-96
- ------------------------------------------------------------------------------
3944 Mr. Peeper's Amateur
Home Videos #0 72:00 28-Jul-96
- ------------------------------------------------------------------------------
3943 Mr. Peeper's Amateur
Home Videos #0 72:16 1991 28-Jul-96
- ------------------------------------------------------------------------------
1110 Mr. Peeper's Amateur
Home Videos #0 70:13 1991 Mr. Peepers 09-Sep-94
- ------------------------------------------------------------------------------
Page 57
<PAGE>
MASTER DATA BASE
- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
4423 Mr. Peeper's Amateur
Home Videos #0 70:09 0 26-Jul-96
- ------------------------------------------------------------------------------
3942 Mr. Peeper's Amateur
Home Videos #0 64:56 28-Jul-96
- ------------------------------------------------------------------------------
3945 Mr. Peeper's Amateur
Home Videos #0 71:18 1991 18-Jul-96
- ------------------------------------------------------------------------------
3618 Mr. Peeper's Amateur
Home Videos #0 72:10 02-Jul-96
- ------------------------------------------------------------------------------
3937 Mr. Peeper's Amateur
Home Videos #0 70:46 18-Jul-96
- ------------------------------------------------------------------------------
3935 Mr. Peeper's Amateur
Home Videos #0 78:23 18-Jul-96
- ------------------------------------------------------------------------------
3946 Mr. Peeper's Amateur
Home Videos #1 69:58 1994 28-Jul-96
- ------------------------------------------------------------------------------
4477 Mr. Peeper's Amateur
Home Videos #1 69:52 1995 01-Aug-96
- ------------------------------------------------------------------------------
3938 Mr. Peeper's Amateur
Home Videos #1 71:46 1990 31-Dec-95
- ------------------------------------------------------------------------------
3633 Mr. Peeper's Amateur
Home Videos #1 71:31 1991 02-Jul-96
- ------------------------------------------------------------------------------
3936 Mr. Peeper's Amateur
Home Videos #1 66:24 28-Jul-96
- ------------------------------------------------------------------------------
3939 Mr. Peeper's Amateur
Home Videos #1 71:44 1995 28-Jul-96
- ------------------------------------------------------------------------------
3931 Mr. Peeper's Amateur
Home Videos #1 68:45 0 28-Jul-96
- ------------------------------------------------------------------------------
3622 Mr. Peeper's Amateur
Home Videos #1 66:56 02-Jul-96
- ------------------------------------------------------------------------------
3930 Mr. Peeper's Amateur
Home Videos #1 71:35 1991 24-Jul-96
- ------------------------------------------------------------------------------
3933 Mr. Peeper's Amateur
Home Videos #1 69:34 1994 24-Jul-96
- ------------------------------------------------------------------------------
3932 Mr. Peeper's Amateur
Home Videos #2 68:05 28-Jul-96
- ------------------------------------------------------------------------------
3961 Mr. Peeper's Amateur
Home Videos #2 71:14 28-Jul-96
- ------------------------------------------------------------------------------
3960 Mr. Peeper's Amateur
Home Videos #2 72:39 16-Jul-96
- ------------------------------------------------------------------------------
4429 Mr. Peeper's Amateur
Home Videos #2 71:22 25-Jul-96
- ------------------------------------------------------------------------------
4392 Mr. Peeper's Amateur
Home Videos #2 66:05
- ------------------------------------------------------------------------------
4413 Mr. Peeper's Amateur
Home Videos #2 90:31 26-Jul-96
- ------------------------------------------------------------------------------
3948 Mr. Peeper's Amateur
Home Videos #2 64:52 28-Jul-96
- ------------------------------------------------------------------------------
3947 Mr. Peeper's Amateur
Home Videos #2 70:35 1991 28-Jul-96
- ------------------------------------------------------------------------------
4435 Mr. Peeper's Amateur
Home Videos #2 64:57 25-Jul-96
- ------------------------------------------------------------------------------
3951 Mr. Peeper's Amateur
Home Videos #2 69:42 28-Jul-96
- ------------------------------------------------------------------------------
4414 Mr. Peeper's Amateur
Home Videos #3 68:37 26-Jul-96
- ------------------------------------------------------------------------------
3949 Mr. Peeper's Amateur
Home Videos #3 64:40 28-Jul-96
- ------------------------------------------------------------------------------
3952 Mr. Peeper's Amateur
Home Videos #3 67:44 28-Jul-96
- ------------------------------------------------------------------------------
4432 Mr. Peeper's Amateur
Home Videos #3 67:34 25-Jul-96
- ------------------------------------------------------------------------------
3940 Mr. Peeper's Amateur
Home Videos #3 67:05 28-Jul-96
- ------------------------------------------------------------------------------
3953 Mr. Peeper's Amateur
Home Videos #3 67:37 28-Jul-96
- ------------------------------------------------------------------------------
4430 Mr. Peeper's Amateur
Home Videos #3 68:02 25-Jul-96
- ------------------------------------------------------------------------------
3950 Mr. Peeper's Amateur
Home Videos #3 65:49 28-Jul-96
- ------------------------------------------------------------------------------
4436 Mr. Peeper's Amateur
Home Videos #3 63:49 25-Jul-96
- ------------------------------------------------------------------------------
4388 Mr. Peeper's Amateur
Home Videos #3 67:36 26-Jul-96
- ------------------------------------------------------------------------------
3941 Mr. Peeper's Amateur
Home Videos #4 65:56 1992 28-Jul-96
- ------------------------------------------------------------------------------
4437 Mr. Peeper's Amateur
Home Videos #4 68:02 1992 25-Jul-96
- ------------------------------------------------------------------------------
3958 Mr. Peeper's Amateur
Home Videos #4 68:01 1993 28-Jul-96
- ------------------------------------------------------------------------------
3959 Mr. Peeper's Amateur
Home Videos #4 70:50 28-Jul-96
- ------------------------------------------------------------------------------
3929 Mr. Peeper's Amateur
Home Videos #4 70:19 1991 28-Jul-96
- ------------------------------------------------------------------------------
4476 Mr. Peeper's Amateur
Home Videos #4 66:12 1992 25-Jul-96
- ------------------------------------------------------------------------------
4412 Mr. Peeper's Amateur
Home Videos #4 69:47 1992 26-Jul-96
- ------------------------------------------------------------------------------
3928 Mr. Peeper's Amateur
Home Videos #4 64:06 28-Jul-96
- ------------------------------------------------------------------------------
Page 58
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- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
3617 Mr. Peeper's Amateur 68:28 1992 02-Jul-96
Home Videos #4
- ------------------------------------------------------------------------------
3011 Ms. Behaving 78:09 1994 Sin City 02-Feb-96
- ------------------------------------------------------------------------------
0960 Muff And Jeff 76:45 1993 Zane Ent 16-Sep-94
- ------------------------------------------------------------------------------
3927 Muffy The Vampire 70:22
Layer**CPPA
- ------------------------------------------------------------------------------
6078 My Ass 84:53 1996 Notorious Produ 28-Jan-97
- ------------------------------------------------------------------------------
1778 My Baby Got Back 118:46 1992 Video Team 20-Jan-95
- ------------------------------------------------------------------------------
2013 My Baby Got Back #02 114:18 1993 Video Team 23-Feb-95
- ------------------------------------------------------------------------------
2021 My Baby Got Back #03 110:21 1993 Video Team 23-Feb-95
- ------------------------------------------------------------------------------
1835 My Baby Got Back #04 119:34 1994 Video Team 20-Jan-95
- ------------------------------------------------------------------------------
6224 My Desire 91:49 1996 Nitro 01-Mar-97
- ------------------------------------------------------------------------------
4576 My Favourite Rear 86:23 1993 CDI/Pepper 23-Aug-96
- ------------------------------------------------------------------------------
3957 My Generation**CPPA 72:31 1994 Hollywood Video 28-Jul-96
- ------------------------------------------------------------------------------
4338 My Wife is a Call Girl 78:22 Fantazy Ent 24-Jul-96
- ------------------------------------------------------------------------------
3398 My Wildest Date 77:48 0 N/A 28-Aug-97
- ------------------------------------------------------------------------------
3523 Mysteria 82:08 1995 Nitro 25-Sep-96
- ------------------------------------------------------------------------------
6234 Mystery Of The Golden
Lotus 110:36 1996 Nitro 03-Mar-97
- ------------------------------------------------------------------------------
4464 Naked Asians 67:43 EVN (CDI) 25-Jul-96
- ------------------------------------------------------------------------------
2095 Naked Buns 2 1/2 75:04 1991 Western Visuals 31-Jan-95
- ------------------------------------------------------------------------------
1125 Naked Buns 8 1/2 81:05 1992 Coast To Coast 28-Oct-94
- ------------------------------------------------------------------------------
0838 Naked Edge 70:59 1992 Legend Video 23-Oct-94
- ------------------------------------------------------------------------------
1347 Naked Stranger 78:38 1988 Cinderella 17-Nov-94
- ------------------------------------------------------------------------------
2732 Nasty #07 112:03 1994 Nasty Jack's Ho 27-Sep-95
- ------------------------------------------------------------------------------
1303 Nasty Girls 77:09 Cinderella 23-Dec-94
- ------------------------------------------------------------------------------
4029 Nasty Girls #01 67:25 1990 24-Jul-96
- ------------------------------------------------------------------------------
1608 Nasty Girls #02 72:34 1989 Cinderella 19-Dec-94
- ------------------------------------------------------------------------------
1718 Nasty Girls #02 69:21 1990 Cinderella 27-Sep-94
- ------------------------------------------------------------------------------
1745 Nasty Girls #04 78:04 1989 Plum Prod. 08-Feb-95
- ------------------------------------------------------------------------------
4005 Nasty Jack #01 61:06 1990 02-Jul-96
- ------------------------------------------------------------------------------
4473 Nasty Jack #01 50:13 1990 25-Jul-96
- ------------------------------------------------------------------------------
4026 Nasty Jack #02 53:37 1995 28-Jul-96
- ------------------------------------------------------------------------------
4420 Nasty Jack #03 55:05 1990 26-Jul-96
- ------------------------------------------------------------------------------
4389 Nasty Jack #04 58:54 1990 26-Jul-96
- ------------------------------------------------------------------------------
3624 Nasty Jack #05 53:53 02-Jul-96
- ------------------------------------------------------------------------------
4503 Nasty Jack #06 58:53 1990 01-Aug-96
- ------------------------------------------------------------------------------
4386 Nasty Jack #08 50:18 1990 26-Jul-96
- ------------------------------------------------------------------------------
4587 Nasty Jack #08 101:53 1990 Video Drome 23-Aug-96
- ------------------------------------------------------------------------------
4046 Nasty Jack #08 (d-4386) 50:56 1990 24-Jul-96
- ------------------------------------------------------------------------------
4025 Nasty Jack #09 58:43 1990 18-Jul-96
- ------------------------------------------------------------------------------
4532 Nasty Jack #09 98:56 1990 23-Aug-96
- ------------------------------------------------------------------------------
2635 Nasty Jack #10 120:32 1990 Nasty Jack's Ho 15-Sep-95
- ------------------------------------------------------------------------------
4421 Nasty Jack #10 59:35 1990 26-Jul-96
- ------------------------------------------------------------------------------
4433 Nasty Jack #11 60:13 1990 25-Jul-96
- ------------------------------------------------------------------------------
4516 Nasty Jack #12 50:39 1990 01-Aug-96
- ------------------------------------------------------------------------------
4037 Nasty Jack #13 57:24 28-Jul-96
- ------------------------------------------------------------------------------
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- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
4738 Nasty Jack #16 52:30 1990 05-Sep-96
- ------------------------------------------------------------------------------
4036 Nasty Jack #17 58:53 1990 28-Jul-96
- ------------------------------------------------------------------------------
4506 Nasty Jack #19 49:43 1990 01-Aug-96
- ------------------------------------------------------------------------------
4031 Nasty Jack #20 59:46 1990 28-Jul-96
- ------------------------------------------------------------------------------
4030 Nasty Jack #21 56:46 1991 28-Jul-96
- ------------------------------------------------------------------------------
4039 Nasty Jack #22 59:31 1991 28-Jul-96
- ------------------------------------------------------------------------------
3619 Nasty Jack #24 59:04 02-Jul-96
- ------------------------------------------------------------------------------
4038 Nasty Jack #26 59:15 1991 28-Jul-96
- ------------------------------------------------------------------------------
4042 Nasty Jack #28 58:42 28-Jul-96
- ------------------------------------------------------------------------------
4041 Nasty Jack #29 53:12 1987 23-Jul-96
- ------------------------------------------------------------------------------
4009 Nasty Jack #30 53:21 1991 16-Jul-96
- ------------------------------------------------------------------------------
4040 Nasty Jack #31 50:00 28-Jul-96
- ------------------------------------------------------------------------------
4434 Nasty Jack #33 57:25 1991 25-Jul-96
- ------------------------------------------------------------------------------
4045 Nasty Jack #36 58:40 1987 31-Dec-95
- ------------------------------------------------------------------------------
4472 Nasty Jack #37 55:20 25-Jul-96
- ------------------------------------------------------------------------------
4475 Nasty Jack #38 54:18 25-Jul-96
- ------------------------------------------------------------------------------
4044 Nasty Jack #39 57:04 31-Dec-95
- ------------------------------------------------------------------------------
4047 Nasty Jack #40 50:04 28-Jul-96
- ------------------------------------------------------------------------------
1723 Nasty Ladies #01 75:57 1990 Plum Prod. 08-Feb-95
- ------------------------------------------------------------------------------
1721 Nasty Ladies #02 75:06 1990 Plum Prod. 08-Feb-95
- ------------------------------------------------------------------------------
1761 Nasty Ladies #03 79:04 1990 Plum Prod. 08-Feb-95
- ------------------------------------------------------------------------------
1762 Nasty Ladies #04 73:55 1991 Plum Prod. 08-Feb-95
- ------------------------------------------------------------------------------
1114 Nasty Man 116:19 Nasty Man Prod. 23-Sep-94
- ------------------------------------------------------------------------------
3177 Nasty Nancy #04 100:18 1995 Pepper Prod. 13-Mar-96
- ------------------------------------------------------------------------------
3290 Nasty Nancy #06 99:25 0 Cinderella 10-May-96
- ------------------------------------------------------------------------------
3293 Nasty Nancy Vol. 2 - 110:52 1995 Cinderella 10-May-96
Cum Covered Hoo
- ------------------------------------------------------------------------------
2492 Nasty Newcummers #02 105:21 1993 Amateurs In Acti 22-Aug-95
- ------------------------------------------------------------------------------
2487 Nasty Newcummers #03 117:20 1994 22-Aug-95
- ------------------------------------------------------------------------------
2574 Nasty Newcummers #04 103:07 1994 08-Sep-95
- ------------------------------------------------------------------------------
2558 Nasty Newshounds 77:16 1987
- ------------------------------------------------------------------------------
2092 Nasty Nights 75:50 1988 01-May-95
- ------------------------------------------------------------------------------
3555 Nasty Nurses 111:12 06-Sep-96
- ------------------------------------------------------------------------------
2361 Nasty Nurses (Historic 53:20 1994 27-Jun-95
Erotica present
- ------------------------------------------------------------------------------
1527 Nasty Nymphs 136:43 1994 Anabolic Video P 28-Oct-94
- ------------------------------------------------------------------------------
5095 Nasty Operator 83:17 1995 Digital Media/Ca 08-Jan-97
- ------------------------------------------------------------------------------
4544 Nasty Romances 81:11 0 Hollywood Video 09-Aug-96
- ------------------------------------------------------------------------------
1115 Nasty Travel Tails #02 119:52 1993 Nasty Man Prod. 23-Sep-94
- ------------------------------------------------------------------------------
0105 National Poontangs Sex 86:18 1990 Filmco Releasing 01-Jun-94
Vacation
- ------------------------------------------------------------------------------
2533 Natural Born Thrillers 80:49 1995 Coast To Coast 30-Aug-95
- ------------------------------------------------------------------------------
4773 Naughty 90's 82:00 1990 Hollywood Video 07-Oct-96
- ------------------------------------------------------------------------------
0321 Naughty 90's D4773 81:52 1990 Hollywood Video 14-Jun-94
- ------------------------------------------------------------------------------
4704 Naughty By Night 85:39 1994 CDI/Dreamland 05-Sep-96
- ------------------------------------------------------------------------------
4365 Naughty 83:13 1987 Hollywood Video 26-Jul-96
Cheerleaders**CPPA
- ------------------------------------------------------------------------------
1549 Naughty Girls Need Love 96:48 1984 Magic Night Vide 21-Nov-94
Too
- ------------------------------------------------------------------------------
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MASTER DATA BASE
- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
2248 Naughty in Nature 69:57 1994 Pleasure Produc 01-May-95
- ------------------------------------------------------------------------------
5159C Naughty Neighboars 00:00
- ------------------------------------------------------------------------------
3474 Naughty Nina 75:30 1992 Hollywood Video 23-May-96
- ------------------------------------------------------------------------------
5230 Needful Sins 0
- ------------------------------------------------------------------------------
4035 Neighborhood Watch #01 72:20 1991 28-Jul-96
- ------------------------------------------------------------------------------
4492 Neighborhood Watch #02 67:01 1990 01-Aug-96
- ------------------------------------------------------------------------------
4034 Neighborhood Watch #03 74:08 1991 26-Jul-96
- ------------------------------------------------------------------------------
4517 Neighborhood Watch #04 73:26 01-Aug-96
- ------------------------------------------------------------------------------
4033 Neighborhood Watch #05 65:34 1991 18-Jul-96
- ------------------------------------------------------------------------------
4417 Neighborhood Watch #06 65:49 1991 26-Jul-96
- ------------------------------------------------------------------------------
4032 Neighborhood Watch #07 69:14 1991 24-Jul-96
- ------------------------------------------------------------------------------
4010 Neighborhood Watch #08 67:05 16-Jul-96
- ------------------------------------------------------------------------------
4011 Neighborhood Watch #09 70:44 1991 16-Jul-96
- ------------------------------------------------------------------------------
3636 Neighborhood Watch #10 65:37 02-Jul-96
- ------------------------------------------------------------------------------
4737 Neighborhood Watch #11 61:28 1991 05-Sep-96
- ------------------------------------------------------------------------------
4043 Neighborhood Watch #12 70:42 28-Jul-96
- ------------------------------------------------------------------------------
3981 Neighborhood Watch #13 69:00 1992 28-Jul-96
- ------------------------------------------------------------------------------
4415 Neighborhood Watch #14 67:46 1992 26-Jul-96
- ------------------------------------------------------------------------------
4416 (Neighborhood Watch #15 70:38 1992 26-Jul-96
- ------------------------------------------------------------------------------
3982 Neighborhood Watch #16 67:16 1992 28-Jul-96
- ------------------------------------------------------------------------------
4518 Neighborhood Watch #17 62:00 01-Aug-96
- ------------------------------------------------------------------------------
3987 Neighborhood Watch #18 74:00 28-Jul-96
- ------------------------------------------------------------------------------
3995 Neighborhood Watch #19 70:27 1995 24-Jul-96
- ------------------------------------------------------------------------------
3983 Neighborhood Watch #20 67:37 1992 28-Jul-96
- ------------------------------------------------------------------------------
3980 Neighborhood Watch #21 66:17 1992 28-Jul-96
- ------------------------------------------------------------------------------
4385 Neighborhood Watch #22 65:35 1992 26-Jul-96
- ------------------------------------------------------------------------------
3996 Neighborhood Watch #23 67:28 28-Jul-96
- ------------------------------------------------------------------------------
4507 Neighborhood Watch #24 64:22 01-Aug-96
- ------------------------------------------------------------------------------
3994 Neighborhood Watch #25 72:32 1992 28-Jul-96
- ------------------------------------------------------------------------------
4017 Neighborhood Watch #26 71:03 1992 28-Jul-96
- ------------------------------------------------------------------------------
4018 Neighborhood Watch #27 72:38 1992 28-Jul-96
- ------------------------------------------------------------------------------
4002 Neighborhood Watch #28 71:17 1992 28-Jul-96
- ------------------------------------------------------------------------------
3989 Neighborhood Watch #29 70:04 1992 28-Jul-96
- ------------------------------------------------------------------------------
3997 Neighborhood Watch #30 70:39 1992 28-Jul-96
- ------------------------------------------------------------------------------
3991 Neighborhood Watch #31 74:28 1992 28-Jul-96
- ------------------------------------------------------------------------------
4000 Neighborhood Watch #32 52:10 LBO Ent. Group 1
- ------------------------------------------------------------------------------
3990 Neighborhood Watch #34 68:24 1992 28-Jul-96
- ------------------------------------------------------------------------------
4003 Neighborhood Watch #35 64:43 31-Dec-95
- ------------------------------------------------------------------------------
4019 Neighborhood Watch #36 65:08 1993 18-Jul-96
- ------------------------------------------------------------------------------
4001 Neighborhood Watch #37 68:29 1993 28-Jul-96
- ------------------------------------------------------------------------------
3621 Neighborhood Watch #38 65:31 1993 02-Jul-96
- ------------------------------------------------------------------------------
3993 Neighborhood Watch 39 69:09
- ------------------------------------------------------------------------------
3984 Neighborhood Watch 40 66:33 1993 28-Jul-96
- ------------------------------------------------------------------------------
3992 Neighborhood Watch #33 67:44 28-Jul-96
- ------------------------------------------------------------------------------
Page 61
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MASTER DATA BASE
- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
3493 Nena Cherry's DP 74:40 1996 Nitro 30-May-96
Gang Bang
- ------------------------------------------------------------------------------
2260 Neutron Man 76:19 1993 Hollywood Video 02-Jun-95
- ------------------------------------------------------------------------------
3986 Never Enough 71:47 1990 31-Dec-95
- ------------------------------------------------------------------------------
1024 Never Never Land 78:16 1992 01-Nov-94
- ------------------------------------------------------------------------------
3008 Never Say Never - The 75:08 1994 Sin City 02-Feb-96
Adventures Of
- ------------------------------------------------------------------------------
2906 Never Say Never
Again - The Adventur 76:11 1995 Sin City 03-Jan-96
- ------------------------------------------------------------------------------
2522 New Ends #01 137:40 1993 18-Oct-95
- ------------------------------------------------------------------------------
2523 New Ends #02 136:16 1995 18-Oct-95
- ------------------------------------------------------------------------------
2524 New Ends #03 138:05 1995 18-Oct-95
- ------------------------------------------------------------------------------
2568 New Ends #04 138:43 1993 18-Oct-95
- ------------------------------------------------------------------------------
2967 New Ends #05 138:09 1993 02-Feb-96
- ------------------------------------------------------------------------------
5197 New Ends #06 D3064 136:17 1995 Ed Powers 11-Dec-96
- ------------------------------------------------------------------------------
3064 New Ends #06 D5197 137:45 1993 02-Feb-96
- ------------------------------------------------------------------------------
2525 New Ends #07 137:40 1994 18-Oct-95
- ------------------------------------------------------------------------------
4911 New Ends #08 137:22 1995 Omni Internation 17-Oct-96
- ------------------------------------------------------------------------------
4910 New Ends #10 133:05 1995 Omni Internation 17-Oct-96
- ------------------------------------------------------------------------------
2486 New Faces Hot Bodies -
Pro Am #01 72:16 1992 Starbright Produ 22-Aug-95
- ------------------------------------------------------------------------------
2484 New Faces Hot Bodies -
Pro Am #03 101:58 1994 Starbright Produ 22-Aug-95
- ------------------------------------------------------------------------------
2485 New Faces Hot Bodies -
Pro Am #05 63:31 1994 Starbright Produ 22-Aug-95
- ------------------------------------------------------------------------------
0876 New Girl In Town 74:00 Coast To Coast 14-Aug-94
- ------------------------------------------------------------------------------
2073 New Girl In Town #02 76:32 1993 Hole In One 08-Feb-95
- ------------------------------------------------------------------------------
1392 New Girl In Town #03 81:00 Coast To Coast 28-Oct-94
- ------------------------------------------------------------------------------
2382 New Girl In Town #04 74:58 1993 Coast To Coast 27-Jun-95
- ------------------------------------------------------------------------------
2394 New Girl In Town #05 84:58 1994 Coast To Coast 27-Jun-95
- ------------------------------------------------------------------------------
2274 New Girl In Town #06 84:52 1994 Coast To Coast 31-Mar-95
- ------------------------------------------------------------------------------
4584 New Girl In Town #07 73:37 23-Aug-96
- ------------------------------------------------------------------------------
5152C New Kid On The BIock**CPPA 85:32 1991
- ------------------------------------------------------------------------------
3300 New Money 70:39 1995 Unlimited 15-May-96
- ------------------------------------------------------------------------------
4348 New Positions 67:55 1994 CDI/S.Canterbur 26-Jul-96
- ------------------------------------------------------------------------------
1940 New Sensation! 71:42 1989 Coast To Coast 27-Jun-95
- ------------------------------------------------------------------------------
4461 New Wave Orientals 66:19 EVN (CDI) 25-Jul-96
- ------------------------------------------------------------------------------
4715 New York Vice 77:55 1985 Coast-To-Coast 24-Sep-96
- ------------------------------------------------------------------------------
1379 Next Door #02 56:14 1990 Next Door Neigh 27-Oct-94
- ------------------------------------------------------------------------------
1378 Next Door Neighbors #01 55:30 1990 Next Door Neigh 27-Oct-94
- ------------------------------------------------------------------------------
1380 Next Door Neighbors #03 56:19 Next Door Neigh 27-Oct-94
- ------------------------------------------------------------------------------
1381 Next Door Neighbors #04 53:54 Next Door Neigh 27-Oct-94
- ------------------------------------------------------------------------------
2328 Next Door Neighbors #05 52:59 1989 Next Door Neigh 01-May-95
- ------------------------------------------------------------------------------
2329 Next Door Neighbors #06 50:57 1989 Next Door Neigh 01-May-95
- ------------------------------------------------------------------------------
2337 Next Door Neighbors #07 51:20 1989 Next Door Neigh 01-May-95
- ------------------------------------------------------------------------------
2330 Next Door Neighbors #08 56:10 1989 Next Door Neigh 01-May-95
- ------------------------------------------------------------------------------
2338 Next Door Neighbors #10 53:17 1989 Next Door Neigh 29-Jun-95
- ------------------------------------------------------------------------------
2331 Next Door Neighbors 9 54:00 1989 01-May-95
- ------------------------------------------------------------------------------
1528 Nicky Knights Dripping
Erotica 77:55 Wild Cat Prod. 28-Oct-94
- ------------------------------------------------------------------------------
2142 Night And Day 83:00 1993 Video Team 29-Mar-95
- ------------------------------------------------------------------------------
Page 62
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- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
1920 Night And Day #02 75:37 1993 Video Team 23-Feb-95
- ------------------------------------------------------------------------------
4548 Night Breed 69:03 1992 CDI/Pepper 07-Aug-96
- ------------------------------------------------------------------------------
3261 Night Cap 70:11 1990 Executive Video 09-May-96
- ------------------------------------------------------------------------------
3007 Night Crawlers 75:32 1994 Sin City 02-Feb-96
- ------------------------------------------------------------------------------
1090 Night Creatures -
A Real Vampire's Tai 83:28 1992 Sean Micheal's P 11-Aug-95
- ------------------------------------------------------------------------------
1646 Night Magic 84:45 1984 Night Magic 20-Dec-94
- ------------------------------------------------------------------------------
2178 Night Of A Vampire 67:37 1994 Midnight Film 29-Mar-95
- ------------------------------------------------------------------------------
2140 Night Of The Living
Debbies 81:57 1989 Exective Vid. Inc. 29-Mar-95
- ------------------------------------------------------------------------------
6568 Night Stalker 83:55 1996 CED/Barbie Brid 15-May-97
- ------------------------------------------------------------------------------
3631 Night Vision 89:01 1993 02-Jul-96
- ------------------------------------------------------------------------------
1634 Night Wish 83:53 Cinderella 19-Dec-94
- ------------------------------------------------------------------------------
4834 Nightclub 73:12 1996 Sin City 20-Sep-96
- ------------------------------------------------------------------------------
1599 Nightmare On Dyke Street 80:08 1991 11-Jan-95
- ------------------------------------------------------------------------------
2817 Nightmare On Porn Street 74:03 1988 Moonlight Ent. 29-Nov-95
- ------------------------------------------------------------------------------
3020 Nikki At Night 70:13 1993 Legend Video 03-Jan-96
- ------------------------------------------------------------------------------
0840 Nikki Never Says No 84:48 1992 Legend Video 23-Oct-94
- ------------------------------------------------------------------------------
3024 Nine Lives Hath My
Love / The Pick-Up 67:15 1987 Femme 10-May-96
- ------------------------------------------------------------------------------
2591 Nine To Sex 67:23 0 Pleasure Produc 05-Oct-95
- ------------------------------------------------------------------------------
3998 Ninja CPA 90:12 1993 28-Jul-96
- ------------------------------------------------------------------------------
4653 No Man's Land #01 85:16 1989 CDI/Video Team 30-Aug-96
- ------------------------------------------------------------------------------
4657 No Man's Land #03 75:03 CDI/Video Team 30-Aug-96
- ------------------------------------------------------------------------------
2801 No Man's Land #04 80:30 1990 Video Team 29-Nov-95
- ------------------------------------------------------------------------------
4656 No Man's Land #05 81:17 CDI/Video Team 30-Aug-96
- ------------------------------------------------------------------------------
4672 No Man's Land #06 73:06 1993 CDI/Video Team 04-Sep-96
- ------------------------------------------------------------------------------
4673 No Man's Land #07 70:42 1993 CDI/Video Team 04-Sep-96
- ------------------------------------------------------------------------------
4703 No Man's Land #08 89:38 1993 CDI/Video Team 05-Sep-96
- ------------------------------------------------------------------------------
2503 No Man's Land #09 71:41 1994 Video Team 30-Aug-95
- ------------------------------------------------------------------------------
4674 No Man's Land #10 80:47 1994 CDI/Video Team 04-Sep-96
- ------------------------------------------------------------------------------
4675 No Man's Land #11 82:41 1995 CDI/Video Team 04-Sep-96
- ------------------------------------------------------------------------------
4676 No Man's Land #12 85:06 1995 CDI/Video Team 04-Sep-96
- ------------------------------------------------------------------------------
4677 No Man's Land #13 86:13 1995 CDI/Video Team 04-Sep-96
- ------------------------------------------------------------------------------
2703 No One To Love 77:02 1987 Plum Prod. 18-Oct-95
- ------------------------------------------------------------------------------
0797 No Tell Motel 73:57 0 N/A 01-Jun-94
- ------------------------------------------------------------------------------
3319 Noces Rituelles -
Wedding Riuals - 87:23 Double Defi 15-May-96
- ------------------------------------------------------------------------------
4848 Nom De Code - Chiennes
En Chaleur 87:51 1996 Turbo Films 12-Nov-96
- ------------------------------------------------------------------------------
3985 Nookie Cookies 86:28 1993 28-Jul-96
- ------------------------------------------------------------------------------
6221 Nookie Ranch 87:29 Nitro 01-Mar-97
- ------------------------------------------------------------------------------
0315 Not So Innocent 80:37 1990 Hollywood Video 14-Jun-94
- ------------------------------------------------------------------------------
0686 Nothing But Trouble 68:41 1991 Cinderella 01-Aug-94
- ------------------------------------------------------------------------------
3999 Notorious 74:37 28-Jul-96
- ------------------------------------------------------------------------------
6651 Nouveaux Nymphos #01 73:29 1997 ABV-USA 03-Sep-97
- ------------------------------------------------------------------------------
4877 Nude Awakenings 74:15 1996 Plum Prod. 17-Oct-96
- ------------------------------------------------------------------------------
6225 Nudist Colony Vacation 85:04 1996 Nitro 01-Mar-97
- ------------------------------------------------------------------------------
3491 Nurse Nookie 117:03 1987 Nitro 30-May-96
- ------------------------------------------------------------------------------
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- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
3492 Nurse Nookie #02 115:03 1996 Nitro 30-May-96
- ------------------------------------------------------------------------------
3490 Nurse Nookie #03 116:09 Nitro 30-May-96
- ------------------------------------------------------------------------------
5226 Nurse Nookie #4 00:00 Rodnievision
- ------------------------------------------------------------------------------
5228 Nurse Nookie #5 00:00 Rodnievision
- ------------------------------------------------------------------------------
3025 Nutts About Butts 72:13 1994 Legend 03-Jan-96
- ------------------------------------------------------------------------------
1635 NYDP 83:56 1993 Jalapeno Pepper 23-Dec-94
- ------------------------------------------------------------------------------
2556 Nymphette 85:01 1986
- ------------------------------------------------------------------------------
2158 Nympho Nights 83:00 1986 Night Magic Vide 01-Mar-95
- ------------------------------------------------------------------------------
4944 NYPD Trannie 71:09 1996 Plush Ent./Blue C 05-Nov-96
- ------------------------------------------------------------------------------
3763 O Sex 68:59 27-Jul-96
- ------------------------------------------------------------------------------
3527 O. Brunettes #05 110:32 0
- ------------------------------------------------------------------------------
1555 Object Of Desire 66:36 1991 Fantasy 18-Nov-94
- ------------------------------------------------------------------------------
4051 Objective DP 78:22 1993 24-Jul-96
- ------------------------------------------------------------------------------
6150 Obsedante Eva 79:18 99 Turbo Films 10-Feb-97
- ------------------------------------------------------------------------------
1369 Obsession 71:13 1991 CB's Private Coll 17-Nov-94
- ------------------------------------------------------------------------------
2249 Obsessions In Lace 73:06 1995 Pleasure Produc 01-May-95
- ------------------------------------------------------------------------------
2586 Oddest Couple 80:15 1986 Night Magic 08-Sep-95
- ------------------------------------------------------------------------------
5376C Office Girls 00:00 Rasputin Prod.
- ------------------------------------------------------------------------------
2505 Oh My God! I Married
An Anal Queen! 69:30 1993 Midnight Video 30-Aug-95
- ------------------------------------------------------------------------------
1915 Oh You Beautiful Doll 75:32 1989 Zane Ent. 01-Mar-95
- ------------------------------------------------------------------------------
0026 Oh! Those Lovin'
Spoonfuls*CPPA 100:14
- ------------------------------------------------------------------------------
1390 Old Throat And DP
--Missing-- 76:00 1993 Filmco 25-Nov-94
- ------------------------------------------------------------------------------
2471 Old Wave Hookers #01 86:15 1995 Pleasure Produc 08-Sep-95
- ------------------------------------------------------------------------------
3255 Old Wave Hookers #02 83:55 1995 Pleasure Produc 23-May-96
- ------------------------------------------------------------------------------
2929 Older And Anal #01 67:39 1995 Valentine Video 03-Jan-96
- ------------------------------------------------------------------------------
4710 Older Men/Younger
Women 2**CPPA 83:34 1994 Coast-To-Coast 04-Sep-96
- ------------------------------------------------------------------------------
2896 Older Women Are Better 115:36 1995 FHV/Sunshine 16-Jan-96
- ------------------------------------------------------------------------------
4716 Older Women, Younger Boys 85:03 Coast-To-Coast 04-Sep-96
- ------------------------------------------------------------------------------
1438 Older Women, Younger
Men**Cppa 71:40 1993
- ------------------------------------------------------------------------------
3206 Oldies but Goodies 77:22 1995 New Sensations 19-Apr-96
- ------------------------------------------------------------------------------
2197 Oltre La Vita 71:42 1992 27-Mar-95
- ------------------------------------------------------------------------------
4052 Olympus of Lust 81:33 1994 Metro Video 14-Jan-97
- ------------------------------------------------------------------------------
2759 On Assignment 72:05 1990 Pleasure Produc 11-Dec-95
- ------------------------------------------------------------------------------
3053 On Assignment #02 71:52 1991 Gaschaft 31-Jan-96
- ------------------------------------------------------------------------------
3778 On The Prowl In Paris 86:33 1993 03-Jul-96
- ------------------------------------------------------------------------------
3005 On The Run 78:18 1995 Sin City 02-Feb-96
- ------------------------------------------------------------------------------
1784 On Tour 85:48 1990 Jimmy McKay's P 24-Jan-95
- ------------------------------------------------------------------------------
3444 Ona Zee's Dynamite DP's 85:23 Ona Zee Prod. 15-May-96
- ------------------------------------------------------------------------------
2377 Ona Zee's Date With
Dallas 77:23 1992 Ona Zee Prod. 27-Jun-95
- ------------------------------------------------------------------------------
3279 Ona Zee's Doll House
Vol #02 84:06 1995 Ona Zere Prod. 09-May-96
- ------------------------------------------------------------------------------
1117 Once In A Blue Moon 67:36 0 N/A 23-Sep-94
- ------------------------------------------------------------------------------
0387 Ondulation Permanentes 75:12 Fantasma 23-Sep-94
- ------------------------------------------------------------------------------
4340 One Flew Over The
Cuckoo's Breast 73:09 1990 Fantazy Ent 25-Jul-96
- ------------------------------------------------------------------------------
4719 One Million Years DD 76:29 1992 Coast To Coast 24-Sep-96
- ------------------------------------------------------------------------------
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- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
0841 One Night Stand 68:59 1990 Legend Video 23-Oct-94
- ------------------------------------------------------------------------------
2811 One Of Our Porn Stars 77:22 1993 04-Jan-96
Is Missing
- ------------------------------------------------------------------------------
2773 One Week In Bangkok 72:48 1995 11-Dec-95
- ------------------------------------------------------------------------------
0151 One Wife To Give 79:14
- ------------------------------------------------------------------------------
0151 One Wife To Give 79:14 Zane Ent 14-Jun-94
- ------------------------------------------------------------------------------
3113 Only The Strong Survive 84:47 1988 Zane Ent. 16-Feb-96
- ------------------------------------------------------------------------------
3076 Open House 84:16 1989 Roccotillio Pepp 19-Jan-96
- ------------------------------------------------------------------------------
5231 Open Lips 88:12 1994 Western Visuals
- ------------------------------------------------------------------------------
0798 Operation Anal Storm 63:33 1991 Zane Ent. 01-Jun-94
- ------------------------------------------------------------------------------
4049 Opie Goes To South
Central 79:11 1995 Plum Prod. 03-Dec-96
- ------------------------------------------------------------------------------
0300 Opportunity Knocks 71:10 Hollywood Video 14-Jun-94
- ------------------------------------------------------------------------------
3484 Oral Blondes Clarifies 113:33 24-May-96
- ------------------------------------------------------------------------------
3486 Oral Blondes #02 114:14 Odyssey Group 28-May-96
- ------------------------------------------------------------------------------
1744 Oral Majority #2 76:41 1994 Bad Girls 11-Jun-95
- ------------------------------------------------------------------------------
0093 Oral Majority #07 78:01 Western Visuals 14-Jun-94
- ------------------------------------------------------------------------------
6055 Oral Majority #08 80:06 1990 Western Visuals 28-Jan-97
- ------------------------------------------------------------------------------
5256 Oral Majority #09 77:49 1992 Western Visuals 24-Feb-97
- ------------------------------------------------------------------------------
6056 Oral Majority #10 78:35 1993 Western Visuals 28-Jan-97
- ------------------------------------------------------------------------------
5236 Oral Majority #12 00:00 Western Visuals
- ------------------------------------------------------------------------------
6046 Oral Majority #13 116:03 1995 Western Visuals 28-Jan-97
- ------------------------------------------------------------------------------
4006 Organic Facials 75:57 16-Jul-96
- ------------------------------------------------------------------------------
2129 Orgasme Total 82:30 Magma/High Cla 29-Mar-95
- ------------------------------------------------------------------------------
1215 Orgasms Alley I 98:19 Western Visuals 27-Oct-94
- ------------------------------------------------------------------------------
2621 Orgie A Venise 105:07 1995 Europix 30-Aug-95
- ------------------------------------------------------------------------------
1058 Orgie Sur La Yacht 60:57 1993 Casanova 31-Oct-94
- ------------------------------------------------------------------------------
3122 Orgies A Montreal 74:26 Presse Film Inc. 28-Feb-96
- ------------------------------------------------------------------------------
2155 Orgy Attack 76:50 1992 Dragon 29-Mar-95
- ------------------------------------------------------------------------------
0113 Orgy On A Ranch 72:47 1991 Night Light Expre 14-Jun-94
- ------------------------------------------------------------------------------
1703 Orgymania #02 107:54 1991 Western Visuals 20-Dec-94
- ------------------------------------------------------------------------------
1377 Orgymania #03 113:53 Western Visuals 27-Oct-94
- ------------------------------------------------------------------------------
6156 Oriental Anal Sluts 00:00
- ------------------------------------------------------------------------------
2316 OrientaL Angels 54:19 Global 24-Apr-96
- ------------------------------------------------------------------------------
2771 Oriental Explosions 70:07 1991 Pleasure Produc 11-Dec-95
- ------------------------------------------------------------------------------
4053 Oriental Gang Bang 74:15 Hollywood Video 04-Apr-97
- ------------------------------------------------------------------------------
5135C Oriental Hawaii 00:00
- ------------------------------------------------------------------------------
0957 Osriental Jade 82:58 1985 Praxis Prod. 16-Sep-94
- ------------------------------------------------------------------------------
2440 Oriental Sexpress 80:21 1993 Western Visuals 18-Jul-95
- ------------------------------------------------------------------------------
1694 Oriental Temptations 81:33 1992 Western Visuals 20-Dec-94
- ------------------------------------------------------------------------------
6121 Original Sin 77:47 X-Citement Video 24-Feb-97
- ------------------------------------------------------------------------------
4474 Our Bang -The Girls
are in for a B 71:05 25-Jul-96
- ------------------------------------------------------------------------------
3639 Our Bang #01 74:31 1991 02-Jul-96
- ------------------------------------------------------------------------------
4483 Our Bang #02 72:10 01-Aug-96
- ------------------------------------------------------------------------------
4377 Our Bang #04 72:42 26-Jul-96
- ------------------------------------------------------------------------------
4418 Our Bang #06 70:56 26-Jul-96
- ------------------------------------------------------------------------------
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MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
4394 Our Bang #07 74:39 26-Jul-96
- ------------------------------------------------------------------------------
4424 Our Bang #08 74:06 1993 25-Jul-96
- ------------------------------------------------------------------------------
4055 Our Bang #10 72:31 1993 23-Jul-96
- ------------------------------------------------------------------------------
4376 Our Bang #11 73:06 26-Jul-96
- ------------------------------------------------------------------------------
4054 Our Bang #12 74:22 26-Jul-96
- ------------------------------------------------------------------------------
4419 Our Bang #13 74:27 26-Jul-96
- ------------------------------------------------------------------------------
4057 Our Bang #14 73:34 1993 31-Dec-95
- ------------------------------------------------------------------------------
4402 Outlaws 69:43 1993 26-Jul-96
- ------------------------------------------------------------------------------
4048 Outrageous 71:05 1988 Las Vegas Film
- ------------------------------------------------------------------------------
3176 Outrageous Sex 58:16 1995 Al Borda Video 15-May-96
- ------------------------------------------------------------------------------
3552 Outrageous Sex Scenes
Of The 1970's 112:36 06-Sep-96
- ------------------------------------------------------------------------------
3551 Outrageous Sex Scenes
Of The 1980's 116:12 6-Sep-96
- ------------------------------------------------------------------------------
4076 P.J. Sparxxx On Fire 00:00 Midnight Video
- ------------------------------------------------------------------------------
0888 Paler Shade Of Blue 85:02 1990 Coast To Coast 30-Aug-94
- ------------------------------------------------------------------------------
2458 Panty Raid 76:28 1985 Collector's Video 30-Aug-95
- ------------------------------------------------------------------------------
6508 Paradise 78:22 1995 Fat Dog 28-Apr-97
- ------------------------------------------------------------------------------
3010 Paradise Found 76:04 1995 Legend Home Vi 31-Jan-96
- ------------------------------------------------------------------------------
2979 Paradise Road 71:58 1989 Western Visuals 31-Jan-96
- ------------------------------------------------------------------------------
5101 Paradise Villa 101:00 1995 Digital Media/Mid 29-Nov-96
- ------------------------------------------------------------------------------
0153 Paris Blues 66:28 1990 Western Visuals 14-Jun-94
- ------------------------------------------------------------------------------
0715 Paris Models 82:05 1987 Cinderella 01-Jun-94
- ------------------------------------------------------------------------------
6576 Paris Sluts In Heat 102:34 1995 Digital Media Grp 05-Jun-97
- ------------------------------------------------------------------------------
4341 Partners in Sex 71:12 1990 Fantazy Ent 24-Jul-96
- ------------------------------------------------------------------------------
2607 Partouzes Champetres 83:48 Europix 30-Aug-95
- ------------------------------------------------------------------------------
6665 Party Night 84:12 1997 Liquid Video Pro 28-Aug-97
- ------------------------------------------------------------------------------
3094 Party Pack #02 78:15 1994
- ------------------------------------------------------------------------------
1677 Party Wives 83:21 1986 Cinderella 19-Dec-94
- ------------------------------------------------------------------------------
1437 Passage To Ecstasy 78:40 1985 Cinderella 28-Oct-94
- ------------------------------------------------------------------------------
6559 Passenger 69 #01 79:14 1994 In-X-Cess 08-May-97
- ------------------------------------------------------------------------------
6547 Passenger 69 #02 82:30 1995 In-X-Cess Prod. 02-Jun-97
- ------------------------------------------------------------------------------
6560 Passion 88:43 1994 In-X-Cess 08-May-97
- ------------------------------------------------------------------------------
2835 Passion Chain 96:16 Zane Bros.
- ------------------------------------------------------------------------------
4570 Passion For Fashion 69:38 1993 CDI/Pepper 23-Aug-96
- ------------------------------------------------------------------------------
3119 Passion Potion 76:52 1995 Wicked Pictures 16-Feb-96
- ------------------------------------------------------------------------------
2630 Passion's Prisoners 70:55 1994 Las Vegas Ent. 08-Sep-95
- ------------------------------------------------------------------------------
1986 Passionate Lovers 78:18 1994 21-Feb-95
- ------------------------------------------------------------------------------
0799 Patriot Dames 68:00 Zane Ent. 01-Jun-94
- ------------------------------------------------------------------------------
4596 Patty Plenty's Gang
Bang 73:38 1995 Nitro 23-Aug-96
- ------------------------------------------------------------------------------
1922 Paul Norman's Exiles 73:36 1990 Video Team 02-Mar-95
- ------------------------------------------------------------------------------
2544 Peep Diz 99:37 1995 Dark-X-Treme 29-Sep-95
- ------------------------------------------------------------------------------
6091 Peeping Tom #03 107:09 Odyssey Group 24-Feb-97
- ------------------------------------------------------------------------------
4077 Penetrating Thoughts 00:00 Las Vegas Video
- ------------------------------------------------------------------------------
1775 Penetrator**Rape 86:17 1993
- ------------------------------------------------------------------------------
3603 Peoples Choice #765 -
The Wetter the 110:08 Odyssey Group 25-Jul-96
- ------------------------------------------------------------------------------
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- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
4840 Pepe & Meme 81:24 X-Kiss 08-Nov-96
- ------------------------------------------------------------------------------
0822 Perfect Pair 68:00 1991 Legend Video 23-Oct-94
- ------------------------------------------------------------------------------
3115 Performer Of The Year 101:25 1995 Wicked Pictures 16-Feb-96
- ------------------------------------------------------------------------------
0035 Performers 81:03 1986 Afro-Dite 14-Jun-94
- ------------------------------------------------------------------------------
0800 Perks 74:08 Zane Ent. 01-Jun-94
- ------------------------------------------------------------------------------
2603 Persia's Fantasies 84:39 Video Team/Ang 08-Sep-95
- ------------------------------------------------------------------------------
4489 Perverse 77:09 1995 Ona Zee Prod. 01-Aug-96
- ------------------------------------------------------------------------------
6245 Perverse In Venice 112:40 1997 Heatwave 04-Apr-97
- ------------------------------------------------------------------------------
5187 Perverse Pleasures-Ass
Worship 00:00
- ------------------------------------------------------------------------------
1794 Perversion Anale 84:14 1993 Movie Star 20-Jan-95
- ------------------------------------------------------------------------------
6523 Perverted Women 80:11 1995 Sin City 01-May-97
- ------------------------------------------------------------------------------
1823 Petites Moules
A La Creme 69:13 1994 Les Prod. Video 20-Jan-95
- ------------------------------------------------------------------------------
2879 Petites Salopes A
Enculer 72:50 Direct Video 03-Jan-96
- ------------------------------------------------------------------------------
3068 Philmore Butts' Las
Vegas Vacation 118:21 1995 FHV 28-Feb-96
- ------------------------------------------------------------------------------
3067 Philmore Butts:
Hawaiian Adventure 106:50 1995 Sunshine Video 16-Feb-96
- ------------------------------------------------------------------------------
1831 Phone Sex Girls #01 78:50 1987 Video Team 20-Jan-95
- ------------------------------------------------------------------------------
1770 Phone Sex Girls #02 77:32 1987 Video Team 20-Jan-95
- ------------------------------------------------------------------------------
4366 Photo Flesh 84:39 1987 Hollywood Video 26-Jul-96
- ------------------------------------------------------------------------------
6084 Pick Up Lines #01 135:26 CED/Silverstone 24-Feb-97
- ------------------------------------------------------------------------------
3128 Pick Up Lines #01
- D6084 135:50 1995 4 Play Prod. 04-Mar-96
- ------------------------------------------------------------------------------
3123 Pick Up Lines #02 136:08 1995 CED, Inc./4 Play 04-Mar-96
- ------------------------------------------------------------------------------
6086 Pick Up Lines #04 137:52 1996 CED/Silverstone 24-Feb-97
- ------------------------------------------------------------------------------
6087 Pick Up Lines #05 107:58 1996 CED/Silverstone 24-Feb-97
- ------------------------------------------------------------------------------
3543 Pick Up Lines #06 111:34 1996 CED/Silverstone 28-Jan-97
- ------------------------------------------------------------------------------
6024 Pick Up Lines #07 112:52 1996 CED/Silverstone 28-Jan-97
- ------------------------------------------------------------------------------
6023 Pick Up Lines #08 110:06 CED/Silverstone 28-Jan-97
- ------------------------------------------------------------------------------
6088 Pick Up Lines #09 108:33 1996 CED/Silverstone 24-Feb-97
- ------------------------------------------------------------------------------
1799 Picture Me Naked 80:10 1994 Legend 21-Aug-95
- ------------------------------------------------------------------------------
3174 Picture Perfect 72:40 1995 Bella Pictures 15-May-96
- ------------------------------------------------------------------------------
1570 Piege A Mecs 76:30 Movie Star 18-Nov-94
- ------------------------------------------------------------------------------
0801 Pillow Biters 65:35 Zane Ent. 01-Jun-94
- ------------------------------------------------------------------------------
1371 Pink And Plentiful 108:14 Western Visuals 27-Oct-94
- ------------------------------------------------------------------------------
1730 Pink And Plentiful #02 108:19 1992 Western Visuals 11-Jan-95
- ------------------------------------------------------------------------------
1741 Pink And Plentiful #04 107:11 1992 Western Visuals 11-Jan-95
- ------------------------------------------------------------------------------
3318 Piscine Du Sexe -
Swimming Pool Orgy 82:05 15-May-96
- ------------------------------------------------------------------------------
6125 Pizza Sluts 70:56 1996 DBF Productions 20-Feb-97
- ------------------------------------------------------------------------------
2964 Pizzas, Hot Tubs, And
Bimbos 87:58 1995 Sunshine Films 16-Feb-96
- ------------------------------------------------------------------------------
6261 Planet X #01 75:42 1996 Heatwave 04-Apr-97
- ------------------------------------------------------------------------------
6262 Planet X #02 76:30 1996 Heatwave 04-Apr-97
- ------------------------------------------------------------------------------
1160 Plaster My Face With
Cum 107:06 Zane Ent. 07-Sep-94
- ------------------------------------------------------------------------------
1647 Play Me Again Vanessa 68:50 1986 Night Magic 20-Dec-94
- ------------------------------------------------------------------------------
3178 Playing for Passion 73:49 1987 Intropics 25-Mar-96
- ------------------------------------------------------------------------------
3359 Playmates Of The Rich
And Famous 90:57 1995 BBE 30-May-96
- ------------------------------------------------------------------------------
0354 Please Me 84:08 Hollywood Classi 23-Sep-94
- ------------------------------------------------------------------------------
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- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
1372 Please Mr. Postman 71:43 Elliot Lewis 27-Oct-94
- ------------------------------------------------------------------------------
3172 Pleasure Dome 70:14 Lady Anita F. 25-Mar-96
- ------------------------------------------------------------------------------
0150 Pleasure Hunt 82:01 1984 Now Showing 14-Jun-94
- ------------------------------------------------------------------------------
0041 Pleasure Hunt #02 83:46 1988 Now Showing 14-Jun-94
- ------------------------------------------------------------------------------
3295 Pleasure Is My Business 82:00 1989 Executive 15-May-96
- ------------------------------------------------------------------------------
2090 Pleasure Maze 75:50 1986 01-May-95
- ------------------------------------------------------------------------------
4337 Plumb and Dumber 83:35 1995 CDI/Plum 26-Jul-96
- ------------------------------------------------------------------------------
1158 Plunge My Pussy 117:58 Zane Ent. 07-Sep-94
- ------------------------------------------------------------------------------
6504 Pocahotas #01 83:32 1996 Fat Dog 07-May-97
- ------------------------------------------------------------------------------
1636 Poetry Of The Flesh 74:47 Yellow Pepper 19-Dec-94
- ------------------------------------------------------------------------------
5027 Point Blank 36:48 Cine-X
- ------------------------------------------------------------------------------
4685 Politix 82:00 1995 Coast To Coast 04-Sep-96
- ------------------------------------------------------------------------------
6533 Polonaises Affamees 86:37 X-Kiss 06-May-97
- ------------------------------------------------------------------------------
0729 Pony Girls 66:15 Rosebud Prod. 01-Jun-94
- ------------------------------------------------------------------------------
2442 Poor Little Rich Girl
#02 71:57 1993 Wicked Pictures 18-Jul-95
- ------------------------------------------------------------------------------
1022 Pops 74:28 1992 01-Nov-94
- ------------------------------------------------------------------------------
1609 Porn Stars Day Off 81:05 Fanta-Z/CDI 30-Jan-95
- ------------------------------------------------------------------------------
4440 Porno Extreme #6 0 0 Sin City
- ------------------------------------------------------------------------------
4744 Porno X-Treme #01 74:14 1995 Sin City 20-Sep-96
- ------------------------------------------------------------------------------
4438 Porno X-treme #02 69:54 Sin City 25-Jul-96
- ------------------------------------------------------------------------------
4743 Porno X-Treme #03 71:34 1995 Sin City, 20-Sep-96
- ------------------------------------------------------------------------------
4439 Porno X-treme #04 59:16 Sin City 25-Jul-96
- ------------------------------------------------------------------------------
4441 Porno X-treme #05 69:43 0 Sin City 25-Jul-96
- ------------------------------------------------------------------------------
2548 Pornocchio 72:50 1987 Moonlight Entert 29-Sep-95
- ------------------------------------------------------------------------------
4356 Pornstars Day Off 81:00 Fantazy Ent 26-Jul-96
- ------------------------------------------------------------------------------
2075 Portrait Of A Nymph 70:44 1988 Plum Prod. 23-Feb-95
- ------------------------------------------------------------------------------
4547 Portrait Of A Swinger 73:40 1992 CDI/Pepper 07-Aug-96
- ------------------------------------------------------------------------------
6279 Portrait Of Dorie Grey 88:42 1996 Klimaxxx Produc 04-Apr-97
- ------------------------------------------------------------------------------
0972 Portrait Passion #02 87:09 1992 Magma 14-Sep-94
- ------------------------------------------------------------------------------
1785 Portraits Of Lust 75:28 1992 Western Visuals 03-Jan-95
- ------------------------------------------------------------------------------
2942 Positions Wanted:
Experience Necess 87:15 1994 Paradise Visuals 19-Jan-96
- ------------------------------------------------------------------------------
2776 Possessed By Lust 80:30 0 ScanVIP 11-Dec-95
- ------------------------------------------------------------------------------
0997 Possession 79:56 1990 Cinderella 12-Sep-94
- ------------------------------------------------------------------------------
5241 Poupees Mal Baisees
(Avec Coupures) 84:53 0 Turbo Film 08-Jan-97
- ------------------------------------------------------------------------------
3258 Power Blonde 72:21 1988 AVC 06-May-96
- ------------------------------------------------------------------------------
0802 Precious Peak 73:22 Zane Ent. 01-Jun-94
- ------------------------------------------------------------------------------
2138 Prelude 83:05 1992 VideoTeam 29-Mar-95
- ------------------------------------------------------------------------------
2512 Premier Amateur
Sessions #04 79:38 1992 Pearl Necklace V 22-Aug-95
- ------------------------------------------------------------------------------
1103 Premiere Sessions #01 108:22 1993 Pearl Necklace 09-Sep-94
- ------------------------------------------------------------------------------
1105 Premiere Sessions #03 105:37 1994 Pearl Necklace 09-Sep-94
- ------------------------------------------------------------------------------
1104 Premiere Sessions 2 109:27 1993 Pearl Necklace 09-Sep-94
- ------------------------------------------------------------------------------
1164 Premium Pentration 111:35 Down & Dirty Vid 07-Sep-94
- ------------------------------------------------------------------------------
3384 Prendetemi Sono Vostra 69:55 01-May-96
- ------------------------------------------------------------------------------
4059 Prescription for Lust 81:15 1995 Nitro Production 14-Jan-97
- ------------------------------------------------------------------------------
Page 68
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2655 Priceless 98:25 1995 Night Magic Vide 05-Oct-95
- ------------------------------------------------------------------------------
6167 Prima #09 00:00 Ona Zee 20-Feb-97
- ------------------------------------------------------------------------------
6167 Prima #09 00:00 Ona Zee/Midnigh 20-Feb-97
- ------------------------------------------------------------------------------
6164 Prima #10 118:51 Ona Zee/Midnigh 20-Feb-97
- ------------------------------------------------------------------------------
6166 Prima #11 00:00 Ona Zee 20-Feb-97
- ------------------------------------------------------------------------------
6027 Prima #12 00:00 Ona Zee 10-Feb-97
- ------------------------------------------------------------------------------
6163 Prima #13 00:00 Ona Zee 20-Feb-97
- ------------------------------------------------------------------------------
6040 Prima #14 - Hotel
Europa 121:48 1995 Ona Zee/Midnigh 10-Feb-97
- ------------------------------------------------------------------------------
6041 Prima #15 94:18 1996 Ona Zee/Midnigh 10-Feb-97
- ------------------------------------------------------------------------------
6232 Prima #16: Carnal
College 105:36 0 Ona Zee/Max & P 01-Mar-97
- ------------------------------------------------------------------------------
6623 Prima #17: Indecent
Confessions 88:49 1995 Ona Zee/Brickho 17-Jul-97
- ------------------------------------------------------------------------------
6167 Prima #9 95:23 1995 Midnight Product 19-Aug-97
- ------------------------------------------------------------------------------
1192 Primal Desires 70:36 1993 Executive Vid. 28-Oct-94
- ------------------------------------------------------------------------------
6583 Primal Instinct 100:49 1996 Snatch Prod. 07-Jun-97
- ------------------------------------------------------------------------------
4549 Prime Offender 84:35 1993 CDI/Pepper 07-Aug-96
- ------------------------------------------------------------------------------
4012 Prime Slime #02 73:49 16-Jul-96
- ------------------------------------------------------------------------------
1051 Prince Of Lies 75:18 1992 Legend 31-Oct-94
- ------------------------------------------------------------------------------
4799 Princess Of Persia 83:44 1993 In-X-Cess Produc 17-Oct-96
- ------------------------------------------------------------------------------
2925 Princess Of Thieves 74:36 1994 Sin City 03-Jan-96
- ------------------------------------------------------------------------------
2289 Principles Of Lust 84:00 1992 Western Visuals 01-May-95
- ------------------------------------------------------------------------------
1793 Prison Love Doll 88:15 1994 Tabasco Pepper 20-Jan-95
- ------------------------------------------------------------------------------
4495 Privat Extrem #07 79:02 EMP Video 01-Aug-96
- ------------------------------------------------------------------------------
4504 Privat Extrem #11 71:47 0 01-Aug-96
- ------------------------------------------------------------------------------
2270 Privat Extreme #09 69:40 1994 Antares/EMP Vid, 02-Jun-95
- ------------------------------------------------------------------------------
3829 Privat Profis 73:26 28-Jul-96
- ------------------------------------------------------------------------------
4591 Privat Profis 81:25 EMP Videp 23-Aug-96
- ------------------------------------------------------------------------------
4091 Privat Profis #01 00:00 EMP Video
- ------------------------------------------------------------------------------
2268 Privat Profis #04 72:48 1994 Antares/EMP Vid. 02-Jun-95
- ------------------------------------------------------------------------------
4064 Privat Profis #05 86:51 0 28-Jul-96
- ------------------------------------------------------------------------------
1288 Private Dancer 72:11 1992 Cinderella 17-Nov-94
- ------------------------------------------------------------------------------
2267 Private Demonstration
#02 72:28 1994 Antares 02-Jun-95
- ------------------------------------------------------------------------------
5309C Private Fantasies 00:00
- ------------------------------------------------------------------------------
5398C Private Fantasies 00:00
- ------------------------------------------------------------------------------
5327C Private Fantasies #04 00:00
- ------------------------------------------------------------------------------
4502 Private Film #01 -
Anal Academy 91:06 0 Odyssey Group 01-Aug-96
- ------------------------------------------------------------------------------
4085 Private Film #03 -
Lessons In Lust 91:00 Odyssey Group/P 14-Jan-97
- ------------------------------------------------------------------------------
4093 Private Film #04 00:00 Odyssey Group
- ------------------------------------------------------------------------------
4070 Private Film #05 115:58 Odyssey Group
- ------------------------------------------------------------------------------
4072 Private Film #07 87:34 Odyssey Group 28-Jul-96
- ------------------------------------------------------------------------------
4082 Private Film #08 84:44 1994 Odyssey Group 24-Jul-96
- ------------------------------------------------------------------------------
4090 Private Film #09 85:34 1996 Odyssey Group 30-Oct-96
- ------------------------------------------------------------------------------
4081 Private Film #10-
Money for nothin sex 96:07 0 Odyssey Group/ 04-Jun-97
- ------------------------------------------------------------------------------
4080 Private Film #11-
Virgin Treasures one 103:17 0 Odyssey Group/ 04-Jun-97
- ------------------------------------------------------------------------------
4083 Private Film #12 84:24 1996 Odyssey Group 30-Oct-96
- ------------------------------------------------------------------------------
Page 69
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- ------------------------------------------------------------------------------
4895 Private Film #13-
Virgin Treasures 2 77:03 1995 Odyssey Group 16-Oct-96
- ------------------------------------------------------------------------------
4896 Private Film #14-
Costa Rica Studies 79:06 1995 Odyssey Group/P 16-Oct-96
- ------------------------------------------------------------------------------
4897 Private Film #15 -
The Golden Triangle 88:02 1993 Odyssey Group/P 16-Oct-96
- ------------------------------------------------------------------------------
4898 Private Film #16 88:26 1995 Odyssey Group/P 16-Oct-96
- ------------------------------------------------------------------------------
4899 Private Film #18 -
The Kissing Fields 75:24 1995 Odyssey Group/P 16-Oct-96
- ------------------------------------------------------------------------------
4904 Private Film #19 -
La Dolce Vita Hotel 87:30 1995 Odyssey Group/P 16-Oct-96
- ------------------------------------------------------------------------------
4893 Private Film #21 86:04 1995 Odyssey Group/P 16-Oct-96
- ------------------------------------------------------------------------------
4894 Private Film #22 -
Samba 83:48 1995 Odyssey Group/P 16-Oct-96
- ------------------------------------------------------------------------------
4888 Private Film #23 -
The Tower #3 112:27 1995 Odyssey Group 28-Aug-97
- ------------------------------------------------------------------------------
4889 Private Film #24 -
Arrow Head 97:06 1995 Odyssey Group 16-Oct-96
- ------------------------------------------------------------------------------
4873 Private Film #25 -
Apocolypse Climax 75:08 1995 Odyssey Group 17-Oct-96
- ------------------------------------------------------------------------------
4874 Private Film #26 -
Apocolypse Climax# 69:58 1995 Odyssey Group 17-Oct-96
- ------------------------------------------------------------------------------
4891 Private Film #27 -
The Gigolo - Part I 0 1995 Odyssey Group 17-Oct-96
- ------------------------------------------------------------------------------
4892 Private Film #28 -
The Gigolo - Part II 143:35 1995 Odyssey Group 17-Oct-96
- ------------------------------------------------------------------------------
4086 Private Films #02 -
Anal Manor 0
- ------------------------------------------------------------------------------
4868 Private Films -
"The Tower" 122:20 1995 Milcap Publishin 16-Oct-96
- ------------------------------------------------------------------------------
6020 Private Gold #01 89:29 1995 Odyssey Group 15-Jan-97
- ------------------------------------------------------------------------------
6022 Private Gold #03 -
The Chase 81:42 1996 Odyssey Group 15-Jan-97
- ------------------------------------------------------------------------------
6021 Private Gold #04 -
Amazonas 81:06 1996 Odyssey Group 15-Jan-97
- ------------------------------------------------------------------------------
6133 Private Gold #07 124:08 1996 Odyssey Group 10-Feb-97
- ------------------------------------------------------------------------------
6132 Private Gold #08 94:56 Odyssey Group/ 10-Feb-97
- ------------------------------------------------------------------------------
6103 Private Gold #09 -
Private Dancer 77:48 1996 Odyssey Group/ 24-Feb-97
- ------------------------------------------------------------------------------
6614 Private Love Affair 88:00 1996 In X Cess Produc 20-Jun-97
- ------------------------------------------------------------------------------
1546 Private Moments 75:04 1987 Night Magic 21-Nov-94
- ------------------------------------------------------------------------------
5310C Private School Girls 00:00
- ------------------------------------------------------------------------------
5192 Private Stories #01 98:04 1995 Odyssey Group 08-Jan-97
- ------------------------------------------------------------------------------
4916 Private Stories #02 102:53 1995 Odyssey Group 12-Dec-96
- ------------------------------------------------------------------------------
5184 Private Stories #03 79:05 1995 Odyssey Group 12-Dec-97
- ------------------------------------------------------------------------------
5183 Private Stories #05 76:38 1995 Odyssey Group 12-Dec-97
- ------------------------------------------------------------------------------
5182 Private Stories #06 0 Odyssey Group 12-Dec-97
- ------------------------------------------------------------------------------
5181 Private Stories #07 67:34 1996 Odyssey GroupM 17-Jan-97
- ------------------------------------------------------------------------------
5185 Private Stories #08 75:49 1995 Odyssey Group 12-Dec-97
- ------------------------------------------------------------------------------
6098 Private Stories #11 86:23 1996 Odyssey Group 24-Feb-97
- ------------------------------------------------------------------------------
6113 Private Stories #12 61:59 1996 Odyssey Group 20-Feb-97
- ------------------------------------------------------------------------------
5194 Private Stories #4 00:00 Odyssey Group 08-Jan-97
- ------------------------------------------------------------------------------
6005C Private Teacher 00:00
- ------------------------------------------------------------------------------
4902 Private Video #17 87:16 1994 Odyssey Group/P 16-Oct-96
- ------------------------------------------------------------------------------
4096 Private Video Magazine
#01 110:20 1993 Odyssey Group 23-Jul-96
- ------------------------------------------------------------------------------
4071 Private Video Magazine
#03 85:00 Odyssey Group 28-Jul-96
- ------------------------------------------------------------------------------
4065 Private Video Magazine
#04 86:51 1993 Odyssey Group 28-Jul-96
- ------------------------------------------------------------------------------
4062 Private Video Magazine
#06 103:39 1994 Odyssey Group 18-Jul-96
- ------------------------------------------------------------------------------
4116 Private Video Magazine
#07 67:10 1994 Odyssey Group 18-Jul-96
- ------------------------------------------------------------------------------
4487 Private Video Magazine
#08 78:43 1993 Odyssey Group 01-Aug-96
- ------------------------------------------------------------------------------
4061 Private Video Magazine
#09 101:25 1994 Odyssey Group 18-Jul-96
- ------------------------------------------------------------------------------
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- ------------------------------------------------------------------------------
4069 Private Video Magazine #10 83:16 1994 Odyssey Group 28-Jul-96
- ------------------------------------------------------------------------------
4501 Private Video Magazine #11 97:56 1994 Odyssey Group 01-Aug-96
- ------------------------------------------------------------------------------
4115 Private Video Magazine #12 87:25 1994 Odyssey Group 28-Jul-96
- ------------------------------------------------------------------------------
4505 Private Video Magazine #13 84:23 1994 Odyssey Group 01-Aug-96
- ------------------------------------------------------------------------------
4067 Private Video Magazine #14 111:29 1994 Odyssey Group 28-Jul-96
- ------------------------------------------------------------------------------
4095 Private Video Magazine #15 71:53 1996 Odyssey Group 30-Oct-96
- ------------------------------------------------------------------------------
4078 Private Video Magazine #17 88:56 1996 Odyssey Group 30-Oct-96
- ------------------------------------------------------------------------------
4079 Private Video Magazine #18 102:42 1995 Odyssey Group/ 15-Jan-97
- ------------------------------------------------------------------------------
4089 Private Video Magazine #19 87:59 1996 Odyssey Group 30-Oct-96
- ------------------------------------------------------------------------------
4871 Private Video Magazine #20 85:31 1995 Odyssey Group 17-Oct-96
- ------------------------------------------------------------------------------
4890 Private Video Magazine #21 85:34 1995 Odyssey Group/ 17-Oct-96
- ------------------------------------------------------------------------------
4936 Private Video Magazine #22 103:57 1995 Odyssey Group 15-Nov-96
- ------------------------------------------------------------------------------
4937 Private Video Magazine #23 98:36 1995 Odyssey Group 15-Nov-96
- ------------------------------------------------------------------------------
4872 Private Video Magazine #24 86:58 1995 Odyssey Video 17-Oct-96
- ------------------------------------------------------------------------------
4939 Private Video Magazine #25 83:18 1995 Odyssey Group 15-Nov-96
- ------------------------------------------------------------------------------
4938 Private Video Magazine #26 94:25 1995 Odyssey Group 15-Nov-96
- ------------------------------------------------------------------------------
1804 Pro Am 114:36 1993 Sunny McKay Pr 24-Jan-95
- ------------------------------------------------------------------------------
2488 Pro Am #04 - New faces And
Hot Bodie 71:20 1992 22-Aug-95
- ------------------------------------------------------------------------------
2490 Pro Am #06 84:41 1993 22-Aug-95
- ------------------------------------------------------------------------------
4074 Profiles #01-Profiles of
the Young and 83:30
- ------------------------------------------------------------------------------
4013 Profiles #02 -
"Generation Sex" 83:47 1995 16-Jul-96
- ------------------------------------------------------------------------------
4014 Profiles #03-"House Dick" 107:30 1996 16-Jul-96
- ------------------------------------------------------------------------------
4099 Profiles #04 0
- ------------------------------------------------------------------------------
4098 Profiles #05 - Planet
Lust - 79:16 1991 26-Jul-96
- ------------------------------------------------------------------------------
6698 Profiles The Series
Eating In 69:27 1997 X-Plor Media Gr 14-Aug-97
- ------------------------------------------------------------------------------
3464 Provacative 84:36 1995 VPN 28-May-96
- ------------------------------------------------------------------------------
3612 Psychic Healer 106:39 1994 02-Jul-96
- ------------------------------------------------------------------------------
2921 Public Places 77:19 1994 Sin City 03-Jan-96
- ------------------------------------------------------------------------------
4066 Pulp Friction 82:27 1994
- ------------------------------------------------------------------------------
4678 Pump Fiction 73:22 CDI/Video Team 04-Sep-96
- ------------------------------------------------------------------------------
4309 Pumping Irene 70:39 1986 Fantazy Ent 25-Jul-96
- ------------------------------------------------------------------------------
4311 Pumping Irene #02 69:59 1986 Fantazy Ent 25-Jul-96
- ------------------------------------------------------------------------------
3156 Pure Honey 74:15 1987 Video Team 25-Mar-96
- ------------------------------------------------------------------------------
4307 Pure Sex 80:06 Fantazy Ent 25-Jul-96
- ------------------------------------------------------------------------------
4563 Purely Sexual 74:55 1991 Hollywood Video 23-Aug-96
- ------------------------------------------------------------------------------
4073 Pussy Clips #01 85:33 1995 23-Jul-96
- ------------------------------------------------------------------------------
4060 Pussy Clips #02 81:01 1995 28-Jul-96
- ------------------------------------------------------------------------------
4107 Pussy Clips #03 82:06 28-Jul-96
- ------------------------------------------------------------------------------
4106 Pussy Clips #04 77:33 28-Jul-96
- ------------------------------------------------------------------------------
4114 Pussy Clips #05 87:06 1994 28-Jul-96
- ------------------------------------------------------------------------------
4120 Pussy Clips #06 86:07 1995 28-Jul-96
- ------------------------------------------------------------------------------
4121 Pussy Clips #07 87:17 1995 28-Jul-96
- ------------------------------------------------------------------------------
4119 Pussy Clips #08 87:39 1995 28-Jul-96
- ------------------------------------------------------------------------------
4410 Pussy Fest #01 115:11 26-Jul-96
- ------------------------------------------------------------------------------
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- ------------------------------------------------------------------------------
4118 Pussy Fest #02 116:33 1995 28-Jul-96
- ------------------------------------------------------------------------------
3602 Pussy Fest #04 115:33 Nitro 25-Jul-96
- ------------------------------------------------------------------------------
4068 Pussy Jobs 84:27 0 28-Jul-96
- ------------------------------------------------------------------------------
2398 Pussy Posse 90:03 1993 Coast To Coast 27-Jun-95
- ------------------------------------------------------------------------------
4063 Pussy Tales 117:45 1995 28-Jul-96
- ------------------------------------------------------------------------------
2399 Pussy Women #01 97:35 Coast To Coast 27-Jun-95
- ------------------------------------------------------------------------------
1765 Pussycat Galore 77:26 1987 Night Magic 09-Dec-94
- ------------------------------------------------------------------------------
4878 Pussyclips #09 83:44 1996 Snatch Prod. 17-Oct-96
- ------------------------------------------------------------------------------
4879 Pussyclips #10 83:00 1996 Snatch Productio 17-Oct-96
- ------------------------------------------------------------------------------
3506 Pussyfest Of The Northwest 113:23 1995 Nitro 25-Sep-96
- ------------------------------------------------------------------------------
4097 Pussyfest Of The Northwest
#03 115:11 1995 Nitro Production 15-Jan-97
- ------------------------------------------------------------------------------
4123 Pussyman #01 - The Search 94:52 Snatch Prod. 14-Jan-97
- ------------------------------------------------------------------------------
2273 Pussyman #02 86:30 Coast To Coast 31-Mar-95
- ------------------------------------------------------------------------------
4088 Pussyman #03 111 :30 28-Jul-96
- ------------------------------------------------------------------------------
4087 Pussyman #04 86:08 28-Jul-96
- ------------------------------------------------------------------------------
3614 Pussyman #05 91:13 1994 02-Jul-96
- ------------------------------------------------------------------------------
4109 Pussyman #06 84:03 28-Jul-96
- ------------------------------------------------------------------------------
4111 Pussyman #07 83:14 28-Jul-96
- ------------------------------------------------------------------------------
4108 Pussyman #08 86:12 28-Jul-96
- ------------------------------------------------------------------------------
4110 Pussyman #09 88:13 28-Jul-96
- ------------------------------------------------------------------------------
4101 Pussyman #10 80:06 23-Jul-96
- ------------------------------------------------------------------------------
3779 Pussyman #11 87:48 03-Jul-96
- ------------------------------------------------------------------------------
4103 Pussyman #13 83:52 28-Jul-96
- ------------------------------------------------------------------------------
6575 Pussyman #14 121:35 1996 Snatch Prod. 05-Jun-97
- ------------------------------------------------------------------------------
4122 Pussyman Auditions #01 111:24 1995 24-Jul-96
- ------------------------------------------------------------------------------
4112 Pussyman Auditions #02 88:34 24-Jul-96
- ------------------------------------------------------------------------------
4380 Pussyman Auditions #02 -
The Prize 91:13 26-Jul-96
- ------------------------------------------------------------------------------
4379 Pussyman Auditions #03 75:21 1995 26-Jul-96
- ------------------------------------------------------------------------------
4113 Pussyman Auditions #04 78:35 1995 26-Jul-96
- ------------------------------------------------------------------------------
4102 Pussyman Auditions #05 85:12 28-Jul-96
- ------------------------------------------------------------------------------
4104 Pussyman Auditions #06 85:22 28-Jul-96
- ------------------------------------------------------------------------------
4378 Pussyman Auditions #07 88:27 1995 26-Jul-96
- ------------------------------------------------------------------------------
4105 Pussyman Auditions #07 87:53 Snatch Prod.
- ------------------------------------------------------------------------------
4882 Pussyman Auditions #09 80:07 1995 Snatch Prod. 17-Oct-96
- ------------------------------------------------------------------------------
4883 Pussyman Auditions #10 84:48 1995 Snatch Prod. 17-Oct-96
- ------------------------------------------------------------------------------
4884 Pussyman Auditions #11 87:09 1995 Snatch Prod. 17-Oct-96
- ------------------------------------------------------------------------------
4885 Pussyman Auditions #13 86:09 1995 Snatch Productio 17-Oct-96
- ------------------------------------------------------------------------------
4886 Pussyman Auditions #14 84:41 1995 Snatch Productio 17-Oct-96
- ------------------------------------------------------------------------------
4887 Pussyman Auditions #15 81:25 1995 Snatch Prod. 17-Oct-96
- ------------------------------------------------------------------------------
4856 Pussyman Auditions #16 82:54 1995 Snatch Prod. 17-Oct-96
- ------------------------------------------------------------------------------
4858 Pussyman Auditions #18 74:05 1996 Snatch Prnductio 17-Oct-96
- ------------------------------------------------------------------------------
4850 Pussyman Auditions #19 66:03 1996 Snatch Productio 17-Oct-96
- ------------------------------------------------------------------------------
4851 Pussyman Auditions #20 67:28 1996 Snatch Productio 17-Oct-96
- ------------------------------------------------------------------------------
4852 Pussyman Auditions #21 81:43 1996 Snatch Productio 17-Oct-96
- ------------------------------------------------------------------------------
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4853 Pussyman Auditions #22 78:24 1996 Snatch Productio 17-Oct-96
- ------------------------------------------------------------------------------
4880 Pussyman House Party 81:23 1996 Snatch Prod. 17-Oct-96
- ------------------------------------------------------------------------------
4881 Pussyman House Party #02 75:22 1996 Snatch Prod. 17-Oct-96
- ------------------------------------------------------------------------------
4084 Pussywhipped 00:00
- ------------------------------------------------------------------------------
4680 Pussywoman #03 87:29 1995 CoastTo Coast 04-Sep-96
- ------------------------------------------------------------------------------
2006 Put 'Em On Da Glass 105:48 1994 Video Team 23-Feb-95
- ------------------------------------------------------------------------------
1243 Putting Her Ass On The Line 85:54 1991 Dreamland Ent. 27-Oct-94
- ------------------------------------------------------------------------------
2580 Putting It All Behind #02 73:13 1995 29-Sep-95
- ------------------------------------------------------------------------------
2860 Quantum Deep 75:49 1993 Heatwave 03-Jan-96
- ------------------------------------------------------------------------------
6618 Quebec Perversity 59:40 1995 In-X-Cess Produc 17-Jul-97
- ------------------------------------------------------------------------------
4933 Quebec Perversity #01 103:21 1995 In-X-Cess Produc 08-Nov-96
- ------------------------------------------------------------------------------
4935 Quebec Perversity #03 107:30 1995 In-X-Cess Produc 08-Nov-96
- ------------------------------------------------------------------------------
5195 Quebec Perversity #04 108:30 1996 In-X-Cess Produc 14-Jan-97
- ------------------------------------------------------------------------------
6609 Quebec Perversity #05 44:35 1996 In-X-Cess Produc 08-Jun-97
- ------------------------------------------------------------------------------
6603 Quebec Perversity #6 106:27 1996 Innerview Video 28-Aug-97
- ------------------------------------------------------------------------------
3045 Queen Of Double Penetration 58:13 1987 Parliment Video 31-Jan-96
- ------------------------------------------------------------------------------
1064 Queen Of Hearts 84:05 1993 08-Aug-94
- ------------------------------------------------------------------------------
1187 Queen Of Hearts #03 97:11 1992 08-Aug-94
- ------------------------------------------------------------------------------
1099 Queen Of Hearts 2 - Hearts
On Fire 82:07
- ------------------------------------------------------------------------------
4835 Quel Desiderio Eterno 67:26 1996 Ona Zee Prod. 20-Sep-96
- ------------------------------------------------------------------------------
1304 Quicksilver 76:29 Cinderella 17-Nov-94
- ------------------------------------------------------------------------------
2792 Rachel Ryan Exposed 78:03 1988 Western Visuals 29-Nov-95
- ------------------------------------------------------------------------------
4152 Radio Active 73:40 F.J. Lincon 04-Apr-97
- ------------------------------------------------------------------------------
0812 Raging Hormones 68:01 N/A 23-Oct-94
- ------------------------------------------------------------------------------
4721 Rainwoman 67:27 1989 Coast To Coast 24-Sep-96
- ------------------------------------------------------------------------------
0882 Rainwoman #03 78:42 1990 Coast To Coast 14-Aug-94
- ------------------------------------------------------------------------------
1011 Rainwoman #04 86:00 1990 Coast To Coast 12-Sep-94
- ------------------------------------------------------------------------------
1010 Rainwoman #05 89:37 1992 Coast To Coast 12-Sep-94
- ------------------------------------------------------------------------------
0966 Rainwoman #06 73:18 1993 Coast To Coast 23-Oct-94
- ------------------------------------------------------------------------------
1997 Rainwoman #07 86:11 1994 Coast To Coast 08-Feb-95
- ------------------------------------------------------------------------------
2431 Rainwoman #08 75:22 1994 Coast To Coast 18-Jul-95
- ------------------------------------------------------------------------------
4682 Rainwoman #09 76:46 1995 Coast To Coast 04-Sep-96
- ------------------------------------------------------------------------------
0842 Rainwoman 2 79:36
- ------------------------------------------------------------------------------
1826 Raising Kane 77:16 1993 Big Dog 20-Jan-95
- ------------------------------------------------------------------------------
2166 Ram-ohh 0 1986
- ------------------------------------------------------------------------------
1575 Rambella 92:15 Bahia Film Prod. 18-Nov-94
- ------------------------------------------------------------------------------
2296 Rambone - The First Time 80:22 1985 Jake Of Hearts P 04-Jun-95
- ------------------------------------------------------------------------------
0689 Ranger Wendy 83:18 1993 n 01-Jun-94
- ------------------------------------------------------------------------------
4128 Ranger Wendy 0 0
- ------------------------------------------------------------------------------
4520 Rapture 60:58 1991 01-Aug-96
- ------------------------------------------------------------------------------
1001 Raquel Untamed 82:00 1990 Cinderella 12-Sep-94
- ------------------------------------------------------------------------------
0850 Raunch #01 0
- ------------------------------------------------------------------------------
0884 Raunch #02 70:44 1990 Coast To Coast 14-Aug-94
- ------------------------------------------------------------------------------
2388 Raunch #03 73:45 1991 Coast To Coast 20-Jun-95
- ------------------------------------------------------------------------------
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- ------------------------------------------------------------------------------
1013 Raunch #04 - Silver Melts 78:38 1991 06-Oct-94
- ------------------------------------------------------------------------------
0943 Raunch #06 73:54 Coast To Coast 14-Aug-94
- ------------------------------------------------------------------------------
0967 Raunch #07 76:27 1993 Coast To Coast 14-Aug-94
- ------------------------------------------------------------------------------
1134 Raunch #08 83:01 1994
- ------------------------------------------------------------------------------
1463 Raunch #09 77:20 1993 Coast To Coast 18-Nov-94
- ------------------------------------------------------------------------------
1124 Raunchiest -The Best Of
Raunch- 70:36 1992 Coast To Coast 28-Oct-94
- ------------------------------------------------------------------------------
0081 Raw Sewage 80:40 1990 Filmco Releasing 01-Jun-94
- ------------------------------------------------------------------------------
4550 Razor's Edge 89:29 1995 Ona Zee Prod. 23-Aug-96
- ------------------------------------------------------------------------------
2788 Ready Freddie - Freddies'
Funhouse 81:08 1992 FHV/Sunshine 29-Nov-95
- ------------------------------------------------------------------------------
0089 Ready To Drop #02 81:41 1992 Filmco Releasing 01-Jun-94
- ------------------------------------------------------------------------------
2641 Ready To Drop #03 -
Get Me To The Ch 86:15 1994 Filmco 18-Oct-95
- ------------------------------------------------------------------------------
2640 Ready To Drop #04 76:01 1994 Filmco 18-Oct-95
- ------------------------------------------------------------------------------
0803 Realities 83:33 1991 Zane Ent. 01-Jun-94
- ------------------------------------------------------------------------------
0921 Realities #02 76:17 1992 Zane Ent. 25-Aug-94
- ------------------------------------------------------------------------------
4732 Reamin'Reunion 81:37 Coast to Coast 24-Sep-96
- ------------------------------------------------------------------------------
1414 Rear Admiral 75:21 Zane Ent. 25-Nov-94
- ------------------------------------------------------------------------------
1816 Rear Burner 68:21 1990 Intropics 20-Jan-95
- ------------------------------------------------------------------------------
6259 Rear Windows 84:30 1996 XTC Films 04-Apr-97
- ------------------------------------------------------------------------------
3232 Rebecca's World Tour 105:41 Western Visuals 23-Apr-96
- ------------------------------------------------------------------------------
0804 Rebel 73:00 1991 Zane Ent. 01-Jun-94
- ------------------------------------------------------------------------------
2865 Reckless Passion 72:43 1986 Moonlight Entert 03-Jan-96
- ------------------------------------------------------------------------------
2618 Recontres Anales #02 51:19 1992 Charnel 08-Sep-95
- ------------------------------------------------------------------------------
3549 Red Baron 74:03 1989 Fantazy Ent. 25-Jul-96
- ------------------------------------------------------------------------------
1689 Red Heads #01 110:03 1992 Western Visuals 20-Dec-94
- ------------------------------------------------------------------------------
1031 Red Hot And Pink #01 98:28 1991 Cinderella 12-Sep-94
- ------------------------------------------------------------------------------
1084 Red Hot And Pink #03 100:48 1993 Cinderella 22-Oct-94
- ------------------------------------------------------------------------------
1308 Red Hot And Pink #04 95:18 1991 XXX Video 17-Nov-94
- ------------------------------------------------------------------------------
1309 Red Hot And Pink #05 99:08 XXX Video 17-Nov-94
- ------------------------------------------------------------------------------
1310 Red Hot And Pink #07 92:47 1991 XXX Video 17-Nov-94
- ------------------------------------------------------------------------------
1311 Red Hot And Pink #08 92:53 1991 XXX Video 17-Nov-94
- ------------------------------------------------------------------------------
2062 Red Hot Pink #09 74:56 1990 Cinderella 23-Feb-95
- ------------------------------------------------------------------------------
2920 Red Light 80:49 1994 Sin City 03-Jan-96
- ------------------------------------------------------------------------------
0097 Red On The Noodle Like
Swance On A 78:11 Filmco Releasing 01-Jun-94
- ------------------------------------------------------------------------------
2594 Red Riding She-Male 80:06 1995 Pleasure Produc 05-Oct-95
- ------------------------------------------------------------------------------
1877 Red Serano #05 113:32 1993 Pepper Prod. 30-Jan-95
- ------------------------------------------------------------------------------
1130 Red Serrano 105:00 1993 Pepper Prod. 07-Sep-94
- ------------------------------------------------------------------------------
1148 Red Serrano #02 109:14 Pepper Prod. 22-Oct-94
- ------------------------------------------------------------------------------
2063 Red Serrano #03 108:50 1993 Pepper Prod. 23-Feb-95
- ------------------------------------------------------------------------------
2046 Red Serrano #04 111:40 1993 Pepper Prod. 23-Feb-95
- ------------------------------------------------------------------------------
1916 Reel Life 84:01 1993 Zane Ent. 01-Mar-95
- ------------------------------------------------------------------------------
3616 Reel People #03 73:35 02-Jul-96
- ------------------------------------------------------------------------------
2044 Reel People #04 68:55 1994 Ream-O-Rama 07-Jul-95
- ------------------------------------------------------------------------------
2072 Reel People #05 82:39 1994 Plum Prod. 23-Feb-95
- ------------------------------------------------------------------------------
4147 Reel People #06 78:33 1991 23-Jul-96
- ------------------------------------------------------------------------------
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- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
4145 Reel People #07 76:41 1995 Plum Prod. 31-Dec-95
- ------------------------------------------------------------------------------
4155 Reel People #09 75:15 1995 Plum Prod. 02-Jun-97
- ------------------------------------------------------------------------------
4404 Reel World #01 77:06 1994 26-Jul-96
- ------------------------------------------------------------------------------
2856 Reelsex #04 114:42 1994 Spectacular Pict 03-Jan-96
- ------------------------------------------------------------------------------
2647 Reelsex 3 - Wet And Sticky 110:16 1994 Spectacular Pict 18-Oct-95
- ------------------------------------------------------------------------------
2700 Reflections 88:49 1995 Fat Dog 18-Oct-95
- ------------------------------------------------------------------------------
0936 Regarding Hiney 75:37 1991 Coast To Coast 14-Sep-94
- ------------------------------------------------------------------------------
2280 Rencontres Anales 2 - Sodo
Surprise 80:16 Charnel 31-Mar-95
- ------------------------------------------------------------------------------
2124 Rendez-Vous Des Cochonnes 58:07 Cast'or 10-Mar-95
- ------------------------------------------------------------------------------
1665 Renegade 85:08 1990 Cinderella 19-Dec-94
- ------------------------------------------------------------------------------
2911 Renegades 77:15 1994 Sin City 03-Jan-96
- ------------------------------------------------------------------------------
3141 Renegades 2 88:00 1995 28-Feb-96
- ------------------------------------------------------------------------------
2686 Reseau Baise 67:45 Euro-Sexe 02-Nov-95
- ------------------------------------------------------------------------------
1236 Restless Nights 80:50 1992 Big Apple Video 27-Oct-94
- ------------------------------------------------------------------------------
3179 Restless Passion 83:35 1987 Hollywood/RHF 25-Mar-96
- ------------------------------------------------------------------------------
4614 Return Of Dr. Black Love 82:13 1989 Coast-To-Coast 30-Aug-96
- ------------------------------------------------------------------------------
1850 Revealed 85:53 1992 Video Team 20-Jan-95
- ------------------------------------------------------------------------------
2997 Revelations 73:28 1992 Femme 01-May-96
- ------------------------------------------------------------------------------
2002 Rhapsody 70:22 1992 Video Team 23-Feb-95
- ------------------------------------------------------------------------------
2198 Riccione Sesso e Cultura 81:53 1992 27-Mar-95
- ------------------------------------------------------------------------------
6080 Riceburners 65:26
- ------------------------------------------------------------------------------
4543 Rich Bitch 81:07 1985 Hollywood Video 09-Aug-96
- ------------------------------------------------------------------------------
4536 Rick Savage's NY Video
Magazine #01 118:35 1994 Outlaw 23-Aug-96
- ------------------------------------------------------------------------------
4537 Rick Savage's NY Video
Magazine #02 120:38 1995 Outlaw 23-Aug-96
- ------------------------------------------------------------------------------
4538 Rick Savage's NY Video
Magazine #03 117:32 1995 Outlaw 23-Aug-96
- ------------------------------------------------------------------------------
4579 Rick Savage's NY Video
Magazine #04 116:55 1995 Outlaw 23-Aug-96
- ------------------------------------------------------------------------------
4753 Rick Savage's NY Video
Magazine #05 120:03 Outlaw 24-Sep-96
- ------------------------------------------------------------------------------
4751 Rick Savage's NY Video
Magazine #06 120:05 Outlaw 24-Sep-96
- ------------------------------------------------------------------------------
4749 Rick Savage's NY Video
Magazine #07 118:29 Outlaw 24-Sep-96
- ------------------------------------------------------------------------------
4754 Rick Savage's NY Video
Magazine #08 118:30 Outlaw 24-Sep-96
- ------------------------------------------------------------------------------
6152 Rick Savage's NY Video
Magazine #10 108:40 1996 Outlaw Prod. 24-Feb-97
- ------------------------------------------------------------------------------
6251 Ricky's French Adventure 85:30 Cinderella 04-Apr-97
- ------------------------------------------------------------------------------
2435 Ride The Pink Lady 84:31 1993 Western Visuals 18-Jul-95
- ------------------------------------------------------------------------------
5078 Right Stuff 80:31 1994 Plush Ent./Blue C 08-Jan-97
- ------------------------------------------------------------------------------
4237 Rim Job Rita 79:33 1994 Sin City 28-Apr-97
- ------------------------------------------------------------------------------
1284 Rim Shot 82:19 Cinderella 17-Nov-94
- ------------------------------------------------------------------------------
1963 Ring Of Passion 85:44 1993 Western Visuals 31-Jan-95
- ------------------------------------------------------------------------------
1834 Rings of Lust 73:46 1989 MLV Onio - Studi 03-Jan-95
- ------------------------------------------------------------------------------
1238 Ringside Knockout 81:24 1990 Dreamland Ent. 27-Oct-94
- ------------------------------------------------------------------------------
3613 Riot Girls 78:15 1994 02-Jul-96
- ------------------------------------------------------------------------------
2994 Rites Of Passison -
The Ultimate Sexual 62:10 1987 Femme 01-May-96
- ------------------------------------------------------------------------------
6296 Riviera Heat 93:75 Dick Nasty Prod. 08-May-97
- ------------------------------------------------------------------------------
1240 Roadgirls 82:18 1990 Dreamland Ent. 27-Oct-94
- ------------------------------------------------------------------------------
0879 Robin Head 74:05 1991 Coast To Coast 14-Aug-94
- ------------------------------------------------------------------------------
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- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
1476 Robofox 84:44 Fanta-Z/Cinderell 18-Nov-94
- ------------------------------------------------------------------------------
4125 RoboFox 0 0
- ------------------------------------------------------------------------------
1440 Robofox #02 84:13 Fanta-Z/Cinderell 07-Nov-94
- ------------------------------------------------------------------------------
4151 Rocco Unleashed 73:57 1994 23-Jul-96
- ------------------------------------------------------------------------------
6602 Rocco's Hot Pursuit 78:51 0 Kan Mrktg./Tellef 08-Jun-97
- ------------------------------------------------------------------------------
4124 Rocco's True Stories #01
(2 parts) 112:51 1993 Rocco Siffredi Pr 10-Feb-97
- ------------------------------------------------------------------------------
4523 Rocco's True Stories #02 106:00 1993 01-Aug-96
- ------------------------------------------------------------------------------
5251 Rock Hard 00:00
- ------------------------------------------------------------------------------
2629 Rocker 77:01 1995 Coast To Coast 30-Sep-95
- ------------------------------------------------------------------------------
1798 Rocks 72:50 1993 Video Team 20-Jan-95
- ------------------------------------------------------------------------------
5254 Rodney's Rookies 00:00
- ------------------------------------------------------------------------------
4919 Roll Over 88:50 1996 Nitro Production 04-Dec-96
- ------------------------------------------------------------------------------
2271 Roman Orgy 75:15 Pleasure Produc 01-May-95
- ------------------------------------------------------------------------------
2885 Romeo And Juliet 85:32 1987 Western Visuals 03-Jan-96
- ------------------------------------------------------------------------------
3184 Rookie Nookie #12 86:55 1993 Silver Foxx 25-Mar-96
- ------------------------------------------------------------------------------
3063 Rookie Nookie #14 84:10 1994 Silver Fox Prod. 19-Jan-96
- ------------------------------------------------------------------------------
1244 Route 69 69:48 Passion Video 27-Oct-94
- ------------------------------------------------------------------------------
5264 Roxy Rider Is In Control 00:00 Nitro
- ------------------------------------------------------------------------------
2831 Rump Shaker #04 76:29 1995 Heatwave Entert 29-Nov-95
- ------------------------------------------------------------------------------
4129 Rumphumpers #01 76:20 24-Jul-96
- ------------------------------------------------------------------------------
3620 Rumphumpers #02 74:02 02-Jul-96
- ------------------------------------------------------------------------------
4130 Rumphumpers #03 75:43 0 01-Aug-96
- ------------------------------------------------------------------------------
!4391 Rumphumpers #04 74:04 1992 26-Jul-96
- ------------------------------------------------------------------------------
4393 Rumphumpers #05 75:14 1992 26-Jul-96
- ------------------------------------------------------------------------------
4131 Rumphumpers #06 73:05 0 Glitz Video 30-Jun-98
- ------------------------------------------------------------------------------
4132 Rumphumpers #07 75:08 0 24-Jul-96
- ------------------------------------------------------------------------------
4133 Rumphumpers #08*CPPA(EDIT?) 75:17
- ------------------------------------------------------------------------------
4134 Rumphumpers #09 71:25 31-Dec-95
- ------------------------------------------------------------------------------
4529 Rumphumpers #11 72:12 01-Aug-96
- ------------------------------------------------------------------------------
4136 Rumphumpers #12 71:46 1993 Glitz Video 23-Aug-96
- ------------------------------------------------------------------------------
4137 Rumphumpers #13 71:55 1993 Glitz Video 23-Aug-96
- ------------------------------------------------------------------------------
3623 Rumphumpers #14 71:26 0 02-Jul-96
- ------------------------------------------------------------------------------
4138 Rumphumpers #15 73:25 1993 Glitz Video 23-Aug-96
- ------------------------------------------------------------------------------
4390 Rumphumpers #16 74:44 26-Jul-96
- ------------------------------------------------------------------------------
4140 Rumphumpers #17 72:58 Glitz Video 23-Aug-96
- ------------------------------------------------------------------------------
4139 Rumphumpers #18 74:48 1994 Glitz Video 23-Aug-96
- ------------------------------------------------------------------------------
6247 Rumpman's Backdoor Sailing 113:36 1996 Heatwave 04-Apr-97
- ------------------------------------------------------------------------------
3075 Russian Champagne 77:04 1993 Heat Wave Ent. 02-Feb-96
- ------------------------------------------------------------------------------
3524 Russian Roulette 103:22 1995 Nitro 24-Sep-96
- ------------------------------------------------------------------------------
4797 Russian Seduction 86:15 1993 In-X-Cess Prod./ 16-Oct-96
- ------------------------------------------------------------------------------
4193 Sabrina Starlet 100:59 1994 Sin City 30-Jun-96
- ------------------------------------------------------------------------------
3170 Safari Jane 74:49 1995 Erotic Angel/Mid 25-Mar-96
- ------------------------------------------------------------------------------
0880 Safe Cracker 78:46 1991 Coast To Coast 14-Aug-94
- ------------------------------------------------------------------------------
4190 Saints & Sinners 0 0
- ------------------------------------------------------------------------------
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- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
1436 Saints And Sinners 70:57 1993 Yellow Pepper 28-Oct-94
- ------------------------------------------------------------------------------
4192 Sala Di Montaggio 98:35 23-Jul-96
- ------------------------------------------------------------------------------
2222 Sala di Posa 89:59 1992
- ------------------------------------------------------------------------------
2687 Salope En Mini 84:16 Euro-Sexe 02-Nov-95
- ------------------------------------------------------------------------------
2871 Samantha - I Love You 74:45 1988 Western Visuals 03-Jan-96
- ------------------------------------------------------------------------------
1848 Samantha's Private
Fantasies 89:15 1994 Bad Girls 03-Jan-95
- ------------------------------------------------------------------------------
2530 San Francisco Connection 77:54 1992 Dolly Buster 30-Aug-95
- ------------------------------------------------------------------------------
2597 San Francisco Lesbians
#02 78:55 1992 Pleasure Produc 05-Oct-95
- ------------------------------------------------------------------------------
2672 San Francisco Lesbians
#03 87:26 1993 Pleasure Produc 30-Oct-95
- ------------------------------------------------------------------------------
2852 San Francisco Lesbians 1 79:15 05-Oct-95
- ------------------------------------------------------------------------------
4189 Sapore Di Donna - Essence
Of A Woma 87:05 1995 Stars Pictures 30-Jun-96
- ------------------------------------------------------------------------------
4956 Sarah's Inheritance 87:56 1995 Digital Media 05-Nov-96
- ------------------------------------------------------------------------------
4727 Satania 84:31 1986 CDI/Dreamland 24-Sep-96
- ------------------------------------------------------------------------------
2438 Satin And Lace**Cppa 84:34 1994
- ------------------------------------------------------------------------------
1212 Satin Shadows 69:55 Cinderella 05-Nov-94
- ------------------------------------------------------------------------------
0813 Satisfaction 73:46 1992 n 23-Oct-94
- ------------------------------------------------------------------------------
1356 Saturday Night Special 74:21 Dreamland Ent. 31-Oct-94
- ------------------------------------------------------------------------------
4453 Savage Liasons**CPPA 79:27 1995 Bella Pictures 25-Jul-96
- ------------------------------------------------------------------------------
2455 Savannah R.N. 81:20 1993 Nearly Normal Pr 22-Aug-95
- ------------------------------------------------------------------------------
2947 Savannah Unleashed 63:56 1994 Heatwave 09-Jan-96
- ------------------------------------------------------------------------------
4759 Say Something Nasty 73:53 1989 Coast To Coast 24-Sep-96
- ------------------------------------------------------------------------------
4194 Scambio Di Coppia 87:25 Ona Zee Prod. 30-Jun-96
- ------------------------------------------------------------------------------
3381 Scandalosa Gilda 86:47 0 02-May-96
- ------------------------------------------------------------------------------
0885 Scandalous 73:02 Coast To Coast 14-Aug-94
- ------------------------------------------------------------------------------
2320 Scarlet Woman 76:43 1993 Wicked Pictures 01-May-95
- ------------------------------------------------------------------------------
0805 Scenes From A Crystal
Ball 69:56 1992 Zane Ent. 01-Jun-94
- ------------------------------------------------------------------------------
1003 Scented Secrets 81:47 1990 Cinderella 12-Sep-94
- ------------------------------------------------------------------------------
3280 Scorched 84:31 1996 Ona Zee Prod. 25-Apr-96
- ------------------------------------------------------------------------------
2259 Scream In The Night 79:02 1990 Coast To Coast 07-Jun-95
- ------------------------------------------------------------------------------
2864 Screamers 83:29 1995 Heatwave 03-Jan-96
- ------------------------------------------------------------------------------
1539 Screaming Orgasm 75:28 1989 VCR 28-Oct-94
- ------------------------------------------------------------------------------
4191 Screaming Rage 68:13 1988 Las Vegas Filmw 30-Jun-96
- ------------------------------------------------------------------------------
5245 Screen Test 76:35 Turbo Film 08-Jan-97
- ------------------------------------------------------------------------------
3149 Screw The Right Thing 71:59 16-Feb-96
- ------------------------------------------------------------------------------
4766 Screwdriver Saloon 73:38 Coast To Coast 24-Sep-96
- ------------------------------------------------------------------------------
0684 Sea Of Love 90:04 1990 Cinderella 01-Aug-94
- ------------------------------------------------------------------------------
0848 Sea Of Lust 85:06 1989 Coast To Coast 06-May-94
- ------------------------------------------------------------------------------
3259 Sea Of Lust 72:31 1989 Fantazy Ent 09-May-96
- ------------------------------------------------------------------------------
6531 Sea, Sex and Sodo 85:13 Turbo Films 01-May-97
- ------------------------------------------------------------------------------
2809 Sean Michael's Brooklyn
Nights 83:56 1994 Odyssey Pinnacl 04-Jan-96
- ------------------------------------------------------------------------------
1087 Sean Micheal's Jam 87:19 1994 Pleasure 08-Aug-94
- ------------------------------------------------------------------------------
2881 Search For An Angel 67:01 1988 Western Visuals 03-Jan-96
- ------------------------------------------------------------------------------
6644 Second Wives Club 77:54 1997 03-Sep-97
- ------------------------------------------------------------------------------
1214 Secret De Jalousie**
Missing 166:56 n
- ------------------------------------------------------------------------------
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- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
4195 Secret Diary 00:00
- ------------------------------------------------------------------------------
4197 Secret Diary 2 89:43 1995
- ------------------------------------------------------------------------------
2360 Secret Hotel Sex 50:23 0 Historic Erotica 27-Jun-95
- ------------------------------------------------------------------------------
1605 Secret Loves 73:42
- ------------------------------------------------------------------------------
4198 Secret Service 84:37 1993 Pepper Prod. 30-Jun-96
- ------------------------------------------------------------------------------
0868 Secret Services 84:40 1993 Pepper Prod. 14-Aug-94
- ------------------------------------------------------------------------------
0191 Secrets Of Jennifer 77:20 N/A 14-Jun-94
- ------------------------------------------------------------------------------
1573 Secrets Of Mozart 80:28 Dino Vision 18-Nov-94
- ------------------------------------------------------------------------------
0906 Seducers 77:05 1992 Zane Ent. 25-Aug-94
- ------------------------------------------------------------------------------
4347 Seduction Formula 68:34 1990 Fantazy Ent 25-Jul-96
- ------------------------------------------------------------------------------
4369 Seduction of Jennifer 83:45 1986 Hollywood Video 26-Jul-96
- ------------------------------------------------------------------------------
0920 Seductress 71:14 N/A 25-Aug-94
- ------------------------------------------------------------------------------
0814 See Thru 69:00 1992 Legend Video 23-Oct-94
- ------------------------------------------------------------------------------
4809 Seka's Lacy Affair 90:30 1987 Hollywood Video 17-Oct-96
- ------------------------------------------------------------------------------
1487 Seka's Screentest 54:54 1988 Cinderella 04-Nov-94
- ------------------------------------------------------------------------------
3173 Semper Bi 83:29 1994 Pepper Prod. 13-Mar-96
- ------------------------------------------------------------------------------
4755 Senior Stimulation**CPPA 74:44 1995 Coast-To-Coast 24-Sep-96
- ------------------------------------------------------------------------------
6490 Sensations #02 60:07 1996 Sin City 07-May-97
- ------------------------------------------------------------------------------
2990 Sensual Escape 66:49 1988 Femme 23-Apr-96
- ------------------------------------------------------------------------------
2479 Sensuous Moments 79:09 1983 Vista Video 15-Sep-95
- ------------------------------------------------------------------------------
4004 Senza Ritegno 76:38 0 Ona Zee Prod. 03-Jul-96
- ------------------------------------------------------------------------------
0903 Separated 75:10 Paul Norman 30-Aug-94
- ------------------------------------------------------------------------------
XXX Seriously Anal 0 Ona Zee Prod.
- ------------------------------------------------------------------------------
1169 Servants Of 67:28 1992 Cinderella 22-Oct-94
- ------------------------------------------------------------------------------
2752 Serve - Ess 66:58 05-Dec-95
- ------------------------------------------------------------------------------
4308 Sex & the Single Girl 71:40 1989 Fantazy Ent 25-Jul-96
- ------------------------------------------------------------------------------
3003 Sex - A - Fari 76:04 1994 Las Vegas 19-Jan-96
- ------------------------------------------------------------------------------
1398 Sex 4 Life 102:11 1995 X-Plor Media 03-Jan-96
- ------------------------------------------------------------------------------
3426 Sex 4 Life 102:12 1995 Xplor Media 19-Aug-97
- ------------------------------------------------------------------------------
3324 Sex Abissi 81:12 0 Cassannova 15-May-96
- ------------------------------------------------------------------------------
4199 Sex About Town 72:28 1989 High Five Produc 30-Jun-96
- ------------------------------------------------------------------------------
1241 Sex Academy 109:42 1993 Ona Zee Prod. 27-Oct-94
- ------------------------------------------------------------------------------
2257 Sex Academy #02-"Talking
Dirty" 79:50 1994 Ona Zee Prod. 01-May-95
- ------------------------------------------------------------------------------
2344 Sex Academy #03 81:50 1995 Ona Zee Prod. 27-Jun-95
- ------------------------------------------------------------------------------
2374 Sex Academy #04 Art Of
Anal 86:12 1995 Ona Zee Prod. 27-Jun-95
- ------------------------------------------------------------------------------
XXX Sex Academy #05 0 Ona Zee Prod.
- ------------------------------------------------------------------------------
4353 Sex Alert 82:34 1995 CDI/S.Canterbur 26-Jul-96
- ------------------------------------------------------------------------------
1290 Sex And Other Games 72:40 1990 Ebony & Ivory 17-Nov-94
- ------------------------------------------------------------------------------
2704 Sex And The Happy
Landlord 86:00 1988 Cinderella 18-Oct-95
- ------------------------------------------------------------------------------
3299 Sex And The Secretary 78:09 1989 Plum Prod. 09-May-96
- ------------------------------------------------------------------------------
2625 Sex And The Single Guy 00:00
- ------------------------------------------------------------------------------
0348 Sex Appraisal 81:00 Hollywood Video 23-Sep-94
- ------------------------------------------------------------------------------
0907 Sex Bandits 77:05 1992 Zane Ent. 25-Aug-94
- ------------------------------------------------------------------------------
2412 Sex Beat 88:14 1985 Western Visuals 18-Jul-95
- ------------------------------------------------------------------------------
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MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
3104 Sex Business 89:21 1994 PVM/Fiesta Direc 28-Feb-96
- ------------------------------------------------------------------------------
4200 Sex Camping 90:39 1993 23-Jul-96
- ------------------------------------------------------------------------------
4325 Sex Crazy 75:00 1989 Fantazy Ent 24-Jul-96
- ------------------------------------------------------------------------------
0114 Sex Dancers 73:33 1986 Now Showing 14-Jun-94
- ------------------------------------------------------------------------------
2101 Sex Drive 67:30 1985 Night Magic 31-Jan-95
- ------------------------------------------------------------------------------
3237 Sex Explosed 60:37 N/A 02-May-96
- ------------------------------------------------------------------------------
2130 Sex Fan Club 108:24 1995 Videodrome 29-Mar-95
- ------------------------------------------------------------------------------
1136 Sex Flex 74:48 Cinderella 07-Sep-94
- ------------------------------------------------------------------------------
6624 Sex For Hire 77:27 1996 Ona Zee Prod. 17-Jul-97
- ------------------------------------------------------------------------------
1809 Sex Fugitive 77:42 1993 01-Feb-95
- ------------------------------------------------------------------------------
2839 Sex Heist 89:18 1993 Western Visuals 02-Nov-95
- ------------------------------------------------------------------------------
2489 Sex House Amateurs #01 52:56 1992 Horus 22-Aug-95
- ------------------------------------------------------------------------------
2666 Sex House Amateurs #02 60:26 1992 05-Oct-95
- ------------------------------------------------------------------------------
2483 Sex House Amateurs #05
- Exhibitions 89:59 1993 Horus 22-Aug-95
- ------------------------------------------------------------------------------
2240 Sex House Amateurs #07 72:18 1991 27-Mar-95
- ------------------------------------------------------------------------------
3048 Sex House Crad 74:11 1992 Horus Productio 31-Jan-96
- ------------------------------------------------------------------------------
2190 Sex House Crad #04 51:26 1992 27-Mar-95
- ------------------------------------------------------------------------------
2667 Sex House Crad #06 67:18 1993 05-Oct-95
- ------------------------------------------------------------------------------
5048 Sex Hunger 74:23 1995 21-Nov-96
- ------------------------------------------------------------------------------
4763 Sex In Asia #02 85:04 1995 Sin City 20-Sep-96
- ------------------------------------------------------------------------------
2599 Sex In Dangerous Places 77:58 1994 Odyssey Group 29-Sep-95
- ------------------------------------------------------------------------------
4234 Sex Lessons 87:00 Rod Suction Pro 15-Jan-97
- ------------------------------------------------------------------------------
1444 Sex Lies 81:26 Fantazy Ent 07-Nov-94
- ------------------------------------------------------------------------------
1867 Sex Machine 83:23 1994 Video Team 20-Jan-95
- ------------------------------------------------------------------------------
2602 Sex On The Run 114:08 1995 Figga-Rooschmu 08-Sep-95
- ------------------------------------------------------------------------------
2693 Sex On The Run #02 -
Montreal To Toro 102:25 1994 Totally Tastless 02-Nov-95
- ------------------------------------------------------------------------------
1218 Sex On The Run 401 102:18 Aphrodite 05-Sep-94
- ------------------------------------------------------------------------------
1523 Sex Orgies 92:44 1988 Vidco 28-Oct-94
- ------------------------------------------------------------------------------
2769 Sex Over 40 72:24 1994
- ------------------------------------------------------------------------------
3189 Sex Patrouille 78:44 Global Vision 04-Apr-96
- ------------------------------------------------------------------------------
1291 Sex Pistol 72:22 Cinderella 17-Nov-94
- ------------------------------------------------------------------------------
6532 Sex Plage Les Bains 78:48 Turbo 06-May-97
- ------------------------------------------------------------------------------
4161 Sex Punk 2000 75:36 1992 Frank Marino Pro 17-Jan-97
- ------------------------------------------------------------------------------
5372C Sex Scape 00:00
- ------------------------------------------------------------------------------
2615 Sex Search #01-The Quest 80:42 1994 Cinderella 08-Sep-95
- ------------------------------------------------------------------------------
4326 Sex Sluts in the Slammer 69:44 1988 Fantazy Ent 24-Jul-96
- ------------------------------------------------------------------------------
1394 Sex Starved New Brides 59:02 1987 Cinderella 28-Oct-94
- ------------------------------------------------------------------------------
6646 Sex Starved Nymphos Of
Berlin 84:32 Tour De Plush
- ------------------------------------------------------------------------------
1814 Sex Sting 74:41 1992 Fat Dog 20-Jan-95
- ------------------------------------------------------------------------------
3386 Sex T.V. - Geraldine 65:18 Turbo Films 08-May-96
- ------------------------------------------------------------------------------
6638 Sex Therapy Ward 72:54 1995 Ona Zee 25-Jul-97
- ------------------------------------------------------------------------------
3360 Sex Trek 5-Deep Space
Sex 84:14 0 Moonlight 30-May-96
- ------------------------------------------------------------------------------
3268 Sex Triathlon 76:48 DBM 07-May-96
- ------------------------------------------------------------------------------
1537 Sex Unlimited 74:52 1989 Mark IV Prod. Inc 28-Oct-94
- ------------------------------------------------------------------------------
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- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
4562 Sex Vision 77:00 1992 Hollywood Video 23-Aug-96
- ------------------------------------------------------------------------------
6158 Sex Wish 00:00
- ------------------------------------------------------------------------------
1362 Sex-A-Vision 74:35 1985 Dreamland Ent. 31-Oct-94
- ------------------------------------------------------------------------------
1811 Sexcalibur 69:49 1992 Fat Dog 20-Jan-95
- ------------------------------------------------------------------------------
1974 Sexed 78:51 1993 Hollywood Video 23-Sep-94
- ------------------------------------------------------------------------------
1007 Sexliners 69:37 1991 Cinderella 12-Sep-94
- ------------------------------------------------------------------------------
1424 Sexplosion #01 113:16 So Hard Prod. 25-Nov-94
- ------------------------------------------------------------------------------
1332 Sexplosion #02 101:22 1991 So Hard Prod. 31-Oct-94
- ------------------------------------------------------------------------------
1419 Sexplosion #03 84:22 0 So Hard Prod. 25-Nov-94
- ------------------------------------------------------------------------------
1334 Sexplosion #04 99:47 1991 So Hard Prod. 31-Oct-94
- ------------------------------------------------------------------------------
0112 Sexsations 84:03 1984 Now Showing 14-Jun-94
- ------------------------------------------------------------------------------
3038 Sextasy 17-Blown Away 110:29 Sextasy 02-Feb-96
- ------------------------------------------------------------------------------
1464 Sextectives 81:41 1989 Ortega Huevo/Ci 04-Nov-94
- ------------------------------------------------------------------------------
0264 Sexual Healer 77:55
- ------------------------------------------------------------------------------
5019 Sexual Healing 81:28 1995 Sin City 19-Nov-96
- ------------------------------------------------------------------------------
1247 Sexual Instinct 81:29 Dreamland Ent. 27-Oct-94
- ------------------------------------------------------------------------------
4609 Sexual Instinct #02 71:06 1994 CDI/Dreamland 30-Aug-96
- ------------------------------------------------------------------------------
4176 Sexual Intent 74:16 Plum Prod. 14-Jan-97
- ------------------------------------------------------------------------------
4175 Sexual Obsession 75:44 1989 Plum Prod. 14-Jan-97
- ------------------------------------------------------------------------------
1821 Sexual Olympics 69:23 1992 Video Team 20-Jan-95
- ------------------------------------------------------------------------------
1830 Sexual Olympics #02 72:38 1992 Video Team 20-Jan-95
- ------------------------------------------------------------------------------
3078 Sexual Relations 72:26 1990 Plum Prod. 19-Jan-96
- ------------------------------------------------------------------------------
1654 Sexually Altered States 90:12 1986 Night Magic Vide 20-Dec-94
- ------------------------------------------------------------------------------
2079 Sexy Delight #02 84:30 1987 Classic Editions 23-Feb-95
- ------------------------------------------------------------------------------
1952 Sexy Delights 78:26 1986 Classic Editions 23-Feb-95
- ------------------------------------------------------------------------------
2581 Sexy Nurses #02 73:04 1994 Patti Prnductions 29-Sep-95
- ------------------------------------------------------------------------------
3556 Sexy Secretaries 110:55 0 Odyssey Group 25-Jul-96
- ------------------------------------------------------------------------------
2891 Seymore Butt's Love Shack 119:24 1994 Sunshine Films 19-Jan-96
- ------------------------------------------------------------------------------
2894 Seymore Butts And His
Mystery Girl 133:19 1995 FHV/Sunshine 19-Jan-96
- ------------------------------------------------------------------------------
2781 Seymore Butts Goes Nuts 139:00 1993 FHV/Sunshine 29-Nov-95
- ------------------------------------------------------------------------------
2779 Seymore Butts Is Blown Away 117:26 1995 FHV/Sunshine 29-Nov-95
- ------------------------------------------------------------------------------
2787 Seymore Butts Meets The
Cumback B 112:57 1994 FHV/Sunshine 29-Nov-95
- ------------------------------------------------------------------------------
2780 Seymore Butts Swings 118:43 1992 FHV/Sunshine 29-Nov-95
- ------------------------------------------------------------------------------
4371 Shades Of Ecstacy 77:22 Hollywood Video 26-Jul-96
- ------------------------------------------------------------------------------
4174 Shades Of Erotica 73:21 Glitz Video 17-Jan-97
- ------------------------------------------------------------------------------
4482 Shades Of Lust 76:31 1994 01-Aug-96
- ------------------------------------------------------------------------------
0044 Shadows In The Dark 89:58 1989 4 Play Prod. 14-Jun-94
- ------------------------------------------------------------------------------
3112 Shame On Shanna 75:56 1990 Dreamland Ent. 16-Feb-96
- ------------------------------------------------------------------------------
0134 Shameless 88:22 Now Showing 14-Jun-94
- ------------------------------------------------------------------------------
6227 Shane's World #1 112:26 Odyssey Group 01-Mar-97
- ------------------------------------------------------------------------------
6228 Shane's World #2 108:16 1996 Odyssey Group 01-Mar-97
- ------------------------------------------------------------------------------
6230 Shane's World #3 114:42 1996 Odyssey Group 01-Mar-97
- ------------------------------------------------------------------------------
3476 Sharon Mitchel's Sex
Clinic #01 88:51 Filmco 24-May-96
- ------------------------------------------------------------------------------
1412 Sharon Mitchell's Sex
Clinic #02 78:09 1993 Filmco 25-Nov-94
- ------------------------------------------------------------------------------
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MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
1538 Sharon Mitchell's Sex
Orgies 78:10 1991 Untamed Vid. 28-Oct-94
- ------------------------------------------------------------------------------
0815 Shattered 71:52 1991 Legend Video 23-Oct-94
- ------------------------------------------------------------------------------
1395 Shaved And Dangerous 58:14 1987 Cinderella 28-Oct-94
- ------------------------------------------------------------------------------
2762 Shaved She Males 74:07 1994 Pleasure Produc 04-Jan-96
- ------------------------------------------------------------------------------
3296 Shaved Sinners #01 84:55 1988 N/A 09-May-96
- ------------------------------------------------------------------------------
2015 Shaved Sinners #04 71:29 1994 Video Team 23-Feb-95
- ------------------------------------------------------------------------------
1715 Shaved Tails 82:44 1993 Western Visuals 20-Dec-94
- ------------------------------------------------------------------------------
2024 Shaveds Sinners #03 76:00 1990 Video Team 23-Feb-95
- ------------------------------------------------------------------------------
2461 Shayla's Gang 78:48 1994 Wicked Pictures 22-Aug-95
- ------------------------------------------------------------------------------
2552 She Loves To Tease 82:29 1992 Western Visuals 29-Sep-95
- ------------------------------------------------------------------------------
5087 She Male Instinct 65:37 1995 Plush Ent./Blue C 08-Jan-97
- ------------------------------------------------------------------------------
4571 She Male Surprise 81:25 CDI/Pepper 23-Aug-96
- ------------------------------------------------------------------------------
1358 She's A Boy Toy 73:34 Dreamland Ent. 31-Oct-94
- ------------------------------------------------------------------------------
1305 She's Got The Juice 67:00 Cinderella 17-Nov-94
- ------------------------------------------------------------------------------
1002 She's Ready 70:30 1990 Cinderella 12-Sep-94
- ------------------------------------------------------------------------------
3209 Sheepless In Montana 79:30 1993 Forbidden Video 13-Mar-96
- ------------------------------------------------------------------------------
1832 Sheer Ecstacy 83:53 1993 Jalapeno Prod. 20-Jan-95
- ------------------------------------------------------------------------------
1340 Sheer Haven 75:28 1979 Dreamland Ent. 31-Oct-94
- ------------------------------------------------------------------------------
2583 Sherlock Homie And His
Sidekick Wha 81:41 Metro Home Vide 29-Sep-95
- ------------------------------------------------------------------------------
2137 Shifting Gere 86:49 1990 Video Team 29-Mar-95
- ------------------------------------------------------------------------------
3627 Shipwrecked 70:20 1992 02-Jul-96
- ------------------------------------------------------------------------------
4182 Shiver 71:08 1993 Forbidden Films 14-Jan-97
- ------------------------------------------------------------------------------
1452 Shiver 67:17
- ------------------------------------------------------------------------------
1840 Shoot To Thrill 85:03 1992 Bad Girls 03-Jan-95
- ------------------------------------------------------------------------------
1931 Shooting Star 75:04 Xcitment Video
- ------------------------------------------------------------------------------
4181 Shopping Anal **CPPA 81:22
- ------------------------------------------------------------------------------
1612 Shot From Behind 69:56 1994 Fanta-Z 19-Dec-94
- ------------------------------------------------------------------------------
4180 Shot From Behind 70:00 1991 Fanta-Z Home Vi 08-Apr-97
- ------------------------------------------------------------------------------
3669 Shot in the Pants 70:41 1995 Hollywood Video 16-Jul-96
- ------------------------------------------------------------------------------
2683 Show Business 71:17 1994 Las Vegas Video 18-Oct-95
- ------------------------------------------------------------------------------
2585 Showgirls 73:39 1986 Night Magic Vide 07-Sep-95
- ------------------------------------------------------------------------------
4169 Showtime Cunts 74:37 1994 Metro Home Vide 14-Jan-97
- ------------------------------------------------------------------------------
6669 Signature Series: Christie
Lake 63:09 1997 B.B.E 28-Aug-97
- ------------------------------------------------------------------------------
4493 Signore Indecenti 90:27 1995 Ona Zee Prod. 01-Aug-96
- ------------------------------------------------------------------------------
1864 Silences Of The Buns 75:52 1992 Bad Girl 03-Jan-95
- ------------------------------------------------------------------------------
0317 Silk And Lace 89:05 Amour Video 14-Jun-94
- ------------------------------------------------------------------------------
2223 Silk Elegance 72:55 1992 Visual Images 01-May-95
- ------------------------------------------------------------------------------
1925 Silver Elegance 72:38 1992 Video Team 02-Mar-95
- ------------------------------------------------------------------------------
2012 Silver Seduction 74:42 1991 Video Team 23-Feb-95
- ------------------------------------------------------------------------------
1933 Silver Sensation 73:27 1992 Coast To Coast 02-Mar-95
- ------------------------------------------------------------------------------
3462 Simply Kia 77:27 1995 Legend Video 23-May-96
- ------------------------------------------------------------------------------
2913 Sin City - The Movie 79:41 1992 Sin City 03-Jan-96
- ------------------------------------------------------------------------------
4446 Sin Town Cycle Sluts 65:49 1995 Sin City 25-Jul-96
- ------------------------------------------------------------------------------
6515 Sin Town Cycle Sluts #02 70:52 1995 Sin City 28-Apr-97
- ------------------------------------------------------------------------------
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MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
4373 Sinfully Yours**CPPA 84:28 1988 Hollywood Video 26-Jul-96
- ------------------------------------------------------------------------------
1777 Single White Woman 84:00 1994 Fat Dog 20-Jan-95
- ------------------------------------------------------------------------------
3131 Singles Holiday 81:09 1990 07-May-96
- ------------------------------------------------------------------------------
4333 Sinnocence 78:35 1994 CDI 12-Jul-96
- ------------------------------------------------------------------------------
4343 Sins of Angel Kelly 83:48 1987 Fantazy Ent 24-Jul-96
- ------------------------------------------------------------------------------
1846 Sins of The Wealthy 88:02 1986 Classic Editions 20-Jan-95
- ------------------------------------------------------------------------------
2545 Sinset Boulevard 89:18 1987 Western Visuals 29-Sep-95
- ------------------------------------------------------------------------------
2863 Sirens 86:00 1994 03-Jan-96
- ------------------------------------------------------------------------------
4183 Sister Snatch #01 80:03 1994 26-Jul-96
- ------------------------------------------------------------------------------
2300 Sister Snatch #02 97:36 1995 Snatch Productio 02-Aug-95
- ------------------------------------------------------------------------------
2004 Sisters 84:01 1993 Zane Ent. 16-Feb-95
- ------------------------------------------------------------------------------
4608 Sitting Pretty #01 71:19 1990 CDI/Dreamland 30-Aug-96
- ------------------------------------------------------------------------------
1239 Sitting Pretty #02 82:08 Dreamland Ent. 27-Oct-94
- ------------------------------------------------------------------------------
4335 Six Degrees of Penetration 85:30 1995 CDI/Plum 26-Jul-96
- ------------------------------------------------------------------------------
4158 Sizzle 0
- ------------------------------------------------------------------------------
1839 Sizzling Hot 89:30 1986 Video Team 20-Jan-95
- ------------------------------------------------------------------------------
1353 Sizzling Sexpots #06 99:51 Cinderella 17-Nov-94
- ------------------------------------------------------------------------------
2120 Sizzling Sexpots #07 99:48 1985 Cinderella 23-Feb-95
- ------------------------------------------------------------------------------
2057 Sizzling Sexpots #09 99:50 1991 Cinderella 23-Feb-95
- ------------------------------------------------------------------------------
3088 Skid Row 73:15 1994
- ------------------------------------------------------------------------------
2496 Skin Hunger 108:07 1995 Cal Vista 28-Sep-95
- ------------------------------------------------------------------------------
0806 Slave To Love 74:00 Rosebud Prod. 01-Jun-94
- ------------------------------------------------------------------------------
4556 Sleazy Streets 79:53 1995 23-Aug-96
- ------------------------------------------------------------------------------
5314C Sleeping Around 70:33 Caballero 10-Feb-97
- ------------------------------------------------------------------------------
4823 Sleeping Booty 138:39 1995 Elegant Angel 08-Oct-96
- ------------------------------------------------------------------------------
4761 Sleeping Single 79:47 1994 Coast To Coast 24-Sep-96
- ------------------------------------------------------------------------------
2037 Sleepwalker 70:08 1990 Xcitement 21-Feb-95
- ------------------------------------------------------------------------------
1242 Slip Of The Tongue 87:54 Dreamland Ent. 27-Oct-94
- ------------------------------------------------------------------------------
2402 Slippery Meeting 78:17 Lady Anita F. Pro 29-Jun-95
- ------------------------------------------------------------------------------
3083 Slippery When Wet 88:29 1989 Pleasure Produc 31-Jan-96
- ------------------------------------------------------------------------------
1956 Slipping It In 80:29 1992 Fat Dog 23-Feb-95
- ------------------------------------------------------------------------------
3626 Sloppy Seconds 76:22 1993 02-Jul-96
- ------------------------------------------------------------------------------
4156 Slumber Party 72:18 1989 23-Jul-96
- ------------------------------------------------------------------------------
1879 Slurping 69:16 1994 Fat Dog 30-Jan-95
- ------------------------------------------------------------------------------
3591 Slut 76:25 1995 Fantazy Ent. 25-Jul-96
- ------------------------------------------------------------------------------
2378 Slut - Babe Safari 75:15 1994 Filmco 21-Jul-95
- ------------------------------------------------------------------------------
4157 Slut Hunt 73:16 Bella Pictures 15-Aug-96
- ------------------------------------------------------------------------------
4449 Slut Hunt #02 76:05 Bella Pictures 25-Jul-96
- ------------------------------------------------------------------------------
0100 Slut Of The Year 23:40 1995 n 14-Jun-94
- ------------------------------------------------------------------------------
5084 Sluthunt #03 - The Clam Bake 84:05 1996 Al Borda Product 08-Jan-97
- ------------------------------------------------------------------------------
4173 Sluts in Suburbia 63:54 1994 24-Jul-96
- ------------------------------------------------------------------------------
2147 Smears 79:42 1993 01-May-95
- ------------------------------------------------------------------------------
1639 Smooth As Silk 62:51 1994 Emerald City 14-Dec-94
- ------------------------------------------------------------------------------
2690 SMTV-#02 70:39 1994 Filmco 05-Jan-96
- ------------------------------------------------------------------------------
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MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
4370 Snack Time 85:30 1995 Hollywood Video 26-Jul-96
- ------------------------------------------------------------------------------
3166 Snatch Patch 74:56 1995 Legend/Jaro 25-Mar-96
- ------------------------------------------------------------------------------
5200 Snatch Shot 00:00 LBO Ent. Group
- ------------------------------------------------------------------------------
1586 Snatchbuckler 67:36 1985 Four Rivers Inc. 03-Jan-95
- ------------------------------------------------------------------------------
4323 Snow Black & the Seven
Wienies 72:51 1989 Fantazy Ent 24-Jul-96
- ------------------------------------------------------------------------------
4162 Snow Bunnies 81:32 1995 Sin City 14-Jan-97
- ------------------------------------------------------------------------------
4444 Snow Bunnies #02 74:25 1995 Sin City 25-Jul-96
- ------------------------------------------------------------------------------
4654 So Bad 87:27 1995 CDI/Video Team 30-Aug-96
- ------------------------------------------------------------------------------
1849 So I Married A Lesbian 85:33 1993 Western Visuals 03-Jan-95
- ------------------------------------------------------------------------------
1153 Soak My Tits With Cum 116:09 1991 Zane Ent. 07-Sep-94
- ------------------------------------------------------------------------------
5299C Society Affairs 00:00
- ------------------------------------------------------------------------------
0807 Soda Jerk*CPPA* 72:00 1992
- ------------------------------------------------------------------------------
1274 Sodo Au Bord De L'eau 53:23 0 Fantaz 05-Nov-94
- ------------------------------------------------------------------------------
2612 Sodo Boulevard 85:03 1992 Fanta-Z 08-Sep-95
- ------------------------------------------------------------------------------
2480 Sodo Glisse - Histoires
D'un Tournage 75:46 1990 Horus Productio 22-Aug-95
- ------------------------------------------------------------------------------
5233 Sodom Bottoms 00:00 Sticky Video Pro
- ------------------------------------------------------------------------------
4583 Sodomania #11- In Your
Face 100:25 1995 23-Aug-96
- ------------------------------------------------------------------------------
XXX Sodomania #12 0
- ------------------------------------------------------------------------------
3240 Sodomania #13 110:06 1995 Elegant Angel 06-May-96
- ------------------------------------------------------------------------------
XXX Sodomania 12 - Raw Filth 0
- ------------------------------------------------------------------------------
4585 Sodomania Compendium 137:27 1995 Elegant Angel 23-Aug-96
- ------------------------------------------------------------------------------
5243 Sodomie a Amsterdam 87:40 0 Turbo Film 08-Jan-97
- ------------------------------------------------------------------------------
2569 Sodomies Violentes 47:46 1992 Horus 08-Sep-95
- ------------------------------------------------------------------------------
6486 Sodomizer#02 84:03 1996 Sin City 07-May-97
- ------------------------------------------------------------------------------
6031 Sogno Veneziano 79:28 Casanova Prod. 28-Jan-97
- ------------------------------------------------------------------------------
5091 Solo Adventures 168:01 1996 Al Borda Video 08-Jan-97
- ------------------------------------------------------------------------------
0816 Some Like It Big 70:04 1991 Legend Video 23-Oct-94
- ------------------------------------------------------------------------------
1435 Some Like It Hot 72:18 Cinderella 28-Oct-94
- ------------------------------------------------------------------------------
2983 Somebody's Dinner Party 64:15
- ------------------------------------------------------------------------------
4756 Something Blue 84:21 1995 Coast To Coast 24-Sep-96
- ------------------------------------------------------------------------------
1199 Sophisticated Lady 68:52 Adult Video Asso 05-Nov-94
- ------------------------------------------------------------------------------
3581 Sorority Girls 111:38
- ------------------------------------------------------------------------------
3553 Sorority Girls #02 116:18 06-Sep-96
- ------------------------------------------------------------------------------
4163 Sorority Stewardesses 82:08 1995 Plush Ent. 14-Jan-97
- ------------------------------------------------------------------------------
4764 South Bronx Story 84:37 1986 Coast-To-Coast 24-Sep-96
- ------------------------------------------------------------------------------
6139 Southern Belles #01 86:54 1994 XPLOR 10-Feb-97
- ------------------------------------------------------------------------------
6140 Southern Belles #02 86:55 1995 XPLOR 10-Feb-97
- ------------------------------------------------------------------------------
6141 Southern Belles #03 83:20 1995 XPLOR 10-Feb-97
- ------------------------------------------------------------------------------
6142 Southern Belles #04 84:48 1995 XPLOR 10-Feb-97
- ------------------------------------------------------------------------------
6143 Southern Belles #05 83:02 1996 XPLOR 10-Feb-97
- ------------------------------------------------------------------------------
6144 Southern Belles #06 88:08 1996 XPLOR 10-Feb-97
- ------------------------------------------------------------------------------
6145 Southern Belles #07 81:52 1996 XPLOR 10-Feb-97
- ------------------------------------------------------------------------------
0862 Southern Comfort 70:22 1991 Cinderella 01-Aug-94
- ------------------------------------------------------------------------------
0817 Southern Exposure 72:32 1992 Legend Video 23-Oct-94
- ------------------------------------------------------------------------------
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MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
4923 Southern Passion 84:00 Destiny Entertain 13-Nov-96
- ------------------------------------------------------------------------------
2806 Southern Sideup 70:40 1992 Las Vegas 29-Nov-95
- ------------------------------------------------------------------------------
0818 Spanish Fly 69:00 Legend Video 23-Oct-94
- ------------------------------------------------------------------------------
2859 Sparxx Plug 72:18 1993 Heatwave 03-Jan-96
- ------------------------------------------------------------------------------
6619 Spazm #03: Hair Trigger 79:52 1997 Ona Zee/L.B.O.E 17-Jul-97
- ------------------------------------------------------------------------------
3632 Special Anal #02 81:19 1995 02-Jul-96
- ------------------------------------------------------------------------------
5046 Special Attention 78:06 1996 Masked Pictures 21-Nov-96
- ------------------------------------------------------------------------------
4171 Special Black & White #02 73:29
- ------------------------------------------------------------------------------
5224 Special Pussy Hole Work Out 74:28 0 Sticky Video 08-Jan-97
- ------------------------------------------------------------------------------
1451 Speedtrap 81:02 Power Productio 03-Jan-95
- ------------------------------------------------------------------------------
1671 Spellbound 70:55 1992 Rocottiio Pepper 19-Dec-94
- ------------------------------------------------------------------------------
4166 Spellbound 75:40 1989 Las Vegas Video 17-Jan-97
- ------------------------------------------------------------------------------
0983 Spend The Holidays With
Barbi 73:28 Cinderella 06-Oct-94
- ------------------------------------------------------------------------------
2109 Sperm Slaves #31 102:52 1991 Down & Dirty Vid 16-Feb-95
- ------------------------------------------------------------------------------
3228 Spinners 98:49 Western Visuals 23-Apr-96
- ------------------------------------------------------------------------------
0891 Splash Shots 84:28
- ------------------------------------------------------------------------------
1120 Split Personality 70:47 1991 Cinderella 07-Sep-94
- ------------------------------------------------------------------------------
0334 Sporting Illustrated 76:36 1990 Hollywood Video 23-Sep-94
- ------------------------------------------------------------------------------
1233 Spread Sheets 80:26 1992 Dreamland Ent. 27-Oct-94
- ------------------------------------------------------------------------------
4613 Spread The Wealth 83:14 1994 CDI/Dreamland 30-Aug-96
- ------------------------------------------------------------------------------
2874 Squeeze Play 81:34 1991 Naughty Neighbo 03-Jan-96
- ------------------------------------------------------------------------------
1234 Stacked With Honors 76:27 Dreamland Ent. 27-Oct-94
- ------------------------------------------------------------------------------
2972 Stairway to Heaven 76:13 1989 Moonlight Entert 31-Jan-96
- ------------------------------------------------------------------------------
1203 Stakeout 70:55 1991 Cinderella 05-Nov-94
- ------------------------------------------------------------------------------
4620 Star Attraction 87:06 1996 CDI/Video Team 30-Aug-96
- ------------------------------------------------------------------------------
6628 Star Fuckers #01 118:03 1995 CED/Zane Ent. 17-Jul-97
- ------------------------------------------------------------------------------
1711 Star Search #02 75:17 1993 Ona Productions 29-Dec-94
- ------------------------------------------------------------------------------
1669 Star Search #03 75:15 1993 Ona Productions 29-Dec-94
- ------------------------------------------------------------------------------
4324 Star Spangled Banger 73:55 1994 Fantazy Ent 24-Jul-96
- ------------------------------------------------------------------------------
0916 Starbangers #01 69:13 1993 Big Time Picture 25-Aug-94
- ------------------------------------------------------------------------------
1061 Starbangers #02 66:59 1993 Big Time Picture 20-Oct-94
- ------------------------------------------------------------------------------
1060 Starbangers #03 68:26 1993 Fantastic Picture 20-Oct-94
- ------------------------------------------------------------------------------
1072 Starbangers #04 71:16 1993 Fantastic Picture 20-Oct-94
- ------------------------------------------------------------------------------
3479 Starbangers #06 73:56 1994 Fantastic 28-May-96
- ------------------------------------------------------------------------------
6014C Starr 00:00
- ------------------------------------------------------------------------------
2931 Starship Intercourse 73:10 1987 Dreamland Ent. 16-Feb-96
- ------------------------------------------------------------------------------
2722 Steady As She Blows 74:06 1993 Las Vegas Vid. 18-Oct-95
- ------------------------------------------------------------------------------
2578 Steal This Head #02 77:48 1993 Cal Vista 29-Sep-95
- ------------------------------------------------------------------------------
0346 Steaming Hot 76:00 Hollywood Classi 23-Sep-94
- ------------------------------------------------------------------------------
1449 Steelbreeze 89:20 1990 So Hard Prod. 03-Jan-95
- ------------------------------------------------------------------------------
0910 Step To The Rear 75:00 1992 Xxceptional Vide 25-Aug-94
- ------------------------------------------------------------------------------
1166 Sterling Silver 74:55 1991 Coast To Coast 22-Oct-94
- ------------------------------------------------------------------------------
4966 Steve Drakes Erotic
Newcummers #04 73:30 1996 Dreamland Ent. 13-Nov-96
- ------------------------------------------------------------------------------
2031 Stick It In The Rear 82:25 1991 21-Feb-95
- ------------------------------------------------------------------------------
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- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
6233 Sticky Fingers 81:01 1996 Western Visuals 19-Jun-97
- ------------------------------------------------------------------------------
6607 Sticky Fingers #09 115:28 1994 CED/Zane 08-Jun-97
- ------------------------------------------------------------------------------
0146 Sticky Lips 70:52 1993 Executive Video 14-Jun-94
- ------------------------------------------------------------------------------
2356 Stolen Lust 80:52 1985 Mira Video Produ 04-Jul-95
- ------------------------------------------------------------------------------
4165 Storie Di Signore Perbene 67:50 1996 Ona Zee Prod. 24-Jul-96
- ------------------------------------------------------------------------------
5094 Stories Of Men 79:44 1995 Digital Media 03-Dec-96
- ------------------------------------------------------------------------------
4527 Storm Warning 73:20 01-Aug-96
- ------------------------------------------------------------------------------
2305 Straight Sex WiTh Beautiful
Girls 61:02 1984 Global 24-Apr-96
- ------------------------------------------------------------------------------
2986 Straight To The Top 66:43 1989 Western Visuals 31-Jan-96
- ------------------------------------------------------------------------------
4679 Straight Up 83:08 1991 CDI/Video Team 04-Sep-96
- ------------------------------------------------------------------------------
2546 Strange Love 60:24 1990 Western Visuals 29-Sep-95
- ------------------------------------------------------------------------------
2018 Stranger At The Backdoor 78:28 1994 Coast To Coast 02-Mar-95
- ------------------------------------------------------------------------------
0359 Strangers 81:40 Hollywood Classi 23-Sep-94
- ------------------------------------------------------------------------------
3252 Strap On Sally #02 70:45 1994 23-May-96
- ------------------------------------------------------------------------------
2470 Strap On Sally #03 104:53 1994 08-Sep-95
- ------------------------------------------------------------------------------
1052 StreetAngels 89:17 1992 Las Vegas Video 31-Oct-94
- ------------------------------------------------------------------------------
0859 Street Treat 68:12 Cinderella 01-Aug-94
- ------------------------------------------------------------------------------
2009 Street Walker 86:48 1991 21-Feb-95
- ------------------------------------------------------------------------------
3399 Street Walkers 87:28 0 Hollywood Video 28-Aug-97
- ------------------------------------------------------------------------------
3608 Stretch In The Rear 72:11 1995 02-Jul-96
- ------------------------------------------------------------------------------
2126 Strip Poker 86:02 1984 Europix 23-Feb-95
- ------------------------------------------------------------------------------
4186 Stripper Nurses 115:37 1994 31-Dec-95
- ------------------------------------------------------------------------------
0001 Strippers Inc. #01 84:24 1994 Ona Zee Prod. 25-Apr-96
- ------------------------------------------------------------------------------
3281 Strippers Inc. #05 80:46 1996 Ona Zee Prod. 25-Apr-96
- ------------------------------------------------------------------------------
3521 Stripping 81:54 1996 Nitro/DBF 25-Sep-96
- ------------------------------------------------------------------------------
2001 Strong Language 72:22 1990 Intropics 23-Feb-95
- ------------------------------------------------------------------------------
6493 Stuck in the End 90:17 1994 Fat Dog 07-May-97
- ------------------------------------------------------------------------------
4962 Stud Finders 81:20 1995 Ona Zee Prod. 11-Nov-96
- ------------------------------------------------------------------------------
0039 Stud Wars 81:04 1985 Now Showing 14-Jun-94
- ------------------------------------------------------------------------------
0500 Studio De Plasir 80:00 1988 Cinevoq Prod. 11-Oct-94
- ------------------------------------------------------------------------------
6723 Sturpo 82:37
- ------------------------------------------------------------------------------
1937 Style 73:40 1992 Video Team 23-Feb-95
- ------------------------------------------------------------------------------
4655 Style #02 79:04 1994 CDI/Video Team 30-Aug-96
- ------------------------------------------------------------------------------
3116 Submission 84:05 1994 Wicked Pictures 16-Feb-96
- ------------------------------------------------------------------------------
0383 Submissive Women 73:35 1988 Caballero Contro 23-Sep-94
- ------------------------------------------------------------------------------
1030 Suburban Buttnicks 77:29 1992 Coast To Coast 12-Sep-94
- ------------------------------------------------------------------------------
2395 Suburban Buttnicks 81:26 1992 Coast To Coast 27-Jun-95
- ------------------------------------------------------------------------------
4696 Suburban Buttnicks Forever 86:00 Coast To Coast 30-Aug-96
- ------------------------------------------------------------------------------
0308 Suburban Seduction 74:58 1991 Hollywood Video 14-Jun-94
- ------------------------------------------------------------------------------
2912 Subways 70:18 1994 Sin City 03-Jan-96
- ------------------------------------------------------------------------------
1333 Suckfest 2010 106:00 Down & Dirty Vid 31-Oct-94
- ------------------------------------------------------------------------------
2022 Sudden Urge 69:05 1990 Intropics 23-Feb-95
- ------------------------------------------------------------------------------
4652 Sulka's Nightclub 77:44 CDI/Video Team 30-Aug-96
- ------------------------------------------------------------------------------
1604 Summer Heat 66:35 Cinderella 19-Dec-94
- ------------------------------------------------------------------------------
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- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
4184 Sun Bunnies 75:13 1991 Sin City 14-Jan-97
- ------------------------------------------------------------------------------
5220 Sunny After Dark 81:45 1990 Western Visuals 08-Jan-97
- ------------------------------------------------------------------------------
2143 Sunrise Mystery 81:38 1992 Fat Dog 02-Jun-95
- ------------------------------------------------------------------------------
0768 Sunset Boulevard 73:26 Zane Ent. 01-Jun-94
- ------------------------------------------------------------------------------
6600 Super Ball Sunday 82:24 1995 Ona Zee/Powder 08-Jun-97
- ------------------------------------------------------------------------------
2136 Super Boobs 76:31 1994
- ------------------------------------------------------------------------------
0703 Super Diamond #01 101:15 1993 Cinderella 01-Jun-94
- ------------------------------------------------------------------------------
0705 Super Diamond #3 97:07 1993 Cinderella 01-Jun-94
- ------------------------------------------------------------------------------
0977 Super Diamond Double #04 98:27 1993 Cinderella 12-Sep-94
- ------------------------------------------------------------------------------
1082 Super Diamond Double
XX #05 100:04 1993 Cinderella 22-Oct-94
- ------------------------------------------------------------------------------
1080 Super Diamond Double
XX #07 99:55 1993 Pepper Prod. 22-Oct-94
- ------------------------------------------------------------------------------
0704 Super Diamond Double
XX vol. #02 99:00 1993 Cinderella 01-Jun-94
- ------------------------------------------------------------------------------
0700 Super Dirty Dozen 100:24 1993 Cinderella 01-Jun-94
- ------------------------------------------------------------------------------
0701 Super Dirty Dozen #02 100:46 1993 Cinderella 01-Jun-94
- ------------------------------------------------------------------------------
0702 Super Dirty Dozen #03 101:05 1993 Cinderella 01-Jun-94
- ------------------------------------------------------------------------------
2393 Super Dirty Dozen #05 92:48 1993 Cinderella 20-Jun-95
- ------------------------------------------------------------------------------
2392 Super Dirty Dozen #06 95:56 1990 Cinderella 20-Jun-95
- ------------------------------------------------------------------------------
0706 Super Dripping Wet 101:03 Cinderella 01-Jun-94
- ------------------------------------------------------------------------------
0707 Super Dripping Wet #02 96:13 1993 Cinderella 01-Jun-94
- ------------------------------------------------------------------------------
0708 Super Dripping Wet #03 88:23 1993 Cinderella 01-Jun-94
- ------------------------------------------------------------------------------
1081 Super Dripping Wet #05 98:26 1992 Cinderella 22-Oct-94
- ------------------------------------------------------------------------------
1186 Super Groupie 75:31 1993 08-Aug-94
- ------------------------------------------------------------------------------
1132 Super Sluts #01 98:60 Cinderella 07-Sep-94
- ------------------------------------------------------------------------------
1131 Super Sluts #03 92:05 Cinderella 07-Sep-94
- ------------------------------------------------------------------------------
1351 Super Sluts #05 92:10 Cinderella 17-Nov-94
- ------------------------------------------------------------------------------
1348 Super Sluts #06 98:20 Cinderella 17-Nov-94
- ------------------------------------------------------------------------------
1349 Super Sluts #07 100:43 1992 Cinderella 17-Nov-94
- ------------------------------------------------------------------------------
1350 Super Sluts #08 97:18 Cinderella 17-Nov-94
- ------------------------------------------------------------------------------
6299 Superb 90:05 1994 Fat Dog 07-May-97
- ------------------------------------------------------------------------------
1652 Supergirls Do The Navy 80:12 1984 Night Magic 20-Dec-94
- ------------------------------------------------------------------------------
1882 Sure Thing 85:01 1994 Fat Dog 30-Jan-95
- ------------------------------------------------------------------------------
1235 Surfer Girl 74:58 1992 Plum Prod. 27-Oct-94
- ------------------------------------------------------------------------------
1795 Surprize Arienne**Rape
& Violence Sc 85:45
- ------------------------------------------------------------------------------
2646 Surrender In Paradise 81:54 1984 Collectors 18-Oct-95
- ------------------------------------------------------------------------------
4015 Surrogate Lover 84:01 1993 16-Jul-96
- ------------------------------------------------------------------------------
2778 Svensk Erotik #01 107:09 1992 Pleasure Produc 11-Dec-95
- ------------------------------------------------------------------------------
3187 Swap Meat 0 25-Mar-96
- ------------------------------------------------------------------------------
4187 Sweat 80:03 1986 Plum Prod. 31-Dec-95
- ------------------------------------------------------------------------------
4188 Sweat #02 82:18 Plum Prod. 31-Dec-95
- ------------------------------------------------------------------------------
2775 Swedish "Svenska" Carat 141:36
- ------------------------------------------------------------------------------
6016C Swedish Erotica #56 00:00 N/A
- ------------------------------------------------------------------------------
0005 Swedish Erotica. 73 51:00
- ------------------------------------------------------------------------------
0006 Sweet Addiction 83:00 1988 Cinderela 14-Jun-94
- ------------------------------------------------------------------------------
4733 Sweet As Honey**CPPA 78:52 1996 Nitro 05-Sep-96
- ------------------------------------------------------------------------------
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- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
3167 Sweet as Money 78:56 Erotic Angel/ Mid 25-Mar-96
- ------------------------------------------------------------------------------
1976 Sweet Cheeks #103 81:36 1993 Western Visuals 11-Jan-95
- ------------------------------------------------------------------------------
1216 Sweet Cheeks #105 82:57 Western Visuals 27-Oct-94
- ------------------------------------------------------------------------------
0747 Sweet Lips And Buns 74:30 1993 n 01-Jun-94
- ------------------------------------------------------------------------------
0819 Sweet Miss Fortune 72:00 Legend Video 23-Oct-94
- ------------------------------------------------------------------------------
1270 Sweet Poison 64:46 Cinderella 05-Nov-94
- ------------------------------------------------------------------------------
0164 Sweet Revenge 76:00 Zane Ent. 14-Jun-94
- ------------------------------------------------------------------------------
6270 Sweet Smell Of Excess 82:30 1996 Cinderella 04-Apr-97
- ------------------------------------------------------------------------------
2977 Sweet Spurt Of Youth 75:14 1988 Western Visuals 31-Jan-96
- ------------------------------------------------------------------------------
1121 Sweet Target 66:36 Cinderella 07-Sep-94
- ------------------------------------------------------------------------------
1880 Sweet Treat 70:19 1990 Fat Dog 30-Jan-95
- ------------------------------------------------------------------------------
6498 Swimming Pool Orgy D-3318 81:23 1995 Digital Media Grp 06-May-97
- ------------------------------------------------------------------------------
1397 Swing And Swap #01 71:54 Cinderella 28-Oct-94
- ------------------------------------------------------------------------------
1391 Swing And Swap #03 69:00 Cinderella 28-Oct-94
- ------------------------------------------------------------------------------
3363 Swing Into Spring 82:55 1995 Kinky World 30-May-96
- ------------------------------------------------------------------------------
2851 Swing Shift 72:24 1989 Pleqasure Produ 08-Dec-95
- ------------------------------------------------------------------------------
2304 Swinging Sexties 49:31 Global 24-Apr-96
- ------------------------------------------------------------------------------
6196 T.G.J.C.H.I-Missy 00:00
- ------------------------------------------------------------------------------
6200 T.G.J.C.H.I. #06 -
Kim Kitaine 72:10 1996 Al Borda Video 24-Feb-97
- ------------------------------------------------------------------------------
5093 T.G.J.C.H.I. - Paisley
Hunter 110:17 1996 Al Borda Video 08-Jan-97
- ------------------------------------------------------------------------------
4630 T.G.J.C.H.l. - Savannah 90:05 1995 Bella Pictures 30-Aug-96
- ------------------------------------------------------------------------------
3847 T.G.J.C.H.l.-Tammi Ann 89:09 1995 Bella Pictures 16-Jul-96
- ------------------------------------------------------------------------------
2549 Taija Rae 72:20 1987 Western Visuals 29-Sep-95
- ------------------------------------------------------------------------------
0932 Tail For Sale D5004C 71:55 1989 Coastline Films 16-Sep-94
- ------------------------------------------------------------------------------
0293 Tailgate Party 75:34 1991 Hollywood Video 14-Jun-94
- ------------------------------------------------------------------------------
1170 Tailgunners 78:40 Cinderella 22-Oct-94
- ------------------------------------------------------------------------------
1917 Tailiens 75:49 1992 Fat Dog 23-Feb-95
- ------------------------------------------------------------------------------
1854 Tailiens #02 65:48 1992 Fat Dog 20-Jan-95
- ------------------------------------------------------------------------------
1919 Tailiens #03 76:11 1992 Fat Dog 23-Feb-95
- ------------------------------------------------------------------------------
1568 Tails Of Taija 70:39 1989 Dreamland Ent. 03-Jan-95
- ------------------------------------------------------------------------------
4658 Tails Of Temptation 84:56 30-Aug-96
- ------------------------------------------------------------------------------
4298 Tails of The Orient 75:04 EVN (CDI) 17-Jul-96
- ------------------------------------------------------------------------------
2867 Tails Of The Town 69:46 1988 Western Visuals 03-Jan-96
- ------------------------------------------------------------------------------
4319 Tails of the Uncensored
(Dupe: 2987?) 81:39 0 Fantazy 24-Jul-96
- ------------------------------------------------------------------------------
,3086 Tails Of Tribeca 86:07 1993 Heatwave 02-Feb-96
- ------------------------------------------------------------------------------
2858 Tails To Remember 71:33 1992 Heatwave 03-Jan-96
- ------------------------------------------------------------------------------
2014 Tailspinners #01 87:50 1991 Video Team 23-Feb-95
- ------------------------------------------------------------------------------
2261 Tailspinners #02 78:08 1991 Video Team 24-May-95
- ------------------------------------------------------------------------------
1964 Tailspinners #03 72:48 1992 Video Team 23-Feb-95
- ------------------------------------------------------------------------------
1690 Tailtaggers #101 83:51 1993 Western Visuals 20-Dec-94
- ------------------------------------------------------------------------------
1688 Tailtaggers #102 84:17 1993 Western Visuals 20-Dec-94
- ------------------------------------------------------------------------------
2903 Tailz From Da Hood #02 84:50 1995 Avica 06-Feb-96
- ------------------------------------------------------------------------------
3457 Take It Inside 83:38 1995 Pepper Prod. 23-May-96
- ------------------------------------------------------------------------------
1484 Take It To The Streets 73:26 Cinderella 18-Nov-94
- ------------------------------------------------------------------------------
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- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
2800 Take Me 86:07 1988 29-Nov-95
- ------------------------------------------------------------------------------
0336 Take My Body 85:53 1988 Hollywood Video 14-Jun-94
- ------------------------------------------------------------------------------
3118 Take My Wife, Please 73:02 1993 Xcitment Video 16-Feb-96
- ------------------------------------------------------------------------------
2183 Take the 'A' Train 68:33 Midnight Video 01-May-95
- ------------------------------------------------------------------------------
3316 Take This Wad And Shove It 83:03 1994 Filmwest 06-May-96
- ------------------------------------------------------------------------------
2987 Tales Of The Uncensored -
Three Shor 81:37 Fanta-Z 19-Jan-96
- ------------------------------------------------------------------------------
2106 Talk Dirty To Me #01 80:19 1983 Dreamland Ent. 16-Feb-95
- ------------------------------------------------------------------------------
4243 Talk Dirty To Me #02 72:14 1987 Plum Prod. 10-Feb-97
- ------------------------------------------------------------------------------
2362 Talk Dirty To Me #03 70:14 1984 Dreamland Ent. 27-Jun-95
- ------------------------------------------------------------------------------
3366 Talk Dirty To Me #04 72:19 1989 Four Rivers/Visu 23-May-96
- ------------------------------------------------------------------------------
3368 Talk Dirty To Me #06 79:23 1988 Pachard Prod. 24-May-96
- ------------------------------------------------------------------------------
3084 Talk Dirty To Me #07 87:59 1989 Dreamland Ent. 16-Feb-96
- ------------------------------------------------------------------------------
1232 Talk Dirty To Me #09 82:26 1992 Dreamland Ent. 27-Oct-94
- ------------------------------------------------------------------------------
4968 Talk Dirty to Me #10 82:54 1996 Dreamland Ent. 13-Nov-96
- ------------------------------------------------------------------------------
3367 Talk Dirty To Me 5 83:38 1986 Dreamland Home 23-May-96
- ------------------------------------------------------------------------------
4241 Talk Dirty To Me One More
Time 75:33 1985 Ricston Producti 17-Jan-97
- ------------------------------------------------------------------------------
2829 Talking Trash 78:23 1995 Heatwave Entert 29-Nov-95
- ------------------------------------------------------------------------------
4312 Tamara Lee's Pleasure
Principles 76:00 1990 Fantazy Ent 25-Jul-96
- ------------------------------------------------------------------------------
6653 Tammi Ann's Just A Girl 72:37 1997 ABV-USA 03-Sep-97
- ------------------------------------------------------------------------------
1542 Tara 78:17 Magic Night Vide 21-Nov-94
- ------------------------------------------------------------------------------
2084 Tasty Treats #04 76:22 1994 Plum Prod. 23-Feb-95
- ------------------------------------------------------------------------------
6513 Teachers Pet #04 117:00 Digital Media Gro 28-Apr-97
- ------------------------------------------------------------------------------
2164 Teasers 88:16 1984 Hollywood Video 23-Sep-94
- ------------------------------------------------------------------------------
4372 Teenage Games 0 0 Hollywood Video
- ------------------------------------------------------------------------------
1792 Temperatures Rising 84:37 1986 Video Team 20-Jan-95
- ------------------------------------------------------------------------------
5177 Temple Of Poon 86:30 1995 Plush Ent. 03-Dec-96
- ------------------------------------------------------------------------------
2011 Temptation Eyes 82:47 1991 Video Team 23-Feb-95
- ------------------------------------------------------------------------------
6123 Temptation Eyes 86:51 1996 La'Mour Producti 24-Feb-97
- ------------------------------------------------------------------------------
2437 Temptation Of Serenity 75:12 1994 Wicked Pictures 18-Jul-95
- ------------------------------------------------------------------------------
1564 Temptations 85:24 1989 Dreamland Ent. 03-Jan-95
- ------------------------------------------------------------------------------
6492 Teri Diver's Bedtime
Stories 83:07 1993 Fat Dog 07-May-97
- ------------------------------------------------------------------------------
3514 Texas Crude 81:36 1996 Nitro 25-Sep-96
- ------------------------------------------------------------------------------
4955 Thalasso - Spa Sex 74:09 1995 Digital Media 05-Nov-96
- ------------------------------------------------------------------------------
2869 The A Team Returns 74:15 1988 Western Visuals 03-Jan-96
- ------------------------------------------------------------------------------
2219 The Adventures Of Billy
Blues 65:48 1990 Hollywood Video 10-Aug-95
- ------------------------------------------------------------------------------
1335 The Adventures Of Dick
Black 86:30 1987 Dreamland Ent. 31-Oct-94
- ------------------------------------------------------------------------------
3455 The Adventures Of Mighty
Man 72:39 N/A 17-May-96
- ------------------------------------------------------------------------------
2482 The Adventures Of Nanou-
Con-fesse 76:15 1994 22-Aug-95
- ------------------------------------------------------------------------------
2785 The Adventures Of Seymore
Butts 110:39 1995 Sunshine Films 29-Nov-95
- ------------------------------------------------------------------------------
1012 The Anal Chronicle 70:23 1991 Coast To Coast 12-Sep-94
- ------------------------------------------------------------------------------
2794 The Angel In Mr. Holmes 79:53 1988 Western Visuals 29-Nov-95
- ------------------------------------------------------------------------------
2355 The Animal In Me 77:39 1987 Mirage Video 04-Jul-95
- ------------------------------------------------------------------------------
4216 The Ass Master 0
- ------------------------------------------------------------------------------
4141 The Awakening 87:39 1992
- ------------------------------------------------------------------------------
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MASTER DATA BASE
- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
5218 The Back Doors 77:26 1991 Western Visuals 08-Jan-97
- ------------------------------------------------------------------------------
1789 The Backway Inn 73:31 1992 Fat Dog 30-Jan-95
- ------------------------------------------------------------------------------
1853 The Basket Trick 73:00 1993 08-Aug-94
- ------------------------------------------------------------------------------
1519 The Beat Goes On 74:14 1986 Bobby Hollander 28-Oct-94
- ------------------------------------------------------------------------------
4854 The Beaverly Hillbillies 98:07 1996 In-X-Cess Produc 17-Oct-96
- ------------------------------------------------------------------------------
2381 The Best of Bad Mama
Jama 85:52 1991 Video Team 27-Jun-95
- ------------------------------------------------------------------------------
3133 The Best Of Deidre
Holland 69:26 1990 04-Mar-96
- ------------------------------------------------------------------------------
3447 The Best Of Ona
Zee's Sex Academy 86:28 1995 Ona Zee Prod. 15-May-96
- ------------------------------------------------------------------------------
4239 The Best Of Our Bang #15 73:05 Glitz Video 17-Jan-97
- ------------------------------------------------------------------------------
1872 The Best Of Sean
Michaels 83:50 1994 Video Team 30-Jan-95
- ------------------------------------------------------------------------------
1993 The Bet 80:50 1990 Video Team 02-Mar-95
- ------------------------------------------------------------------------------
2464 The Bi Chill 86:27 1994 Bi-Line 30-Aug-95
- ------------------------------------------------------------------------------
1685 The Big Gun 72:53 1990 Cinderella 19-Dec-94
- ------------------------------------------------------------------------------
3729 The Big One 93:09 1995 Hollywood Video 16-Jul-96
- ------------------------------------------------------------------------------
0892 The Big Shave 85:15 1993 Pepper Prod. 30-Aug-94
- ------------------------------------------------------------------------------
1621 The Big Sleazy 81:40 Videodrome 30-Nov-94
- ------------------------------------------------------------------------------
3117 The Big Stick Up 89:27 1994 Western Visuals 16-Feb-96
- ------------------------------------------------------------------------------
3043 The Big Switch 3 -
Bachelor Party 76:30 1991 Catalina 31-Jan-96
- ------------------------------------------------------------------------------
1553 The Bitch 88:33 1989 Cinderella 18-Nov-94
- ------------------------------------------------------------------------------
1554 The Bitch Is Back 72:15 1988 Fantasy Home Vi 18-Nov-94
- ------------------------------------------------------------------------------
0924 The Bite 69:40 1991 Legend Video 25-Aug-94
- ------------------------------------------------------------------------------
4646 The Blues 74:12 0 CDI/Video Team 30-Aug-96
- ------------------------------------------------------------------------------
1924 The Blues #02 75:20 1994 Video Team 02-Mar-95
- ------------------------------------------------------------------------------
2236 The Bod Squad 87:44 1989 Video Team 24-May-95
- ------------------------------------------------------------------------------
0949 The Bored Housewife 76:41 1991 Cinderella 01-Aug-94
- ------------------------------------------------------------------------------
1829 The Boss 82:14 1993 Video Team 20-Jan-95
- ------------------------------------------------------------------------------
4345 The Boss 78:30 Fantazy Ent 25-Jul-96
- ------------------------------------------------------------------------------
2974 The Bottom Line 79:36 1987 Western Visuals 31-Jan-96
- ------------------------------------------------------------------------------
0181 The Brazilian Connection 97:32 1988 n
- ------------------------------------------------------------------------------
2652 The Bride 72:50 1987 Western Visuals 02-Nov-95
- ------------------------------------------------------------------------------
1914 The British Are Coming 76:04 1993 Zane Ent. 01-Mar-95
- ------------------------------------------------------------------------------
2600 The Brothel 78:35 1993 Odyssey Group/ 08-Sep-95
- ------------------------------------------------------------------------------
4211 The Burma Road #01 00:00
- ------------------------------------------------------------------------------
4245 The Burma Road #02 112:20 1994 24-Jul-96
- ------------------------------------------------------------------------------
2342 The Bush League #02 74:32 1992 Pearl Necklace V 27-Jun-95
- ------------------------------------------------------------------------------
2340 The Bush League #10 80:44 1992 Pearl Necklace V 27-Jun-95
- ------------------------------------------------------------------------------
2427 The Bush League #18 76:34 1993
- ------------------------------------------------------------------------------
2182 The Butt Sisters Do
Detroit 77:18 1993 Midnight Film 28-Apr-95
- ------------------------------------------------------------------------------
2887 The Case Of The Cockney
Cupcake 81:46 1989 Moonlight Entert 03-Jan-96
- ------------------------------------------------------------------------------
2643 The Case Of The Crooked
Cathouse 77:46 1988 Moonlight Entert 02-Nov-95
- ------------------------------------------------------------------------------
2649 The Case Of The Mad
Tickler 75:36 1987 Moonlight Entert 02-Nov-95
- ------------------------------------------------------------------------------
2971 The Case of the Sensuous
Sinners 77:28 1988 Moonlight Entert 31-Jan-96
- ------------------------------------------------------------------------------
0820 The Cockateer 68:43 1991 Legend Video 23-Oct-94
- ------------------------------------------------------------------------------
2314 The Combo 44:38 Global 24-Apr-96
- ------------------------------------------------------------------------------
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MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
0821 The Come On 73:55 1991 Legend Video 23-Oct-94
- ------------------------------------------------------------------------------
4824 The Coming Of Nikita 133:12 1995 Elegant Angel 08-Oct-96
- ------------------------------------------------------------------------------
4215 The Conquest 86:20 1994 Sin City 26-Jul-96
- ------------------------------------------------------------------------------
1257 The Corner 79:53 1994 Video Team 27-Oct-94
- ------------------------------------------------------------------------------
1855 The Darkroom 82:50 1994 Video Team 20-Jan-95
- ------------------------------------------------------------------------------
4989C The Derenzy Tapes 86:42
- ------------------------------------------------------------------------------
2127 The Desirous Wife 73:25 01-May-95
- ------------------------------------------------------------------------------
XXX The Devil Made Her Do It 0
- ------------------------------------------------------------------------------
5100 The Diamond 103:09 1995 Carolyn Monroe 29-Nov-96
- ------------------------------------------------------------------------------
4218 The Doctor Is In #01 115:23 Nitro Production 11-Nov-96
- ------------------------------------------------------------------------------
4217 The Doctor Is In #02 114:29 1995 31-Dec-95
- ------------------------------------------------------------------------------
4734 The Doctor Is In #03 116:38 1995 Nitro 05-Sep-96
- ------------------------------------------------------------------------------
0021 The Edge Of Heat #02 86:14 1989 4 Play Prod. 14-Jun-94
- ------------------------------------------------------------------------------
0022 The Edge Of Heat #03 72:48 1989 4 Play Prod. 14-Jun-94
- ------------------------------------------------------------------------------
0053 The Edge Of Heat #04 85:00 1989 4 Play Prod. 14-Jun-94
- ------------------------------------------------------------------------------
0866 The Elixer 66:37 Cinderella 01-Aug-94
- ------------------------------------------------------------------------------
6239 The Erotic Adventures
Of "Aladdin X" 84:06 0 In-X-Cess Prod. 03-Mar-97
- ------------------------------------------------------------------------------
0437 The Exhibitionist 82:00
- ------------------------------------------------------------------------------
2516 The Fabulous 50 Girls 71:59 1994 Emerald City Pro 30-Aug-95
- ------------------------------------------------------------------------------
1263 The Face 84:11 1994 The Face 27-Oct-94
- ------------------------------------------------------------------------------
1230 The Fantasy Booth 83:42 1995 Ona Zee Prod. 27-Oct-94
- ------------------------------------------------------------------------------
5311C The Filthy Rich 00:00
- ------------------------------------------------------------------------------
1398 The Fine Line 81:54
- ------------------------------------------------------------------------------
1038 The Fire Down Below 69:06 1992 Cinderella 12-Sep-94
- ------------------------------------------------------------------------------
2221 The Fluffer 83:04 1993 Fat Dog 01-May-95
- ------------------------------------------------------------------------------
2213 The Fluffer #02 71:29 1993 Fat Dog 01-May-95
- ------------------------------------------------------------------------------
2804 The Fury*Cppa 72:25 1993
- ------------------------------------------------------------------------------
6652 The Girl Just Can't Help
It #09 70:31 1997 ABV/USA 03-Sep-97
- ------------------------------------------------------------------------------
2436 The Girl Next Door #01 77:20 1995 Video Team 02-Aug-95
- ------------------------------------------------------------------------------
2417 The Girl Next Door #02 74:27 1995 Video Team 02-Aug-95
- ------------------------------------------------------------------------------
1191 The Girl With The Million
Dollar Legs 85:30 1994 L.A. Video Corpo 09-Sep-94
- ------------------------------------------------------------------------------
4401 The Girls of Bel-Air 76:22 1994 26-Jul-96
- ------------------------------------------------------------------------------
2441 The Girls Of The "A"
Team 80:38 1985 Western Visuals 18-Jul-95
- ------------------------------------------------------------------------------
0905 The Goddess 75:05 1993 n 30-Aug-94
- ------------------------------------------------------------------------------
2657 The Golden Touch 80:05 1995 Wicked Pictures 05-Oct-95
- ------------------------------------------------------------------------------
1231 The Governess 76:30 1993 Wicked Pictures 27-Oct-94
- ------------------------------------------------------------------------------
2882 The Great American
Blonde 64:03 1987 Western Visuals 03-Jan-96
- ------------------------------------------------------------------------------
4210 The Great Sex Contest
#02 73:25 1989 Las Vegas Video 26-Jul-96
- ------------------------------------------------------------------------------
6220 The Gypsy 80:55 Nitro 01-Mar-97
- ------------------------------------------------------------------------------
6263 The Happy Office 80:49 Nitro Prod 04-Apr-97
- ------------------------------------------------------------------------------
0869 The Hard Line 84:51 1993 Pepper Prod. 14-Aug-94
- ------------------------------------------------------------------------------
1093 The Hardcore Cafe 70:47 1991 08-Aug-94
- ------------------------------------------------------------------------------
4228 The Heat At Summer's
End (D-917) 89:57 1991 Rosebud Product 03-Dec-96
- ------------------------------------------------------------------------------
2416 The Heat Is On 81:35 1985 Western Visuals 18-Jul-95
- ------------------------------------------------------------------------------
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- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
0982 The Honey Mooners 81:39 1989 4 Play Prod. 12-Sep-94
- ------------------------------------------------------------------------------
0042 The Honeymoon 78:56 1989 4 Play Prod. 14-Jun-94
- ------------------------------------------------------------------------------
0327 The Hot Lick Cafe 87:53 1989 Double D 14-Jun-94
- ------------------------------------------------------------------------------
2291 The Howard Sperm Show 73:11 1993 Las Vegas 02-Jun-95
- ------------------------------------------------------------------------------
1403 The Hunger 75:20 1993 Forbidden 25-Nov-94
- ------------------------------------------------------------------------------
1965 The Huntress 73:09 1987 Intropics 23-Feb-95
- ------------------------------------------------------------------------------
0941 The Hustler 71:36 1990 Ebony & Ivory 14-Sep-94
- ------------------------------------------------------------------------------
2450 The Idol 89:25 1985 Western Visuals 28-Aug-95
- ------------------------------------------------------------------------------
4667 The Initiation Of Kylie 72:58 1995 CDI/Video Team 04-Sep-96
- ------------------------------------------------------------------------------
3238 The Inseminator 107:21 1994 Gee Mann Produ 07-May-96
- ------------------------------------------------------------------------------
2786 The Intergalactic
Adventures Of Long 78:04 1995 FHV/Sunshine 29-Nov-95
- ------------------------------------------------------------------------------
5221 The Journey 85:36 1991 Western Visuals 08-Jan-97
- ------------------------------------------------------------------------------
4227 The Kiss D3286 76:32 1990 Sin City Video 10-Feb-97
- ------------------------------------------------------------------------------
3286 The Kiss D4227 69:10 1990 Sin City 01-May-96
- ------------------------------------------------------------------------------
3015 The Last Anal Hero 88:05 Odyssey Group
- ------------------------------------------------------------------------------
2103 The Last Condom 78:59 1988 Night Magic 28-Feb-95
- ------------------------------------------------------------------------------
1092 The Last Girl Scout 71:54 1992 10-Aug-95
- ------------------------------------------------------------------------------
6238 The Last Vamp 83:30 1996 In-X-Cess Prod. 03-Mar-97
- ------------------------------------------------------------------------------
2228 The Look 70:27 1993 Wicked Pictures 24-Apr-95
- ------------------------------------------------------------------------------
0091 The Love Mistress 73:16 1989 Western Visuals 14-Jun-94
- ------------------------------------------------------------------------------
2460 The Love Scene 86:26 1985 Night Magic Vide 22-Aug-95
- ------------------------------------------------------------------------------
2648 The Lust Portion Of
Dr. F 90:02 1986 Western Visuals 02-Nov-95
- ------------------------------------------------------------------------------
4784 The Luv Bang 62:19 1996 Sin City 17-Oct-96
- ------------------------------------------------------------------------------
4839 The Madd DP Tea Party 84:09 1994 FilmCo Video 08-Nov-96
- ------------------------------------------------------------------------------
3967 The Magic Box 82:47 1993 28-Jul-96
- ------------------------------------------------------------------------------
1456 The Magic Box - D3967 77:00 1993 Soho Video 03-Jan-95
- ------------------------------------------------------------------------------
3249 The Mating Game 70:45 1992 Pleasure Produc 23-May-96
- ------------------------------------------------------------------------------
4740 The Meatman 85:45 1995 Outlaw 23-Aug-96
- ------------------------------------------------------------------------------
4528 The Mountie 85:31 1995 01-Aug-96
- ------------------------------------------------------------------------------
1788 The Natural 76:14 1993 Video Team 30-Jan-95
- ------------------------------------------------------------------------------
2866 The Night Before 64:20 1987 Western Visuals 03-Jan-96
- ------------------------------------------------------------------------------
2854 The Night Temptress 105:52 1989 Hustler Adult Vid 03-Jan-96
- ------------------------------------------------------------------------------
4531 The O.J. Simpson Trial 85:07 1995 01-Aug-96
- ------------------------------------------------------------------------------
2514 The One And Only 84:48 1988 LBO 28-Aug-95
- ------------------------------------------------------------------------------
0899 The Orgy 69:46 Emerald City 30-Aug-94
- ------------------------------------------------------------------------------
2083 The Orgy #02 71:54 1993 Emerald City Ent 23-Feb-95
- ------------------------------------------------------------------------------
2078 The Orgy #03 72:13 1993 Emerald City 02-Mar-95
- ------------------------------------------------------------------------------
1021 The Other Side Of
Chelsea 76:24 1992 07-Oct-94
- ------------------------------------------------------------------------------
0874 The Other Side Of
Debbie 75:41 1991 Coast To Coast 14-Aug-94
- ------------------------------------------------------------------------------
1486 The Out Of Towner 73:00 Cinderella 18-Nov-94
- ------------------------------------------------------------------------------
4203 The Penthouse 75:07 1989 Plum Prod. 03-Dec-96
- ------------------------------------------------------------------------------
4578 The Perfect Girl 62:37 CDI/Pepper 23-Aug-96
- ------------------------------------------------------------------------------
2452 The Pink Lagoon 90:39 1984 Colectors Vid. 30-Aug-95
- ------------------------------------------------------------------------------
1073 The Pink Pussycat 88:27 1992 Hustler 31-Oct-94
- ------------------------------------------------------------------------------
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- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
1650 The Pleasure Of Innocence 84:19 1984 Night Magic 02-Dec-94
- ------------------------------------------------------------------------------
4222 The Poetry Of The Flesh -
Duplicate 77:46 1993 Pepper Prod. 14-Jan-97
- ------------------------------------------------------------------------------
4209 The Power and the Passion 84:30 1993 26-Jul-96
- ------------------------------------------------------------------------------
2053 The Price Is Right 86:28 1992 Video Team 02-Mar-95
- ------------------------------------------------------------------------------
4117 The Proposal 72:10 Hollywood Video 23-Jul-96
- ------------------------------------------------------------------------------
0945 The Psychics 72:30 1994 Coast To Coast 14-Aug-94
- ------------------------------------------------------------------------------
0975 The Pump 69:54 1991 Coast To Coast 07-Oct-94
- ------------------------------------------------------------------------------
4235 The Quest 68:22 1994 Sin City/Paul Nor 14-Jan-97
- ------------------------------------------------------------------------------
4229 The Reel World #02 81:52 1994 Forbidden Films 14-Jan-97
- ------------------------------------------------------------------------------
4220 The Reel World #03 74:33 1995 Forbidden Films 09-Apr-97
- ------------------------------------------------------------------------------
4221 The Reel World #04 72:06 1995 Forbiddden Films; 09-Apr-97
- ------------------------------------------------------------------------------
2199 The Return Of Johnny Wadd 89:04 1987 Penguin 24-May-95
- ------------------------------------------------------------------------------
2926 The Romeo Syndrome 71:52 1995 Sin City 03-Jan-96
- ------------------------------------------------------------------------------
XXX The Screamer 0
- ------------------------------------------------------------------------------
1475 The Seduction Formula 68:37 1990 Fanta-Z/Cinderell 09-Dec-94
- ------------------------------------------------------------------------------
1991 The Seduction Of Julia Ann 78:23 1993 Video Team 02-Mar-95
- ------------------------------------------------------------------------------
2089 The Seduction Of Lana Shore 73:07 1984 01-May-95
- ------------------------------------------------------------------------------
0373 The Sensuous Detective 00:00
- ------------------------------------------------------------------------------
1992 The Sex Scientist 75:37 1993 Fat Dog 23-Feb-95
- ------------------------------------------------------------------------------
2052 The Sexual Zone 70:08 1989 Executive Vid. In 23-Feb-95
- ------------------------------------------------------------------------------
2082 The Slut D4223 71:08 1988 Fantasy/Cinder 02-Mar-95
- ------------------------------------------------------------------------------
4223 The Slut D2082 70:47 1988 Pachard Product 14-Jan-97
- ------------------------------------------------------------------------------
4741 The Sodomizer 83:54 1995 Sin City 24-Sep-96
- ------------------------------------------------------------------------------
1815 The Spectacle 68:44 1991 Intropics 20-Jan-95
- ------------------------------------------------------------------------------
2231 The Star 77:51 1991 Hollywood Video 01-May-95
- ------------------------------------------------------------------------------
2940 The Starlet 65:17 1991 Plum Prod. 16-Jan-96
- ------------------------------------------------------------------------------
3285 The Starlet 66:48 1995 Sin City 01-May-96
- ------------------------------------------------------------------------------
4451 The Stranger 87:03 Bella Pictures 25-Jul-96
- ------------------------------------------------------------------------------
5219 The Stranger Beside Me 80:17 1991 Western Visuals 08-Jan-97
- ------------------------------------------------------------------------------
1014 The Streets Of New York
#01 114:47 1993 07-Oct-94
- ------------------------------------------------------------------------------
1569 The Streets of New York
#03 108:41 1995 Rick Savage 08-Aug-94
- ------------------------------------------------------------------------------
2245 The Streets of New York
#04 109:00 1994 Pleasure Produc 01-May-95
- ------------------------------------------------------------------------------
4231 The Strip 76:59 1992 Sin City 14-Jan-97
- ------------------------------------------------------------------------------
5292C The Suduction Of Tessa 00:00 Colmax Prod.
- ------------------------------------------------------------------------------
4202 The Tempest 82:23 1993 Sin City 30-Jun-96
- ------------------------------------------------------------------------------
1182 The Three Muskatitties 82:05 1994 08-Aug-94
- ------------------------------------------------------------------------------
2999 The Tunnel of Lust 70:04 1993 Las Vegas Video 19-Jan-96
- ------------------------------------------------------------------------------
0084 The Ultimate O 74:58 1986 Now Showing 14-Jun-94
- ------------------------------------------------------------------------------
4768 The Usual Anal Suspects 85:29 1996 Coast To Coast 24-Sep-96
- ------------------------------------------------------------------------------
6277 The Virgin Hotline 92:31 1996 Klimaxxx/Liquid 04-Apr-97
- ------------------------------------------------------------------------------
0823 The Vision 66:49 1991 Legend Video 23-Oct-94
- ------------------------------------------------------------------------------
4825 The Voyeur 121:23 1994 John Leslie Prod. 08-Oct-96
- ------------------------------------------------------------------------------
4821 The Voyeur #03 119:40 1995 John Leslie Prod. 08-Oct-96
- ------------------------------------------------------------------------------
4224 The Wanderer 70:09 1995 Cinderella 06-Jun-96
- ------------------------------------------------------------------------------
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- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
3483 The Watering Hole 76:20 1995 Hollywood Video 24-May-96
- ------------------------------------------------------------------------------
1430 The Way We Were 73:13 1990 Cinderella 28-Oct-94
- ------------------------------------------------------------------------------
0845 The Wild And The Innocent 78:53 Coast To Coast 06-May-94
- ------------------------------------------------------------------------------
3085 The Wild Breed 75:04 1995 Sin City 02-Feb-96
- ------------------------------------------------------------------------------
2758 The Wild Party 92:17 1992 Pleasure Produc 11-Dec-95
- ------------------------------------------------------------------------------
1805 The X Factor 86:23 1984
- ------------------------------------------------------------------------------
1807 The X Factor #02 75:31 1991 Hollywood Video 20-Jan-95
- ------------------------------------------------------------------------------
0665 The Young And The Wrestling 73:00 08-Aug-94
- ------------------------------------------------------------------------------
1584 The Young And The Wrestling
#02 75:59 1989 08-Aug-94
- ------------------------------------------------------------------------------
1370 Thighs And Dolls 79:17 Rocotillo Pepper 17-Nov-94
- ------------------------------------------------------------------------------
4552 Thin Ice 83:06 1996 Ona Zee Prod. 23-Aug-96
- ------------------------------------------------------------------------------
2251 Things Change My First Time 80:27 1993 Cal Vista 24-May-95
- ------------------------------------------------------------------------------
4342 This Buns for You 74:54 1989 Fantazy Ent 24-Jul-96
- ------------------------------------------------------------------------------
XXX This Girl Is Freaky 00:00
- ------------------------------------------------------------------------------
0825 This Year's Blonde 72:16 1990 Legend Video 23-Oct-94
- ------------------------------------------------------------------------------
0139 Those Lynn Girls 89:51 Western Visuals 14-Jun-94
- ------------------------------------------------------------------------------
2996 Three Daughters**CPPA 108:58 1986
- ------------------------------------------------------------------------------
1907 Three For All 69:46 1988 08-Feb-95
- ------------------------------------------------------------------------------
4757 Three Hearts 87:30 1995 Coast To Coast 20-Sep-96
- ------------------------------------------------------------------------------
4339 Three Men and a Barbi 78:52 Fantazy Ent 25-Jul-96
- ------------------------------------------------------------------------------
3001 Three Men And A Geisha 78:12 1990 Hollywood Video 19-Jan-96
- ------------------------------------------------------------------------------
XXX Three Men And A Hooker 00:00
- ------------------------------------------------------------------------------
0051 Three Way Action #02 116:54 1991 N/A 14-Jun-94
- ------------------------------------------------------------------------------
2121 Three Wives 77:33 1993 Video Team 22-Mar-95
- ------------------------------------------------------------------------------
0358 Three's A Crowd 76:00 Hollywood Video 23-Sep-94
- ------------------------------------------------------------------------------
0734 Thrill Seekers 68:36 Rosebud Prod. 01-Jun-94
- ------------------------------------------------------------------------------
2413 Thrill Street Blues 85:35 1985 Western Visuals 18-Jul-95
- ------------------------------------------------------------------------------
5255 Throbbing Threesomes 60:04 0 Rod Suction 08-Jan-97
- ------------------------------------------------------------------------------
4304 Thru The Walls 71:36 1990 Fantazy Ent 25-Jul-96
- ------------------------------------------------------------------------------
4831 Thunder Road 75:49 1995 Sin City 20-Sep-96
- ------------------------------------------------------------------------------
1588 Thy Neighbours Wife 83:10 Dreamland Ent. 03-Jan-95
- ------------------------------------------------------------------------------
4207 Tia's Holiday Gang Bang 73:10 Hollywood Video 23-Jul-96
- ------------------------------------------------------------------------------
4233 Ticket To Ride 70:13 1989 Las Vegas Video 12-Nov-96
- ------------------------------------------------------------------------------
4225 Tiffany Minx Affair 84:23 1992 Forbidden Films 06-Jun-96
- ------------------------------------------------------------------------------
4205 Tight Ends In Motion 75:56 1993 Total Video Prod 03-Dec-96
- ------------------------------------------------------------------------------
1860 Tight Pucker 80:54 1992 Bad Girls 03-Jan-95
- ------------------------------------------------------------------------------
6042 Tight Spot 117:54 1996 Western Visuals 28-Jan-97
- ------------------------------------------------------------------------------
6064 Tinsel Town Tails 82:32 1995 Notorious Produ 28-Jan-97
- ------------------------------------------------------------------------------
4841 Tireus De Nympho 80:14 Turbo Film 08-Nov-96
- ------------------------------------------------------------------------------
4236 Tit City 81:05 1993 Sin City 14-Jan-97
- ------------------------------------------------------------------------------
4219 Tit for Tat 84:23 1993 30-Jun-96
- ------------------------------------------------------------------------------
1541 Tit Lust #01 72:43 L.A. Prod. 28-Oct-94
- ------------------------------------------------------------------------------
0090 Tit Tails 72:22 1990 Filmco Releasing 01-Jun-94
- ------------------------------------------------------------------------------
0128 Tit Tales #02 85:34 n 14-Jun-94
- ------------------------------------------------------------------------------
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- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
0008 Tit Tales #03 -
(Long Version) D0062 78:54 1991 Filmco/Loretta St 01-Jun-95
- ------------------------------------------------------------------------------
1407 Tit Tales #04 76:23 1993 Filmco 25-Nov-94
- ------------------------------------------------------------------------------
3081 Titallation #02 83:29 1990 Night Magic 05-Feb-96
- ------------------------------------------------------------------------------
4246 Titanic Orgy 146:23 1995 Pepper Prod. 03-Dec-96
- ------------------------------------------------------------------------------
0319 Titillation 80:19 1982 N/A 14-Jun-94
- ------------------------------------------------------------------------------
4359 Titty Bar 77:25 1993 CDI/S.Canterbur 26-Jul-96
- ------------------------------------------------------------------------------
3458 Titty Bar #02 72:38 1995 Legend Video 23-May-96
- ------------------------------------------------------------------------------
2086 Titty Slickers 69:49 1994 14-Aug-95
- ------------------------------------------------------------------------------
0135 Titty Titty Bang Bang 87:29 1992 Filmco Releasing 01-Jun-94
- ------------------------------------------------------------------------------
4772 Titty Troop**CPPA 77:26 1995 Coast-To-Coast 24-Sep-96
- ------------------------------------------------------------------------------
1603 To Shave Or Shave Not 79:55 1994 Pepper Pussy Sh 19-Dec-94
- ------------------------------------------------------------------------------
1388 Tobianna - Gang Bang Fantasy 74:52 1993 Filmco 25-Nov-94
- ------------------------------------------------------------------------------
4900 Tokyo Blue #06 0
- ------------------------------------------------------------------------------
4901 Tokyo Blue #07 0
- ------------------------------------------------------------------------------
4903 Tokyo Blue #08 0
- ------------------------------------------------------------------------------
2433 Tomi Knockers 77:51 1994 Coast To Coast 11-Aug-95
- ------------------------------------------------------------------------------
2135 Tongue And Cheek 80:57 1994 Legend
- ------------------------------------------------------------------------------
1649 Too Naughty To Say No 74:41 1984 Night Magic 20-Dec-94
- ------------------------------------------------------------------------------
5346C Too Naughty To Say No 0
- ------------------------------------------------------------------------------
5261 Tools Of The Trade 82:41 1990 WVI 20-Feb-97
- ------------------------------------------------------------------------------
4959 Top Model 86:42 1995 Sin City 11-Nov-96
- ------------------------------------------------------------------------------
4349 Topless Brain Surgeons 82:27 1996 CDI/S.Canterbur 26-Jul-96
- ------------------------------------------------------------------------------
4318 Topless Stewardesses 72:34 1991 CDI/S.Canterbur 25-Jul-96
- ------------------------------------------------------------------------------
5332C Torie Welles Is Vogue 00:00 Vidco
- ------------------------------------------------------------------------------
0988 Total Reball 75:04 1992 Coast To Coast 07-Oct-94
- ------------------------------------------------------------------------------
1714 Totally Tastless #01 81:56 1994 Totally Tastless 30-Nov-94
- ------------------------------------------------------------------------------
0322 Touch Me 79:00 Hollywood Classi 14-Jun-94
- ------------------------------------------------------------------------------
2097 Touch Me In The Morning 75:00 1982 Night Magic 31-Jan-95
- ------------------------------------------------------------------------------
2279 Toutes Premieres Fois 55:55
- ------------------------------------------------------------------------------
2945 Toys 86:19 0 Dolly Buster 16-Jan-96
- ------------------------------------------------------------------------------
2644 Toys 4 Us 70:57 1987 Western Visuals 02-Nov-95
- ------------------------------------------------------------------------------
2467 Toys Bi Us 72:07 1993 Bi-Line 30-Aug-95
- ------------------------------------------------------------------------------
0115 Toys Not Boys - Slut-O-Rama 91:48
- ------------------------------------------------------------------------------
0126 Toys Not Boys 2 - The Milk
Shake 88:31 Filmco 01-Jun-94
- ------------------------------------------------------------------------------
1622 Tracy And The Bandit 82:15 1987 Videodrome 30-Nov-94
- ------------------------------------------------------------------------------
2689 Tracy, Sex And Sun 69:47 Storyboard 05-Dec-95
- ------------------------------------------------------------------------------
1552 Trampire 70:36 Fantazy Ent. 25-Jul-96
- ------------------------------------------------------------------------------
2239 Tranche de Vice 64:53 1991 27-Mar-95
- ------------------------------------------------------------------------------
4946 Trannie and the Professor 78:07 1995 Plush Ent./Blue C 05-Nov-96
- ------------------------------------------------------------------------------
6562 Transcont'I Debutantes #01 86:53 1994 In-X-Cess Produc 08-May-97
- ------------------------------------------------------------------------------
6520 Transcont'l Debutantes #02 73:00 1995 In-X-Cess Prod. 01-May-97
- ------------------------------------------------------------------------------
1089 Transitions 76:17 1993 08-Aug-94
- ------------------------------------------------------------------------------
4945 Transsexual Gameshow 56:04 1996 Plush Ent./Blue C 05-Nov-96
- ------------------------------------------------------------------------------
2235 Treasure Box 81:11 1993 Penguin 24-May-95
- ------------------------------------------------------------------------------
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- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
2998 Treasure Chest 75:02 1994 19-Jan-96
- ------------------------------------------------------------------------------
1847 Tres Riche 85:13 1986 Classic Editions 20-Jan-95
- ------------------------------------------------------------------------------
0846 Trick Tracy #01 86:57 1990 Coast To Coast 06-May-94
- ------------------------------------------------------------------------------
0844 Trick Tracy #02 84:38 1990
- ------------------------------------------------------------------------------
0992 Trick Tracy - Tracy
Loves Dick 77:18 1990 Coast To Coast 07-Oct-94
- ------------------------------------------------------------------------------
5207 Triple "X" #08 00:00 Odyssey Group
- ------------------------------------------------------------------------------
4247 Triple Play #05 68:34 1992 24-Jul-96
- ------------------------------------------------------------------------------
4008 Triple Play #37 84:00 1994 16-Jul-96
- ------------------------------------------------------------------------------
2877 Triple Treat 70:31 1993 Heatwave 03-Jan-96
- ------------------------------------------------------------------------------
6202 Triple X #02 103:05 1995 Milcap Publishin 26-Jun-97
- ------------------------------------------------------------------------------
6203 Triple X #03 91:55 1995 Odyssey Group 08-Apr-97
- ------------------------------------------------------------------------------
6208 Triple X #04 95:44 1996 Odyssey Group 24-Feb-97
- ------------------------------------------------------------------------------
6204 Triple X #05 104:28 1996 N/A 24-Feb-97
- ------------------------------------------------------------------------------
5186 Triple X #06 83:19 1995 Milcap Media 03-Dec-96
- ------------------------------------------------------------------------------
5193 Triple X #07 95:32 1995 Milcap Media 14-Jan-97
- ------------------------------------------------------------------------------
5206 Triple X #09 84:43 1995 Odyssey Group 14-Jan-97
- ------------------------------------------------------------------------------
6126 Triple X #10 84:41 1995 Milcap Media 20-Feb-97
- ------------------------------------------------------------------------------
6102 Triple X #11 83:25 1996 Milcap Media 24-Feb-97
- ------------------------------------------------------------------------------
AAXX Triple X #12 83:18 1996 Odyssey Group
- ------------------------------------------------------------------------------
6229 Triple X #13 102:25 1996 Odyssey Group 01-Mar-97
- ------------------------------------------------------------------------------
6092 Triple X #14 93:34 1996 Private Media 20-Feb-97
- ------------------------------------------------------------------------------
6208 Triple X #4 91:34 1995 Odyssey Group 27-Jun-97
- ------------------------------------------------------------------------------
2592 Trisexual Encounters #01 54:08 1992 Pleasure product 05-Oct-95
- ------------------------------------------------------------------------------
2596 Trisexual Encounters #02 54:30 1992 Pleasure Produc 05-Oct-95
- ------------------------------------------------------------------------------
3311 Trisexual Encounters #06 57:13 02-May-96
- ------------------------------------------------------------------------------
3310 Trisexual Encounters #07 61:10 02-May-96
- ------------------------------------------------------------------------------
4206 Tropical Taboo 72:41 1995 Hollywood Video 23-Jul-96
- ------------------------------------------------------------------------------
2623 Trou Du Cul En Fleurs 82:48 Europix 30-Aug-95
- ------------------------------------------------------------------------------
2400 Trou Du Cul Trafic 77:30 1994 Veronique LeFay 29-Jun-95
- ------------------------------------------------------------------------------
0260 Trouble 75:00 n 14-Jun-94
- ------------------------------------------------------------------------------
1617 Trous D'amour 72:58 0 Fantas 20-Jan-95
- ------------------------------------------------------------------------------
2368 Truck Stop Angel 77:18 1994 Coast To Coast 27-Jun-95
- ------------------------------------------------------------------------------
2838 True Blue 77:26 1989 Down Under Pro 02-Nov-95
- ------------------------------------------------------------------------------
1716 True Sin 71:58 1990 Plum Prod. 19-Dec-94
- ------------------------------------------------------------------------------
4201 Truth And Bare 72:28 1991 Las Vegas Video 12-Nov-96
- ------------------------------------------------------------------------------
0915 Truth Laid Bare 76:19 1993 Zane Ent. 25-Aug-94
- ------------------------------------------------------------------------------
0847 Tug Of Love 82:00 Coast To Coast 06-May-94
- ------------------------------------------------------------------------------
1851 Tunnel Of Love 85:12 1986 Classic Edition Vi 20-Jan-95
- ------------------------------------------------------------------------------
0908 Tush 73:54 1992 Zane Ent. 25-Aug-94
- ------------------------------------------------------------------------------
3036 TV Nation #02 77:08 1994 Heat Wave 02-Feb-96
- ------------------------------------------------------------------------------
2820 TV Parties Tonight 68:25 Heatwave Entert 29-Nov-95
- ------------------------------------------------------------------------------
3132 Twice A Virgin 80:15 1983 04-Mar-96
- ------------------------------------------------------------------------------
2989 Twice As Nice 76:32 1989 Vidway 31-Jan-96
- ------------------------------------------------------------------------------
1048 Twilight 69:17 1992 Zane Ent. 31-Oct-94
- ------------------------------------------------------------------------------
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- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
6518 Twilight #01 - Call A
Girl 87:10 1994 Snatch Prod. 28-Apr-97
- ------------------------------------------------------------------------------
6512 Twilight #02 86:33 1994 Snatch Prod. 28-Apr-97
- ------------------------------------------------------------------------------
2642 Twilight Moans 68:08 1986
- ------------------------------------------------------------------------------
1827 Twin Action 78:05 1993 01-Feb-95
- ------------------------------------------------------------------------------
1273 Twin Cheeks #03 70:04 1991 Cinderella 05-Nov-94
- ------------------------------------------------------------------------------
0993 Twin Cheeks #04 69:20 1991 Cinderella 05-Nov-94
- ------------------------------------------------------------------------------
0808 Twin Freaks 73:31 1992 Zane Ent. 01-Jun-94
- ------------------------------------------------------------------------------
2042 Twin Peaks 66:09 1991 Pleasure Prod. 08-Feb-95
- ------------------------------------------------------------------------------
1560 Twin Peeks 83:24 1991 Dreamland Ent. 03-Jan-95
- ------------------------------------------------------------------------------
0049 Twin Peeks 71:51 1993 Elite Visuals 28-Oct-94
- ------------------------------------------------------------------------------
2449 Twins 73:35 1986 Western Visuals 28-Aug-95
- ------------------------------------------------------------------------------
3284 Twisted Sisters 84:34 1988 Zane Ent. 04-Apr-96
- ------------------------------------------------------------------------------
1433 Twister 67:55
- ------------------------------------------------------------------------------
3513 Twists Of The Heart 81:39 1995 Nitro 25-Sep-96
- ------------------------------------------------------------------------------
6506 Two Can Chew 75:05 1995 Fat Dog 06-May-97
- ------------------------------------------------------------------------------
2139 Two In The Bush 76:02 1991 Executive Vid Inc 10-Mar-95
- ------------------------------------------------------------------------------
0427 Two Into One 2 55:31 1991
- ------------------------------------------------------------------------------
5259 Two Janes 73:30 1990 20-Feb-97
- ------------------------------------------------------------------------------
6250 Two Lays In The Valley 82:01 1996 Cinderella 04-Apr-97
- ------------------------------------------------------------------------------
0922 Two Of A Kind 70:18 1991 Zane Ent. 25-Aug-94
- ------------------------------------------------------------------------------
1758 Two Sisters 84:15 1993 Bad Girl 03-Jan-95
- ------------------------------------------------------------------------------
0749 Two Women 79:17 1992 Rosebud Prod. 01-Jun-94
- ------------------------------------------------------------------------------
1852 UFO Tracker 86:52 1994 Habanero Peppe 20-Jan-95
- ------------------------------------------------------------------------------
2909 Ultimate Orgy #02 72:53 1992 Sin City 03-Jan-96
- ------------------------------------------------------------------------------
2923 Ultimate Orgy #03 74:31 1992 Glitz Video 03-Jan-96
- ------------------------------------------------------------------------------
6641 Ultimate Swimming Pool
Orgy 59:57 0 03-Sep-97
- ------------------------------------------------------------------------------
3234 Ultra Kinky #01 111:03 1994 Meter 23-Apr-96
- ------------------------------------------------------------------------------
3195 Ultra Kinky #02 116:57 1992 Metro Video 199 06-Mar-96
- ------------------------------------------------------------------------------
0052 Ultra Milk Maids 71:40 1995 4 Play Prod. 14-Jun-94
- ------------------------------------------------------------------------------
4261 Un Italiano Tutto Solo
A Praga 77:20 1996 Ona Zee Prod. 30-Jun-96
- ------------------------------------------------------------------------------
3193 Un Movimento weekend di
sesso 86:37 O'Global Vision 04-Apr-96
- ------------------------------------------------------------------------------
6061 Unbridled Lust 79:30 1995 VPN 28-Jan-97
- ------------------------------------------------------------------------------
2008 Unchain My Heart 74:41 1989 Coast To Coast 18-Feb-95
- ------------------------------------------------------------------------------
2210 Uncle Roy's Amtr Home
Vid #05 72:15 1992 Visual Images 01-May-95
- ------------------------------------------------------------------------------
2208 Uncle Roy's Amtr Home
Vid #09 76:37 1992 Visual Images 01-May-95
- ------------------------------------------------------------------------------
2343 Uncle Roy's Amtr Home
Vid #11 75:40 1992 Visual Images 21-Jul-95
- ------------------------------------------------------------------------------
2209 Uncle Roy's Amtr Home
Vid #18 74:56 1993 Visual Images 01-May-95
- ------------------------------------------------------------------------------
2207 Uncle Roy's Amtr Home
Vid #19 75:18 1993 Visual Images 01-May-95
- ------------------------------------------------------------------------------
4681 Uncut Jewel 72:19 1995 04-Sep-96
- ------------------------------------------------------------------------------
4951 Under The Cum-Cum Tree 84:44 1996 Plush Ent./Blue C 05-Nov-96
- ------------------------------------------------------------------------------
5296C Undercover 00:00
- ------------------------------------------------------------------------------
4305 Undercover Carol 65:57 1990 Fantazy Ent 25-Jul-96
- ------------------------------------------------------------------------------
5340C Undressed Rehersal 0 Vidco
- ------------------------------------------------------------------------------
4728 Unfaithful Entry 73:41 1992 CDI/Dreamland E 07-Oct-96
- ------------------------------------------------------------------------------
Page 96
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MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
4574 Unforgettable 77:51 1992 Hollywood Video 23-Aug-96
- ------------------------------------------------------------------------------
1189 Uniform Behavior 85:50 1989 Zane Ent. 04-Aug-95
- ------------------------------------------------------------------------------
4857 Unknown. Deleted Frm DB
By Tony 0 0
- ------------------------------------------------------------------------------
4855 Unknown. Deleted Frm DB
By Tony 0 0
- ------------------------------------------------------------------------------
4094 Unknown. Deleted Frm DB
By Tony 0 0
- ------------------------------------------------------------------------------
2404 Unknown. Deleted Frm DB
By Tony 0 0
- ------------------------------------------------------------------------------
2201 Unknown. Deleted Frm DB
By Tony 0 0
- ------------------------------------------------------------------------------
3979 Unknown. Deleted Frm DB
By Tony 0 0
- ------------------------------------------------------------------------------
3988 Unknown. Deleted Frm DB
By Tony 0 0
- ------------------------------------------------------------------------------
2799 Unknown. Deleted Frm DB
By Tony 0 0
- ------------------------------------------------------------------------------
0299 Unlike A Virgin 75:40 1991 Hollywood Video 14-Jun-94
- ------------------------------------------------------------------------------
2651 Unnatural Phenomenon 72:51 1986 Western Visuals 02-Nov-95
- ------------------------------------------------------------------------------
4760 Unplugged 87:43 1994 Coast To Coast 24-Sep-96
- ------------------------------------------------------------------------------
1032 Unrefined 74:50 1993 Coast To Coast 12-Sep-94
- ------------------------------------------------------------------------------
0870 Unsolved D.Ps 81:45 1990 Pepper Prod. 14-Aug-94
- ------------------------------------------------------------------------------
0296 Untamed 84:10 Hollywood Classi 14-Jun-94
- ------------------------------------------------------------------------------
0345 Unveil My Love 75:00 Hollywood Video 23-Sep-94
- ------------------------------------------------------------------------------
6054 Unzipped 00:00 Western Visuals
- ------------------------------------------------------------------------------
1904 Up Against It 82:17 1993 Zane Ent. 01-Mar-95
- ------------------------------------------------------------------------------
2526 Up And Cummers #01 134:48 1993 Erotica West 18-Oct-95
- ------------------------------------------------------------------------------
2527 Up And Cummers #02 137:26 Erotica West 18-Oct-95
- ------------------------------------------------------------------------------
2528 Up And Cummers #03 136:15 1993 18-Oct-95
- ------------------------------------------------------------------------------
2562 Up And Cummers #04 139:44 1993 18-Oct-95
- ------------------------------------------------------------------------------
2529 Up And Cummers #05 137:30 1993 Erotica West 18-Oct-95
- ------------------------------------------------------------------------------
6537 Up And Cummers #07 137:33 1994 Randy West Prod 15-May-97
- ------------------------------------------------------------------------------
6533 Up And Cummers #08 133:22 1994 Randy West Prod 15-May-97
- ------------------------------------------------------------------------------
6535 Up And Cummers #09 138:38 1994 Randy West Prod 15-May-97
- ------------------------------------------------------------------------------
6538 Up And Cummers #10 138:25 1994 Randy West Prod 15-May-97
- ------------------------------------------------------------------------------
6540 Up and Cummers #11 136:03 1994 Randy West Prod 06-May-97
- ------------------------------------------------------------------------------
6541 Up and Cummers #12 138:03 1994 Randy West Prod 06-May-97
- ------------------------------------------------------------------------------
6564 Up And Cummers #13 138:48 1994 Randy West Prod 15-May-97
- ------------------------------------------------------------------------------
6563 Up And Cummers #14 137:58 1994 Randy West Prod 15-May-97
- ------------------------------------------------------------------------------
6546 Up And Cummers #15 138:50 1995 Randy West Prod 15-May-97
- ------------------------------------------------------------------------------
6545 Up And Cummers #16 138:07 1995 Randy West Prod 15-May-97
- ------------------------------------------------------------------------------
6544 Up And Cummers #17 138:14 1995 Randy West Prod 15-May-97
- ------------------------------------------------------------------------------
6543 Up And Cummers #18 137:11 1995 Randy West Prod 15-May-97
- ------------------------------------------------------------------------------
6542 Up And Cummers #19 130:32 1995 Randy West Prod 15-May-97
- ------------------------------------------------------------------------------
6536 Up And Cummers #33 138:03 1996 Randy West Prod 15-May-97
- ------------------------------------------------------------------------------
3489 Up And Cummers 6 139:37 1994 27-May-96
- ------------------------------------------------------------------------------
4262 Up and Cumming Executive 88:23 1993 Total Video Prod 14-Jan-97
- ------------------------------------------------------------------------------
1783 Up The Ying Yang 89:36 1994 Coast To Coast 20-Jan-95
- ------------------------------------------------------------------------------
4771 Up The Ying Yang #02 82:04 1995 Coast To Coast 24-Sep-96
- ------------------------------------------------------------------------------
1667 Up To No Good 79:56 Home Video 09-Dec-94
- ------------------------------------------------------------------------------
0959 Up Up And Away 82:40
- ------------------------------------------------------------------------------
Page 97
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- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
0809 Uptown Girl 80:28 N/A
- ------------------------------------------------------------------------------
1041 Used Cars 71:12 1990 Cinderella 12-Sep-94
- ------------------------------------------------------------------------------
2080 User Friendly 70:10 1992 Video Team 18-Feb-95
- ------------------------------------------------------------------------------
3056 V.S.O.P. Upstairs And
Downtairs 60:22 1995 19-Jan-96
- ------------------------------------------------------------------------------
0971 Valerie En Septieme Ciel 76:01 Ron King 14-Sep-94
- ------------------------------------------------------------------------------
5098 Valerie Puts Out- S'offre
A Toi 95:48 1995 Digital Media 29-Nov-96
- ------------------------------------------------------------------------------
4257 Valleys Of The Moon 85:53 1991 Sin City 14-Jan-97
- ------------------------------------------------------------------------------
1658 Vanessa Maid In Manhatten 82:48
- ------------------------------------------------------------------------------
2220 Vanity 180:07 1991 Hollywood Video 01-May-95
- ------------------------------------------------------------------------------
1465 Vegas #02 73:34 1992 Cinderella 04-Nov-94
- ------------------------------------------------------------------------------
1466 Vegas #03 - Let It Ride 71:37 1990 Cinderella 04-Nov-94
- ------------------------------------------------------------------------------
1467 Vegas #04 - Joker's Wild 71:41 1990 Cinderella 04-Nov-94
- ------------------------------------------------------------------------------
1468 Vegas #05 71:33 1990 Cinderella 04-Nov-94
- ------------------------------------------------------------------------------
4258 Venditore De Sagni 93:07 24-Jul-96
- ------------------------------------------------------------------------------
1208 Venus 67:42 1994 Cinderella 05-Nov-94
- ------------------------------------------------------------------------------
1759 Venus Of The Nile 82:09 1991 Bad Girls 03-Jan-95
- ------------------------------------------------------------------------------
0587 Veronique L'Audacieuse
Hotesse 70:00 Trasocean Intern 01-Jun-94
- ------------------------------------------------------------------------------
4249 Viaggio Well Erotismo Del
Xxsecolo 81:14 1996 Ona Zee Prod. 23-Jul-96
- ------------------------------------------------------------------------------
1918 Vice Versa 72:20 1992 Fat Dog 23-Feb-95
- ------------------------------------------------------------------------------
1589 Victoria And Company 115:41 Dreamland Ent. 03-Jan-95
- ------------------------------------------------------------------------------
1018 Victoria With An A 84:28 1992 Frank Marino 07-Oct-94
- ------------------------------------------------------------------------------
1769 Victorias Secret Life 82:30 1992 Bad Girls 03-Jan-95
- ------------------------------------------------------------------------------
5191 Video Adventures of Peeping
Tom 56:06 0 The Stone Group 03-Sep-97
- ------------------------------------------------------------------------------
5024 Video Adventures Of Peeping
Tom #02 109:56 Odyssey Group 19-Nov-96
- ------------------------------------------------------------------------------
4253 Video Incontri #10 56:39 18-Jul-96
- ------------------------------------------------------------------------------
4252 Video Incontri #11 60:25 0 Midnight Prod. 31-Dec-95
- ------------------------------------------------------------------------------
4251 Video Incontri #12 56:52 1991 31-Dec-95
- ------------------------------------------------------------------------------
4256 Video Incontri #18 59:16 N/A 26-Jul-96
- ------------------------------------------------------------------------------
4497 Video Incontri Privati #01 58:38 0 01-Aug-96
- ------------------------------------------------------------------------------
4498 Video Incontri Privati #02 60:49 0 01-Aug-96
- ------------------------------------------------------------------------------
4422 Video Incontri Privati #03 60:49 0 26-Jul-96
- ------------------------------------------------------------------------------
4491 Video Incontri Privati #04 59:29 01-Aug-96
- ------------------------------------------------------------------------------
4496 Video Incontri Privati #06 61:39 01-Aug-96
- ------------------------------------------------------------------------------
4250 Video Incontri Privati #07 56:54 1995 N/A 09-Apr-97
- ------------------------------------------------------------------------------
3072 Video Incontri Privati #18 59:15 1994 Antares 31-Jan-96
- ------------------------------------------------------------------------------
2463 Video Virgins #18 119:30 1995 New Sensations 30-Aug-95
- ------------------------------------------------------------------------------
6584 Video Virgins #20 111:12 1995 Plush Ent./New S; 07-Jun-97
- ------------------------------------------------------------------------------
6573 Video Virgins #28 112:38 1996 Plush Ent./New S 05-Jun-97
- ------------------------------------------------------------------------------
6574 Video Virgins #29 112:43 1996 Plush Ent./New S, 05-Jun-97
- ------------------------------------------------------------------------------
6578 Video Virgins #31 110:23 1996 Plush Ent./New S 05-Jun-97
- ------------------------------------------------------------------------------
6579 Video Virgins #32 117:30 1996 Plush Ent./New S 05-Jun-97
- ------------------------------------------------------------------------------
6580 Video Virgins #33 118:32 1996 Plush Ent./New S 05-Jun-97
- ------------------------------------------------------------------------------
1737 Video Voyeur 86:20 1988 Video Team 30-Jan-95
- ------------------------------------------------------------------------------
1820 Video Voyeur #02 80:17 1988 Video Team 20-Jan-95
- ------------------------------------------------------------------------------
Page 98
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MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
2540 Vieilles Salopes A Defoncer 75:01 1990 Europix 30-Aug-95
- ------------------------------------------------------------------------------
5050 Viet - Tran 74:00 LBO entertainme 21-Nov-96
- ------------------------------------------------------------------------------
3120 Viola Video 103-Anal
Detective 87:59 1995 Pearl Necklace V 29-Feb-96
- ------------------------------------------------------------------------------
3121 Viola Video 104 - Miss
France To Visit 83:22 1995 Pearl Necklace V 29-Feb-96
- ------------------------------------------------------------------------------
XXX Violation De Domiciles 0
- ------------------------------------------------------------------------------
3059 VIP Magazine #01 119:02 0 19-Jan-96
- ------------------------------------------------------------------------------
2777 VIP Magazine #02 - Made
In Sweden 110:50 0 Scan VIP 11-Dec-95
- ------------------------------------------------------------------------------
4254 Virgin Busters 73:33 31-Dec-95
- ------------------------------------------------------------------------------
3780 Virgin Killers - The
Fresh Kill - 80:07 0 03-Jul-96
- ------------------------------------------------------------------------------
3615 Virgin Killers - The
Killing Spree - 77:42 1995 02-Jul-96
- ------------------------------------------------------------------------------
1550 Virgin Spring 69:15 1991 Cinderella 18-Nov-94
- ------------------------------------------------------------------------------
2457 Virgin**CPPA 77:24 1993
- ------------------------------------------------------------------------------
0142 Virtual Reality 71:30 1993 Emerald City Ent. 14-Jun-94
- ------------------------------------------------------------------------------
3164 Visions 84:56 1991 Erotic Angel/Mid, 25-Mar-96
- ------------------------------------------------------------------------------
3162 Visions #02 72:34 1995 Jaro Video 25-Mar-96
- ------------------------------------------------------------------------------
4701 Visions Of Desire 77:08 1993 Hollywood Video 05-Sep-96
- ------------------------------------------------------------------------------
3210 Visions Of Desire Duplicate 75:56 1994 Dreamland Ent. 13-Mar-96
- ------------------------------------------------------------------------------
5021 Visions Of Seduction 80:37 1994 Sin City 19-Nov-96
- ------------------------------------------------------------------------------
4490 Viziose 87:42 1995 Ona Zee Prod. 01-Aug-96
- ------------------------------------------------------------------------------
1577 Volupte Anale 86:12 1993 Movie Star 09-Dec-94
- ------------------------------------------------------------------------------
3114 Voodoo Lust 97:52 1989 Pure Class Prod. 16-Feb-96
- ------------------------------------------------------------------------------
1655 Voyeur 72:55 1985 Night Magic Vide 20-Dec-94
- ------------------------------------------------------------------------------
4820 Voyeur #02 121:53 1994 Evil Angel/John L 07-Oct-96
- ------------------------------------------------------------------------------
4815 Voyeur #04 126:04 1995 Evil Angel/John L 07-Oct-96
- ------------------------------------------------------------------------------
4817 Voyeur #05 122:51 1995 Evil Angel/John L 07-Oct-96
- ------------------------------------------------------------------------------
0914 Voyeur Video 68:41 1992 Zane Ent. 25-Aug-94
- ------------------------------------------------------------------------------
2653 VR 69 83:08 1995 05-Oct-95
- ------------------------------------------------------------------------------
2151 WACS 66:29 1992 Plum Prod. 23-Sep-94
- ------------------------------------------------------------------------------
4278 Wad gobblers #03 72:12 1995 Glitz Video 31-Dec-95
- ------------------------------------------------------------------------------
3781 Wadgobblers #01 74:07 0 03-Jul-96
- ------------------------------------------------------------------------------
4007 Wadgobblers #02 74:02 16-Jul-96
- ------------------------------------------------------------------------------
4270 Wadgobblers #04 72:49 Glitz Video 31-Dec-95
- ------------------------------------------------------------------------------
4272 Wadgobblers #05 73:01 1993 Glitz Video 31-Dec-95
- ------------------------------------------------------------------------------
4273 Wadgobblers #06 74:24 Glitz Video 31-Dec-95
- ------------------------------------------------------------------------------
4269 Wadgobblers #07 75:40 Glitz Video 31-Dec-95
- ------------------------------------------------------------------------------
4279 Wadgobblers #08 74:12 Glitz Video 31-Dec-95
- ------------------------------------------------------------------------------
4271 Wadgobblers #09 73:23 1993 Glitz Video 31-Dec-95
- ------------------------------------------------------------------------------
4275 Wadgobblers #10 71:25 Glitz Video 31-Dec-95
- ------------------------------------------------------------------------------
4387 Wadgobblers #11 69:13 26-Jul-96
- ------------------------------------------------------------------------------
4276 Wadgobblers #12 71:48 1995 Glitz Video 31-Dec-95
- ------------------------------------------------------------------------------
4277 Wadgobblers #13 70:24 1995 Glitz Video 31-Dec-95
- ------------------------------------------------------------------------------
1209 Walk On The Wild Side 80:25 1988 Cinderella 05-Nov-94
- ------------------------------------------------------------------------------
0810 Walking Small 72:19 1992 Zane Ent. 01-Jun-94
- ------------------------------------------------------------------------------
1899 Wall To Wall #22 115:25 1991 Western Visuals 11-Jan-95
- ------------------------------------------------------------------------------
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- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
1337 Wall To Wall #23 120:34 Western Visuals 27-Oct-94
- ------------------------------------------------------------------------------
1733 Wall To Wall #24 114:41 1991 Western Visuals 11-Jan-95
- ------------------------------------------------------------------------------
1732 Wall To Wall #26 116:30 1991 Western Visuals 11-Jan-95
- ------------------------------------------------------------------------------
1728 Wall To Wall #27 118:49 1991
- ------------------------------------------------------------------------------
1726 Wall To Wall #30 115:07
- ------------------------------------------------------------------------------
1724 Wall To Wall #34 116:35 1991 Western Visuals 11-Jan-95
- ------------------------------------------------------------------------------
1734 Wall To Wall #35 103:54 1991 Western Visuals 11-Jan-95
- ------------------------------------------------------------------------------
1738 Wall To Wall #36 111:12 1991 Western Visuals 11-Jan-95
- ------------------------------------------------------------------------------
1740 Wall To Wall #37 109:33 1991 Western Visuals 11-Jan-95
- ------------------------------------------------------------------------------
1739 Wall To Wall #38 110:11 1991 Western Visuals 11-Jan-95
- ------------------------------------------------------------------------------
1742 Wall To Wall #39 115:43 1991 Western Visuals 11-Jan-95
- ------------------------------------------------------------------------------
1729 Wall To Wall #40 115:05 1991 Western Visuals 11-Jan-95
- ------------------------------------------------------------------------------
0597 War Of The Hoses 74:16 Nightlight Expres 01-Jun-94
- ------------------------------------------------------------------------------
3461 Warm And Pink 78:27 1995 Frank Marino 24-May-96
- ------------------------------------------------------------------------------
6632 Warsaw Wadd Gobblers 81:02 1995 Plush Ent./Tour d 25-Jul-97
- ------------------------------------------------------------------------------
1637 Washington DP 82:05 0 Jalapeno Pepper 19-Dec-94
- ------------------------------------------------------------------------------
5080 Water Worked 79:51 1995 Al Borda Product 08-Jan-97
- ------------------------------------------------------------------------------
0958 Waterbabies 81:20 1992 Coast To Coast 14-Aug-94
- ------------------------------------------------------------------------------
0964 Waterbabies #02 74:01 1993 Coast To Coast 14-Aug-94
- ------------------------------------------------------------------------------
5002 Waves Of Passion 70:59 1993 N/A 24-Feb-97
- ------------------------------------------------------------------------------
1201 We're No Angels 82:11 1991 Cinderella 05-Nov-94
- ------------------------------------------------------------------------------
2753 Wedding Night 82:29 1991 Scand VIP Video 05-Dec-95
- ------------------------------------------------------------------------------
2789 Wee Wee's Big Misadventure 71:30 1991 FHV/Sunshine 29-Nov-95
- ------------------------------------------------------------------------------
6032 Weekend In Campagna 80:36 Casanova Prod. 28-Jan-97
- ------------------------------------------------------------------------------
3041 Welcome To The Hotel
Transylvania 72:53 1990 Four Play 31-Jan-96
- ------------------------------------------------------------------------------
3042 Welcome To The Hotel
Transylvania #0 72:53 1990 Four Play 31-Jan-96
- ------------------------------------------------------------------------------
4350 Welcome to the Jungle 74:38 1989 Fantazy Ent 26-Jul-96
- ------------------------------------------------------------------------------
0923 Welcum To My Face 83:05 1991 Zane Ent. 25-Aug-94
- ------------------------------------------------------------------------------
XXX Wenches 0 CDI/Video Team
- ------------------------------------------------------------------------------
1248 West Side Tori 85:27 1990 Night Magic Vide 27-Oct-94
- ------------------------------------------------------------------------------
2319 Western Nights 107:08 1994 Wicked Pictures 01-May-95
- ------------------------------------------------------------------------------
6157 Wet 'n' Slippery 87:40 1996 Western Visuals 24-Feb-97
- ------------------------------------------------------------------------------
6195 Wet And Wicked 73:07 1994 Pretty Kitty Prod 21-Feb-97
- ------------------------------------------------------------------------------
6197 Wet Daydreams 67:40 1995 X-Citement Video 24-Feb-97
- ------------------------------------------------------------------------------
4355 Wet Dream on Elm Street 84:46 1990 Fantazy Ent 26-Jul-96
- ------------------------------------------------------------------------------
0843 Wet Fingers 74:20 Coast To Coast 06-May-94
- ------------------------------------------------------------------------------
1697 Wet Memories 80:56 1993 Western Visuals 20-Dec-94
- ------------------------------------------------------------------------------
4450 Wet N' Wicked 60:49 1995 Bella Pictures 25-Jul-96
- ------------------------------------------------------------------------------
4360 Wet Nurses 77:22 1994 CDI/S.Canterbur 26-Jul-96
- ------------------------------------------------------------------------------
4541 Wet Nurses #02 83:13 1996 CDI/S.Canterbur 09-Aug-96
- ------------------------------------------------------------------------------
1561 Wet Paint 76:49 1990 Dreamland Ent. 03-Jan-95
- ------------------------------------------------------------------------------
2093 Wet Tails 63:32 1989 01-May-95
- ------------------------------------------------------------------------------
4405 Whackers 85:06 1995 26-Jul-96
- ------------------------------------------------------------------------------
6276 What Are You In The Dark? 88:42 1996 Klimaxxx Prod. 04-Apr-97
- ------------------------------------------------------------------------------
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- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
2324 What Got Grandpa
Hard / Smokers 73:49 1994 Global 24-Apr-96
- ------------------------------------------------------------------------------
2973 What's Love Got To
Do With It? 77:15 1989 Western Visuals 31-Jan-96
- ------------------------------------------------------------------------------
6101 What's That Smell? 69:39 1996
- ------------------------------------------------------------------------------
6206 What's That Stink? 71:19 1996 Al Borda Video 04-Apr-97
- ------------------------------------------------------------------------------
3077 When Love Comes To Town 72:45 1989 Lascaux & Pink L 19-Jan-96
- ------------------------------------------------------------------------------
0073 When Sex Was Dirty #01 79:15 1991 Filmco Releasing 01-Jun-94
- ------------------------------------------------------------------------------
0065 When Sex Was Dirty #02 81:53 1991
- ------------------------------------------------------------------------------
0069 When Sex Was Dirty #03 68:50 1991 Loretta Sterling 01-Jun-94
- ------------------------------------------------------------------------------
0070 When Sex Was Dirty #04 70:56 1991 Loretta Sterling 01-Jun-94
- ------------------------------------------------------------------------------
0071 When Sex Was Dirty #05 70:14 1991 Loretta Sterling 01-Jun-94
- ------------------------------------------------------------------------------
0074 When Sex Was Dirty #06 69:24 1991 Loretta Sterling 01-Jun-94
- ------------------------------------------------------------------------------
4765 Where The Girls Play 84:42 1992 Coast To Coast 24-Sep-96
- ------------------------------------------------------------------------------
4306 Where There's Smoke
There's Fire 69:57 1994 Fantazy Ent 25-Jul-96
- ------------------------------------------------------------------------------
6613 While The Cats Away 73:00 1996 Pussy Juice Prod 19-Jun-97
- ------------------------------------------------------------------------------
6582 Whispered Lies 119:22 1995 Ona Zee/L.B.O.E 07-Jun-97
- ------------------------------------------------------------------------------
2517 Whispered Lies 119:14 1994
- ------------------------------------------------------------------------------
4780 Whispers 80:26 1992 Hollywood Video 07-Oct-96
- ------------------------------------------------------------------------------
0944 White Anglo Saxon
Prostitute 71:29 1992 Coast To Coast 14 Aug-94
- ------------------------------------------------------------------------------
4511 White Bitches In Heat 66:39 1995 01-Aug-96
- ------------------------------------------------------------------------------
4266 White Boys & Black Bitches 72:47 1995 Rose Bud Prod. 10-Feb-97
- ------------------------------------------------------------------------------
1943 White Chicks Can't Hump 71:59 1993 Fat Dog 23-Feb-95
- ------------------------------------------------------------------------------
2386 White Men Can't Hump 68:57 1993 Coast To Coast 20-Jun-95
- ------------------------------------------------------------------------------
4789 Who Framed Ginger Grant? 72:40 1989 Coast To Coast 17-Oct-96
- ------------------------------------------------------------------------------
4354 Who Reamed Rosie Rabbit 73:25 1989 Fantazy Ent 26-Jul-96
- ------------------------------------------------------------------------------
4303 Who Reamed Rosie Rabbit #02 75:09 1989 Fantazy Ent 25-Jul-96
- ------------------------------------------------------------------------------
2373 Who Shaved Lynn Lemay 82:35 1989 Executive Video 17-Jul-95
- ------------------------------------------------------------------------------
2371 Who Shaved Trinity Loren 81:05 1988 Executive Video 17-Jul-95
- ------------------------------------------------------------------------------
2899 Whomp! There She Is! 88:55 1993 Avica 16-Feb-96
- ------------------------------------------------------------------------------
5092 Whore'n 112:40 1996 Al Borda Video 08-Jan-97
- ------------------------------------------------------------------------------
6192 Whore-Derves 84:58 1996 Outlaw Productio 21-Feb-97
- ------------------------------------------------------------------------------
4274 Whoreo 79:16 1995 Bella Pictures 31-Dec-95
- ------------------------------------------------------------------------------
4926 Why Gents Prefer Blondes 86:54 Hollywood Video 14-Nov-96
- ------------------------------------------------------------------------------
1023 Wicked 70:25 1992 07-Oct-94
- ------------------------------------------------------------------------------
2660 Wicked As She Seems 84:22 1994 05-Oct-95
- ------------------------------------------------------------------------------
1006 Wicked Fasination 70:28 1991 CB's Private Coll 12-Sep-94
- ------------------------------------------------------------------------------
3227 Wicked One 85:45 1995 Wicked Pictures 23-Apr-96
- ------------------------------------------------------------------------------
4726 Wicked Sensations 78:31 1980 CDI/Dreamland 07-Oct-96
- ------------------------------------------------------------------------------
1567 Wicked Sensations #02 83:25 1989 Dreamland Ent. 03-Jan-95
- ------------------------------------------------------------------------------
2659 Wicked Ways #01 102:18 1994 Jams Prod. 05-Oct-95
- ------------------------------------------------------------------------------
3450 Wicked Ways #02 109:49 1994 Wicked Pictures 06-May-96
- ------------------------------------------------------------------------------
2351 Wicked Whispers 79:18 1994 Cal Vista 21-Jul-95
- ------------------------------------------------------------------------------
3452 Wicked Wish 73:09 1993 Legend 06-May-96
- ------------------------------------------------------------------------------
4569 Wicked Woman 79:37 1993 Hollywood Video 23-Aug-96
- ------------------------------------------------------------------------------
2017 Wild & Wicked #02 82:02 1991 Video Team 02-Mar-95
- ------------------------------------------------------------------------------
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- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
2016 Wild & Wicked #03 73:16 1993 Video Team 02-Mar-95
- ------------------------------------------------------------------------------
1874 Wild & Wicked #04 61:38 1994 Video Team 30-Jan-95
- ------------------------------------------------------------------------------
4617 Wild & Wicked #05 75:57 1995 CDI/Video Team 30-Aug-96
- ------------------------------------------------------------------------------
4619 Wild & Wicked #06-Caught
Looking 73:19 1995 CDI/Video Team 30-Aug-96
- ------------------------------------------------------------------------------
3579 Wild Cum Craving Girls 108:31 Odyssey Group 25-Jul-96
- ------------------------------------------------------------------------------
3586 Wild Cum Craving
Girls #02 116:32 Odyssey Group 26-Jul-96
- ------------------------------------------------------------------------------
3604 Wild Cum Craving
Girls #03 111:11 1992 n 25-Jul-96
- ------------------------------------------------------------------------------
3554 Wild Cum Craving
Girls #04 115:31 06-Sep-96
- ------------------------------------------------------------------------------
0188 Wild Fire 77:03 1990 EVN - Erotic Vide 14-Jun-94
- ------------------------------------------------------------------------------
1866 Wild In Motion 75:18 1993 11-Jan-95
- ------------------------------------------------------------------------------
0666 Wild Innocence 74:07 1993
- ------------------------------------------------------------------------------
1016 Wild Innocence 74:07 1992 Pleasure Prod. 07-Oct-94
- ------------------------------------------------------------------------------
4762 Wild Ones 86:00 1996 Coast To Coast 20-Sep-96
- ------------------------------------------------------------------------------
1307 Wild Thing 70:10 1991 Cinderella 17-Nov-94
- ------------------------------------------------------------------------------
2346 Wild Things #04 73:36 1994 Cal Vista 27-Jun-95
- ------------------------------------------------------------------------------
4374 Wild Weekend 87:20 1984 Hollywood Video 23-Jul-96
- ------------------------------------------------------------------------------
6237 Wild Widow 95:44 0 Nitro 03-Mar-97
- ------------------------------------------------------------------------------
0324 Wild Wild Chest 83:45 1990 Hollywood Video 14-Jun-94
- ------------------------------------------------------------------------------
1790 Wild Women 115:06 1990 Bad Girl Video 03-Jan-95
- ------------------------------------------------------------------------------
2654 Wildcats 73:22 1995 Wicked Pictures 05-Oct-95
- ------------------------------------------------------------------------------
5176C Wilder At Heart 00:00 Plush Ent. 03-Dec-96
- ------------------------------------------------------------------------------
2444 Wildfire 67:13 1990 Erotic Video Net 22-Jun-95
- ------------------------------------------------------------------------------
2805 Willie Wanker And The
Fudge Making F 82:04 1994 Cinderella 29-Nov-95
- ------------------------------------------------------------------------------
3169 Willie Wanker at The
Sushi Bar 85:25 1995 Fat Dog 25-Mar-96
- ------------------------------------------------------------------------------
3012 Winter Heat 71:31 1994 Midnight/Sex Kitt 03-Jan-96
- ------------------------------------------------------------------------------
2132 Wire Desire 75:17 1990 01-May-95
- ------------------------------------------------------------------------------
5263 Witches are Bitches**
Content Review 81:59
- ------------------------------------------------------------------------------
1384 Witching Hour 76:06 Forbidden 03-Jan-95
- ------------------------------------------------------------------------------
3090 With A Wiggle In Her Walk 80:33 0 Western Visuals 31-Jan-96
- ------------------------------------------------------------------------------
0295 With Love From Ashlyn 85:29 1991 Hollywood Video 14-Jun-94
- ------------------------------------------------------------------------------
4368 With Love From Ginger 83:35 Hollywood Video 26-Jul-96
- ------------------------------------------------------------------------------
4367 With Love From Susan 87:15 1990 Hollywood Video 26-Jul-96
- ------------------------------------------------------------------------------
2096 With The Devil In Her Rear 79:44 1992
- ------------------------------------------------------------------------------
2185 Within and Without You 77:34 1993 Wicked Pictures 24-Apr-95
- ------------------------------------------------------------------------------
2844 Witness For The
Penetration #01 75:35 1994 Pepper Prod. 29-Nov-95
- ------------------------------------------------------------------------------
2843 Witness For The
Penetration #02 76:35 1994 Pepper Prod. 29-Nov-95
- ------------------------------------------------------------------------------
4460 Wok & Roll 72:02 1993 EVN (CDI) 25-Jul-96
- ------------------------------------------------------------------------------
5313C Woman In Love 0
- ------------------------------------------------------------------------------
6666 Woman Of Means 80:50
- ------------------------------------------------------------------------------
0298 Women In Need 85:05 Hollywood Video 14-Jun-94
- ------------------------------------------------------------------------------
2049 Women Who Love Men And
Men Who L 76:12 1994 Fat Dog 23-Feb-95
- ------------------------------------------------------------------------------
0827 Wonderlust 0
- ------------------------------------------------------------------------------
6100 Wood Clinic 79:00 1995 VPN 24-Feb-97
- ------------------------------------------------------------------------------
2255 Working Stiffs 71:25 1993 Fat Dog 02-Jun-95
- ------------------------------------------------------------------------------
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- ------------------------------------------------------------------------------
MOVIE # TITLE RUN TIM YEAR PRODUCER ENTRY DATE
- ------------------------------------------------------------------------------
2474 World Cup - Cicciolina e
Moana "Mondi 79:24 1994 Tibbins Internati 08-Sep-95
- ------------------------------------------------------------------------------
1890 Worst Porn Movie Ever Made 74:55 1994 05-Jan-95
- ------------------------------------------------------------------------------
0160 Worthy Women 80:43 1990 All Worlds Video 14-Jun-94
- ------------------------------------------------------------------------------
2941 WPINK TV #02 82:11 1986 Paradise Visuals 19-Jan-96
- ------------------------------------------------------------------------------
2146 WPINK TV #04 74:16 1993 Patti Productions 28-Feb-95
- ------------------------------------------------------------------------------
0895 WPINK TV #05 75:00 1993
- ------------------------------------------------------------------------------
6668 Writers Block 79:49 1997 Klimaxxx Prod. 28-Aug-97
- ------------------------------------------------------------------------------
1913 Wrong Arm Of The Law 84:05 1988 Zane Ent. 01-Mar-95
- ------------------------------------------------------------------------------
0824 Wrong Women 73:20 1991 Legend Video 23-Oct-94
- ------------------------------------------------------------------------------
5247C X Dreams 86:43 1989
- ------------------------------------------------------------------------------
2133 Xcitement-The Movie 77:13 1993 01-May-95
- ------------------------------------------------------------------------------
4921 XXX Master 80:20 1996 Tight Ends Produ 13-Nov-96
- ------------------------------------------------------------------------------
2070 Yank Fest 70:47 1994 Fat Dog 23-Feb-95
- ------------------------------------------------------------------------------
2358 Yank My Doodle, It's A
Dandy 84:23 1985 Gold Medal Editi 10-Jul-95
- ------------------------------------------------------------------------------
3026 Yankee Rose 76:08 1995 Legend 03-Jan-96
- ------------------------------------------------------------------------------
2411 Yankee Seduction**Rape 91:21 1985
- ------------------------------------------------------------------------------
2163 Yellow Fever 88:13 1984 01-May-95
- ------------------------------------------------------------------------------
2056 Yellow Serrano #03 113:08 1993 Pepper Prod. 23-Feb-95
- ------------------------------------------------------------------------------
2064 Yellow Serrano #04 113:04 1993 Pepper Prod. 23-Feb-95
- ------------------------------------------------------------------------------
2065 Yellow Serrano #05 114:07 1994 Pepper Prod. 23-Feb-95
- ------------------------------------------------------------------------------
2821 Yo, Yo, Yo 86:58 1994 Heat Wave Entert 29-Nov-95
- ------------------------------------------------------------------------------
6063 You Assed For It 74:48 0 Notorious Produ 28-Jan-97
- ------------------------------------------------------------------------------
0927 You Bet Your Buns 90:56 1993 Zane Ent. 16-Sep-94
- ------------------------------------------------------------------------------
4621 You Go, Girl 84:24 1995 CDI/Video Team 30-Aug-96
- ------------------------------------------------------------------------------
4454 Young & Innocent 0 0 Hollywood Video
- ------------------------------------------------------------------------------
4471 Young & Naughty *CPPA 0 0 Hollywood Video
- ------------------------------------------------------------------------------
2478 Young And Restless 72:13 1983 08-Sep-95
- ------------------------------------------------------------------------------
6155 Young Buns #02 00:00
- ------------------------------------------------------------------------------
4331 Young Girls No. 1 0 0 CDI
- ------------------------------------------------------------------------------
6631 Young Nurses in Lust 76:51 1994 Ona Zee 25-Jul-97
- ------------------------------------------------------------------------------
2541 Young Nurses In Lust**Cppa 76:47 1994
- ------------------------------------------------------------------------------
4280 Yum, Yum, I Love Cum 111:27 1995 Blue Coral Prod. 30-Jun-96
- ------------------------------------------------------------------------------
0811 Zane's World 75:09 1992 August West 23-Oct-94
- ------------------------------------------------------------------------------
4957 Zeduzione - Seduction
Italiano 73:46 0 Digital Media 05-Nov-96
- ------------------------------------------------------------------------------
4281 Zena's Gang Bang 0 0 Hollywood Video
- ------------------------------------------------------------------------------
Page 103
<PAGE>
SCHEDULE 7.2(a)
COMBINED FINANCIAL STATEMENTS
[attached]
<PAGE>
[LETTERHEAD]
To the Director of
1043133 Ontario Inc.
Fifth Dimension Communication (Barbados) Inc.
Merlin Sierra Inc.
250 Don Reid Drive
Ottawa, Ontario
K1H 8P5
As requested by the directors of 1043133 Ontario Inc., Fifth Dimension
Communications (Barbados) Inc. and Merlin Sierra Inc., we report that
adjusted pre-tax income for the year ended March 31, 1997 was $2,755,297. The
determination of adjusted pre-tax income is set out in the attached schedule.
The adjustments to the pre-tax income reported in the audited combined
financial statements of the three companies have been made in accordance with
the letter of intent between New Frontier Media, Inc. and 1043133 Ontario
Inc., Fifth Dimension Communications (Barbados) Inc., and Merlin Sierra Inc.
dated April 14, 1997 except for items o), p), q), r), s) and t) which were not
specifically listed.
Our audit of the combined financial statements for the year ended March 31,
1997 was not directed to the determination of adjusted pre-tax income or the
specific adjustments to reported pre-tax income on the combined financial
statements. We also have not audited the companies financial statements or
the period subsequent to March 31, 1997. We have not performed an audit of
and, accordingly, do not express an opinion on the amount of adjusted pre-tax
income referred to in the preceding paragraph. The compliance of the
adjustments with the criteria established in the letter of intent is the
responsibility of management of the companies. Our procedures were limited
to the agreement or the price adjustments to the general ledger accounts of
the companies.
It is understood that this report is to be used solely for computing the
purchase price pursuant to the aforementioned letter of intent and is not to
be referred to or distributed to any person not a member of management of
1043133 Ontario Inc., Fifth Dimension Communications (Barbados) Inc., Merlin
Sierra Inc. or New Frontier Media Inc.
If you have any questions please do not hesitate to contact us.
Yours sincerely,
ERNST & YOUNG
- ------------------------------
S.R. (Steve) Pittman/
Mylene N. Levac-Wolf
<PAGE>
[LETTERHEAD]
FIFTH DIMENSION COMMUNICATIONS (BARBADOS) INC.
1043313 ONTARIO INC., AND MERLIN SIERRA INC.
<TABLE>
List of Adjustments to net income from operations before tax: 1997 1996
---- ----
<S> <C> <C> <C>
(a) add-back of salaries and benefits paid to Douglas Duncan,
Stuart Duncan, Dan Bender, and Nina Frid which in the
aggregate are in excess of $200,000 CDN; 234,031 96,712
(b) add-back of salaries and benefits, and termination costs
related to Judith Christou, Richard Latham and Nina Frid,
and termination costs related to other employees; 84,783 33,811
(c) an adjustment so that the average monthly cost of movies
is reduced to US $75,000; 41,888 0
(d) add-back of amounts paid to VTV and expenses in the
accounts of an Adult Company; 0 0
(e) add-back of amounts paid to lawyers in connection
with this and previous acquisitions and proposed
acquisitions of or by the Adult Companies or any of them
(including the acquisition of Merlin Sierra Inc.); 21,294 5,356
(f) add-back of the amount (if any) by which the transponder
costs incurred in January 1997 exceeded the average monthly
transponder costs over the preceding 3 months; 0 0
(g) add-back of promotional, entertainment and other costs
related to the corporate suite at the Corel
Centre in Ottawa; 78,980 18,795
(h) add-back of payments made to Jeff Gold, Galaxy
Communications International Inc. and Surmount Inc.
which payments have been expensed in the accounts
of 5DB; 305,982 281,923
(i) add-back of all costs related to the Valley Center office
including rent paid to Dan Bender and salaries and
termination allowances paid to staff of such office; 415,727 150,008
(j) add-back of automobile lease payments made on behalf of
Douglas Duncan and Stuart Duncan; 5,670 0
(k) add-back of payments made to RocketSoft Inc. for services
provided by Denis Dagernais; 17,182 0
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C> <C>
(l) add-back of interest paid on Best Bank loan (regarding
Merlin Sierra Inc.); 10,848 2,820
(m) add-back of payments made to On-line Enterprises and
Jack Michaelson; 9,000 0
(n) add-back of AT&T telephone penalty for not meeting
contractual commitment; 0 0
(o) add-back of write off of advances to parent companies
considered uncollectible for audit purposes; 20,141 91,217
(p) add-back of amortization of lump sum payments made to
Starcom or 401-1 January, 1995 and capitalized for audit
purposes; 202,899 243,478
(q) Loss on investment in shares; 220,000 0
(r) Amounts paid to Fred Pantalone during his training period
with Judith Christou, as well as termination costs; 6,317 0
(s) Other litigation costs; and 80,057 42,283
(t) Other expenses incurred in connection with this and
previous acquisitions and proposed acquisitions of or by
the Adult Companies or any of them (including the
acquisition of Merlin Sierra Inc.). 1,349 7,934
--------- ---------
Total Adjustments 1,756,148 974,337
Pre-tax income to March 31 999,148 2,007,640
--------- ---------
Adjusted pre-tax income to March 31 2,755,296 2,981,977
--------- ---------
--------- ---------
</TABLE>
<PAGE>
---------------------------------------------
COMBINED FINANCIAL STATEMENTS
FIFTH DIMENSION
COMMUNICATIONS (BARBADOS) INC.,
1043133 ONTARIO INC. AND
MERLIN SIERRA INC.
March 31, 1997 and 1996
[LOGO]
<PAGE>
- ------------------------------------------------------------------------------
AUDITORS' REPORT
- ------------------------------------------------------------------------------
To the Directors of
Fifth Dimension Communications (Barbados) Inc.,
1043133 Ontario Inc. and Merlin Sierra Inc,
We have audited the combined balance sheet of Fifth Dimension Communications
(Barbados) Inc., 1043133 Ontario Inc. and Merlin Sierra Inc. as at March 31,
1997 and 1996 and the combined statements of income and retained earnings and
cash flows for the year then ended. These combined financial statements are
the responsibility of the companies' management. Our responsibility is to
express an opinion on these combined financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform an audit to
obtain reasonable assurance whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation.
In our opinion, these combined financial statements present fairly, in all
material respects, the financial position of the companies as at March 31,
1997 and 1996 and the results of their operations and the changes in their
financial position for the years then ended in accordance with generally
accepted accounting principles accepted in the United States.
ERNST & YOUNG
Ottawa, Canada, -----------------------------------
June 27, 1997. Chartered Accountants
<PAGE>
- --------------------------------------------------------------------------------
Fifth Dimension Communications (Barbados) Inc,
1043133 Ontario Inc., Merlin Sierra Inc. [NOTE 1]
COMBINED BALANCE SHEETS
- --------------------------------------------------------------------------------
As at March 31
1997 1996
$ $
- --------------------------------------------------------------------------------
[U.S. DOLLARS]
ASSETS
Current
Cash 642,466 615,559
Accounts receivable - net allowance for doubtful
accounts of $1,450 (1996 - $59,530)[NOTE 6] 3,014,470 2,325,217
Film exhibition rights 525,765 651,442
Inventory -- 11,409
Transponder deposits 200,000 150,000
Deferred income taxes -- 71,500
Prepaid expenses 282,883 623,756
- --------------------------------------------------------------------------------
4,665,584 4,448,883
Non-current portion of film exhibition rights 222,566 11,493
Restricted investments - at cost [NOTE 3] 691,492 825,449
Investment in shares -- 220,000
Capital assets - net (NOTE 4) 348,463 400,259
- --------------------------------------------------------------------------------
5,928,105 5,906,084
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Bank loan (NOTE 5] 35,128 98,958
Accounts payable and accrued charges [NOTE 6] 1,481,055 1,766,385
Income taxes payable [NOTE 10] 382,082 408,744
Deferred subscription revenue 1,720,810 2,075,337
- --------------------------------------------------------------------------------
3,619,075 4,349,424
- --------------------------------------------------------------------------------
Shareholder's equity
Capital stock [NOTE 8] 272 272
Retained earnings 2,308,758 1,556,388
- --------------------------------------------------------------------------------
2,309,030 1,556,660
- --------------------------------------------------------------------------------
5,928,105 5,906,084
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SEE ACCOMPANYING NOTES
<PAGE>
- --------------------------------------------------------------------------------
Fifth Dimension Communications (Barbados) Inc,
1043133 Ontario Inc,, Merlin Sierra Inc,
COMBINED STATEMENTS OF INCOME
AND RETAINED EARNINGS
- --------------------------------------------------------------------------------
Year ended March 31
1997 1996
$ $
- --------------------------------------------------------------------------------
[U.S. DOLLARS]
Sales [NOTE 6] 15,044,139 12,223,731
Cost of sales [NOTE 6] 9,560,847 6,317,438
- --------------------------------------------------------------------------------
Gross profit 5,483,292 5,906,293
Expenses - schedule [NOTE 6] 4,264,144 3,898,653
- --------------------------------------------------------------------------------
Net income from operations 1,219,148 2,007,640
Loss on investment in shares 220,000 --
- --------------------------------------------------------------------------------
999,148 2,007,640
- --------------------------------------------------------------------------------
Provision for (recovery of) income taxes
- Current 30,350 (113,563)
- Deferred 71,500 (71,500)
- --------------------------------------------------------------------------------
101,850 (185,063)
- --------------------------------------------------------------------------------
Net income for the year 897,298 2,192,703
Retained earnings (deficit) - beginning of year 1,556,388 (636,315)
- --------------------------------------------------------------------------------
2,453,686 1,556,388
Dividends paid 144,928 --
- --------------------------------------------------------------------------------
Retained earnings, end of year 2,308,758 1,556,388
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SEE ACCOMPANYING NOTES
<PAGE>
- ------------------------------------------------------------------------------
Fifth Dimension Communications (Barbados) Inc.
1043133 Ontario Inc., Merlin Sierra Inc.
COMBINED STATEMENTS OF CHANGES
IN FINANCIAL POSITION
- ------------------------------------------------------------------------------
Year ended March 31
1997 1996
$ $
- ------------------------------------------------------------------------------
[U.S. Dollars]
Cash provided from (used in)
OPERATING ACTIVITIES
Net income for the year 897,298 2,192,703
Items not affecting cash -
Amortization of capital assets 120,347 144,398
Amortization of film exhibition rights 931,637 776,758
Loss on investment in shares 220,000 --
Deferred income taxes 71,500 (71,500)
Net change in operating components
of working capital (936,660) (821,184)
- ------------------------------------------------------------------------------
1,304,122 2,221,175
- ------------------------------------------------------------------------------
INVESTING ACTIVITIES
Investment in shares -- (220,000)
Purchases of capital assets (74,682) (144,108)
Sales of capital assets 6,131 11,893
Transfers of capital assets to related company -- 567,373
(Advances to) repayments from,
Teletheatre Plus Inc. 718,432 (718,432)
Purchases of film exhibition rights (1,017,033) (904,121)
(Purchase) redemption of restricted
investments 133,957 (22,135)
- ------------------------------------------------------------------------------
(233,195) (1,429,530)
- ------------------------------------------------------------------------------
FINANCING ACTIVITIES
Capital stock -- 100
Dividends (144,928) --
Net change in accounts receivable and
accounts payable, related companies (835,262) (398,661)
- ------------------------------------------------------------------------------
(980,190) (398,561)
- ------------------------------------------------------------------------------
Increase in cash equivalents for the year 90,737 393,084
Cash equivalents - beginning of year 516,601 123,517
- ------------------------------------------------------------------------------
Cash equivalents - end of year 607,338 516,601
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
Cash equivalents is comprised of:
Cash 642,466 615,559
Bank loan (35,128) (98,958)
- ------------------------------------------------------------------------------
607,338 516,601
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
See accompanying notes
<PAGE>
- ------------------------------------------------------------------------------
Fifth Dimension Communications (Barbados) Inc.
1043133 Ontario Inc., Merlin Sierra Inc.
NOTES TO FINANCIAL STATEMENTS
- ------------------------------------------------------------------------------
March 31, 1997
1. BASIS OF PRESENTATION
These financial statements present the combined assets, liabilities, revenues
and expenses of Fifth Dimension Communications (Barbados) Inc. and 1043133
Ontario Inc. for the years ended March 31, 1997 and 1996 and those of Merlin
Sierra Inc., from February 1, 1996, the date of acquisition to March 31, 1996
and the year ended March 31, 1997.
The three companies carry on complimentary but different businesses related
to the broadcasting of movies to subscribers by satellite and cable. Fifth
Dimension Communications (Barbados) Inc. is incorporated under the laws of
Barbados. 1043133 Ontario Inc. is incorporated under the laws of the Province
of Ontario in Canada and Merlin Sierra Inc. is incorporated under the laws of
the State of California in the United States. None of the three companies own
shares in the other companies.
These combined financial statements have been prepared by management in
accordance with generally accepted accounting principles in the United States
applied on a consistent basis and are presented in United States dollars. They
have been prepared in connection with a proposed sale of the combined
business of the three companies as expressed in a letter of intent dated
April 14, 1997.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the dates of financial statements and
the reported amounts of revenues and expenses during the reporting periods.
Actual results could differ from those estimates.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVENTORY
Inventory is recorded at the lower of cost and net realizable value.
FILM EXHIBITION RIGHTS
Rights to exhibit films are recorded at cost and are amortized on a
straight-line basis over the period of the contract, which is normally
twenty-four months.
INVESTMENT IN SHARES
The investment in shares, originally recorded at cost has been accounted for
by the equity basis.
1
<PAGE>
- ------------------------------------------------------------------------------
Fifth Dimension Communications (Barbados) Inc.
1043133 Ontario Inc., Merlin Sierra Inc.
NOTES TO FINANCIAL STATEMENTS
- ------------------------------------------------------------------------------
March 31, 1997
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont'd)
CAPITAL ASSETS
Capital assets are initially recorded at cost and amortized over their
estimated useful lives. Furniture and fixtures are being amortized on the
diminishing balance basis at a rate of 20% per year. Automobiles and
computers are being amortized on the diminishing balance basis at a rate of
30% per year. Leaseholds and the telephone system are amortized on a straight
line basis over the five year term of the realty lease. Software is amortized
at a 100% rate.
REVENUE RECOGNITION
Revenue from sales of television movie subscriptions from three to twelve
months is recognized on a monthly basis over the term of the subscription.
FOREIGN EXCHANGE
Assets and liabilities denominated in currencies other than United States
dollars are translated at exchange rates in effect at the balance sheet date.
Revenue and expense items are translated at average rates of exchange for the
year. Translation gains and losses are included in the determination of
earnings.
3. RESTRICTED INVESTMENTS
Restricted investments consist of short-term marketable securities and
deposits recorded at cost held as collateral by the financial institutions
providing merchant credit card service to 1043133 Ontario Inc.
4. CAPITAL ASSETS
1997 1996
----------------------- -----------------------
Accumulated Accumulated
Cost Amortization Cost Amortization
$ $ $ $
- -------------------------------------------------------------------------------
Furniture and fixtures 101,562 40,196 95,444 25,522
Leaseholds 52,004 15,042 50,470 31,528
Telephone system 105,297 44,836 100,731 398
Automobiles 55,489 36,028 55,489 20,352
Computers 298,197 149,749 271,439 100,640
Software 38,234 16,469 14,766 9,640
- -------------------------------------------------------------------------------
650,783 302,320 588,339 188,080
Accumulated amortization 302,320 188,080
- -------------------------------------------------------------------------------
348,463 400,259
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
2
<PAGE>
- -------------------------------------------------------------------------------
Fifth Dimension Communications (Barbados) Inc.
1043133 Ontario Inc., Merlin Sierra Inc.
NOTES TO FINANCIAL STATEMENTS
- -------------------------------------------------------------------------------
March 31, 1997
5. BANK LOAN
The bank loan to Merlin Sierra Inc. bears interest at 16% with monthly
principal repayments of $12,148 to June, 1997. The loan is secured by a
commercial security agreement on all assets of Merlin Sierra Inc. and
personal guarantees of certain officers of Merlin Sierra Inc.
6. RELATED COMPANY INFORMATION
The companies are related by common control.
(a) ACCOUNTS RECEIVABLE AND ACCOUNTS PAYABLE
Accounts receivable include amounts due from related companies totalling
$1,492,275 (1996 $1,764,866). Accounts payable include amount due to related
companies totalling $471,282 (1996 $860,703).
The significant balances receivable from or (payable to) related companies
are as follows:
1997 1996
$ $
- --------------------------------------------------------------------------
Fifth Dimension Communications (1996) Corporation (171,971) (698,847)
Fifth Dimension Communications Holdings, Inc. 461,599 45,880
Fifth Dimension Capital Corporation 929,854 577,517
Fifth Dimension Communications Atlantic Inc. -- 132,609
Fifth Dimension SatCom Inc. (86,408) 31,408
Turks & Caicos Island Wireless Television Ltd. (150,000) --
Fifth Dimension Technologies Inc. 60,066 (102,772)
FirstLink Communications Inc. 14,011 164,671
Teletheatre Plus Inc. note receivable -- 718,432
3
<PAGE>
- --------------------------------------------------------------------------
Fifth Dimension Communications (Barbados) Inc.
1043133 Ontario Inc., Merlin Sierra Inc.
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------
March 31, 1997
6. RELATED COMPANY INFORMATION (cont'd)
(b) Transactions
Related Party transactions are measured at exchange values which correspond
to the amount established and agreed upon by both parties.
The significant transactions entered into by 1043133 Ontario Inc. with
related companies are as follows:
Rented offices from Fifth Dimension Capital Corporation for $47,826
(1996 $47,826).
Rented satellite uplink from 841161 Ontario Limited for 562,000 (1996
562,000) and space for broadcasting facilities for $41,526 (1996
$18,141). Prepaid expenses include prepaid rent to 841161 Ontario
Limited of $118,000 (1996 Nil).
Purchased accounting and administrative services from Fifth Dimension
Capital Corporation for $166,423 (1996 $142,140).
Purchased engineering services from Fifth Dimension SatCom Inc. for
$365,836 (1996 $374,177).
Purchased full period satellite space segment from Fifth Dimension
Communications (1996) Corporation for Nil (1996 $377,570) and
occasional use satellite space segment for $53,934 (1996 Nil) and
rented broadcasting equipment for $113,000 (1996 $117,174). In
addition, a management fee of $81,500 was charged to Fifth Dimension
Communications (1996) Corporation in 1996. No amount was required to
be charged in 1997.
Purchased subscriber activation services from FirstLink Communications
Inc. for $224,275 (1996 $181,017).
Wrote down amounts receivable from NA Microsat Corporation of $20,141
(1996 $91,217) to their estimated realizable value.
Transferred equipment to Fifth Dimension Communications (1996)
Corporation for $564,161 (1996 Nil).
Rented a hospitality suite from Fifth Dimension Technologies Inc. for
$75,938 (1996 $18,750) and purchased computer equipment for $30,605
(1996 $38,287).
4
<PAGE>
- --------------------------------------------------------------------------
Fifth Dimension Communications (Barbados) Inc.
1043133 Ontario Inc., Merlin Sierra Inc.
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------
March 31, 1997
6. RELATED COMPANY INFORMATION (cont'd)
The significant transactions entered into by Merlin Sierra Inc. with related
companies are as follows:
Purchase of satellite space segment from Fifth Dimension
Communications (1996) Corporation for $1,188,000 (1996 $132,000).
The significant transactions entered into by Fifth Dimension Communications
(Barbados) Inc. with related companies are as follows.
Sold to Fifth Dimension Atlantic Communications Inc. space segment for
$76,500 (1996 $102,000).
Rented broadcasting equipment for $25,700 (1996 Nil) and purchased
occasional use satellite space segment for $80,900 (1996 Nil) from
Fifth Dimension Communications (1996) Corporation.
Purchased subscriber activation services from FirstLInk Communications
Inc. for $34,600 (1996 Nil).
Purchased engineering services from Fifth Dimension SatCom Inc. for
$92,000 (1996 Nil).
(c) Commitments
Commitments by 1043133 Ontario Inc. to related companies are as follows:
The minimum amounts of future lease payments to 841161 Ontario Limited
for office accommodation are $40,000 for each of 1998 and 1999.
The minimum amounts of future lease payments to 841161 Ontario Limited
for a satellite uplink facility are $62,000 for 1998 and $31,000 for
1999.
The minimum amounts of future lease payments to Fifth Dimension
Capital Corporation for office facilities are $48,000 for 1998 and
1999.
A commitment to purchase full period satellite space segment from
Fifth Dimension Communications (1996) Corporation for $770,000.
The minimum amount of future lease payments to Fifth Dimension
Communications (1996) Corporation are $128,070 for 1998.
A commitment to Fifth Dimension SatCom Inc. for the purchase of
engineering services in amounts which are based on usage.
5
<PAGE>
- --------------------------------------------------------------------------
Fifth Dimension Communications (Barbados) Inc.
1043133 Ontario Inc., Merlin Sierra Inc.
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------
March 31, 1997
7. THIRD PARTY COMMITMENT AND CONTINGENT LIABILITIES
Commitments of Fifth Dimension Communications (Barbados) Inc.
The Company will be committed as of July 1, 1997 for purchases of full
period space segment on three additional satellite transponders
totalling $22.5 million during the estimated five year life of the
contracts.
The Company has committed as of March 31, 1997 to purchase full period
space segment totalling $5.4 million to December 31, 1999.
Fifth Dimension Communications (Barbados) Inc. and 1043133 Ontario Inc. have
given a guarantee to the vendor in regard to the unpaid purchase price for
the acquisition of the business of Merlin Sierra Inc. for a total amount of
$850,000. The balance owing as at March 31, 1997 was $643.830 (1996 Nil)
1043133 Ontario Inc. has a commitment to purchased promotional video services
of $217,000 in each of 1998 and 1999.
8. CAPITAL STOCK
1997 1996
$ $
- -------------------------------------------------------------------------------
Authorized
Fifth Dimension Communications (Barbados) Inc. is
authorized to issue an unlimited number of common shares
and redeemable non-voting preference shares. Non-
cumulative dividends on both classes of shares may be
declared at the discretion of the directors.
1043133 Ontario Inc. is authorized to issue an unlimited
number of common shares.
Merlin Sierra Inc. is authorized to issue 50 common shares.
Issued
Fifth Dimension Communications (Barbados) Inc.
100 Common shares 100 100
1043133 Ontario Inc.
100 Common shares 72 72
Merlin Sierra Inc.
100 Common shares 100 100
- -------------------------------------------------------------------------------
272 272
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
6
<PAGE>
- -------------------------------------------------------------------------------
Fifth Dimension Communications (Barbados) Inc.
1043133 Ontario Inc., Merlin Sierra Inc.
NOTES TO FINANCIAL STATEMENTS
- -------------------------------------------------------------------------------
March 31, 1997
9. FAIR MARKET VALUE
The carrying amounts of the current assets and liabilities, restricted
investments and investment in shares approximate fair market values.
10. INCOME TAXES
The Companies have accumulated timing differences relating to a write down of
accounts receivable which, if recognized, would have resulted in a deferred
income tax debit of $365,000 (1996 $351,000). A valuation allowance for
deferred tax assets was booked for $365,000 (1996 $351,000).
7
<PAGE>
- --------------------------------------------------------------------------------
Fifth Dimension Communications (Barbados) Inc.
1043133 Ontario Inc., Merlin Sierra Inc.
COMBINED SCHEDULE OF EXPENSES
- --------------------------------------------------------------------------------
Year ended March 31
1997 1996
$ $
- --------------------------------------------------------------------------------
[U.S. DOLLARS]
Advertising 360,304 425,996
Amortization of capital assets 120,347 144,398
Bank and credit card charges 209,824 115,061
Bad debts 68,000 162,095
Business development 3,361 15,369
Commissions 363,457 375,924
Computer 9,970 25,809
Consulting fees 11,718 8,166
Employee benefits 104,959 114,100
Interest 158,749 161,305
Insurance 10,186 12,133
Maintenance 24,868 28,381
Office 265,761 233,149
Professional fees 346,329 230,752
Rent 202,171 96,890
Salaries 1,545,755 1,282,237
Sales expense 2,500 556
Security 4,655 945
Taxes other than income 4,053 604
Travel 164,136 153,260
Telephone 254,398 289,436
Utilities 28,643 22,087
- --------------------------------------------------------------------------------
4,264,144 3,898,653
- --------------------------------------------------------------------------------
<PAGE>
SCHEDULE 7.2(b)
STUB PERIOD FINANCIAL STATEMENTS
[attached]
<PAGE>
FIFTH DIMENSION COMMUNICATIONS
(BARBADOS) INC., 1043133 ONTARIO INC.
AND MERLIN SIERRA INC.
Unaudited Combined Financial Statements
For the three months ended June 30, 1997 and June 30, 1996
and the years ended March 31, 1997 and 1996
<PAGE>
FIFTH DIMENSION COMMUNICATIONS (BARBADOS) INC.
1043133 ONTARIO INC. AND MERLIN SIERRA INC.
Unaudited Combined Balance Sheets as at June 30, 1997
(United States Dollars)
ASSETS
June 30 March 31 March 31
1997 1997 1996
$ $ $
(unaudited) (audited) (audited)
CURRENT ASSETS
Cash 524,376 642,466 615,559
Accounts receivable - net allowance
for doubtful accounts
of $1,450 (1996 $59,530) 2,953,093 3,014,470 2,325,217
Film exhibition rights 495,319 525,765 651,442
Inventory -- -- 11,409
Transponder deposits 200,000 200,000 150,000
Deferred income taxes -- -- 71,500
Prepaid expenses 291,657 282,883 623,756
--------- --------- ---------
4,464,445 4,665,584 4,448,883
Non-current portion of film
exhibition rights 158,227 222,566 11,493
Restricted investments - at cost 672,775 691,492 825,449
Investment in shares -- -- 220,000
Capital Assets - net 406,286 348,463 400,259
--------- --------- ---------
5,701,733 5,928,105 5,906,084
--------- --------- ---------
--------- --------- ---------
LIABILITIES
CURRENT LIABILITIES
Bank loan - 35,128 98,958
Accounts payable and accrued charges 902,425 1,481,055 1,766,385
Income taxes payable 402,082 382,082 408,744
Deferred subscription revenue 1,794,101 1,720,810 2,075,337
--------- --------- ---------
3,098,608 3,619,075 4,349,424
--------- --------- ---------
SHAREHOLDERS' EQUITY
CAPITAL STOCK 272 272 272
RETAINED EARNINGS 2,602,853 2,308,758 1,556,388
--------- --------- ---------
2,603,125 2,309,030 1,556,660
--------- --------- ---------
5,701,733 5,928,105 5,906,084
--------- --------- ---------
--------- --------- ---------
<PAGE>
FIFTH DIMENSION COMMUNICATIONS (BARBADOS) INC.
1043133 ONTARIO INC. AND MERLIN SIERRA INC.
Unaudited Combined Statements of Income and Retained Earnings
For the three months ended June 30, 1997 and 1996
and the years ended March 31, 1997 and 1996
(UNITED STATES DOLLARS)
<TABLE>
Three months Three months Year Year
Ended June 30 Ended June 30 Ended March 31 Ended March 31
1997 1996 1997 1996
$ $ $ $
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Sales 3,041,068 3,573,571 15,044,139 12,223,731
Cost of Sales 1,904,646 2,236,915 9,560,847 6,317,438
--------- --------- --------- ---------
Gross Profit 1,136,422 1,336,656 5,483,292 5,906,293
Expenses 822,327 1,103,317 4,264,144 3,898,653
--------- --------- --------- ---------
Net income from operations 314,095 233,339 1,219,148 2,007,640
Loss on investment in Shares -- 220,000 220,000 --
--------- --------- --------- ---------
314,095 13,339 999,148 2,007,640
--------- --------- --------- ---------
Provision for (recovery of)
income taxes
Current 20,000 -- 30,350 (113,563)
Deferred -- (574,980) 71,500 (71,500)
--------- --------- --------- ---------
20,000 (574,980) 101,850 (185,063)
--------- --------- --------- ---------
Net Income for the period 294,095 588,319 897,298 2,192,703
Retained Earnings (Deficit)
beginning of period 2,308,758 1,556,388 1,556,388 (636,315)
--------- --------- --------- ---------
2,602,853 2,144,707 2,453,686 1,556,388
Dividends paid -- -- 144,928 --
--------- --------- --------- ---------
Retained Earnings
end of period 2,602,853 2,144,707 2,308,758 1,556,388
--------- --------- --------- ---------
--------- --------- --------- ---------
</TABLE>
<PAGE>
FIFTH DIMENSION COMMUNICATIONS (BARBADOS) INC.
1043133 ONTARIO INC. AND MERLIN SIERRA INC.
Unaudited Combined Statements of Changes in Financial Position
For the three months ended June 30, 1997 and 1996
and For the years ended March 31, 1997 and 1996
(UNITED STATES DOLLARS)
<TABLE>
Three months Three months Year Year
Ended June 30 Ended June 30 Ended March 31 Ended March 31
1997 1996 1997 1996
$ $ $ $
(UNAUDITED) (UNAUDITED) (AUDITED) (AUDITED)
<S> <C> <C> <C> <C>
CASH PROVIDED FROM (USED IN)
OPERATING ACTIVITIES 294,095 588,319 897,298 2,192,703
Net income for the period
Items not affecting cash -
Amortization of capital assets 30,744 48,077 120,347 144,398
Amortization of film
exhibition rights 200,302 271,325 931,637 776,758
Loss on investment in shares -- 220,000 220,000 --
Deferred income taxes -- (574,980) 71,500 (71,500)
Net change in operating
components of working capital 136,496 (253,254) (936,660) (821,184)
-------- --------- ---------- -----------
661,637 299,487 1,304,122 2,221,175
-------- --------- ---------- -----------
INVESTING ACTIVITIES
Investment in shares -- -- -- (220,000)
Purchases of capital assets (88,567) (13,719) (74,682) (144,108)
Sales of capital assets -- -- 6,131 11,893
Transfers of capital assets
to related company -- -- -- 567,373
(Advances to) repayments
from, Teletheatre Plus Inc. -- -- 718,432 (718,432)
Purchases of film exhibition
rights (105,517) (271,325) (1,017,033) (904,121)
(Purchase) redemption of
restricted investments (592,002) (9,944) 133,957 (22,135)
-------- --------- ---------- -----------
(786,086) (294,988) (233,195) (1,429,530)
-------- --------- ---------- -----------
FINANCING ACTIVITIES
Capital stock -- -- -- 100
Dividends -- -- (144,928) --
Net change in accounts receivable
and payable, related companies 41,487 (206,964) (835,262) (398,661)
-------- --------- ---------- -----------
41,487 (206,964) (980,190) (398,561)
-------- --------- ---------- -----------
INCREASE(DECREASE) IN CASH
EQUIVALENTS FOR THE YEAR (82,962) (202,465) 90,737 393,084
CASH EQUIVALENTS -
BEGINNING OF YEAR 607,338 516,601 516,601 123,517
-------- --------- ---------- -----------
CASH EQUIVALENTS - END OF YEAR 524,376 314,136 607,338 516,601
-------- --------- ---------- -----------
-------- --------- ---------- -----------
CASH EQUIVALENTS IS COMPRISED OF:
Cash 524,376 397,469 642,466 615,559
Bank loan -- (83,333) (35,128) (98,958)
-------- --------- ---------- -----------
524,376 314,136 607,338 516,601
-------- --------- ---------- -----------
-------- --------- ---------- -----------
</TABLE>
<PAGE>
FIFTH DIMENSION COMMUNICATIONS (BARBADOS) INC., 1043133
ONTARIO INC. AND MERLIN SIERRA INC.
Notes to the Unaudited Combined Financial Statements
For the three months ended June 30, 1997 and 1996
1. BASIS OF PRESENTATION
These financial statements present the combined assets, liabilities,
revenues and expenses of Fifth Dimension Communications (Barbados)
Inc., Merlin Sierra Inc. and 1043133 Ontario Inc. for the three month
periods ended June 30, 1997 and 1996, together with the combined
assets, liabilities, revenues and expenses of Fifth Dimension
Communications (Barbados) Inc. and 1043133 Ontario Inc. for the years
ended March 31, 1997 and 1996 and those of Merlin Sierra Inc., from
February 1, 1996, the date of acquisition to March 31, 1996 and the
year ended March 31, 1997.
The three companies carry on complimentary but different businesses
related to the broadcasting of movies to subscribers by satellite and
cable. Fifth Dimension Communications (Barbados) Inc. is incorporated
under the laws of Barbados, 1043133 Ontario Inc. is incorporated under
the laws of the Province of Ontario in Canada and Merlin Sierra Inc.
is incorporated under the laws of the State of California in the
United States. None of the three companies own shares in the other
companies.
These combined financial statements have been prepared by management
in accordance with generally accepted accounting principles in the
United States applied on a consistent basis and are presented in
United States dollars. They have been prepared in connection with a
proposed sale of the combined business of the three companies as
expressed in a letter of intent dated April 14, 1997.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the
dates of financial statements and the reported amounts of revenues and
expenses during the reporting periods. Actual results could differ
from those estimates.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Inventory
Inventory is recorded at tile lower of cost and net realizable
value.
(b) Film exhibition rights
Rights to exhibit films are recorded at cost and are amortized on
a straight-line basis over the period of the contract which is
normally twenty-four months.
<PAGE>
FIFTH DIMENSION COMMUNICATIONS (BARBADOS) INC., 1043133
ONTARIO INC. AND MERLIN SIERRA INC.
Notes to the Unaudited Combined Financial Statements
For the three months ended June 30, 1997 and 1996
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(c) Investment in shares
The investment in shares, originally recorded at cost, has been
accounted for by the equity basis.
(d) Capital Assets
Capital assets are initially recorded at cost and amortized over
their estimated useful lives. Furniture and fixtures are being
amortized on the diminishing balance basis at a rate of 20% per
year. Automobiles and computers are being amortized on the
diminishing balance basis at a rate of 30% per year. Leaseholds
and the telephone system are amortized on a straight line basis
over the five year term of the realty lease. Software is
amortized at a 100% rate.
(e) Revenue recognition
Revenue from sales of television movie subscriptions from three
to twelve months is recognized on a monthly basis over the term
of the subscription.
(f) Foreign Exchange
Assets and liabilities denominated in currencies other than
United States dollars are translated at exchange rates in effect
at the balance sheet date. Revenue and expense items are
translated at average rates of exchange for the year. Translation
gains and losses are included in the determination of earnings.
3. RESTRICTED INVESTMENTS
Restricted investments consist of short-term marketable
securities and deposits recorded at cost held as collateral by
the financial institutions providing merchant credit card service
to 1043133 Ontario Inc.
<PAGE>
FIFTH DIMENSION COMMUNICATIONS (BARBADOS) INC., 1043133
ONTARIO INC. AND MERLIN SIERRA INC.
Notes to the Unaudited Combined Financial Statements
For the three months ended June 30, 1997 and 1996
4. CAPITAL ASSETS
1997 1996
Accumulated Accumulated
Cost Amortization Cost Amortization
$ $ $ $
Furniture and fixtures 110,058 43,299 103,994 30,229
Leaseholds 54,902 17,988 50,470 11,829
Telephone system 105,297 50,069 102,429 25,951
Automobiles 55,489 37,488 55,489 31,194
Computers 310,661 156,331 274,911 125,157
Software 98,561 23,507 14,768 11,799
------- ------- ------- -------
734,968 328,682 602,061 236,159
------- -------
------- -------
Accumulated
amortization 328,682 236,159
------- -------
406,286 365,902
------- -------
------- -------
5. BANK LOAN
The bank loan to Merlin Sierra Inc. bears interest at 16% with monthly
principal repayments of $12,148 to June, 1997. The loan was repaid as at
June 30, 1997. The loan is secured by a commercial security agreement on
all assets of Merlin Sierra Inc. and personal guarantees of certain
officers of Merlin Sierra Inc.
<PAGE>
FIFTH DIMENSION COMMUNICATIONS (BARBADOS) INC., 1043133
ONTARIO INC. AND MERLIN SIERRA INC.
Notes to the Unaudited Combined Financial Statements
For the three months ended June 30, 1997 and 1996
6. RELATED COMPANY INFORMATION
The companies are related by common control.
(a) Accounts Receivable and Accounts Payable
Accounts receivable include amounts due from related companies
totalling $1,023,096 (1996 $1,111,128). Accounts payable include
amount due to related companies totalling $527,420 (1996 $562,385).
The significant balances receivable from or (payable to) related
companies are as follows:
1997 1996
$ $
Fifth Dimension Communications (1996)
Corporation (221,517) (370,859)
Fifth Dimension Communications
Holdings, Inc. 466,915 76,154
Fifth Dimension Capital Corporation 917,457 664,777
Fifth Dimension Communications Atlantic Inc. -- 158,109
Fifth Dimension SatCom Inc. (92,978) (47,699)
Turks & Caicos Island Wireless
Television Ltd. (150,000) --
Fifth Dimension Technologies Inc. 63,886 (110,422)
FirstLink Communications Inc. -- 123,823
(b) Transactions
Related party transactions are measured at exchange values which
correspond to the amount established and agreed upon by both
parties.
<PAGE>
FIFTH DIMENSION COMMUNICATIONS (BARBADOS) INC., 1043133
ONTARIO INC. AND MERLIN SIERRA INC.
Notes to the Unaudited Combined Financial Statements
For the three months ended June 30, 1997 and 1996
6. RELATED COMPANY INFORMATION (continued)
The significant transactions entered into by 1043133 Ontario Inc. with
related companies are as follows:
Rented offices from Fifth Dimension Capital Corporation for
$11,956 (1996 $11,956).
Rented satellite uplink from 841161 Ontario Limited for $15,704
(1996 $15,704) and space for broadcasting facilities for $10,129
(1996 $10,754). Prepaid expenses include prepaid rent to 841161
Ontario Limited of $107,787 (1996 Nil).
Purchased accounting and administrative services from Fifth
Dimension Capital Corporation for $45,965 (1996 $45,675).
Purchased engineering services from Fifth Dimension SatCom Inc.
for $70,931 (1996 $93,007).
Purchased full period satellite space segment from Fifth
Dimension Communications (1996) Corporation for $264,854 (1996
Nil) and occasional use satellite space segment for $13,772
(1996 Nil) and rented broadcasting equipment for $17,130 (1996
$31,957).
Purchased subscriber activation system from FirstLink
Communications Inc. for $10,310 (1996 $44,973).
Rented a hospitality suite from Fifth Dimension Technologies Inc.
for $18,832 (1996 $18,795) and purchased computer equipment for
$19,580 (1996 $3,471).
<PAGE>
FIFTH DIMENSION COMMUNICATIONS (BARBADOS) INC., 1043133
ONTARIO INC. AND MERLIN SIERRA INC.
Notes to the Unaudited Combined Financial Statements
For the three months ended June 30, 1997 and 1996
6. RELATED COMPANY INFORMATION (continued)
The significant transactions entered into by Fifth Dimension
Communications (Barbados) Inc. with related companies are as follows:
Rented broadcasting equipment for $25,695 (1996 Nil) and
purchased occasional use satellite space segment for $20,657
(1996 Nil) from Fifth Dimension Communications (1996)
Corporation. Purchased full period satellite space segment from
Fifth Dimension Communications (1996) Corporation for $132,427
(1996 Nil).
Purchased engineering services from Fifth Dimension SatCom Inc.
for $93,321 (1996 Nil).
(c) Commitments
Commitments by 1043133 Ontario Inc. to related companies are as
follows:
The minimum amounts of future lease payments to 841161 Ontario
Limited for office accommodation are $40,000 for each of 1998
and 1999.
The minimum amounts of future lease payments to 841161 Ontario
Limited for a satellite uplink facility are $62,000 for 1998 and
$31,000 for 1999.
The minimum amounts of future lease payments to Fifth Dimension
Capital Corporation for office facilities are $48,000 for 1998
and 1999.
<PAGE>
FIFTH DIMENSION COMMUNICATIONS (BARBADOS) INC., 1043133
ONTARIO INC. AND MERLIN SIERRA INC.
Notes to the Unaudited Combined Financial Statements
For the three months ended June 30, 1997 and 1996
6. RELATED COMPANY INFORMATION (continued)
The minimum amount of future lease payments to Fifth Dimension
Communications (1996) Corporation are $128,070 for 1998.
A commitment to Fifth Dimension SatCom Inc. for the purchase of
engineering services in amounts which are based on usage.
7. THIRD PARTY COMMITMENT AND CONTINGENT LIABILITIES
Commitments of Fifth Dimension Communications (Barbados) Inc.
The Company will be committed as of July 1, 1997 for purchases of full
period space segment on three additional satellite transponders
totalling $22.5 million during the estimated five year life of the
contracts.
The Company has committed as of March 31, 1997 to purchase full period
space segment totalling $5.4 million to December 31, 1999.
Fifth Dimension Communications (Barbados) Inc. and 1043133 Ontario Inc.
have given a guarantee to the vendor in regard to the unpaid purchase
price for the acquisition of the business of Merlin Sierra for a total
amount of $850,000. The balance owing as at June 30, 1997 was $591,628
(1996 Nil)
1043133 Ontario Inc. has a commitment to purchased promotional video
services of $217,000 in each of 1998 and 1999.
<PAGE>
FIFTH DIMENSION COMMUNICATIONS (BARBADOS) INC., 1043133
ONTARIO INC. AND MERLIN SIERRA INC.
Notes to the Unaudited Combined Financial Statements
For the three months ended June 30, 1997 and 1996
8. CAPITAL STOCK
AUTHORIZED
Fifth Dimension Communications (Barbados) Inc. is authorized to issue
an unlimited number of common shares and redeemable non-voting
preference shares. Non-cumulative dividends on both classes of
shares may be declared at the discretion of the directors.
1043133 Ontario Inc. is authorized to issue an unlimited number of
common shares.
Merlin Sierra Inc. is authorized to issue 50 common shares.
Issued
1997 1996
$ $
Fifth Dimension Communications (Barbados) Inc.
100 Common shares 100 100
1043133 Ontario Inc.
100 Common shares 72 72
Merlin Sierra Inc.
100 Common shares 100 100
--- ---
272 272
--- ---
--- ---
9. FAIR MARKET VALUE
The carrying amounts of the current assets and liabilities, restricted
investments and investment in shares approximate fair market values.
10. INCOME TAXES
The Companies have accumulated timing differences relating to a write down
of accounts receivable which, if recognized, would have resulted in a
deferred income tax debit of $365,000 (1996 $351,000). A valuation
allowance for deferred tax assets was booked for $365,000 (1996 $351,000).
<PAGE>
SCHEDULE 7.2(c)
LETTER OF UNDERSTANDING OF 14 APRIL 1997
[attached]
<PAGE>
April 14, 1997
To: 1043133 Ontario Inc.
Fifth Dimension (Barbados) Inc.
Merlin Sierra, Inc.
Fifth Dimension Communications (1996) Corporation
c/o Douglas Duncan
2500 Don Reid Drive
Ottawa, Ontario
K1H 8P5
Dear Mr. Duncan:
This letter sets forth certain terms upon which New Frontier Media, Inc., a
Colorado Corporation, ("New Frontier") is interested in acquiring certain
assets and services from the above-noted companies. Such assets shall be
acquired by a wholly-owned subsidiary company to be formed by New Frontier
for such purpose, which company will be a Nevada corporation tentatively
named "Nevada Satellite Broadcasting, Inc," (the "Purchaser"). The Purchaser
shall not acquire any stock or shares of any of the above-noted companies.
DEFINITIONS
In this letter:
"5DB" means Fifth Dimension (Barbados) Inc., a Barbados corporation;
"Adult Companies" means 5DB, Merlin and XTC;
"Adult Movies Business" means all any present or contemplated satellite
broadcast services on television or any other medium, including cable and
the Internet, which broadcasts, replays, and/or otherwise exploits feature
length adult programming and all related promotional content and other
programming of a non-rated or X-rated nature and whose main theme embodies
nudity and sexually explicit material between consenting adults and such
other related business assets as are necessary for the operation thereof as
are as set forth in the Valuation. This shall include the services and
advertising and promotional materials for broadcast services currently
operating under the trade names "Exxxtasy", "True Blue", and "Venus" and
any other similar contemplated services;
"Closing" means the closing of the Transaction and "Closing Date" means
the date on which the Closing takes place;
<PAGE>
PAGE 2 OF 9
"Communications" means Fifth Dimension Communication (1996) Corporation,
a Canadian company;
"Merlin" means Merlin Sierra, Inc., a California corporation;
"Ottawa Call Center" means the subscription and pay-per-view call center
at Ottawa now operated by the Adult Companies;
"Subject Assets" means:
(a) any and all trademarks, proprietary rights and other intellectual
property rights owned by the Adult Companies or any of them and
associated with the Adult Movies Business Assets. These include,
but are not necessarily limited, to trade names, trademarks
and/or service marks. Without limiting the generality of the
foregoing, it is understood that the trade names and marks
"Venus" and "Venus TV" are not owned by the Adult Companies and
will not be available for use at the Closing;
(b) (subject to the provisions related thereto below in this letter)
equipment and necessary technology (the "Uplink Equipment") for
the operation of a satellite operation uplink facility (the
"UpLink Facility") at a suitable location in Nevada to be chosen
by New Frontier. The Uplink Equipment shall be in operating
order and shall be substantially similar in condition and
function to the equipment and technology (the "Ottawa Uplink
Equipment") currently being used by the Adult Companies at its
uplink facility in Ottawa, Ontario (the "Ottawa Uplink
Facility");
(c) all hardware and equipment now used at the Ottawa Call Center
(which shall be delivered to the Purchaser forthwith after the
Purchaser ceases to make use of the Ottawa Call Center) a fully
paid, royalty free license to use one copy of the "First Link"
subscription management software now used at the Ottawa Call
Center, and an assignment of licenses for any third party
Software used in connection with the Ottawa Call Center;
(d) any and all rights the Adult Companies may have in adult
programming in any format (including master tapes) including
feature length films and other films that contain motion picture
material that is non-rated or X-rated and whose main theme
embodies sexually explicit material between consenting adults,
and all promotional materials and programming related thereto.
No representation or warranty is made with respect to the
transferability or assignability of such programming to New
Frontier;
(e) all programming developed by or on behalf of the Adult Companies
to market and advertise the Adult Movie Business. No
representation or warranty is made with respect to the
transferability or assignability of such
<PAGE>
PAGE 3 OF 9
programming to New Frontier;
(f) all subscriptions for Adult Movie services at Closing, all
subscriber lists, past and present, and any other marketing data
related thereto, which is in the possession of the Adult
Companies;
(g) a complete list of all advertisers, marketing partners and
vendors used by the Adult Companies in relation to the Adult
Movies Business and related services, with contact names,
mailing addresses, and phone and fax numbers; and
(h) all rights the Adult Companies have in 1-800 phone numbers used
in the Adult Business and in any World Wide Web addresses and
websites used in the Adult Business;
"Transaction" means the transaction(s) contemplated in this letter;
"Uplink Moving/Installation Costs" means the sum of all costs of equipment
to be included in the Uplink Equipment, all labor costs and related
expenses necessary for the installation of the Uplink Equipment (including
incurred travel, long-distance, accommodation, and meal costs), and all
customs, duties, taxes, and tariffs relating to the importation of
equipment and technology in the United States;
"Valuation" means the VALUATION OF ADULT COMPANIES AS OF MARCH 31, 1997
previously provided by the Adult Companies to New Frontier; and
"XTC" means 1043133 Ontario Inc., an Ontario corporation.
PROPOSED ACQUISITION
GENERAL. The Purchaser proposes to acquire the Subject Assets from the Adult
Companies. In addition, the Purchaser shall acquire subleases for certain
satellite transponders (as described below) and certain services to be
provided by the Adult Companies (as described below). The Purchaser shall
honor all unfulfilled customer subscriptions in existence at Closing (without
credit from the Adult Companies for unearned, prepaid subscription revenue),
provided that no subscriptions shall extend for a period of more than 12
months after Closing.
CLOSING. The Closing shall be 30 June 1997 or sixty (60) days after the
execution of a definitive asset purchase agreement and any ancillary
agreements, whichever last occurs. The parties will cooperate in establishing
a schedule of important dates and deadlines related to the completion of the
Transaction.
UPLINK. As part of the acquisition and the purchase price to be paid
therefor, the Adult Companies shall provide and install (in operating order)
the Uplink Equipment at the Uplink Facility. It is anticipated that the
location of the Uplink Facility will be near Las Vegas, Nevada.
<PAGE>
PAGE 4 OF 9
The Adult Companies shall be responsible for all Uplink Moving/Installation
Costs. All costs associated with the acquisition, preparation and necessary
approvals and licenses for the Uplink Facility (excluding the Uplink
Equipment and Uplink Moving/Installation Costs) shall be borne by the
Purchaser. A complete list of the Uplink Equipment shall be included as a
schedule to the definitive asset purchase agreement. To the extent that the
Purchaser wants equipment and technology at the Uplink Facility that is not
similar to the Ottawa Uplink Equipment, the Purchaser shall be responsible
for all costs related to the acquisition and installation thereof.
Communications and the Purchaser shall enter into an "Uplink Services
Agreement" pursuant to which Communications will provide the services to
supervise the installation of the Uplink Equipment at the Uplink Facility and
to assist in acquiring the licenses and approvals necessary for operation of
the Uplink Facility. In addition, an employee of Communications will be made
available, at the Purchaser's expense (but with mark-up by Communications),
on a full-time basis to manage the Uplink Facility during its first month of
operations and for a one-week period during each of the following six months.
All travel, living and other incidental costs associated with such services
shall be paid for by the Purchaser. The Uplink Services Agreement shall be
terminable at the option of the Purchaser at any time and shall include a
provision that requires the Purchaser to pay $100,000 to Communications if
the Purchaser or a related entity hires any employee or ex-employee of
Communications on or before the 2nd anniversary date of the Closing Date.
CALL CENTER. The Adult Companies agree to receive and process subscriber
calls from the Ottawa Call Center for a period of up to nine (9) months from
the Closing, at a flat, prepaid monthly rental of US$275,000 and on other
terms to be negotiated in a "Call Center Agreement". The Purchaser shall give
the Adult Companies sixty (60) days prior written notice of its intention to
terminate its use of the Ottawa Call Center prior to the end of the said nine
(9) month period.
TRANSPONDERS. Communications and Barbados agree, as set forth below, to
provide the Purchaser with sublease rights (pursuant to "Transponder Sublease
Agreements") for four (4) satellite transponders to be used for the Adult
Movie Business after Closing. Three (3) of the transponders will be suitable
for adult movie channels and one (1) will be suitable for advertising or
"barker" programming. The amounts to be paid by the Purchaser for such
rights shall not exceed the actual costs paid or required to be paid by the
sublessor therefor, with the exception that the Purchaser shall bear any
additional costs or expenses associated with upgrading the rights and
interests in the particular transponders (for example, to a "Silver
Service"). Provided that they are operational, the transponders to be
provided shall include two (2) T5 transponders (supplied by Barbados), one
(1) additional T5 transponder (if rights thereto can be acquired for such
purpose by Barbados) or one suitable replacement therefor (if such T5
transponder cannot be so acquired), and one (1) T4 transponder (supplied by
Barbados). Until the successful launch of the T5 satellite or a replacement
therefor, the Purchaser shall be entitled to sublease the transponders now
used in relation to the Adult Movie Business.
The Transponder Sublease Agreements shall be on the same terms and conditions
as the sublessor thereof has leased the applicable transponders, except that
payments shall be due five (5) working days before the date on which the
sublessor is required to pay the same. The Purchaser shall be entitled to
the same renewal rights in respect thereof as the sublessor may
<PAGE>
PAGE 5 OF 9
have. New Frontier will guarantee all obligations of the Purchaser under the
Transponder Sublease Agreements. The Transponder Sublease Agreements shall
require the Purchaser to provide to the sublessor a security deposit equal to
(and on the same terms as) the security deposit paid by the sublessor to the
lessor of the applicable transponder or (if the sublessor has not then made a
security deposit) in an amount equal to the monthly lease rate for the
transponder under the applicable sublease.
To the extent that Communications may obtain rights in any transponders on
Nahuel, AsiaSat and Intelsat satellites and desire to sublease all or a
portion thereof for use in adult movie programming, Communications shall give
the Purchaser a right of first refusal to obtain such sublease on terms
typically offered by Communications to its customers, which right must be
exercised by the Purchaser within seven (7) days after notice of such
opportunity is given to the Purchaser by Communications.
KEY PAYMENT TERMS
In consideration for the Transaction, the Adult Companies shall receive the
following:
(a) US$3,500,000 on Closing, including a US$100,000 deposit which shall
be paid to the Adult Companies upon execution of the definitive asset
purchase agreement (which deposit shall be held in escrow by a
mutually agreed upon third party lawyer in Ottawa, Ontario and shall
be non-refundable if the Transaction does not close, unless the
failure to close is solely attributable to breach of the definitive
asset purchase agreement by the Adult Companies);
(b) the greater of (i) shares in the stock of New Frontier having a value
of US$3,400,000 (calculated on the basis of the weighted-average
trading price of the stock on the last day stock was traded by
arms-length third parties (excluding New Frontier and its directors,
officers, and employees, and their relatives) prior to the Closing
Date) and (ii) 840,000 such shares. It is understood that these
shares of stock and the warrants (describe in paragraph (c) below)
and issuable shares therefrom have not been or will not have be
registered under the SECURITIES ACT OF 1933 or applicable state
Securities laws and shall not be sold, pledged hypothecated, donated
or otherwise transferred (whether or not for consideration) by the
holder except on the issuance to New Frontier of a favorable opinion
of counsel, in each such case, to the effect that any such transfer
shall not be in violation of the Securities Act of 1933 or the
applicable state securities laws;
(c) warrants to purchase sufficient shares in the stock of New Frontier so
that if all warrants were exercised the total stock owned by the
Adult Companies would represent 20% of the issued stock of New
Frontier. Such warrants shall be exercisable at the weighted-average
trading price of the stock on the last day stock was traded by
arms-length third parties (excluding New Frontier and its directors,
officers, and employees, and their relatives) prior to the Closing
Date, which warrants shall not be assignable without the prior consent
of New Frontier;
<PAGE>
PAGE 6 OF 9
(d) a promissory note from the Purchaser, guaranteed by New Frontier, for
a face value of US$1,000,000, and secured by a second charge against
the assets of the Purchaser and guaranteed by New Frontier. The term
of the note shall be three (3) years, at the end of which the full
principal amount of the Promissory Note shall be payable. Interest
shall be paid at the end of the first year and thereafter shall be
payable on a monthly basis until the Promissory Note is paid in full.
Interest shall be calculated at the rate of prime plus one percent
(1%), based on the prime rate of Bank One, but in no event shall be
greater than nine percent (9%) per annum or less than six percent
(6%) per annum; and
(e) the Adult Companies shall be entitled to the any and all Formula
Profits of the Purchaser exceeding US$ 2 million in the first 12
months of the Purchaser's operations after the Closing. "Formula
Profits" shall equal the total revenue derived from operations less
the actual operating costs, provided the actual operating costs
related to the Adult Movie Business do not exceed 125% of the
projected costs set forth in the Valuation. The Formula Profits shall
be payable by not later than 90 days after the end of such 12 month
period.
OTHER PROVISIONS
DIRECTORS. The Adult Companies shall be entitled to appoint at least one
member of the Board of Directors for New Frontier. In addition to the
appointed board member, the Adult Companies shall be entitled to have one
additional non-voting representative receive notice of and attend and
participate at New Frontier board meetings; such representative shall enjoy
all the rights and privileges of board members except for the right to vote
and shall have all of his reasonable travel and lodging costs (related to
attendance at board meetings) paid for by New Frontier.
NON-COMPETITION. The Adult Companies, their directors, officers and
shareholders (including Douglas Duncan, Stuart Duncan and Daniel Bender)
agree to enter into "Non-Competition Agreements" in which they agree not to
directly or indirectly engage or participate in any business that directly or
indirectly will compete or otherwise participate in the distribution,
production or broadcasting of Adult Programming in any geographic being
served by the Purchaser. Adult programming shall be defined as the motion
picture material in any format that is of a non-rated or X-rated nature and
whose main theme embodies sexually explicit material between consenting
adults.
FINANCIAL STATEMENTS. The Adult Companies will provide audited financial
statements for the 12 month period ending 30 June 1997 (including a balance
sheet at such date and statements of earnings for the years ended on 30 June
1996 and 1997 as required for SEC filings). The definitive asset purchase
agreement shall contain a price adjustment clause to deal with increases or
deceases in the consideration payable in respect of the Transaction if the
audited pre-tax profits for the period ending 30 June 1997 are more or less
than US$2,000,000 after the following adjustments thereto are made:
<PAGE>
PAGE 7 OF 9
(a) add-back of salaries and benefits paid to Douglas Duncan and his
assistant Nina Frid, Stuart Duncan and Dan Bender, which in the
aggregate are in excess of $200,000;
(b) add-back of salaries and benefits, and termination costs, related to
Judith Christou, Richard Latham, and Nina Frid, and termination costs
related to other employees;
(c) an adjustment so that the average monthly cost of movies is reduced to
US$75,000;
(d) add-back of amounts paid to VTV and expenses in the accounts of an
Adult Company;
(e) add-back of amounts paid to lawyers in connections with this and
previous acquisitions and proposed acquisitions of or by the Adult
Companies or any of them (including the acquisition of Merlin Sierra);
(f) add-back of the amount (if any) by which the transponder costs
incurred in January 1997 exceeded the average monthly transponder
costs over the preceding 3 months;
(g) add-back of promotional and entertainment costs related to the
corporate suite at the Corel Centre in Ottawa;
(h) add-back of payments made to Jeff Gold, Galaxy Communications
International Inc and Surmount Inc. which payments have been expensed
in the accounts of 5DB;
(i) add-back of all costs related to the Valley Center office, including
rent paid to Dan Bender and salaries and termination allowances paid
to staff of such office;
(j) add-back of automobile lease payments made on behalf of Douglas
Duncan and Stuart Duncan;
(k) add-back of payments made to RocketSoft Inc, for services provided by
Denis Dagernais;
(l) add-back of interest paid on Best Bank loan (regarding Merlin Sierra);
(m) add-back of payments made to On-line Enterprises and Jack Michaelson;
and
(n) add-back of AT&T telephone penalty for not meeting contractual
commitment.
New Frontier will guarantee all payments to be made by the Purchaser under
the terms of the definitive asset purchase agreement and other ancillary
agreements and such guarantee shall be
<PAGE>
PAGE 8 OF 9
secured by a charge against New Frontier's assets that ranks subordinate only
to a charge, if any, in favour of New Frontier's principal bankers.
ANCILLARY AGREEMENTS
The parties acknowledge and agree that the anticipated acquisition will
require several ancillary agreements, including without limitation the Call
Center Agreement, the Transponder Sublease Agreements, the Uplink Service
Agreement, and Non-Competition Agreements (referred to above).
In addition, the Purchaser will enter into a one year employment contract
with Daniel Bender. The total compensation (salary, benefits and other
compensation) to be paid under that employment contract shall be
US$100,000.00. Mr. Bender will not be required to relocate to provide
services under such contract.
In addition, the Purchaser will enter into an "Audio/Visual Production
Agreement" with Diorio Productions Inc., in which the Purchaser agrees to
purchase Cdn$30,000 per month worth of interstitial programming for its adult
channels for the period of nine (9) months following the Closing.
GENERAL
This letter is intended to outline and clarify what we believe to be our
mutual understandings concerning the general terms and conditions of this
proposed transaction. Additional issues will need to he discussed and
negotiated. The willingness and ability of the parties to complete the
proposed transaction depend upon:
(a) the ability of New Frontier to successfully finance the proposed
acquisition;
(b) the successful completion of a pre-closing due diligence review by
all parties (and, in that regard, the parties agree to execute
confidentially agreements prohibiting the use of any confidential
information obtained during the due diligence investigation or
otherwise from being used in any manner except for the limited
purpose of due diligence investigation and evaluating the
Transaction). The definitive asset purchase agreement will require
the parties to represent and warrant that all information and
materials provided during the due diligence process is true and
accurate; and
(c) the entering into of a definitive asset purchase agreement and other
ancillary agreements to be negotiated between the applicable parties.
<PAGE>
PAGE 9 OF 9
Assuming you find the contents of this letter to be acceptable, please
sign and acknowledge the same below on or before 15 April 1997.
This letter and the acknowledgement and acceptance below may be signed
in one or more counterparts.
Sincerely,
New Frontier Media, Inc.
/s/ Mark H. Kreloff
Mark H. Kreloff
President
Acknowledged and accepted this 14th day of April, 1997 on behalf of 1043133
Ontario Inc., Fifth Dimension (Barbados) Inc., Merlin Sierra, Inc., and Fifth
Dimension Communications (1996) Corporation.
/s/ Douglas Duncan
-----------------------------
Douglas Duncan
/s/ Stuart Duncan
-----------------------------
Stuart Duncan
/s/ Daniel Bender
-----------------------------
Daniel Bender
<PAGE>
SCHEDULE 7.3(f)
ENCUMBRANCES
None.
<PAGE>
SCHEDULE 7.3(g)
MATERIAL LOSSES OF ORDERS OR CUSTOMERS
None.
<PAGE>
SCHEDULE 7.3(h)
MATERIAL ADVERSE EVENTS AND CONDITIONS
In July 1997, Lorel Skynet (the lessor of certain satellite transponders used
in connection with the Seller's Adult Movies Business) threatened to cancel
the applicable leases for such transponders because of non-payment by Seller,
Fifth Dimension Communications (Barbados) Inc., of amounts owning from it to
Lorel Skynet with respect to a satellite transponder not used in connection
with Sellers' Adult Movies Business. The matter has been resolved.
<PAGE>
SCHEDULE 7.5
TRADEMARKS
EXOTICA (U.S. Trademark Application No. pending)
XXXOTICA (U.S. Trademark Registration No. 2030091)
XXXOTICA AND DESIGN (U.S. Trademark Registration No. 2028739)
<PAGE>
SCHEDULE 7.8
DEALERS/DISTRIBUTORS LIST
[attached]
<PAGE>
FIFTH DIMENSION COMMUNICATIONS (BARBADOS) INC.
DISTRIBUTION SALES
FOR THE 12 MONTHS ENDING JUNE 30, 1991
<TABLE>
1996
DISTRIBUTOR JUL AUG SEPT OCT NOV DEC
----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
APS $ 17,326.20 $ 17,543.30 $ 17,214.40 $ 19,478.80 $ 22,772.70 $ 24,511.10
CONSUMER SATELLITE 131,100.99 125,283.85 129,457.40 134,088.85 140,126.30 145,150.70
GALAXY 1,405.83 3,086.98 5,039.40 6,445.16 7,689.08 8,973.63
JETCOM 1,533.50 2,008.50 2,449.50 2,815.50 2,921.00 2,896.50
NAPS 2,799.50 2,280.10 2,581.50 3,187.60 4,003.45 4,755.20
PROGRAM SOURCE 7,787.00 7,424.65 8,109.70 8,298.80 10,319.75 11,355.95
PWC 1,336.00 824.00 1,800.00 1,912.00 1,848.00 1,776.00
SATELLITE DIRECT 686.65 716.05 680.65 702.00 823.95 816.95
SATELLITE RECEIVERS 8,914.28 7,169.48 16,634.49 15,839.50 13,809.20 6,409.88
SATELLITE SOURCE 9,076.05 8,544.15 11,429.65 11,928.90 12,467.85 12,836.85
SKYLIGHT 2,991.70 3,185.50 3,457.00 4,203.00 5,053.05 5,501.15
SKYWALKER 67,299.90 61,156.30 62,750.20 65,433.50 63,564.50 58,912.75
SUNSHINE 2,017.80 1,830.45 1,692.95 1,444.25 81.00 81.00
SUPERSTAR -- -- 1,181.58 4,981.00 10,088.98 15,903.76
TURNER VISION 113,276.67 120,723.96 134,348.31 138,487.50 139,033.30 141,230.36
UNIVERSAL 824.10 810.90 772.05 738.30 835.80 801.00
----------------------------------------------------------------------------
$368,376.17 $362,590.17 $399,798.78 $419,984.66 $435,431.91 $411,912.78
----------------------------------------------------------------------------
----------------------------------------------------------------------------
</TABLE>
<TABLE>
1997
DISTRIBUTOR JAN FEB MAR APR MAY JUN TOTAL
--------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
APS $ 22,043.15 $ 16,892.20 $ 14,087.90 $ 18,236.90 $ 16,011.15 $ 15,848.80 $221,966.60
CONSUMER SATELLITE 143,838.70 149,179.90 137,781.25 120,683.40 113,397.95 104,461.00 1,574,550.29
GALAXY 10,348.48 11,367.11 11,774.98 11,261.14 10,364.23 9,670.91 97,426.93
JETCOM 3,109.50 2,805.25 2,251.00 1,945.00 1,675.25 1,500.20 27,910.70
NAPS 5,233.80 5,300.45 5,182.35 5,300.45 5,072.70 5,459.80 51,156.90
PROGRAM SOURCE 11,387.50 11,116.40 10,495.75 10,722.85 9,085.00 9,380.75 115,485.10
PWC 1,968.00 1,949.65 5,117.20 6,403.15 6,393.35 7,001.65 38,329.00
SATELLITE DIRECT 944.95 994.10 950.85 899.40 861.55 860.70 9,939.80
SATELLITE RECEIVERS 6,398,28 6,639.15 6,450.38 5,690.98 4,685.63 4,288.50 103,129.75
SATELLITE SOURCE 12,902.80 13,646.03 14,203.95 13,585.10 13,329.05 13,648.45 147,598.83
SKYLIGHT 6,206.90 6,351.30 6,396.35 5,614.35 5,414.40 5,379.40 59,754.10
SKYWALKER 57,670.75 49,258.35 51,441.50 48,098.80 43,700.60 39,985.35 669,272.50
SUNSHINE -- -- -- -- -- -- 7,147.45
SUPERSTAR 20,963.58 23,286.33 25,380.53 27,341.68 31,773.30 33,301.30 194,202.04
TURNER VISION 142,253.29 143,974.01 145,370.31 144,046.41 143,820.75 141,236.75 1,647,801.62
UNIVERSAL 865.50 894.90 901.25 867.90 811.25 744.90 9,867.85
--------------------------------------------------------------------------------------------
$446,135.18 $443,655.13 $437,786.55 $420,697.51 $406,396.16 $392,768.46 $4,975,539.46
--------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
FIFTH DIMENSION COMMUNICATIONS (BARBADOS) INC.
DISTRIBUTOR'S LISTING
<TABLE>
- ---------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTORS CONTACT PERSON ADDRESSES TEL. NO. FAX NO.
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
American Programming Services Brian Mc Cosh 553 Route 3A, 1-603-224-5166 1-306-224-7864
Bow, New Hampshire, U.S.A. 03304
Consumer Satellite Systems Inc. (NPS) Bill Leonard 9190 Corporation Drive, 1-317-845-4400 1-317-849-5732
Indianapolis, IN U.S.A. 46256
Freedom Satellite (USA) Ltd Kevin Stefansson 3317 Feichtner Drive, 1-204-783-8193 1-204-783-9962
Fargo, ND U.S.A. 38106-9159
Galaxy Satellite Programming Erna Vandenbroek 2361 Wehrle Drive, 1-905-827-1701 1-905-827-1145
(Controller) Buffalo, NY U.S.A. 14421
Dino Gagliardi
(A/P Clerk)
Jetcom/Sat. Programming Services Joyce Bell 2533 North Carson Street, #2470 1-905-660-0333 1-905-660-6627
Carson City, Nevada U.S.A. 89706
North American Programming Services Leeanne Carnegie 201 North Walnut Street, #1000, 1-519-448-3730 1-519-448-1563
Wilmington, Delaware U.S.A. 19801
Program Sources Inc. Joe Gatfield 65 Cadillac Square, Ste 3200, 1-519-969-6559 1-519-966-3058
(Controller) Detroit, Michigan U.S.A. 48226
Maria Dimarino
PWC Programmers Warehouse Joanne Chay 1733H Street #330-545, 1-604-532-8177 1-604-532-7192
Blaine, WA U.S.A. 96230
Satellite Direct Communications Richard Guillerm 4601-46 Street Court West, 1-819-647-2241 1-819-647-2240
Dan Tremblay Bradington, Florida, U.S.A. 34210
Satellite Receivers Ltd. George Bell 1740 Cofrin Drive, 1-414-432-5777 1-414-432-1918
(General Manager) Green Bay, Wisconsin
U.S.A. 54308-8466
Satellite Source Inc. Page Alcorta 90 Inverness Circle East, 1-303-799-8222 1-303-792-5553
Englewood, Colorado,
U.S.A. 80112
Skyview Programming (Universal) Judy Moring 4771 South Hampton Avenue, 1-407-631-7889 1-407-382-9271
Orlando, Florida U.S.A. 32812
Skywalker Communications Inc. Marlene Bryan 1000 South Service Road, 1-314-272-8025 1-314-272-8214
O'Fallon, Missouri,
U.S.A. 63366-2966
Superstar/Netlink Group LLC. Julie Kruse 7140 South Lewis Avenue, 1-918-488-4000 1-918-499-6062
Tulsa, OK, U.S.A. 74136-5422
Turner Vision, Inc. Crystal Gross P.O. Box 169, South View Mall, 1-304-327-7900 1-304-589-5925
Bluefield, WV 24701
</TABLE>
<PAGE>
SCHEDULE 7.9
INSURANCE POLICIES
The Subject Assets are insured under Zurich Insurance Company
Policy Nos. 8422185 and 8422187. The Subject Assets are insured
on a replacement value basis.
<PAGE>
SCHEDULE 7.14
APPROVALS AND CONSENTS
None.
<PAGE>
SCHEDULE 7.15
COMPETING INTERESTS
Stuart K. Duncan and Douglas J. Duncan, officers and directors of
Seller:
1. are the beneficial owners of options to acquire up
to 60% of the issued and outstanding stock in the
capital of Diorio Productions Inc. ("DPI"). DPI is
a provider of certain audio/visual promotional
programming used in the Sellers' Adult Movies
Business;
2. are the beneficial owners of a minority interest in
New Age Conversions, L.P. ("New Age"). New Age
performs video dubbing and conversions services for
Sellers; and
3. are the beneficial owners of Fifth Dimension Capital
Corporation ("5D Capital"). 5D Capital leases the
premises used for the operation of the call center
at Ottawa used in connection with the Sellers' Adult
Movies Business.
Douglas J. Duncan, an officer and director of Seller, is the
beneficial owner of 841161 Ontario Limited ("841"). 841 leases to
Seller the premises used for the operation of the uplink facility
at Ottawa used in connection with the Sellers' Adult Movies
Business.
<PAGE>
SCHEDULE 7.18
DEFAULTS UNDER TRANSPONDER AGREEMENTS
In July 1997, Lorel Skynet (the lessor of certain satellite
transponders used in connection with the Seller's Adult Movies
Business) threatened to cancel the applicable leases for such
transponders because of non-payment by Seller, Fifth Dimension
Communications (Barbados) Inc., of amounts owning from it to
Lorel Skynet with respect to a satellite transponder not used in
connection with Sellers' Adult Movies Business. The matter has
been resolved.
<PAGE>
SCHEDULE 8.2(a)
BUYERS' DISCLOSURE STATEMENT
[attached]
<PAGE>
SCHEDULE 8.2(a)
BUYERS' DISCLOSURE STATEMENT
Buyers make no further disclosures concerning Buyers' Financial
Statements and the notes thereto, which were prepared in accordance with GAAP
applied on a consistent basis throughout the periods covered thereby and
reaffirm that the Financial Statements are true, accurate and complete, do
not contain any untrue statement of material fact or omit to state a material
fact required by GAAP to be stated therein or necessary in order to make the
statements contained therein not misleading, and fairly present the financial
condition and the results of operations of Buyers, on the bases therein
stated, as of the respective dates thereof, and for the respective periods
covered thereby subject, in the case of unaudited financial statements, to
normal year-end audit adjustments and accruals.
<PAGE>
SCHEDULE 8.6
5% OR MORE OWNERS OF NEW FRONTIER STOCK
OWNER'S NAME NUMBER OF SHARES HELD* PERCENTAGE*
- ------------ ---------------------- -----------
Mark H. Kreloff 1,014,000 24.2%
Michael Weiner 615,000 14.7
Stephen P. Cherner 475,000 11.3
Andrew V. Brandt 279,500 6.7
* Reflects number and percentage of shares beneficially owned prior to
the anticipated public offering of 1,500,000 shares of New Frontier Media,
Inc. tentatively scheduled for November, 1997.
<PAGE>
SCHEDULE 11.9
CONSULTING AGREEMENT
Not applicable.
<PAGE>
SCHEDULE 11.11
NON-COMPETITION AGREEMENT
[attached]
<PAGE>
NONCOMPETITION AND CONFIDENTIALITY AGREEMENT
THIS NONCOMPETITION AND CONFIDENTIALITY AGREEMENT is entered into as of this
_____ day of__________ , 1997, by and among New Frontier Media, Inc., and
Colorado Satellite Broadcasting, Inc., a Colorado corporation, (collectively
"Buyers") and Fifth Dimension Communications (Barbados), Inc. and Merlin
Sierra, Inc., (collectively, "Sellers"),
Background
Buyers are acquiring certain assets and contracting for certain
services from Sellers for an Adult Movies Business;
As a condition to Buyers' willingness to consummate the transactions
contemplated by the Purchase Agreement to which this Agreement is an exhibit,
Buyers have required that Sellers and Sellers agree to the covenants not to
compete and the confidentiality agreements provided in this Agreement.
NOW, THEREFORE, in consideration of the mutual covenants and
agreements set forth herein and in the Purchase Agreement and foregoing
premises, the parties hereby covenant and agree as follows.
1. DEFINITIONS. The following terms shall have the following
meanings:
(a) "Adult Movies Business" means any and all present or
contemplated satellite broadcast services on television or any other medium,
including cable television and the Internet, which broadcasts, replays,
and/or otherwise exploits feature length adult programming and all related
promotional content and other programming of a non-rated or X-rated nature
and whose main theme embodies nudity and/or sexually explicit material
between consenting adults and such other related business assets as are
necessary for the operation thereof.
(b) "Purchase Agreement" shall mean the Asset Purchase Agreement
between New Frontier Media, Inc. and Colorado Satellite Broadcasting, Inc.
as buyers and Fifth Dimension Communications (Barbados) Inc. and Merlin
Sierra, Inc., as sellers, dated September 5, 1997.
2. NONCOMPETITION. During the period commencing on the Closing Date
of the Purchase Agreement, and ending on the expiration of five years
following that date, Sellers and their officers or directors shall not,
directly or indirectly, manage, operate, join, advise, control, or be
connected as an officer, director, employee, partner, guarantor, adviser, or
consultant in or beneficially own or control, directly or indirectly, ten
(10) percent or more of the voting, profit sharing, or equity interests in,
any corporation, partnership, joint venture, or other business venture (an
"Interest in a Business") which competes in the Adult Movies Business of
Buyers in any location throughout the world.
1
<PAGE>
3. CONFIDENTIALITY. Sellers shall keep confidential all of and shall
not disclose to any other party or provide any other party access to, the
confidential or proprietary information of the assets and services being
acquired by Buyers pursuant to the purchase Agreement not in the public
domain, including but not limited to, information relating to such matters as
Buyers or the Adult Movies Business' products, services, finances, methods of
operation and competition, research data, market reports, distribution
methods, marketing plans and strategies, operational requirements, personnel,
customers and suppliers and distributors, trade secrets, technical
information, processes, systems, procedures, know-how, improvements, price
lists, projections and other financial data, invoices, financial statements,
or any other compilation of information used in the Adult Movies Business
which gives Buyers an opportunity to obtain an advantage over its competitors
who do not know or use such information. This shall include both information
acquired by Sellers before and after the date of this Agreement (collectively
"Confidential Information").
4. NON-SOLICITATION OF EMPLOYEES. For the period commencing on the
Closing Date of the Purchase Agreement, and ending on the expiration date of
five years follow that date, neither Seller shall, either on its own account
or for any person, firm, or company, solicit, interfere with, or endeavor to
cause any officer, employee or consultant of Buyers, who is employed or
otherwise engaged to provide services to buyers, to leave his or her
employment or engagement with Buyers or induce or attempt to induce any such
person to terminate or breach any employment, noncompetition, or
confidentiality agreement such person may have with Buyers.
5. NON-SOLICITATION OF CUSTOMERS. For the duration of this
Agreement, Sellers shall not solicit, induce, or attempt to induce any past
or current customer or distributor of Buyers to do business with Sellers or
any affiliate in regard to a matter included in the Adult Movies Business or
to cease doing business in whole or in part with Buyers.
6. STAY OF TIME. In the event Sellers violate any provision of this
Agreement, the running of the term of this agreement shall be automatically
tolled starting on the day of such violation and resuming on the date such
violation ceases.
7. EQUITABLE RELIEF. The parties acknowledge and agree that in the
event of any breach of this Agreement by Sellers (i) Buyers' remedies at law
are and will be inadequate; (ii) such breach will substantially diminish the
value of the assets proprietary interest that are being acquired by Buyers
through the Purchase Agreement; and (iii) will cause irreparable injury in a
short period of time. In the event of a breach or threatened breach by
Sellers of the provisions of this Agreement, the parties hereto agree that
Buyers shall be entitled to equitable relief to protect its interests
therein, including, but not limited to, preliminary and permanent injunctive
relief. Such relief and all other rights and remedies of Buyers provided
herein shall be cumulative with any other rights provided to it in the
Purchase agreement or otherwise provided to it under applicable law and
nothing herein shall preclude Buyers from pursuing any other remedies
available to it for a breach or threatened breach, including without
limitation the recovery of damages for Sellers.
2
<PAGE>
8. NOTICES. (a) In the event a party believes that there has been a
breach of this Agreement, it shall notify in writing the other party of the
belief and provide a brief statement of the basis for such belief, provided
that any failure to give such notice shall not act as a waiver of or
otherwise affect in any way any rights or remedies the non-breaching party
may have or relieve the other party from any duty or liability hereunder. In
the event either Seller acquires or comes to own, control, directly or
indirectly, an interest in a business, whether voluntarily or involuntarily,
which business may reasonably be deemed to compete with the Adult Movies
Business, Sellers shall promptly notify Buyers of such fact and identify the
interest in the business and the nature of such business's activities as they
may relate to the Adult Movies Business.
(b) All notices or other communications which may be or are required
to be given under this Agreement shall be in writing and shall be deemed to
have been duly given on the date of service if served personally on the party
to whom notice is to be given, or on the third day after mailing if mailed to
a party to whom notice is to be given, by first class registered or
certified, postage prepaid, and properly addressed as follows:
Buyers: New Frontier Media, Inc.
1050 Walnut St. Suite 301
Boulder, CO 80302
Attn.: Mark H. Kreloff
with a copy to: Mark L. Driver, Esq.
The Law Office of Mark L. Driver, P.C.
3300 East First Ave., Suite 600
Denver, CO 80206
Sellers: Douglas Duncan
2500 Don Reid Drive
Ontario, Canada
K1H8P5
Stewart Duncan
2500 Don Reid Drive
Ontario, Canada
K1H8P5
Daniel Bender
27357 Valley Center Road
Valley Center, CA 92082
with a copy to: Jamie Wyllie, Esq.
Yegendorf, Brazeau, Sell, Prehogan &
Wyllie
55 Metcalfe Street, Suite 750
3
<PAGE>
Ontario, Canada
K1H6L5
9. SUCCESSORS AND ASSIGNS. This Agreement shall be binding on and
inure to the benefit of the parties hereto and their permitted and respective
heirs, successors and assigns. No party shall have the right to assign this
Agreement without the prior written consent of the other party, except that
Buyers shall have the right to assign its rights hereunder to any successor
in interest of the Adult Movies Business whether by merger, consolidation,
purchase of assets or otherwise, or any other person or entity controlling or
which at any time controls or is under common control with either Buyer or
any of their subsidiaries, or successors.
10. SEPARATE COVENANTS. This Agreement shall be deemed to consist of
a series of separate covenants. Sellers expressly agree that the character,
duration, and geographical scope of this Agreement are reasonable in light of
the circumstances as they exist on the date upon which this Agreement has
been executed. However, should a determination nonetheless be made by a court
of competent jurisdiction at a later date that the character, duration or
geographic scope of this Agreement is unreasonable in light of the
circumstances as the now or then exist, then it is the intention and
agreement of the parties that this Agreement shall be construed by the court
in such a manner as to impose only those restrictions on the conduct of
Sellers which are reasonable in light of such circumstances and are necessary
to assure Buyers of the intended benefit of this Agreement. If any of the
provision of this Agreement shall otherwise contravene or be deemed invalid
under the laws of any state or jurisdiction, such contravention or invalidity
shall not invalidate all of the provisions of this Agreement but rather is
shall be construed as not containing the provisions or provisions
contravening or invalid under the laws of the state or jurisdiction, and the
all other rights and obligations created hereby shall be construed and
enforced accordingly.
11. GOVERNING LAW. This Agreement shall be construed and enforced in
accordance with and governed by the laws of the State of Colorado, without
regard to principles of conflicts of laws and the parties irrevocable commit
to the jurisdiction and venue of the United States District Court for the
District of Colorado to resolve any dispute arising hereunder or related
hereto.
12. AMENDMENTS AND WAIVERS. Any amendments or modifications to this
Agreement must be in writing signed by each party hereto or their successors
or assigns. No breach of any covenant, agreement, warranty, or representation
shall be deemed waived unless expressly waived in writing by the party who
might assert such breach. No waiver of any right hereunder shall operate as a
waiver of any other right or the same or similar right on another occasion.
13. ATTORNEYS' FEES. In the event that any action or proceeding is
commenced by any party hereto for the purpose of enforcing any provision of
this Agreement, the parties
4
<PAGE>
to such action or proceeding may receive as part of any award, judgment,
decision, or other resolution of such action or proceeding, their costs, and
reasonable attorneys' fees.
14. ENTIRE AGREEMENT. This Agreement and the agreements referred to
herein contain the entire understanding of the parties and supersede all
prior or contemporaneous agreements and understandings.
15. COUNTERPARTS. This Agreement may be executed by the parties in
separate counterparts, each of which when so executed and delivered shall be
an original, but all such counterparts shall together constitute but one and
the same instrument.
In Witness Whereof, the parties hereto have executed this Agreement
on the date first above written.
Buyers: New Frontier Media, Inc.
By:
----------------------------
Its:
----------------------------
Colorado Satellite Broadcasting, Inc.
By:
----------------------------
Its:
----------------------------
SELLERS:
Fifth Dimension Communications
(Barbados) Inc.
By:
----------------------------
Its:
----------------------------
Merlin Sierra, Inc.
By:
----------------------------
Its:
----------------------------
5
<PAGE>
SCHEDULE 12.6
CONSULTING CONTRACT - DANIEL BENDER
[attached]
<PAGE>
EMPLOYMENT AGREEMENT
THIS AGREEMENT, dated as of ________________ 1997, is made and
entered into by and between COLORADO SATELLITE BROADCASTING, INC., a Colorado
corporation ("Company") and DANIEL BENDER ("Employee"). For the definition of
certain terms used in this Agreement, see Section 6 below.
The Company and Employee agree as follows:
Section 1. EMPLOYMENT.
1.1 ENGAGEMENT. The Company will employ Employee, and Employee
will accept employment, as an Employee of Company for the Term, subject to
and in accordance with the provisions of this Agreement.
1.2 DUTIES. During the Term, Employee will serve Company in
the capacity of Vice President or such other capacity as may be designated by
the Board, or C.E.O. Employee's duties as an Employee of Company include all
of the duties normally associated with such capacity, including but not
limited to those listed in Schedule A. Additionally, Employee's duties will
include such other activities, responsibilities and duties as may reasonably
be assigned from time to time by the C.E.O. or the Board. If Employee is
elected or appointed by the Board as an officer or other position with
Company, Employee will perform the duties of such position as described in
the Company's bylaws or as determined from time to time by the Board.
1.3 ATTENTION AND EFFORT. During normal business hours, for
such periods of time as the Company has specific projects assigned to
Employee, Employee will devote Employee's best efforts, entire productive
time, ability and attention to the business of Company. For such periods of
time as there are no specific projects assigned to Employee, Employee shall
only be required to devote such time, effort and attention to the affairs of
the Company as may from time to time be requested by the President or Board,
subject to the agreement of Employee. Further, during the Term, Employee will
not, without Company's prior written consent, directly or indirectly engage
in any employment, consulting or other activity which would interfere or
conflict with the performance of Employee's duties or obligations to Company
or which would directly or indirectly compete with Company.
Section 2. COMPENSATION.
2.1 BASE SALARY. During the Term, Company will pay Employee a
base salary payable bi-weekly, as follows:
a. Commencing on the date hereof, the base salary shall
initially be $100,000.00 per year.
2.2 INCENTIVE COMPENSATION. In addition to base salary
described in paragraph 2.1, Employee shall be entitled to participate as an
executive officer in the Company's
<PAGE>
Management Bonus Plan, as such plan may be adopted and modified from time to
time by the Board of Directors during the Term.
2.3 STOCK INCENTIVE PLAN. Employee shall be entitled and
eligible to participate in the Stock Plan of New Frontier Media, Inc., the
Company's parent company, as an executive officer and key employee of the
Company on the same basis as other executive officers of New Frontier Media,
Inc., as determined and modified from time to time by the Board of Directors.
All incentive stock options granted to Employee pursuant to the Stock Plan
shall permit the cashless exercise of such options in conformity with
applicable legal requirements.
2.4 BENEFITS. During the Term, Employee will be entitled to
participate in such fringe benefit programs (E.G., medical, dental,
disability, life insurance and vacation programs) as may be provided from
time to time by the Board or any person or committee appointed by the Board
to determine fringe benefit programs, all subject to and in accordance with
the eligibility and other requirements of such programs. Additionally,
Employee shall be entitled to receive an automobile expense allowance of not
more than $600.00 per month, plus automobile insurance.
2.5 EXPENSES. During the Term, Company will reimburse Employee
for reasonable out-of-pocket expenses incurred by Employee in performance of
service for Company under this Agreement (E.G., including business class
airfare for international flights and corporate upgrade for domestic flights
and other reasonable business transportation expenses, lodging and food
expenses incurred while traveling on Company business), and an entertainment
expense allowance in an amount approved by the Board, all subject to such
policies and other requirements as Company may from time to time establish
for its Employees generally.
2.6 WITHHOLDING AND OFFSET. Payment of the base salary and any
other amounts to Employee will be subject to such withholding and offset only
as required for tax purposes or legal process (E.G., for deposition subpoena)
or as consented to by Employee.
2.7 INDEMNIFICATION. Subject to applicable law, the Company
shall indemnify and hold Employee harmless from any and all loss, judgments
or claims Employee may suffer in the proper discharge of Employee's duties
hereunder, including, but not limited to attorney's fees and court costs.
Section 3. TERMS AND TERMINATION.
3.1 TERM. This Agreement shall commence upon execution and closing of
Asset Purchase Agreement dated September 5, 1997 between Colorado Satellite
Broadcasting, Inc. and New Frontier Media, Inc, as buyers and Fifth Dimension
Communications (Barbados) Inc. and Merlin Sierra, Inc., as sellers, and shall
continue in full force and effect for a period of one (1) year thereafter,
unless terminated earlier by operation of and in accordance with this
Agreement. This Agreement may only be extended thereafter by mutual
agreement, unless terminated earlier by operation of and in accordance with
this Agreement.
<PAGE>
3.2 TERMINATION. The Term will terminate upon the first of the
following to occur:
(a) Upon the expiration of the term of this agreement;
(b) Company's termination of Employee's Employment for
Cause pursuant to paragraph 3.3;
(c) Employee resigns from employment as an Employee
of Company pursuant to paragraph 3.4;
(d) Employee terminates his employment for Cause
pursuant to paragraph 3.5,
(e) the death of Employee;
(f) the disability of Employee resulting from injury,
illness or disease, whether of a mental or
physical nature, which substantially impairs or
prevents the ability of Employee to satisfactorily
perform Employee's duties and obligations under
this Agreement for a period of 90 days;
(g) the Change in Control of the Company; or
If the Employee is terminated pursuant to subparagraph 3.2(a), (b),
(c), (e), or (f) the Employee shall be entitled to no additional compensation
under Section 2 herein. However, if an Employee is terminated pursuant to
subparagraphs 3.2(d) or (g), Employee shall be entitled to receive the
Termination Payments provided for in Section 3.8 below.
3.3 TERMINATION FOR CAUSE. Company may at any time terminate Employee's
employment for Cause without prior notice.
3.4 RESIGNATION. Employee may at any time resign from employment with
Company by giving Company notice of thirty (30) days prior to the effective
date of such termination.
3.5 TERMINATION FOR CAUSE BY EMPLOYEE. Employee may at any time
terminate Employee's employment for Cause without prior notice.
3.6 TERMINATION DUE TO CHANGE IN CONTROL. Employee may terminate
Employee's employment due to a Change in Control without prior notice.
3.7 DISABILITY. If in the event of a disability described in paragraph
3.2(f) Company decides not to terminate Employee's employment and Employee is
entitled to receive payments (I.E., in lieu of wages or other compensation
for employment) on account of such disability under any fringe benefit
program provided by Company, the base salary described in paragraph 2.1 will
be reduced to the extent of such entitlement.
3.8 TERMINATION PAYMENTS. In the event the Employee's employment is
terminated pursuant to paragraph 3.2(d) or (g), the Company shall be
obligated to pay to Employee Termination Payments equal to the pro rata
portion of the Employee's average annualized total compensation under this
Agreement, including base salary, incentive
<PAGE>
compensation, commissions, bonuses, fringe benefits and other forms of
compensation, remaining on the Term of this Agreement as defined in Section
3.1 above. Such Termination Payments shall be due and payable in full within
thirty (30) days following the date of such Termination.
3.9 RETURN OF COMPANY PROPERTY. Upon termination of the Term, Employee
will deliver to Company any and all property of Company which is in
Employee's possession or control (including, but not limited to, any and all
Materials).
3.10 SURVIVAL. Sections 4 and 5, together with all other provisions of
this Agreement that may reasonably be interpreted or construed to survive any
termination of the Term, will survive any termination of the Term.
Section 4. CONFIDENTIALITY.
4.1 CONFIDENTIAL INFORMATION. In the course of Employee's employment
with Company, Employee will have access to certain Confidential Information.
Employee will use and disclose Confidential Information solely for the
purposes for which it is provided and will take reasonable precautions to
prevent any unauthorized use or disclosure of the same. Except as my be
required by legal process, Employee will not use or disclose any Confidential
Information (a) other than as required in the course of Employee's employment
with the Company, (b) for Employee's own personal gain, or (c) in any manner
contrary to the best interests of Company.
4.2 PROPRIETARY INFORMATION OF OTHERS. Except as may be required by
legal process, Employee will not use in the course of Employee's employment
with Company, or disclose or otherwise make available to Company any
information, documents or other items which Employee may have received from
any other person (E.G., a prior employer) and which Employee is prohibited
from so using, disclosing or making available (E.G., by reason of any
contract, court order, law or obligation by which Employee is bound).
4.3 WORK PRODUCT. All Work Product which Employee conceives, develops or
first reduces to practice, either alone or with others, during the Term will
be the sole and exclusive property of Company, together with any and all
related Intellectual Property Rights. The foregoing applies to all Work
Product which relates to Employee's performance of services under this
Agreement, Company's Field of Business or Company's actual or demonstrably
anticipated research or development and whether or not such Work Products are
conceived, developed or first reduced to practice during normal business
hours or with the use of any equipment, supplies, facilities, personnel,
Confidential Information or other resource of Company.
4.4 DISCLOSURE AND PROTECTION OF WORK PRODUCTS. Employee will disclose
all Work Products described in paragraph 4.3 to Company, promptly and in
writing. At Company's request and at Company's expense, Employee will assist
Company or its designee in efforts to protect such Work products. Such
assistance may include, but is not necessarily limited to, the following: (a)
making application in the United States and in foreign countries for a patent
or copyright on any Work Products specified by Company;
<PAGE>
(b) executing documents of assignment to Company or its designee of all
Employee's right, title and interest in and to any Work Product and related
Intellectual Property Rights; and (c) taking such additional action
(including, but not limited to, the execution and delivery of documents) to
perfect, evidence or vest in Company or its designee all rights, title and
interest in and to any Work Product and any related Intellectual Property
Right.
4.5 MATERIALS. All Materials and related Intellectual Property Rights
will be the sole and exclusive property of Company, whether or not such
Materials are marked with any Intellectual Property Right notice of Company
or Employee. All such Materials authored, made, conceived or developed by
Employee or made available to Employee (or any copies or extracts thereof)
will be held by Employee in trust solely for the benefit of Company. Employee
will use such Materials only as required in the course of Employee's
employment with Company or as otherwise authorized in writing by Company.
4.6 NOTICE. This Agreement does not apply to any invention, process,
list or other work product for which no equipment, supplies, facility or
trade secret information of Company was used, and which was developed
Employee prior to the term of this Agreement or which was developed entirely
on Employee's own time during the term of this Agreement, unless: (a) the
invention relates (i) directly to the Company or (ii) to Company's actual or
demonstrable anticipated research or development; of (b) the invention
results from any work performed by Employee for Company.
Section 5. NONCOMPETITION AND NONSOLICITATION.
5.1 NONCOMPETITION. During the Term, Employee will not directly or
indirectly be employed by, own, manage, operate, join, control or participate
in the ownership, management, operation or control of or be connected with
any business activity which is within Company's Field of Business within a
radius of 100 miles from any geographical territory or location where the
Company transacts business. For purposes of the foregoing, Employee will be
deemed to be connected with such business if the business is carried on by:
(a) a partnership in which the Employee is general or limited partner; (b) a
corporation of which Employee is a shareholder (other than a shareholder
owning less than 5% of the total outstanding shares of the corporation),
officer, or director, or is any employee, consultant, agent, member or other
representative.
5.2 NONSOLICITATION. During the Term, employee will not directly or
indirectly solicit or entice any of the following to cease, terminate or
reduce any relationship with Company or to divert any business from Company:
(a) any employee, consultant or representative of Company; (b) any contractor
or supplier of Company; (c) any customer or client of Company; or (d) any
prospective customer or client from which Employee solicited business within
the last year of the Term. Further, Employee will not directly or indirectly
disclose the names, addresses, telephone numbers, compensation, or
arrangements between Company and any person or entity described in (a), (b)
or (c) above to any competitor of Company.
Section 6. DEFINITIONS.
<PAGE>
Whenever used in this Agreement with initial letters capitalized, the
following terms will have the following specified meanings:
6.1 "BOARD" means Company's Board of Directors.
6.2 "CAUSE," for purposes of paragraph 3.3, shall include the
occurrence of any of the following:
a. The Employee commits material breach of the terms of this
Agreement, which shall remain uncured for a period of thirty (30) days after
written notice by the Company of such breach;
b. The Employee is shown to have engaged in any act of
dishonesty detrimental to the Company, or fraud upon the Corporation, any of
its affiliated companies, or any of its customers or clients;
c. The Employee fails to devote his full time, attention and
efforts to the business and affairs of the Corporation or its affiliated
companies which condition remains uncured for a period of thirty (30) days
after written notice by the Company; or
d. The Employee has been grossly negligent in the performance
of his employment duties or responsibilities which condition remains uncured
for a period of thirty (30) days after written notice by the Company.
6.3 "CAUSE," for purposes of paragraph 3.5, shall include the occurrence
of any of the following:
a. The breach or violation by the Company of any of the
material terms of this Agreement, which shall remain uncured for a period of
thirty (30) days after written notice by Employee of such breach;
b. Any move of the Company or its principal officers
resulting in or any other requirement that the Employee, without his consent,
change his principal residence; or
c. The Company has shown to have engaged in any active
material dishonesty or fraud upon the Employee.
6.4 "CHANGE OF CONTROL" means any transaction of the Company involving
(i) the merger or consolidation of the Company into or with another entity
where the Company's shareholders receive less than 50% of the outstanding
voting securities of the new or continuing entity, (ii) the sale of all or
substantially all of the Company's assets, (iii) any person not already a
stockholder of the Company becoming a beneficial owner, directly or
indirectly, of the securities of the Company representing 50% or more of the
combined voting power of the Company's then outstanding securities, (iv) a
change in the majority of the Board of Directors of the Company, or (v) the
Company terminating its business or liquidating its assets.
<PAGE>
6.5 "C.E.O." means Company's Chief Executive Officer.
6.6 "COMPANY'S FIELD OF BUSINESS" means any of the fields of the
Company's business. On the date of the Agreement, Company's Field of Business
includes, but is not necessarily limited to, the following: satellite
broadcasting of adult programming material.
6.7 "CONFIDENTIAL INFORMATION" means any information that is
confidential, proprietary or trade secret information of Company or any of
its customer or clients or any other information the use of which by Company
is prohibited or restricted (E.G., by reason of any contract, court order,
law or other obligation by which Company is bound). "Confidential
Information" may include, but is not necessarily limited to, technology,
computer programs, business plans, marketing plans, information as to
existing or future products or services of Company, financial projections,
unpublished works of original authorship, customer, distributor and supplier
lists, financial information and trade secrets.
Notwithstanding the foregoing, the restrictions on disclosure and
use of information and materials as set forth in Section 4 shall not apply to
the following, and the following is not confidential or proprietary
information: (1) any information or materials which were generally available
to the public at the time made available to Employee by the Company; (2) any
information or materials which become, without breach of Section 4 and
through no fault of Employee, generally available to the public; (3) any
information or materials which Employee has received from other sources prior
to the date of this Agreement, subject to no restrictions on disclosure
applicable to Employee; and (4) any information or materials which Employee
at any time lawfully obtains from a third party who is not under any
obligation of secrecy or confidentiality to the Company, under circumstances
permitting disclosure by Employee to others without restriction.
6.8 "INTELLECTUAL PROPERTY RIGHT" means any patent, copyright, trade
secret, trade name, trademark or other intellectual property right.
6.9 "MATERIALS" means hardware, software, programs, manuals, drawings,
designs, articles, writings, data, notes, memorandum, manuscripts, notebooks,
proposals, work plans, interim and final report, project files, client
contract records and other tangible manifestations of any Confidential
Information or Work Products.
6.10 "PRESIDENT" means Company's President.
6.11 "TERM" means the term of Employee's employment as an Employee of
Company pursuant to this Agreement.
6.12 "WORK PRODUCT" means any customer, supplier and distributor list and
other acquired accounts, invention, discovery, concept or idea (including,
but not necessarily limited to, hardware, software programs, or processes,
techniques, know-how, methods, systems, improvements, analytical reports and
other developments.)
Section 7. MISCELLANEOUS.
<PAGE>
7.1 COMPLIANCE WITH LAWS. In the performance of this Agreement, each
party will comply with all applicable laws, regulations, rules, orders and
other requirements of governmental authorities having jurisdiction.
7.2 EQUITABLE RELIEF. Employee acknowledges that: the provisions of
Sections 4 and 5 are essential to Company; Company would not enter into this
Agreement if it did not include such provisions; the damages sustained by
Company as a result of any breach of such provisions cannot be adequately
remedied by damages; and, in addition to any other right or remedy that
Company may have (E.G., under this Agreement, by law or otherwise), Company
will be entitled to injunctive and other equitable relief to prevent or
curtail any breach of any such provisions.
7.3 NONWAIVER. The failure of either party to insist upon or enforce
strict performance by the other of any provision of this Agreement or to
exercise any right, remedy or provision of this Agreement will not be
interpreted or construed as a waiver or relinquishment to any extent of such
party's right to consent or rely upon the same in that or any other instance;
rather, the same will be and remain in full force and effect.
7.4 ENTIRE AGREEMENT. This Agreement constitutes the Entire Agreement,
and supersedes any and all prior Agreements, between Company and Employee. No
amendment, modification or waiver of any of the provision of this Agreement
will be valid unless set forth in a written instrument signed by the party to
be bound thereby.
7.5 APPLICABLE LAW. This Agreement will be interpreted, construed and
enforced in all respects in accordance with the local laws of the State of
Colorado, without reference to its choice of law rules.
7.6 ATTORNEYS FEES. In the event that either party consults or retains
an attorney to enforce the terms of this Agreement, the prevailing party in
any such dispute or litigation shall be entitled to recover from the other
party its reasonable attorneys fees and costs incurred.
7.7 SEVERABILITY. If any of the provisions of this Agreement are held to
be invalid or unenforceable, the remaining provisions shall nevertheless
continue to be valid and enforceable to the extent permitted by law.
COMPANY: COLORADO SATELLITE BROADCASTING, INC.,
a Colorado corporation
By:
------------------------------------
Its:
-----------------------------------
EMPLOYEE:
-----------------------------------------------
Daniel Bender
<PAGE>
SCHEDULE 12.7
A/V PRODUCTION AGREEMENT
[Attached]
<PAGE>
SCHEDULE 12.7
A/V PRODUCTION AGREEMENT
THIS AGREEMENT made the _____ day of ___________, 1997.
BETWEEN:
COLORADO SATELLITE BROADCASTING, INC.
("CSB")
THE FIRST PARTY
AND:
DIORIO PRODUCTIONS INC.
("DPI")
THE SECOND PARTY
WHEREAS:
(1) CSB operates several satellite television channels;
(2) DPI is in the business of developing and producing television and film
products; and
(3) CSB desires to cause DPI to develop and produce broadcast quality
audio-visual promotions and interstitials for its channels on the
terms set forth in this Agreement.
FOR VALUABLE CONSIDERATION, the receipt and sufficiency, of which are
acknowledged, the parties agree as follows:
1. Subject to receiving broadcast quality, commercially acceptable
audio-visual promotional pieces from DPI in a timely manner, CSB agrees to
purchase Cdn$270,000 (the "Retainer") in services and products from DPI
(in addition to reimbursement to DPI for any production disbursements
incurred by DPI, with CSB's prior approval, in performing such services or
supplying such products, which disbursements shall be paid forthwith by CSB
upon invoice from DPI). The Retainer shall be paid to DPI in 9 equal
monthly installments of Cdn$30,000 commencing _______. DPI shall invoice
CSB for
<PAGE>
2
its services inaccordance with its standard billing practices and shall
apply payments of the Annual Retainer against such invoices. If and when
the cumulative amount of invoices issued by DPI exceed Cdn$270,000,
invoices shall become payable within 60 days of invoice date.
2. DPI agrees to create, as an agent of CSB, derivative works of films,
photographs and other audio-visual materials ("Audio-Visual Works") for
the purpose of promoting or advertising and producing interstitials of
such Audio-Visual Works, provided that all such derivative works must be
suitable for broadcasting "in the clear" (i.e., not contain x-rated or
xxx-rated material). DPI is granted no other rights herein and DPI does
not have the right to alter the fundamental character of the
Audio-Visual Works or to make any other use of the Audio-Visual Works
provided to it other than for the purposes of this Agreement. The
derivative works created on behalf of CSB shall be the property of CSB.
DPI warrants that the services it provides under this Agreement to CSB
shall be substantially similar in quantity, quality, and price to those
services provided by DPI to 1043133 Ontario Inc. in connection with the
adult movies business which was acquired by CSB from 1043133 Ontario Inc.
3. The parties expressly agree that in all respects pertaining to this
Agreement and its subject matter their rights, obligations and remedies
shall be governed exclusively by the terms of this Agreement and that
this Agreement supersedes any prior understandings and agreements
between them with respect to its subject matter. There are no
representations, warranties, terms, conditions, undertakings or
collateral agreements, express or implied or statutory, between the
parties other than as expressly made in this Agreement. For greater
certainty, the parties expressly exclude the application of or recourse
to any rights, obligations and remedies in tort.
4. No provision in this Agreement may be amended or waived except in writing.
5. Should any dispute be commenced between the parties concerning any provision
of this Agreement or the rights and duties of any party in relation
thereto, the party prevailing in such dispute shall be entitled, in
addition to such other relief as may be granted, to a reasonable sum as
and for its attorneys fees in such connection with enforcing its rights
or defending itself, as the case may be.
6. Neither party may, without the prior written consent of the other party,
assign, sublease or otherwise transfer its rights or obligations hereunder.
7. This Agreement shall be given by and construed in accordance with the laws
in force in the State of Colorado and federal laws applicable therein.
8. The parties agree that this Agreement is an agreement for the purchase of
services and does not create any partnership or joint venture between the
parties.
9. This Agreement and any amendment thereto may be executed in any number of
counterparts, all of which taken together, shall constitute one and the
same instrument,
<PAGE>
3
and any of the parties hereto may execute this Agreement by signing any such
counterpart.
10. This Agreement shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and assigns.
11. This Agreement is non-exclusive and CSB shall have the right to contract
with other parties for similar services. Further, nothing herein stated
shall obligate or require CSB to include or use the derivative works
provided by DPI.
IN WITNESS OF WHICH the parties have executed this Agreement.
) COLORADO SATELLITE
) BROADCASTING, INC.
)
)
) Per:
) ------------------------------------
)
) DIORIO PRODUCTIONS INC.
)
)
)
) Per:
) ------------------------------------
)
<PAGE>
ASSET PURCHASE AGREEMENT
This Asset Purchase Agreement (the "Agreement") is made to be effective
September 5, 1997 (the "Effective Date"), among NEW FRONTIER MEDIA, INC., a
Colorado corporation, COLORADO SATELLITE BROADCASTING, INC. ("Buyer"), a wholly
owned subsidiary of New Frontier Media, Inc., and 1043133 ONTARIO INC., an
Ontario corporation ("Seller"). New Frontier Media, Inc. and Buyer are
collectively referred to in this Agreement as "Buyers."
This Agreement sets forth the terms and conditions upon which Buyers agree
to purchase from Seller, and Seller agrees to sell to Buyers, certain properties
and assets of Seller ("Subject Assets") relating to the "Adult Movies Business"
of Seller.
NOW THEREFORE, in consideration of the mutual covenants, agreements,
representations and warranties contained in this Agreement, the parties agree as
follows:
DEFINITIONS
"124 Agreement" means the asset purchase agreement made on the same date as this
Agreement among the Buyers and 1248663 Ontario Inc., wherein the Buyers agreed
to purchase certain satellite uplinking and playback equipment and certain call
center equipment and related assets from 1248663 Ontario Inc. and Merlin Sierra,
Inc.
"5DBC Agreement" means the asset purchase agreement made on the same date as
this Agreement among the Buyers and Fifth Dimension Communications (Barbados)
Inc.
"Adult Movies Business" means any and all present or contemplated satellite
broadcast services on television or any other medium, including cable television
and the Internet, which broadcasts, replays, and/or otherwise exploits feature
length adult programming and all related promotional content and other
programming of a non-rated or X-rated nature and whose main theme embodies
nudity and/or sexually explicit material between consenting adults and such
other related business assets as are necessary for the operation thereof.
"adverse or adversely", when used alone or in conjunction with other terms
(including without limitation "affect," "change" and "effect"), means any event
discovered by either party after the date hereof which is reasonably likely in
the respective business judgment of either Buyers or Seller, as the case may be,
to be expected to (a) adversely affect the validity or enforceability of this
Agreement, or (b) adversely affect the business, operation, management or
properties of Seller or Buyers, or (c) impair Seller or Buyers, or (d) adversely
affect the respective aggregate rights and remedies of either party under this
Agreement. Notwithstanding the foregoing no event affecting the adult movie
industry generally shall be deemed to constitute an adverse change, have an
adverse effect or to adversely affect or effect.
"Agreement" means this Agreement as originally in effect, including unless the
context otherwise specifically requires, all schedules and all exhibits hereto,
and as any of the same may
1
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from time to time be supplemented, amended, modified or restated in the manner
herein or therein provided.
"Applicable Law" shall mean any Law of any Authority, whether domestic or
foreign, including without limitation all federal and state securities and
environmental laws, to which a person or entity is subject or by which it or any
of its business or operations is subject or any of its property or assets is
bound.
"Authority" means any governmental or quasi-governmental authority, whether
administrative, executive, judicial, legislative or other, or any combination
thereof, including without limitation, any federal, provincial, state,
territorial, county, municipal or other government or governmental or
quasi-governmental agency, arbitrator, authority, board, body, branch, bureau,
central bank or comparable agency, or Entity, commission, corporation, court,
department, instrumentality, master, mediator, panel, referee, system, or other
political unit or subdivision or other Entity of any of the foregoing whether
domestic or foreign.
"Buyers' Disclosure Schedule" means the schedule attached as SCHEDULE 8.2(a).
"Closing" means the closing of the transactions contemplated herein and "Closing
Date" means the date on which the closing takes place.
"Collateral Agreements" means agreements and other documents executed or
required to be executed pursuant to the terms of this Agreement.
"Entity" means any corporation, firm, unincorporated organization, association,
partnership, limited liability company, trust (inter vivos or testamentary),
estate of a deceased, individual, business trust, joint stock company, joint
venture or other organization, entity or business, whether acting in an
individual, fiduciary or other capacity, or any Authority.
"Governmental Authorizations" means all approvals, concessions, consents,
franchises, licenses, permits, and other authorizations of all applicable
Authorities.
"material, materially or materiality", unless specifically stated otherwise,
shall be determined without regard to the fact that various provisions of this
Agreement set forth specific dollar amounts.
"New Frontier" means New Frontier Media, Inc.
"Ottawa Call Center" means the subscription and pay-per-view call center at
Ottawa, Ontario now operated by Seller.
"Private Authorizations" means all approvals, concessions, consents, franchises,
licenses, permits, and other authorizations of all persons (other that
Authorities) including without limitation those with respect to copyrights,
computer software programs, patents, service marks, trademarks, trade names,
technology and know-how.
"Subject Assets" means:
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(a) any and all trademarks, proprietary rights and other intellectual
property rights owned by Seller and associated with its Adult Movies
Business. These include but are not necessarily limited to the trade
names, trademarks and/or service marks listed on SCHEDULE 1(a),
"Trademarks List," and any goodwill associated with such trade names,
trademarks and/or service marks;
(b) all subscriptions for its Adult Movies Business as of the Date of
Closing, including all subscriber lists, past and present, and any
other marketing data related thereto, in the possession of Seller, as
described in SCHEDULE 1(b), "Subscribers List" (and it is understood
that the subscriber lists shall be delivered on disk(s) in electronic
form only because of the length of such lists);
(c) a complete list of all advertisers, marketing partners and vendors
used by Seller in relation to its Adult Movies Business and related
services, with contact names, mailing addresses, and phone and fax
numbers; as set forth in SCHEDULE 1(c) "Vendors List";
(d) all rights, title and interest Seller may have in 1-800 phone numbers
used for its Adult Movies Business and related services and in any
World Wide Web address and web sites used in its Adult Movies
Business;
(e) upon request of Buyers, Seller shall provide copies of all papers,
computerized databases, and records in Seller's custody or control
relating to any or all of the above described assets and the operation
of Seller's Adult Movies Business, including but not limited to all
sales and subscription records, maintenance and production records,
but excluding accounting and financial records and personnel and labor
relations records;
(f) all rights, title and interests in any permits, licenses, franchises,
consents or authorizations issued by, and all registrations and
filings with, any government agency solely in connection with Adult
Movies Business of Seller, whenever issued or filed, (including but
not limited to any permits or licenses from the Canadian
Radio-Television and Telecommunications Commission and any permits or
licenses from the Federal Communications Commission) excepting only
those which by law are non-transferable or those which have expired;
(g) all other assets to be transferred from Seller to Buyer under SECTION
1 of this Agreement; and
(h) any tort or insurance proceeds arising out of any damages or
destruction or any of the Subject Assets between the date of this
Agreement and the Closing Date to the extent required to repair or
replace any Subject Asset.
"Transactions" means the transactions contemplated by this Agreement and all
Collateral Agreements.
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"Uplink Facility" means the current facility located at 2500 Don Reid Drive,
Ottawa, Ontario and now used by Seller for uplink, playback and broadcast
programming of its Adult Movies Business.
ARTICLE 1. TRANSFER OF ASSETS
Subject to the terms and conditions set forth in this Agreement, Seller agrees
to sell, convey, transfer, assign and deliver to Buyer, and Buyers agrees to
purchase from Seller at the Closing described in ARTICLE 3, all of the Subject
Assets, whether tangible, intangible, real, personal or mixed, and wherever
located, including those assets set forth in the lists of SCHEDULES 1(a) through
(c) and as further described in this ARTICLE 1.
1.1 SOFTWARE. Pursuant to SCHEDULE 1.1, the First Link License Agreement, Seller
shall provide to Buyers a non-exclusive royalty free license to use one
networkable copy of version 2.0 or any updated version of "First Link"
subscription management software. The rights granted to Buyers shall not be
assigned, licensed or otherwise transferred voluntarily or by operation of law,
or otherwise, except pursuant to the purchase of substantially all of the
outstanding capital stock or assets of Buyers, without the written consent of
Seller. Buyers acknowledge that, prior to Closing, Seller may acquire
additional software for use in connection with its Adult Movies Business and
Buyers agree on Closing to pay 50% of the actual costs thereof (to a maximum of
US$32,608.69).
1.2 INVESTMENT CANADA ACT. The parties agree that the Transactions do not
require notice, review, approval or allowance under the INVESTMENT CANADA ACT
and it is not a condition precedent to the Closing of the Transactions that any
notice be given or approval, allowance or consent be obtained in respect
thereof. Notwithstanding anything to the contrary in this Agreement, no
representation, warranty or covenant given by any party under or pursuant to
this Agreement is intended or shall be deemed to include a representation,
warranty or covenant related to the INVESTMENT CANADA ACT.
ARTICLE 2. PURCHASE PRICE
2.1 PAYMENT OF PURCHASE PRICE. In consideration for the transfer and assignment
of the Subject Assets and in consideration of the representations, warranties
and covenants of Seller set forth herein, Buyers on the conditions set forth
herein:
(a) shall pay, subject to ARTICLE 5, an earnest money deposit in the
amount of US$5,000.00;
(b) shall deliver to Seller at the Closing (as hereinafter defined)
US$500,000.00 plus taxes as provided in ARTICLE 6, payable in cash as
more fully described in SECTION 3.2;
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(c) shall assume and discharge, and shall indemnify Seller against,
liabilities and obligations of Seller under the leases, contracts or
other agreements, if any, specified on SCHEDULE 4 but only to the
extent that such liabilities or obligations accrue on or after the
Closing Date.
2.2 ALLOCATION OF THE PURCHASE PRICE. The parties agree that the Purchase Price
(defined as the sum of the amounts specified in SECTION 2.1(b) shall be
allocated as set forth in SCHEDULE 2.2 and that such allocation will be used by
the parties in reporting the transaction contemplated by this Agreement for tax
purposes.
2.3 ELECTIONS. Seller and Buyers wall on or before the Closing Date jointly
execute an election, in prescribed form and containing the prescribed
information, to have subsection 167(1.1) of the Excise Tax Act (Canada) apply to
the sale and purchase of the Subject Assets hereunder so that no tax is payable
in respect of such sale and purchase under Part IX of the EXCISE TAX ACT
(Canada). The Buyers will file such election with the Minister of National
Revenue within the time prescribed by the Excise Tax Act (Canada).
ARTICLE 3. THE CLOSING
The closing of the purchase and sale of the Subject Assets by Seller to Buyers
(the "Closing") shall take place at 2500 Don Reid Drive, Ottawa, Ontario,
sixty-four (64) days after the date of this Agreement or at such other place
and/or time as the parties may agree in writing (the "Closing Date"). In the
event that the conditions specified in this Agreement have not be fulfilled by
such date, either Seller or Buyers may extend the Closing Date for a period or
periods not exceeding an aggregate of thirty (30) days by written notice to the
other parties.
3.1. SELLER'S OBLIGATIONS AT CLOSING.
(a) At the Closing Seller shall deliver or cause to be delivered to Buyer:
(i) assignment and assumption agreements for personal property
leases, all contracts and agreements of Seller to be assumed in
connection herewith, in form and substance reasonably
satisfactory to Buyers' counsel, and accompanied by all
consents required by this Agreement and the personal property
leases, contracts and agreements being assigned;
(ii) instruments of assignment and transfer (including a bill of
sale) of all the Subject Assets in form and substance
reasonably satisfactory to Buyers' counsel; and
(iii) such other documents as shall be reasonably requested by Buyers
or Buyers' counsel (for example, a BULK SALES ACT affidavit).
(b) Simultaneously, with the consummation of the transfer, Seller, through
its officers, agents and employees, shall put Buyer into L11
possession and
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enjoyment of all the Subject Assets to be sold, conveyed, transferred,
assigned and delivered by this Agreement.
(c) Seller, at any time before or after the Closing Date shall execute,
acknowledge, and deliver further deeds, assignments, conveyances and
other assurances any documents and instruments of transfer, reasonably
requested by Buyers and shall take any other action consistent with
the terms of this Agreement that may be reasonably requested by Buyers
for the purpose of assigning, transferring, granting, conveying and
confirming to Buyers, or reducing to possession, any or all property
and assets to be conveyed or transferred by this Agreement. If
requested by Buyers, Seller further agrees to prosecute or otherwise
enforce in their own names for the benefit of Buyers any claims,
rights, or benefits that are transferred to Buyers by this Agreement
and that require prosecution or enforcement in Seller's name. Any
prosecution or enforcement of claims, rights, or benefits under this
Section shall be solely at Buyer's expense, unless the prosecution or
enforcement is made necessary by a breach of this Agreement by Seller.
3.2. BUYER'S OBLIGATIONS AT CLOSING. At the Closing Buyers shall deliver to
Seller against delivery of the items specified in SECTION 2.1, a certified bank
or cashier's check, or a wire transfer of immediately available funds, in the
amount of US$500,000.00 plus taxes pursuant to ARTICLE 6 payable to Seller.
Seller shall notify Buyers within five (5) days of the Closing Date whether the
amount payable at Closing shall be delivered by certified bank or cashier's
check, or by wire transfer. At closing, Buyers shall deliver to Seller such
documents that shall be reasonably requested by Seller or Seller's counsel.
ARTICLE 4. ASSUMPTION OF LIABILITIES
Buyers are not assuming any debt, liability or obligation of Seller, whether
known or unknown, fixed or contingent, except as herein specifically otherwise
provided. Seller agrees to indemnify and hold Buyers harmless against all debts,
claims, liabilities and obligations of Seller not expressly assumed by Buyers
hereunder, and to pay any and all attorneys' fees and legal costs incurred by
Buyers, its successors and assigns in connection therewith. Buyers shall have
the benefit of and shall perform and assume all leases, contracts and
agreements, if any, specifically listed on SCHEDULE 4, in accordance with the
terms and conditions thereof except to the extent modifications are specifically
set forth in SCHEDULE 4 and except to the extent set forth in the assignments or
assignment and assumption agreements for such leases, contract and agreements.
ARTICLE 5; RETURN OF DEPOSIT
Upon execution of this Agreement, Buyers shall pay to Seller an earnest money
deposit of US$1,250.00. Upon parties' final acceptance of the form and content
of the schedules to this Agreement, Buyers shall pay to Seller a further earnest
money deposit of US$3,750.00. Such deposits shall be returned to Buyers if the
Transactions are not closed due to: (a) the failure of
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any conditions set forth in ARTICLE 11 to be met at or before the Closing as a
result of any act or omission by Seller; or (b) the occurrence of any default by
Seller described in SECTION 17.3. If the Transactions are not closed for any
other reason, the deposit shall be retained by Seller. Upon Closing, the deposit
shall be applied towards the payment due to Seller under SECTION 2.1(b).
ARTICLE 6. TAXES
Buyers shall pay all sales, use and transfer taxes arising out of the transfer
of the Subject Assets, including any foreign transfer taxes and shall pay its
portion, prorated as of the Closing Date, of state, provincial, and local real
and personal property taxes of the business being sold hereunder. Buyers shall
not be responsible for any business, occupation, withholding or similar tax, or
for any income, sales, use, value-added or similar taxes related to any period,
or transaction occurring during any period, before the Closing Date.
ARTICLE 7. REPRESENTATIONS AND WARRANTIES OF SELLERS
Seller hereby represents and warrants to Buyers that the following facts and
circumstances are and will be at all times up to the Closing Date, except as
contemplated hereby, true and correct, and hereby acknowledge that such facts
and circumstances constitute the basis upon which Buyers are induced to enter
into and perform this Agreement. Each warranty set forth in this ARTICLE 7 shall
survive eighteen (18) months past the Closing Date and any investigation made by
or on behalf of Buyers. Buyers shall conduct their own due diligence
investigation and that investigation shall include an investigation into whether
Seller is or has operated in accordance with the warranties and representations
of Seller. If prior to the closing date, Buyers believe they have discovered any
breach of the representations and warranties of Seller, they shall forthwith
advise Seller in writing of such breach. If Seller does not or cannot cure such
breach prior to the Closing Date, Buyers may elect to close (in which case the
breach shall be deemed non-material) or not close provided such breach is
material. If Buyers fail to give such notice then the breach will be deemed
non-material.
7.1 ORGANIZATION, GOOD STANDING AND QUALIFICATION. Seller is a corporation
organized, validly existing, and in good standing under the laws of Ontario.
Seller has all necessary corporate powers to own its properties and to carry on
its business as now owned and operated by it, and is duly qualified to transact
any business and is in good standing in all jurisdictions in which the nature of
its business or its properties makes such qualification necessary.
7.2 FINANCIAL STATEMENTS. SCHEDULE 7.2(a) is the Combined Financial Statements
for the years ending March 31, 1997 and 1996 for Fifth Dimension Communications
(Barbados) Inc., Merlin Sierra, Inc. and Seller, certified by Ernst & Young,
chartered accountants, whose opinions with respect to such financial statements
are included into this Agreement. SCHEDULE 7.2(b) sets forth unaudited combined
balance sheets of Seller and others as of June 30, 1997 (the "Stub Period
Date"), together with related unaudited combined statements of changes in
financial positions and unaudited combined statements of income and retained
earnings for the three (3) month
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period then ending, as prepared in part by Seller. These financial statements in
SCHEDULES 7.2(a) and (b) are referred to as the "Financial Statements." The
Financial Statements have been prepared in accordance with generally accepted
accounting principles ("GAAP") consistently followed by Seller throughout the
periods indicated, are complete and correct in all material respects and
accurately and fairly depict the present financial position of Seller as of the
respective dates of the balance sheets included in the Financial Statements, and
the results of their operations for the respective periods indicated. Seller has
no liabilities or obligations of any nature (known or unknown, absolute,
accrued, contingent or otherwise) of the type required to be reflected or
disclosed in a balance sheet (or notes thereto) prepared in accordance with GAAP
that were not fully reflected or reserved against in the Financial Statements.
The Audited Financial Statements being provided by Seller shall contain in
footnotes or otherwise information concerning adjustments and add-back payments
as reflected on page 7 of the Letter of Understanding dated April 14, 1997 from
New Frontier, which is attached as SCHEDULE 7.2(c). The Financial Statements
accurately reflect the revenues and expenses of Sellers' Adult Movies Business.
7.3 ABSENCE OF SPECIFIED CHANGES. Since March 31, 1997, there has not been any:
(a) adverse material changes in the financial condition, liabilities,
assets, business, operating results or prospects of Seller with
respect to its Adult Movies Business;
(b) destruction, damage to, or loss of any of the Subject Assets (whether
or not covered by insurance) that materially and adversely effects the
assets, financial condition, business, assets or prospects of Seller
with respect to its Adult Movies Business;
(c) labor trouble or other event or condition of any character materially
and adversely effecting the financial condition, business, assets or
prospects of Seller ;
(d) revaluation by Seller of any of the Subject Assets in a manner that
would be materially adverse to Buyers;
(e) execution, creation, amendment, nonrenewal or termination of any
material contract, agreement or license to which Seller is a party,
except in the ordinary course of business or except as can be
terminated prior to the Closing Date without materially adversely
effecting the Subject Assets;
(f) creation or assumption by Seller of any mortgage, pledge, security
interest or lien or other encumbrance on any material asset of Seller
related to its Adult Movies Business, except as set forth in SCHEDULE
7.3(f);
(g) receipt by Seller of notice of any loss of; or material order
cancellation by, any major customers of Seller, except as set forth in
SCHEDULE 7.3(g);
(h) other event or condition of any character of which Seller has
knowledge that has or might reasonably have a material adverse effect
on the financial condition,
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business, assets, operating results or prospects of its Adult Movies
Business, except as set forth in SCHEDULE 7.3(h); or
(i) agreement by Seller to do any of the things described in the preceding
clauses (a) through (h).
7.4 SUBJECT ASSETS SUFFICIENT FOR OPERATIONS. The Subject Assets, together with
the "Subject Assets" described in the 124 Agreement and in the 5DBC Agreement,
constitute all assets (except premises) which are necessary for the continued
uninterrupted operation by Seller of its Adult Movies Business as now conducted.
Except as stated in SCHEDULE 4, none of the Subject Assets are held under any
lease, security agreement, conditional sales, contract, or other title of
retention or security agreement, or are in the possession of anyone other than
Seller.
7.5 TRADE NAMES, TRADEMARKS AND COPYRIGHTS. Except as set forth SCHEDULE IN
7.5, Seller does not use or own any trademark, service mark, trade name, trade
secret, or brand name in its Adult Movies Business. To the actual knowledge of
Seller, no person has made any outstanding claims against Seller in respect of
any trademark, trademark registration or application, service mark, trade name,
copyright, copyright registration or application or brand name, the use of which
is necessary or contemplated in connection with the performance of any contract
to which Seller is a party.
7.6 TRADE SECRETS. Seller is not aware of any trade secrets owned by, used in
or necessary for the operation of its Adult Movies Business.
7.7 TITLE TO ASSETS. To the best of Seller's knowledge, Seller has good and
marketable title to all the Subject Assets free and clear of mortgages,
liens, pledges, charges, encumbrances, equities, claims, easements, rights of
way, covenants, conditions, or restrictions, except for (i) those disclosed
in Seller's balance sheet as of the Stub Period Date, included in the
Financial Statements, or m the Schedules to this Agreement; (ii) the lien of
current taxes not yet due and payable; and (iii) possible minor matters that,
in the aggregate, are not substantial in amount and do not materially detract
from or interfere with the present or intended use of any of these assets,
nor materially impair the operations of its Adult Movies Business. All the
Subject Assets are in good operating condition and repair, ordinary wear and
tear excepted. Seller is in possession of all premises leased to it from
others and used by it in connection with its Adult Movies Business.
7.8 DEALERS AND DISTRIBUTORS. SCHEDULE 7.8 to this Agreement is a correct and
current list of all dealers and distributors of Seller together with summaries
of the sales made to each customer during the most recent fiscal year. Except
as indicated in SCHEDULE 7.8, Seller has no information and is not aware of any
facts indicating that any dealers or distributors of the services offered by its
Adult Movies Business intend to cease doing business with Seller or alter the
amount of the business that they are presently doing with Seller where such
cessation or alteration would have a material adverse effect on its Adult Movies
Business.
7.9 INSURANCE POLICIES. SCHEDULE 7.9 to this Agreement is a description of all
insurance policies held by Seller concerning the Subject Assets. All these
policies are in the respective principal amounts set forth in SCHEDULE 7.9.
Seller has maintained and now maintains (a) insurance on all
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the Subject Assets of a type customarily insured, covering property damage by
fire or other casualty, and (b) adequate insurance protection against all
liabilities, claims, and risks against which it is customary to insure. Such
insurance coverage will be canceled as of Closing.
7.10 OTHER CONTRACTS. Copies of all contracts which will be assigned to or
assumed by Buyers under this Agreement are attached as part of SCHEDULE 4.
Except as set forth in SCHEDULE 4 and to the best of Seller's knowledge, the
Subject Assets will not at Closing or thereafter (as a result of actions or
conduct of Seller) be bound or potentially bound by, any distributor's or
manufacturer's representative or agency agreement, any output or requirements
agreement, any agreement not entered into in the ordinary course of business,
any indenture, mortgage, deed of trust, lease or any other agreement that is
unusual in nature, duration or amount (including, without limitation, any
agreement requiring the performance by Seller of any obligation for a period of
time extending beyond one year from Closing Date or calling for consideration of
more than US$ 10,000.00 or requiring purchases at prices in excess of; or sales
at prices lower than, prevailing market prices). To the best of Seller's
knowledge, there is no default or event that with notice or lapse of time, or
both, would constitute a default by any party to any of the agreements listed in
SCHEDULE 4 and such contracts remain in full force and effect. Seller has not
received notice that any party to any of the agreements listed in SCHEDULE 4
intends to cancel or terminate any of these agreements or to exercise or not
exercise any options under any of these agreements. Seller is not party to, nor
are Seller or the Subject Assets bound by, any agreement that is materially
adverse to the business, assets, property, operating results, prospects or
financial condition of Seller.
7.11 COMPLIANCE WITH LAWS. Seller has received no notice of any violation of any
statutes, laws or regulations (including, without limitation any applicable
obscenity, environmental, health, building, zoning, or other law, ordinance or
regulations) from any Authority the violation of which may materially adversely
affect its Adult Movies Business. Seller is not in violation of or default under
any provisions of its Articles of Incorporation or Bylaws, both as amended. The
execution, delivery and performance of the Agreement and the consummation of the
Transactions will not result in any such violation or default, or be in conflict
with or constitute, with or without the passage of time or the giving of notice
or both, a default under Seller's Articles of Incorporation or Bylaws, both as
amended. To the best of Seller's actual knowledge, all licenses, permits,
approvals, registrations, qualifications, certificates and other authorizations
necessary for the conduct of Seller's Adult Movies Business as presently
conducted (the "Licenses") have been duly obtained, are in full force and
effect, and there are no proceedings pending or threatened which may result in
the revocation, cancellation, suspension or modification of any of such
Licenses.
7.12 LITIGATION. Except as set forth in SCHEDULE 7.12, there is no suit, action,
arbitration or legal, administrative or other proceeding, or governmental
investigation ("Actions") pending or, to the best knowledge of Seller,
threatened, against or affecting Seller, or any of its business, assets or
financial condition, or against any officer, director or employee of Seller in
connection with such officer's, director's or employee's relationship with or
actions taken on behalf of Seller. Seller is not party to or subject to the
provisions of any order, writ, injunction, judgment or decree of any court or
government agency or instrumentality, and there are no actions or claims by
Seller currently pending or, to which Seller intends to initiate. To the best
knowledge of Seller, there
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has not occurred any event nor does there exist any condition on the basis of
which any litigation, proceeding or investigation is likely to be instituted by
or against Seller. The matters set forth in SCHEDULE 7.12 if decided adversely
to Seller will not result in a material adverse change in the business, assets,
operating results, prospects or financial condition of Seller. Seller has
furnished or made available to Buyers copies of all relevant court papers and
other documents relating to the matters set forth in SCHEDULE 7.12. Seller is
not in default with respect to any order, writ, injunction or decree of any
federal, state, local or foreign court, department, agency or instrumentality.
Except as set forth in SCHEDULE 7.12, Seller is not presently engaged in any
legal action to recover moneys due to it or damages sustained by it.
7.13 AGREEMENT WILL NOT CAUSE BREACH OR VIOLATION. Neither the entry into this
Agreement nor the consummation of the transactions contemplated hereby will
result in or constitute any of the following events where the occurrence of such
event would render Seller materially unable to comply with this Agreement: (a) a
default or an event that, with notice or lapse of time or both, would be a
default, breach or violation of any lease, license, promissory note, conditional
sales contract, commitment, indenture, mortgage, deed of trust or other
agreement, instrument or arrangement; (b) an event that would permit any party
to terminate any agreement or to accelerate the maturity of any indebtedness or
other obligation; (c) the creation or imposition of any lien, charge or
encumbrance on any of the Subject Assets; or (d) the violation of any law,
regulation, ordinance, judgment, order or decree.
7.14 AUTHORITY AND CONSENTS. Except as set forth in SCHEDULE 7.14, Seller has
the right, power, legal capacity and authority to enter into, and perform its
obligations under this Agreement, and no approvals or consents of any persons
other than the shareholders of Seller are necessary in connection with it. The
execution and delivery of this Agreement and the consummation of this
transaction by Seller have been, or prior to the Closing will have been, duly
authorized by all necessary corporate action of Seller (including any necessary
action by Seller's security holders). This Agreement constitutes a legal, valid
and binding obligation of Seller enforceable in accordance with its terms except
as limited by bankruptcy and insolvency laws and by other laws affecting the
rights of creditors generally.
7.15 INTEREST IN CUSTOMERS, SUPPLIERS AND COMPETITORS. Except as set forth in
SCHEDULE 7.15 or as contemplated by a Collateral Agreement, neither Seller nor
any officer or director or shareholder of Seller, nor any spouse or child of any
of them has any direct or indirect interest in any competitor, supplier or
customer of Seller or in any person with whom Seller is doing business.
7.16 INFORMATION FURNISHED TO BUYER FOR BULK TRANSFER NOTICE. For the purposes
of furnishing notices under the Bulk Sales Act (Ontario), SCHEDULE 7.16 is a
true, complete and correct list of all names and business addresses used by
Seller.
7.17 DOCUMENTS DELIVERED. Each copy or original of any agreement, contract or
other instrument which is identified in any exhibit or schedule delivered by
Seller or its counsel to Buyers (or their counsel or representatives), whether
before or after the execution hereof, is in fact what it is purported to be by
Seller and has not been amended, canceled or otherwise modified.
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7.18 FULL DISCLOSURE. None of the representations and warranties made by Seller
or made in any letter, certificate or memorandum furnished or to be furnished by
Seller or on its behalf, contains or will contain any untrue statement of a
material fact, or omits any material fact the omission of which would make the
statements made misleading and materially adverse to Buyers. Except matters of
general knowledge within the Adult Movies industry and other matters generally
available to the public, there is no fact known to Seller which materially
adversely affects the condition, assets, liabilities, business, or operations of
the Seller's Adult Movies Business that has not been set forth herein or
heretofore communicated to Buyer in writing.
7.19 SUBJECT ASSETS ARE SUFFICIENT TO OPERATE BUSINESS.
(a) The Buyers are acquiring the ownership, possession or use under this
Agreement of all or substantially all of the property and assets
(excluding premises) that can reasonably be regarded as necessary
(when added to the "Subject Assets" described in the 124 Agreement and
the 5DBC Agreement) for Buyer to be capable of carrying on the Adult
Movies Business as conducted by Seller as a business within the
meaning of section 167 of the EXCISE TAX ACT (Canada).
(b) Seller is now, or will be at Closing, registered under Part IX of the
EXCISE TAX ACT (Canada).
7.20 SOLVENCY. As of the execution and delivery of this Agreement, and, after
giving effect to the consummation of the Transactions, Seller will be solvent.
7.21 TAX MATTERS. Seller shall continue to be responsible for and will discharge
all obligations and liabilities in respect to taxes pertaining to its Adult
Movies Business and the Subject Assets which arise or accrue for all periods
ending on or before the Closing Date (but excluding the taxes referred to in
ARTICLE 6). Seller will indemnify and hold harmless Buyers against any and all
claims and demands incurred by Buyers that directly or indirectly arise out of
such obligations or liabilities. Without limiting the foregoing, Seller will be
responsible for all federal, state, provincial, local, foreign and other net
income, gross income, gross receipts, alternative or add on minimum, profits,
sales, use, occupation, value-added, ad valorem, transfer, franchise, license,
lease, service use, withholding, payroll, employment, excise, severance,
premium, property, windfall profits, customs, duties, or other taxes, fees
assessments, or charges of any kind whatsoever, together with any interest,
penalties or additions to tax imposed with respect thereto, or any obligations
to any agreements or arrangements with respect to and taxes described above.
7.22 EMPLOYMENT MATTERS. Buyer shall be under no obligation to offer employment
to any of Seller's employees employed in connection with its Adult Movies
Business ("affected employees"), except as otherwise stated in this Agreement.
Buyer may, however, choose to retain the services of or to offer employment to
one or more of the affected employees, should it wish to do so, subject to
SECTION 13.4.
12
<PAGE>
Seller will continue to be responsible for and will discharge all obligations
and liabilities in respect of the affected employees which arise or accrue prior
to, on or after the Closing Date. Seller will indemnify and save harmless
Buyers against any and all claims and demands incurred by Buyers that directly
or indirectly pertain to or arise out of such obligations or liabilities.
Without limiting the forgoing, Seller will be responsible for and will bear and
discharge any and all obligations and liabilities for wages, severance pay,
termination pay, notice of termination of employment or pay in lieu of such
notice, damages for wrongful discharge or other employee benefits or claims,
including vacation pay, which may arise in connection with the employment or
dismissal of any of the affected employees, including any interest, award,
judgment or penalty relating thereto and any costs or expenses incurred by
Buyers in defending against any claim or demand relating to such obligation or
liabilities.
7.23 124 AGREEMENT
(a) The equipment (including without limitation essential spares and
replacement parts) and software technology, furniture, machinery,
appliances, and other tangible personal property and technology as
specifically set forth in SCHEDULE 1(a) of the 124 Agreement is
substantially similar to the equipment and technology used in
connection with and historically allocated to the Adult Movies
Business carried on by the Seller as of July 31, 1997 at the Uplink
Facility.
(b) The uplink facility to be operated, maintained, managed and sustained
under SECTION 1.1 of the 124 Agreement shall be of a substantially
similar nature and quality as those services currently being provided
by Seller to its present subscribers.
(c) The "Subject Assets" described in the 124 Agreement constitute all
assets (other than premises) necessary for the continued uninterrupted
operation by 1248663 Ontario Inc. of the call center and uplink
facility as now conducted on behalf of the Seller in respect of its
Adult Movies Business.
(d) SCHEDULE 1(b) of the 124 Agreement contains a complete list of the
hardware, equipment, furniture, machinery, appliances, software and
other tangible personal property now used at the Ottawa Call Center.
ARTICLE 8. BUYERS' REPRESENTATIONS AND WARRANTIES
Buyers represents, warrants, and covenants to, and agrees with Seller as
follows:
8.1 ORGANIZATION AND BUSINESS: POWER AND AUTHORITY: EFFECT OF TRANSACTION.
(a) Each Buyer (i) is a corporation duly organized, validly existing and
in good standing under the laws of its jurisdiction of incorporation;
(ii) has all requisite power and authority to own or hold under lease
its properties and to conduct its business as now conducted and as
presently proposed to be conducted, and has in
13
<PAGE>
full force and effect all Governmental Authorizations and Private
Authorizations and has made all governmental filings, to the extent
required for such ownership and lease of its property and conduct of
its business and is in good standing in such jurisdictions in which
the failure to be in good standing would have a material adverse
effect upon its property or the nature of its business or operations.
(b) Each Buyer has all requisite power and authority and has in full force
and effect all Governmental Authorizations and Private Authorizations
in order to enable it to execute and deliver, and to perform its
obligations under, this Agreement and each Collateral Agreement
executed or required to be executed pursuant hereto or thereto or to
consummate the Transactions and the Collateral Agreements; and the
execution, delivery and performance of this Agreement and each
Collateral Agreement has been duly authorized by all requisite
corporate or other action. No further action or approval on the part
of Buyers' stockholders is required in connection with the execution,
delivery and performance of this Agreement or each Collateral
Agreement or the consummation of the Transactions. This Agreement has
been duly executed and delivered by each Buyer and constitutes, and
each Collateral Agreement executed or required to be executed pursuant
hereto or thereto or to consummate the Transactions when executed and
delivered by Buyers will constitute, legal, valid and binding
obligations of Buyers enforceable in accordance with their respective
terms.
(c) Neither the execution and delivery of this Agreement or any Collateral
Agreement, nor the consummation of the Transactions, nor compliance
with the terms, conditions and provisions hereof or thereof by Buyers
will conflict with, or result in a material breach or violation of, or
constitute a material default under, any Applicable Law on the part of
Buyers or will conflict with, or result in a material breach or
violation of, or constitute a material default under, or permit the
acceleration of any obligation or liability in, or but for any
requirement of giving notice or passage of time or both would
constitute such a conflict with, material breach or violation of, or
material default under, or permit any such acceleration in, any
contractual obligation of Buyers.
8.2 GST REGISTRATION. Buyer will be registered under Part IX of the EXCISE TAX
ACT (Canada) at Closing.
8.3 DISCLOSURE. None of the representations and warranties made by Buyers or
made in any letter, certificate or memorandum furnished or to be furnished by
Buyers or on their behalf, contains or will contain any untrue statement of a
material fact, or omits any material fact the omission of which would make the
statements made misleading and materially adverse to Seller.
8.4 CONTINUING REPRESENTATION AND WARRANTY. Except for those representations
and warranties which speak as of a specific date, all of the representations and
warranties of Buyers set forth in this Article shall be true and correct on the
Closing Date with the same force and effect as though made on and as of that
date and those, if any which speak as of a specific date shall be true and
14
<PAGE>
correct on the Closing Date.
8.5 SOLVENCY. As of the execution and delivery of this Agreement, and, after
giving effect to the consummation of the transactions contemplated herein,
Buyers taken as a whole and individually will be solvent.
8.6 INTERPRETATION. For the purposes of this ARTICLE 8, New Frontier and
Colorado Satellite Broadcasting, Inc. are each considered to be a "Buyer".
ARTICLE 9. SELLER'S OBLIGATIONS BEFORE CLOSING
Seller covenants that, except as otherwise agreed in writing by Buyer, from the
date of this Agreement until the Closing:
9.1 BUYERS' ACCESS TO PREMISES AND INFORMATION. Buyers and its counsel,
accountants and other representatives shall be entitled to have full access
during normal business hours to all Seller's properties, books, accounts,
records, contracts and documents of or relating to the Subject Assets. Seller
shall furnish or cause to be furnished to Buyers and its representatives all
data and information concerning the Subject Assets and Adult Movies Business
that may reasonably be requested.
9.2 CONDUCT OF BUSINESS IN NORMAL COURSE. Seller shall carry on its business and
activities diligently and in substantially the same manner as they previously
have been carried on, and shall not make or institute any unusual or novel
methods of purchase, sale, lease, management, accounting or operation that will
vary materially from the methods used by Seller as of the date of this Agreement
if it would have a material adverse affect on its Adult Movies Business.
9.3 PRESERVATION OF BUSINESS AND RELATIONSHIPS. Seller shall use its best
efforts, without making any commitments on behalf of Buyers, to preserve the
Seller's Adult Movies Business intact, to keep available to Seller, its present
officers and employees, and to preserve its present relationships with
suppliers, customers and others having business relationships with it.
9.4 MAINTENANCE OF INSURANCE. Seller shall continue to carry its existing
insurance, subject to variations in amounts required by the ordinary operations
of their businesses. At the request of Buyers and at Buyers' sole expense, the
amount of insurance against fire and other casualties which, at the date of this
Agreement, Seller carry on any of the Subject Assets or in respect of their
operations shall be increased by such amount or amounts as Buyers shall specify.
9.5 NEW TRANSACTIONS. Seller shall not do or agree to enter into any contract,
commitment or transaction which would materially adversely effect the ability of
Seller to perform any obligation set forth in this Agreement of any Collateral
Agreement.
9.6 EXISTING AGREEMENTS. Except in ordinary course of business, Seller shall
not modify, amend, cancel or terminate any of its existing contracts or
agreements, or agree to do any of those acts without the consent of Buyers, if
doing so would materially adversely affect its Adult Movies
15
<PAGE>
Business.
9.7 CONSENT OF OTHERS. As soon as reasonably practical after the execution and
delivery of this Agreement, and in any event on or before the Closing Date,
Seller shall obtain the written consent of the persons described in SCHEDULE
7.14 in form and substance satisfactory to Buyers and will furnish to Buyers
executed copies of those consents.
9.8 REPRESENTATIONS AND WARRANTIES TRUE AT CLOSING. Seller shall use its
reasonable commercial efforts to assure that all representations and warranties
of Seller set forth in this Agreement and in any written statements delivered to
Buyers by Seller under this Agreement will also be true and correct as of the
Closing Date as if made on that date and that all conditions precedent to
Closing shall have been met. Seller shall promptly disclose to Buyers any
information contained in the Schedules to this Agreement which, because of an
event occurring after the date hereof, is incomplete or is no longer correct as
of all times after the date hereof until the Closing Date; provided, however,
that none of such disclosures shall be deemed to modify, amend or supplement the
representations and warranties of Seller or the schedules hereto for the
purposes of ARTICLE 11, unless Buyer shall have consented thereto in writing.
9.9 STATUTORY FILINGS. Seller shall cooperate fully with Buyers in preparing
and filing all information and documents required under any statutes or
governmental rules or regulations pertaining to the Transactions, including but
not limited to, any licenses required by Industry Canada and the rules
promulgated thereunder.
ARTICLE 10. BUYERS' OBLIGATIONS BEFORE CLOSING
10.1 GENERAL OBLIGATIONS AND CONFIDENTIALITY. Prior to the Closing Date (or, in
the event the Closing does not occur, for a period of two years following the
date of this Agreement) Buyers shall use their best efforts to preserve the
confidentiality of any commercial information which is confidential and which
Seller identifies in writing as confidential which is disclosed to Buyers or to
their representatives by Seller; provided that Buyers at all times shall not be
materially restricted in their investigation of the assets or matters relating
thereto. The above provisions of this Section shall not apply to any information
which (i) is already known to Buyers at the time of disclosure by Seller, (ii)
is published or through no fault of Buyers becomes published or (iii) is
lawfully disclosed to Buyer by a third party. Whether or not the Closing shall
take place, Seller waives any cause of action, right or claim arising out of the
access of Buyers or their representatives to any trade secrets or other
confidential business information of Seller from the date of this Agreement
until the Closing Date, except for the intentional competitive misuse by Buyers
or its representatives of such trade secrets or other confidential business
information (identified as confidential as required by this Article) if the
Closing does not take place.
10.2 SELLER'S ACCESS TO PREMISES AND INFORMATION. Seller and its counsel,
accountants and other representatives shall be entitled to have full access
during normal business hours to all Buyers' properties, books, accounts,
records, contracts and documents. The Buyers shall furnish or cause to be
furnished to Seller and its representatives all data and information concerning
Buyers that may reasonably be requested.
16
<PAGE>
ARTICLE 11. CONDITIONS PRECEDENT TO BUYER'S PERFORMANCE
The obligation of Buyers to purchase the Subject Assets under this Agreement are
subject to the satisfaction, at or before the Closing, of all the conditions set
out below in this Article. Buyers may waive any or all of these conditions;
provided, however, that no such waiver of a condition shall constitute a waiver
by Buyers of any of its other rights or remedies, at law or in equity, if Seller
shall be in default of any of its representations, warranties or covenants under
this Agreement.
11.1 ACCURACY'S OF SELLER'S REPRESENTATIONS AND WARRANTIES. All representations
and warranties by Seller contained in this Agreement or in any Collateral
Agreement or in any written statement delivered by Seller thereunder shall be
true on and as of the Closing as though such representations and warranties were
made on and as of that date. Buyers shall have received a certificate, dated the
Closing Date, signed by Seller's President certifying, in such detail as Buyers
and their counsel may reasonably request, that the representations and
warranties set out herein are true and correct as of the Closing Date.
11.2 SELLER'S PERFORMANCE. Seller shall have performed, satisfied, and complied
with all covenants, agreements, and conditions required by this Agreement to be
performed or complied with by Seller on or before the Closing Date.
11.3 CERTIFICATION BY SELLER. Buyers shall have received a certificate, dated
the Closing Date, signed by Seller's President certifying, in such detail as
Buyer and its counsel may reasonably request, that the representations and
warranties set out herein are true and correct as of the Closing Date.
11.4 OPINION OF SELLER'S COUNSEL. Buyers shall have received from counsel for
Seller, an opinion dated the Closing Date, in form and substance reasonably
satisfactory to Buyers and their counsel, stating that:
(a) Seller is a corporations duly organized, validly existing and in good
standing under the applicable laws of the jurisdiction of its
incorporation and has all necessary corporate power to own its
properties as now owned and operate its businesses as now operated;
(b) all corporate proceedings required by law or by the provisions of this
Agreement to be taken by Seller on or before the Closing Date in
connection with the execution and delivery of this Agreement and the
consummation of the Transactions have been duly and validly taken;
(c) this Agreement has been duly and validly authorized and, when executed
and delivered by Seller will be valid and binding on Seller and
enforceable in accordance with its terms, except as limited by
bankruptcy and insolvency laws and by other laws affecting the rights
of creditors generally; and
17
<PAGE>
21.3 RELATED TRANSACTIONS. It is a condition of the obligations of the parties
to close the Transactions that on the Closing Date the transactions referred to
in the 5DBC Agreement and the 124 Agreement also close on the Closing Date.
IN WITNESS WHEREOF, the parties to this Agreement have duly executed it as of
the day and year first above written.
BUYERS: New Frontier Media, Inc.
By: /s/ [ILLEGIBLE]
---------------------------
Its: President
---------------------------
Colorado Satellite Broadcasting, Inc.
By: /s/ [ILLEGIBLE]
---------------------------
Its: [ILLEGIBLE]
---------------------------
SELLERS: 1043133 Ontario, Inc.
By: /s/ [ILLEGIBLE]
---------------------------
Its authorized signing officer
26
26
<PAGE>
[SCHEDULES TO THE 104 AGREEMENT]
SCHEDULE 1(a)
TRADEMARKS LIST
EXXXTASY ADULT TELEVISION (U.S. Trademark Registration No. 1931208)
XTC-COM (U.S. Trademark Application No. 255506/75)
EXXXTASY(U.S. Trademark Registration No. 1916844)
TRUE BLUE (U.S. Trademark Application No. 255508/75)
<PAGE>
SCHEDULE 1.1
FIRST LINK LICENSE AGREEMENT
THIS AGREEMENT made the - day of -, 1997.
BETWEEN:
1043133 ONTARIO INC.
("104")
THE FIRST PARTY
AND:
COLORADO SATELLITE BROADCASTING, INC.
("CSB")
THE SECOND PARTY
WHEREAS:
(1) pursuant to the terms of an Asset Purchase Agreement made 5 September
1997 among New Frontier Media, Inc., CSB and 104, 104 is required to
grant to CSB a license for certain subscription management software
(know as "First Link" version 2 and herein called the "Software"); and
(2) the parties desire to set forth below the terms of such license.
FOR VALUABLE CONSIDERATION, the receipt and sufficiency of which are
acknowledged, the parties agree as follows:
1. GRANT OF LICENSE. In consideration of CSB's agreement to abide by the
terms and conditions of this License Agreement, 104, as licensor,
grants to CSB a non-exclusive, royalty-free license to use and display
the Software on a single computer with a single central processing unit
(collectively, the "CPU") at a single location so long as CSB complies
with the terms of this License Agreement and to use the source code
related to the Software solely for the purpose of maintaining the
Software (and, in this Agreement, the term "Software" includes such
source code). The CPU on which CSB uses the Software may be a
multiuser system and this License Agreement covers all users who have
access to the CPU. 104 reserves all rights not expressly granted to
CSB. CSB may not loan, rent, lease, or transfer the Software to another
except as part of a permanent transfer of the Software (as provided
below) of all of the Software and printed materials.
<PAGE>
2
2. OWNERSHIP OF SOFTWARE. CSB shall own the magnetic or other physical
media on which the Software is originally or subsequently recorded or
fixed, but an express condition of this License Agreement is that 104
retains title and ownership of the Software recorded on the original
copy(ies) and all subsequent copies of the Software, regardless of the
form or media in or on which the original and other copies may exist.
This license is not a sale of the original Software or any copy.
3. COPY RESTRICTIONS. This Software (including any images, photographs,
animations, videos, audio, music, and text incorporated therein) and
the accompanying written materials are copyrighted. Unauthorized
copying of the Software, including Software which has been modified,
merged, or included with other software, or of the written materials is
expressly forbidden. CSB may be held legally responsible for any
copyright infringement which is caused or encouraged by its failure to
abide by the terms of this License Agreement. Subject to the
aforementioned restrictions, CSB may make one copy of the Software
solely for backup purposes. CSB must reproduce and include the
copyright notice on the backup copy.
4. USE RESTRICTIONS. CSB may physically transfer the Software from one
computer to another provided that the Software is used on only one
computer at a time. CSB may not distribute copies of the Software or
accompanying written materials to others. CSB may not modify, adapt,
translate, reverse engineer, decompile, disassemble, or create
derivative works based on the he Software. CSB may not modify, adapt
translate or create derivative works based on the written materials.
5. TRANSFER RESTRICTIONS. This Software is licensed only to CSB and may
be transferred by CSB only on a permanent basis provided the transfer
is made in conjunction with the purchase of substantially all of the
outstanding capital stock or assets of CSB by the third party and
further provided that CSB retains no copies and such third party agrees
to the terms of this License Agreement. If the Software is an upgrade,
any transfer must include the most recent version and all prior
versions. In no other event may CSB transfer, assign, rent, lease,
sell or otherwise dispose of the Software on a temporary or permanent
basis.
6. TERMINATION. This license is effective until terminated. This license
will terminate automatically without notice from 104 if CSB fails to
comply with any provision of this License Agreement. Upon termination
CSB shall destroy the written materials and all copies of the Software,
including modified copies, if any.
7. UPDATE POLICY. 104 may create, from time to time, updated versions of
the Software. 104 will made such updates available at no cost to CSB.
104 makes a commitment to provide any updates or revisions to the
Software.
8. LIMITED WARRANTY. The Software and accompanying written materials are
provided "as is" without warranty of any kind. 104 does not warrant,
guarantee or make any representations regarding the use, Or the results
of use, of the Software or written materials in terms of correctness,
accuracy, reliability, currentness, or otherwise. The
<PAGE>
3
entire risk as to the results and performance of the Software is
assumed by CSB. If the Software or written materials are defective CSB,
and not 104, shall assume the entire cost of all necessary servicing,
repair, or correction. 104 warrants to CSB that the media on which the
Software is recopied is free from defects in materials and workmanship
under normal use and service for a period of 90 days from the date of
delivery as evidenced by a copy of the receipt.
THE ABOVE IS THE ONLY WARRANTY OF ANY KIND, EITHER EXPRESS OR IMPLIED,
STATUTORY OR OTHERWISE, INCLUDING BUT NOT LIMITED TO THE IMPLIED
WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE
THAT IS MADE BY 104. NO ORAL OR WRITTEN INFORMATION OR ADVICE GIVEN BY
104, ITS AGENTS OR EMPLOYEES SHALL CREATE A WARRANTY OR IN ANY WAY
INCREASE THE SCOPE OF THIS WARRANTY AND CSB MAY NOT RELY ON ANY SUCH
INFORMATION OR ADVICE.
Neither 104 nor any one else who has been involved in the creation,
production or delivery of the Software shall be liable for any direct,
indirect, consequential or incidental damages (including damages for
loss of business profits, business interruption, loss of business
information, and the like) arising out of the use or inability to use
the Software even if CSB has been advised of the possibility of such
damages.
In the event of any conflict between any provision in this limited
warranty and any applicable provincial or state legislation, the
applicable provincial or state legislation takes precedence over the
contravening provision.
9. GOVERNING LAW. This License Agreement is governed by the laws of the
Province of Ontario and the laws of Canada applicable therein and shall
benefit the parties and their successors.
<PAGE>
4
10. LEGAL COSTS. Should any dispute be commenced between the parties
concerning any provision of this Agreement or the rights and duties of
any party in relation thereto, the party prevailing in such dispute
shall be entitled, in addition to such other relief as may be granted,
to a reasonable sum as and for its attorneys fees in such connection
with enforcing its rights or defending itself, as the case may be.
IN WITNESS OF WHICH the parties have executed this Agreement,
)
) 1043133 ONTARIO INC.
)
)
) Per:
) ------------------------------
) Authorized Signing Officer
)
)
) COLORADO SATELLITE
) BROADCASTING, INC.
)
)
) Per:
) ------------------------------
) Authorized Signing Officer
)
<PAGE>
SCHEDULE 1(b)
SUBSCRIBERS LIST
[delivered in electronic form]
<PAGE>
SCHEDULE 1(c)
VENDORS LIST
[attached]
<PAGE>
<TABLE>
<CAPTION>
User Date: 9/10/97 VENDOR SUMMARY LIST User ID: DANIELLE
Payables Management
Ranges:
Vendor ID: First - Last Short Name: First - Last
Vendor Name: First - Last Postal Code: First - Last
Vendor Class: First - Last Province: First - Last
User Define 1: First - Last Telephone: First - Last
Vendor Status: Active - Active Contact: First - Last
1099 Type: First - Last
Sorted By: Vendor Name
Vendor ID Name Class ID Telephone Number Contact Person
- ------------------------------------------------------------------------------------------------------------------------------------
Address City ProvincePostal Code Country
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
5DTVIN 5D COMMUNICATION (1996) CORP. CDN (000) 000-0000 Ext. 0000
5DV001 5D VIDEO & COMMUNITCATIONS CDN (000) 000-0000 Ext. 0000
25000 DON REID DRIVE OTTAWA ONT KIH 8P5
841161 841161 ONTARIO INC. CDN (000) 000-0000 Ext. 0000
ACCESS ACCESS CONTROL CENTER INC.. U.S. (619) 455-1500 Ext. 0000
P.O. BOX 91779 CHICAGO IL 60693
ACTIVE ACTIVE COMPONENTS CON (000) 000-0000 Ext. 0000
1023 MERIVALE RD OTTAWA ONT KIZ 6A6
NYP002 ADAM NYP U.S. (000) 000-0000 Ext. 0000
ADVANT ADVANTAGE ENTERTAINMENT U.S. (000) 000-0000 Ext. 0000
2500 NW 39TH ST. MIAMI, FL 33142 USA
EL-GOO1 ALI EL-GHAZALI U.S. (000) 000-0000 Ext. 0000
AMERIC AMERICAN EXHIBITION SERVICES U.S. (205) 323-2211 Ext. 0000
310 NORTH 21ST STREET BIRMINGHAM, ALABAMA 35203
AMEX AMEX BANK OF CANADA NON-TRADE (800) 668-2639 Ext. 0000
PO BOX 4500 STN AGINCOURT SCARBOROUGH ON MIS 481
ANAHEI ANAHEIM MARRIOTT U.S. (714) 750-8000 Ext. 0000
700 WEST CONVENTION WAY ANAHEIM CA 92802-3483
ANBELL ANBELL AGENCIES U.S. (809) 968-5640 Ext. 0000
8034 NW 66TH ST MIAMI FL 33166 USA
ARTWOO ART WOODS OFFICE SUPPLIES INC CON (613) 739-3443 Ext. 0000
830 INDUSTRIAL AVE. UNIT #13 OTTAWA ONT KIG 488
ARTEXT ARTEXT ELECTRONIC PUBLISHING NON-TRADE (613) 232-9942 Ext. 0000
85 ALBERT STREET, SUITE 110 OTTAWA, ONTARIO KIP 6A4
ASTRO ASTRO SATELLITE PROGRAMMING U.S. (000) 000-0000 Ext. 0000
3100 NW 72ND AVE #109 MIAMI, FL 33122 USA
AT&T AT&T U.S. (000) 000-0000 Ext. 0000
PO BOX 27-0520 KANSAS CITY MO 64180-0520
AUDIOV AUDIO VISUAL HEADQUARTERS U.S. (310) 885-4200 Ext. 0000
2300 GLADWICK ST RANCHO DOMINGUEZ CA 90220
AVNPUB AVN PUBLICATIONS, INC. U.S. (818) 786-4286 Ext. 0000
67000 VALJEAN AVENUE VAN NUYS CA 91406
BMSENT B.M.S. ENTERPRISES NON-TRADE (905) 671-3063 Ext. 0000
7370 BRAMALEA RD, UNIT 38 MISSISSAUUGA, ON L5S IN6
BABBAG BABAGE & SONS PREMIUM ENT. U.S. (313) 386-3909 Ext. 0000
9648 REECK RD. ALEEN PARK MI 48101-1355 USA
<PAGE>
Vendor ID Name Class ID Telephone Number Contact Person
- ------------------------------------------------------------------------------------------------------------------------------------
Address City ProvincePostal Code Country
- ------------------------------------------------------------------------------------------------------------------------------------
BELLCA BELL CANADA CDN (000) 000-0000 Ext. 0000
P.O. BOX 1550 NORTH YORK, ONTARIO M3C 3N5
BELLCE BELL MOBILITY CELLULAR NON-TRADE (800) 361-5551 Ext. 0000
BMGPHO BMG IMAGING OTTAWA, INC. NON-TRADE (000) 000-0000 Ext. 0000
1550 CHATELAIN AVENUE OTTAWA, ONTARIO KIZ 885
BLEEKE BLEEKER STEREO & TV LTD CDN (613) 225-5191 Ext. 0000
1400 CLYDE AVENUE NEPEAN ONT K2G 3J2
BRADLE BRADLEY'S INSURANCE NON-TRADE (613) 836-2473 Ext. 0000
BOX 1234, 1469 MAIN STREET STITTSVILLE, ONTARIO K2S 1B3
BREDE BREDE, INC. U.S. (303) 321-8784 Ext. 0000
5140 COLORADO BLVD DENVER CO 80216
CABLEY CABLE YELLOW PAGES U.S. (310) 539-7038 Ext. 0000
3430 FUJITA STREET TORRANCE CA 90505
CABLEC CABLECOM INC CON (613) 738-2998 Ext. 0000
695 INDUSTRIAL AVE OTTAWA ONT KIG OZ1
CAN001 CAN-STAFF CON (905) 433-4010 Ext. 0000
1621 MCEWEN DR. #6 WHITBY ON LIN 9A5
CANPOS CANADA POST CORPORATION NON-TRADE (000) 000-0000 Ext. 0000
COMMERCIAL REVENUE ACCTG E0545-2701 RIVERSIDE DRIVE OTTAWA, ON K1A 0B1
CANADI CANADIAN SELF STORAGE CON (000) 000-0000 Ext. 0000 ROBERT
174 CLEOPATRA DRIVE NEPEAN ON K2G 5X2
CANWAS CANADIAN WASTE SERVICE INC. CON (613) 224-4463 Ext. 0000
PO BOX 15949 STN F OTTAWA ON K2C 3S8
CHEZNO CHEZ NOUS SENIOR CITIZENS HOME CDN (613) 693-4371 Ext. 0000 RAY RITSCO
1101 GRAFTON AVE MOOSE JAW SK S6H 3S4
MADOO1 CHRISSY MADDEN U.S. (000) 000-0000 Ext. 0000
CHRIST CHRISTIE AND WALTHER NON-TRADE (613) 739-3636 Ext. 0000
570 INDUSTRIAL AVE., OTTAWA, ONTARIO KIG 0Y9
CITYOTT CITY OF OTTAWA (613) 244-5656 Ext. 0000
REVENUE DIVISION P.O. BOX 425 STATION A OTTAWA ONT K1N 9C1 CANADA
CLEIMA CLEAR IMAGE U.S. (000) 000-0000 Ext. 0000
#6- 4291 MERIDIAN ST. BELLINGHAM WA 98226 USA
COHENS COHENS OFFICE FURNITURE NON-TRADE (000) 000-0000 Ext. 0000
COLEIN COLE INTERNATIONAL INC. CDN (000) 000-0000 Ext. 0000
OTTAWA AIR CARGO CENTRE 140 THAD JOHNSON ROAD GLOUCESTER, ONTARIO K1V 0R4
COMMER COMMERCIAL PRINTERS (OTTAWA) NON-TRADE (613) 521-9171 Ext. 0000
2474 LANCASTER RD OTTAWA ON K1B 4S5
COMTEK COMMTEK COMMUNICATIONS CORP. U.S. (703) 827-0511 Ext. 0000
600-8330 BOONE BLVD. VIENNA, VIRGINIA VIENNA, VIRGINIA 22182
CTS001 COMPUTER TECHNOLOGY SOLUTIONS CON (613) 733-6200 Ext. 0000
2407 KALADAR AVENUE OTTAWA ONT K1V 8B9
COMTEC COMTECH COMMUNICATIONS CORPORATION U.S. (000) 000-0000 Ext. 0000
4666 S ASH AVENUE TEMPE AZ 85282
CORPRI CORPORATE PRINTERS NON-TRADE (613) 591-2335 Ext. 0000
101 SCHNEIDER ROAD UNIT 5 KANATA, ONTARIO K2K 1Y3
</TABLE>
<PAGE>
<TABLE>
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<S> <C>
CORPRG CORPORATE RENAISSANCE GROUP CDN (613) 232-4295 Ext. 0000
COMMERCE PLAZA 333 PRESTON ST. SUITE 600 OTTAWA ON K1S 5N4 CANADA
CRASTO CRAFT STOVE AND SATELLITE WRLD U.S. (000) 000-0000 Ext. 0000
3945 22ND ST. E. HICKORY NC 28601
CULLIG CULLIGAN CDN (613) 225-9175 Ext. 0000
78 AURIGA DRIVE NEPEAN ON K2E 7X7
DALEAR DALE ARGUE EQUIP. NON-TRADE (000) 000-0000 Ext. 0000
RR 3 STITSVILLE, ONTARIO K2S 1B8
PATTON DAN PATTON U.S. (000) 000-0000 Ext. 0000
PATTON2 DAN PATTON CDN (000) 000-0000 Ext. 0000
BRAKUS DARKO BRAKUS CDN (000) 000-0000 Ext. 0000
BELISL DAVE BELISLE U.S. (000) 000-0000 Ext. 0000
BELISL CDN DAVE BELISLE CDN (000) 000-0000 Ext. 0000 DAVE BELISLE
DDSELE DDS ELECTRONICS U.S. (804) 580-6309 Ext. 0000
BOX 339 ROUTE 200 WICOMICO CHURCH VA 22579 USA
DEIDRE DEIDRE HICKEY CDN (000) 000-0000 Ext. 0000
DELAWA DELAWARE BUS. INCORPORATORS U.S. (000) 000-0000 Ext. 0000
3422 OLD CAPITOL TRAIL WILMINGTON DE 19808-6192
SLO001 DENNIS SLOAN U.S. (000) 000-0000 Ext. 0000
DHL001 DHL INTERNATIONAL EXPRESS LTD CDN (905) 673-2230 Ext. 0000
PO BOX 189 MALTON ONT L4T 4E2
DICKST DICKSTEIN, SHAPIRO & MORIN U.S. (202) 785-9700 Ext. 0000
2101 L STREET N.W. WASHINGTON, D.C. 20037-1526
DIGITA DIGITAL PARADISE INC. CDN (613) 727-3590 Ext. 0000
14 COLLONADE RD SUITE 200 NEPEAN, ONTARIO K2E 7M6
DIORIO DIORIO PRODUCTIONS INC. CDN (613) 789-7548 Ext. 0000
185 RIDEAU STREET, 2ND FLOOR OTTAWA ONT K1N 5X8
DIRMAR DIRECT MARKETING U.S. (818) 764-1543 Ext. 0000
11933 VOSE STREET NORTH HOLLYWOOD CA 91605
DIRECT DIRECTOR, FAMILY SUPPORT PLAN CDN (000) 000-0000 Ext. 0000
PO BOX 2204, STN P TORONTO ONT M5S 3E9
DOCJOH DOC JOHNSON ENTERPRISES U.S. (818) 764-1543 Ext. 0000
11933 VOSE ST. N.H., CA. 91605
DOUGLAS DOUGLAS DUNCAN CDN (000) 000-0000 Ext. 0000
DOUGLAS US DOUGLAS DUNCAN U.S. (000) 000-0000 Ext. 0000
DUFFYS DUFFY'S SATELLITE SYSTEMS U.S. (619) 448-2223 Ext. 0000
11541 WOODSIDE AVE. SANTEE CA 92071 USA
ELECTR ELECTROSONIC INC. NON-TRADE (416) 494-1666 Ext. 0000
1100 GORDON BAKER RD. WILLOWDALE, ONTARIO M2H 3B3
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Vendor ID Name Class ID Telephone Number Contact Person
- ------------------------------------------------------------------------------------------------------------------------------------
Address City ProvincePostal Code Country
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C>
ALPHAG ELM PRINTING INC NON-TRADE (613) 232-0572 Ext. 0000
280 ALBERT STREET OTTAWA ON K1P 5G8
ELMPRI ELM PRINTING INC. CDN (613) 232-0572 Ext. 0000
280 ALBERT STREET SUITE 101 OTTAWA, ONTARIO K1P 5G8
0-DO001 ERIN O-DONOGHUE U.S. (000) 000-0000 Ext. 0000
ERNSTY ERNST & YOUNG CDN (000) 000-0000 Ext. 0000
SUITE 1600 55 METCALFE STREET OTTAWA, ONTARIO K1P 6L5
EXHIBI EXHIBIT PLANT & FLORAL CO. U.S. (714) 895-4949 Ext. 0000
12881 KNOTT STREET SUITE 108 GARDEN GROVE CA 92641
EXHIBI-HAYWARD EXHIBIT PLANT & FLORAL CO. U.S. (510) 782-9494 Ext. 0000
25571 CLAWITER RD HAYWARD CA 94545
FEDEXP FEDERAL EXPRESS NON-TRADE (800) 463-3339 Ext. 0000
PO BOX 2700 STREETSVILLE MISSISSAUGA, ONTARIO L5M 2L8
FEDERA FEDERAL EXPRESS CORPORATIO U.S. (000) 000-0000 Ext. 0000
PO BOX 1140 MEMPHIS, TN 38101-1140
295969 FIFTH DIMENSION CAPITAL CORP CDN (000) 000-0000 Ext. 0000
5DCOMM FIFTH DIMENSION SATCOM CDN (000) 000-0000 Ext. 0000
FIFTHD FIFTH DIMENSION TECHNOLOGIES CDN (613) 737-7333 Ext. 0000
2500 DON REID DRIVE OTTAWA ON K1H 1E1
FIRSTR FIRST REFERENCE INC. CDN (905) 824-2253 Ext. 0000
3216 WILDFLOWERS COURT MISSISSAUGA, ONTARIO L5N 6V3
FORTUN FORTUNA COMMUNICATIONS CORP. U.S. (707) 725-6951 Ext. 0000
P.O. BOX 308. FORTUNA, CA 95540
FRANCH FRANCHISE TAX BOARD U.S. (000) 000-0000 Ext. 0000
PO BOX 942857 SACRAMENTO CA 94257-0500
PANTA2 FRED PANTALONE U.S. (000) 000-0000 Ext. 0000
PANTAL FRED PANTALONE CDN (000) 000-0000 Ext. 0000
G&TCON G&T CONNECT CDN (000) 000-0000 Ext. 0000
BOX 6000 DON MILLS ON M3C 3W1
GES001 G.E.S. EXPOSITION SERVICES U.S. (702) 457-5075 Ext. 0000
1624 MOJAVE ROAD LAS VEGAS NV 89104
PORTER G. PORTER CDN (000) 000-0000 Ext. 0000
BIGRAS GABRIEL BIGRAS CDN (000) 000-0000 Ext. 0000
GARRAW GARRAWAY SATELLITE U.S. (305) 271-7581 Ext. 0000
4119 N STATE RD #7 #821 FORT LAUDERDALE FL 33319 USA
GENERA GENERAL INSTRUMENT CORPORATION U.S. (619) 455-1500 Ext. 0000
6262 LUSK BLVD SAN DIEGO CA 92121
GESEXP GES EXPOSTION SERVICES U.S. (404) 629-5210 Ext. 0000
5885 FULTON INDUSTRIAL FLVD ATLANTA GA 30336 USA
LOW001 GINGER LOWERY U.S. (000) 000-0000 Ext. 0000
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Vendor ID Name Class ID Telephone Number Contact Person
- ------------------------------------------------------------------------------------------------------------------------------------
Address City ProvincePostal Code Country
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
GMPROG GM PROGRAMMING U.S. (000) 000-0000 Ext. 0000
440 COLUMBIA AVE WHITEFISH, MONTANA 29937 USA
SKI001 GORDY SKINNER U.S. (000) 000-0000 Ext. 0000
GOURME GOURMET DISH U.S. (716) 798-1327 Ext. 0000
PO BOX 32 MEDINA NY 14103
GRANDT GRAND AND TOY NON-TRADE (613) 244-1212 Ext. 0000 RICHARD CREDIT
900 BELFAST ROAD OTTAWA, ONTARIO OTTAWA, ONTARIO KIG 0Z6
GRANDV GRANDVIEW T.V. SATELLITE CDN (905) 859-0055 Ext. 0000
5978 KING RD. NOBLETON ON LOG 1NO CANADA
GREATW GREAT-WEST LIFE ASSURANCE CO. NON-TRADE (000) 000-0000 Ext. 0000
HMT001 HMT SALES TAX CONSULTANTS INC CDN (905) 648-1224 Ext. 000
911 GOLF LINKS RD SUITE 311 ANCASTER ON L9K 1H9
HOMEEN HOME ENTERTAINMENT U.S. (318) 536-6512 Ext. 0000
PO BOX 142. 311 MAIN ST. GUEYDAN LA 70542 USA
HONEYW HONEYWELL LTD. NON-TRADE (000) 000-0000 Ext. 0000
PO BOX 7401 STN A TORONTO ONT M5W 3C1
WALKER IAN WALKER CDN (000) 000-0000 Ext. 000
INDEPE INDEPENDENT SATELLITE U.S. (214) 283-3474 Ext. 0000
7010 AMERICAN WAY DALLAS TX 75337 USA
INTNIC INTERNIC REGISTRATION SERVICES U.S. (000) 000-0000 Ext. 0000
PO BOX 1656 HERNDON, VA 22070 USA
JRSTEP J.R. STEPHENS NON-TRADE (000) 000-0000 Ext. 0000
12 DONLAND AVE. NEPEAN, ONTARIO K2G 3A3
GUAYJA JAKE GUAY CDN (000) 000-0000 Ext. 0000
GOLDJE JEFF GOLD U.S. (000) 000-0000 Ext. 0000
31504 VALLEY CENTER ROAD VALLEY CENTER, CA 92082 USA
COL001 KATHY COLEMAN U.S. (000) 000-0000 Ext. 0000
HAM001 KIMBERLY HAMM U.S. (000) 000-0000 Ext. 0000
KINGDA KING DAVID'S CARPET CDN ( ) 786-8100 Ext. 0000 PAGER
AND UPHOLSTRY CLEANING
LAIDLA LAIDLAW WASTE SYSTEMS NON-TRADE (613) 224-4463 Ext. 0000
P.O. BOX 15949 STATION F OTTAWA, ONTARIO K2C 3S8
LANGDO LANGSON'S FLOWERS LTD NON-TRADE (613) 521-4440 Ext. 0000
1400 BANK STREET OTTAWA, ON K1H 7Y9
CAR001 LEANNE CARNEGIE U.S. (000) 000-0000 Ext. 0000
BOW001 LEANN BOWMAN U.S. (000) 000-0000 Ext. 0000
LEITCH LEITCH TECHNOLOGY INT'L INC. CDN (416) 445-9640 Ext. 0000
25 DYAS RD NORTH YORK ON M3B 1V7
LOR001 LORI CONGLETON U.S. (000) 000-0000 Ext. 0000
<PAGE>
<CAPTION>
Vendor ID Name Class ID Telephone Number Contact Person
- ------------------------------------------------------------------------------------------------------------------------------------
Address City ProvincePostal Code Country
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NYP001 LYNDSAY NYP U.S. (000) 000-0000 Ext. 0000
MITECH M I TECHNOLOGIES INC U.S. (937) 335-4560 Ext. 0000
3310 E. PETERSON ROAD TROY OH 45373
MSPILI M. SPILIOPOULOS, MANAGING PART NON-TRADE (613) 731-8553 Ext. 0000
1670 HERON ROAD OTTAWA ON K1V 0C2 CANADA
MAGMA MAGMA COMMUNICATIONS CDN (613) 228-3565 Ext. 0000
UNIT 201. 52 ANTARES DR NEPEAN ONT K2E 7Z1
MACKEN MANDY MACKENZIE CDN (000) 000-0000 Ext. 0000
MARKLE MARK L. LEGER U.S. (504) 473-9022 Ext. 0000 MARK LEGER
206 GARDENIA DRIVE DONALDSVILLE LA 70346-9731 U.S.A.
KHA001 MARSHA KHAN U.S. (000) 000-0000 Ext. 0000
KIE001 MARSHA KIEL U.S. (000) 000-0000 Ext. 0000
MCEVOY McEVOY LIMITED CDN (610) 224-4335 Ext. 0000
1800 WOODWARD DRIVE. OTTAWA, ONTARIO K2C 0P7
MCQUAI MCQUAID, METZLEER, MCCORMICK & U.S. (415) 392-7077 Ext. 0000
ONE MARITIME PLAZA, 23RD FLOOR SAN FRANCISCO CA 94111-3577
CHRMEA MEAGHAN CHRISTOU CDN (000) 000-0000 Ext. 0000
SKYREP MEDIA BUSINESS CORP U.S. (303) 271-9960 Ext. 0000
C/O SKY REPORT 807 ARAPAHOE ST. GOLDEN, CO 80401
MERLIN MERLIN SIERRA - LOCAL ACCOUNT U.S. (000) 000-0000 Ext. 0000 AUDREY WOLFE
27357 VALLEY CENTER RD VALLEY CENTER CA 92082
MILDFI MILD FINANCING N.V. CDN (713) 621-2693 Ext. 0000
C/O WOODCO FUND MGMT..INC. 4900 WOODWAY, SUITE 650 HOUSTON TX 77056
MILKYW MILKY WAY PRODUCTIONS, INC. U.S. (212) 989-8001 Ext. 0000
43 WEST 24TH STREET NEW YORK, NY 10010
MILLIK MILLIKEN & MICHAELS U.S. (000) 000-0000 Ext. 0000 ANNA O'BRIEN
3850 N. CAUSEWAY BLVD. STE 200 METAIRIE, LOUSIANA 70002 USA
MINFIN MINISTER OF FINANCE NON-TRADE (000) 000-0000 Ext. 0000
MR. ELEC MR. ELECTRICIAN SATELLITE CTRE CDN (416) 741-3474 Ext. 0000
39 FLEMINGTON DR. CALEDON ON L7C 1B7 CANADA
JAMHUS MR. JAMES HUSTON U.S. (907) 495-6446 Ext. 0000 MR. JAMES HUSTON
PO BOX 38 WILLOW AL 99688 ALASKA
ANDIAN NATALIE ANDIA CDN (000) 000-0000 Ext. 0000
NATSAT NATIONAL SATELLITE PUBLISHING U.S. (000) 000-0000 Ext. 0000
1909 AVENUE G PO BOX 1489 ROSENBERG, TX 77471-1489 USA
NCTA NCTA U.S. (202) 775-3606 Ext. 0000
1225 19TH ST. NW. SUITE 310 WASHINGTON DC 20036
NEWAG2 NEW AGE CONVERSIONS U.S. (818) 752-5053 Ext. 0000
10523 BURBAK BLVD NORTH HOLLYWOOD, CALIFORNIA 91601 USA
NICHEP NICHE PUBLICATIONS U.S. (000) 000-0000 Ext. 0000
PO BOX 1921 LAKE OSWEGO, OR 97035 USA
<PAGE>
<CAPTION>
Vendor ID Name Class ID Telephone Number Contact Person
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Address City ProvincePostal Code Country
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
OGDEN OGDEN ENTERTAINMENT CDN (000) 000-0000 Ext. 0000
1000 PALLADIUM DRIVE BOX 107 KANATA ONT K2V 1A4
OMARGAR OMAR GARCIA U.S. (512) 664-0326 Ext. 0000
310 GREEN ACRES ALICE TX 78332 USA
OMEGAS OMEGASOURCE MTS INC. U.S. (403) 6400-4553 Ext. 0000 GEORGE SYNDWEIR
200 .5824 2ND ST. S.W. CALGARY AB T2H 0H2 CANADA
OMNIIN OMNI INTERNATIONAL U.S. (416) 944-3684 Ext. 0000
12 MacPHERSON AVENUE #1 TORONTO, ONTARIO M5R 1WB
OMVIDE OMVIDEO CDN (613) 228-8800 Ext. 0000
9 CAPELLA COURT NEPEAN, ONTARIO K2E 8A7
ONLINE ON LINE ENTERPRISES U.S. (000) 000-0000 Ext. 0000
C/O JACK MICHAELSON 19822 FRIAR STREET WOODLAND HILLS CA 91367
ONIXLA ONIX LAZER CORPORATION CDN (613) 236-0567 Ext. 0000
8-645 BELFAST RD OTTAWA ON K1G 4V3
OPRYLA OPRYLAND HOTEL U.S. (615) 889-1000 Ext. 0000
2800 OPRYLAND DR NASHVILLE TN 37214
OTTPAV OTTAWA PAVEMASTER CDN (000) 000-0000 Ext. 0000
1213 GREYROCK DR. OTTAWA ONT K2C 2A6
OTTRAV OTTAWA TRAVEL CDN (613) 731-8553 Ext. 0000
1670 HERON ROAD HERONGATE SHOPPING CENTRE OTTAWA, ONTARIO K1V 0C2
OTTOBR OTTO BRYDEN ERSKINE MARTEL CDN (613) 724-9861 Ext. 0000
30 ROSEMOUNT AVE. SUITE 200 OTTAWA, ONTARIO K1Y 1P4
PALISC PALIS CORPORATION CDN (000) 000-0000 Ext. 0000 RAY COUPEL
257 HWY # 17 ROCKLAND ONT K4K 1K9
LACHAN PASCAL LACHANCE CDN (000) 000-0000 Ext. 0000
LACHAN US PASCAL LACHANCE U.S. (000) 000-0000 Ext. 0000
HICKEY PETER HICKEY CDN (000) 000-0000 Ext. 0000
LEPOR2 PETER LEPORE U.S. (000) 000-0000 Ext. 0000
LEPORE PETER LEPORE CDN (000) 000-0000 Ext. 0000
PETTY CASH USD PETTY CASH U.S. (000) 000-0000 Ext. 0000
PETTY CASH PETTY CASH - CDN CDN (000) 000-0000 Ext. 0000
PITNEY PITNEY BOWES NON-TRADE (000) 000-0000 Ext. 0000
P.O. BOX 8700 DON MILLS, ONTARIO M3C 3M4
PITNEL PITNEY BOWES LEASING CDN (000) 000-0000 Ext. 0000
SUITE 200. THE PROMONTORY 1 2695 NORTH SHERIDAN WAY MISSISSAUGA, ON L5K 2N7
POSICO POSICOM INC. CDN (514) 333-7575 Ext. 0000
406-7575 RTE TRANSCANADIENNE VILLE ST-LAURENT, QC H4T 1V6
POSTAG POSTAGE BY PHONE NON-TRADE (000) 000-0000 Ext. 0000
C/O: ROYAL BANK 325 FRONT ST. W. 4TH FL. TORONTO, ONTARIO M5V 2V5
PUROLA PUROLATOR COURIER LTD NON-TRADE (000) 000-0000 Ext. 0000
PO BOX 1100 ETOBICOKE POSTAL STN ETOBICOKE, ON M9C 5K2
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Vendor ID Name Class ID Telephone Number Contact Person
- ------------------------------------------------------------------------------------------------------------------------------
Address City ProvincePostal Code Country
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
QUANTE QUANTEGY INTERNATIONAL INC. CDN (905) 507-9900 Ext. 0000
5560 KENNEDY RD MISSISSAUGA ON L4Z 2A9 CANADA
PAPPAS RAEWEN M. PAPPAS CDN (000) 000-0000 Ext. 0000
RAMADA RAMADA CONGRESS HOTEL CHICAGO U.S. (000) 000-0000 Ext. 0000
CHICAGO IL
RECEIV RECEIVER GENERAL FOR CANADA CDN (000) 000-0000 Ext. 0000
REGION REGIONAL DRAIN SERVICE LTD CDN (613) 722-6741 Ext. 0000
PO BOX 30074 OTTAWA ON K1Z 5N6
REPORT REPORTEX COPY CENTRES INC. CDN (613) 233-1999 Ext. 0000
361 ELGIN STREET OTTAWA ONT K2P 1M7
RHEALM REAHL MINER NON-TRADE (613) 331-0313 Ext. 0000
44 GLAMORGAN DR CANATA, ONTARIO K2L 1R2
RIVER RIVER RUN PADDLING CENTRE CDN (613) 646-2501 Ext. 0000
PO BOX 179 BEACHBURG ON K0J 1C0
HUR001 ROBIN HURT U.S. (000) 000-0000 Ext. 0000
ROGERS ROGERS NETWORK SERVICES CDN (416) 449-3744 Ext. 0000
1 VALLEYBROOK DRIVE DCN MILLS ONT M3B 2S7
FOURNI RON FOURNIER CDN (000) 000-0000 Ext. 0000
ROYAL ROYAL BANK CDN (000) 000-0000 Ext. 0000
ROYALB ROYAL BANK - VISA NON-TRADE (000) 000-0000 Ext. 0000
EASTERN CARD CENTRE 1100 ATWATER AVE WESTMOUNT, QUEBEC H3Z 2Y4
HUN001 RYAN HUNTER U.S. (000) 000-0000 Ext. 0000
SBCA S.B.C.A. U.S. (000) 000-0000 Ext. 0000
USA
SLSINC S.L.S. INC. CDN (613) 748-3969 Ext. 0000 LES
5370 CANOTEK ROAD. UNIT 10 GLOUCESTER, ONTARIO K1J 9E7
SAFEGU SAFEGUARD BUSINESS SYSTEMS NON-TRADE (613) 837-6223 Ext. 0000 IVAN DEBEU
375 BRITANNIA ROAD EAST UNIT 2. MISSISSAUGA, ONTARIO L4Z 3E2
TOLEDO SAM TOLEDO U.S. (000) 000-0000 Ext. 0000
7913 NW 194 ST. MIAMI LAKES FL 33105
ZIM001 SANDY ZIMMERMAN U.S. (000) 000-0000 Ext. 0000
ANT001 SARAH ANTHONY U.S. (800) 960-0563 Ext. 0000
567W. CHANNEL ISLANDS BLVD #344 PORT HUENEME CA 93041 USA
SATLNK SAT-LINK COMMUNICATIONS INC. U.S. (305) 715-9700 Ext. 0000
8181 NW 36 ST.. SUITE 16C MIAMI CA 33166 USA
SATBAH SATELLITE BAHAMAS U.S. (000) 000-0000 Ext. 0000
PO BOX N 9232 NASSAU BS BAHAMAS
SATBUS SATELLITE BUSINESS NEWS U.S. (000) 000-0000 Ext. 0000
1730 RHODE ISLAND. NW. STE 600 WASHINGTON DC 20010
SATPLU SATELLITE PLUS LLC U.S. (000) 000-0000 Ext. 0000
11610 ASHVILLE HWY INMAN SC 29349
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Vendor ID Name Class ID Telephone Number Contact Person
- ------------------------------------------------------------------------------------------------------------------------------
Address City ProvincePostal Code Country
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
SATSER SATELLITE SERVICES U.S. (704) 888-5227 Ext. 0000
812 RENEE FORD RD LOCUST NC 28097 USA
SATTVW SATELLITE T.V. WAREHOUSE U.S. (801) 628-3098 Ext. 0000
155 NORTH BLUFF SAINT GEORGE VT 84770 USA
SAT005 SATELLITE VIDEO CENTER U.S. (000) 000-0000 Ext. 0000
10120 PACIFIC HEIGHTS BLVD SAN DIEGO, CA 92121 USA
SATWAT SATELLITE WATCH NEWS U.S. (000) 000-0000 Ext. 0000
PO POX 475 ROSE CITY, MI 48654
SCHOFI SCHOFIELD MEDIA GROUP U.S. (000) 000-0000 Ext. 0000
95 ALBANY ST./BOX 8 PORTSMOUTH NH 03801
HAR002 SHARON HARIIS U.S. (000) 000-0000 Ext. 0000
NATION SHAW MOBILE COMM CDN (800) 363-0191 Ext. 0000
2300 MARCEL LAURIN BLVD MONTREAL, QC H4R 1K3
SHEELE SHEIK ELECTRONICS U.S. (000) 000-0000 Ext. 0000
500 NW 136TH AVE. MIAMI FL 33182
SHOWTR SHOW TRAX INC U.S. (818) 558-1278 Ext. 0000
1317 N. SAN FEMANDO BLVD #311 BURBANK CA 91504-3800
SIGNAL SIGNAL CDN (416) 463-7678 Ext. 0000
488 DANFORTH AVE., SUITE 201 TORONTO, ON M4K 1P6
SKYWAT SKYWATCH U.S. (302) 846-0300 Ext. 0000
500 N BI-STATE BLVD. DELMAR DE 19940 USA
SLS100 SLS SATELLITE LINK SERVICE INC CDN (000) 000-0000 Ext. 0000 LES
10-5370 CANOTEK ROAD GLOUCESTER ON K1J 9E7
SMALLB SMALL COMPUTER BOOK CLUB CDN (609) 786-9778 Ext. 0000
PO BOX 2727 DELRAN, NJ 08370-2727
SONOVI SONO VIDEO INC. CDN (514) 374-8774 Ext. 0000 LINE DUPERRON
7054 RUE MOLSON MONTREAL, QUEBEC H2A 3K1
SPRIN2 SPRINT CANADA INC. CDN (800) 465-3193 Ext. 0000
2550 VICTORIA PARK, SUITE 400 NORTH YORK, ON M2J 5A9
SPRINT SPRINT COURIER NON-TRADE (613) 742-7171 Ext. 0000
2617 EDINBURGH PLACE OTTAWA, ONTARIO K1B 5M1
ST. JOH ST. JOHN COUNCIL FOR FEDERAL CDN (613) 722-2002 Ext. 0000
DISTRICT 439 CHRUCHILL AVE., NORTH OTTAWA ON K1Z 5E1
STARVI STAR VISION U.S. (210) 804-0554 Ext. 0000
6836 SAN PEDRO SUITE 218 SAN ANTONIO TX 78216 USA
MERKIN STEPHAN MERKINS CDN (000) 000-0000 Ext. 0000
STUART STUART DUNCAN CDN (000) 000-0000 Ext. 0000
HAR001 SUSAN HARRIS U.S. (000) 000-0000 Ext. 0000
SWISH SWISH MAINTENANCE LTD NON-TRADE (705) 745-5763 Ext. 0000
PO BOX 3000, 2060 FISHER DR PETERBOROUGH ON K9J8N4
BR1001 TANYA BRITTON U.S. (000) 000-0000 Ext. 0000
POH001 TANYA JEAN POHLMANN U.S. (000) 000-0000 Ext. 0000
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Vendor ID Name Class ID Telephone Number Contact Person
- ------------------------------------------------------------------------------------------------------------------------------
Address City ProvincePostal Code Country
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
TERRAP TERRA PUBLISHING INC. U.S. (716) 945-5091 Ext. 0000
PO BOX 460 4250 N.STATE STREET SALAMANCA, NY 14779
RENDER TERRY RENDER CDN (000) 000-0000 Ext. 0000
ACADEM THE ACADEMY VENTURE U.S. (818) 753-2504 Ext. 0000
SUITE 200 5200 LANKERSHIM BLVD NORTH HOLLYWOOD CA 91601
TIECOM TIE COMMUNICATIONS CAN. INC NON-TRADE (905) 513-4600 Ext. 0000
7550 BIRCHMOUNT RD MARKHAM, ON L3R 6C6
TOPCEN TOPCENTRE TICKET SERVICE U.S. (202) 452-9040 Ext. 0000
2000 PENNSYLVANIA AVE NW WASHINGTON DC 20006
TRADEA TRADE ASSOCIATES INC. U.S. (000) 000-0000 Ext. 0000
11820 PARKLAWN DR SUITE 250 ROCKVILLE, MD 20852
TRAC01 TRADE SHOW ELECTRICAL U.S. (702) 731-6007 Ext. 0000
3073 S. HIGHLAND LAS VEGAS NV 89109
TRADES TRADE SHOW ELECTRICAL U.S. (310) 302-3201 Ext. 0000
138 ROSECRANS AVE SANTA FE SPRINGS CA 90670
TRIPLE TRIPLED D PUBLISHING INC. U.S. (704) 482-9673 Ext. 0000
P.O. BOX 2384 SHELBY, NORTH CAROLINA 281512384
REFUND TUAN QUOC LE U.S. (000) 000-0000 Ext. 0000
10625 N. 25TH STREET TAMPA FL 33612 U.S.
TURBO2 TURBO FILM U.S. (514) 985-5909 Ext. 0000 HANI
200 ST. JACQUES, SUITE 200 MONTREAL QC H2Y 1M1
TURBOF TURBO FILM CDN (514) 985-5909 Ext. 0000
200-200 RUE ST. JACQUES MONTREAL QUE H2Y 1M1
UNITED UNITED PARCEL SERVECE NON-TRADE (800) 742-5877 Ext. 0000
P.O. BOX 9000 STN A DOWNSVIEW, ONTRIO M3M 389
MAY001 VICKI MAYFIELD U.S. (000) 000-0000 Ext. 0000
VIDEOS VIDEO SATELLITE INC. U.S. (305) 266-0101 Ext. 0000
4743 SW 75TH AVENUE MIAMI FL 33155 USA
VISUAL VISUAL BASIC U.S. (000) 000-0000 Ext. 0000
P.O. BOX 58870 BUOLDER CO 80322-8870
WESTER WESTERN SIGNS & LINE PAINTING CDN (613) 822-2326 Ext. 0000
5779 RUSSELL RD CALSBAD SPRINGS ON K0A 1K0
WHALEY WHALEY FURNITURE AND SATELLITE U.S. (910) 285-4376 Ext. 0000
3286 NC 11 SOUTH TEACHEY NC 28464 USA
WHISTL WHISTLE KLEEN ENTERPRISES LTD. NON-TRADE (613) 727-6287 Ext. 0000
61-B AURIGA DRIVE. NEPEAN, ONTARIO K2E 2B2
WHITE WHITE KNIGHT PROMOTIONS CDN (613) 744-6145 Ext. 0000
1602 SAXONY CRES GLOUCESTER ON K1B 5K6
WIRELE WIRELESS CABLE ASSOCIATION U.S. (202) 452-7823 Ext. 0000 SHERRY CRITTENDEN
1140 CONNECTICUT AVE N.W. SUITE 810 WASHINGTON DC 20036
WORKER WORKERS' COMPENSATION BOARD NON-TRADE (000) 000-0000 Ext. 0000
PO BOX 4115. STN A TORONTO, ONTARIO M5W 2V3
WYNDHA WYNDHAM ANATOLE HOTEL U.S. (000) 000-0000 Ext. 0000
2201 STEMMONS FREEWAY, SUITE 1000 DALLAS TX 75207
YEGEND YEGENDORF, BRAZEAU, SELLER, CDN (613) 233-2139 Ext. 0000
PREHOGAN & WYLLIE 750-55 MERCALFE STREET OTTAWA ONT K1P 6L5
</TABLE>
<PAGE>
SCHEDULE 2.2
ALLOCATION OF PURCHASE PRICE
The Purchase Price is allocated to the Subject Assets as follows:
US$137,415 any and all trademarks, proprietary rights and other intellectual
property rights owned by Seller and associated with its Adult
Movies Business. These include but are not necessarily limited
to the trade names, trademarks and/or service marks listed on
SCHEDULE 1(a) of the Asset Purchase Agreement, "Trademarks List,"
and any goodwill associated with such trade names, trademarks
and/or service marks
US$362,580 to all subscriptions for its Adult Movies Business as of the Date
of Closing, including all subscriber lists, past and present, and
any other marketing data related thereto, in the possession of
Seller, as described in SCHEDULE 1(b) of the Asset Purchase
Agreement. "Subscribers List" (and it is understood that the
subscriber lists shall be delivered on disk(s) in electronic form
only because of the length of such lists)
US$1 to a complete list of all advertisers, marketing partners and
vendors used by Seller in relations to its Adult Movies Business
and related services, with contact names, mailing addresses, and
phone and fax numbers; as set forth in SCHEDULE 1(c) of the Asset
Purchase Agreement, "Vendors List"
US$1 to all rights, title and interest Seller may have in 1-800 phone
numbers used for its Adult Movies Business and related services
and in any World Wide Web address and websites used in its Adult
Movies Business
US$1 copies of all papers, computerized databases, and records in
Seller's custody or control relating to any or all of the above
described assets and the operation of Seller's Adult Movies
Business, including but not limited to all sales and subscription
records, maintenance and production records, but excluding
accounting and financial records and personnel and labor
relations records
US$1 to all rights, title and interests in any permits, licenses,
franchises, consents or authorizations issued by, and all
registrations and filings with, any government agency solely in
connection with Adult Movies Business of Seller, whenever issued
or filed, (including but not limited to any permits or licenses
from the Canadian Radio-Television and Telecommunications
Commission and any permits or licenses from the Federal
Communications Commission) excepting only those which by law are
non-transferable or those which have expired
<PAGE>
2
US$1 to a non-exclusive royalty free license to use one networkable
copy of version 2.0 or any updated version of "First Link"
subscription management software
<PAGE>
SCHEDULE 4
LEASES, CONTRACTS, AND AGREEMENTS
<PAGE>
SCHEDULE 4
LEASES, CONTRACTS & AGREEMENTS
Seller shall assign and transfer and Buyer shall have the benefit of
and shall perform and assume the following Leases, Contracts and Agreements in
accordance with the conditions thereof, except to the extent set forth in the
subsequent Assignment or Assignment and Assumption Agreement for such Leases,
Contracts and Agreements:
1. Direct Marketing Agreement dated March 1, 1996 between:
Fifth Dimension Communications (Barbados) Inc., 1043133 Ontario
Inc. and TVE Communications LLC, as the First Parties, and
American Programming Service, as the Second Party
2. Direct Marketing Agreement dated March 1, 1996 between:
Fifth Dimension Communications (Barbados) Inc., 1043133 Ontario
Inc. and TVE Communications LLC, as the First Parties, and
Consumer Satellite Systems, Inc. as the Second Party
3. Direct Marketing Agreement dated March 1, 1996 between:
Fifth Dimension Communications (Barbados) Inc., 1043133 Ontario
Inc. and TVE Communications Inc., as the First Parties, and
Freedom Satellite as the Second Party
4. Direct Marketing Agreement dated March 1, 1996 between:
Fifth Dimension Communications (Barbados) Inc., 1043133 Ontario
Inc. and TVE Communications Inc., as the First Parties, and
FTP Services as the Second Party
5. Direct Marketing Agreement dated April 1, 1996 between:
Fifth Dimension Communications (Barbados) Inc., 1043133 Ontario
Inc. and TVE Communications Inc., as the First Parties, and
Galaxy Satellite Programming Inc. as the Second Party
6. Direct Marketing Agreement dated March 1, 1996 between:
Fifth Dimension Communications (Barbados) Inc., 1043133 Ontario
Inc. and TVE Communications LLC, as the First Parties, and
North American Programming Services Inc. as the Second Party
7. Direct Marketing Agreement dated March 1, 1996 between:
Fifth Dimension Communications (Barbados) Inc., 1043133 Ontario
Inc. and TVE Communications LLC, as the First Parties, and
Program Source as the Second Party
<PAGE>
8. Direct Marketing Agreement dated April 1, 1996 between:
Fifth Dimension Communications (Barbados) Inc., 1043133 Ontario
Inc. and TVE Communications Inc., as the First Parties, and
Satellite Direct Communications as the Second Party
9. Direct Marketing Agreement dated March 1, 1996 between:
Fifth Dimension Communications (Barbados) Inc., 1043133 Ontario
Inc. and TVE Communications Inc., as the First Parties, and
Satellite Programming Services as the Second Party
10. Direct Marketing Agreement dated March 1, 1996 between:
Fifth Dimension Communications (Barbados) Inc., 1043133 Ontario
Inc. and TVE Communications LLC, as the First Parties and
Satellite Receivers LTD as the Second Party
11. Direct Marketing Agreement dated March 1, 1996 between:
Fifth Dimension Communications (Barbados) Inc., 1043133 Ontario
Inc. and TVE Communications Inc., as the First Parties, and
Satellite Source as the Second Party
12. Direct Marketing Agreement dated March 1, 1996 between:
Fifth Dimension Communications (Barbados) Inc., 1043133 Ontario
Inc. and TVE Communications LLC, as the First Parties, and
Skywalker Communications Inc. as the Second Party
13. Direct Marketing Agreement dated July 1, 1996 between:
Fifth Dimension Communications (Barbados) Inc., 1043133 Ontario
Inc. and TVE Communications Inc., as the First Parties, and
Superstar/Netlink Group LLC as the Second Party
14. Direct Marketing Agreement dated March 1, 1996 between:
Fifth Dimension Communications (Barbados) Inc., 1043133 Ontario
Inc. and TVE Communications Inc., as the First Parties, and
Turner Vision, Inc. as the Second Party
15. Direct Marketing Agreement dated March 1, 1996 between:
Fifth Dimension Communications (Barbados) Inc., 1043133 Ontario
Inc. and TVE Communications LLC, as the First Parties, and
Universal Satellite TV Inc. as the Second Party
16. Cable/SMATV Affiliate United States Agreement dated April 1, 1996 between:
104333 Ontario Inc. and TVE Communications LLC, as the First
Parties, and American Telecasting Inc. as the Second Party
<PAGE>
17. SMATV/Cable Affiliate Agreement dated September 1, 1996 between:
1043133 Ontario Inc. as the First Party, and Aventura Cable Corp.
as the Second Party
18. SMATV/NVOD Affiliate United States Agreement dated September 23, 1996
between: 1043133 Ontario Inc. and TVE Communications LLC, as the First
Parties, and California Business Systems as the Second Party
19. SMATV/Cable Affiliate Agreement dated January 10, 1996 between:
1043133 Ontario Inc. as the First Party, and Entertainment
Connections Inc. as the Second Party
20. SMATV, VOD/NVOD Affiliate United States Agreement dated March 1, 1996
between: 1043133 Ontario Inc. and TVE Communications LLC, as the First
Parties, and Galaxy Compuvision Inc. as the Second Party
21. NVOD/SMATV Affiliate Canadian Agreement dated March 1, 1996 between:
1043133 Ontario Inc. and TVE Communications LLC, as the First
Parties, and Galaxy Compuvision Inc. as the Second Party
22. Cable/SMATV Affiliate United States Agreement dated May 1, 1996 between:
1043133 Ontario Inc. and TVE Communications LLC as the First
Parties, and Heifner Communications, Inc. as the Second Party
23. SMATV/Cable Affiliate Agreement dated December 1, 1994 between:
1043133 Ontario Inc. as the First Party, and Omega Communication
Systems Inc. as the Second Party
24. Cable/SMATV Affiliate United States Agreement dated September 9, 1996
between: 1043133 Ontario Inc. and TVE Communications LLC, as the First
Parties and Private Cable Company as the Second Party
25. SMATV/Cable Affiliate Agreement dated March 23, 1995 between:
1043133 Ontario Inc. as the First Party, and
Pulsar Video as the Second Party
26. SMATV/NVOD Affiliate Unites States Agreement dated May 7, 1997 between:
1043133 Ontario Inc. as the First Party, and
R.A. Satellite Systems, Inc. as the Second Party
27. NVOD/SMATV Affiliate Canadian Agreement dated April 22, 1997 between:
1043133 Ontario Inc. and TVE Communications LLC as the First
Parties, and Triple Crown as the Second Party
<PAGE>
28. Cable/SMATV Affiliate United States Agreement dated October 1, 1996
between: 1043133 Ontario Inc. and TVE Communications LLC as the
First Parties, and T.V. Cable LTDA, as the Second Party
29. Cable/SMATV Affiliate United States Agreement dated September 25, 1996
between: 1043133 Ontario Inc. and TVE Communications LLC as the First
Parties, and USA Wireless as the Second Party
<PAGE>
SCHEDULE 7.2(a)
COMBINED FINANCIAL STATEMENTS
[attached]
<PAGE>
[LETTERHEAD]
To the Directors of
1043133 Ontario Inc.
Fifth Dimension Communications (Barbados) Inc.
Merlin Sierra Inc.
250 Don Reid Drive
Ottawa, Ontario
K1H 8P5
As requested by the directors of 1043133 Ontario Inc., Fifth Dimension
Communications (Barbados) Inc. and Merlin Sierra Inc., we report that
adjusted pre-tax income for the year ended March 31, 1997 was $2,755,297.
The determination of adjusted pre-tax income is set out in the attached
schedule. The adjustments to the pre-tax income reported in the audited
combined financial statements of the three companies have been made in
accordance with the letter of intent between New Frontier Media, Inc. and
1043133 Ontario Inc., Fifth Dimension Communications (Barbados) Inc., and
Merlin Sierra Inc. dated April 14, 1997 except for items o), p), q), r), s)
and t) which were not specifically listed.
Our audit of the combined financial statements for the year ended March 31,
1997 was not directed to the determination of adjusted pre-tax income or
the specific adjustments to reported pre-tax income on the combined
financial statements. We also have not audited the companies' financial
statements for the period subsequent to March 31, 1997. We have not
performed an audit of and, accordingly, do not express an opinion on the
amount of adjusted pre-tax income referred to in the preceding paragraph.
The compliance of the adjustments with the criteria established in the
letter of intent is the responsibility of management of the companies. Our
procedures were limited to the agreement of the price adjustments to the
general ledger accounts of the companies.
It is understood that this report is to be used solely for computing the
purchase price pursuant to the aforementioned letter of intent and is not
to be referred to or distributed to any person not a member of management
of 1043133 Ontario Inc.. Fifth Dimension Communications (Barbados) Inc.,
Merlin Sierra Inc. or New Frontier Media Inc.
If you have any questions, please do not hesitate to contact us.
Yours sincerely,
/s/ Ernst & Young
S.R. (Steve) Pittman/
Mylene N. Levac-Wolf
<PAGE>
- --------------------------------------------------------------------------------
AUDITORS' REPORT
- --------------------------------------------------------------------------------
To the Directors of
FIFTH DIMENSION COMMUNICATIONS (BARBADOS) INC.,
1043133 ONTARIO INC. AND MERLIN SIERRA INC.
We have audited the combined balance sheet of FIFTH DIMENSION COMMUNICATIONS
(BARBADOS) INC., 1043133 ONTARIO INC. AND MERLIN SIERRA INC. as at March 31,
1997 and 1996 and the combined statements of income and retained earnings and
cash flows for the year then ended. These combined financial statements are the
responsibility of the companies' management. Our responsibility is to express an
opinion on these combined financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform an audit to obtain reasonable
assurance whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation.
In our opinion, these combined financial statements present fairly, in all
material respects, the financial position of the companies as at March 31, 1997
and 1996 and the results of their operations and the changes in their financial
position for the years then ended in accordance with generally accepted
accounting principles accepted in the United States.
/s/ Ernst & Young
Ottawa, Canada,
June 27, 1997. Chartered Accountants
<PAGE>
[LETTERHEAD]
FIFTH DIMENSION COMMUNICATIONS (BARBADOS) INC.
1043313 ONTARIO INC., AND MERLIN SIERRA INC.
<TABLE>
<CAPTION>
List of Adjustments to net income from operations before tax: 1997 1996
---- ----
<S> <C> <C>
(a) add-back of salaries and benefits paid to Douglas Duncan, Stuart
Duncan, Dan Bender, and Nina Frid which in the aggregate are
in excess of $200,000 CDN; 234,031 96,712
(b) add-back of salaries and benefits and termination costs related
to Judith Christou, Richard Latham and Nina Frid, and
termination costs related to other employees; 84,783 33,311
(c) an adjustment so that the average monthly cost of movies is
reduced to US$75,000; 41,388 0
(d) add-back of amounts paid to VTV and expenses in the accounts
of an Adult Company; 0 0
(e) add-back of amounts paid to lawyers in connection with this and
previous acquisitions and proposed acquisitions of or by the
Adult Companies or any of them (including the acquisition
of Merlin Sierra Inc.); 21,294 5,356
(f) add-back of the amount (if any) by which the transponder costs
incurred in January 1997 exceeded the average monthly
transponder costs over the preceding 3 months; 0 0
(g) add-back of promotional, entertainment and other costs related
to the corporate suite at the Corel Centre in Ottawa: 78,980 18,795
(h) add-back of payments made to Jeff Gold, Galaxy Communications
International Inc. and Surmount Inc. which payments have been
expensed in the accounts of 5DB; 305,982 281,923
(i) add-back of all costs related to the Valley Center office including
rent paid to Dan Bender and salaries and termination allowances
paid to staff of such office; 415,727 150,008
(j) add-back of automobile lease payments made on behalf of
Douglas Duncan and Stuart Duncan; 5,670 0
(k) add-back of payments made to RocketSoft Inc. for services
provided by Denis Dagernais; 17,182 0
<PAGE>
[LETTERHEAD]
(l) add-back of interest paid on Best Bank loan (regarding Merlin
Sierra Inc.): 10,848 2,820
(m) add-back of payments made to On-line Enterprises and
Jack Michaelson: 9,000 0
(n) add-back of AT&T telephone penalty for not meeting contractual
commitment: 0 0
(o) add-back of write off of advances to parent companies considered
uncollectible for audit purposes: 20,141 91,217
(p) add-back of amortization of lump sum payments made to Starcom
for 401-1 in January, 1995 and capitalized for audit purposes: 202,899 243,478
(q) Loss on investment in shares: 220,000 0
(r) Amounts paid to Fred Pantalone during his training period with
Judith Christou, as well as termination costs: 6,317 0
(s) Other litigation costs: and 80,057 42,283
(t) Other expenses incurred in connection with this and previous
acquisitions and proposed acquisitions of or by the Adult
Companies or any of them (including the acquisition of Merlin
Sierra Inc.) 1,349 7,934
---------- ----------
Total Adjustments 1,756,148 974,337
Pre-tax income to March 31 999,148 2,007,640
-------------------------
Adjusted pre-tax income to March 2,755,296 2,981,977
-------------------------
-------------------------
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
COMBINED FINANCIAL STATEMENTS
FIFTH DIMENSION
COMMUNICATIONS (BARBADOS)
INC., 1043133 ONTARIO INC. AND
MERLIN SIERRA INC.
March 31, 1997 and 1996
[LOGO]
<PAGE>
- --------------------------------------------------------------------------------
FIFTH DIMENSION COMMUNICATIONS (BARBADOS) INC,
1043133 ONTARIO INC., MERLIN SIERRA INC. [NOTE 1]
COMBINED BALANCE SHEETS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
As at March 31
1997 1996
$ $
- --------------------------------------------------------------------------------
[U.S. DOLLARS]
ASSETS
CURRENT
Cash 642,466 615,559
Accounts receivable - net allowance for doubtful
accounts of $1,450 (1996 - $59,530)[NOTE 6] 3,014,470 2,325,217
Film exhibition rights 525,765 651,442
Inventory -- 11,409
Transponder deposits 200,000 150,000
Deferred income taxes -- 71,500
Prepaid expenses 282,883 623,756
- --------------------------------------------------------------------------------
4,665,584 4,448,883
Non-current portion of film exhibition rights 222,566 11,493
Restricted investments - at cost [NOTE 3] 691,492 825,449
Investment in shares -- 220,000
Capital assets - net (NOTE 4) 348,463 400,259
- --------------------------------------------------------------------------------
5,928,105 5,906,084
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Bank loan [NOTE 5] 35,128 98,958
Accounts payable and accrued charges [NOTE 6] 1,481,055 1,766,385
Income taxes payable [NOTE 10] 382,082 08,744
Deferred subscription revenue 1,720,810 2,075,357
- --------------------------------------------------------------------------------
3,619,075 4,349,424
- --------------------------------------------------------------------------------
SHAREHOLDER'S EQUITY
Capital stock [NOTE 8] 272 272
Retained earnings 2,308,758 1,556,388
- --------------------------------------------------------------------------------
2,309,030 1,556,660
- --------------------------------------------------------------------------------
5,928,105 5,906,084
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SEE ACCOMPANYING NOTES
<PAGE>
- --------------------------------------------------------------------------------
FIFTH DIMENSION COMMUNICATIONS (BARBADOS) INC.
1043133 ONTARIO INC., MERLIN SIERRA INC.
COMBINED STATEMENTS OF INCOME
AND RETAINED EARNINGS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Year ended March 31
1997 1996
$ $
- --------------------------------------------------------------------------------
[U.S. DOLLARS]
Sales [NOTE 6] 15,044,139 12,223,731
Cost of sales [NOTE 6] 9,560,847 6,317,438
- --------------------------------------------------------------------------------
Gross profit 5,483,292 5,906,293
Expenses - schedule [NOTE 6] 4,264,144 3,398,653
- --------------------------------------------------------------------------------
Net income from operations 1,219,148 2,007,640
Loss on investment in shares 220,000 --
- --------------------------------------------------------------------------------
999,148 2,007,640
- --------------------------------------------------------------------------------
Provision for (recovery of) income taxes
- Current 30,350 (113,563)
- Deferred 71,500 (71,500)
- --------------------------------------------------------------------------------
101,850 (185,063)
- --------------------------------------------------------------------------------
Net income for the year 897,298 2,192,703
Retained earnings (deficit) - beginning of year 1,556,388 (636,315)
- --------------------------------------------------------------------------------
2,453,686 1,556,388
Dividends paid 144,928 --
- --------------------------------------------------------------------------------
Retained earnings, end of year 2,308,758 1,556,388
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SEE ACCOMPANYING NOTES
[LOGO]
<PAGE>
- --------------------------------------------------------------------------------
FIFTH DIMENSION COMMUNICATIONS (BARBADOS) INC.
1043133 ONTARIO INC., MERLIN SIERRA INC.
COMBINED STATEMENTS OF CHANGES
IN FINANCIAL POSITION
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Year ended March 31
1997 1996
$ $
- --------------------------------------------------------------------------------
[U.S. DOLLARS]
CASH PROVIDED FROM (USED IN)
OPERATING ACTIVITIES
Net income for the year 897,298 2,192,703
Items not affecting cash -
Amortization of capital assets 120,347 144,398
Amortization of film exhibition rights 931,637 776,753
Loss on investment in shares 220,000 --
Deferred income taxes 71,500 (71,500)
Net change in operating components
of working capital (936,660) (821,134)
- --------------------------------------------------------------------------------
1,304,122 2,221,175
- --------------------------------------------------------------------------------
INVESTING ACTIVITIES
Investment in shares -- (220,000)
Purchases of capital assets (74,682) (144,108)
Sales of capital assets 6,131 11,893
Transfers of capital assets to related company -- 567,373
(Advances to) repayments from,
Teletheatre Plus Inc. 718,432 (718,432)
Purchases of film exhibition rights (1,017,033) (904,121)
(Purchase) redemption of restricted
investments 133,957 (22,135)
- --------------------------------------------------------------------------------
(233,195) (1,429,530)
- --------------------------------------------------------------------------------
FINANCING ACTIVITIES
Capital stock -- 100
Dividends (144,928) --
Net change in accounts receivable and
accounts payable, related companies (835,262) (398,661)
- --------------------------------------------------------------------------------
(980,190) (398,561)
- --------------------------------------------------------------------------------
Increase in cash equivalents for the year 90,737 393,084
Cash equivalents - beginning of year 516,601 123,517
- --------------------------------------------------------------------------------
CASH EQUIVALENTS - END OF YEAR 607,338 516,601
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CASH EQUIVALENTS IS COMPRISED OF:
Cash 642,466 615,559
Bank loan (35,128) (98,958)
- --------------------------------------------------------------------------------
607,338 516,601
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SEE ACCOMPANYING NOTES
[LOGO]
<PAGE>
- --------------------------------------------------------------------------------
FIFTH DIMENSION COMMUNICATIONS (BARBADOS) INC.
1043133 ONTARIO INC., MERLIN SIERRA INC.
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
March 31, 1997
1. BASIS OF PRESENTATION
These financial statements present the combined assets, liabilities, revenues
and expenses of Fifth Dimension Communications (Barbados) Inc. and 1043133
Ontario Inc. for the years ended March 31, 1997 and 1996 and those of Merlin
Sierra Inc., from February 1, 1996, the date of acquisition to March 31, 1996
and the year ended March 31, 1997.
The three companies carry on complimentary but different businesses related to
the broadcasting of movies to subscribers by satellite and cable. Fifth
Dimension Communications (Barbados) Inc. is incorporated under the laws of
Barbados. 1043133 Ontario Inc. is Incorporated under the laws of the Province of
Ontario in Canada and Merlin Sierra Inc. is incorporated under the laws of the
State of California in the United States. None of the three companies own shares
in the other companies.
These combined financial statements have been prepared by management in
accordance with generally accepted accounting principles In the United States
applied on a consistent basis and are presented in United States dollars. They
nave been prepared in connection with a proposed sale of the combined business
of the three companies as expressed in a letter of intent dated April 14, 1997.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the dates of financial statements and the
reported amounts of revenues and expenses during the reporting periods. Actual
results could differ from those estimates.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVENTORY
Inventory is recorded at the lower of cost and net realizable value.
FILM EXHIBITION RIGHTS
Rights to exhibit films are recorded at cost and are amortized on a
straight-line basis over the period of the contract, which is normally
twenty-four months.
INVESTMENT IN SHARES
The investment in shares, originally recorded at cost, has been accounted for by
the equity basis.
[LOGO]
<PAGE>
- --------------------------------------------------------------------------------
FIFTH DIMENSION COMMUNICATIONS (BARBADOS) INC.
1043133 ONTARIO INC., MERLIN SIERRA INC.
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
March 31, 1997
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D)
CAPITAL ASSETS
Capital assets are initially recorded at cost and amortized over their estimated
useful lives. Furniture and fixtures are being amortized on the diminishing
balance basis at a rate of 20% per year. Automobiles and computers are being
amortized on the diminishing balance basis at a rate of 30% per year. Leaseholds
and the telephone system are amortized on a straight line basis over the five
year term of the realty lease. Software is amortized at a 100% rate.
REVENUE RECOGNITION
Revenue from sales of television movie subscriptions from three to twelve months
is recognized on a monthly basis over the term of the subscription.
FOREIGN EXCHANGE
Assets and liabilities denominated in currencies other than United States
dollars are translated at exchange rates in effect at the balance sheet date.
Revenue and expense items are translated at average rates of exchange for the
year. Translation gains and losses are included in the determination of
earnings.
3, RESTRICTED INVESTMENTS
Restricted investments consist of short-term marketable securities and deposits
recorded at cost held as collateral by the financial institutions providing
merchant credit card service to 1043133 Ontario Inc.
4. CAPITAL ASSETS
<TABLE>
<CAPTION>
1997 1996
----------------------- -----------------------
ACCUMULATED ACCUMULATED
COST AMORTIZATION COST AMORTIZATION
$ $ $ $
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Furniture and fixtures 101,562 40,196 95,444 25,522
Leaseholds 52,004 15,042 50,470 31,528
Telephone system 105,297 44,836 100,731 398
Automobiles 55,489 36,028 55,489 20,352
Computers 298,197 149,749 271,439 100,640
Software 38,234 16,469 14,766 9,640
- ------------------------------------------------------------------------------------------------
650,783 302,320 588,339 188,080
Accumulated amortization 302,320 188,080
- ------------------------------------------------------------------------------------------------
348,463 400,259
- ------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------
</TABLE>
2
[LOGO]
<PAGE>
- --------------------------------------------------------------------------------
FIFTH DIMENSION COMMUNICATIONS (BARBADOS) INC.
1043133 ONTARIO INC., MERLIN SIERRA INC.
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
March 31, 1997
5. BANK LOAN
The bank loan to Merlin Sierra Inc. bears Interest at 16% with monthly principal
repayments of $12,143 to June, 1997. The loan is secured by a commercial
security agreement on all assets of Merlin Sierra Inc. and personal guarantees
of certain officers of Merlin Sierra Inc.
6. RELATED COMPANY INFORMATION
The companies are related by common control.
(a) ACCOUNTS RECEIVABLE AND ACCOUNTS PAYABLE
Accounts receivable include amounts due from related companies totalling
$1,492,275 (1996 $1,764,866). Accounts payable Include amount due to related
companies totalling $471,282 (1996 $860,703).
The significant balances receivable from or (payable to) related companies are
as follows:
1997 1996
$ $
- --------------------------------------------------------------------------------
Fifth Dimension Communications (1996) Corporation (171,971) (698,347)
Fifth Dimension Communications Holdings. Inc. 461,599 45,880
Fifth Dimension Capital Corporation 929,854 577,517
Fifth Dimension Communications Atlantic Inc. -- 132,609
Fifth Dimension SatCom Inc. (86,408) 31,408
Turks & Caicos Island Wireless Television Ltd. (150,000)
Fifth Dimension Technologies Inc. 60,066 (102,772)
FirstLink Communications Inc. 14,011 164,671
Teletheatre Plus Inc. note receivable -- 718,432
3
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<PAGE>
- --------------------------------------------------------------------------------
FIFTH DIMENSION COMMUNICATIONS (BARBADOS) INC.
1043133 ONTARIO INC., MERLIN SIERRA INC.
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
March 31, 1997
6. RELATED COMPANY INFORMATION (CONT'D)
(b) TRANSACTIONS
Related party transactions are measured at exchange values which correspond to
the amount established and agreed upon by both parties.
The significant transactions entered into by 1043133 Ontario Inc. with related
companies are as follows:
Rented offices from Fifth Dimension Capital Corporation for $47,386 (1996
$47,826).
Rented satellite uplink from 841161 Ontario Limited for $562,000 (1996
$562,000) and space for broadcasting facilities for $41,526 (1996 $18,141).
Prepaid expenses include prepaid rent to 341161 Ontario Limited of $113,000
(1996 Nil).
Purchased accounting and administrative services from Fifth Dimension
Capital Corporation for $166,423 (1996 $142,140).
Purchased engineering services from Fifth Dimension SatCom Inc. for
$365,836 (1996 $374,177).
Purchased full period satellite space segment from Fifth Dimension
Communications (1996) Corporation for Nil (1996 $377,570) and occasional
use satellite space segment for $53,934 (1996 Nil) and rented broadcasting
equipment for $113,000 (1996 $117,174). In addition, a management fee of
$81,500 was charged to Fifth Dimension Communications (1996) Corporation in
1996. No amount was required to be charged in 1997.
Purchased subscriber activation services from FirstLink Communications Inc.
for $224,275 (1996 $181,017).
Wrote down amounts receivable from NA Microsat Corporation of $20,141 (1996
$91,217) to their estimated realizable value.
Transferred equipment to Fifth Dimension Communications (1996) Corporation
for $564,161 (1996 Nil).
Rented a hospitality suite from Fifth Dimension Technologies Inc. for
$75,938 (1996 $18,750) and purchased computer equipment for $30,605 (1996
$38,287).
4
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<PAGE>
- --------------------------------------------------------------------------------
FIFTH DIMENSION COMMUNICATIONS (BARBADOS) INC.
1043133 ONTARIO INC., MERLIN SIERRA INC.
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
March 31, 1997
6. RELATED COMPANY INFORMATION (CONT'D)
The significant transactions entered into by Merlin Sierra Inc. with related
companies are as follows:
Purchase of satellite space segment from Fifth Dimension Communications
(1996) Corporation for $1,188,000 (1996 $132,000).
The significant transactions entered into by Fifth Dimension Communications
(Barbados) Inc. with related companies are as follows:
Sold to Fifth Dimension Atlantic Communications Inc. space segment for
$76,500 (1996 $102,000).
Rented broadcasting equipment for $25,700 (1996 Nil) and purchased
occasional use satellite space segment for $80,900 (1996 Nil) from Fifth
Dimension Communications (1996) Corporation.
Purchased subscriber activation services from FirstLInk Communications Inc.
for $34,600 (1996 Nil).
Purchased engineering services from Fifth Dimension SatCom Inc. for $92,000
(1996 Nil).
(c) COMMITMENTS
Commitments by 1043133 Ontario Inc. to related companies are as follows:
The minimum amounts of future lease payments to 841161 Ontario Limited for
office accommodation are $40,000 for each of 1998 and 1999.
The minimum amounts of future lease payments to 841161 Ontario Limited for
a satellite uplink facility are $62,000 for 1998 and $31,000 for 1999.
The minimum amounts of future lease payments to Fifth Dimension Capital
Corporation for office facilities are $48,000 for 1998 and 1999.
A commitment to purchase full period satellite space segment from Fifth
Dimension Communications (1996) Corporation for $770,000.
The minimum amount of future lease payments to Fifth Dimension
Communications (1996) Corporation are $128,070 for 1998.
A commitment to Fifth Dimension SatCom Inc. for the purchase of engineering
services in amounts which are based on usage.
5
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<PAGE>
- --------------------------------------------------------------------------------
FIFTH DIMENSION COMMUNICATIONS (BARBADOS) INC.
1043133 ONTARIO INC., MERLIN SIERRA INC.
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
March 31, 1997
7. THIRD PARTY COMMITMENT AND CONTINGENT LIABILITIES
Commitments of Fifth Dimension Communications (Barbados) Inc.
The Company will be committed as of July 1, 1997 for purchases of full
period space segment on three additional satellite transponders totalling
$22.5 million during the estimated five year life of the contracts.
The Company has committed as of March 31, 1997 to purchase full period
space segment totalling $5.4 million to December 31, 1999.
Fifth Dimension Communications (Barbados) Inc. and 1043133 Ontario Inc. have
given a guarantee to the vendor in regard to the unpaid purchase price for the
acquisition of the business of Merlin Sierra Inc. for a total amount of
$850,000. The balance owing as at March 31, 1997 was $643,330 (1996 Nil)
1043133 Ontario Inc. has a commitment to purchased promotional video services of
$217,000 in each of 1998 and 1999.
8. CAPITAL STOCK
1997 1996
$ $
- ----------------------------------------------------------------------------
AUTHORIZED
Fifth Dimension Communications (Barbados) Inc. is
authorized to issue an unlimited number of common shares
and redeemable non-voting preference shares. Non-
cumulative dividends on both classes of shares may be
declared at the discretion of the directors.
1043133 Ontario Inc. is authorized to issue an unlimited
number of common shares.
Merlin Sierra Inc. is authorized to issue 50 common shares.
ISSUED
Fifth Dimension Communications (Barbados) Inc.
100 Common shares
100 100
1043133 Ontario Inc.
100 Common shares
72 72
Merlin Sierra Inc.
100 Common shares 100 100
- --------------------------------------------------------------------------------
272 272
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
6
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<PAGE>
- --------------------------------------------------------------------------------
FIFTH DIMENSION COMMUNICATIONS (BARBADOS) INC.
1043133 ONTARIO INC., MERLIN SIERRA INC.
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
March 31, 1997
9. FAIR MARKET VALUE
The carrying amounts of the current assets and liabilities, restricted
investments and investment in shares approximate fair market values.
10. INCOME TAXES
The Companies have accumulated timing differences relating to a write down of
accounts receivable which, if recognized, would have resulted in a deferred
income tax debit of $365,000 (1996 $351,000). A valuation allowance for deferred
tax assets was booked for $365,000 (1996 $351,000).
7
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<PAGE>
- --------------------------------------------------------------------------------
FIFTH DIMENSION COMMUNICATIONS (BARBADOS) INC.
1043133 ONTARIO INC., MERLIN SIERRA INC.
COMBINED SCHEDULE OF EXPENSES
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Year ended March 31
1997 1996
$ $
- ------------------------------------------------------------------------------
[U.S. DOLLARS]
Advertising 360,204 425,996
Amortization of capital assets 120,347 144,398
Bank and credit card charges 209,824 115,061
Bad debts 68,000 162,095
Business development 3,361 15,369
Commissions 363,457 375,924
Computer 9,970 25,309
Consulting fees 11,718 3,166
Employee benefits 104,959 114,100
Interest 158,749 161,305
Insurance 10,186 12,133
Maintenance 24,868 28,381
Office 265,761 233,149
Professional fees 346,329 230,752
Rent 202,171 96,390
Salaries 1,545,755 1,282,237
Sales expense 2,500 556
Security 4,655 945
Taxes other than income 4,053 604
Travel 164,136 153,260
Telephone 254,398 289,436
Utilities 28,643 22,087
- ------------------------------------------------------------------------------
4,264,144 3,898,653
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
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<PAGE>
SCHEDULE 7.2(b)
STUB PERIOD FINANCIAL STATEMENTS
[attached]
<PAGE>
FIFTH DIMENSION COMMUNICATIONS
(BARBADOS) INC., 1043133 ONTARIO INC.
AND MERLIN SIERRA INC.
UNAUDITED COMBINED FINANCIAL STATEMENTS
For the three months ended June 30, 1997 and June 30, 1996
and the years ended March 31, 1997 and 1996
<PAGE>
FIFTH DIMENSION COMMUNICATIONS (BARBADOS) INC.
1043133 ONTARIO INC. AND MERLIN SIERRA INC.
UNAUDITED COMBINED BALANCE SHEETS AS AT JUNE 30, 1997
(UNITED STATES DOLLARS)
ASSETS
<TABLE>
<CAPTION>
June 30 March 31 March 31
1997 1997 1996
$ $ $
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C>
CURRENT ASSETS
Cash 524,376 642,466 615,559
Accounts receivable - net allowance for doubtful
accounts of $1,450 (1996 $59,530) 2,953,093 3,014,470 2,325,217
Film exhibition rights 495,319 525,765 651,442
Inventory -- -- 11,409
Transponder deposits 200,000 200,000 150,000
Deferred income taxes -- -- 71,500
Prepaid expenses 291,657 282,883 623,756
--------- --------- ---------
4,464,445 4,665,584 4,448,883
NON-CURRENT PORTION OF FILM EXHIBITION RIGHTS 158,227 222,566 11,493
RESTRICTED INVESTMENTS - at cost 672,775 691,492 825,449
INVESTMENT IN SHARES -- -- 220,000
CAPITAL ASSETS - net 406,286 348,463 400,259
--------- --------- ---------
5,701,733 5,928,105 5,906,084
--------- --------- ---------
--------- --------- ---------
LIABILITIES
CURRENT LIABILITIES
Bank loan - 35,128 98,958
Accounts payable and accrued charges 902,425 1,481,055 1,766,385
Income taxes payable 402,082 382,082 408,744
Deferred subscription revenue 1,794,101 1,720,810 2,075,337
--------- --------- ---------
3,098,608 3,619,075 4,349,424
--------- --------- ---------
SHAREHOLDERS' EQUITY
CAPITAL STOCK 272 272 272
RETAINED EARNINGS 2,602,853 2,308,758 1,556,388
--------- --------- ---------
2,603,125 2,309,030 1,556,660
--------- --------- ---------
5,701,733 5,928,105 5,906,084
--------- --------- ---------
--------- --------- ---------
</TABLE>
<PAGE>
FIFTH DIMENSION COMMUNICATIONS (BARBADOS) INC.
1043133 ONTARIO INC. AND MERLIN SIERRA INC.
UNAUDITED COMBINED STATEMENTS OF INCOME AND RETAINED EARNINGS
FOR THE THREE MONTHS ENDED JUNE 30, 1997 AND 1996
AND THE YEARS ENDED MARCH 31, 1997 AND 1996
(UNITED STATES DOLLARS)
<TABLE>
<CAPTION>
Three months Three months Year Year
Ended June 30 Ended June 30 Ended March 3 Ended March 31
1997 1996 1997 1996
$ $ $ $
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
SALES 3,041,068 3,573,571 15,044,139 12,223,731
COST OF SALES 1,904,646 2,236,915 9,560,847 6,317,438
---------- ---------- ---------- ----------
GROSS PROFIT 1,136,422 1,336,656 5,483,292 5,906,293
EXPENSES 822,327 1,103,317 4,264,144 3,898,653
---------- ---------- ---------- ----------
NET INCOME FROM OPERATIONS 314,095 233,339 1,219,148 2,007,640
LOSS ON INVESTMENT IN SHARES - 220,000 220,000 --
---------- ---------- ---------- ----------
314,095 13,339 999,148 2,007,640
---------- ---------- ---------- ----------
PROVISION FOR (RECOVERY OF)
INCOME TAXES
Current 20,000 -- 30,350 (113,563)
Deferred - (574,980) 71,500 ( 71,500)
---------- ---------- ---------- ----------
20,000 (574,980) 101,850 (185,063)
---------- ---------- ---------- ----------
NET INCOME FOR THE PERIOD 294,095 588,319 897,298 2,192,703
RETAINED EARNINGS (DEFICIT)
BEGINNING OF PERIOD 2,308,758 1,556,388 1,556,388 (636,315)
---------- ---------- ---------- ----------
2,602,853 2,144,707 2,453,686 1,556,388
DIVIDENDS PAID - - 144,928 -
---------- ---------- ---------- ----------
RETAINED EARNINGS
END OF PERIOD 2,602,853 2,144,707 2,308,758 1,556,388
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
</TABLE>
<PAGE>
FIFTH DIMENSION COMMUNICATIONS (BARBADOS) INC.
1043133 ONTARIO INC. AND MERLIN SIERRA INC.
UNAUDITED COMBINED STATEMENTS OF CHANGES IN FINANCIAL POSITION
FOR THE THREE MONTHS ENDED JUNE 30, 1997 AND 1996
AND FOR THE YEARS ENDED MARCH 31, 1997 AND 1996
(UNITED STATES DOLLARS)
<TABLE>
<CAPTION>
Three months Three months Year Year
Ended June 30 Ended June 30 Ended March 31 Ended March 31
1997 1996 1997 1996
$ $ $ $
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
CASH PROVIDED FROM (USED IN)
OPERATING ACTIVITIES 294,095 588,319 897,298 2,192,703
Net Income for the period
Items not affecting cash -
Amortization of capital assets 30,744 48,077 120,347 144,398
Amortization of film
exhibition rights 200,302 271,325 931,637 776,758
Loss on Investment in shares - 220,000 220,000 -
Deferred Income taxes - (574,980) 71,500 (71,500)
Net change in operating
components of working capital 136,496 (253,254) (936,660) (821,184)
---------- ---------- ----------- ------------
661,637 299,487 1,304,122 2,221,175
---------- ---------- ----------- ------------
INVESTING ACTIVITIES
Investment in shares - - - (220,000)
Purchases or capital assets (88,567) (13,719) (74,682) (144,108)
Sales of capital assets - - 6,131 11,893
Transfers of capital assets
to related company - - - 567,373
(Advances to) repayments
from, Teletheatre Plus Inc. - - 718,432 (718,432)
Purchases of film exhibition rights (105,517) (271,325) (1,017,033) (904,121)
(Purchase) redemption of
restricted Investments (592,002) (9,944) 133,957 (22,135)
---------- ---------- ----------- ------------
(786,086) (294,988) (233,195) (1,429,530)
---------- ---------- ----------- ------------
FINANCING ACTIVITIES
Capital stock - - - 100
Dividends - - (144,928) -
Net change in accounts receivable
and payable, related companies 41,487 (206,964) (835,262) (398,661)
---------- ---------- ----------- ------------
41,487 (206,964) (980,190) (398,561)
---------- ---------- ----------- ------------
INCREASE(DECREASE) IN CASH EQUIVALENTS
FOR THE YEAR (82,962) (202,465) 90,737 393,084
CASH EQUIVALENTS -
BEGINNING OF YEAR 607,338 516,601 516,601 123,517
---------- ---------- ----------- ------------
CASH EQUIVALENTS - END OF YEAR 524,376 314,136 607,338 516,601
---------- ---------- ----------- ------------
---------- ---------- ----------- ------------
CASH EQUIVALENTS IS COMPRISED OF:
Cash 524,376 397,469 642,466 615,559
Bank loan - (83,333) (35,128) (98,953)
---------- ---------- ----------- ------------
524,376 314,136 607,338 516,601
---------- ---------- ----------- ------------
---------- ---------- ----------- ------------
</TABLE>
<PAGE>
FIFTH DIMENSION COMMUNICATIONS (BARBADOS) INC., 1043133
ONTARIO INC. AND MERLIN SIERRA INC.
NOTES TO THE UNAUDITED COMBINED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED JUNE 30, 1997 AND 1996
1. BASIS OF PRESENTATION
These financial statements present the combined assets, liabilities,
revenues and expenses of Fifth Dimension Communications (Barbados) Inc.,
Merlin Sierra Inc. and 1043133 Ontario Inc. for the three month periods
ended June 30, 1997 and 1996, together with he combined assets,
liabilities, revenues and expenses of Fifth Dimension Communications
(Barbados) Inc. and 1043133 Ontario Inc. for the years ended March 31, 1997
and 1996 and those of Merlin Sierra Inc., from February 1, 1996, the date
of acquisition to March 31, 1996 and the year ended March 31, 1997.
The three companies carry on complimentary but different businesses related
to the broadcasting of movies to subscribers by satellite and cable. Fifth
Dimension Communications (Barbados) Inc. is incorporated under the laws of
Barbados, 1043133 Ontario Inc. is incorporated under the laws of the
Province of Ontario in Canada and Merlin Sierra Inc. is incorporated under
the laws of the State of California in the United States. None of the three
companies own shares in the other companies.
These combined financial statements have been prepared by management in
accordance with generally accepted accounting principles in the United
States applied on a consistent basis and are presented in United States
dollars. They have been prepared in connection with a proposed sale of the
combined business of the three companies as expressed in a letter of intent
dated April 14, 1997.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the dates of financial
statements and the reported amounts of revenues and expenses during the
reporting periods. Actual results could differ from those estimates.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Inventory
Inventory is recorded at the lower of cost and net realizable value.
(b) Film exhibition rights
Rights to exhibit films are recorded at cost and are amortized on a
straight-line basis over the period of the contact, which is normally
twenty-four months.
<PAGE>
FIFTH DIMENSION COMMUNICATIONS (BARBADOS) INC., 1043133
ONTARIO INC. AND MERLIN SIERRA INC.
NOTES TO THE UNAUDITED COMBINED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED JUNE 30, 1997 AND 1996
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(c) Investment in shares
The investment in shares, originally recorded at cost, has been
accounted for by the equity basis.
(d) Capital Assets
Capital assets are initially recorded at cost and amortized over their
estimated useful lives. Furniture and fixtures are being amortized on
the diminishing balance basis at a rate of 20% per year. Automobiles
and computers are being amortized on the diminishing balance basis at
a rate of 30% per year. Leaseholds and the telephone system are
amortized on a straight line basis over the five year term of the
realty lease. Software is amortized at a 100% rate.
(e) Revenue recognition
Revenue from sales of television movie subscriptions from three to
twelve months is recognized on a monthly basis over the term of the
subscription.
(f) Foreign Exchange
Assets and liabilities denominated in currencies other than United
States dollars are translated at exchange rates in effect at the
balance sheet date. Revenue and expense items are translated at
average rates of exchange for the year. Translation gains and losses
are included in the determination of earnings.
3. RESTRICTED INVESTMENT
Restricted investments consist of short-term marketable securities and
deposits recorded at cost held as collateral by the financial
institutions providing merchant credit card service to 1043133 Ontario
Inc.
<PAGE>
FIFTH DIMENSION COMMUNICATIONS (BARBADOS) INC., 1043133
ONTARIO INC. AND MERLIN SIERRA INC.
NOTES TO THE UNAUDITED COMBINED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED JUNE 30, 1997 AND 1996
4. CAPITAL ASSETS
<TABLE>
<CAPTION>
1997 1996
Accumulated Accumulated
Cost Amortization Cost Amortization
$ $ $ $
<S> <C> <C> <C> <C>
Furniture and fixtures 110,058 43,299 103,994 30,229
Leaseholds 54,902 17,988 50,470 11,829
Telephone system 105,297 50,069 102,429 25,951
Automobiles 55,439 37,488 55,489 31,194
Computers 10,661 156,331 274,911 125,157
Software 98,561 23,507 14,768 11,799
------- ------- ------- -------
734,968 328,532 602,061 236,159
------- -------
------- -------
Accumulated
amortization 328,632 236,159
------- -------
406,236 365,902
------- -------
</TABLE>
5. BANK LOAN
The bank loan to Merlin Sierra Inc. bears interest at 16% with monthly
principal repayments of $12,148 to June, 1997. The loan was repaid as at
June 30, 1997. The loan is secured by a commercial security agreement on
all assets of Merlin Sierra Inc. and personal guarantees of certain
officers of Merlin Sierra Inc.
<PAGE>
FIFTH DIMENSION COMMUNICATIONS (BARBADOS) INC., 1043133
ONTARIO INC. AND MERLIN SIERRA INC.
NOTES TO THE UNAUDITED COMBINED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED JUNE 30, 1997 AND 1996
6. RELATED COMPANY INFORMATION
The companies are related by common control.
(a) Accounts Receivable and Accounts Payable
Accounts receivable include amounts due from related companies
totaling $1,023,096 (1996 $1,111,128). Accounts payable include
amount due to related companies totaling $527,420 (1996 $562,385).
The significant balances receivable from or (payroll to) related
companies are as follows:
1997 1996
$ $
Fifth Dimension Communications (1996)
Corporation (221,517) (370,859)
Fifth Dimension Communications
Holdings, Inc. 466,915 76,154
Fifth Dimension Capital Corporation 917,457 664,777
Fifth Dimension Communications Atlantic Inc. - 158,109
Fifth Dimension SatCom Inc. (92.973) (47,699)
Turks & Caicos Island Wireless
Television Ltd. (150,000) -
Fifth Dimension Technologies Inc. 63,386 (110,422)
FirstLink Communications Inc. - 128,323
(b) Transactions
Related party transactions are measured at exchange values which
correspond to the amount established and agreed upon by both
parties.
<PAGE>
FIFTH DIMENSION COMMUNICATIONS (BARBADOS) INC., 1043133
ONTARIO INC. AND MERLIN SIERRA INC.
NOTES TO THE UNAUDITED COMBINED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED JUNE 30, 1997 AND 1996
6. RELATED COMPANY INFORMATION (continued)
The significant transactions entered into by 1043133 Ontario Inc. with
related companies are as follows:
Rented offices from Fifth Dimension Capital Corporation for
$11,956 (1996 $11,956).
Rented satellite uplink from 841161 Ontario Limited for $15,704
(1996 $15,704) and space for broadcasting facilities for $10,129
(1996 $10,754). Prepaid expenses include prepaid rent to 841161
Ontario Limited of $107,737 (1996 Nil).
Purchased accounting and administrative services from Fifth
Dimension Capital Corporation for $45,965 (1996 $45,675).
Purchased engineering services from Fifth Dimension Satcom Inc.
for $70,931 (1996 $93,007).
Purchased full period satellite space segment from Fifth
Dimension Communications (1996) Corporation for $264,854 (1996
Nil) and occasional use satellite space segment for $13,772 (1996
Nil) and rented broadcasting equipment for $17,130 (1996
$31,957).
Purchased subscriber activation system from FirstLink
Communications Inc. for $10,310 (1996 $44,973).
Rented a hospitality suite from Fifth Dimension Technologies Inc.
for $18,832 (1996 $18,79$) and purchased computer equipment for
$19,580 (1996 $3,471).
<PAGE>
FIFTH DIMENSION COMMUNICATIONS (BARBADOS) INC., 1043133
ONTARIO INC. AND MERLIN SIERRA INC.
NOTES TO THE UNAUDITED COMBINED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED JUNE 30, 1997 AND 1996
6. RELATED COMPANY INFORMATION (continued)
The significant transactions entered into by Fifth Dimension
Communications (Barbados) Inc. with related companies are as follows:
Rented broadcasting equipment for $25,695 (1996 Nil) and
purchased occasional use satellite space segment for $20,657
(1996 Nil) from Fifth Dimension Communications (1996)
Corporation. Purchased full period satellite space segment from
Fifth Dimension Communications (1996) Corporation for $132,427
(1996 Nil).
Purchased engineering services from Fifth Dimension Satcom Inc.
for $93,321 (1996 Nil).
(c) Commitments
Commitments by 1043133 Ontario Inc. to related companies are as
follows:
The minimum amounts of future lease payments to 841161 Ontario
Limited for office accommodation are $40,000 for each of 1998 and
1999.
The minimum amounts of future lease payments to 841161 Ontario
Limited for a satellite uplink facility are $62,000 for 1998 and
$31,000 for 1999.
The minimum amounts of future lease payments to Fifth Dimension
Capital Corporation for office facilities are $48,000 for 1998
and 1999.
<PAGE>
FIFTH DIMENSION COMMUNICATIONS (BARBADOS) INC., 1043133
ONTARIO INC. AND MERLIN SIERRA INC.
NOTES TO THE UNAUDITED COMBINED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED JUNE 30, 1997 AND 1996
6. RELATED COMPANY INFORMATION (continued)
The minimum amount of future lease payments to Fifth Dimension
Communications (1996) Corporation are $128,070 for 1998.
A commitment to Fifth Dimension Satcom Inc. for the purchase of
engineering services in amounts which are based on usage.
7. THIRD PARTY COMMITMENT AND CONTINGENT LIABILITIES
Commitments of Fifth Dimension Communications (Barbados) Inc.
The Company will be committed as of July 1, 1997 for purchases of full
period space segment on three additional satellite transponders
totaling $22.5 million during the estimated five year life of the
contracts.
The Company has committed as of March 31, 1997 to purchase full period
space segment totaling $5.4 million to December 31, 1999.
Fifth Dimension Communications (Barbados) Inc. and 1043133 Ontario Inc.
have given a guarantee to the vendor in regard to the unpaid purchase price
for the acquisition of the business of Merlin Sierra for a total amount of
$850,000. The balance owing as at June 30, 1997 was $591,628 (1996 Nil)
1043133 Ontario Inc. has a commitment to purchased promotional video
services of $217,000 in each of 1998 and 1999.
<PAGE>
FIFTH DIMENSION COMMUNICATIONS (BARBADOS) INC., 1043133
ONTARIO INC. AND MERLIN SIERRA INC.
NOTES TO THE UNAUDITED COMBINED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED JUNE 30, 1997 AND 1996
8. CAPITAL STOCK
AUTHORIZED
Fifth Dimension Communications (Barbados) Inc. is authorized to issue
an unlimited number of common shares and redeemable non-voting
preference shares. Non-cumulative dividends on both classes of shares
may be declared at the discretion of the directors.
1043133 Ontario Inc. is authorized to issue an unlimited number of
common shares.
Merlin Sierra Inc. is authorized to issue 50 common shares.
ISSUED
1997 1996
$ $
Fifth Dimension Communications (Barbados) Inc.
100 Common shares 100 100
1043133 Ontario Inc.
100 Common shares 72 72
Merlin Sierra Inc.
100 Common shares 100 100
----- -----
272 272
----- -----
----- -----
9. FAIR MARKET VALUE
The carrying amounts of the current assets and liabilities, restricted
investments and investment in shares approximate fair market values.
10. INCOME TAXES
The Companies have accumulated timing differences relating to a write
down of accounts receivable which, if recognized, would have resulted
in a deferred income tax debit of $365,000 (1996 $351,000). A
valuation allowance for deferred tax assets was booked for $365,000
(1996 $351,000).
<PAGE>
SCHEDULE 7.2(c)
LETTER OF UNDERSTANDING OF 14 APRIL 1997
[attached]
<PAGE>
April 14, 1997
To: 1043133 Ontario Inc.
Fifth Dimension (Barbados) Inc.
Merlin Sierra, Inc.
Fifth Dimension Communications (1996) Corporation
c/o Douglas Duncan
2500 Don Reid Drive
Ottawa, Ontario
K1H 8P5
Dear Mr. Duncan:
This letter sets forth certain terms upon which New Frontier Media, Inc., a
Colorado Corporation, ("New Frontier") is interested in acquiring certain assets
and services from the above-noted companies. Such assets shall be acquired by a
wholly-owned subsidiary company to be formed by New Frontier for such purpose,
which company will be a Nevada corporation tentatively named "Nevada Satellite
Broadcasting, Inc." (the "Purchaser"). The Purchaser shall not acquire any stock
or shares of any of the above-noted companies.
DEFINITIONS
In this letter:
"5DB" means Fifth Dimension (Barbados) Inc., a Barbados corporation;
"Adult Companies" means 5DB, Merlin and XTC;
"Adult Movies Business" means all any present or contemplated satellite
broadcast services on television or any other medium, including cable and
the Internet, which broadcasts, replays, and/or otherwise exploits feature
length adult programming and all related promotional content and other
programming of a non-rated or X-rated nature and whose main theme embodies
nudity and sexually explicit material between consenting adults and such
other related business assets as are necessary for the operation thereof as
are as set forth in the Valuation. This shall include the services and
advertising and promotional materials for broadcast services currently
operating under the trade names "Exxxtasy", "True Blue", and "Venus" and
any other similar contemplated services;
"Closing" means the closing of the Transaction and "Closing Date" means the
date on which the Closing takes place;
<PAGE>
PAGE 2 OF 9
"Communications" means Fifth Dimension Communication (1996) Corporation, a
Canadian company;
"Merlin" means Merlin Sierra, Inc., a California corporation;
"Ottawa Call Center" means the subscription and pay-per-view call center
at Ottawa now operated by the Adult Companies;
"Subject Assets" means:
(a) any and all trademarks, proprietary rights and other intellectual
property rights owned by the Adult Companies or any of them and
associated with the Adult Movies Business Assets. These include,
but are not necessarily limited, to trade names, trademarks
and/or service marks. Without limiting the generality of the
foregoing, it is understood that the trade names and marks
"Venus" and "Venus TV" are not owned by the Adult Companies and
will not be available for use at the Closing;
(b) (subject to the provisions related thereto below in this letter)
equipment and necessary technology (the "Uplink Equipment") for
the operation of a satellite operation uplink facility (the
"UpLink Facility") at a suitable location in Nevada to be chosen
by New Frontier. The Uplink Equipment shall be in operating order
and shall be substantially similar in condition and function to
the equipment and technology (the "Ottawa Uplink Equipment")
currently being used by the Adult Companies at its uplink
facility in Ottawa, Ontario (the "Ottawa Uplink Facility");
(c) all hardware and equipment now used at the Ottawa Call Center
(which shall be delivered to the Purchaser forthwith after the
Purchaser ceases to make use of the Ottawa Call Center) a fully
paid, royalty free license to use one copy of the "First Link"
subscription management software now used at the Ottawa Call
Center, and an assignment of licenses for any third party
software used in connection with the Ottawa Call Center;
(d) any and all rights the Adult Companies may have in adult
programming in any format (including master tapes) including
feature length films and other films that contain motion picture
material that is non-rated or X-rated and whose main theme
embodies sexually explicit material between consenting adults,
and all promotional materials and programming related thereto.
No representation or warranty is made with respect to the
transferability or assignability of such programming to New
Frontier;
(e) all programming developed by or on behalf of the Adult Companies
to market and advertise the Adult Movie Business. No
representation or warranty is made with respect to the
transferability or assignability of such
<PAGE>
PAGE 3 OF 9
programming to New Frontier;
(f) all subscriptions for Adult Movie services at Closing, all
subscriber lists, past and present, and any other marketing data
related thereto, which is in the possession of the Adult
Companies;
(g) a complete list of all advertisers, marketing partners and
vendors used by the Adult Companies in relation to the Adult
Movies Business and related services, with contact names, mailing
addresses, and phone and fax numbers; and
(h) all rights the Adult Companies have in 1-800 phone numbers used
in the Adult Business and in any World Wide Web addresses and
websites used in the Adult Business;
"Transaction" means the transaction(s) contemplated in this letter;
"Uplink Moving/Installation Costs" means the sum of all costs of equipment
to be included in the Uplink Equipment, all labor costs and related
expenses necessary for the installation of the Uplink Equipment (including
incurred travel, long-distance, accommodation, and meal costs), and all
customs, duties, taxes, and tariffs relating to the importation of
equipment and technology in the United States;
"Valuation" means the VALUATION OF ADULT COMPANIES AS OF MARCH 31, 1997
previously provided by the Adult Companies to New Frontier; and
"XTC" means 1043133 Ontario Inc., an Ontario corporation.
PROPOSED ACQUISITION
GENERAL. The Purchaser proposes to acquire the Subject Assets from the Adult
Companies. In addition, the Purchaser shall acquire subleases for certain
satellite transponders (as described below) and certain services to be provided
by the Adult Companies (as described below). The Purchaser shall honor all
unfulfilled customer subscriptions in existence at Closing (without credit from
the Adult Companies for unearned, prepaid subscription revenue), provided that
no subscriptions shall extend for a period of more than 12 months after Closing.
CLOSING. The Closing shall be 30 June 1997 or sixty (60) days after the
execution of a definitive asset purchase agreement and any ancillary agreements,
whichever last occurs. The parties will cooperate in establishing a schedule of
important dates and deadlines related to the completion of the Transaction.
UPLINK. As part of the acquisition and the purchase price to be paid therefor,
the Adult Companies shall provide and install (in operating order) the Uplink
Equipment at the Uplink Facility. It is anticipated that the location of the
Uplink Facility will be near Las Vegas, Nevada.
<PAGE>
PAGE 4 OF 9
The Adult Companies shall be responsible for all Uplink Moving/Installation
Costs. All costs associated with the acquisition, preparation and necessary
approvals and licenses for the Uplink Facility (excluding the Uplink Equipment
and Uplink Moving/Installation Costs) shall be borne by the Purchaser. A
complete list of the Uplink Equipment shall be included as a schedule to the
definitive asset purchase agreement. To the extent that the Purchaser wants
equipment and technology at the Uplink Facility that is not similar to the
Ottawa Uplink Equipment, the Purchaser shall be responsible for all costs
related to the acquisition and installation thereof.
Communications and the Purchaser shall enter into an "Uplink Services
Agreement" pursuant to which Communications will provide the services to
supervise the installation of the Uplink Equipment at the Uplink Facility and to
assist in acquiring the licenses and approvals necessary for operation of the
Uplink Facility. In addition, an employee of Communications will be made
available, at the Purchaser's expense (but with mark-up by Communications), on a
full-time basis to manage the Uplink Facility during its first month of
operations and for a one-week period during each of the following six months.
All travel, living and other incidental costs associated with such services
shall be paid for by the Purchaser. The Uplink Services Agreement shall be
terminable at the option of the Purchaser at any time and shall include a
provision that requires the Purchaser to pay $100,000 to Communications if the
Purchaser or a related entity hires any employee or ex-employee of
Communications on or before the 2nd anniversary date of the Closing Date.
CALL CENTER. The Adult Companies agree to receive and process subscriber calls
from the Ottawa Call Center for a period of up to nine (9) months from the
Closing, at a flat, prepaid monthly rental of US$275,000 and on other terms to
be negotiated in a "Call Center Agreement". The Purchaser shall give the Adult
Companies sixty (60) days prior written notice of its intention to terminate its
use of the Ottawa Call Center prior to the end of the said nine (9) month
period.
TRANSPONDERS. Communications and Barbados agree, as set forth below, to provide
the Purchaser with sublease rights (pursuant to "Transponder Sublease
Agreements") for four (4) satellite transponders to be used for the Adult Movie
Business after Closing. Three (3) of the transponders will be suitable for adult
movie channels and one (1) will be suitable for advertising or "barker"
programming. The amounts to be paid by the Purchaser for such rights shall not
exceed the actual costs paid or required to be paid by the sublessor therefor,
with the exception that the Purchaser shall bear any additional costs or
expenses associated with upgrading the rights and interests in the particular
transponders (for example, to a "Silver Service"). Provided that they are
operational, the transponders to be provided shall include two (2) T5
transponders (supplied by Barbados), one (1) additional T5 transponder (if
rights thereto can be acquired for such purpose by Barbados) or one suitable
replacement therefor (if such T5 transponder cannot be so acquired), and one (1)
T4 transponder (supplied by Barbados). Until the successful launch of the T5
satellite or a replacement therefor, the Purchaser shall be entitled to sublease
the transponders now used in relation to the Adult Movie Business.
The Transponder Sublease Agreements shall be on the same terms and conditions as
the sublessor thereof has leased the applicable transponders, except that
payments shall be due five (5) working days before the date on which the
sublessor is required to pay the same. The Purchaser shall be entitled to the
same renewal rights in respect thereof as the sublessor may
<PAGE>
PAGE 5 OF 9
have. New Frontier will guarantee all obligations of the Purchaser under the
Transponder Sublease Agreements. The Transponder Sublease Agreements shall
require the Purchaser to provide to the sublessor a security deposit equal to
(and on the same terms as) the security deposit paid by the sublessor to the
lessor of the applicable transponder or (if the sublessor has not then made a
security deposit) in an amount equal to the monthly lease rate for the
transponder under the applicable sublease.
To the extent that Communications may obtain rights in any transponders on
Nahuel, AsiaSat and Intelsat satellites and desire to sublease all or a portion
thereof for use in adult movie programming, Communications shall give the
Purchaser a right of first refusal to obtain such sublease on terms typically
offered by Communications to its customers, which right must be exercised by the
Purchaser within seven (7) days after notice of such opportunity is given to the
Purchaser by Communications.
KEY PAYMENT TERMS
In consideration for the Transaction, the Adult Companies shall receive the
following:
(a) US$3,500,000 on Closing, including a US$100,000 deposit which shall be
paid to the Adult Companies upon execution of the definitive asset
purchase agreement (which deposit shall be held in escrow by a
mutually agreed upon third party lawyer in Ottawa, Ontario and shall
be non-refundable if the Transaction does not close, unless the
failure to close is solely attributable to breach of the definitive
asset purchase agreement by the Adult Companies);
(b) the greater of (i) shares in the stock of New Frontier having a value
of US$3,400,000 (calculated on the basis of the weighted-average
trading price of the stock on the last day stock was traded by
arms-length third parties (excluding New Frontier and its directors,
officers, and employees, and their relatives) prior to the Closing
Date) and (ii) 840,000 such shares. It is understood that these
shares of stock and the warrants (describe in paragraph (c) below) and
issuable shares therefrom have not been or will not have be registered
under the SECURITIES ACT OF 1933 or applicable state securities laws
and shall not be sold, pledged hypothecated, donated or otherwise
transferred (whether or not for consideration) by the holder except on
the issuance to New Frontier of a favorable opinion of counsel, in
each such case, to the effect that any such transfer shall not be in
violation of the Securities Act of 1933 or the applicable state
securities laws;
(c) warrants to purchase sufficient shares in the stock of New Frontier so
that if all warrants were exercised the total stock owned by the Adult
Companies would represent 20% of the issued stock of New Frontier.
Such warrants shall be exercisable at the weighted-average trading
price of the stock on the last day stock was traded by arms-length
third parties (excluding New Frontier and its directors, officers, and
employees, and their relatives) prior to the Closing Date, which
warrants shall not be assignable without the prior consent of New
Frontier;
<PAGE>
PAGE 6 OF 9
(d) a promissory note from the Purchaser, guaranteed by New Frontier, for
a face value of US$1,000,000, and secured by a second charge against
the assets of the Purchaser and guaranteed by New Frontier. The term
of the note shall be three (3) years, at the end of which the full
principal amount of the Promissory Note shall be payable. Interest
shall be paid at the end of the first year and thereafter shall be
payable on a monthly basis until the Promissory Note is paid in full.
Interest shall be calculated at the rate of prime plus one percent
(1%), based on the prime rate of Bank One, but in no event shall be
greater than nine percent (9%) per annum or less than six percent (6%)
per annum; and
(e) The Adult Companies shall be entitled to the any and all Formula
Profits of the Purchaser exceeding US$ 2 million in the first 12
months of the Purchaser's operations after the Closing. "Formula
Profits" shall equal the total revenue derived from operations less
the actual operating costs, provided the actual operating costs
related to the Adult Movie Business do not exceed 125% of the
projected costs set forth in the Valuation. The Formula Profits shall
be payable by not later than 90 days after the end of such 12 month
period.
OTHER PROVISIONS
DIRECTORS. The Adult Companies shall be entitled to appoint at least one member
of the Board of Directors for New Frontier. In addition to the appointed board
member, the Adult Companies shall be entitled to have one additional non-voting
representative receive notice of and attend and participate at New Frontier
board meetings; such representative shall enjoy all the rights and privileges of
board members except for the right to vote and shall have all of his reasonable
travel and lodging costs (related to attendance at board meetings) paid for by
New Frontier.
NON-COMPETITION. The Adult Companies, their directors, officers and
shareholders (including Douglas Duncan, Stuart Duncan and Daniel Bender) agree
to enter into "Non-Competition Agreements" in which they agree not to directly
or indirectly engage or participate in any business that directly or indirectly
will compete or otherwise participate in the distribution, production or
broadcasting of Adult Programming in any geographic being served by the
Purchaser. Adult programming shall be defined as the motion picture material in
any format that is of a non-rated or X-rated nature and whose main theme
embodies sexually explicit material between consenting adults.
FINANCIAL STATEMENTS. The Adult Companies will provide audited financial
statements for the 12 month period ending 30 June 1997 (including a balance
sheet at such date and statements of earnings for the years ended on 30 June
1996 and 1997 as required for SEC filings). The definitive asset purchase
agreement shall contain a price adjustment clause to deal with increases or
deceases in the consideration payable in respect of the Transaction if the
audited pre-tax profits for the period ending 30 June 1997 are more or less than
US$2,000,000 after the following adjustments thereto are made:
<PAGE>
PAGE 7 OF 9
(a) add-back of salaries and benefits paid to Douglas Duncan and his
assistant Nina Frid, Stuart Duncan and Dan Bender, which in the
aggregate are in excess of $200,000;
(b) add-back of salaries and benefits, and termination costs, related to
Judith Christou, Richard Latham, and Nina Frid, and termination costs
related to other employees;
(c) an adjustment so that the average monthly cost of movies is reduced to
US$75,000;
(d) add-back of amounts paid to VTV and expenses in the accounts of an
Adult Company;
(e) add-back of amounts paid to lawyer in connection with this and
previous acquisitions and proposed acquisitions of or by the Adult
Companies or any of them (including the acquisition of Merlin Sierra);
(f) add-back of the amount (if any) by which the transponder costs
incurred in January 1997 exceeded the average monthly transponder
costs over the preceding 3 months;
(g) add-back of promotional and entertainment costs related to the
corporate suite at the Corel Centre in Ottawa;
(h) add-back of payments made to Jeff Gold, Galaxy Communications
International Inc and Surmount Inc. which payments have been expensed
in the accounts of 5DB;
(i) add-back of all costs related to The Valley Center office, including
rent paid to Dan Bender and salaries and termination allowances paid
to staff of such office;
(j) add-back of automobile lease payments made on behalf of Douglas Duncan
and Stuart Duncan;
(k) add-back of payments made to RocketSoft Inc, for services provided by
Denis Dagernais;
(l) add-back of interest paid on Best Bank loan (regarding Merlin Sierra);
(m) add-back of payments made to On-line Enterprises and Jack Michaelson;
and
(n) add-back of AT&T telephone penalty for not meeting contractual
commitment.
New Frontier will guarantee all payments to be made by the Purchaser under the
terms of the definitive asset purchase agreement and other ancillary agreements
and such guarantee shall be
<PAGE>
PAGE 8 OF 9
secured by a charge against New Frontier's assets that ranks subordinate only to
a charge, if any, in favor of New Frontier's principal bankers.
ANCILLARY AGREEMENTS
The parties acknowledge and agree that the anticipated acquisition will require
several ancillary agreements, including without limitation the Call Center
Agreement, the Transponder Sublease Agreements, the Uplink Service Agreement,
and Non-Competition Agreements (referred to above).
In addition, the Purchaser will enter into a one year employment contract with
Daniel Bender. The total compensation (salary, benefits and other compensation)
to be paid under that employment contract shall be US$100,000.00. Mr. Bender
will not be required to relocate to provide services under such contract.
In addition, the Purchaser will enter into an "Audio/Visual Production
Agreement" with Diorio Productions Inc., in which the Purchaser agrees to
purchase Cdn$30,000 per month worth of interstitial programming for its adult
channels for the period of nine (9) months following the Closing.
GENERAL
This letter is intended to outline and clarify what we believe to be our mutual
understandings concerning the general terms and conditions of this proposed
transaction. Additional issues will need to be discussed and negotiated. The
willingness and ability of the parties to complete the proposed transaction
depend upon:
(a) the ability of New Frontier to successfully finance the proposed
acquisition;
(b) the successful completion of a pre-closing due diligence review by all
parties (and, in that regard, the parties agree to execute
confidentially agreements prohibiting the use of any confidential
information obtained during the due diligence investigation or
otherwise from being used in any manner except for the limited purpose
of due diligence investigation and evaluating the Transaction). The
definitive asset purchase agreement will require the parties to
represent and warrant that all information and materials provided
during the due diligence process is true and accurate; and
(c) the entering into of a definitive asset purchase agreement and other
ancillary agreements to be negotiated between the applicable parties.
<PAGE>
PAGE 9 OF 9
Assuming you find the contents of this letter to be acceptable, please sign
and acknowledge the same below on or before 15 April 1997.
This letter and the acknowledgement and acceptance below may be signed in
one or more counterparts.
Sincerely,
New Frontier Media, Inc.
/s/ Mark H. Kreloff
--------------------------
Mark H. Kreloff
President
Acknowledged and accepted this 14th day of April, 1997 on behalf of 1043133
Ontario Inc., Fifth Dimension (Barbados) Inc., Merlin Sierra, Inc., and Fifth
Dimension Communications (1996) Corporation.
/s/ Douglas Duncan
--------------------------
Douglas Duncan
/s/ Stuart Duncan
--------------------------
Stuart Duncan
--------------------------
Daniel Bender
<PAGE>
SCHEDULE 7.3(f)
ENCUMBRANCES
None.
<PAGE>
SCHEDULE 7.3(g)
MATERIAL LOSSES OF ORDERS OR CUSTOMERS
None.
<PAGE>
SCHEDULE 7.3(h)
MATERIAL ADVERSE EVENTS AND CONDITIONS
In July 1997, Lorel Skynet (the lessor of certain satellite transponders used in
connection with the Seller's Adult Movies Business) threatened to cancel the
applicable leases for such transponders because of non-payment by Fifth
Dimension Communications (Barbados) Inc. of amounts owning from it to Lorel
Skynet with respect to a satellite transponder not used in connection with
Sellers' Adult Movies Business. The matter has been resolved.
<PAGE>
SCHEDULE 7.5
TRADEMARKS
EXXXTASY ADULT TELEVISION (U.S. Trademark Registration No. 1931208)
XTC-COM (U.S. Trademark Application No. 255506/75)
EXXXTASY (U.S. Trademark Registration No. 1916844)
TRUE BLUE (U.S. Trademark Application No. 255508/75)
<PAGE>
SCHEDULE 7.8
DEALERS/DISTRIBUTORS LIST
[attached]
<PAGE>
1043133 ONTARIO INC.
SUMMARY OF REVENUE - CABLE
<TABLE>
<CAPTION>
Name May-96 Jun-96 Jul-96 Aug-96 Sep-96 Oct-96
- ------- ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
American Telecast Inc.
Antiles Wireless
Aventura Cable 250 199 221 145 167 179
Entertainment Connections 48 48 48 83 83 83
Interact Private Cable
Omega Communications 53 33 55 49 55 57
Private Cable 95
T.V. Cable LTDA 801
Pulsar Video 107 215 113 119 129 131
-------------------------------------------------------------------
-------------------------------------------------------------------
458 494 436 395 433 1,344
<CAPTION>
Name Nov-96 Dec-96 Jan-97 Feb-97 Mar-97 Apr-97 Total
- -------- ------ ------ ------ ------ ------ ------ -----
<S> <C> <C> <C> <C> <C> <C> <C>
American Telecast Inc. 95 30 38 41 204
Antiles Wireless 1,412 541 597 474 3,024
Aventura Cable - - 260 360 221 245 2,246
Entertainment Connections 83 83 83 83 83 83 885
Interact Private Cable 200 347 294 518 737 2,094
Omega Communications 53 60 105 43 53 51 665
Private Cable 95 95 95 95 95 95 665
T.V. Cable LTDA 1,027 1,119 1,246 793 5,270 5,929 16,185
Pulsar Video 133 137 140 138 146 138 1,646
-------------------------------------------------------------------
-------------------------------------------------------------------
1,390 1,693 3,783 2,376 7,020 7,792 27,615
</TABLE>
<PAGE>
1043133 ONTARIO INC.
SUMMARY OF REVENUE - HOTELS US
<TABLE>
<CAPTION>
Name May-96 Jun-96 Jul-96 Aug-96 Sep-96 Oct-96 Nov-96
- ---- ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
California Business Systems
- ---------------------------
Landmark Inn, Ontario, CA. 150 150 150
Comfort Inn Fontana 75 75 75
Carrier Motor Lodge 75 75 75 75 75 75 75
Regency Hotel, Dallas 48 48 48 48 48 48 48
Executive Motor Inn
Fifth Avenue Motel 25 25 25 25 25 25 25
Relax Inn Forest Hill 60 30 30 30 30 30 30
R.A. Satellite Systems
- ----------------------
Diamond Inn Motel
Mustang Inn
Sony Motel
Gallery Holiday Motel 105 105 105 105 105 105 105
Loop Inn Motel 152 152 152 152 152 152 152
Oassis Motel 105 105 105 105 105 105 105
Redhill Motel 44 44 44
Galavu Entertainment
- --------------------
San Clemente 275 275 275 275 275
Atlanta 613 613 613 613 613 613 613
Bloomington 315 315
Norcross 308 308 308 308
Raphine 215 215 215 215
Tucker 283 283 283 283
Aloha Hotel 102 51 51 51 51 51 51
Amit Hotel 600
Dixie Motel 720
Gateway Motel
Linden Motor Inn 720
Tropic Garden Motel 106 106 106 106 106 106 106
Uptown Motel
-----------------------------------------------------------------
1,284 2,029 1,584 2,389 3,978 2,973 2,973
-----------------------------------------------------------------
-----------------------------------------------------------------
<CAPTION>
Name Dec-96 Jan-97 Feb-97 Mar-97 Apr-97 Total
- --------- ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
California Business Systems
- ---------------------------
Landmark Inn, Ontario, CA. 150 150 150 150 150 1,200
Comfort Inn Fontana 75 75 75 75 75 600
Carrier Motor Lodge 75 75 75 75 75 900
Regency Hotel, Dallas 48 48 48 48 48 576
Executive Motor Inn 165 - - 165
Fifth Avenue Motel 25 25 25 25 25 297
Relax Inn Forest Hill 30 30 30 30 30 390
R.A. Satellite Systems
- ----------------------
Diamond Inn Motel 30 75 75 75 75 330
Mustang Inn 75 75 75 75 75 375
Sony Motel 75 75 75 75 75 375
Gallery Holiday Motel 70 105 70 70 70 1,120
Loop Inn Motel 152 152 152 152 152 1,824
Oassis Motel 105 105 105 105 105 1,260
Redhill Motel 20 44 44 44 44 328
Galavu Entertainment
- --------------------
San Clemente 201 275 275 275 275 2,676
Atlanta 287 613 613 613 613 7,024
Bloomington 305 315 315 315 315 2,195
Norcross 21 308 308 308 308 2,481
Raphine 157 215 215 215 215 1,877
Tucker 28 283 283 283 283 2,288
Aloha Hotel 36 51 51 51 306 903
Amit Hotel 600
Dixie Motel 720
Gateway Motel 576 576
Linden Motor Inn 720
Tropic Garden Motel 46 106 106 424 - 1,318
Uptown Motel 193 193
--------------------------------------------------------
2,011 3,774 3,328 3,481 3,505 33,312
--------------------------------------------------------
--------------------------------------------------------
</TABLE>
<PAGE>
1043133 ONTARIO INC.
SUMMARY OF REVENUE - HOTELS CDN
<TABLE>
<CAPTION>
NAME MAY-96 JUN-96 JUL-96 AUG-96 SEP-96 OCT-96 NOV-96
- ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
Sky Cable
- ----------
Fredericton 124 124 124 124 124 124
Halifax 193 193 193 193 193 193 193
Bathhurst 113 113 113 113 113 65
Brampton 116 116 116
Darthmouth 130 87 87
Newmarket 109 109 109
Pickering 116 116 116
Totronto Airport 682 682 682
Galavu Entertainment
- --------------------
Belleville 340 340 340 340 340 340 340
Brampton 173 173 173 289
Cambridge
Darthmouth 217 217 217 217
Fredericton 161 161 161 161 161 161 161
Guelph 214 214 214 214 214 214 214
Hamilton
Huntville 195
Kanata 278
Kingston1
Kingston2
London (Hotel) 329
London (Inn)
London (Suites) 313 313 313 313 313 313 313
Newmarket 273 273 273 273
North Bay
Oshawa 214 214
Ottawa (Suites) 567 567 567 567 567 567 567
Ottawa (Inn)
Pickering 289 289 289 289
St-Catherines 268 268
Sudbury1 214 214 214 214 214 214 214
Sudbury2 217 217 217 217 217 217 217
The Sault 219 219 219 219 219 219 219
Thunderbay 214 214 214 214 214 214 214
Toronto Airport 682 682 682 682
Waterloo1 417 417 417 417 417 417 417
Waterloo2
Whitby 278 278
Windsor1 342 342 342 342 342 342 342
------------------------------------------------------------------
------------------------------------------------------------------
Totals 4,801 4,757 4,757 5,282 5,282 5,993 6,722
<CAPTION>
NAME DEC-96 JAN-97 FEB-97 MAR-97 APR-97 TOTAL
- ------- ------ ------ ------ ------ ------ -----
<S> <C> <C> <C> <C> <C> <C>
Sky Cable
- -----------
Fredericton 745
Halifax 96 193 193 193 96 2,119
Bathhurst 632
Brampton 347
Darthmouth 303
Newmarket 327
Pickering 347
Totronto Airport 2,046
Galavu Entertainment
- ---------------------
Belleville 170 340 340 340 340 3,907
Brampton 289 289 289 289 289 2,253
Cambridge 228 228 228 683
Darthmouth 217 217 217 217 217 1,950
Fredericton 80 161 161 161 161 1,846
Guelph 107 214 214 214 214 2,461
Hamilton 161 161 161 161 161 803
Huntville 170 195 195 195 195 1,146
Kanata 241 278 278 278 278 1,632
Kingston1 276 276 551
Kingston2 158 158 316
London (Hotel) 76 329 329 329 329 1,721
London (Inn) 57 214 214 214 214 913
London (Suites) 156 313 313 313 313 3,599
Newmarket 273 273 273 273 273 2,456
North Bay 112 112
Oshawa 57 214 214 214 214 1,341
Ottawa (Suites) 284 567 567 567 567 6,522
Ottawa (Inn) 135 185 185 185 185 873
Pickering 289 289 289 289 289 2,600
St-Catherines 72 268 268 268 268 1,677
Sudbury1 107 214 214 214 214 2,461
Sudbury2 108 217 217 217 217 2,492
The Sault 110 219 219 219 219 2,523
Thunderbay 107 214 214 214 214 2,461
Toronto Airport 682 682 682 682 682 6,139
Waterloo1 209 417 417 417 417 4,799
Waterloo2 227 227 227 682
Whitby 130 278 278 278 278 1,799
Windsor1 171 342 342 342 342 3,938
------------------------------------------------------------------
------------------------------------------------------------------
Totals 4,554 7,281 7,736 8,170 8,186 73,522
</TABLE>
<PAGE>
Date: 9/10/97 9:07:40 AM 1043133 Ontario Inc. Page: 1
CUSTOMER ADDRESS LIST USER ID: DANIELLE
Receivables Management
Ranges:
Customer ID: First-Last
Sales Territory: First-Last Postal Codes: First-Last
Customer Class: First-Last Province: First-Last
User-Defined 1: First-Last Telephone: First-Last
Salesperson ID: First-Last Contact Person: First-Last
Customer Name: First-Last
Sorted: by Class ID
<TABLE>
<CAPTION>
Customer ID Name Class ID Contact Person
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ANT1002 ANTILLES WIRELESS CABLE PPV (US) DEBBIE
Address: PO BOX 2299 Telephone 1: (308) 635-1131 Ext. 0000
Telephone 2: (000) 000-0000 Ext. 0000
City: SCOTTSBLUFF Fax Number: (000) 000-0000 Ext. 0000
Province: NE Postal Code:69363-2299
Country: USA
ATILV001 A.T.I. SUPER. OF LAS VAGAS CABLE PPV (US) KIRK JOHNSON
Address: 5575 TECH CENTER DR. Telephone 1: (702) 566-9414 Ext 0000
SUITE 300 Telephone 2: (000) 000-0000 Ext. 0000
City: COLORADO SPRINGS Fax Number: (000) 000-0000 Ext. 0000
Province: CO Postal Code:80919
Country: USA
CASU019 CABLE USA CABLE PPV (US) DEB WILLIAMSOM
Address: PO BOX 2299 Telephone 1: (308) 635-1131 Ext. 0000
Telephone 2: (000) 000-0000 Ext. 0000
City: SCOTTSBLUFF Fax Number: (308) 635-2721 Ext. 0000
Province: NE Postal Code:69363-2299
Country: USA
COMC003 COMCAST CABLEVISION OF HALLAND CABLE PPV (US) JOE PINO
Address: 20191 N.E. 16TH COURT Telephone 1: (305) 770-3600 Ext. 0000
Telephone 2: (000) 000-0000 Ext. 0000
City: NORTH MIAMI Fax Number: (000) 000-0000 Ext. 0000
Province: FL Postal Code:33179
Country: USA
COMC003 COMCAST CABLEVISION OF HALLAND CABLE PPV (US) CRAIG SNEDEKER
Address: 900 SOUTH DIXIE HWY. Telephone 1: (305) 770-3600 Ext. 0000
Telephone 2: (000) 000-0000 Ext. 0000
City: HALLANDALE Fax Number: (000) 000-0000 Ext. 0000
Province: FL Postal Code:33009
Country: USA
ECIV004 ENTERTAINMENT CONNECTION INC. CABLE PPV (US) DAVID LANSING
Address: 2875 NORTHWIND DR. Telephone 1: (517) 333-8899 Ext. 0000
SUITE 225 Telephone 2: (000) 000-0000 Ext. 0000
City: EAST LANSING Fax Number: (000) 000-0000 Ext. 0000
Province: MI Postal Code:48823
Country: USA
IPC8P005 IPC. BEST WESTERN BEACH PLAZA CABLE PPV (US) ED BURKHOFF
Address: BEST WESTERN BEACH PLAZA Telephone 1: (954) 452-5307 Ext. 0000
2400 E. COMMERCIAL BLVD. Telephone 2: (000) 000-0000 Ext. 0000
City: FORT LAUDERDALE Fax Number: (000) 000-0000 Ext. 0000
Province: FL Postal Code:33308
Country: USA
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PCCH007 IPC COMFORT & HAMPTON INNS CABLE PPV (US) ED BURKHOFF
Address: COMFORT & HAMPTON INNS Telephone 1: (954) 452-5307 Ext. 0000
2400 E. COMMERCIAL BLVD. Telephone 2: (000) 000-0000 Ext. 0000
City: FORT LAUDERDALE Fax Number: (000) 000-0000 Ext. 0000
Province: FL Postal Code:33308
Country: USA
PCCH011 IPC HOWARD J. CROSSWAY HOTEL CABLE PPV (US) ED BURKHOFF
Address: HOWARD J. CROSSWAY HOTEL Telephone 1: (954) 452-5307 Ext. 0000
2400 E. COMMERCIAL BLVD. Telephone 2: (000) 000-0000 Ext. 0000
City: FORT LAUDERDALE Fax Number: (000) 000-0000 Ext. 0000
Province: FL Postal Code:33308
Country: USA
PCDI017 I.P.C. DAY INN WEST PALM BEACH CABLE PPV (US) ED BURKHOFF
Address: INTERACT PRIVATE CABLE Telephone 1: (954) 452-5307 Ext. 0000
2400 EAST COMMERCIAL BLVD. Telephone 2: (000) 000-0000 Ext. 0000
City: FORT LAUDERDALE Fax Number: (000) 000-0000 Ext. 0000
Province: FL Postal Code:33308
Country: USA
PCDZ008 IPC DEZERLAND CABLE PPV (US) ED BURKHOFF
Address: DEZERLAND Telephone 1: (954) 452-5307 Ext. 0000
2400 E. COMMERCIAL BLVD. Telephone 2: (000) 000-0000 Ext. 0000
City: FORT LAUDERDALE Fax Number: (000) 000-0000 Ext. 0000
Province: FL Postal Code:33308
Country: USA
PCFL016 I.P.C. FORT LAUDERDALE CABLE PPV (US) ED BURKHOFF
Address: INTERACT PRIVATE CABLE Telephone 1: (954) 452-5307 Ext. 0000
2400 EAST COMMERCIAL BLVD. Telephone 2: (000) 000-0000 Ext. 0000
City: FORT LAUDERDALE Fax Number: (000) 000-0000 Ext. 0000
Province: FL Postal Code:33308
Country: USA
IPCGG010 IPC HOWARD J. GOLDEN GLADES CABLE PPV (US) ED BURKHOFF
Address: HOWARD J. GOLDEN GLADES Telephone 1: (954) 452-5307 Ext. 0000
2400 E. COMMERCIAL BLVD. Telephone 2: (000) 000-0000 Ext. 0000
City: FORT LAUDERDALE Fax Number: (000) 000-0000 Ext. 0000
Province: FL Postal Code:33308
Country: USA
IPCIS009 IPC HAMPTON INN ISLAMORADA CABLE PPV (US) ED BURKHOFF
Address: HAMPTON INN ISLAMORADA Telephone 1: (954) 452-5307 Ext. 0000
2400 E COMMERCIAL BLVD. Telephone 2: (000) 000-0000 Ext. 0000
City: FORT LAUDERDALE Fax Number: (000) 000-0000 Ext. 0000
Province: FL Postal Code:33308
Country: USA
IPCMA006 IPC BEST WESTERN MIAMI AIRPORT CABLE PPV (US) ED BURKHOFF
Address: BEST WESTERN MIAMI AIRPORT Telephone 1: (954) 542-5307 Ext. 0000
2400 E. COMMERCIAL BLVD. Telephone 2: (000) 000-0000 Ext. 0000
City: FORT LAUDERDALE Fax Number: (000) 000-0000 Ext. 0000
Province: FL Postal Code:33308
Country: USA
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IPCTC012 IPC THE CHATEAU CABLE PPV (US) ED BURKHOFF
Address: THE CHATEAU BY THE SEA Telephone 1: (954) 453-5307 Ext. 0000
2400 E COMMERCIAL BLVD. Telephone 2: (000) 000-0000 Ext. 0000
City: FORT LAUDERDALE Fax Number: (000) 000-0000 Ext. 0000
Province: FL Postal Code:33308
Country: USA
IPCWPBO18 IPC C0MORT INN WEST PALM BEACH CABLE PPV (US) ED BURKHOFF
Address: 2400 EAST COMMERCIAL BLVD. Telephone 1: (954) 452-5307 Ext. 0000
Telephone 2: (000) 000-0000 Ext. 0000
City: FORT LAUDERDALE Fax Number: (000) 000-0000 Ext. 0000
Province: FL Postal Code:33308
Country: USA
0MEG013 OMEGA COMMUNICATIONS SYST. CABLE PPV (US) LEONARD WEINER
Aodress: DALLAS TEXAS SITE Telephone 1: (901) 384-7784 Ext. 0000
PO BOX 171311 Telephone 2: (000) 000-0000 Ext. 0000
City: MEMPHIS Fax Number: (000) 000-0000 Ext. 0000
Province: TN Postal Code:38187
Country: USA
PRIV014 PRIVATE CABLE CABLE PPV (US) JOHN RUSTIN
Address: PO BOX 3166 Telephone 1: (714) 395-6210 Ext. 0000
Telephone 2: (000) 000-0000 Ext. 0000
City: HUNTINGTON Fax Number: (000) 000-0000 Ext. 0000
Province: CA Postal Code:92605
Country: USA
PULS015 PULSAR VIDEO INC. CABLE PPV (US) ROGER GALVIN
Address: 1850 S.W. 61ST COURT Telephone 1: (305) 949-9577 Ext. 0000
Telephone 2: (000) 000-0000 Ext. 0000
City: FORT LAUDERDALE Fax Number: (000) 000-0000 Ext. 0000
Province: FL Postal Code:33332
Country: USA
TESTING TESTING CABLE PPV (US)
Address: Telephone 1: (000) 000-0000 Ext. 0000
Telephone 2: (000) 000-0000 Ext. 0000
City: Fax Number: (000) 000-0000 Ext. 0000
Province: Postal Code:
Country:
GEMS6165 GEM-SEN DISTRIBUTION DEALERS (CDN) M. L MACISAAC
Address: DLR#6165 Telephone 1: (905) 660-3110 Ext. 0000
55 ADMINNISTRATION ROAD #10 Telephone 2: (000) 000-0000 Ext. 0000
City: CONCORD Fax Number: (905) 660-3108 Ext. 0000
Province: ON Postal Code:L4K 4G9
Country: CANADA
JRPR6275 JR'S PROGRAMMING DEALERS (CDN) JUDY SCHNURR
Address: DLR#6275 Telephone 1: (888) 649-3999 Ext. 0000
773 VICTORIA ST Telephone 2: (000) 000-0000 Ext. 0000
City: KAMLO0PS Fax Number: (888) 672-2122 Ext. 0000
Province: BC Postal Code:V2C 3B5
Country: CANADA
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MREL56O4 MR.ELECTRICIAN SATELLITE DEALERS (CDN) CHRIS KLEIN
Address: DLR#5604 Telephone 1: (416) 740-3474 Ext. 0000
39 FLEMINGTON DR Telephone 2: (000) 000-0000 Ext. 0000
City: CALEDON Fax Number: (416) 744-2683 Ext. 0000
Province: ON Postal Code:L7C 1B7
Country: CANADA
OMEG5988 OMEGASOURCE MTS INC. DEALERS (CDN)
Address: DLR#5988 Telephone 1: (403) 640-4553 Ext. 0000
C/O#200,5824 2nd ST S.W Telephone 2: (000) 000-0000 Ext. 0000
City: CALGARY Fax Number: (403) 255-6642 Ext. 0000
Province: AB Postal Code:T2H 0H2
Country: CANADA
20/205166 SATELLITES PLUS DEALERS (US) RHONDA MARI
Address: DLR#5166 Telephone 1: (804) 527-0482 Ext. 0000
1091 WINTERGREEN RD Telephone 2: (410) 643-5546 Ext. 0000
City: COVES CITY Fax Number: (804) 527-0753 Ext. 0000
Province: NC Postal Code:28523
Country: USA
20/205166 SATELLITES PLUS DEALERS (US) RHONDA MARI
Address: DLR#5166 Telephone 1: (804) 527-0482 Ext. 0000
RTE 4, BOX 318AA Telephone 2: (410) 643-5546 Ext. 0000
City: STATESVILLE Fax Number: (804) 527-0753 Ext. 0000
Province: NC Postal Code:28677
Country: USA
AAAN5616 A & A ANTENNA SATELLITE DEALERS (US) JANET ROOKS
Address: DLR#5616 Telephone 1: (513) 299-0322 Ext. 0000
5300 SPRINGBORO RD Telephone 2: (000) 000-0000 Ext. 0000
City: DAYTON Fax Number: (513) 294-4389 Ext. 0000
Province: OH Postal Code:45439
Country:
AAAS5231 AAA SATELLITE - KS DEALERS (US) ALEX SOLOMON
Address: DLR#5231 Telephone 1: (913) 721-3474 Ext. 0000
8437 STATE AVE Telephone 2: (000) 000-0000 Ext. 0000
City: KANSAS CITY Fax Number: (913) 788-3275 Ext. 0000
Province: KS Postal Code:66112
Country: USA
AASA6079 A & A SATELLITE WAREHOUSE DEALERS (US) ROBERT LOLA
Address: DLR#6079 Telephone 1: (818) 541-9071 Ext. 0000
3857 FOOTHILL BLVD Telephone 2: (000) 000-0000 Ext. 0000
City: GLENDALE Fax Number: (818) 541-9074 Ext. 0000
Province: CA Postal Code:91214
Country: USA
ABB05784 ABB0TTS AUDI0 & VIDEO DEALERS (US) CHRIS ABBOTT
Address: DLR#5784 Telephone 1: (702) 871-7388 Ext. 0000
W. SAHARA STE Q. Telephone 2: (000) 000-0000 Ext. 0000
City: LAS VEGAS Fax Number: (702) 871-5643 Ext. 0000
Province: NV Postal Code:89102
Country: USA
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ACTI5721 ACTION ENTERPRISES INC DEALERS (US) CHRIS LAMBERTH
Address: DLR#5721 Telephone 1: (716) 632-1122 Ext. 0000
9089 MAIN STREET Telephone 2: (000) 000-0000 Ext. 0000
City: CLARENCE Fax Number: (716) 632-1138 Ext. 0000
Province: NY Postal Code:14031
Country: USA
ADVA50064 ADVANTAGE ENTERTAINMENT DEALERS (US) DELSEY WOODS
Address: DLR#5064 Telephone 1: (305) 634-8800 Ext. 0000
2500 N.W.36TH STREET Telephone 2: (000) 000-0000 Ext. 0000
City: MIAMI Fax Number: (305) 637-9779 Ext. 0000
Province: FL Postal Code:33142
Country: USA
ADVA5233 ADVANCE TECH SVC-NOVASTAR SAT DEALERS (US) JOE MARTINEZ
Address: DLR#5233 Telephone 1: (210) 726-1600 Ext. 0000
903 SAN DARIO AVE Telephone 2: (000) 000-0000 Ext. 0000
City: LAREDO Fax Number: (210) 726-0222 Ext. 0000
Province: TX Postal Code:78040
Country: USA
ADVA6194 ADVANCED SAT SYSTEMS-NJ DEALERS (US) SANDY GIFOLI/
Address: DLR#6194 Telephone 1: (609) 768-0606 Ext. 0000 J THOM
PO BOX 174 Telephone 2: (000) 000-0000 Ext. 0000
City: BERLIN Fax Number: (609) 768-7590 Ext. 0000
Province: NJ Postal Code:08009
Country: USA
ADVA6235 ADANCED TECH ELECTRONIS, INC DEALERS (US) TANA WALTERS
Address: DLR#6235 Telephone 1: (770) 461-5744 Ext. 0000
389 SOUTH GLYNN ST Telephone 2: (000) 000-0000 Ext. 0000
City: FAYETTEVILLE Fax Number: (770) 461-0230 Ext. 0000
Province: GA Postal Code:30215
Country: USA
AJSA6285 A.J. SATELLITE DEALERS (US) AL FINFROCK
Address: DLR#6285 Telephone 1: (864) 944-0997 Ext. 0000
299 RIDGE RD Telephone 2: (000) 000-0000 Ext. 0000
City: SALEM Fax Number: (864) 944-0997 Ext. 0000
Province: SC Postal Code:29676
Country: USA
ALLS5987 ALL STAR SATELLITE DEALERS (US) DOUG RANK
Address: DLR#5987 Telephone 1: (513) 339-7227 Ext. 0000
1554 MC KAIG BLDG B Telephone 2: (000) 000-0000 Ext. 0000
City: TROY Fax Number: (513) 339-7114 Ext. 0000
Province: OH Postal Code:45373
Country: USA
ALLS6137 ALLSTAR SATELLITE INC. DEALERS (US) KRISTIN ALLEN
Address: DLR#6137 Telephone 1: (714) 985-1222 Ext. 0000
1180 NORTH RICHFIELD RD Telephone 2: (000) 000-0000 Ext. 0000
City: ANAHEIM Fax Number: (714) 985-1237 Ext. 0000
Province: CA Postal Code:92807
Country: USA
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ALP16229 ALPINE MICROWAVE INC DEALERS (US) JOHN BENTON
Address: DLR#6229 Telephone 1: (970) 243-2100 Ext. 0000
2820 1/2 NORTH AVENUE Telephone 2: (000) 000-0000 Ext. 0000
City: GRAND JUNCTION Fax Number: (970) 243-2177 Ext. 0000
Province: CO Postal Code:81501
Country: USA
AMER5905 AMERICAN NATIONAL SAT INC. DEALERS (US) SAM LEVY
Address: DLR#5905 Telephone 1: (305) 221-4666 Ext. 6000
9590 S.W.40 STREET Telephone 2: (000) 000-0000 Ext. 0000
City: MIAMI Fax Number: (305) 221-8874 Ext. 0000
Province: FL Postal Code:33165
Country: USA
ASHW5817 ASHWORTH'S DEALERS (US) LOWELL ASHWORTH
Address: 204 DEEM ST. Telephone 1: (513) 456-4929 Ext. 0000
Telephone 2: (000) 000-0000 Ext. 0000
City: EATON Fax Number: (513) 456-3879 Ext. 0000
Province: 0H Postal Code:45320
Country: USA
ASTR6167 ASTRO SATELLITE PROGRAMMING DEALERS (US) NADIA MENIA
Address: DLR#6167 Telephone 1: (305) 477-4733 Ext. 0000
3100 N.W 72ND AVE,#109 Telephone 2: (000) 000-0000 Ext. 0000
City: MIAMI Fax Number: (304) 477-4734 Ext. 0000
Province: FL Postal Code:33122
Country: USA
ATLA5247 ATLANTA ANTENNA INC DEALERS (US) CLIFF SHEPPERD
Address: 6111 BOYLSTON DR. #18 Telephone 1: (404) 255-2885 Ext. 0000
Telephone 2: (000) 000-0000 Ext. 0000
City: ATLANTA Fax Number: (000) 000-0000 Ext. 0000
Province: GA Postal Code:30328
Country: USA
ATLA5533 ATLANTIC SATELLITE COMMS DEALERS (US) MICHEAL MOFFETT
Address: DLR#5533 Telephone 1: (404) 363-0011 Ext. 0000
5085 ASH STREET Telephone 2: (000) 000-0000 Ext. 0000
City: FOREST PARK Fax Number: (404) 363-0706 Ext. 0000
Province: GA Postal Code:30050
Country: USA
AUGA6219 AUGUSTA SATELLITE SERVICES DEALERS (US) DAVID BEASLEY
Address: DLR#6219 Telephone 1: (706) 560-1400 Ext. 0000
4105 A DEANS BRIDGE RD Telephone 2: (000) 000-0000 Ext. 0000
City: HEPHZIBAH Fax Number: (706) 556-3645 Ext. 0000
Province: GA Postal Code:30815
Country: USA
BIGC5248 BIG CANYON TELEVISION DEALERS (US) MATRIN BENEVICH
Address: DLR#5248 Telephone 1: (915) 837-7484 Ext. 0000
BOX 192 Telephone 2: (000) 000-0000 Ext. 0000
City: ALPINE Fax Number: (915) 837-2586 Ext. 0000
Province: TX Postal Code:79831
Country: USA
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BMWS62O2 BMW SATELLITE DEALERS (US) BILL WOHL
Address: DLR#6202 Telephone 1: (602) 996-7928 Ext. 0000
8711 E. PINNACLE PEAK RD #228 Telephone 2: (000) 000-0000 Ext. 0000
City: SCOTTSDALE Fax Number: (602) 996-5393 Ext. 0000
Province: AZ Postal Code:85255-3517
Country: USA
BR0A5676 BROADWAY SATELLITE SYSTEMS DEALERS (US) MITCH FOREMAN
Address: DLR#5676 Telephone 1: (501) 945-3553 Ext. 0000
4000 EAST BROADWAY Telephone 2: (000) 000-0000 Ext. 0000
City: NORTH LITTLE ROCK Fax Number: (501) 945-3557 Ext. 0000
Province: AR Postal Code:72114
Country: USA
BRYS6161 BRY'S TV & APPLIANCE INC DEALERS (US) JOSH WOLFE
Address: DLR#6161 Telephone 1: (360) 659-8533 Ext. 0000
1401 STATE AVENUE Telephone 2: (000) 000-0000 Ext. 0000
City: MARYSVILLE Fax Number: (360) 653-8461 Ext. 0000
Province: WA Postal Code:98270
Country: USA
CABL5912 CABLE DIRECT SYSTEMS DEALERS (US) 0.B.CAVANAUGH
Address: DLR#5912 Telephone 1: (503) 251-8449 Ext. 0000
8407 NE FREMONT ST #401 Telephone 2: (000) 000-0000 Ext. 0000
City: PORTLAND Fax Number: (503) 251-9021 Ext. 0000
Province: OR Postal Code:97220-5150
Country: USA
CAGE6090 CAGE A.V.S. DEALERS (US) ROMINAL CAGE
Address: DLR#6090 Telephone 1: (214) 436-2474 Ext. 0000
1528 BARBARA Telephone 2: (000) 000-0000 Ext. 0000
City: LEWISVILLE Fax Number: (214) 436-2474 Ext. 0000
Province: TX Postal Code:75067
Country: USA
CASH SUBS CASH SUBS DEALERS (US)
Address: Telephone 1: (000) 000-0000 Ext. 0000
Telephone 2: (000) 000-0000 Ext. 0000
City: Fax Number: (000) 000-0000 Ext. 0000
Province: Postal Code:
Country:
CMSA6133 C & M SATELLITE DEALERS (US) MICHEAL O'FIELD
Address: DLR#6133 Telephone 1: (205) 732-3434 Ext. 0000
22443 NEW GARDEN RD Telephone 2: (000) 000-0000 Ext. 0000
City: ELKMOUNT Fax Number: (205) 232-0338 Ext. 0000
Province: AL Postal Code:35620
Country: USA
COMP6286 COMPUTER CONSULTANTS DEALERS (US) STUART GUS
Address: DLR#6286 Telephone 1: (918) 665-1588 Ext. 0000
3611 S. 130th E. AVENUE Telephone 2: (000) 000-0000 Ext. 0000
City: TULSA Fax Number: (918) 665-1589 Ext. 0000
Province: OK Postal Code:74134
Country: USA
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C0UN6171 COUNTRY VIEW CABLE DEALERS (US) STEVEN COVELL
Address: DLR#6171 Telephone 1: (419) 784-9200 Ext. 0000
09204 ST RT.15 Telephone 2: (000) 000-0000 Ext. 0000
City: DEFIANCE Fax Number: (419) 784-9289 Ext. 0000
Province: OH Postal Code:43512
Country: USA
CRAF6050 CRAFT STOVE & SATELLITES DEALERS (US) HAL MCPHERSON
Address: 1620 HWY 70 S.W. Telephone 1: (704) 322-2123 Ext. 0000
Telephone 2: (000) 000-0000 Ext. 0000
City: HICKORY Fax Number: (704) 327-3715 Ext. 0000
Province: NC Postal Code:28602
Country: USA
DALE5004 DALE'S SATELLITE DEALERS (US) DALE BOSLEY
Address: DLR#5004 Telephone 1: (517) 777-6655 Ext. 0000
9800 PETTIT ROAD Telephone 2: (000) 000-0000 Ext. 0000
City: BIRCH RUN Fax Number: (000) 000-0000 Ext. 0000
Province: MI Postal Code:48415
Country: USA
DEBB6014 DEBBIE'S LITTLE DISHES DEALERS (US) DEBBIE DAY
Address: DLR#6014 Telephone 1: (770) 844-6330 Ext. 0000
5150 CHATTAHOOCHEE IND PARK Telephone 2: (000) 000-0000 Ext. 0000
City: CUMMING Fax Number: (770) 844-6331 Ext. 0000
Province: GA Postal Code:30131
Country: USA
DFWI6231 DFW INTEGRATED SATELLITE DEALERS (US) JOHN BERLANGA
Address: DLR#6231 Telephone 1: (817) 577-9520 Ext. 0000
5600 RUFE SNOW RD,#107 Telephone 2: (000) 000-0000 Ext. 0000
City: NORTH RICHMOND HILLS Fax Number: (817) 788-1717 Ext. 0000
Province: TX Postal Code:76180
Country: USA
DIRE5119 DIRECT BROADCAST SYSTEMS-GA DEALERS (US) ELLEN HANSEN
Address: DLR#5119 Telephone 1: (706) 546-6900 Ext. 0000
4038 LEXINTON RD Telephone 2: (000) 000-0000 Ext. 0000
City: ATHENS Fax Number: (706) 546-0636 Ext. 0000
Province: GA Postal Code:30605
Country: USA
DIRE6252 DIRECT PROGRAMMING DEALERS (US) REINA MONTALOO
Address: DLR#6252 Telephone 1: (619) 896-6309 Ext. 0000
416 W SAN YSIDRO BLVD Telephone 2: (000) 000-0000 Ext. 0000
City: YSIDRO Fax Number: (000) 000-0000 Ext. 0000
Province: CA Postal Code:92173
Country: USA
DOWN5052 DOWN HOME SATELLITE-NC DEALERS (US) LORRIE HARRIS
Address: DLR#5052 Telephone 1: (919) 943-2184 Ext. 0000
P0 BOX 8 Telephone 2: (000) 000-0000 Ext. 0000
City: BELHAVEN Fax Number: (919) 943-6674 Ext. 0000
Province: NC Postal Code:27810
Country: USA
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DREW6003 HEAVEN TO EARTH SATELLITE DEALERS (US) RICHARD HALES
Address: DLR#6003 Telephone 1: (501) 367-6644 Ext. 0000
PO BOX 141 Telephone 2: (000) 000-0000 Ext. 0000
City: MONTICELLO Fax Number: (501) 367-6460 Ext. 0000
Province: AR Postal Code:71655
Country: USA
DUFF6139 DUFFY'S SATELLITE SYSTEMS DEALERS (US) JENNYE BLABON
Address: DLR#6139 Telephone 1: (619) 448-2223 Ext. 0000
11541 WOODSIDE AVENUE Telephone 2: (000) 000-0000 Ext. 0000
City: SANTEE Fax Number: (619) 448-2223 Ext. 0000
Province: CA Postal Code:92071
Country: USA
ELEC5906 ELECTRONICS SPECIALTY SALES DEALERS (US) RONALD STORVICK
Address: DLR#5906 Telephone 1: (507) 433-7506 Ext. 0000
1205 8TH ST. N.W Telephone 2: (000) 000-0000 Ext. 0000
City: AUSTIN Fax Number: (507) 433-2077 Ext. 0000
Province: MN Postal Code:55912
Country: USA
ENTE6259 ENTERTAINMENT U.S.A. DEALERS (US) KARL P BRUDKE
Address: DLR#6259 Telephone 1: (304) 744-1745 Ext. 0000
520 1/2 D-STREET Telephone 2: (000) 000-0000 Ext. 0000
City: SOUTH CHARLSTON Fax Number: (304) 744-1981 Ext. 0000
Province: WV Postal Code:25303
Country:
EXCL5615 EXCLUSIVELY OUTERLIMITS, INC DEALERS (US) JUDITH ROATCHE
Address: DLR#5615 Telephone 1: (919) 745-7290 Ext. 0000
PO BOX 852 Telephone 2: (000) 000-0000 Ext. 0000
City: BAYBORO Fax Number: (919) 745-7238 Ext. 0000
Province: NC Postal Code:28515
Country: USA
EYEI5281 EYE IN THE SKY DEALERS (US) BUD BECKLUND
Address: DLR#5281 Telephone 1: (602) 996-5740 Ext. 0000
PO BOX 9494 Telephone 2: (000) 000-0000 Ext. 0000
City: PHEONIX Fax Number: (602) 996-5740 Ext. 0000
Province: AZ Postal Code:85068-9494
Country: USA
FL0R5028 FLORIDA SATELLITE TV-DISH DEALERS (US) VALERIE GEORGE
Address: DLR#5028 Telephone 1: (813) 956-1298 Ext. 0000
2999 W. HWY 92 Telephone 2: (000) 000-0000 Ext. 0000
City: WINTER HAVEN Fax Number: (813) 956-1288 Ext. 0000
Province: FL Postal Code:33881
Country: USA
FL0R5626 FLORES SATELLITE & COMM INC DEALERS (US)
Address: DLR#5626 Telephone 1: (505) 393-1162 Ext. 0000
814 NORTH LINAM Telephone 2: (000) 000-0000 Ext. 0000
City: HOBBS Fax Number: (505) 393-1162 Ext. 0000
Province: NM Postal Code:88240
Country: USA
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GARR5157 GARRETT ENTERTAINMENT GROUP DEALERS (US) JIM OR DOUG
Address: DLR#5157 Telephone 1: (903) 887-4190 Ext. 0000 GARRETT
PO BOX1130 Telephone 2: (000) 000-0000 Ext. 0000
City: MAYBANK Fax Number: (903) 887-4191 Ext. 0000
Province: TX Postal Code:76147
Country: USA
GARRAW GARRAWAY SATELLITE DEALERS (US)
Address: 4119 N. STATE RD. #7 #821 Telephone 1: (305) 271-7581 Ext. 0000
Telephone 2: (000) 000-0000 Ext. 0000
City: FORT LAUDERDALE Fax Number: (809) 362-1025 Ext. 0000
Province: FL Postal Code:33319
Country:
GEPE5200 G.E.P. ENTERPRISES DEALERS (US) GENE POWELL
Address: DLR#5200 Telephone 1: (314) 764-2369 Ext. 0000
RTE 1,BOX 158 Telephone 2: (000) 000-0000 Ext. 0000
City: ROSEBUD Fax Number: (314) 764-2570 Ext. 0000
Province: MS Postal Code:63091
Country: USA
GL0B6035 GLOBAL SYSTEMS DEALERS (US)
Address: DLR#6035 Telephone 1: (334) 793-3553 Ext. 0000
1515 HARTFORD HWY,SUITE 2 Telephone 2: (000) 000-0000 Ext. 0000
City: DOTHAN Fax Number: (334) 793-4110 Ext. 0000
Province: AL Postal Code:36301
Country: USA
GMPR5930 GM PROGRAMMING DEALERS (US)
Address: DLR#5930 Telephone 1: (406) 862-4214 Ext. 0000
440 COLUMBIA AVE Telephone 2: (000) 000-0000 Ext. 0000
City: WHITEFISH Fax Number: (000) 000-0000 Ext. 0000
Province: MT Postal Code:59937
Country: USA
GOUR6300 GOURMET DISH DEALERS (US) DONALD FRELING
Address: DLR#6300 Telephone 1: (716) 798-1327 Ext. 0000
PO BOX 32 Telephone 2: (000) 000-0000 Ext. 0000
City: MEDINA Fax Number: (716) 798-1328 Ext. 0000
Province: NY Postal Code:14103
Country: USA
GROU GROUND CONTROL DEALERS (US)
Address: DLR#5980 Telephone 1: (607) 776-3474 Ext. 0000
6747 RTE 415 SOUTH Telephone 2: (000) 000-0000 Ext. 0000
City: BATH Fax Number: (607) 776-7687 Ext. 0000
Province: NY Postal Code:14810
Country: USA
HAMN5690 HAMNER ELECTRONICS DEALERS (US) CHARLES HAMNER
Address: DLR#5690 Telephone 1: (504) 752-5191 Ext. 0000
P0 BOX 86678 Telephone 2: (000) 000-0000 Ext. 0000
City: BATON ROUGE Fax Number: (504) 752-1042 Ext. 0000
Province: FL Postal Code:86678
Country: USA
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HARO6097 HAROLD'S SATELLITE DEALERS (US) RHONDA PORTER
Address: DLR#6097 Telephone 1: (803) 672-6728 Ext. 0000
111 EAST MCGREGOR ST Telephone 2: (000) 000-0000 Ext. 0000
City: PAGELAND Fax Number: (803) 672-6731 Ext. 0000
Province: SC Postal Code:29728
Country: USA
HHCA6164 H & H CALE SYSTEMS DEALERS (US) STEVE HATCHER
Address: DLR#6164 Telephone 1: (334) 712-6500 Ext. 0000
306 NORTH FOSTER Telephone 2: (000) 000-0000 Ext. 0000
City: DOTHAN Fax Number: (334) 702-9191 Ext. 0000
Province: AL Postal Code:36303
Country: USA
HIGH5499 HIGH TECH ELECTRONICS DEALERS (US) STEVE SUDIMAK
Address: DLR#5499 Telephone 1: (216) 538-2621 Ext. 0000
10290 MAHOMING AVE Telephone 2: (000) 000-0000 Ext. 0000
City: NORTH JACKSON Fax Number: (216) 538-2281 Ext. 0000
Province: OH Postal Code:44451
Country: USA
HOME5035 HOME CABLE CONCEPTS DEALERS (US) DORIS RISLEY
Address: RR 2 BOX 44 Telephone 1: (618) 884-1112 Ext. 0000
Telephone 2: (000) 000-0000 Ext. 0000
City: LAWRENCEVILLE Fax Number: (618) 884-9048 Ext. 0000
Province: IL Postal Code:62439
Country: USA
HOME5212 HOME ENTERTAINMENT-LOUISIANA DEALERS (US) GERALD HEBERT
Address: DLR#5212 Telephone 1: (318) 536-6512 Ext. 0000
PO BOX 142 Telephone 2: (000) 000-0000 Ext. 0000
City: GUEYDAN Fax Number: (318) 536-7977 Ext. 0000
Province: LA Postal Code:70542
Country: USA
HPSA5688 HPS AUDIO & VIDEO LLC DEALERS (US) RAFAEL GONZALEZ
Address: DLR#5688 Telephone 1: (915) 778-6515 Ext. 0000
6906 GATEWAY EAST Telephone 2: (000) 000-0000 Ext. 0000
City: ELPASO Fax Number: (915) 778-6177 Ext. 0000
Province: TX Postal Code:79915
Country: USA
INDEPE INDEPENDENT SATELLITE DEALERS (US)
Address: 7010 AMERICAN WAY Telephone 1: (214) 283-3474 Ext. 0000
Telephone 2: (000) 000-0000 Ext. 0000
City: DALLAS Fax Number: (214) 283-0269 Ext. 0000
Province: TX Postal Code:75337
Country: USA
INTE5022 INTERTECH SATELLITE DEALERS (US)
Address: DLR#5022 Telephone 1: (716) 621-8110 Ext. 0000
PO BOX 32 Telephone 2: (000) 000-0000 Ext. 0000
City: MEDINA Fax Number: (716) 798-1328 Ext. 0000
Province: NY Postal Code: 14103
Country: USA
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KING5202 KING SATELLITE LTD. DEALERS (US) MIKE KING
Address: PO BOX 358 Telephone 1: (970) 390-3252 Ext. 0000
Telephone 2: (000) 000-0000 Ext. 0000
City: FRISCO Fax Number: (303) 468-6950 Ext. 0000
Province: CO Postal Code:80443
Country: USA
K0RR5043 KORROS SATELLITE SYSTEMS DEALERS (US) DAVID KORROS
Address: DLR#5043 Telephone 1: (606) 928-3000 Ext. 0000
5972 US RT 60 W Telephone 2: (000) 000-0000 Ext. 0000
City: ASHLAND Fax Number: (606) 928-3113 Ext. 0000
Province: KY Postal Code:41102
Country: USA
MARP6009 MAR-POL SATELLITE DEALERS (US)
Address: DLR# 6009 Telephone 1: (619) 355-1962 Ext. 0000
1786 WEST ADAMS AVE #5 Telephone 2: (000) 000-0000 Ext. 0000
City: ELCENTRO Fax Number: (619) 355-1126 Ext. 0000
Province: CA Postal Code:92243
Country: USA
MILLIKEN MILLIKEN & MICHAELS, INC DEALERS (US)
Address: 3850 N/GAUSEWAY BLVD Telephone 1: (504) 834-9900 Ext. 0000
3RD FLOOR Telephone 2: (000) 000-0000 Ext. 0000
City: METAIRIE Fax Number: (504) 834-9907 Ext. 0000
Province: LA Postal Code:70002
Country:
N0RT5213 NORTH STAR SATLLITE-IDAHO DEALERS (US) INGRID KUEHN
Address: DLR#5213 Telephone 1: (206) 322-6175 Ext. 0000
6625 W. CHINDEN BLVD Telephone 2: (000) 000-0000 Ext. 0000
City: MERIDIEN Fax Number: (208) 322-7445 Ext. 0000
Province: ID Postal Code:83642
Country: USA
OPTI5206 OPTION CABLE TV DEALERS (US) RONALD ALFIN
Address: DLR#5206 Telephone 1: (817) 640-4965 Ext. 0000
2801 E. PIONEER PARKWAY Telephone 2: (000) 000-0000 Ext. 0000
City: ARLINGTON Fax Number: (817) 265-3308 Ext. 0000
Province: TX Postal Code:76010
Country: USA
PERF5938 PERFECT SATELLITE DEALERS (US) GARY CHOSEWOOD
Address: DLR#5983 Telephone 1: (904) 347-7661 Ext. 0000
4928 SE ABSHIER BLVD Telephone 2: (000) 000-0000 Ext. 0000
City: BELLEVIEW Fax Number: (904) 347-3997 Ext. 0000
Province: FL Postal Code:34420
Country: USA
PRIM5736 PRIME FOCUS DEALERS (US) LINDA BUNCH
Address: DLR#5736 Telephone 1: (214) 412-3474 Ext. 0000
1645 TOWN EAST #184 Telephone 2: (000) 000-0000 Ext. 0000
City: MESQUITE Fax Number: (214) 279-3524 Ext. 0000
Province: TX Postal Code:75150
Country: USA
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PR0S6145 PR0-SAT SATELLITE SYSTEMS DEALERS (US) FRANCOIS BARTUM
Address: DLR#6145 Telephone 1: (787) 745-1955 Ext. 0000
BONNEVILLE TER. DEGETAUF AV F7 Telephone 2: (000) 000-0000 Ext. 0000
City: CAGUAS, PUERTO RICO Fax Number: (809) 743-5655 Ext. 0000
Province: Postal Code:00725
Country:
QUAL5020 QUALITY TV AND SATELLITES DEALERS (US) ROBERT KING
Address: DLR#5020 Telephone 1: (813) 533-1041 Ext. 0000
296 HIGHWAY 17 NORTH Telephone 2: (000) 000-0000 Ext. 0000
City: BARTOW Fax Number: (813) 533-7138 Ext. 0000
Province: FL Postal Code:3383O
Country: USA
QUAL6246 QUALITY SATELLTE DEALERS (US) DIXIE WOODARD
Address: DLR#6246 Telephone 1: (615) 443-4780 Ext. 0000
102 WEST END HEIGHTS Telephone 2: (000) 000-0000 Ext. 0000
City: LEBANON Fax Number: (615) 444-2126 Ext. 0000
Province: TN Postal Code:37087
Country:
RASA6270 R.A. SATELLITES SYSTEM INC. DEALERS (US) ALEZ RIZZOTTI
Address: DLR#1538 Telephone 1: (281) 491-2915 Ext. 0000
1538 AITHERFIELD Telephone 2: (000) 000-0000 Ext. 0000
City: SUGARLAND Fax Number: (281) 491-1155 Ext. 0000
Province: TX Postal Code:77478
Country: USA
RILE RILEY ANTENNA SYSTEMS DEALERS (US) DONNA
Address: DLR#5686 Telephone 1: (513) 788-2185 Ext. 0000
4780 STONEY CREEK ROAD Telephone 2: (000) 000-0000 Ext. 0000
City: UBANA Fax Number: (513) 788-2246 Ext. 0000
Province: OH Postal Code:43078
Country: USA
R0NN6291 RONNIE'S SATELLITE SERVICE DEALERS (US) RONNIE COUCH
Address: DLR#6291 Telephone 1: (804) 476-1537 Ext. 0000
1035 BENISTER RD Telephone 2: (000) 000-0000 Ext. 0000
City: HALIFAX Fax Number: (804) 476-1537 Ext. 0000
Province: VA Postal Code:24558
Country: USA
SASE5751 SAS ELECTRONICS-FLORIDA DEALERS (US) JOHN SKELLY
Address: DLR#5751 Telephone 1: (904) 493-1327 Ext. 0000
101 RODGERS BLVD Telephone 2: (000) 000-0000 Ext. 0000
City: CHIEFLAND Fax Number: (904) 493-0255 Ext. 0000
Province: FL Postal Code:32626
Country: USA
SATE5067 SATELLITE HOME THEATRE DEALERS (US) LEO RIDDLE
Address: DLR#5067 Telephone 1: (904) 347-8665 Ext. 0000
11781 S.E HWY 441 Telephone 2: (000) 000-0000 Ext. 0000
City: BELLEVIEW Fax Number: (904) 347-7576 Ext. 0000
Province: FL Postal Code:34420
Country: USA
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SATE5134 SATELLITE CENTER INC DEALERS (US) DONNA PELLARIN
Address: DLR#5134 Telephone 1: (504) 888-3474 Ext. 0000
4415 NORTH 1-10 SERVICE RD W. Telephone 2: (000) 000-0000 Ext. 0000
City: METAIRIE Fax Number: (504) 888-4479 Ext. 0000
Province: LA Postal Code:73336
Country: USA
SATE5177 SATELLITE DISC0UNTERS DEALERS (US) MICHEAL ADAMS
Address: DLR#5177 Telephone 1: (410) 754-4821 Ext. 0000
606 SNOW HILL RD Telephone 2: (000) 000-0000 Ext. 0000
City: SALISBURY Fax Number: (410) 546-0724 Ext. 0000
Province: MD Postal Code:21801
Country: USA
SATE5204 SATELLITE SYSTEMS PLUS DEALERS (US) TINA DE YOUNG
Address: DLR#5204 Telephone 1: (616) 669-3800 Ext. 0000
2101 ROSEWOOD AVE Telephone 2: (000) 000-0000 Ext. 0000
City: JENISON Fax Number: (616) 669-1703 Ext. 0000
Province: MI Postal Code:49428
Country: USA
SATE5282 SATELLITE PLUS LLC DEALERS (US) JAMES TAPP/
Address: DLR#5282 Telephone 1: (803) 472-2508 Ext. 0000 SUSAN E
11210 ASHEVILLE Telephone 2: (000) 000-0000 Ext. 0000
City: INMAN Fax Number: (803) 472-2507 Ext. 0000
Province: SC Postal Code:29349
Country: USA
SATE5289 SATELLITE DOCTOR INC DEALERS (US) DARYL REMSON
Address: DLR#5289 Telephone 1: (718) 369-6100 Ext. 0000
2135 CONEY ISLAND AVENUE Telephone 2: (000) 000-0000 Ext. 0000
City: BROOKLYN Fax Number: (718) 965-1725 Ext. 0000
Province: NY Postal Code:11223
Country: USA
SATE5486 SATELLITE CITY DEALERS (US) JEFF MILLER
Address: DLR#5486 Telephone 1: (214) 337-8279 Ext. 0000
607 S. HAMPTON RD Telephone 2: (000) 000-0000 Ext. 0000
City: DALLAS Fax Number: (214) 337-8284 Ext. 0000
Province: TX Postal Code:75208
Country: USA
SATE5632 SATELLITE TV INC. -TX DEALERS (US) TONY BURTON
Address: DLR#5632 Telephone 1: (210) 349-3474 Ext. 0000
10003 NUGGET CREEK Telephone 2: (000) 000-0000 Ext. 0000
City: CONVERSE Fax Number: (210) 349-3487 Ext. 0000
Province: TX Postal Code:78109
Country: USA
SATE5673 SATELLITE CENTER -TRENTON DEALERS (US) TONY SARGENTI
Address: DLR#5673 Telephone 1: (609) 587-6004 Ext. 0000
566 ROUTE 33 Telephone 2: (000) 000-0000 Ext. 0000
City: TRENTON Fax Number: (609) 587-1350 Ext. 0000
Province: NJ Postal Code:08619
Country: USA
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SATE5789 SATELLITES UNLIMITED - SC DEALERS (US) BOBBY MCABEE
Address: DLR#5789 Telephone 1: (803) 578-7606 Ext. 0000
2639 BOILING SPRINGS ROAD Telephone 2: (000) 000-0000 Ext. 0000
City: SPARTANBURG Fax Number: (803) 599-7269 Ext. 0000
Province: SC Postal Code:29303
Country: USA
SATE5866 SATELLITE SALES & SERVICES DEALERS (US) ROBERT L
Address: DLR#5866 Telephone 1: (717) 532-9246 Ext. 0000 FINK SR.
115 KLINE RD Telephone 2: (000) 000-0000 Ext. 0000
City: SHIPPENSBURG Fax Number: (000) 000-0000 Ext. 0000
Province: PA Postal Code:17257
Country: USA
SATE5903 SATELLITE ENT. SPECIALISTS DEALERS (US) LEN TAYLOR
Address: DLR#5903 Telephone 1: (816) 228-4353 Ext. 0000
1212 N. WOODS CHAPEL RD Telephone 2: (000) 000-0000 Ext. 0000
City: BLUE SPRINGS Fax Number: (000) 000-0000 Ext. 0000
Province: MO Postal Code:64015
Country: USA
SATE5990 SATELLITE PLUS - MISSOURI DEALERS (US) KIM BRYAN
Address: DLR#5990 Telephone 1: (314) 949-8100 Ext. 0000
2256 FIRST CAPITAL DR Telephone 2: (000) 000-0000 Ext. 0000
City: ST-CHARLES Fax Number: (314) 949-9041 Ext. 0000
Province: MO Postal Code:63301
Country: USA
SATE6303 SATELLITE DEPOT INTERNATIONAL DEALERS (US) LATOYA EDWARDS
Address: DLR#6303 Telephone 1: (305) 888-0808 Ext. 0000
7105 NW 53 TERR Telephone 2: (000) 000-0000 Ext. 0000
City: MIAMI Fax Number: (305) 885-4611 Ext. 0000
Province: FL Postal Code:33166
Country: USA
SC0T5526 SCOTTDALE SHOWTIME SAT DEALERS (US) MIKE OR DON
Address: DLR#5526 Telephone 1: (602) 944-1166 Ext. 0000
8313 N 7TH STREET Telephone 2: (000) 000-0000 Ext. 0000
City: PHEONIX Fax Number: (000) 000-0000 Ext. 0000
Province: AZ Postal Code:85020
Country: USA
SHEI5256 SHEIK ENTERPRISES INC DEALERS (US) M0HAMMED SHEIK
Address: DLR#5256 Telephone 1: (305) 559-4488 Ext. 0000
500 N.W. 136th AVENUE Telephone 2: (000) 000-0000 Ext. 0000
City: MIAMI Fax Number: (305) 559-6700 Ext. 0000
Province: FL Postal Code:33182
Country: USA
SKYS5150 SKY'S THE LIMIT DEALERS (US) PATTY JONHSON
Address: DLR#5150 Telephone 1: (216) 325-1166 Ext. 0000
2746 SR 44 Telephone 2: (000) 000-0000 Ext. 0000
City: ROOTSTOWN Fax Number: (216) 325-1166 Ext. 0000
Province: OH Postal Code:44272
Country: USA
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SKYV625O SKYVIEW SATELLITE DEALERS (US)
Address: DLR#6250 Telephone 1: (706) 629-7526 Ext. 0000
101 GARDEN HILLS DR Telephone 2: (000) 000-0000 Ext. 0000
City: CALHOUN Fax Number: (706) 624-9900 Ext. 0000
Province: GA Postal Code:30701
Country: USA
SKYW5522 SKYWATCH SATELLITE DEALERS (US) JOHN THEOFILES
Address: DLR#5522 Telephone 1: (302) 846-0300 Ext. 0000
500 NORTH BI-STATE BLVD Telephone 2: (000) 000-0000 Ext. 0000
City: DELMAR Fax Number: (302) 846-0624 Ext. 0000
Province: DE Postal Code:19940
Country: USA
SOUT6186 SOUTHWEST WHOLESALE DEALERS (US) JOE MARTINEZ
Address: DLR#6186 Telephone 1: (619) 425-1247 Ext. 0000
293 3rd AVE Telephone 2: (000) 000-0000 Ext. 0000
City: CHULA VISTA Fax Number: (619) 585-7052 Ext. 0000
Province: CA Postal Code:91910
Country: USA
SPAC5116 SPACE-VISION SATELLITE DEALERS (US) RANDY BROSSETTE
Address: DLR#5116 Telephone 1: (318) 640-8393 Ext. 0000
1797 WATSON ROAD Telephone 2: (000) 000-0000 Ext. 0000
City: PINEVILLE Fax Number: (318) 640-8393 Ext. 0000
Province: LA Postal Code:71360
Country: USA
STAR5754 STAR VISION DEALERS (US) JERRY MARSH
Address: DLR#5754 Telephone 1: (210) 804-0554 Ext. 0000
6836 SAN PEDRO STE 218 Telephone 2: (000) 000-0000 Ext. 0000
City: SAN ANTONIO Fax Number: (210) 804-0596 Ext. 0000
Province: TX Postal Code:78216
Country: USA
TVSA5873 TV SATELLITE OF VA BEACH INC DEALERS (US) RALPH TAGUBA
Address: DLR#5873 Telephone 1: (804) 463-5414 Ext. 0000
3590 HOLLAND RD, SUITE 112 Telephone 2: (000) 000-0000 Ext. 0000
City: VIRGINIA BEACH Fax Number: (804) 463-1363 Ext. 0000
Province: VA Postal Code:23452
Country: USA
TVUS6210 TV USA / TELEMIXICO DEALERS (US) DAVID VIDAL
Address: DLR#6210 Telephone 1: (702) 433-0304 Ext. 0000
6001 ABLETTE AVE Telephone 2: (000) 000-0000 Ext. 0000
City: LAS VEGAS Fax Number: (702) 433-1124 Ext. 0000
Province: NV Postal Code:89122
Country: USA
VISI6022 VISION CABLE DEALERS (US) J.D.DUNPHY
Address: DLR#6022 Telephone 1: (214) 503-6999 Ext. 0000
PO BOX 820908 Telephone 2: (000) 000-0000 Ext. 0000
City: DALLAS Fax Number: (214) 235-1085 Ext. 0000
Province: TX Postal Code:75382
Country: USA
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WALS5552 WALSH COMMUNICATIONS INC DEALERS (US) TERRY WALSH
Address: DLR#5552 Telephone 1: (905) 274-5959 Ext. 0000
6860 GULFPORT BLVD,UNIT 10 Telephone 2: (905) 856-0795 Ext. 0000
City: ST PETERSBURG Fax Number: (905) 274-8216 Ext. 0000
Province: FL Postal Code:33707
Country: USA
FUTU031 FUTURE INNS (SKY CABLE) HOTELS (CDN) BRUCE BRETT
Address: 34 BEDFORD HIGHWAY Telephone 1: (902) 443-2606 Ext. 0000
Telephone 2: (000) 000-0000 Ext. 0000
City: HALIFAX Fax Number: (902) 457-0212 Ext. 0000
Province: NS Postal Code:B3M-2J2
Country: CANADA
GALAM043 GALAVU - AMHERST HOTELS (CDN)
Address: FOR COMFORT INN-AMHERST, NS. Telephone 1: (905) 479-8999 Ext. 0000
7800 WOODBINE AVE., STE. 300 Telephone 2: (000) 000-0000 Ext. 0000
City: MARKHAM Fax Number: (905) 479-8949 Ext. 0000
Province: ON Postal Code:L3R-2N7
Country: CANADA
GALBR036 GALAVU - BARRIE HOTELS (CDM)
Address: FOR COMFORT INN-BARRIE, ON. Telephone 1: (905) 479-8999 Ext. 0000
7800 WOODBINE AVE., STE. 300 Telephone 2: (000) 000-0000 Ext. 0000
City: MARKHAM Fax Number: (905) 479-8949 Ext. 0000
Province: ON Postal Code:L3R-2N7
Country: CANADA
GALBT002 GALAVU - BRAMPTON HOTELS (CDN) BILL SHORT
Address: FOR COMFORT INN BRAMPTON Telephone 1: (905) 479-8999 Ext. 0000
7800 WOODBINE AVE. SUITE 300 Telephone 2: (000) 000-0000 Ext. 0000
City: MARKHAM Fax Number: (905) 479-8949 Ext. 0000
Province: ON Postal Code:L3R-2N7
Country: CANADA
GALBV001 GALAVU - BELLEVILLE HOTELS (CDN) BILL SHORT
Address: FOR COMFORT INN BELLEVILLE Telephone 1: (905) 479-8909 Ext. 0000
7800 WOODBINE AVE. SUITE 300 Telephone 2: (000) 000-0000 Ext. 0000
City: MARKHAM Fax Number: (905) 479-8949 Ext. 0000
Province: ON Postal Code:L3R-2N7
Country: CANADA
GALBV2O44 GALAVU - BELLEVILLE2 HOTELS (CDN)
Address: FOR COMFORT INN-BELLEVILLE2 Telephone 1: (905) 479-8999 Ext. 0000
7800 WOODBINE AVE., STE. 300 Telephone 2: (000) 000-0000 Ext. 0000
City: MARKHAM Fax Number: (905) 479-8949 Ext. 0000
Province: ON Postal Code:L3R-2N7
Country: CANADA
GALC8003 GALAVU - CAMBRIDGE HOTELS (CDN) BILL SHORT
Address: FOR COMFORT INN CAMBRIDGE Telephone 1: (905) 47-9899 Ext. 9000
7800 WOODBINE AVE. SUITE 300 Telephone 2: (000) 000-0000 Ext. 0000
City: MARKHAM Fax Number: (905) 479-8949 Ext. 0000
Province: ON Postal Code:L3R-2N7
Country: CANADA
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GALC0034 GALAVU - CALGARY HOTELS (CON) BILL SHORT
Address: FOR TRAVELODGE CALGARY Telephone 1: (905) 479-3999 Ext. 0000
7800 WOODBINE AVE. SUITE # 300 Telephone 2: (000) 000-0000 Ext. 0000
City: MARKHAM Fax Number: (905) 479-8949 Ext. 0000
Province: ON Postal Code:L3R-2N7
Country: CANADA
GALCH033 GALAVU - CHATHAM HOTELS (CDN) BILL SHORT
Address: FOR COMFORT INN CHATHAM Telephone 1: (905) 479-8999 Ext. 0000
7800 WOODBINE AVE. SUITE # 300 Telephone 2: (000) 000-0000 Ext. 0000
City: MARKHAM Fax Number: (905) 479-8949 Ext. 0000
Province: ON Postal Code:L3R-2N7
Country: CANADA
GALCT042 GALAVU - CHARLOTTETOWN HOTELS (CDN)
Address: FOR COMFORT-INN-CHARLOTTETOWN Telephone 1: (905) 479-8999 Ext. 0000
7800 WOODBINE AVE., STE. 300 Telephone 2: (000) 000-0000 Ext. 0000
City: MARKHAM Fax Number: (905) 479-8949 Ext. 0000
Province: ON Postal Code:L3R-2N7
Country: CANADA
GALDM004 GALAVU - DARTHM0UTH HOTELS (CDN) BILL SHORT
Address: FOR COMFORT INN DARTMOUTH Telephone 1: (905) 479-8999 Ext. 0000
7800 WOODBINE AVE. SUITE 300 Telephone 2: (000) 000-0000 Ext. 0000
City: MARKHAM Fax Number: (905) 479-8949 Ext. 0000
Province: ON Postal Code:L3R-2N7
Country: CANADA
GALED032 GALAVU - EDMUNDSTON HOTELS (CDN) ERIN THOMPSON
Address: FOR COMFORT INN EDMUNDSTON Telephone 1: (905) 479-8999 Ext. 0000
7800 WOODBINE AVE. SUITE 300 Telephone 2: (000) 000-0000 Ext. 0000
City: MARKHAM Fax Number: (000) 000-0000 Ext. 0000
Province: ON Postal Code:L3R-2N7
Country: CANADA
GALFD005 GALAVU - FREDERICTON HOTELS (CDN) BILL SHORT
Address: FOR COMFORT INN FREDERICTON Telephone 1: (905) 479-8988 Ext. 0000
7800 WOODBINE AVE. SUITE 300 Telephone 2: (000) 000-0000 Ext. 0000
City: MARKHAM Fax Number: (905) 479-8949 Ext. 0000
Province: ON Postal Code:L3R-2N7
Country: CANADA
GALGP006 GALAVU - GUELPH HOTELS (CDN) BILL SHORT
Address: FOR COMFORT INN GUELPH Telephone 1: (905) 479-8999 Ext. 0000
7800 WOODBINE AVE. SUITE 300 Telephone 2: (000) 000-0000 Ext. 0000
City: MARKHAM Fax Number: (905) 479-8949 Ext. 0000
Province: ON Postal Code:L3R-2N7
Country: CANADA
GALHL007 GALAVU - HAMILTON HOTELS (CDN) BILL SHORT
Address: FOR COMFORT INN HAMILTON Telephone 1: (905) 479-8999 Ext. 0000
7800 WOODBINE AVE. SUITE 300 Telephone 2: (000) 000-0000 Ext. 0000
City: MARKHAM Fax Number: (905) 479-8949 Ext. 0000
Province: ON Postal Code:L3R-2N7
Country: CANADA
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GALHT008 GALAVU - HUNTSVILLE HOTELS (CDN) BILL SHORT
Address: FOR COMFORT INN HUNTSVILLE Telephone 1: (905) 479-8999 Ext. 0000
7800 WOODBINE AVE. SUITE 300 Telephone 2: (000) 000-0000 Ext. 0000
City: MARKHAM Fax Number: (905) 479-8949 Ext. 0000
Province: ON Postal Code:L3R-2N7
Country: CANADA
GALK1010 GALAVU - KINGSTON1(WARNE CRT.) HOTELS (CDN) BILL SHORT
Address: FOR KINGSTON (WARNE CRT) Telephone 1: (905) 479-8999 Ext. 0000
7800 WOODBINE AVE. SUITE 300 Telephone 2: (000) 000-0000 Ext. 0000
City: MARKHAM Fax Number: (905) 479-8949 Ext. 0000
Province: ON Postal Code:L3R-2N7
Country: CANADA
GALK2011 GALAVU - KINGSTON2 (PRINCESS) HOTELS (CDN) BILL SHORT
Address: FOR KINGSTON (PRINCESS) Telephone 1: (905) 479-8999 Ext. 0000
7800 WOODBINE AVE. SUITE 300 Telephone 2: (000) 000-0000 Ext. 0000
City: MARKHAM Fax Number: (905) 479-8949 Ext. 0000
Province: ON Postal Code:L3R-2N7
Country: CANADA
GALKT009 GALAVU - KANATA HOTELS (CDN) BILL SHORT
Address: FOR COMFORT INN KANATA Telephone 1: (905) 479-8999 Ext. 0000
7800 WOODBINE AVE. SUITE 300 Telephone 2: (000) 000-0000 Ext. 0000
City: MARKHAM Fax Number: (905) 479-8949 Ext. 0000
Province: ON Postal Code:L3R-2N7
Country: CANADA
GALLH012 GALAVU - LONDON(QUALITY HOTEL) HOTELS (CDN) BILL SHORT
Address: FOR QUALITY HOTEL LONDON Telephone 1: (905) 479-8999 Ext. 0000
7800 WOODBINE AVE. SUITE 300 Telephone 2: (000) 000-0000 Ext. 0000
City: MARKHAM Fax Number: (905) 479-8949 Ext. 0000
Province: ON Postal Code:L3R-2N7
Country: CANADA
GALLI013 GALAVU - LONDON(COMFORT INN) HOTELS (CDN) BILL SHORT
Address: FOR COMFORT INN LONDON Telephone 1: (905) 479-8999 Ext. 0000
7800 WOODBINE AVE. SUITE 300 Telephone 2: (000) 000-0000 Ext. 0000
City: MARKHAM Fax Number: (905) 479-8949 Ext. 0000
Province: ON Postal Code:L3R-2N7
Country: CANADA
GALLS014 GALAVU - LONDON(QUALITY SUITE) HOTELS (CDN) BILL SHORT
Address: FOR QUALITY SUITES LONDON Telephone 1: (905) 478-9899 Ext. 9000
7800 WOODBINE AVE. SUITE 300 Telephone 2: (000) 000-0000 Ext. 0000
City: MARKHAM Fax Number: (905) 479-8949 Ext. 0000
Province: ON Postal Code:L3R-2N7
Country: CANADA
GALM1038 GALAVU - MONCTON1 HOTELS (CDN)
Address: FOR COMFORT INN-MONCTON1, NB Telephone 1: (905) 479-8999 Ext. 0000
7800 WOODBINE AVE., STE. 300 Telephone 2: (000) 000-0000 Ext. 0000
City: MARKHAM Fax Number: (905) 479-8949 Ext. 0000
Province: ON Postal Code:L3R-2N7
Country: CANADA
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GALM2037 GALAVU - MONCTON2 HOTELS (CDN)
Address: FOR COMFORT INN-MONCTON2, NB. Telephone 1: (905) 479-8999 Ext. 0000
7800 WOODBINE AVE., STE. 300 Telephone 2: (000) 000-0000 Ext. 0000
City: MARKHAM Fax Number: (905) 479-8949 Ext. 0000
Province: ON Postal Code:L3R-2N7
Country: CANADA
GALMR035 GALAVU - MIRAMICHI HOTELS (CDN) BILL SHORT
Address: FOR COMFORT INN MIRAMICHI Telephone 1: (905) 479-8999 Ext. 0000
7800 WOODBINE AVE. SUITE # 300 Telephone 2: (000) 000-0000 Ext. 0000
City: MARKHAM Fax Number: (905) 479-8949 Ext. 0000
Province: ON Postal Code:L3R-2N7
Country: CANADA
GALNB016 GALAVU - NORTH BAY HOTELS (CDN) BILL SHORT
Address: FOR COMFORT INN NORTH BAY Telephone 1: (905) 479-8999 Ext. 0000
7800 WOODBINE AVE. SUITE 300 Telephone 2: (000) 000-0000 Ext. 0000
City: MARKHAM Fax Number: (905) 479-8949 Ext. 0000
Province: ON Postal Code:L3R-2N7
Country: CANADA
GALNB2O45 GALAVU - NORTH BAY2 HOTELS (CDN)
Address: FOR VENTURE INN-NORTH-BAY2 Telephone 1: (905) 479-8999 Ext. 0000
7800 WOODBINE AVE., STE. 300 Telephone 2: (000) 000-0000 Ext. 0000
City: MARKHAM Fax Number: (905) 479-8949 Ext. 0000
Province: ON Postal Code:L3R-2N7
Country: CANADA
GALNM015 GALAVU - NEWMARKET HOTELS (CDN) BILL SHORT
Address: FOR COMFORT INN NEWMARKET Telephone 1: (905) 479-8999 Ext. 0000
7800 WOODBINE AVE. SUITE 300 Telephone 2: (000) 000-0000 Ext. 0000
City: MARKHAM Fax Number: (905) 479-8949 Ext. 0000
Province: ON Postal Code:L3R-2N7
Country: CANADA
GAL0H018 GALAVU - OTTAWA(QUALITY HOTEL) HOTELS (CDN) BILL SHORT
Address: FOR QUALITY HOTEL OTTAWA Telephone 1: (905) 479-8999 Ext. 0000
7800 WOODBINE AVE. SUITE 300 Telephone 2: (000) 000-0000 Ext. 0000
City: MARKHAM Fax Number: (905) 479-8949 Ext. 0000
Province: ON Postal Code:L3R-2N7
Country: CANADA
GALOI019 GALAVU - OTTAWA(COMFORT INN) HOTELS (CDN) BILL SHORT
Address: FOR COMFORT INN OTTAWA Telephone 1: (905) 479-8999 Ext. 0000
7800 WOODBINE AVE. SUITE 300 Telephone 2: (000) 000-0000 Ext. 0000
City: MARKHAM Fax Number: (905) 479-8949 Ext. 0000
Province: ON Postal Code:L3R-2N7
Country: CANADA
GAL0R039 GALAVU - ORILLIA HOTELS (CDN)
Address: FOR COMFORT INN-0RILLIA, ON. Telephone 1: (905) 479-8999 Ext. 0000
7800 WOODBINE AVE., STE. 300 Telephone 2: (000) 000-0000 Ext. 0000
City: MARKHAM Fax Number: (905) 479-8949 Ext. 0000
Province: ON Postal Code:L3R-2N7
Country: CANADA
</TABLE>
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GALOW017 GALAVU - OSHAWA HOTELS (CDM) BILL SHORT
Address: FOR COMFORT INN OSHAWA Telephone 1: (905) 479-3999 Ext. 0000
7800 WOODBINE AVE. SUITE 300 Telephone 2: (000) 000-0000 Ext. 0000
City: MARKHAM Fax Number: (905) 479-8949 Ext. 0000
Province: ON Postal Code:L3R-2N7
Country: CANADA
GALPK020 GALAVU - PICKERING HOTELS (CDN) BILL SHORT
Address: FOR COMFORT INN PICKERING Telephone 1: (905) 479-8999 Ext. 0000
7800 WOODBINE AVE. SUITE 300 Telephone 2: (000) 000-0000 Ext. 0000
City: MARKHAM Fax Number: (905) 479-8949 Ext. 0000
Province: ON Postal Code:L3R-2N7
Country: CANADA
GALRM031 GALAVU - RICHMOND HOTELS (CDN) ARENA FISHMAN
Address: 7800 WOODBINE AVE. Telephone 1: (000) 000-0000 Ext. 0000
SUITE 300 Telephone 2: (000) 000-0000 Ext. 0000
City: MARKHAM Fax Number: (000) 000-0000 Ext. 0000
Province: ON Postal Code:L3R-2N7
Country: CANADA
GALS1022 GALAVU - SUDBURY1(REGENT ST) HOTELS (CDN) BILL SHORT
Address: FOR SUDBURY1 (REGENT ST.) Telephone 1: (905) 479-8999 Ext. 0000
7800 WOODBINE AVE. SUITE 300 Telephone 2: (000) 000-0000 Ext. 0000
City: MARKHAM Fax Number: (905) 479-8949 Ext. 0000
Province: ON Postal Code:L3R-2N7
Country: CANADA
GALS2023 GALAVU - SUDBURY2(2ND AVE.) HOTELS (CDN) BILL SHORT
Address: FOR SUDBURY2 (2ND AVE.) Telephone 1: (905) 479-8999 Ext. 0000
7300 WOODBINE AVE. SUITE 300 Telephone 2: (000) 000-0000 Ext. 0000
City: MARKHAM Fax Number: (905) 479-8949 Ext. 0000
Province: ON Postal Code:L3R-2N7
Country: CANADA
GALSC021 GALAVU - ST-CATHERINES HOTELS (CDN) BILL SHORT
Address: FOR COMFORT INN ST-CATHERINES Telephone 1: (905) 479-8999 Ext. 0000
7800 WOODBINE AVE. SUITE 300 Telephone 2: (000) 000-0000 Ext. 0000
City: MARKHAM Fax Number: (905) 479-8949 Ext. 0000
Province: ON Postal Code:L3R-2N7
Country: CANADA
GALSJ046 GALAVU - SAINT JOHN NB. HOTELS (CDN)
Address: FOR COMFORT INN-SAINT JOHN NB. Telephone 1: (905) 479-8999 Ext. 0000
7800 WOODBINE AVE., STE. 300 Telephone 2: (000) 000-0000 Ext. 0000
City: MARKHAM Fax Number: (905) 479-8949 Ext. 0000
Province: ON Postal Code:L3R-2N7
Country: CANADA
GALTA026 GALAVU - TORONTO AIRPORT HOTELS (CDN) BILL SHORT
Address: FOR QUALITY SUITE TORONTO AIR. Telephone 1: (905) 479-8999 Ext. 0000
7800 WOODBINE AVE. SUITE 300 Telephone 2: (000) 000-0000 Ext. 0000
City: MARKHAM Fax Number: (905) 479-8949 Ext. 0000
Province: ON Postal Code:L3R-2N7
Country: CANADA
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GALTB025 GALAVU - THUNDERBAY HOTELS (CDN) BILL SHORT
Address: FOR COMFORT INN THUNDERBAY Telephone 1: (905) 479-8999 Ext. 0000
7800 WOODBINE AVE. SUITE 300 Telephone 2: (000) 000-0000 Ext. 0000
City: MARKHAM Fax Number: (905) 479-8949 Ext. 0000
Province: ON Postal Code:L3R-2N7
Country: CANADA
GALTM040 GALAVU - TIMMINS HOTELS (CDN)
Address: FOR COMFORT INN-TIMMINS, ON. Telephone 1: (905) 479-8999 Ext. 0000
7500 WOODBINE AVE., STE. 300 Telephone 2: (000) 000-0000 Ext. 0000
City: MARKHAM Fax Number: (905) 479-8949 Ext. 0000
Province: ON Postal Code:L3R-2N7
Country: CANADA
GALTS024 GALAVU - THE SAULT HOTELS (CDN) BILL SHORT
Address: FOR COMFORT INN SAUL STE MARIE Telephone 1: (905) &79-8999 Ext. 0000
7800 WOODBINE AVE. SUITE 300 Telephone 2: (000) 000-0000 Ext. 0000
City: MARKHAM Fax Number: (905) 479-8949 Ext. 0000
Province: ON Postal Code:L3R-2N7
Country: CANADA
GALW1027 GALAVU WATERLOO INN HOTELS (CDN) BILL SHORT
Address: FOR WATERLOO INN Telephone 1: (905) 479-8999 Ext. 0000
7800 WOODBINE AVE. SUITE 300 Telephone 2: (000) 000-0000 Ext. 0000
City: MARKHAM Fax Number: (905) 479-8949 Ext. 0000
Province: ON Postal Code:L3R-2N7
Country: CANADA
GALW2028 GALAVU - WATERLOO(COMFORT INN) HOTELS (CDN) BILL SHORT
Address: FOR COMFORT INN WATERLOO Telephone 1: (905) 479-8999 Ext. 0000
7800 WOODBINE AVE. SUITE 300 Telephone 2: (000) 000-0000 Ext. 0000
City: MARKHAM Fax Number: (905) 479-8949 Ext. 0000
Province: ON Postal Code:L3R-2N7
Country: CANADA
GALWB029 GALAVU - WHITBY HOTELS (CDN) BILL SHORT
Address: FOR QUALITY SUITES WHITBY Telephone 1: (905) 479-5999 Ext. 0000
7800 WOODBINE AVE. SUITE 300 Telephone 2: (000) 000-0000 Ext. 0000
City: MARKHAM Fax Number: (905) 479-5949 Ext. 0000
Province: ON Postal Code:L3R-2N7
Country: CANADA
GALWN030 GALAVU - WINDSOR HOTELS (CDN) BILL SHORT
Address: FOR QUALITY SUITES WINDSOR Telephone 1: (905) 479-8999 Ext. 0000
7800 WOODBINE AVE. SUITE 300 Telephone 2: (000) 000-0000 Ext. 0000
City: MARKHAM Fax Number: (905) 479-8949 Ext. 0000
Province: ON Postal Code:L3R-2N7
Country: CANADA
GALWN041 GALAVU - WINDSOR2 HOTELS (CON)
Address: FOR COMFORT INN-WINDSOR2, ON. Telephone 1: (905) 479-5999 Ext. 0000
7800 WOODBINE AVE., STE. 300 Telephone 2: (000) 000-0000 Ext. 0000
City: MARKHAM Fax Number: (905) 479-8949 Ext. 0000
Province: ON Postal Code:L3R-2N7
Country: CANADA
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LEBL6061 LEBLANC SATELLITE HOTELS (CDN)
Address: DLR#6061 Telephone 1: (506) 832-4919 Ext. 0000
BOX 239 Telephone 2: (000) 000-0000 Ext. 0000
City: HAMPTON Fax Number: (506) 832-7151 Ext. 0000
Province: NB Postal Code:EOD1ZO
Country: CANADA
ALOH001 ALOHA HOTEL HOTELS (US) DOLAT PATEL
Address: 2835 E. ILLINOIS AVE. Telephone 1: (214) 374-1675 Ext. 0000
Telephone 2: (000) 000-0000 Ext. 0000
City: DALLAS Fax Number: (000) 000-0000 Ext. 0000
Province: TX Postal Code:75216
Country: USA
AMIT002 AMIT HOTEL HOTELS (US) AMIT MOTAWALA
Address: 2060 MISSION STREET Telephone 1: (415) 552-4341 Ext. 0000
Telephone 2: (415) 647-1571 Ext. 0000
City: SAN FRANCISCO Fax Number: (000) 000-0000 Ext. 0000
Province: CA Postal Code:94110
Country: USA
CALF003 CALF. BUSN. SYST. COMFORT INN HOTELS (US) SOROUSH
Address: FOR COMFORT INN FONTANA Telephone 1: (909) 948-8605 Ext. 0000 SALEHPOU
PO BOX 0520 Telephone 2: (000) 000-0000 Ext. 0000
City: RANCHO CUCAMONGA Fax Number: (000) 000-0000 Ext. 0000
Province: CA Postal Code:91729-0520
Country: USA
CALF004 CALF. BUSN. SYST. LANDMARK INN HOTELS (US) SOROUSH
Address: FOR LANDMARK INN Telephone 1: (909) 948-8605 Ext. 0000 SALEHPOU
PO BOX 0520 Telephone 2: (000) 000-0000 Ext. 0000
City: RANCHO CUCAMONGA Fax Number: (000) 000-0000 Ext. 0000
Province: CA Postal Code:91729-0520
Country: USA
CARR005 CARRIER MOTOR LODGE HOTELS (US) STEVEN MANNER
Address: 2660 BERLIN TURNPIKE Telephone 1: (203) 666-1421 Ext. 0000
Telephone 2: (000) 000-0000 Ext. 0000
City: NEWINGTON Fax Number: (000) 000-0000 Ext. 0000
Province: CT Postal Code:06111
Country: USA
DIAM006 DIAMOND INN MOTEL(R.A. SAT.) HOTELS (U) ALEX RIZZOTTI
Address: R.A. SAT FOR DIAMOND INN MOTEL Telephone 1: (713) 723-3199 Ext. 0000
1538 HITHERFIELD Telephone 2: (000) 000-0000 Ext. 0000
City: SUGARLAND Fax Number: (000) 000-0000 Ext. 0000
Province: TX Postal Code:77478
Country: USA
DIXI007 DIXIE MOTEL HOTELS (US) DANNY PATES
Address: 2760 CINCINNATI - DAYTON ROAD Telephone 1: (513) 423-3486 Ext. 0000
Telephone 2: (000) 000-0000 Ext. 0000
City: MIDDLETON Fax Number: (000) 000-0000 Ext. 0000
Province: OH Postal Code:45O44
Country: USA
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EXEC008 EXECUTIVE MOTOR INN HOTELS (US) JULIAN SEGURA
Address: FOR SEGURA EXECUTIVE MOTOR INN Telephone 1: (718) 335-0045 Ext. 0000
31-18 93RD STREET Telephone 2: (000) 000-0000 Ext. 0000
City: JACKSON HEIGHTS Fax Number: (000) 000-0000 Ext. 0000
Province: NY Postal Code:11369
Country: USA
FIFT009 FIFTH AVENUE MOTEL HOTELS (US) WARD KIPP
Address: 1695 BERLIN TURNPIKE Telephone 1: (860) 529-7119 Ext. 0000
Telephone 2: (000) 000-0000 Ext. 0000
City: WEATHERSHIELD Fax Number: (000) 000-0000 Ext. 0000
Province: CT Postal Code:06109
Country: USA
GALAT011 GALAVU - ATLANTA HOTELS (US) BILL SHORT
Address: FOR BRADBURY SUITES ATLANTA Telephone 1: (905) 479-8999 Ext. 0000
7800 WOODBINE AVE. SUITE 300 Telephone 2: (000) 000-0000 Ext. 0000
City: MARKHAM Fax Number: (905) 479-8949 Ext. 0000
Province: ON Postal Code:L3R-2N7
Country: CANADA
GALBL010 GALAVU BLOOMINGTON HOTELS (US) BILL SHORT
Address: FOR BRADBURY SUITE BLOOMINGTON Telephone 1: (905) 479-8999 Ext. 0000
7800 WOODBINE AVE. SUITE 300 Telephone 2: (000) 000-0000 Ext. 0000
City: MARKHAM Fax Number: (905) 479-8949 Ext. 0000
Province: ON Postal Code:L3R-2N7
Country: CANADA
GALL016 GALLERY HOLIDAY MOTEL HOTELS (US) TIM HUNT
Address: 2020 US ROUTE 35 NORTH Telephone 1: (609) 298-0197 Ext. 0000
Telephone 2: (609) 421-3498 Ext. 0000
City: SAYREVILLE Fax Number: (609) 499-4760 Ext. 0000
Province: NJ Postal Code:08879
Country: USA
GALNC012 GALAVU - NOCROSS HOTELS (US) BILL SHORT
Address: FOR BRADBURY SUITES NORCROSS Telephone 1: (905) 479-8999 Ext. 0000
7800 WOODBINE AVE. SUITE 300 Telephone 2: (000) 000-0000 Ext. 0000
City: MARKHAM Fax Number: (905) 479-8949 Ext. 0000
Province: ON Postal Code:L3R-2N7
Country: CANADA
GALRP013 GALAVU - RAPHINE HOTELS (US) BILL SHORT
Address: FOR DAYS INN RAPHINE Telephone 1: (905) 479-8999 Ext. 0000
7800 WOODBINE AVE. SUITE 300 Telephone 2: (000) 000-0000 Ext. 0000
City: MARKHAM Fax Number: (905) 479-8949 Ext. 0000
Province: ON Postal Code:L3R-2N7
Country: CANADA
GALSC014 GALAVU - SAN CLEMENTE HOTELS (US) BILL SHORT
Address: FOR CONTRYSIDE INN SAN CLEMENT Telephone 1: (905) 479-8999 Ext. 0000
7800 WOODBINE AVE. SUITE 300 Telephone 2: (000) 000-0000 Ext. 0000
City: MARKHAM Fax Number: (905) 479-8949 Ext. 0000
Province: ON Postal Code:L3R-2N7
Country: CANADA
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GALTK015 GALAVU - TUCKER HOTELS (US) BILL SHORT
Address: FOR BRADBURY SUITES TUCKER Telephone 1: (905) 479-8999 Ext. 0000
7800 WOODBINE AVE. SUITE 300 Telephone 2: (000) 000-0000 Ext. 0000
City: MARKHAM; Fax Number: (905) 479-8949 Ext. 0000
Province: ON Postal Code:L3R-2N7
Country: CANADA
GATE017 GATEWAY MOTEL HOTELS (US) NAVIN PATEL
Address: 1661 ATHENS HWY. Telephone 1: (706) 342-3015 Ext. 0000
Telephone 2: (000) 000-0000 Ext. 0000
City: MADISON Fax Number: (000) 000-0000 Ext. 0000
Province: GA Postal Code:30650
Country: USA
GEMI031 HOTEL GEMINIS HOTELS (US) HEIFNER
Address: FOR HOTEL GEMINIS Telephone 1: (573) 455-6163 Ext. 0000 COMMUNICATIONS
4451 I-70 DR. NW. Telephone 2: (000) 000-0000 Ext. 0000
City: COLUMBIA Fax Number: (575) 445-0757 Ext. 0000
Province: MO Postal Code:65202
Country: USA
KINGC030 MOTEL KING HOTELS (US) MAHEN PATEL
Address: 3618 LAURA KOPPE RD. Telephone 1: (715) 691-0300 Ext. 0000
Telephone 2: (000) 000-0000 Ext. 0000
City: HOUSTON Fax Number: (000) 000-0000 Ext. 0000
Province: TX Postal Code:77093
Country: USA
LIND018 LINDEN MOTOR INN HOTELS (US) BARRY PATEL
Address: 714 SOUTH CONDUIT BLVD. Telephone 1: (718) 647-7300 Ext. 0000
Telephone 2: (000) 000-0000 Ext. 0000
City: BROOKLYN Fax Number: (000) 000-0000 Ext. 0000
Province: NY Postal Code:11208
Country: USA
LOOP019 LOOP INN MOTEL HOTELS (US) RITCHIE BHOJANI
Address: 1 ROGER STREET Telephone 1: (908) 396-3500 Ext. 0000
Telephone 2: (000) 000-0000 Ext. 0000
City: AVENEL Fax Number: (000) 000-0000 Ext. 0000
Province: NJ Postal Code:07001
Country: USA
MUST020 MUSTANG INN (R.A. SAT.) HOTELS (US) ALEX RIZZOTTI
Address: R.A. SAT. MUSTANG INN Telephone 1: (713) 692-6377 Ext. 0000
1538 HITHERFIELD Telephone 2: (000) 000-0000 Ext. 0000
City: SUGARLAND Fax Number: (000) 000-0000 Ext. 0000
Province: TX Postal Code:77478
Country: USA
OASI021 OASIS MOTEL HOTELS (US) RAJ SHAH
Address: 818 WEST DIVISION STREET Telephone 1: (818) 274-1616 Ext. 0000
Telephone 2: (000) 000-0000 Ext. 0000
City: ARLINGTON Fax Number: (818) 548-6060 Ext. 0000
Province: TX Postal Code:76O12
Country: USA
<PAGE>
Date: 9/10/97 1043133 Ontario Inc. Page: 26
CUSTOMER ADDRESS LIST
<CAPTION>
Customer ID Name Class ID Contact Person
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
REDH022 REDHILL MOTEL HOTELS (US) MIKE SHAH
Address: 1240 HWY 501 BUSINESS Telephone 1: (803) 347-7700 Ext. 0000
Telephone 2: (000) 000-0000 Ext. 0000
City: CONWAY Fax Number: (000) 000-0000 Ext. 0000
Province: SC Postal Code:29526
Country: USA
REGE023 REGENCY HOTEL - DALLAS HOTELS (US) WENDY PALMS
Address: GOLD STAR SYS. REGENCY HOTEL Telephone 1: (214) 495-4075 Ext. 0000
PO BOX 452662 Telephone 2: (000) 000-0000 Ext. 0000
City: GARLAND Fax Number: (000) 000-0000 Ext. 0000
Province: TX Postal Code:75045
Country: USA
RELA024 RELAX INN FOREST HILL HOTELS (US) ROGER PATEL
Address: 4300 MANSFIELD HIGHWAY Telephone 1: (817) 536-5741 Ext. 0000
Telephone 2: (000) 000-0000 Ext. 0000
City: FOREST HILLS Fax Number: (000) 000-0000 Ext. 0000
Province: TX Postal Code:76119
Country: USA
S0NY025 SONY MOTEL (R.A. SAT.) HOTELS (US) ALEX RIZZOTTI
Address: R.A. SAT. SONY MOTEL Telephone 1: (713) 491-2915 Ext. 0000
1538 HITHERFIELD Telephone 2: (000) 000-0000 Ext. 0000
City: SUGARLAND Fax Number: (000) 000-0000 Ext. 0000
Province: TX Postal Code:77478
Country: USA
S0UT026 SOUTHERN ECONOMY INN HOTELS (US) ROBERT HOLMES
Address: PO BOX 1307 Telephone 1: (864) 632-9573 Ext. 0000
Telephone 2: (000) 000-0000 Ext. 0000
City: LAURENS Fax Number: (000) 000-0000 Ext. 0000
Province: SC Postal Code:29360
Country: USA
TROP027 TROPIC GARDEN MOTEL HOTELS (US) PETER ABRAHAM
Address: 2326 NW 3RD STREET Telephone 1: (305) 682-8070 Ext. 0000
Telephone 2: (305) 939-1163 Ext. 0000
City: MIAMI Fax Number: (305) 643-2404 Ext. 0000
Province: FL Postal Code:33125
Country: USA
TWEE029 TWEETY'S DIAMOND INN HOTELS (US) ALEX RIZZOTTI
Address: R.A. SATELLITE SYSTEM INC. Telephone 1: (713) 491-2915 Ext. 0000
1538 HITERFIELD Telephone 2: (000) 000-0000 Ext. 0000
City: SUGAR LAND Fax Number: (000) 000-0000 Ext. 0000
Province: TX Postal Code:77478
Country: USA
UPT0028 UPTOWN MOTEL HOTELS (US) MR. PATEL
Address: 311 SOUTH IRBY ST. Telephone 1: (803) 662-0306 Ext. 0000
Telephone 2: (000) 000-0000 Ext. 0000
City: FLORENCE Fax Number: (000) 000-0000 Ext. 0000
Province: SC Postal Code:29501
Country: USA
<PAGE>
Date: 9/10/97 1043133 Ontario Inc. Page: 27
CUSTOMER ADDRESS LIST
<CAPTION>
Customer ID Name Class ID Contact Person
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
BOG0001 TV CABLE BOGOTA INTER'N CABLE JUANITA
Address: CRA 11A # 94 76 Telephone 1: (571) 616-4093 Ext. 0000 QUINTANA
Telephone 2: (000) 000-0000 Ext. 0000
City: BOGOTA Fax Number: (000) 000-0000 Ext. 0000
Province: DC Postal Code:
Country: COLOMBIA
WWC011 WORLDWIDE COMM. 011# PHONE LINES(US) LARRY POLLACK
Address: 162 EAST 64TH STREET Telephone 1: (212) 688-3555 Ext. 0000
Telephone 2: (000) 000-0000 Ext. 0000
City: NEW YORK Fax Number: (212) 688-1217 Ext. 0000
Province: MY Postal Code:10021
Country: USA
WWC800 WORLDWIDE COMM. 800# PHONE LINES(US) LARRY POLLACK
Address: 162 EAST 64TH STREET Telephone 1: (212) 688-3555 Ext. 0000
Telephone 2: (000) 000-0000 Ext. 0000
City: NEW YORK Fax Number: (212) 688-1217 Ext. 0000
Province: MY Postal Code:10021
Country: USA
WWC900 WORLDWIDE COMM. 900# PHONE LINES(US) LARRY POLLACK
Address: 162 EAST 64TH STREET Telephone 1: (212) 688-3555 Ext. 0000
Telephone 2: (000) 000-0000 Ext. 0000
City: NEW YORK Fax Number: (212) 688-1217 Ext. 0000
Province: NY Postal Code:10021
Country: USA
CASH PRODUCTS CASH PRODUCTS PRODUCTS (US)
Address: Telephone 1: (000) 000-0000 Ext. 0000
Telephone 2: (000) 000-0000 Ext. 0000
City: Fax Number: (000) 000-0000 Ext. 0000
Province: Postal Code:
Country:
STARNET STARNET COMM. WEBSITE (CDn) WINSTON V.
Address: 425 CARRALL STREE Telephone 1: (604) 685-7619 Ext. 0000 BARTA
MEZZANINE LEVEL Telephone 2: (000) 000-0000 Ext. 0000
City: VANCOUVER Fax Number: (604) 684-0391 Ext. 0000
Province: BC Postal Code:V6B-6E3
Country: CANADA
EOL EROTICA ON-LINE WEBSITE (US) LARRY POLLACK
Address: 162 EAST 64TH STREET Telephone 1: (212) 688-3555 Ext. 0000
Telephone 2: (000) 000-0000 Ext. 0000
City: NEW YORK Fax Number: (212) 688-1217 Ext. 0000
Province: NY Postal Code:10021
Country: USA
</TABLE>
214 Address(es)
<PAGE>
SCHEDULE 7.9
INSURANCE POLICIES
The Subject Assets are insured under Zurich Insurance Company Policy Nos.
8422185 and 8422187. The Subject Assets are insured on a replacement value
basis.
<PAGE>
SCHEDULE 7.12
LITIGATION
1. On 24 July 1997, Dan Donovan, a former employee of 1043133 Ontario Inc.
(the "Company"), commenced a wrongful dismissal action against the Company
in which he seeks damages for negligent misrepresentation and punitive and
exemplary damages. The global amount claimed is $45,138.40. The action has
been defended on the basis that the plaintiff's employment was terminated
as part of a staff downsizing process. The plaintiff has taken no material
steps to further this litigation since filing his Statement of Claim.
Based upon information provided by the Company and contained in the
pleadings, legal counsel for the Company has opined that the exposure to
the Company on this claim may equal the value of one month's salary of the
plaintiff, plus interest and costs. [Ontario Court (General Division), File
No. 93005/95]
2. On 24 July 1997, Joanne Richer, a former employee of the Company, commenced
a wrongful dismissal action against the Company in which he seeks damages
for negligent misrepresentation and punitive and exemplary damages. The
global amount claimed is $44,769.28. The action has been defended on the
basis that the plaintiff's employment was terminated with payment being
made to the plaintiff in lieu of reasonable notice, which payment was in
excess of any obligations under the plaintiff's employment contract. The
plaintiff has taken no material steps to further this litigation since
filing her Statement of Claim. Based upon information provided by the
Company and contained in the pleadings legal counsel for the Company has
opined that the exposure to the Company on this claim may equal the value
of one month's salary of the plaintiff, plus interest and costs. [Ontario
Court (General Division), File No. 93006/95]
<PAGE>
SCHEDULE 7.14
APPROVALS AND CONSENTS
None.
<PAGE>
SCHEDULE 7.15
COMPETING INTERESTS
Stuart K. Duncan and Douglas J. Duncan, officers and directors of Seller:
1. are the beneficial owners of options to acquire up to 60% of the
issued and outstanding stock in the capital of Diorio Productions Inc.
("DPI"). DPI is a provider of certain audio/visual promotional
programming used in the Seller's Adult Movies Business;
2. are the beneficial owners of a minority interest in New Age
Conversions, L.P. ("New Age"). New Age performs video dubbing and
conversions services for Seller; and
3. are the beneficial owners of Fifth Dimension Capital Corporation ("5D
Capital"). 5D Capital leases to Seller the premises used for the
operation of Seller's Ottawa Call Center.
Douglas J. Duncan, an officer and director of Seller, is the beneficial owner of
841161 Ontario Limited ("841"). 841 leases to Seller the premises used for the
operation of Seller's Ottawa Uplink Facility.
<PAGE>
SCHEDULE 7.16
ADDRESSES OF SELLER
1. 1825 Woodward Drive
Ottawa, Ontario
K2C 0P9
2. 2500 Don Reid Drive
Ottawa, Ontario
K1H 8P5
<PAGE>
SCHEDULE 8.2(a)
BUYERS' DISCLOSURE STATEMENT
[attached]
<PAGE>
SCHEDULE 8.2(a)
BUYERS' DISCLOSURE STATEMENT
Buyers make no further disclosures concerning Buyers' Financial Statements
and the notes thereto, which were prepared in accordance with GAAP applied on a
consistent basis throughout the periods covered thereby and reaffirm that the
Financial Statements are true, accurate and complete, do not contain any untrue
statement of material fact or omit to state a material fact required by GAAP to
be stated therein or necessary in order to make the statements contained therein
not misleading, and fairly present the financial condition and the results of
operations of Buyers, on the bases therein stated, as of the respective dates
thereof, and for the respective periods covered thereby subject, in the case of
unaudited financial statements, to normal year-end audit adjustments and
accruals.
<PAGE>
SCHEDULE 11.9
CONSULTING AGREEMENT
Not applicable.
<PAGE>
SCHEDULE 11.12
NON-COMPETITION AGREEMENT
[attached]
<PAGE>
NONCOMPETITION AND CONFIDENTIALITY AGREEMENT
THIS NONCOMPETITION AND CONFIDENTIALITY AGREEMENT is entered into as of this
_____ day of__________ , 1997, by and among New Frontier Media, Inc., and
Colorado Satellite Broadcasting, Inc., a Colorado corporation, (collectively
"Buyers") and 1043133 Ontario Inc. ("Seller"),
Background
Buyers are acquiring certain assets from Seller for an Adult Movies
Business;
As a condition to Buyers' willingness to consummate the transactions
contemplated by the Purchase Agreement to which this Agreement is an exhibit,
Buyers have required that Seller and Seller agrees to the covenants not to
compete and the confidentiality agreements provided in this Agreement.
NOW, THEREFORE, in consideration of the mutual covenants and agreements set
forth herein and in the Purchase Agreement and foregoing premises, the parties
hereby covenant and agree as follows.
1. DEFINITIONS. The following terms shall have the following meanings:
(a) "Adult Movies Business" means any and all present or contemplated
satellite broadcast services on television or any other medium, including cable
television and the Internet, which broadcasts, replays, and/or otherwise
exploits feature length adult programming and all related promotional content
and other programming of a non-rated or X-rated nature and whose main theme
embodies nudity and/or sexually explicit material between consenting adults and
such other related business assets as are necessary for the operation thereof.
(b) "Purchase Agreement" shall mean the Asset Purchase Agreement between
New Frontier Media, Inc. and Colorado Satellite Broadcasting, Inc. as buyers
and 1248663 Ontario Inc., as seller, dated September 5, 1997.
2. NONCOMPETITION. During the period commencing on the Closing Date of the
Purchase Agreement, and ending on the expiration of five years following that
date, Seller and its officers or directors shall not, directly or indirectly,
manage, operate, join, advise, control, or be connected as an officer, director,
employee, partner, guarantor, adviser, or consultant in or beneficially own or
control, directly or indirectly, ten (10) percent or more of the voting, profit
sharing, or equity interests in, any corporation, partnership, joint venture, or
other business venture (an "Interest in a Business") which competes in the Adult
Movies Business of Buyers in any location throughout the world.
3. CONFIDENTIALITY. Seller shall keep confidential all of and shall not
disclose to any other party or provide any other party access to, the
confidential or proprietary
1
<PAGE>
information of the assets and services being acquired by Buyers pursuant to
the purchase Agreement not in the public domain, including but not limited
to, information relating to such matters as Buyers or the Adult Movies
Business' products, services, finances, methods of operation and competition,
research data, market reports, distribution methods, marketing plans and
strategies, operational requirements, personnel, customers and suppliers and
distributors, trade secrets, technical information, processes, systems,
procedures, know-how, improvements, price lists, projections and other
financial data, invoices, financial statements, or any other compilation of
information used in the Adult Movies Business which gives Buyers an
opportunity to obtain an advantage over its competitors who do not know or
use such information. This shall include both information acquired by Seller
before and after the date of this Agreement (collectively "Confidential
Information")
4. NONSOLICITATION OF EMPLOYEES. For the period commencing on the Closing
Date of the Purchase Agreement, and ending on the expiration date of five years
follow that date, Seller shall not, either on its own account or for any person,
firm, or company, solicit, interfere with, or endeavor to cause any officer,
employee or consultant of Buyers, who is employed or otherwise engaged to
provide services to buyers, to leave his or her employment or engagement with
Buyers or induce or attempt to induce any such person to terminate or breach any
employment, noncompetition, or confidentiality agreement such person may have
with Buyers.
5. NONSOLICITATION OF CUSTOMERS. For the duration of this Agreement, Seller
shall not solicit, induce, or attempt to induce any past or current customer or
distributor of Buyers to do business with Seller or any affiliate in regard to a
matter included in the Adult Movies Business or to cease doing business in whole
or in part with Buyers.
6. STAY OF TIME. In the event Seller violates any provision of this
Agreement, the running of the term of this agreement shall be automatically
tolled starting on the day of such violation and resuming on the date such
violation ceases.
7. EQUITABLE RELIEF. The parties acknowledge and agree that in the event
of any breach of this Agreement by Seller (i) Buyers' remedies at law are and
will be inadequate; (ii) such breach will substantially diminish the value of
the assets proprietary interest that are being acquired by Buyers through the
Purchase Agreement; and (iii) will cause irreparable injury in a short period
of time. In the event of a breach or threatened breach by Seller of the
provisions of this Agreement, the parties hereto agree that Buyers shall be
entitled to equitable relief to protect its interests therein, including, but
not limited to, preliminary and permanent injunctive relief. Such relief and
all other rights and remedies of Buyers provided herein shall be cumulative
with any other rights provided to it in the Purchase agreement or otherwise
provided to it under applicable law and nothing herein shall preclude Buyers
from pursuing any other remedies available to it for a breach or threatened
breach, including without limitation the recovery of damages for Seller.
2
<PAGE>
8. NOTICES. (a) In the event a party believes that there has been a
breach of this Agreement, it shall notify in writing the other party of the
belief and provide a brief statement of the basis for such belief, provided that
any failure to give such notice shall not act as a waiver of or otherwise affect
in any way any rights or remedies the non-breaching party may have or relieve
the other party from any duty or liability hereunder. In the event Seller
acquires or comes to own, control, directly or indirectly, an interest in a
business, whether voluntarily or involuntarily, which business may reasonably be
deemed to compete with the Adult Movies Business, Seller shall promptly notify
Buyers of such fact and identify the interest in the business and the nature of
such business's activities as they may relate to the Adult Movies Business.
(b) All notices or other communications which may be or are required to be
given under this Agreement shall be in writing and shall be deemed to have been
duly given on the date of service if served personally on the party to whom
notice is to be given, or on the third day after mailing if mailed to a party to
whom notice is to be given, by first class registered or certified, postage
prepaid, and properly addressed as follows:
Buyers: New Frontier Media, Inc.
1050 Walnut St. Suite 301
Boulder, CO 80302
Attn.: Mark H. Kreloff
with a copy to:Mark L. Driver, Esq.
The Law Office of Mark L. Driver, P.C.
3300 East First Ave., Suite 600
Denver, CO 80206
Seller: Douglas Duncan
2500 Don Reid Drive
Ontario, Canada
K1H8P5
Stewart Duncan
2500 Don Reid Drive
Ontario, Canada
K1H8P5
with a copy to:Jamie Wyllie, Esq.
Yegendorf, Brazeau, Sell, Prehogan & Wyllie
55 Metcalfe Street, Suite 750
Ontario, Canada
K1H6L5
3
<PAGE>
9. SUCCESSORS AND ASSIGNS. This Agreement shall be binding on and inure
to the benefit of the parties hereto and their permitted and respective heirs,
successors and assigns. No party shall have the right to assign this Agreement
without the prior written consent of the other party, except that Buyers shall
have the right to assign its rights hereunder to any successor in interest of
the Adult Movies Business whether by merger, consolidation, purchase of assets
or otherwise, or any other person or entity controlling or which at any time
controls or is under common control with either Buyer or any of their
subsidiaries or successors.
10. SEPARATE COVENANTS. This Agreement shall be deemed to consist of a
series of separate covenants. Seller expressly agrees that the character,
duration, and geographical scope of this Agreement are reasonable in light of
the circumstances as they exist on the date upon which this Agreement has been
executed. However, should a determination nonetheless be made by a court of
competent jurisdiction at a later date that the character, duration or
geographic scope of this Agreement is unreasonable in light of the circumstances
as the now or then exist, then it is the intention and agreement of the parties
that this Agreement shall be construed by the court in such a manner as to
impose only those restrictions on the conduct of Seller which is reasonable in
light of such circumstances and are necessary to assure Buyers of the intended
benefit of this Agreement. If any of the provision of this Agreement shall
otherwise contravene or be deemed invalid under the laws of any state or
jurisdiction, such contravention or invalidity shall not invalidate all of the
provisions of this Agreement but rather is shall be construed as not containing
the provisions or provisions contravening or invalid under the laws of the state
or jurisdiction, and the all other rights and obligations created hereby shall
be construed and enforced accordingly.
11. GOVERNING LAW. This Agreement shall be construed and enforced in
accordance with and governed by the laws of the State of Colorado, without
regard to principles of conflicts of laws and the parties irrevocable commit to
the jurisdiction and venue of the United States District Court for the District
of Colorado to resolve any dispute arising hereunder or related hereto.
12. AMENDMENTS AND WAIVERS. Any amendments or modifications to this
Agreement must be in writing signed by each party hereto or their successors or
assigns. No breach of any covenant, agreement, warranty, or representation shall
be deemed waived unless expressly waived in writing by the party who might
assert such breach. No waiver of any right hereunder shall operate as a waiver
of any other right or the same or similar right on another occasion.
13. ATTORNEYS' FEES. In the event that any action or proceeding is
commenced by any party hereto for the purpose of enforcing any provision of this
Agreement, the parties to such action or proceeding may receive as part of any
award, judgment, decision, or other resolution of such action or proceeding,
their costs, and reasonable attorneys' fees.
4
<PAGE>
14. ENTIRE AGREEMENT. This Agreement and the agreements referred to herein
contain the entire understanding of the parties and supersede all prior or
contemporaneous agreements and understandings.
15. COUNTERPARTS. This Agreement may be executed by the parties in separate
counterparts, each of which when so executed and delivered shall be an original,
but all such counterparts shall together constitute but one and the same
instrument.
In Witness Whereof, the parties hereto have executed this Agreement on the
date first above written.
Buyers: New Frontier Media, Inc.
By:
-------------------------------
Its:
------------------------------
Colorado Satellite Broadcasting, Inc.
By:
--------------------------------
Its:
-------------------------------
SELLER:
1043133 Ontario Inc.
By:
--------------------------------
Its:
------------------------------
5
<PAGE>
ASSET PURCHASE AGREEMENT
This Asset Purchase Agreement (the "Agreement") is made to be effective
September 5, 1997 (the "Effective Date"), among NEW FRONTIER MEDIA, INC., a
Colorado corporation, COLORADO SATELLITE BROADCASTING, INC. ("Buyer"), a
wholly owned subsidiary of New Frontier Media, Inc., and 1248663 ONTARIO
INC., an Ontario corporation ("Seller"). New Frontier Media, Inc. and Buyer
are collectively referred to in this Agreement as "Buyers."
This Agreement sets forth the terms and conditions upon which Buyers agree
to purchase from Seller, and Seller agrees to sell to Buyers, certain properties
and assets of Seller ("Subject Assets").
NOW THEREFORE, in consideration of the mutual covenants, agreements,
representations and warranties contained in this Agreement, the parties agree as
follows:
DEFINITIONS
"Newco" means 1248663 Ontario Inc., an Ontario corporation.
"Adult Movies Business" means any and all of Buyer's present or contemplated
satellite broadcast services on television or any other medium, including cable
television and the Internet, which broadcasts, replays, and/or otherwise
exploits feature length adult programming and all related promotional content
and other programming of a non-rated or X-rated nature and whose main theme
embodies nudity and/or sexually explicit material between consenting adults and
such other related business assets as are necessary for the operation thereof.
"adverse or adversely", when used alone or in conjunction with other terms
(including without limitation "affect," "change" and "effect"), means any event
discovered by either party after the date hereof which is reasonably likely in
the respective business judgment of either Buyers or Seller, as the case may be,
to be expected to (a) adversely affect the validity or enforceability of this
Agreement, or (b) adversely affect the business, operation, management or
properties of Seller taken as a whole or Buyers, or (c) impair Seller or Buyers,
or (d) adversely affect the respective aggregate rights and remedies of either
party under this Agreement.
"Agreement" means this Agreement as originally in effect, including unless the
context otherwise specifically requires, all schedules and all exhibits hereto,
and as any of the same may from time to time be supplemented, amended, modified
or restated in the manner herein or therein provided.
"Applicable Law" shall mean any Law of any Authority, whether domestic or
foreign, including without limitation all federal and state securities and
environmental laws, to which a person or entity is subject or by which it or any
of its business or operations is subject or any of its property or assets is
bound.
1
<PAGE>
"Authority" means any governmental or quasi-governmental authority, whether
administrative, executive, judicial, legislative or other, or any combination
thereof, including without limitation, any federal, provincial, state,
territorial, county, municipal or other government or governmental or
quasi-governmental agency, arbitrator, authority, board, body, branch, bureau,
central bank or comparable agency, or Entity, commission, corporation, court,
department, instrumentality, master, mediator, panel, referee, system, or other
political unit or subdivision or other Entity of any of the foregoing whether
domestic or foreign.
"Buyers' Disclosure Schedule" means the schedule attached as SCHEDULE 8.2(a).
"Closing" means the closing of the transactions contemplated herein and "Closing
Date" means the date on which the closing takes place.
"Collateral Agreements" means agreements and other documents executed or
required to be executed pursuant to the terms of this Agreement.
"Entity" means any corporation, firm, unincorporated organization, association,
partnership, limited liability company, trust (inter vivos or testamentary),
estate of a deceased, individual, business trust, joint stock company, joint
venture or other organization, entity or business, whether acting in an
individual, fiduciary or other capacity, or any Authority.
"Governmental Authorizations" means all approvals, concessions, consents,
franchises, licenses, permits, and other authorizations of all applicable
Authorities.
"material, materially or materiality", unless specifically stated otherwise,
shall be determined without regard to the fact that various provisions of this
Agreement set forth specific dollar amounts.
"New Frontier" means New Frontier Media, Inc.
"Private Authorizations" means all approvals, concessions, consents, franchises,
licenses, permits, and other authorizations of all persons (other that
Authorities) including without limitation those with respect to copyrights,
computer software programs, patents, service marks, trademarks, trade names,
technology and know-how.
"Subject Assets" means:
(a) that equipment (including without limitation essential spares and
replacement parts) and software technology, furniture, machinery,
appliances, and other tangible personal property and technology used
in and historically allocated to the operation of a satellite
operation uplink facility as specifically set forth in SCHEDULE 1(a),
"the Uplink Facilities Equipment List", and which shall be in
operating order;
(b) all hardware, equipment, software license assignments, furniture,
machinery, appliances and other tangible personal property as set
forth in SCHEDULE 1(b), "The Call Center Equipment List"; and
2
<PAGE>
(c) any tort or insurance proceeds arising out of any damages or
destruction of any of the Subject Assets herein between the date of
this Agreement and the Closing Date to the extent required to repair
or replace any subject asset being acquired hereunder.
"Transactions" means the transactions contemplated by this Agreement and all
Collateral Agreements.
ARTICLE 1. TRANSFER OF ASSETS
Subject to the terms and conditions set forth in this Agreement, Seller agrees
to sell, convey, transfer, assign and deliver to Buyer, and Buyers agrees to
purchase from Seller at the Closing described in ARTICLE 3, all of the Subject
Assets, whether tangible, intangible, real, personal or mixed, and wherever
located, including those assets set forth in the lists of SCHEDULES 1(a) and (b)
and as further described in this ARTICLE 1.
1.1 UPLINK FACILITY. Pursuant to SCHEDULE 1.1, the Uplink Management Services
Agreement, Newco agrees to operate, maintain, manage, and sustain an uplink and
playback facility (at 2500 Don Reid Drive, Ottawa, Ontario) capable of providing
continual uninterrupted services on behalf of Buyer for its Adult Movies
Business. The term of the Uplink Management Services Agreement shall be three
(3) years with the right at Buyers' option to successive one year renewals on
terms to be negotiated. Newco may at its option acquire a building suitable for
relocating the current satellite broadcast uplink facility in order to fulfill
its obligations under the Uplink Management Services Agreement. In the event of
such move, Newco shall be responsible for all uplink moving/installations costs,
to the New Uplink Facility. Buyers shall be responsible for the reasonable costs
associated with the necessary tenant finish at the New Uplink Facility. Newco
shall ensure that Buyers have the right to use and operate the existing Uplink
Facility under the terms of the Uplink Management Services Agreement until the
New Uplink Facility is ready for use.
1.2 CALL CENTER FACILITY. Pursuant to SCHEDULE 1.2, the Call Center Interim
Services Agreement, Newco agrees to receive and process subscriber calls on
behalf of Buyers from a call center to be located at 1825 Woodward Drive,
Ottawa, Ontario using the call center assets included in the Subject Assets for
a period of up to nine (9) months from the Closing, at a flat, prepaid monthly
rental of US$275,000.00 and on other terms to be negotiated in a Call Center
Lease Agreement. Prior to the end of the nine (9) month period, Buyers shall
have the right to unilaterally terminate such agreement upon sixty (60) days
prior written notice. Pursuant to the Call Center Interim Services Agreement,
Newco agrees to deposit all amounts collected thereto into a merchant account
and a checking account to be established in the name of Buyer.
1.3 INVESTMENT CANADA ACT. The parties agree that the Transactions do not
require notice, review, approval or allowance under the INVESTMENT CANADA ACT
and it is not a condition precedent to the Closing of the Transactions that any
notice be given or approval, allowance or consent be obtained in respect
thereof. Notwithstanding anything to the contrary in this
3
<PAGE>
Agreement, no representation, warranty or covenant given by any party under or
pursuant to this Agreement is intended or shall be deemed to include a
representation, warranty or covenant related to the INVESTMENT CANADA ACT.
ARTICLE 2. PURCHASE PRICE
2.1 PAYMENT OF PURCHASE PRICE. In consideration for the transfer and assignment
of the Subject Assets and in consideration of the representations, warranties
and covenants of Seller set forth herein, Buyers on the conditions set forth
herein:
(a) shall pay subject to ARTICLE 5, an earnest money deposit in the amount
of US$10,000.00;
(b) shall deliver to Seller at the Closing (as hereinafter defined)
US$660,172.00 plus taxes as provided in ARTICLE 6, payable in cash as
more fully described in SECTION 3.2;
(c) shall deliver to Seller at the Closing a promissory note in the amount
of US$185.711.00 executed by Buyer and payable to Seller in the form
substantially similar to that set forth in SCHEDULE 2.1(c). Buyer's
performance under the promissory note shall be guaranteed by New
Frontier. Additionally, in order to secure Buyer's obligations
pursuant to the promissory note, at the Closing Buyer shall execute
and deliver to Seller a security agreement in the form attached as
Exhibit A to SCHEDULE 2.1(c) pursuant to which Buyer shall grant to
Seller a security interest/lien in all of its furniture, fixtures,
equipment and inventory, ranking first in priority over all other
security interests/lienholders, except the interests of Buyers' chief
financial institutions which shall have a first priority up to an
amount of US $2,000,000.00 and the interests another secured creditor
approved by Seller which shall have a second priority up to an amount
of US$725,510; and
(d) shall assume and discharge, and shall indemnify Seller against,
liabilities and obligations of Seller under the leases, contracts or
other agreements, if any, specified on SCHEDULE 4 but only to the
extent that such liabilities or obligations accrue on or after the
Closing Date.
2.2 ALLOCATION OF THE PURCHASE PRICE. The parties agree that the Purchase Price
(defined as the sum of the amounts specified in SECTIONS 2.1(b) and (c) above
shall be allocated as set forth in SCHEDULE 2.2 and that such allocation will be
used by the parties in reporting the transaction contemplated by this Agreement
for tax purposes.
2.3 ELECTIONS. Seller and Buyers will on or before the Closing Date jointly
execute an election, in prescribed form and containing the prescribed
information, to have subsection 167(1.1) of the EXCISE TAX ACT (Canada) apply
to the sale and purchase of the Subject Assets hereunder so that no tax is
payable in respect of under Part IX of the EXCISE TAX ACT (Canada). The
Buyers will file such election with the Minister of National Revenue within
the
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time prescribed by the Excise Tax Act (Canada).
ARTICLE 3. THE CLOSING
The closing of the purchase and sale of the Subject Assets by Seller to Buyers
(the "Closing") shall take place at 2500 Don Reid Drive, Ottawa, Ontario,
sixty-four (64) days after the date of this Agreement or at such other place
and/or time as the parties may agree in writing (the "Closing Date"). In the
event that the conditions specified in this Agreement have not be fulfilled by
such date, either Seller or Buyers may extend the Closing Date for a period or
periods not exceeding an aggregate of thirty (30) days by written notice to the
other parties.
3.1. SELLER'S OBLIGATIONS AT CLOSING.
(a) At the Closing Seller shall deliver or cause to be delivered to Buyer:
(i) assignment and assumption agreements for personal property
leases, all contracts and agreements of Seller to be assumed in
connection herewith, in form and substance reasonably
satisfactory to Buyers' counsel, and accompanied by all consents
required by this Agreement and the personal property leases,
contracts and agreements being assigned;
(ii) instruments of assignment and transfer (including a bill of sale)
of all the Subject Assets in form and substance reasonably
satisfactory to Buyers' counsel; and
(iii) such other documents as shall be reasonably requested by Buyers
or Buyers' counsel (for example, a BULK SALES ACT affidavit).
(b) Simultaneously, with the consummation of the transfer, Seller, through
its officers, agents and employees, shall put Buyer into full
possession and enjoyment of all the Subject Assets to be sold,
conveyed, transferred, assigned and delivered by this Agreement.
(c) Seller, at any time before or after the Closing Date shall execute,
acknowledge, and deliver any further deeds, assignments, conveyances
and other assurances, documents and instruments of transfer,
reasonably requested by Buyers and shall take any other action
consistent with the terms of this Agreement that may be reasonably
requested by Buyers for the purpose of assigning, transferring,
granting, conveying and confirming to Buyers, or reducing to
possession, any or all property and assets to be conveyed or
transferred by this Agreement. If requested by Buyers, Seller further
agrees to prosecute or otherwise enforce in their own names for the
benefit of Buyers any claims, rights, or benefits that are transferred
to Buyers by this Agreement and that require prosecution or
enforcement in any of Seller's names. Any prosecution or enforcement
of claims, rights, or benefits under this Section shall be solely at
Buyer's expense, unless the
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prosecution or enforcement is made necessary by a breach of this
Agreement by Seller.
3.2. BUYER'S OBLIGATIONS AT CLOSING. At the Closing Buyers shall deliver to
Seller against delivery of the items specified in SECTION 2.1, a certified bank
or cashier's check, or a wire transfer of immediately available funds, in the
amount of US$660,172.00 plus taxes pursuant to ARTICLE 6 payable to Seller and
the promissory note payable to Seller in the amount of US$185,711.00. Seller
shall notify Buyers within five (5) days of the Closing Date whether the amount
payable at Closing shall be delivered by certified bank or cashier's check, or
by wire transfer. At closing, Buyers shall deliver to Seller such documents
that shall be reasonably requested by Seller or Seller's counsel.
ARTICLE 4. ASSUMPTION OF LIABILITIES
Buyers are not assuming any debt, liability or obligation of Seller, whether
known or unknown, fixed or contingent, except as herein specifically otherwise
provided. Seller agrees to indemnify and hold Buyers harmless against all debts,
claims, liabilities and obligations of Seller not expressly assumed by Buyers
hereunder, and to pay any and all attorneys' fees and legal costs incurred by
Buyers, its successors and assigns in connection therewith. Buyers shall have
the benefit of and shall perform and assume all leases, contracts and
agreements, if any, specifically listed on SCHEDULE 4, in accordance with the
terms and conditions thereof, except to the extent modifications are
specifically set forth in SCHEDULE 4 and except to the extent set forth in the
assignments or assignment and assumption agreements for such leases, contract
and agreements.
ARTICLE 5. RETURN OF DEPOSIT
Upon execution of this Agreement, Buyers shall pay to Seller an earnest money
deposit of US$2,500. Upon parties' final acceptance of the form and content of
the schedules to this Agreement, Buyers shall pay to Seller a further earnest
money deposit of US$7,500. Such deposits shall be returned to Buyers if the
Transactions are not closed due to: (a) the failure of any conditions set forth
in ARTICLE 11 to be met at or before the Closing as a result of any act or
omission by Seller; or (b) the occurrence of any default by Seller described in
SECTION 17.3. If the Transactions are not closed for any other reason, the
deposit shall be retained by Seller. Upon Closing, the deposit shall be applied
towards the payment due to Seller under SECTION 2.1(b).
ARTICLE 6. TAXES
Buyers shall pay all sales, use and transfer taxes arising out of the transfer
of the Subject Assets, including any foreign transfer taxes and shall pay its
portion, prorated as of the Closing Date, of state, provincial, and local real
and personal property taxes of the business being sold hereunder. Buyers shall
not be responsible for any business, occupation, withholding or similar tax, or
for any income, sales, use, value-added or similar taxes related to any period,
or transaction
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occurring during any period, before the Closing Date.
ARTICLE 7. REPRESENTATIONS AND WARRANTIES OF SELLER
Seller hereby represents and warrants to Buyers that the following facts and
circumstances are and will be at all times up to the Closing Date, except as
contemplated hereby, true and correct, and hereby acknowledge that such facts
and circumstances constitute the basis upon which Buyers are induced to enter
into and perform this Agreement. Each warranty set forth in this ARTICLE 7 shall
survive eighteen (18) months past the Closing Date and any investigation made by
or on behalf of Buyers. Buyers shall conduct their own due diligence
investigation and that investigation shall include an investigation into whether
Seller are or have operated in accordance with the warranties and
representations of Seller. If prior to the closing date, Buyers believe they
have discovered any breach of the representations and warranties of Seller, they
shall forthwith advise Seller in writing of such breach. If Seller does not or
cannot cure such breach prior to the Closing Date, Buyers may elect to close (in
which case the breach shall be deemed non-material) or not close provided such
breach is material. If Buyers fail to give such notice then the breach will be
deemed non-material.
7.1 ORGANIZATION, GOOD STANDING AND QUALIFICATION. Newco is a corporation
organized, validly existing, and in good standing under the laws of Ontario.
Seller has all necessary corporate powers to own its properties and to carry on
its business as now owned and operated by it, and is duly qualified to transact
any business and is in good standing in all jurisdictions in which the nature of
its business or its properties makes such qualification necessary.
7.2 ABSENCE OF SPECIFIED CHANGES. Since March 31, 1997, there has not been any:
(a) material and adverse destruction, damage to, or loss of any of the
Subject Assets (whether or not covered by insurance);
(b) labor trouble or other event or condition of any character materially
and adversely effecting the financial condition, business, assets or
prospects of Seller;
(c) revaluation by Seller of any of the Subject Assets in a manner that
would be materially adverse to Buyers;
(d) execution, creation, amendment, nonrenewal or termination of any
material contract, agreement or license to which Seller is a party,
except in the ordinary course of business or except as can be
terminated prior to the Closing Date without materially adversely
effecting the Subject Assets;
(e) creation or assumption by Seller of any mortgage, pledge, security
interest or lien or other encumbrance on any of the Subject Assets,
except as set forth in SCHEDULE 7.2(e);
(f) other event or condition of any character of which Seller has
knowledge that has
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or might reasonably have a material adverse effect on the Subject
Assets, except as set forth in SCHEDULE 7.2(f); or
(g) agreement by Seller to do any of the things described in the preceding
clauses (a) through (f).
7.3 SUBJECT ASSETS SUFFICIENT FOR OPERATIONS. The Subject Assets constitute
all assets (other than premises) necessary for the continued uninterrupted
operation by Seller of a call center and uplink facility for the Buyers'
Adult Movies Business. Except as stated in SCHEDULE 4, none of the Subject
Assets are held under any lease, security agreement, conditional sales,
contract, or other title of retention or security agreement, or are in the
possession of anyone other than Seller.
7.4 TRADE NAMES, TRADEMARKS AND COPYRIGHTS. Seller does not own any
trademark, service mark trade name, trade secret, or brand name. To the
actual knowledge of Seller, no person has made any outstanding claims against
Seller in respect of any trademark, trademark registration or application,
service mark, trade name, copyright, copyright registration or application or
brand name, the use of which is necessary or contemplated in connection with
the performance of any contract to which Seller is a party.
7.5 TITLE TO ASSETS. To the best of Seller's knowledge, Seller shall at Closing
have good and marketable title to all the Subject Assets free and clear of
mortgages, liens, pledges, charges, encumbrances, equities, claims, easements,
rights of way, covenants, conditions, or restrictions, except for (i) the lien
of current taxes not yet due and payable; and (ii) possible minor matters that,
in the aggregate, are not substantial in amount and do not materially detract
from or interfere with the present or intended use of any of these assets. The
parties acknowledge that Seller will not own all of the Subject Assets on the
date this Agreement is executed, but will be acquiring Subject Assets prior to
Closing and no representation, warranty, condition or covenant contained herein
is intended to state otherwise. All the Subject Assets are in good operating
condition and repair, ordinary wear and tear excepted.
7.6 INSURANCE POLICIES. SCHEDULE 7.6 to this Agreement is a description of all
insurance policies held by Seller concerning the Subject Assets. All these
policies are in the respective principal amounts set forth in SCHEDULE 7.6.
Seller has maintained and now maintains (a) insurance on all the Subject Assets
of a type customarily insured, covering property damage by fire or other
casualty, and (b) adequate insurance protection against all liabilities, claims,
and risks against which it is customary to insure. Such insurance coverage will
be cancelled as of Closing.
7.7 OTHER CONTRACTS. Copies of all contracts which will be assigned to or
assumed by Buyers under this Agreement are attached as part of SCHEDULE 4.
Except as set forth in SCHEDULE 4 and to the best of Seller's knowledge, the
Subject Assets will not at Closing or thereafter (as a result of actions or
conduct of Seller) be bound or potentially bound by, any distributor's or
manufacturer's representative or agency agreement, any output or requirements
agreement, any agreement not entered into in the ordinary course of business,
any indenture, mortgage, deed of trust, lease or any other agreement that is
unusual in nature, duration or amount (including, without limitation, any
agreement requiring the performance by Seller of any obligation for a period of
time extending beyond one year from Closing Date or calling for consideration of
more
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than US$ 10,000.00 or requiring purchases at prices in excess of, or sales at
prices lower than, prevailing market prices). To the best of Seller's knowledge,
there is no default or event that with notice or lapse of time, or both, would
constitute a default by any party to any of the agreements listed in SCHEDULE 4
and such contracts remain in full force and effect. Seller has not received
notice that any party to any of the agreements listed in SCHEDULE 4 intends to
cancel or terminate any of these agreements or to exercise or not exercise any
options under any of these agreements. Seller is not a party to, nor is Seller
or the Subject Assets bound by, any agreement that is materially adverse to the
business, assets, property, operating results, prospects or financial condition
of Seller.
7.8 COMPLIANCE WITH LAWS. Seller has received no notice of any violation of any
statutes, laws or regulations (including, without limitation any applicable
obscenity, environmental, health, building, zoning, or other law, ordinance or
regulations) from any Authority the violation of which may materially adversely
affect its ability to fulfill its obligations under this Agreement. Seller is
not in violation of or default under any provisions of their Articles of
Incorporation or Bylaws, both as amended. The execution, delivery and
performance of the Agreement and the consummation of the Transactions will not
result in any such violation or default, or be in conflict with or constitute,
with or without the passage of time or the giving of notice or both, a default
under Seller's Articles of Incorporation or Bylaws, both as amended.
7.9 LITIGATION. There is no suit, action, arbitration or legal, administrative
or other proceeding, or governmental investigation ("Actions") pending or, to
the best knowledge of Seller, threatened, against or affecting Seller, or any of
its business, assets or financial condition, or against any officer, director or
employee of Seller in connection with such officer's, director's or employee's
relationship with or actions taken on behalf of Seller. Seller is not a party
to or subject to the provisions of any order, writ, injunction, judgment or
decree of any court or government agency or instrumentality, and there are no
actions or claims by Seller currently pending or, to which Seller intends to
initiate. To the best knowledge of Seller, there has not occurred any event nor
does there exist any condition on the basis of which any litigation, proceeding
or investigation is likely to be instituted by or against Seller. Seller is not
in default with respect to any order, writ, injunction or decree of any federal,
state, local or foreign court, department, agency or instrumentality.
7.10 AGREEMENT WILL NOT CAUSE BREACH OR VIOLATION. Neither the entry into this
Agreement nor the consummation of the transactions contemplated hereby will
result in or constitute any of the following events where the occurrence of such
event would render Seller materially unable to comply with this Agreement: (a) a
default or an event that, with notice or lapse of time or both, would be a
default, breach or violation of any lease, license, promissory note, conditional
sales contract, commitment, indenture, mortgage, deed of trust or other
agreement, instrument or arrangement; (b) an event that would permit any party
to terminate any agreement or to accelerate the maturity of any indebtedness or
other obligation; (c) the creation or imposition of any lien, charge or
encumbrance on any of the Subject Assets; or (d) the violation of any law,
regulation, ordinance, judgment, order or decree.
7.11 AUTHORITY AND CONSENTS. Except as set forth in SCHEDULE 7.11, Seller has
the right, power, legal capacity and authority to enter into, and perform their
obligations under this Agreement,
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and no approvals or consents of any persons other than the shareholders of
Seller are necessary in connection with it. The execution and delivery of this
Agreement and the consummation of this transaction by Seller has been, or prior
to the Closing will have been, duly authorized by all necessary corporate action
of Seller (including any necessary action by Seller's security holders). This
Agreement constitutes a legal, valid and binding obligation of Seller
enforceable in accordance with its terms except as limited by bankruptcy and
insolvency laws and by other laws affecting the rights of creditors generally.
7.12 INTEREST IN CUSTOMERS, SUPPLIERS AND COMPETITORS. Except as set forth in
SCHEDULE 7.12 or as contemplated by a Collateral Agreement, neither Seller nor
any officer or director or shareholder of Seller, nor any spouse or child of any
of them has any direct or indirect interest in any competitor, supplier or
customer of Seller or in any person with whom Seller is doing business.
7.13 INFORMATION FURNISHED TO BUYER FOR BULK TRANSFER NOTICE. For the purposes
of furnishing notices under the BULK SALES ACT (Ontario), SCHEDULE 7.13 is a
true, complete and correct list of all names and business addresses used by
Newco.
7.14. DOCUMENTS DELIVERED. Each copy or original of any agreement, contract or
other instrument which is identified in any exhibit or schedule delivered by
Seller or its counsel to Buyers (or their counsel or representatives), whether
before or after the execution hereof, is in fact what it is purported to be by
Seller and has not been amended, canceled or otherwise modified.
7.15 FULL DISCLOSURE. None of the representations and warranties made by Seller
or made in any letter, certificate or memorandum furnished or to be furnished by
Seller or on its behalf, contains or will contain any untrue statement of a
material fact, or omits any material fact the omission of which would make the
statements made misleading and materially adverse to Buyers.
7.16 SUBJECT ASSETS ARE SUFFICIENT TO OPERATE BUSINESS.
(a) The Buyers are acquiring the ownership, possession or use under this
Agreement of all or substantially all of the property and assets that
can reasonably be regarded as necessary for Buyer to be capable of
operating an uplink facility and call center facility as contemplated
herein (excluding premises for such facilities) as a business within
the meaning of section 167 of the EXCISE TAX ACT (Canada).
(b) Newco will be at Closing registered under Part IX of the EXCISE TAX
ACT (Canada).
7.17 SOLVENCY. As of the execution and delivery of this Agreement, and, after
giving effect to the consummation of the Transactions, Seller will be solvent.
7.18 TAX MATTERS. Seller shall continue to be responsible for and will discharge
all obligations and liabilities in respect to taxes pertaining to the Subject
Assets which arise or accrue for all periods ending on or before the Closing
Date (but excluding the taxes referred to in ARTICLE 6). Seller will indemnify
and hold harmless Buyers against any and all claims and demands incurred
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by Buyers that directly or indirectly arise out of such obligations or
liabilities. Without limiting the foregoing, Seller will be responsible for all
federal, state, provincial, local, foreign and other net income, gross income,
gross receipts, alternative or add on minimum, profits, sales, use, occupation,
value-added, ad valorem, transfer, franchise, license, lease, service use,
withholding, payroll, employment, excise, severance, premium, property, windfall
profits, customs, duties, or other taxes, fees assessments, or charges of any
kind whatsoever, together with any interest, penalties or additions to tax
imposed with respect thereto, or any obligations to any agreements or
arrangements with respect to and taxes described above.
7.19 EMPLOYMENT MATTERS. Buyer shall be under no obligation to offer employment
to any of Seller's employees ("affected employees"), except as otherwise stated
in this Agreement. Buyer may, however, choose to retain the services of or to
offer employment to one or more of the affected employees, should it wish to do
so, subject to SECTION 13.4.
Seller will continue to be responsible for and will discharge all obligations
and liabilities in respect of the affected employees which arise or accrue prior
to, on or after the Closing Date. Seller will indemnify and save harmless Buyers
against any and all claims and demands incurred by Buyers that directly or
indirectly pertain to or arise out of such obligations or liabilities. Without
limiting the forgoing, Seller will be responsible for and will bear and
discharge any and all obligations and liabilities for wages, severance pay,
termination pay, notice of termination of employment or pay in lieu of such
notice, damages for wrongful discharge or other employee benefits or claims,
including vacation pay, which may arise in connection with the employment or
dismissal of any of the affected employees, including any interest, award,
judgment or penalty relating thereto and any costs or expenses incurred by
Buyers in defending against any claim or demand relating to such obligation or
liabilities.
ARTICLE 8. BUYERS' REPRESENTATIONS AND WARRANTIES
Buyers represents, warrants, and covenants to, and agrees with Seller as
follows:
8.1 ORGANIZATION AND BUSINESS: POWER AND AUTHORITY: EFFECT OF TRANSACTION.
(a) Each Buyer (i) is a corporation duly organized, validly existing and
in good standing under the laws of its jurisdiction of incorporation;
(ii) has all requisite power and authority to own or hold under lease
its properties and to conduct its business as now conducted and as
presently proposed to be conducted, and has in full force and effect
all Governmental Authorizations and Private Authorizations and has
made all governmental filings, to the extent required for such
ownership and lease of its property and conduct of its business and is
in good standing in such jurisdictions in which the failure to be in
good standing would have a material adverse effect upon its property
or the nature of its business or operations.
(b) Each Buyer has all requisite power and authority and has in full force
and effect all Governmental Authorizations and Private Authorizations
in order to enable it
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to execute and deliver, and to perform its obligations under, this
Agreement and each Collateral Agreement executed or required to be
executed pursuant hereto or thereto or to consummate the Transactions
and the Collateral Agreements; and the execution, delivery and
performance of this Agreement and each Collateral Agreement has been
duly authorized by all requisite corporate or other action. No further
action or approval on the part of Buyers' stockholders is required in
connection with the execution, delivery and performance of this
Agreement or each Collateral Agreement or the consummation of the
Transactions. This Agreement has been duly executed and delivered by
each Buyer and constitutes, and each Collateral Agreement executed or
required to be executed pursuant hereto or thereto or to consummate
the Transactions when executed and delivered by Buyers will
constitute, legal, valid and binding obligations of Buyers enforceable
in accordance with their respective terms.
(c) Neither the execution and delivery of this Agreement or any Collateral
Agreement, nor the consummation of the Transactions, nor compliance
with the terms, conditions and provisions hereof or thereof by Buyers
will conflict with, or result in a material breach or violation of; or
constitute a material default under, any Applicable Law on the part of
Buyers or will conflict with, or result in a material breach or
violation of, or constitute a material default under, or permit the
acceleration of any obligation or liability in, or but for any
requirement of giving notice or passage of time or both would
constitute such a conflict with, material breach or violation of, or
material default under, or permit any such acceleration in, any
contractual obligation of Buyers.
8.2 FINANCIAL AND OTHER INFORMATION
(a) Buyers have heretofore furnished to Seller copies of the consolidated
financial statements of New Frontier and all of its subsidiaries
("Buyers' Financial Statements"). Buyers' Financial Statements,
including in each case the notes thereto, have been prepared in
accordance with GAAP applied on a consistent basis throughout the
periods covered thereby, except as otherwise noted therein or as set
forth in SCHEDULE 8.2(a) (Buyers' Disclosure Schedule), and are true,
accurate and complete, do not contain any untrue statement of material
fact or omit to state a material fact required by GAAP to be stated
therein or necessary in order to make the statements contained therein
not misleading, and fairly present the financial condition and the
results of operations of Buyers, on the bases therein stated, as of
the respective dates thereof; and for the respective periods covered
thereby subject, in the case of unaudited financial statements, to
normal year-end audit adjustments and accruals.
(b) Neither Buyers' Disclosure Schedule, Buyers' Financial Statements,
this Agreement, any Collateral Agreement, or any data, information or
statement furnished or to be furnished by or on behalf of Buyers
pursuant to this Agreement or any Collateral Agreement or required to
consummate the Transactions, contains or will contain any untrue
statement of material fact or omits or will omit
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to state a material fact required to be stated herein or therein or
necessary in order to make statements contained herein or therein not
misleading and all Collateral Agreements, data, information or
statements are and will be true, accurate and complete.
8.3 CHANGES IN CONDITION. Since the date of the most recent financial
statements forming part of Buyers' Financial Statements, there has been no
material adverse change in Buyers taken as a whole or individually. Except
matters of general applicability to Buyers' industries, there is no event known
to Buyers which materially adversely affects Buyers taken as a whole or
individually, or the ability of Buyers to perform any of the obligations set
forth in this Agreement or any Collateral Agreement or to consummate the
Transactions.
8.4 COMPLIANCE WITH PRIVATE AUTHORIZATION. Each Buyer has obtained all Private
Authorizations which are necessary for the ownership by such Buyer of its
properties and the conduct of its business as now conducted or as presently
proposed to be conducted or which, if not obtained and maintained, could, singly
or in the aggregate, materially adversely affect such Buyer. Neither Buyer is in
breach or violation of; or is in default in the performance, observance or
fulfillment of; any Private Authorization, and no event exists or has occurred,
which constitutes, or but for any requirement of giving of notice or passage of
time or both would constitute, such a breach, violation or default, under any
contractual obligation of such Buyer or Private Authorization, except for such
defaults, breaches or violations, as do not and will not have in the aggregate
any material adverse affect on such Buyer or the ability of such Buyer to
perform any of its obligations set fourth in this Agreement or any Collateral
Agreement or to consummate the Transactions. No Private Authorization is the
subject of any pending or, to Buyers' knowledge, information or belief;
threatened attack, revocation or termination.
8.5 COMPLIANCE WITH GOVERNMENTAL AUTHORIZATIONS AND APPLICABLE LAW.
(a) Each Buyer has obtained all other Governmental Authorizations which
are necessary for the ownership or uses of its properties and the
conduct of its business as now conducted or as presently proposed to
be conducted and which, if not obtained and maintained, would singly
or in the aggregate, have any material adverse affect on such Buyer
and its subsidiaries taken as a whole. No other Governmental
Authorization is subject of any pending or, to Buyers' knowledge,
information and belief; threatened challenge or proceeding to revoke
or terminate any such Governmental Authorization. Buyers' have no
reason to believe that any other Governmental Authorization would not
be renewed in the name of Buyer by the granting Authority in the
ordinary course.
(b) Neither Buyer nor any officer or director (in connection with the
business, operations and properties of such Buyer) is in or is charged
with or, to Buyer's knowledge, information and belief; at any time
since its organization has been in or has been charged with, or is
threatened or under investigation with respect to, breach or violation
of; or default in the performance, observance or fulfillment of; any
Governmental Authorization or any Applicable Law, and no event exists
or has occurred, which constitutes, or but for any requirement of
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giving notice or passage of time or both would constitute, such a
breach, violation or default, under:
(i) any Governmental Authorization or any Applicable Law, except for
such breaches, violations or defaults as do not and will not have
in the aggregate any material adverse affect on Buyers taken as a
whole or the ability of Buyers to perform any of the obligations
set forth in this Agreement or any Collateral Agreement or to
consummate the Transactions, or
(ii) any requirement of any insurance carrier, applicable to its
business, operations or properties.
8.6 GST REGISTRATION. Buyer will be registered under Part IX of the EXCISE TAX
ACT (Canada) at Closing.
8.7 DISCLOSURE. None of the representations and warranties made by Buyers or
made in any letter, certificate or memorandum furnished or to be furnished by
Buyers or on their behalf, contains or will contain any untrue statement of a
material fact, or omits any material fact the omission of which would make the
statements made misleading and materially adverse to Seller.
8.8 CONTINUING REPRESENTATION AND WARRANTY. Except for those representations
and warranties which speak as of a specific date, all of the representations and
warranties of Buyers set forth in this Article shall be true and correct on the
Closing Date with the same force and effect as though made on and as of that
date and those, if any which speak as of a specific date shall be true and
correct on the Closing Date.
8.9 SOLVENCY. As of the execution and delivery of this Agreement, and, after
giving effect to the consummation of the transactions contemplated herein,
Buyers taken as a whole and individually will be solvent.
8.10 INTERPRETATION. For the purposes of this ARTICLE 8, New Frontier and
Colorado Satellite Broadcasting, Inc. are each considered to be a "Buyer".
ARTICLE 9. SELLER'S OBLIGATIONS BEFORE CLOSING
Seller covenants that, except as otherwise agreed in writing by Buyer, from the
date of this Agreement until the Closing:
9.1 BUYERS' ACCESS TO PREMISES AND INFORMATION. Buyers and its counsel,
accountants and other representatives shall be entitled to have full access
during normal business hours to all Seller's properties, books, accounts,
records, contracts and documents of or relating to the Subject Assets. Seller
shall furnish or cause to be furnished to Buyers and its representatives all
data and information concerning the Subject Assets that may reasonably be
requested.
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9.2 MAINTENANCE OF INSURANCE. Seller shall continue to carry its existing
insurance, subject to variations in amounts required by the ordinary operations
of their businesses. At the request of Buyers and at Buyers' sole expense, the
amount of insurance against fire and other casualties which, at the date of this
Agreement, Seller carries on any of the Subject Assets shall be increased by
such amount or amounts as Buyers shall specify.
9.3 NEW TRANSACTIONS. Seller shall not do or agree to enter into any contract,
commitment or transaction which would materially adversely effect the ability of
Seller to perform any obligation set forth in this Agreement of any Collateral
Agreement.
9.4 EXISTING AGREEMENTS. Except in ordinary course of business, Seller shall
not modify, amend, cancel or terminate any of its existing contracts or
agreements, or agree to do any of those acts without the consent of Buyers, if
doing so would materially adversely affect Seller's ability to fulfill its
obligations under this Agreement.
9.5 CONSENT OF OTHERS. As soon as reasonably practical after the execution and
delivery of this Agreement, and in any event on or before the Closing Date,
Seller shall obtain the written consent of the persons described in SCHEDULE
7.11 in form and substance satisfactory to Buyers and will furnish to Buyers
executed copies of those consents.
9.6 REPRESENTATIONS AND WARRANTIES TRUE AT CLOSING. Seller shall use its
reasonable commercial efforts to assure that all representations and warranties
of Seller set forth in this Agreement and in any written statements delivered to
Buyers by Seller under this Agreement will also be true and correct as of the
Closing Date as if made on that date and that all conditions precedent to
Closing shall have been met. Seller shall promptly disclose to Buyers any
information contained in the Schedules to this Agreement which, because of an
event occurring after the date hereof, is incomplete or is no longer correct as
of all times after the date hereof until the Closing Date; provided, however,
that none of such disclosures shall be deemed to modify, amend or supplement the
representations and warranties of Seller or the schedules hereto for the
purposes of ARTICLE 11, unless Buyer shall have consented thereto in writing.
9.7 STATUTORY FILINGS. Seller shall cooperate fully with Buyers in preparing
and filing all information and documents required under any statutes or
governmental rules or regulations pertaining to the Transactions, including but
not limited to, any licenses required by Industry Canada and the rules
promulgated thereunder.
ARTICLE 10. BUYERS' OBLIGATIONS BEFORE CLOSING
10.1 GENERAL OBLIGATIONS AND CONFIDENTIALITY. Prior to the Closing Date (or, in
the event the Closing does not occur, for a period of two years following the
date of this Agreement) Buyers shall use their best efforts to preserve the
confidentiality of any commercial information which is confidential and which
Seller identifies in writing as confidential which is disclosed to Buyers or to
their representatives by Seller; provided that Buyers at all times shall not be
materially restricted in their investigation of the assets or matters relating
thereto. The above provisions of this Section shall not apply to any information
which (i) is already known to Buyers at the time
15
<PAGE>
of disclosure by Seller, (ii) is published or through no fault of Buyers becomes
published or (iii) is lawfully disclosed to Buyer by a third party. Whether or
not the Closing shall take place, Seller waives any cause of action, right or
claim arising out of the access of Buyers or their representatives to any trade
secrets or other confidential business information of Seller from the date of
this Agreement until the Closing Date, except for the intentional competitive
misuse by Buyers or its representatives of such trade secrets or other
confidential business information (identified as confidential as required by
this Article) if the Closing does not take place.
10.2 SELLER'S ACCESS TO PREMISES AND INFORMATION. Seller and its counsel,
accountants and other representatives shall be entitled to have full access
during normal business hours to all Buyers' properties, books, accounts,
records, contracts and documents. The Buyers shall furnish or cause to be
furnished to Seller and its representatives all data and information concerning
Buyers that may reasonably be requested.
ARTICLE 11. CONDITIONS PRECEDENT TO BUYER'S PERFORMANCE
The obligation of Buyers to purchase the Subject Assets under this Agreement are
subject to the satisfaction, at or before the Closing, of all the conditions set
out below in this Article. Buyers may waive any or all of these conditions;
provided, however, that no such waiver of a condition shall constitute a waiver
by Buyers of any of its other rights or remedies, at law or in equity, if Seller
shall be in default of any of their representations, warranties or covenants
under this Agreement.
11.1 ACCURACY'S OF SELLER'S REPRESENTATIONS AND WARRANTIES. All representations
and warranties by Seller contained in this Agreement or in any Collateral
Agreement or in any written statement delivered by Seller thereunder shall be
true on and as of the Closing as though such representations and warranties were
made on and as of that date. Buyers shall have received a certificate, dated the
Closing Date, signed by Seller's President certifying, in such detail as Buyers
and their counsel may reasonably request, that the representations and
warranties set out herein are true and correct as of the Closing Date.
11.2 SELLER'S PERFORMANCE. Seller shall have performed, satisfied, and complied
with all covenants, agreements, and conditions required by this Agreement to be
performed or complied with by Seller on or before the Closing Date.
11.3 CERTIFICATION BY SELLER. Buyers shall have received a certificate, dated
the Closing Date, signed by Seller' Presidents certifying, in such detail as
Buyer and its counsel may reasonably request, that the representations and
warranties set out herein are true and correct as of the Closing Date.
11.4 OPINION OF SELLER'S COUNSEL. Buyers shall have received from counsel for
Seller, opinions dated the Closing Date, in form and substance reasonably
satisfactory to Buyers and their counsel, stating that:
(a) Seller is a corporation duly organized, validly existing and in good
standing under
16
<PAGE>
the applicable laws of the jurisdiction of its incorporation and has
all necessary corporate power to own its properties as now owned and
operate its businesses as now operated;
(b) all corporate proceedings required by law or by the provisions of this
Agreement to be taken by Seller on or before the Closing Date in
connection with the execution and delivery of this Agreement and the
consummation of the Transactions have been duly and validly taken;
(c) this Agreement has been duly and validly authorized and, when executed
and delivered by Seller will be valid and binding on Seller and
enforceable in accordance with its terms, except as limited by
bankruptcy and insolvency laws and by other laws affecting the rights
of creditors generally; and
(d) neither the execution nor delivery of this Agreement nor the
consummation of the Transactions will constitute a default, or an
event that would with notice or lapse of time or both constitute a
default under, or violation or breach of Seller's articles of
incorporation or bylaws.
In rendering their opinions, counsel for Seller may rely on certificates of
governmental authorities, certificates of Seller's officers, directors or
shareholders, and on opinions of associate counsel.
11.5 ABSENCE OF LITIGATION. No action, suit or proceeding before any court or
any governmental body or authority, pertaining to the Transactions or their
consummation shall have been instituted or threatened on or before the Closing
Date.
11.6 CORPORATE APPROVAL. The execution and delivery of this Agreement by Seller,
and the performance of its covenants and obligations under it, shall have been
duly authorized by all necessary corporate action, and Buyer shall have received
copies of all resolutions pertaining to that authorization, certified by the
secretary of Seller.
11.7 CONSENTS. All necessary agreements and consents of any parties (other than
Buyers, their shareholders or directors, and Authorities in the United States of
America) to the consummation of the Transaction, or otherwise pertaining to the
matters covered by this Agreement, shall have been obtained.
11.8 APPROVAL OF DOCUMENTATION. The form and substance of all certificates,
instruments, opinions and other documents delivered to Buyers under this
Agreement shall be satisfactory in all reasonable respects to Buyers and their
counsel.
11.9 BULK SALES ACT. The Buyers will have been furnished with evidence
satisfactory that the sale and purchase of the Subject Assets is in compliance
with the provisions of the Bulk Sales Act (Ontario).
11.10 CONDITION OF ASSETS. The Subject Assets shall not have been materially or
adversely
17
<PAGE>
affected in any way as a result of any fire, accident, storm or other casualty
or labor or civil disturbance or act of God or the public enemy.
11.11 NON-COMPETITION AGREEMENT. The shareholders of Seller shall each have duly
executed and delivered to Buyers a Non-competition Agreement substantially in
the form of SCHEDULE 11.11.
11.12 RETAIL SALES TAX CERTIFICATE. Buyers shall have received, from Newco, a
retail sales tax certificate issued under the RETAIL SALES TAX ACT (Ontario).
11.13 AGREEMENT ON SCHEDULES. At the date of execution of this Agreement by the
parties, the form and content of the schedules to this Agreement had not be
settled by the parties and it is a condition precedent to Buyers' performance
under this Agreement that such schedules be settled prior to Closing.
ARTICLE 12. CONDITIONS PRECEDENT TO SELLER'S PERFORMANCE
The obligations of Seller to sell and transfer the Subject Assets under this
Agreement are subject to the satisfaction, at or before the Closing, of all the
following conditions:
12.1 ACCURACY OF BUYERS' REPRESENTATIONS AND WARRANTIES. All representations and
warranties by Buyers contained in this Agreement or in any Collateral Agreement
or in any written statement delivered by Buyers thereunder shall be true on and
as of the Closing as though such representations and warranties were made on and
as of that date. Seller shall have received a certificate, dated the Closing
Date, signed by Buyers' Presidents certifying, in such detail as Seller and its
counsel may reasonably request, that the representations and warranties set out
herein are true and correct as of the Closing Date.
12.2 BUYERS' PERFORMANCE. Buyers shall have performed and complied with all
covenants and agreements, and satisfied all conditions that it is required by
this Agreement to perform, comply with, or satisfy, before or at the Closing.
12.3 OPINION OF BUYERS' COUNSEL. Buyers shall have furnished Seller with an
opinion from counsel for Buyers, dated the Closing Date, satisfactory to Seller
and its counsel, stating that:
(a) Buyers are corporations duly organized, validly existing and in good
standing under the laws of the State of Colorado and have all
requisite corporate power to perform their obligations under this
Agreement;
(b) all corporate proceedings required by law or by the provisions of this
Agreement to be taken by Buyers on or before the Closing Date in
connection with the execution and delivery of this Agreement and the
consummation of the Transactions shall have been duly and validly
taken;
(c) this Agreement has been duly and validly authorized and, when executed
and
18
<PAGE>
delivered by Buyers will be valid and binding on Buyers and
enforceable in accordance with its terms, except as limited by
bankruptcy and insolvency laws and by other laws affecting the rights
of creditors generally;
(d) neither the execution nor delivery of this Agreement nor the
consummation of the Transactions will constitute a default, or an
event that would with notice or lapse of time or both constitute a
default under, or violation or breach of Buyers' articles of
incorporation or bylaws; and
(e) to the best of such counsel's knowledge, there is no legal action
pending or threatened against either of Buyers which could have a
material adverse affect on Buyers.
In rendering its opinion, counsel for Buyers may rely on certificates of
governmental authorities and on opinions of associate counsel.
12.4 BUYERS' CORPORATE APPROVAL. Buyers shall have received corporate
authorization and approval for the execution and delivery of this Agreement and
all corporate action necessary or proper to fulfill the obligations of Buyers to
be performed under this Agreement on or before the Closing Date.
12.5 AGREEMENT ON SCHEDULES. At the date of execution of this Agreement by the
parties, the form and content of the schedules to this Agreement had not be
settled by the parties and it is a condition precedent to Seller's performance
under this Agreement that such schedules be settled prior to Closing and shall
be initialled by the signing officers of the parties.
12.6 CAPITALIZATION OF BUYERS. Prior to the Closing Date, the Buyers shall have
raised and received the proceeds from a share offering of not less than
US$7,000,000.
ARTICLE 13. SELLER'S OBLIGATIONS AFTER THE CLOSING.
13.1 PRESERVATION OF GOODWILL. Following the Closing, Seller will restrict its
activities so that Buyers' reasonable expectations with respect to the goodwill,
business reputation, employee relations and prospects connected with the Subject
Assets will not be materially impaired. In furtherance but not in limitation of
this general obligation, Seller agrees that, for the period of two (2) years
following the Closing Date, or as long as Buyers or its assigns or successors in
interest carry on a like business in the counties or areas specified, whichever
is shorter:
(a) Seller and its shareholders will not engage in an Adult Movies
Business and will execute the non-competition agreement attached as
SCHEDULE 11.11. If, in any judicial proceeding, a court shall refuse
to enforce any of the separate covenants deemed included in this
Section, then this unenforceable covenant shall be deemed eliminated
from these provisions for the purpose of those proceedings to the
extent necessary to permit the remaining separate covenants to be
enforced.
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<PAGE>
(b) Seller and its shareholders will not disclose to any person or use for
their own benefit any price lists, pricing data, customer lists or
similar matters possessed by them relating to the Subject Assets or
the business transferred to Buyer unless they first clearly
demonstrate to Buyer that such matters are at the time of the proposed
disclosure or use of common knowledge within the trade.
13.2 SELLER'S INDEMNITIES. Seller shall indemnify, defend and hold harmless
Buyers against and in respect of any and all claims, demands, losses, costs,
expenses, obligations, liabilities, damages, recoveries and deficiencies,
including interest, penalties and reasonable attorneys' fees, that Buyers shall
incur or suffer, which arise, result from or relate to any breach of, or failure
by Seller to perform any of its representations, warranties, covenants or
agreements in this Agreement or in any schedule, certificate, exhibit or other
instrument furnished or to be furnished by Seller under this Agreement.
Notwithstanding any other provision of this Agreement, Seller shall not be
liable to Buyer on any warranty, representation or covenant made by Seller in
this Agreement, or under any of its indemnities in this Agreement, regarding any
single claim, loss, expense, obligation or other liability that does not exceed
US$2,500.00; provided, however, that when the aggregate amount of all such
claims, losses, expenses, obligations and liabilities not exceeding US$2,500.00
each reaches US$25,000.00, Seller shall thereafter be liable in full for all
such breaches and indemnities and regarding all those claims, losses, expenses,
obligations, and liabilities.
13.3 ACCESS TO RECORDS. From and after the Closing, Seller shall allow Buyers,
and its counsel, accountants and other representatives, such access to records
which after the Closing are in the custody or control of Seller as Buyers
reasonably require in order to comply with its obligations under the law or
under contracts assumed by Buyers pursuant to this Agreement.
13.4 NONSOLICITATION OF EMPLOYEES. Except with the prior written consent of
Seller, Buyers shall not, prior to the first anniversary of the Closing, solicit
any employee of Seller or of any affiliate of Seller to leave such employment if
such employee was at any time between the date hereof and the Closing an
employee of any Seller.
13.5 RISK OF LOSS.
(a) Until the Closing Date the Subject Assets will remain at the risk of
Seller. Seller will maintain all risk insurance in respect of loss or
damage to or any other casualty in respect of the Subject Assets which
provides for loss settlement on a replacement cost basis if the
Subject Assets are repaired or replaced and on an actual cash value
basis if the Subject Assets are not repaired or replaced. In the event
of any loss, damage or claim, in respect of any risk for which
insurance is to be carried as aforesaid arising before the Closing
Date, Buyers, as an additional condition of closing, will be entitled
to be satisfied that the insurers have accepted the claim of Seller
for payment in accordance with the terms of the policies. If any
destruction or damage occurs to the Subject Assets on or before the
Closing Date or if any or all of the Subject Assets are appropriated,
expropriated or seized by governmental or other lawful authority on or
before the Closing Date, Seller will forthwith give notice thereof to
Buyers and Buyers will have the option,
20
<PAGE>
exercisable by notice to Seller on or before the Closing Date:
(i) to reduce the Purchase Price by an amount equal to the cost of
repair or, if destroyed or damaged beyond repair or if
appropriated, expropriated or seized, by an amount equal to
the replacement cost of the assets forming the part of the
Subject Assets so damaged or destroyed or appropriated,
expropriated or seized and to complete the purchase;
(ii) to complete the purchase without reduction of the Purchase
Price, in which event all proceeds of insurance or
compensation for the destruction or damage or appropriation,
expropriation or seizure will be payable to Buyers and all
right and claim of Seller to any such amounts not paid by the
Closing Date will be assigned to Buyers; or
(iii) to rescind this Agreement and not complete the purchase if; in
the opinion of Buyers, such destruction, damage,
appropriation, expropriation or seizure is material and in
such event Seller and Buyers will be released from all
obligations hereunder and the deposit referred to in SECTION
2.1(a) shall be returned to Buyers.
(b) If Buyers elect to reduce the Purchase Price pursuant to SECTION
13.5(a)(i), Seller and Buyers will at the Closing Date determine the
amount of the reduction to the extent that it is then determinable and
will undertake to adjust such amount after the Closing Date, if
necessary.
ARTICLE 14. COSTS
14.1 FINDER'S OR BROKER'S FEES. Each party shall be responsible for its on
costs or for any commission or finder's fee incurred on behalf of that party in
connection with the Transactions.
14.2 EXPENSES. Each of the parties shall pay all costs and expenses, including,
but not limited to attorneys' fees, incurred or to be incurred by it in
negotiating and preparing this Agreement and in closing and carrying the
Transactions.
ARTICLE 15. FORM OF AGREEMENT
15.1 HEADINGS. The subject headings of the Articles and Sections of this
Agreement are included for purposes of convenience only and shall not affect the
construction or interpretation of any of its provisions.
15.2 ENTIRE AGREEMENT; MODIFICATION; WAIVER. This Agreement constitutes the
entire agreement between the parties pertaining to the subject matter contained
in it and supersedes all prior and contemporaneous agreements, representations,
and understandings of the parties. No supplement, modification or amendment of
this Agreement shall be binding unless executed in
21
<PAGE>
writing by all the parties. No waiver of any of the provisions of this Agreement
shall be deemed, or shall constitute, a waiver of any other provision, whether
or not similar, nor shall any waiver constitute a continuing waiver. No waiver
shall be binding unless executed in writing by the party making the waiver.
15.3 COUNTERPARTS. This Agreement may be executed simultaneously in one or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.
ARTICLE 16. PARTIES
16.1 PARTIES IN INTEREST. Nothing in this Agreement, whether express or implied,
is intended to confer any rights or remedies under or by reason of this
Agreement on any persons other than the parties to it and their respective
successors and permitted assigns, nor is anything in this Agreement intended to
relieve or discharge the obligation or liability of any third persons to any
party to this Agreement, nor shall any provision give any third persons any
right of subrogation or action over against any party to this Agreement.
16.2 ASSIGNMENT. No party can assign this Agreement without the express written
consent of the other parties. This Agreement shall be binding on and shall inure
to the benefit of the parties to it and their respective heirs or legal
representatives, and their respective successors and permitted assigns.
ARTICLE 17. REMEDIES
17.1 RECOVERY OF LITIGATION COSTS. If any legal action or any arbitration or
other proceeding is brought for the enforcement of this Agreement, or because of
an alleged dispute, breach, default or misrepresentation in connection with any
of the provisions of this Agreement, the successful or prevailing party or
parties shall be entitled to recover reasonable attorneys' fees and other costs
incurred in that action or proceeding, in addition to any other relief to which
it or they may be entitled.
17.2 CONDITIONS PERMITTING TERMINATION. Subject to the provisions of ARTICLE 3
relating to the postponement of the Closing Date, either party may on the
Closing Date terminate this Agreement by written notice to the other, without
liability to the other, if any bona fide action or proceeding shall be pending
against either party on the Closing Date that could result in a materially
adverse judgment, decree or order that would prevent or make unlawful the
carrying out of this Agreement.
17.3 DEFAULTS PERMITTING TERMINATION. If a Buyer or Seller materially defaults
in the due and timely performance of any of its material warranties, covenants,
or agreements under this Agreement, the non-defaulting party or parties may on
the Closing Date give notice of termination of this Agreement, in the manner
provided in ARTICLE 19. The notice shall specify with particularity the default
or defaults on which the notice is based. The termination shall be
22
<PAGE>
on the first to occur of the 10th day after such notice or the Closing Date,
unless the specified default or defaults have been cured by such time.
ARTICLE 18. NATURE AND SURVIVAL OF REPRESENTATIONS AND
WARRANTIES
All representations, warranties, covenants and agreements of the parties
contained in this Agreement, or in any instrument, certificate, opinion or other
writing provided for in it, shall survive the Closing.
ARTICLE 19. NOTICES
All notices, requests, demands and other communications under this Agreement
shall be in writing and shall be deemed to have been duly given on the date of
service if served personally on the party to whom notice is to be given, or on
the third day after mailing if mailed to the party to whom notice is to be
given, by first class mail registered or certified, postage prepaid, and
properly addressed as follows:
Seller: Douglas Duncan
2500 Don Reid Drive
Ontario, Canada
K1H 8P5
Stuart Duncan
2500 Don Reid Drive
Ontario, Canada
K1H 8P5
Daniel Bender
27357 Valley Center Road
Valley Center, California
92082
with copy to: Jamie Wyllie, Esq.
Yegendorf, Brazeau, Seller, Prehogan & Wyllie
55 Metcalfe Street, Suite 750
Ontario, Canada
K1H 6L5
23
<PAGE>
Buyers: New Frontier Media, Inc.
1050 Walnut Street, Suite 301
Boulder, CO 80302
Attn.: Mark H. Kreloff
with copy to: The Law Office of Mark L. Driver, P.C.
3300 East First Ave. Suite 600
Denver, CO 80206
Attn.: Mark L. Driver
Any party may change its address for purposes of this Article by giving the
other parties written notice of the new address in the manner set forth above.
ARTICLE 20. GOVERNING LAW
This Agreement shall be construed in accordance with, and governed by, the laws
of the State of Colorado.
ARTICLE 21. MISCELLANEOUS
21.1 ANNOUNCEMENTS. Seller will not make any announcements to the public
concerning this Agreement or the Transactions without the prior approval of
Buyers, which will not be unreasonably withheld. Notwithstanding any failure of
Buyers to approve it, Seller may make an announcement of substantially the same
information as therefore announced to the public by Buyers, or any announcement
required by applicable law, but Seller shall in either case notify Buyers of the
contents thereof reasonably promptly in advance of its issuance.
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<PAGE>
21.2 REFERENCES. Unless otherwise specified, references to Sections or Articles
are to sections or articles in this Agreement.
IN WITNESS WHEREOF, the parties to this Agreement have duly executed it as of
the day and year first above written.
BUYERS: New Frontier Media, Inc.
By: /s/ [ILLEGIBLE]
---------------
Its: President
----------------------------
Colorado Satellite Broadcasting, Inc.
By: /s/ [ILLEGIBLE]
---------------
Its: President
-------------------------
SELLER: 1248663 Ontario Inc.
By: /s/ [ILLEGIBLE]
---------------
Its authorized signing officer
25
<PAGE>
[SCHEDULES TO THE 124 AGREEMENT]
SCHEDULE 1(a)
UPLINK FACILITIES EQUIPMENT LIST
DESCRIPTION MODEL SERIAL NUMBER NUMBER/COMMENTS
- ----------- ----- ------------- ---------------
EXOTICA
Exciter WB461 126090
Audio Compressor MDC 2001 CK277816
TBC DPS235 5E235020
VDA PHASE 3 108 2
ADA PHASE 3 204A 2
Monitor PANASONIC SB70 EK1650001
Patch panel ADC
VAX CPU 630QY-A2 WF83010504
UNIDEN SAT. RX SQ530
Comstream digital RX DBR401 7929
VCII & scrambler SP2000080
VCII & descrambler P00150371
terminal VT420 TA514F6330
Keyboard HJ432V7987
Smart Ups 700
Digital Printer LA75 TY40141234
VARIAN GEN 1 TXMTR. VZJ2700D4F1 S159XXX
EXXTASY
VideoProc. Amp. VPA331N 951222
Audio Processor MDC2001 520-04584-2794
Patch panel
VAX CPU WF63507157
GI SAT RX. 650I
VCII & scrambler SP2000050
VCII & descrambler A020086DB
terminal VT420 TA245S9300
keyboard 108RX33S-1E
Exiter WB461 107
VARIAN GEN II TXMTR. VZJ2700GAA033 559
Monitor S901 KA4420329
Modem PM14400FXMT
Micro Mixer 2
TRUE BLUE
Exiter WB461 123
Monitor BT-S901Y KA4440151
<PAGE>
2
TBC DPS-235 4K235050
Audio Compressor MDC2001 520-03719-0793
VDA VDA108 2
Patch panel
VAX CPU WF71610562
DIGITAL RX DBR401 7931
SAT RX GI 650I
VCII PLUS SCRAMBLER S0000003
VCII PLUS DESCRAMBLER P00264197
VARIAN GEN I TXMTR X31599FG
APC UPS 600
Micro Mixer 2
PROMO
VARIAN GEN II TXMTR. VZJ2700GAA033 317
W/G switch 24019-G1 27
Dummy Load 1.5KW
SA video Exiter 7550B
Neico Waveguide switch 24019-G1 16
Neico Waveguide switch 19
Neico Waveguide switch 36
Neico Waveguide switch 26
Neico Waveguide switch 61
Waveguide switch 880
Termination 3KW
termination 2
HYPBIDS 2
AYDIN TXMTR. 103-E1 4
ANDREW 4.5 meter antenna
l PORT feed
POL control
POL control panel
TX Reject filter
6.1 meter antenna
DE-ICING 6.1 meter
1.8 meter RX only
KU LNB
Block Down Converter 140059 4370000411
Block Down Converter 140059 4370000410
Leitch Video Processing VPA-331 ?
Dumb Terminal VT420 TA412Z9634
Keyboard LK401-AA HJ347E4009
Comstream Digital Broadcast DBR101 1069
receiver
Video Exiter VEL-6-8506 194200
Video Exiter VEL-6-8506 194201
<PAGE>
3
Radiation Meter 8616 21009
TEST EQUIPMENT
TMS 3551A 2214A12107
Radiation Meter 8616 21010
Radiation Probe 8621C 22015
Vector Scope 520A 833079
Power Meter 436A 2709A27119
Transmission set test 3555B 0992A03445
Test oscillator 654A 0951A02640
Spectrum analyzer 757 1416A02117
Frequency Counter 534A 2805
Video Waveform Monitor RM529 M0D1880
Video Waveform Monitor RM529 14423
TECHS
Racks
83" with 2 power bars
85" with 1 power strip
& 1 power bar
86" with 2 power strips
Work Bench 6 with upper shelf
Desk 5 1
Chairs 2
Shelf 4 1
Book shelf 34" 1
Book Shelf 48" 1
Storage Cabinet 3x6 2
3 phase 225 Amp power panel NLAB442A l
3 phase 50 amp breakers 4
30 amp Dual 1
15 amp 7
15 amp Dual 1
60 amp Dual 1
40 amp Dual 1
3 phase 225 Amp Power panel NBC324 1
3 phase 50 amp Breakers 2
15 amp 7
30 amp 1
Dehydrator 1
Misc. Tolls 1
75 Kua 600v Transformer 2
45 Kua 600v Transformer 1
Air handling mix units 2
3 pole 600v CCT Breakers 3
100x3 Interconnect cable between Pwr rm. &
<PAGE>
4
transformers
125 amp 3 phase panel QL424125 antenna deice
50amp 2 pole 2
15 amp 2
LIBRARY
cabinets full frame pullout 70027 2
1/2" large Betacam shelves T7402 24
Add-on frame pullout cabinet 70028 1
1/2" large Beracam shelves T7402 6
7 rack Stationary shelves 9
6 rack Stationary shelves 4 - 15 Beta/shelf
capacity
6 rack Stationary shelf 1 - 20 Beta/shelf
capacity
3x6x1 steel storage shelf 1
3x6x2 steel storage shelf 1
6x6x2 steel storage shelf 2
UPSTAIRS SCREENING
Betacam recorder UVW-1800 11858
3/4" U-matic recorder VO-5600 25568
3/4" U-matic recorder VO-5850 20248
Audiolab Tape Degausser TD511560 51404
PROGRAMMING OFFICE
3x6x1 steel storage shelf
6 rack stationary shelf 15 Beta/shelf
capacity
5x2.5 office desk
3 shelf computer trolley
Samsung Syncmaster 3Ne H1BD900695 Color computer
monitor
Hewlett Packard Vectra VL MX55050221 Pentium computer
5/75 series 3
RACK 1- PLAYOUT AREA
19X32X84 INCHES
Leitch lolo generator
inseter LGI-1302N
Hedco Hedline 4x1 switch SVS 345 A932188 SVS 345
Hedco Hedline 4xl switch SVS 345 A931938
Hedco Hedline 4x1 switch SVS 345 A932187
Leitch Sync pulse generator SPG-1302N 9607586
PP1 ADC 24X2 Audio patch
panel
HEDCO (10 VIDEO DAS) DA-6000 87C170
PP2 26X3 Video patch panel
<PAGE>
5
PP3 26X3 Video patch panel
PP4 26X3 Video patch panel
PP5 26X3 Video patch panel
PP6 26X3 Video patch panel
PP7 26X3 Audio patch panel
WBS Audio DA M605A 5
PP8 26X2 Audio patch panel
LEITCH DA FR-662 841437
(7+2POWER SUPPLIES)
ROLLING RACK - PLAYOUT AREA
26X18X36 INCHES
Monitor - JVC 8 INCH 10132484
Computer monitor- TTX 15 2E1-61006011
INCH
COMPAQ DESKPRO 5100 6617HWZ5P990
PENTIUM COMPUTER
COMPAQ KEYBOARD 1LJ39D302954
RACK 2 - PLAYOUT AREA
19X32X84 INCHES
Monitor - PANASONIC 8 KA3350366
INCH
Monitor - BURLE 8 INCH 117721
Monitor - Sony 8 INCH 2005004
Monitor - Sony 8 INCH 2000515
Panasonic WJ-MX50 Digital
AV mixer
Plastic Trays
Tektronix type 528 Wavefrom
monitor
Tektronix 1420 NTSC B040742
Vectorscope
Monitor - CITIZEN 9 INCH 31201696
Fostec Personal Monitor 6301B 0236580KU
speaker
Videoquip Research PHASE 3 RS-41A 6317
stereo audio 4X1 RTR
Videoquip Research PHASE 3 RS-41V 6316
video 4X1 RTR
Sony Betacam SP PVW-2600 13190
Videocassette player
rack drawer 17X18X5" DEEP
RACK 3 - PLAYOUT AREA
19X32X84 INCHES
<PAGE>
6
Monitor - HITACHI 13 INCH 3060578
Dorrough Loudness monitor MODEL 40-A
Dorrough Loudness monitor MODEL 40-A
Sony Betacam SP PVW-2600 15379
Videocassette player
Sony Betacam 5P PVW-2600 11677
Videocassette player
Videotech VIS-1201 12X1
switcher
ALPHA STAR STARTRAK PIHB0040854
1000
Satellite receiver
Monitor - Panasonic 8 INCH KA4420172
Monitor - Panasonic 8 INCH KA6230050
Sony Betacam SP PVW-2600 12829
Videocassette player
RACK 4 - PLAYOUT AREA
19X32X84 INCHES
Monitor - Burle 8 INCH 117712
Monitor - JVC 8 INCH 7030254
Clock
Sony Betacam SP PBC-2600 401
Videocassette player
Sony Betacam SP PVW-2600 104030
Videocassette player
Sony Betacam SP PVW-2600 15294
Videocassette player
Sony Betacam SP PVW~2600 15256
Videocassette player
Ravk drawer 17X18X5" DEEP
Panasonic Editing AG-A770 2A1574KB
Controller power supply
EXXXTASY/TRUE BLUE PLAYOUT
CABINET 72X57X78 INCHES
Monitor - Burle 8 INCH 109112
Monitor - Burle 8 INCH 117731
Monitor - Burle 8 INCH 92545
Monitor - Burle 8 INCH 92559
Monitor - Bur1e 8 INCH 92521
Monitor - Burle 8 INCH 92525
Monitor - JVC 8 INCH 10132495
Monitor - JVC 8 INCH 10132489
Monitor - Citizen 9 INCH 31201462
Monitor - Citizen 9 INCH 31201241
<PAGE>
7
Monitor - Sony HR 2015899
TRINITRON 13"
Fostex personal Monitor 6301B 0236579KU
speaker
Fostex personal Monitor 6301B 0235566KI
speaker
Dorrough Loudness Monitor 40-A
Dorrough Loudness Monitor 40-A
Thomson CSF 5500A
LABORATORIES INC.color
corrector
Thomson CSF
LABORATORIES NC. Color
collector Remote
5TH DIMENSION logo
ON/OFF switch
Tektronix type 528 Waveform
Monitor
Tektronix 1420 NTSC
Vectorscope
5TH DIMENSION VCR TBC
Remote control panel
5TH DIMENSION VCR TBC
Remote control panel
5TH DIMENSION audio
monitor control panel
Panasonic systems Editing AG-A770
controller
Panasonic special Effects WJ-5500A
generator/switcher
Viewfinder transport controller 2
Videotek 12X1 switcher VIS-1201
Monitor - Commodore 13" 1084S 1052733
Commodore Armiga 2000 HD CA1077135
CPU
Commodore Armiga keyboard MT9004
Rolling cabinet 24X24X32"
VIEWING ROOM
Monitor - JVC 8 INCH TM-923 7030255
Sony Betacam SP PVW-2800 20630
Videocassette recorder
Sony Betacam SP UVW-1600 10457
Videocassette player
Monitor - HITACHI 13 INCH 3080612
Monitor - Panasonic 13" CT-1331YC FE4250100
<PAGE>
8
Tektronix l740A B015212
Waveform/vectorscope monitor
Sony Dynamic MDR-7502 stereo headphones
Monitor-Sanyo 13" VMC-7514 H8201655
Table 60X30X29"
Cabinet 60X68X16"
Rolling Table 47X33X32
Cabinet 27X22X48
RACK 5 - VIEWING ROOM
Videoquip audio amplifier MP204A 6640
Digital video systems TBC DPS-170 60530126
PP1 26X1 video patch panel
PP2 26X3 audio patch pane1
Panasonic S-VHS AG-7355 L1TB00065
Videocassette recorder
Sony Betacam SP PVW-2800 17174
Videocassette recorder
Sony 3/4 INCH U-MATIC BVU-800 15430
Videocassette recorder
Sony Betacam SP UVW-1200 10652
Videocassette player
Rack drawer l7X18X5
SES COM stereo line driver PO-55
APHEX 10/4 Interface 124A 10356
RACK 6 - VIEWING ROOM
PP1 26X3 Audio/video patch
panel
Videoquip Research PHASE 3 VDA-l08 6323
video DA
Sony Betacam SP PVW-2600 15440
Videocassette player
OTHER ITEMS
Chairs 8
Tables 2 - 60X30X27"
4 Drawer legal size fi1ling
cabinet
Desk with 4 drawers 60X30X29
Room divider 60X73"
12" fan
12 Pigeon-hole message sender
5-slot wall-mounted file holder
Combination peg board/white 23X35"
board
<PAGE>
9
Horizontal blind 47X84"
Horizonta1 Blind 2 - 24X84"
EDIT SUITE
Ampex ADO 3000 Keyboard 1420180-016 1631189
ADO Terminal W/disk drive 1465092-030 971939
ADO preview monitor-Sanyo VMC-7514 H 8101590
Audio Patch panel x 24 input N/A N/A
Video Patch panel x 24 input N/A N/A
Amiga Computer 3000 MT 9201 Tower W/Toaster
Sony Betacam P1ayer PVW-2600 10430
Sony Betacam Recorder PVW-2800 20630
Panasonic S-VHS Recorder AG-D5850P F4T00436
Panasonic TV Monitor BT-S9014 KA4420172
Panasonic TV Monitor BT-S9014 KA3350366
Panasonic TV Monitor BT-S1360Y FE4120037
TTX Computer Monitor TTX-3501 424A046672
Leitch Video D.A. FR-662
Leitch Video D.A. rack frame (A) FR682AV
Waveform/Vectorscope Tektronix 1740 B011764
Videotek Prodigy Switcher 1950560
Videotek Prod.Frame 1950561
Panasonic Edit controller AV-950 H3A1336D1
Keytronic keyboard (edit input)EO3435 6159366
SoundCraft Audio mixer RW1277 851
SoundCraft mixer power supply CPS 150 RW8000 020356
SoundCraft GPI interface VSA 24 II
Peavey Interface Amplifier 1A 10/4 W/O 7521237
Peavey Interface Amplifier 1A 10/4 W/O 7521241
Sony Compact Disk player CDP-311 A700765
Tectonix audio cassette player RS-TR979 FH3BA01358
Samson audio amplifier Servo 150
Ramsa speakers 160 watts WS-A10-K 372005
Ramsa speakers 160 watts WS-A10-K 372006
Burle B&W monitor TC1909 92545
Burle B&W monitor TC1909 92559
T.B.C. Remote controller RMC 11 Grimms Enterprises
Winstead Edit console W/22.5" metal
racks
3 level wood shelf unit- custom made
monitors
metal tape shelves 2
4 wheel computer workstation 2
high back 5-wheel chairs 2
1 Microphone stand
Microphone boom/holder
Electrovoice 635-A microphone 2
<PAGE>
10
power bars 3
Monitor TMA-9U 1603044 shop use
VTR Betacam PVW-2600 15305 under repair
Character Generator WJ-KB50 3XZ04473 spare
Character Generator WJ-KB50 20Z00815 spare
Video DA LEITCH A940244 spare
Video switcher RS 41-V 6659 to be installed
Audio switcher RS 41-A 6660 to be installed
Audio Meter VP-2 6633 to be installed
Audio Meter VP-2 6318 to be installed
Audio DA ADA 204 A 6320 to be installed
Effect Generator WJ-MX 50 3XA03302 spare
VHS VCR SVP-3000 0010145-D4 under repair
VHS VCR SLV-770HF under repair
Computer interface ISP-15 1001 spare
Computer interface ISP-15 1002 spare
Computer interface ISP-15 1003 spare
Computer interface ISP-15 1004 spare
Computer interface ISP-15 1005 spare
Computer interface ISP-15 1006 spare
Effect Generator WJ-5500 52516 under repair
Service manual Sony UVW 1600/1800
vol.1
Service manual Sony UVW 1600/1800
vol.2
Service manual Sony PVW 2600
vol.l
Service manual Sony PVW 2600 vol.2
Head protrusion Meter
Weller soldering station
Ditheral adjusting screw J-6080-013-A 4
Drum eccentricity gauge J-6001-820-A 1
Drum eccentricity gauge J-6001-830-A l
Drum eccentricity gauge J-6001-840-A l
Drum eccentricity gauge J-6087-000-A 1
Flatness plate J-6086-570-A
Rell table tension gauze J-6080-011-A
Reel motor shaft gauze J-6320-870-A
Reel motor shaft jig J-6150-960-A
Inspection mirror 7-723-902-00
Tension scale 50G 7-723-050-20
Tension scale 100G 7-723-050-30
Tension scale 20G 7-723-050-01
Tension scale 500G 7-723-050-50
Alignment tape CR2-1B 8-960-096-01
Alignment tape CR5-1A 8-960-096-01
<PAGE>
11
Thickness gauge 9-911-053-00
Tentelometer
Wire clearance gauge J-6152-450-A
Reel high table gauge J-6320-680-A
Tension regulator J-6190-800-A
Thickness gauge J 6041-670-A
Tape guide adjust tool J 6321-500-A
Dial tension gauge
Cassette reference
Tension adjust fixture
Extension board
L shaped wrench 2
wrench
Extension board EX 278 J-6332-780-A
Extension board A-6766-389-A
Extension board EX 279
Thickness gauge J 6041-670-A
Tape guide adjust tool J 6321-500-A
Dial tension gauge
Cassette reference
Tension adjust fixture
Extension board
L shaped wrench
L shaped wrench
wrench
Oil NT 68
Extension board EX 278 J-6332-780-A
Extension board
Extension board EX 279
Work bench
chair
Rubbermaid mobile cart
MILD FINANCING EQUIPMENT
PVW 2800 Betacam SP 21351
Recorder
PVW 2600 Betacam SP Player 15294
PVW 2600 Betacam SP Player 15305
PVW 2600 Betacam SP P1ayer 15213
PVW 2600 Betacam SP Player 15440
S-VHS Recorder SONY SVT 10145
3000
UVW-1200 Betacam SP Player 10652
DPS 235 TBC Frame SYNC. 4K235050
TEKTRONIX 1740A BO 15212
<PAGE>
12
WFM/VECT
TEKTRONIX TSG 130A
GEN.AUD/VID
AUDIO Monitor MP 204A 6640
PHASE 3 Extended Range 6633
Audio Meter
RS 41V 4X1 Video Routing 6659
RS 41A 4X1 Stereo Audio 6660
Routing
RS 41V 4X1 Video Routing 6316
RS 41A 4X1 Stereo Audio 6317
Routing
ADA 204 A Audio DA 6638
VDA 108 Video DA 6319
ADA 204 A Audio DA 6320
VDA 108 Video DA 6323
ADA 204 A Audio DA 6321
VDA 108 Video DA 6635
Phase 3 Extended Range Audio 6318
Meter
ISP-15 Computer Interface 1001
ISP-15 Computer Interface 1002
ISP-15 Computer Interface 1003
ISP-15 Computer Interface 1004
ISP-15 Computer Interface 1005
ISP-15 Computer Interface 1006
386 PC Computer & VGA
Monitor
PELCO VS5104 Video 1682 4K
Switcher
APHEX 10/4 Audio Interface 10356
Model 124A
HITACHI CM 151U Color 3060578
Monitor
HITACHI CM 151U Color 3080612
Monitor
HITACHI CT 1396VM S4E036167
Video/Audio Monitor
SANYO VMC-7514 Co1or H8101558
Audio/Video
SANYO VMC-7514 Color H8101472
Audio/Video
SANYO VMC-7514 Color H8101590
Audio/Video
SANYO VMC-7514 Color H8101437
Audio/Video
<PAGE>
1
SANYO VMC-7514 Color H8201655
Audio/Video
MCL Klystron Power Amps 1363
MCL Klystron Power Amps 1364
Aydin Klystron Power Amp
Miteq video exciters (2) 194201
Uniden Satellite Receivers (2)
Domestic 2.4 metre TVRO.
Make unkhown
Mitsubishi UPS 30KVA
4kw Exide UPS
Miteq Transmit Interface Unit 194650
Specialty uWave 1:1 Protection 3379-001
switch
VA936L 12 Varian 12 ch 71226
klystron tubes
VA936L 12 Varian 12 ch 71170
klystron tubes
Thompson 12 ch klystron tube OOO.26O
Delta 30 kva transformer 600-
380 VAC
transformer
General Instruments 1.2m vsat
Comstream modem
lot of waveguide and w/g
switches
Square D AC mains enclosed
switches (4)
3 phase 125 amp distribution
box
Videocipher RS Module
SCHEDULE 1(b)
CALL CENTER EQUIPMENT LIST
DESCRIPTION MODEL SERIAL NUMBER NUMBER
- ----------- ------ -------------- ------
FURNITURE
24x45 desk oak 3
pull-out shelf oak 7
30x60 flush right oak 1
paper catcher oak 1
kd mini station oak 2
<PAGE>
2
opus chair gas lift blue 7
45"x53" chair mat 8
4 dr lateral gray 1
stat cabinet gray 1
30x48 adj table gray 1
letter tray 12
wastebaskets gray 6
24x45 desk oak 6
opus chair gas lift blue 6
pull-out shelf oak 6
4 dr lateral gray 1
letter tray 12
45"x53" chair mat 6
blinds 6
high back chair 4
30x48 desk oak 3
36x72 desk oak 1
2 dr lateral oak 1
30x48 desk oak 5
opus chair gas lift burgundy 8
pull-out shelf oak 5
45x43 chair mat 5
letter tray 14
4 dr lateral gray 1
Stat cabinet gray 1
opus chair gas lift burgundy 2
45x53 chair mat 1
wastebasket gray 5
legal tray 2
30x60 sierra 2+2 oak 1
4 dr lateral gray 1
36x72 desk oak 1
45x53 chair mat 2
4 dr lateral gray 1
30x60 sierra 2+2 oak 3
steno chair blue 2
steno chair burgundy 2
20x72 oxford cred oak 2
2 dr lateral oak 1
60x60 divider blue 3
60x60 divider came 3
30x60 desk oak 3
20x45 desk oak 1
steno chair burgundy 4
hi back leather burgundy 2
visitor tweed burgundy 2
<PAGE>
3
tower comp stn oak 1
letter tray burgundy 6
Phone Equipment
cables bix, installation etc
Work Station 1
winsted work surface 2
winsted editor shelf 2
Booth 1
Kraus "Consortium" carpet 1
roller blinds 5
chairs black 41
6' bookcase mahogany 2
stationary stool black 6
PV-4366 SVHS recorder player l
TV stand 1
SLV-730 VHS VTR (Sony) 2
T-160VB CHS Tapes (10) 2
WS-A10 PA Speakers 2
PA-Serv0150 PA Power Amp 1
inv 13681 tv's 2
desk 24x42 38
single panel 42x24 23
filler bar to connect tables 21
sliding shelf for keyboard 38
1 drawer unit 18 1/2 x 16 1/4 x 7 38
panel filler 13
3 drawer mobile file 3
table 36x30x29 1
filler bar 2
decorative moulding 2
2 drawer lateral file 1
open desk bookcase 60x12x24 2
desk 60x30x29 fill modesty panel 1
desk 60x30x29 with 3/4 modesty panel gray 2
avm- 1423 television (Sony) 4
VHR-9417 Sanyo VHS VCR 2
DT331 Beyer Dynamic Headphones 4
36x72 wood top bench 2
Gas drafting chair 2
Stat cabinet tan l
blue frey panel 18x40 4
blue gray panel 60x60 2
blue gray panel 18x80 3
blue gray panel 30x80 6
overhead flipper door cabinet 2
counter surface 60 x l8 3
<PAGE>
4
counter surface 61x18 2
open bookshelf 60x14x7 gray 12
Steel shelf unit 1
Desks 4
Booth 1
4dr Lateral Grey Filling Cabinet 1
Desk 36 X 72 1
Shelves 60x 14x7 4
Tape Storage Cabinet 1
Filling Cabinet 1
BBS Shelf 1
tape cabinet 1
Filling Cabinet l
Desk 2
7.5 ft Sat dish
Feed system: chaparral PR1 polarotor c/w
cal
amp 25 deg LNB
Von Weise actuator
4.5" to 3.5" reducer red 4535
Dual RG6 sat ribbon cable
Installation including 15' pole, 660lbs
concrete
UHF remote
2dr filling cabinet grey 1
4dr Filling Cabinets 2
COMPUTER SOFTWARE
207-0151AV311 win for gruops V3.11 2
Kallista mom & objectspy V2.0 bundle 1
menu object mgr additional lan user 2
objectspy, additional lan user 2
wool2wool ezdialogs 1
021-051v420 ms office win 4.2(3.5") 1
02l4050v420 office mlp (regular) 9
MYOB 1
Maverick 540MB INT IDE 3.5" 1
3D STUDIO 1
Time Clock 1
100-19317-00, graphics xpression 2mb ISA 1
050-052-950 windows'95 upg cd 2
vga cable db 15 M-to-F 6 1
PDC8023A-T16 Concentrator 16 1
port/tpcdax
WFUL16005 Winframe 5 User Lic pk 1
<PAGE>
5
86-751 Avail HSM Base Netspace 1
86-752 OLHP20 Capacity Kit for HP Avail 1
Video over the internet 1
Corel Print House 1
CWWPS70-UG-CAN0 WP suite v7.0 upg 1
cd'95
12-00-02477 winfax pro v7.5 cd w95 1
Office Pro 97 w/bookshelf 1
FirstLink Activation software
203-00101 Visual Basic Pro 5.0 Upg CD 1
021-00703 Up Office CD 1
FLD20D01, Macromeida Flash V2.0 1
Go Software - Charging Interface between
Netserver and CTS Software
EG Software Webtrand (usage taking)
CTS Subscription software
TELEPHONE SYSTEM
SX2000 Microlight Basic System 1
SX2000 Light Software and Practices 1
Megalink /ISDN Node 1
Communications Processor Card 1
ON Premises Line Card (16ports) 1
DNI Line Card (16 ports,32 Channel) 4
E & M Tie Trunk Card (4ports) 1
Traffic Reporting Software 1
Answer Plus MCD Software 1
HCI Basic Telephony Software 1
HCI Advanced Telephony Software 1
HCI 100 Agent Software 1
ANI/DNIS Software 1
Superconsole 1000 1
Superset 420's 59
2103 Sync/Async datasets 3
Fibre Optics Jumper Cable 1
Interalia 4 Port RAD with battery Backup 1
TASKE ACD Report Generator/Call centre
Management Software 1
TIE VMX 4002 or 2002 8 Port Voicemail
system with auto attendant 1
AP 900 UPS 1
H5 1 Plantonics Headsets 5
M10 Modular Adaptor Base 5
H51 Plantonics Headsets 10
M10 Modular Adaptor Base 10
<PAGE>
6
COMPUTERS
HP Vectra 486/66 3401S01112
Clone 486/40 N/A
HP Vectra 486/66 3332A04367
NEC 586/90 5917834UN
Clone 486/100 N/A
Clone 686/200 97013390
HP Vectra 586/75 MX55050533
HP Vectra 486/33 33390S3190
Compaq 586/100 148130-003
HP Vectra 486/66 3449Y00536
HP Vectra 486/33 3407A00444
HP Vectra 486/33 3237A07590
HP Vectra 486/33 3404A00157
AST Bravo 586/100 375AQJ010836
Clone 486/33 N/A
Clone 486/40 N/A
Clone 486/33 B.T.C. 04252
HP Vectra 486/33 3248500329
Clone 486/40 N/A
HP Vectra 486/33 3324A00149
HP Vectra 486/33 3323F21007
HP Vectra 486/33 3237A07322
HP Vectra 486/33 3340500237
HP Vectra 486/33 3407A07012
Clone 486/40 N/A
AST Bravo 586/100 375AQJ01 1529
AST Bravo 586/100 375AQJ011541
AST Bravo 586/100 375AQJ011518
AST Bravo 586/100 375AQJ010823
AST Bravo 586/101 375AQ3010315
AST Bravo 586/100 375AQJ01 1554
AST Bravo 586/100 375AQJ010329
HP Vectra 586/75 MX55050416
HP Vectra 586/75 MX55050643
HP Vectra 586/75 MX55050631
HP Vectra 586/75 MX55050398
HP NetSrv 586/66 3438Y22189
HP Vectra 486/66 3402A02407
Compaq 486/66 A507HNC3G10
HP XU 586/133 SG53300170
AST Bravo 586/100 375AQJ010329
HP Vectra 586/133 US64050404
HP NetSrv 486/66 3319S00216
<PAGE>
7
HP Vectra 586/166 US61454975
HP Vectra 486/66 3449Y00543
HP Vectra 486/66 3502Y01193
HP Vectra 486/66 3502Y60988
HP NetSrv 586/66 3434S21054
Pinnacle Micro CD Burner 447100408
HP Scanjet Scanner 3265A45856
TTX Monitor 740014237
TTX Monitor 274B007673
TTX Monitor 30121095
TTX Monitor 5130273815
TTX Monitor 630854423
TTX Monitor 43 9770243AL
TTX Monitor 3430211636
TTX Monitor 5130029914
TTX Monitor 30476091
IBM Monitor 14 Inch/No Seria1
TTX Monitor 494A005057
TTX Monitor 540012980
Mistsubishi Monitor 303015008
TTX Monitor 165A011016
TTX Monitor 439780500AJ
TTX Monitor KFO-53907449
TTX Monitor 4325601 08AI
TTX Monitor 4505700032AM
TTX Monitor 2140012434
TTX Monitor 30368928
TTX Monitor 439770245AJ
TTX Monitor 439780036AJ
TTX Monitor KFO-53907173
TTX Monitor 30252725
TTX Monitor 24001427
TTX Monitor 240001311
TTX Monitor 20406079
TTX Monitor 240001075
TTX Monitor 439780498AJ
TTX Monitor 30371000
TTX Monitor 240001257
TTX Monitor 2140012432
TTX Monitor KFO-53907180
TTX Monitor KFO-53907367
TTX Monitor KFO-53907253
TTX Monitor KFO-53907453
TTX Monitor KFO-53907249
TTX Monitor 2E1-61006274
TTX Monitor KFO-53907171
<PAGE>
8
TTX Monitor KFO-53907459
TTX Monitor AFO-51902907
TTX Monitor KFO-53907141
TTX Monitor KFO-53907238
EverVision Monitor MNG-1 1200306
TTX Monitor 5130029763
TTX Monitor 5130029759
TTX Monitor 4530005163
BLACKBOX
BLACKBOX
BLACKBOX
TTX Monitor 439780030AJ
BLACKBOX
BLACKBOX
BLACKBOX
BLACKBOX
Clone 486/33 N/A
Clone 486/33 N/A
Clone 486/33 B.T.C. 04166
HP Vectra 486/40 3406A07048
HP Vectra 486/33 3304A19063
HP Vectra 486/33 3318500681
HP Vectra 486/33 3237A07585
HP Vectra 486/33 3339S02378
Clone 486/33 N/A
Clone 486/33 N/A
HP Vectra 586/75 MX55050232
HP Vectra 586/75 MX55050245
HP Vectra 586/75 MX55050182
HP Vectra 586/75 MX55050154
HP Vectra 586/75 NX55050239
HP Vectra 586/75 MX55050248
HP Vectra 586/75 MX55050074
HP Vectra 586/75 MX55050157
HP Vectra 586/66 MX55050233
TTX Monitor 3930001976
TTX Monitor KFO-53907366
TTX Monitor KFO-53907361
TTX Monitor KFO-53907364
TTX Monitor KFO-35907165
TTX Monitor KFO-53907162
TTX Monitor KFO-53907450
TTX Monitor KFO-53907357
TTX Monitor 384A005811
PRINTERS
<PAGE>
9
Panasonic 3FMBNH49841
Panasonic 3FMBNH49825
Epson 40U1I09152
HP DeskJet 660C SG5BI1C04B
IBM Lexmark 11-A1916
Mitsubishi M63257
Lexmark Optra R 11B9752
Genicom 9625-D-33518
HP 4 Plus Printer JPGK241537
<PAGE>
SCHEDULE 1.1
UPLINK MANAGEMENT SERVICES AGREEMENT
[attached]
<PAGE>
SCHEDULE 1.1
UPLINK MANAGEMENT SERVICES AGREEMENT
THIS AGREEMENT made as of the ______ day of __________, 1997.
BETWEEN:
COLORADO SATELLITE BROADCASTING, INC.
a corporation incorporated under the laws of Colorado
("CSB")
- and -
1248663 ONTARIO INC.
a corporation incorporated under the laws of Ontario
("124")
WHEREAS CSB is engaged in the adult movies business (the "Business");
AND WHEREAS under the terms of an Asset Purchase Agreement made September 5,
1997 among New Frontier Media, Inc., CSB and 124 (the "Asset Purchase
Agreement"), the parties hereto have agreed to enter into this Agreement;
AND WHEREAS CSB wishes to engage 124 and 124 wishes to be so engaged to provide
the Services, as, defined in SECTION 1, on behalf of CSB;
NOW THEREFORE THE PARTIES AGREE as follows in consideration of the payment of
$2.00, the receipt and sufficiency of which is hereby acknowledged:
ARTICLE 1. PROVISION OF SERVICES BY 124
124 agrees to operate, maintain, manage and sustain analog turnkey uplink,
playback and editing facilities utilizing the Leased Assets to transmit CSB's
programming on up to four C-Band satellite transponders serving the United
States market (the "Services"). 124 warrants that the playback and uplink to
such transponders, taken together, shall be available 99.5% of the time during
each year of the Term (as defined below). 124's responsibilities hereunder shall
include those duties set out in SCHEDULE "A". 124 expressly covenants to
perform the Services and all functions necessary for the operation of the Uplink
Facility as defined below. In order to assist 124 in this regard, CSB shall have
one of its own employees at the Uplink Facility; such
<PAGE>
2
employee shall be familiar with all current programming needs of CSB; such
employee shall comply with all reasonable rules and regulations from time to
time implemented by management of the Uplink Facility.
ARTICLE 2. LEASE OF EQUIPMENT BY COLORADO
2.1 LEASE. in consideration of the provision of Services by 124 in accordance
with the terms hereof, CSB agrees to lease to 124, for the Term those assets
(the "Leased Assets") identified on SCHEDULE "B" for a nominal lease payment of
US$2.00.
2.2 TITLE. Title to the Leased Assets shall at all times remain in CSB and at
no time during the Term shall title become vested in 124. Immediately upon
termination of this Agreement provided CSB is not then in default under this
Agreement, 124 shall release the Leased Assets to CSB and the Leased Assets
shall be removed from 124's premises at CSB's expense within 7 days after the
final day of the Term. All Leased Assets will be returned to CSB in the
operating order, repair and condition and in as good a condition as when
originally delivered to 124, ordinary wear and tear excepted, and be free and
clear of all liens other than those placed thereupon by CSB.
2.3 SECURITY INTEREST. CSB may register a security interest in the Leased
Assets as against 124 under the PERSONAL PROPERTY SECURITY ACT (Ontario) as a
cautionary filing for a period of three years which registration will be
discharged upon termination of this Agreement and the fulfillment of any
obligations owed by 124 to CSB under this Agreement.
2.4 REMOVAL OF LEASED ASSETS. The Leased Assets shall not be removed from the
Uplink Facility (as defined below), or the New Uplink Facility (as defined
below), without the prior written consent of CSB except where any of such Leased
Assets require off-site repair and maintenance.
2.5 MAINTENANCE COSTS. All labor costs related to the maintenance of the Leased
Assets shall be the responsibility of 124. 124 shall maintain industry-accepted
maintenance and repair standards. Subject to SECTION 2.6, 124 shall invoice
CSB, and CSB shall pay 124 upon receipt thereof, for all actual costs incurred
to purchase replacement parts for the Leased Assets or to replace any of the
Leased Assets. 124 shall not purchase any replacement part for the Leased Assets
with a cost exceeding US$5,000 without the prior consent of CSB and 124 shall
not be responsible for any service failure under this Agreement caused by any
delay in obtaining such consent.
2.6 LOSS OR DESTRUCTION. In the event of any loss or destruction of any
Leased Assets attributable solely to the negligence or wilful misconduct of
124, its subcontractors, or their employees, 124 shall provide a substitution
therefor of comparable quality which substitution shall be deemed to form
part of the Leased Assets.
2.7 ADDITIONAL ASSETS. Subject to SECTION 2.5, if 124 requires assets other
than the Leased Assets to comply with its obligations hereunder, the
responsibility for obtaining such assets, which shall not form part of the
Leased Assets, shall be that of 124.
<PAGE>
3
2.8 INSPECTION RIGHTS. CSB shall have access to the Leased Assets at all
times. CSB shall have the right, during 124's normal business hours and upon
reasonable notice to 124, to inspect 124's records with respect thereto
provided that CSB will conduct no such inspection which is likely to disrupt
124's business operations.
2.9 LICENSES, ETC. 124 shall maintain in effect, all licenses certificates,
permits, approvals and consents required by applicable law or by any
governmental body, agency or authority in connection with the use, operation and
maintenance of the Leased Assets and the Uplink Facility and no proceedings
which may result in the revocation, cancellation, suspension or modification of
any such licenses, certificates, permits, approvals or consents shall occur
without notice to CSB.
2.10 CONDITION OF ASSETS. CSB leases the Leased Assets to 124 on an as-is,
where-is basis and except as otherwise expressly stated in this Agreement, CSB
expressly disclaims and makes no representation or warranty of any sort in
respect of the Leased Assets. 124 expressly covenants that it has reviewed all
the Leased Assets and that the same are sufficient and necessary for the
provision of the Services.
ARTICLE 3. TERM
The term of this Agreement (the "Term") shall run for a period of a period of 3
years from the "Closing" (as that term is defined in the Asset Purchase
Agreement).
ARTICLE 4. PRICE
4.1 MONTHLY FEE. CSB agrees to pay to 124 the sum of US$80,000 per month plus
applicable taxes (the "Monthly Fee"). The Monthly Fee shall be payable by wire
transfer or by delivery of a certified cheque to be received by 124 on the _____
day of each calendar month during the Term.
4.2 TAXES. CSB will be subject to any goods and services tax under the EXCISE
TAX ACT (Canada) and any other consumer, retail, use or value-added tax that may
be chargeable in respect of the Monthly Fee.
4.3 INTERRUPTION. In the event of interruptions of the Services as a result of
failure by 124 to satisfy the terms and conditions hereof (which failure is not
coincidental with an event of Force Majeure), the Monthly Fee payable by CSB to
124 during the next calendar month shall be reduced pro rata having regard to
the proportion that the time of the interruptions of services bears to the total
number of hours in such month.
<PAGE>
4
ARTICLE 5. EARLY TERMINATION
5.1 PAYMENT ON EARLY TERMINATION. If CSB desires to terminate this Agreement
prior to the end of the Term, CSB shall give 124 not less than 30 days prior
written notice of its desire to do so and shall pay to 124, not as a penalty but
as a pre-estimation of damages sustained by 124, an amount equivalent to the
product of US$21,800 and the number of full calendar months then remaining in
the Term (the "Early Termination Fee"). CSB shall pay one-half of the Early
Termination Fee or US$200,000 (whichever is greater) on the effective date of
the termination and the remainder of the Early Termination Fee on the first to
occur of the first anniversary of the effective date of termination or on the
date which is half way between the effective date of termination and the date on
which this Agreement was originally intended to expire, whichever first occurs.
5.2 SPECIAL CIRCUMSTANCES. "Special Circumstances" exist when 124 is unable to
provide playback and uplink to CSB's four transponders so that the programming
on the transponders, taken together, is operative 99.5% of the time during each
year of the Term or when the action of transporting tape recordings from CSB to
124 for play-back consistently encounters unreasonable delays due solely to new
statutory, regulatory or policy-oriented governmental enforcements (and which
delays cannot be avoided by CSB and/or 124 acting reasonably) or where such
transportation becomes illegal. If Special Circumstances exist, CSB may
terminate the Agreement on 60 days notice to 124 and upon payment by CSB to 124
of all amounts owing hereunder to the effective date of termination, which
amounts shall not be paid where 124 is otherwise in default hereunder.
ARTICLE 6. DEFAULT
6.1 EVENTS OF DEFAULT. An event of default ("Event of Default") hereunder shall
be deemed to occur upon:
(a) any merger of 124 or conveyance, transfer or loan on substantially all
of the stock or assets of 124 other than to Douglas J. Duncan, Stuart
K. Duncan or a company controlled by them or either of them;
(b) the failure of 124 or CSB to observe or perform any covenant set out
in this Agreement, provided such failure has continued for 30 days
after notice thereof is given by the party not in default to the party
in default (and further provided that the failure need only continue
for 5 days if the default relates to a failure by CSB to pay the
Monthly Fee);
(c) the insolvency, bankruptcy, assignment for the benefit of creditors,
voluntary or involuntary petitioning for creditors' relief or the
appointment of a transferee or receiver by or for any party hereto; or
(d) the commencement of any proceeding which may result in the revocation,
cancellation, suspension or modification of any license, certificate,
permit,
<PAGE>
5
approval or consent required to operate the Leased Assets or the
Uplink Facility, which proceedings are not adjourned, dismissed, or
abandoned within 30 days after commencement thereof.
6.2 OCCURRENCE OF DEFAULT. Where an Event of Default has occurred, the party
not in default shall be entitled to rescind this Agreement upon notice to the
other party, which rescission shall be effective on the date and time specified
in such notice.
ARTICLE 7. INSURANCE
124 is not required to maintain insurance on the Leased Assets, however it shall
maintain comprehensive general liability insurance of not less than $2,000,000
per occurrence. CSB shall insure the Leased Assets for their replacement cost.
Each party will, upon request from the other, provide evidence reasonably
satisfactory to the other that such insurance is in full force and effect.
ARTICLE 8. FACILITIES
The services of 124 shall be principally carried on at 2500 Don Reid Drive,
Ottawa, Ontario, K1M 8P5 (the "Uplink Facility"). If 124 wishes to relocate
the Uplink Facility to a new facility, (the "New Uplink Facility"), the cost of
such relocation including uplink moving and installation costs will be borne by
124. CSB will be responsible for all reasonable costs, approved by CSB in
writing, in advance, such approval not to be unreasonably withheld, associated
with any necessary tenant finishes at the New Uplink Facility where such
finishes are solely attributable to the provision of the Services. Subsequent to
approval of such finishes by CSB, 124 shall submit invoices for same to CSB
subsequent to completion of such finishes and upon receipt of invoices from the
contractor providing such finishes, excluding invoices for cost-overruns which
will not be the responsibility of CSB except as expressly agreed to in writing
by CSB in advance; CSB shall pay such invoices upon receipt.
ARTICLE 9. INDEMNIFICATION
9.1 INDEMNIFICATION OF CSB. 124 shall hold harmless and indemnify CSB, its
subsidiaries, affiliates, agents and their respective officers, directors,
employees and customers and each of them from any portion of any loss, cost,
damage, claim, expense or liability, including but not limited to, liability
or alleged liability, as a result of injury to, or death of, any person or
damage to, or destruction or loss of any property arising out of, as a result
of, or in connection with the performance of this Agreement and directly or
indirectly caused by the acts or omissions, negligent or otherwise, or
willful misconduct of 124 or a contractor or an agent or a representative of
124, be it active or passive, except where such loss, cost, damage, claim,
expense or liability arises in material respect from the gross negligence or
willful misconduct of CSB, its officers, directors and other employees or
agents. As used in the preceding sentence, the words "any person" shall
include, but shall not be limited to, a contractor or an agent of 124 or
<PAGE>
6
CSB, or an employee of CSB, 124 or any such contractor or agent; and the words
"any property" shall include, but shall be limited to, property of CSB and
CSB's customers, or any such contractor or agent or an employee of any one of
them. Upon the request of CSB, 124 shall, at no cost or expense to CSB defend
any suit asserting claim for any loss, damage or liability specified above, and
124 shall pay any costs and legal fees that may be incurred by CSB in connection
with any such claims or suits or in enforcing the indemnity granted above.
9.2 INDEMNIFICATION OF 124. CSB shall hold harmless and indemnify 124, its
subsidiaries, affiliates, agents and their respective officers, directors,
employees and customers and each of them from any portion of any loss, cost,
damage, claim, expense or liability, including but not limited to, liability
or alleged liability, as a result of injury to, or death of, any person or
damage to, or destruction or loss of any property arising out of, as a result
of, or in connection with the performance of this Agreement and directly or
indirectly caused by the acts or omissions, negligent or otherwise, or
willful misconduct of the CSB or a contractor or an agent or a representative
of CSB, be it active or passive, except where such loss, cost, damage, claim,
expense or liability arises in material respect from the gross negligence or
willful misconduct of 124, its officers, directors and other employees or
agents. As used in the preceding sentence, the words "any person" shall
include, but shall not be limited to, a contractor or an agent of 124 or CSB,
or an employee of CSB 124 or any such contractor or agent and the words "any
property" shall include, but shall be limited to, property of 124, or any
such contractor or agent or an employee of any one of them. Upon the request
of 124, CSB shall, at no cost or expense to 124 defend any suit asserting
claim for any loss, damage or liability specified above, and CSB shall pay
any costs and legal fees that may be incurred by 124 in connection with any
such claims or suits or in enforcing the indemnity granted above.
ARTICLE 10. FORCE MAJEURE
10.1 DEFINITION. "Force Majeure" shall mean any of the following: prohibition
of acts by government or public agency, riot, war, hostility, strikes,
epidemics, fire, flood, earthquake, storm, tidal wave or other acts of nature
(including other extreme weather conditions), and all other reasonably
unpredictable or unforeseeable events beyond the control of the parties hereto.
10.2 EFFECT OF FORCE MAJEURE. Neither party shall be liable for its failure to
perform any of its obligations hereunder during any time period in which its, or
its contractor's or vendor's performance, is delayed by Force Majeure precluding
performance, provided the cause for such failure is beyond reasonable control
and without the material fault or negligence of the nonperforming party or its
subcontractors, and further provided that the party suffering from such delay
notifies the other party of the delay as provided in SECTION 10.3 (an "Excusable
Delay").
10.3 NOTIFICATION. If one party has been prevented from performing its
responsibilities stipulated in this Agreement because of an event of Force
Majeure, it shall notify the other party writing within fourteen (14) days after
the occurrence of such event and shall act to mitigate damages, if possible. If
any event of Force Majeure occurs, no party shall be liable for any damage,
increased costs or losses that another party may sustain by reason of Excusable
Delay. The party claiming Force Majeure shall take appropriate measures to
mitigate or remove the effects of
<PAGE>
7
Force Majeure and, within the shortest possible time, resume as soon as possible
performance under this Agreement affected by the event of Force Majeure.
ARTICLE 11. DISPUTE RESOLUTION
If a dispute arises from or in connection with this Agreement, the claiming
party shall promptly notify the other party in a dated notice that a dispute has
arisen and describe the nature of the dispute. If no settlement can be reached
through consultation, a demand in writing may be made by either party to the
other that such dispute, controversy or claim be submitted to arbitration. Each
of 124 and CSB shall be entitled to appoint one arbitrator and the two
arbitrators so chosen shall select a third arbitrator. All arbitrations
authorized by this Agreement shall be conducted in accordance with the rules of
the Arbitration and Mediation Institute of Ontario and the ARBITRATION ACT, 1991
(Ontario). If either party does not reasonably comply with a final decision or
award made by the arbitrators, such non-complying party shall bear all costs and
expenses, including attorney's fees incurred by the other party in obtaining
enforcement of the decision or award. Otherwise, all costs of the arbitration
authorized by this Agreement shall be borne equally by the parties unless
otherwise ordered in the arbitration award. The parties agree not to take any
steps or actions to prevent or delay the enforcement of the decision or award.
ARTICLE 12. COSTS
Should any dispute be commenced between the parties concerning any provision of
this Agreement or the rights and duties of any party in relation thereto, the
party prevailing in such dispute shall be entitled, in addition to such other
relief as may be granted, to a reasonable sum as and for its attorneys fees in
such connection with enforcing its rights or defending itself, as the case may
be.
ARTICLE 13. NOTICE
Any notice, demand or other communication required or permitted to be given to
any party to this Agreement shall be in writing and shall be either personally
delivered or sent by registered mail, courier or telecopier. Any notice given
pursuant to this Agreement shall be sent to the intended recipient at its
address as follows:
To: Colorado Satellite Broadcasting Inc.
1050 Walnut Street
Suite 301
Boulder, Colorado
U.S.A. 80302
Attention: Mark Kreloff
<PAGE>
8
To: 1248663 Ontario Inc.
2500 Don Reid Drive
Ottawa, Ontario
Canada K1H 8P5
Attention: Graham Fournier
or such other address, facsimile number or individual as may be designated by
notice by any party to the other. Any communication given by personal delivery
shall be conclusively deemed to have been given on the day of actual delivery
thereof and, if given by registered mail, on the 5th business day following the
deposit thereof in the mail and, if given by facsimile, on the day of
transmittal thereof. If the party giving any communication knows or ought
reasonably to know of any difficulties with the postal system which might affect
the delivery of mail, any such communication shall not be mailed but shall be
given by personal delivery or by telex.
ARTICLE 14. ENTIRE AGREEMENT
This Agreement constitutes the entire Agreement between parties pertaining to
its subject matter and supersedes all prior and contemporaneous agreements,
understandings, negotiations, discussions, whether oral or written of the
parties.
ARTICLE 15. ASSIGNMENT
Neither party may, without the prior written consent of the other party, assign,
sublease or otherwise transfer its rights or obligations hereunder.
Notwithstanding the foregoing, the parties acknowledge that 124 may and intends
to subcontract its rights and obligations hereunder to Fifth Dimension Satcom
Inc. ("Satcom") provided that Satcom shall throughout the Term be controlled
directly or indirectly by Stuart K. Duncan and/or Douglas J. Duncan. 124 shall
be responsible for all acts and omissions of Satcom in relation to the
performance of such subcontract.
ARTICLE 16. GOVERNING LAW
This Agreement shall be given by and construed in accordance with the laws in
force in the Province of Ontario and federal laws applicable therein.
ARTICLE 17. NO PARTNERSHIP
The parties agree that this Agreement is an agreement for the purchase of
services and does not create any partnership or joint venture between the
parties.
<PAGE>
9
ARTICLE 18. COUNTERPARTS
This Agreement and amendment thereto may be executed in any number of
counterparts, all of which taken together, shall constitute one and the same
instrument, and any of the parties hereto may execute this Agreement by signing
any such counterpart.
ARTICLE 19. SUCCESSORS AND ASSIGNS
This Agreement shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and permitted assigns.
IN WITNESS WHEREOF the parties have executed this Agreement.
COLORADO SATELLITE BROADCASTING, INC.
Per:
1248663 ONTARIO INC.
Per:
<PAGE>
SCHEDULE "A"
SERVICES
124 shall
(a) review scheduling;
(b) maintain film title inventory;
(c) provide DIVICAM digital capabilities along with DVD play-back operations;
(d) provide notification to CSB of any interruption of services to CSB's
subscribers as soon as reasonably possible after 124 becomes aware of such
interruption;
(e) provide an employee on-site at the Uplink Facility on a twenty-four hour
basis, which employee shall have the technical expertise to respond quickly
and effectively to any problems experienced by CSB's subscribers; and
(f) provide office facilities for a representative of CSB who shall have full
access on a twenty-four hours basis to the Uplink Facility.
<PAGE>
SCHEDULE "B"
LIST OF LEASED ASSETS
DESCRIPTION MODEL SERIAL NUMBER NUMBER/COMMENTS
- ----------- ----- ------------- ---------------
EXOTICA
Exciter WB461 126090
Audio Compressor MDC 2001 CK277816
TBC DPS235 5E235020
VDA PHASE 3 108 2
ADA PHASE 3 204A 2
Monitor PANASONIC SB70 EK1650001
Patch panel ADC
VAX CPU 630QY-A2 WF83010504
UNIDEN SAT. RX SQ530
Comstream digital RX DBR401 7929
VCII & scrambler SP2000080
VCII & descrambler P00150371
terminal VT420 TA5I4F6330
Keyboard HJ432V7987
SmartUps 700
Digital Printer LA75 TY40141234
VARIAN GEN 1 TXMTR. VZJ2700D4F1 S159XXX
EXXTASY
Video Proc. Amp. VPA331N 951222
Audio Processor MDC2001 520-04584-2794
Patch panel
VAX CPU WF63507157
GI SAT RX. 650I
VCII & scrambler SP2000050
VCII & descrambler A020086DB
terminal VT420 TA245S9300
keyboard 108RX33S-1E
Exiter WB461 107
VARIAN GEN II TXMTR. VZJ2700GAA033 559
Monitor S901 KA4420329
Modem PM14400FXMT
Micro Mixer 2
TRUE BLUE
Exiter WB461 123
Monitor BT-S901Y KA4440151
TBC DPS-235 4K235050
Audio Compressor MDC2001 520-03719-0793
<PAGE>
2
VDA VDA108 2
Patch panel
VAX CPU WF71610562
DIGITAL RX DBR401 7931
SAT RX GI 650I
VCII PLUS SCRAMBLER S0000003
VCII PLUS DESCRAMBLER P00264197
VARIAN GEN I TXMTR X31599FG
APC UPS 600
Micro Mixer 2
PROMO
VARIAN GEN II TXMTR. VZJ2700GAA033 317
W/G switch 24019-G1 27
Dummy Load 1.5KW
SA video Exiter 7550B
Neico Waveguide switch 24019-GI 16
Neico Wavegaide switch 19
Neico Waveguide switch 36
Neico Waveguide switch 26
Neico Waveguide switch 61
Waveguide switch 880
Termination 3KW
termination 2
HYPBIDS 2
AYDIN TXMTR. 103-E1 4
ANDREW 4.5 meter antenna
1 PORT feed
POL control
POL control panel
TX Reject filter
6.1 meter antenna
DE-ICING 6.1 meter
1.8 meter RX only
KU LNB
Block Down Converter 140059 4370000411
Block Down Converter 140059 4370000410
Leitch Video Processing VPA-331 ?
Dumb Terminal VT420 TA412Z9634
Keyboard LK401-AA HJ347E4009
Comstream Digital Broadcast DBR101 1069
receiver
Video Exiter VEL-6-8506 194200
Video Exiter VEL-6-8506 194201
Radiation Meter 8616 21009
<PAGE>
3
TEST EQUIPMENT
TMS 3551A 2214A12107
Radiation Meter 8616 21010
Radiation Probe 8621C 22015
Vector Scope 520A 833079
Power Meter 436A 2709A27119
Transmission set test 3555B 0992A03445
Test oscillator 654A 0951A02640
Spectrum analyzer 757 1416A02117
Frequency Counter 534A 2805
Video Waveform Monitor RM529 M0D1880
Video Waveform Monitor RM529 14423
TECHS
Racks
83" with 2 power bars
85" with 1 power
strip & 1 power
86" bar with 2 power
Work Bench 6 strips with upper
shelf
Desk 5 1
Chairs 2
Shelf 4 1
Book shelf 34" 1
Book Shelf 48" 1
Storage Cabinet 3x6 2
3 phase 225 Amp power panel NLAB442A 1
3 phase 50 amp breakers 4
30 amp Dual 1
15 amp 7
15 amp Dual 1
60 amp Dual 1
40 amp Dual 1
3 phase 225 Amp Power panel NBC324 1
3 phase 50 amp Breakers 2
15 amp 7
30 amp 1
Dehydrator 1
Misc. Tolls 1
75 Kua 600v Transformer 2
45 Kua 600v Transformer 1
Air handling mix units 2
3 pole 600v CCT Breakers 3
100x3 Interconnect cable between Pwr rm. &
transformers
125 amp 3 phase panel QL42412 5 antenna deice
<PAGE>
4
50amp 2 pole 2
l5 amp 2
LIBRARY
cabinets full frame pullout 70027 2
1/2" large Betacam shelves T7402 24
Add-on frame pullout cabinet 70028 1
1/2" large Beracam shelves T7402 6
7 rack Stationary shelves 9
6 rack Stationary shelves 4 - 15 Beta/shelf
capacity
6 rack Stationary shelf 1 - 20 Beta/shelf
capacity
3x6x1 steel storage shelf 1
3x6x2 steel storage shelf 1
6x6x2 steel storage shelf 2
UPSTAIRS SCREENING
Betacam recorder UVW-1800 11858
3/4" U-matic recorder VO-5600 25568
3/4" U-matic recorder VO-5850 20248
Audiolab Tape Degausser TD511560 51404
PROGRAMMING OFFICE
3x6x1 steel storage shelf
6 rack stationary shelf 15 Beta/shelf
capacity
5x2.5 office desk
3 shelf computer trolley
Samsung Syncmaster 3Ne H1BD900695 Color computer
monitor
Hewlett Packard Vectra VL MX55050221 Pentium computer
5/75 series 3
RACK 1- PLAYOUT AREA
19X32X84 INCHES
Leitch lolo generator inseter LGI-1302N
Hedco Hedline 4xl switch SVS 345 A932188 SVS 345
Hedco Hedline 4xl switch SVS 345 A931938
Hedco Hedline 4x1 switch SVS 345 A932187
Leitch Sync pulse generator SPG-1302N 9607586
PP1 ADC 24X2 Audio patch
panel
HEDCO (10 VIDEO DAS) DA-6000 87C170
PP2 26X3 Video patch panel
PP3 26X3 Video patch panel
PP4 26X3 Video patch panel
<PAGE>
5
PP5 26X3 Video patch panel
PP6 26X3 Video patch panel
PP7 26Xf Audio patch panel
WBS Audio DA M605A 5
PP8 26X2 Audio patch panel
LEITCH DA FR-662 841437
(7+2POWER SUPPLIES)
ROLLING RACK -- PLAYOUT AREA
26X18X36 INCHES
Monitor - JVC 8 INCH 10132484
Computer monitor- TTX 15 2E1-61006011
INCH
COMPAQ DESKPRO 5100 6617HWZ5P990
PENTIUM COMPUTER
COMPAQ KEYBOARD 1LJ39D302954
RACK 2 -- PLAYOUT AREA
19X32X84 INCHES
Monitor - PANASONIC 8 KA3350366
INCH
Monitor - BURLE 8 INCH 117721
Monitor - Sony 8 INCH 2005004
Monitor - Sony 8 INCH 2000515
Panasonic WJ-MX50 Digital
AV mixer
Plastic Trays
Tektronix type 528 Wavefrom
monitor
Tektronix 1420 NTSC B040742
Vectorscope
Monitor - CITIZEN 9 INCH 31201696
Fostec Personal Monitor 6301B 0236580KU
speaker
Videoquip Research PHASE 3 RS-41A 6317
stereo audio 4X1 RTR
Videoquip Research PHASE 3 RS-41V 6316
video 4X1 RTR
SonyBetacam SP PVW-2600 13190
Videocassette player
rack drawer 17X18X5" DEEP
RACK 3 -- PLAYOUT AREA
19X32X84 INCHES
Monitor - HITACHI 13 INCH 3060578
Dorrough Loudness monitor MODEL 40-A
<PAGE>
6
Dorrough Loudness monitor MODEL 40-A
Sony Betacam SP PVW-2600 15379
Videocassette player
Sony Betacam SP PVW-2600 11677
Videocassette player
Videotech VIS-1201 12X1
switcher
ALPHA STAR STARTRAK PIHB0040854
1000
Satellite receiver
Monitor -Panasonic 8 INCH KA4420172
Monitor - Panasonic 8 INCH KA6230050
Sony Betacam SP PVW-2600 12829
Videocassette player
RACK 4 - PLAYOUT AREA
19X32X84 INCHES
Monitor - Burle 8 INCH 117712
Monitor - JVC 8 INCH 7030254
Clock
Sony Betacam SP PBC-2600 401
Videocassette player
Sony Betacam SP PVW-2600 104030
Videocassette player
Sony Betacam SP PVW-2600 15294
Videocassette player
Sony Betacam SP PVW-2600 15256
Videocassette player
Ravk drawer 17X18X5" DEEP
Panasonic Editing AG-A770 2A1574KB
Controller power supply
EXXXTASY/TRUE BLUE PLAYOUT
CABINET 72X57X78 INCHES
Monitor - Burle 8 INCH 109112
Monitor - Burle 8 INCH 117731
Monitor - Burle 8 INCH 92545
Monitor - Burle 8 INCH 92559
Monitor - Burle 8 INCH 92521
Monitor - Burle 8 INCH 92525
Monitor - JVC 8 INCH 10132495
Monitor - JVC 8 INCH 10132489
Monitor - Citizen 9 INCH 31201462
Monitor - Citizen 9 INCH 31201241
Monitor - Sony HR 2015899
TRINITRON 13"
<PAGE>
7
Fostex personal Monitor 6301B 0236579KU
speaker
Fostex personal Monitor 6301B 0235566KI
speaker
Dorrough Loudness Monitor 40-A
Dorrough Loudness Monitor 40-A
Thomson CSF 5500A
LABORATORIES INC.color
corrector
Thomson CSF
LABORATORIES INC. Color
collector Remote
5TH DIMENSION logo
ON/OFF switch
Tektronix type 528 Waveform
Monitor
Tektronix 1420 NTSC
Vectorscope
5TH DIMENSION VCR TBC
Remote control panel
5TH DIMENSION VCR TBC
Remote control panel
5TH DIMENSION audio
monitor control panel
Panasonic systems Editing AG-A770
controller
Panasonic special Effects WJ-5500A
generator/switcher
Viewfinder transport
controller 2
Videotek 12X1 switcher VIS-1201
Monitor - Commodore 13" 1084S 1052733
Commodore Amiga 2000 HD CA1077135
CPU
Commodore Amiga keyboard MT9004
Rolling cabinet 24X24X32"
VIEWING ROOM
Monitor - JVC 8 INCH TM-923 7030255
Sony Betacam SP PVW-2800 20630
Videocassette recorder
Sony Betacam SP UVW-1600 10457
Videocassette player
Monitor - HITACHI 13 INCH 3080612
Monitor -Panasonic 13" CT-1331YC FE4250100
Tektronix 1740A B015212
Waveform/vectorscope monitor
<PAGE>
8
Sony Dynamic MDR-7502 stereo headphones
Monitor - Sanyo 13" VMC-7514 H8201655
Table 60X30X29"
Cabinet 60X68X16"
Rolling Table 47X33X32
Cabinet 27X22X48
RACK 5 - VIEWING ROOM
Videoquip audio amplifier MP204A 6640
Digital video systems TBC DPS-170 60530126
PPI 26X1 video patch panel
PP2 26X3 audio patch panel
Panasonic S-VHS AG-7355 L1TB00065
Videocassette recorder
Sony Betacam SP PVW-2800 17174
Videocassette recorder
Sony 3/4 INCH U-MATIC BVU-800 15430
Videocassette recorder
Sony Betacam SP UVW-1200 10652
Videocassette player
Rack drawer 17X18X5
SES COM stereo line driver PO-55
APHEX 10/4 Interface 124A 10356
RACK 6 - VIEWING ROOM
PPI 26X3 Audio/video patch
panel
Videoquip Research PHASE 3 VDA-108 6323
video DA
Sony Betacam SP PVW-2600 15440
Videocassette player
OTHER ITEMS
Chairs 8
Tables 2 - 60X30X27"
4 Drawer legal size filling
cabinet
Desk with 4 drawers 60X30X29
Room divider 60X73"
12" fan
12 Pigeon-hole message sender
5-slot wall-mounted file holder
Combination peg board/white 23X35"
board
Horizontal blind 47X84"
Horizontal Blind 2 - 24X84"
<PAGE>
9
EDIT SUITE
Ampex ADO 3000 Keyboard 1420180-016 1631189
ADO Terminal W/disk drive 1465092-030 971939
ADO preview monitor-Sanyo VMC-7514 H 8101590
Audio Patch panel x 24 input N/A N/A
Video Patch panel x 24 input N/A N/A
Amiga Computer 3000 MT 9201 Tower W/Toaster
Sony Betacam Player PVW-2600 10430
Sony Betacam Recorder PVW-2800 20630
Panasonic S-VHS Recorder AG-D5850P F4T00436
Panasonic TV Monitor BT-S9014 KA4420172
Panasonic TV Monitor BT-S9014 KA3350366
Panasonic TV Monitor BT-S1360Y FE4120037
TTX Computer Monitor TTX-3501 424A046672
Leitch Video D.A. FR-662
Leitch Video D.A. rack frame (A) FR682AV
Waveform/Vectorscope Tektronix 1740 B011764
Videotek Prodigy Switcher 1950560
Videotek Prod.Frame 1950561
Panasonic Edit controller AV-950 H3A1336D1
Keytronic keyboard (edit
input) EO3435 6159366
SoundCraft Audio mixer RWI277 851
SoundCraft mixer power supply CPS 150 RW8000 020356
SoundCraft GPI interface VSA 24 II
Peavey Interface Amplifier 1A 10/4 W/O 7521237
Peavey Interface Amplifier 1A 10/4 W/O 7521241
Sony Compact Disk player CDP-311 A700765
Tectonix audio cassette player RS-TR979 FH3BA01358
Samson audio amplifier Servo 150
Ramsa speakers 160 watts WS-A10-K 372005
Ramsa speakers 160 watts WS-A10-K 372006
Burle B&W monitor TC1909 92545
Burle B&W monitor TC1909 92559
T.B.C. Remote controller RMC 11 Grimms
Enterprises
Winstead Edit console W/ 2 2.5" metal
racks
3 level wood shelf unit- custom made
monitors
metal tape shelves 2
4 wheel computer workstation 2
high back 5-wheel chairs 2
1 Microphone stand
Microphone boom/holder
Electrovoice 635-A microphone 2
power bars 3
Monitor TMA-9U 1603044 shop use
<PAGE>
10
VTR Betacam PVW-2600 15305 under repair
Character Generator WJ-KB50 3XZ04473 spare
Character Generator WJ-KB50 20ZOO815 spare
Video DA LEITCH A940244 spare
Video switcher RS 41-V 6659 to be installed
Audio switcher RS 41-A 6660 to be installed
Audio Meter VP-2 6633 to be installed
Audio Meter VP-2 6318 to be installed
Audio DA ADA 204 A 6320 to be installed
Effect Generator WJ-MX 50 3XA03302 spare
VHS VCR SVP-3000 0010145-D4 under repair
VHS VCR SLV-770HF under repair
Computer interface ISP-15 1001 spare
Computer interface ISP-15 1002 spare
Computer interface ISP-15 1003 spare
Computer interface ISP-15 1004 spare
Computer interface ISP-15 1005 spare
Computer interface ISP-15 1006 spare
Effect Generator WJ-5500 52516 under repair
Service manual Sony UVW 1600/1800
vol.1
Service manual Sony UVW 1600/1800
vol.2
Service manual Sony PVW 2600
vol.1
Service manual Sony PVW 2600 vol.2
Head protrusion Meter
Weller soldering station
Ditheral adjusting screw J-6080-013-A 4
Drum eccentricity gauge J-6001-820-A l
Drum eccentricity gauge J-6001-830-A 1
Drum eccentricity gauge J-6001-840-A 1
Drum eccentricity gauge J-6087-000-A l
Flatness plate J-6086-5 70-A
Rell table tension gauze J-6080-01 1-A
Reel motor shaft gauze J-6320-870-A
Reel motor shaft jig J-6 150-960-A
Inspection mirror 7-723-902-00
Tension scale 50G 7-723-050-20
Tension scale 100G 7-723-050-30
Tension scale 20G 7-723-050-01
Tension scale 500G 7-723-050-50
Alignment tape CR2-1B 8-960-096-01
Alignment tape CR5-1A 8-960-096-01
Thickness gauge 9-911-053-00
Tentelometer
<PAGE>
11
Wire clearance gauge J-6152-450-A
Reel high table gauge J-6320-680-A
Tension regulator J-6190-800-A
Thickness gauge J 6041-670-A
Tape guide adjust tool J 6321-500-A
Dial tension gauge
Cassette reference
Tension adjust fixture
Extension board
L shaped wrench 2
wrench
Extension board EX 278 J-6332-780-A
Extension board A-6766-389-A
Extension board EX 279
Thickness gauge J 6041-670-A
Tape guide adjust tool J 6321-500-A
Dial tension gauge
Cassette reference
Tension adjust fixture
Extension board
L shaped wrench
L shaped wrench
wrench
Oil NT 68
Extension board EX 278 J-6332-780-A
Extension board
Extension board EX 279
Work bench
chair
Rubbermaid mobile cart
MILD FINANCING EQUIPMENT
PVW 2800 Betacam SP 21351
Recorder
PVW 2600 Betacam SP Player 15294
PVW 2600 Betacam SP Player 15305
PVW 2600 Betacam SP Player 15213
PVW 2600 Betacam SP Player 15440
S-VHS Recorder SONY SVT 10145
3000
UVW-1200 Betacam SP Player 10652
DPS 235 TBC Frame SYNC. 4K235050
TEKTRONIX 1740A BO 15212
WFM/VECT
TEKTRONIX TSG 130A
<PAGE>
12
GEN.AUD/VID
AUDIO Monitor MP 204A 6640
PHASE 3 Extended Range 6633
Audio Meter
RS 41V 4X1 Video Routing 6659
RS 41A 4X1 Stereo Audio 6660
Routing
RS 41V 4X1 Video Routing 6316
RS 41A 4X1 Stereo Audio 6317
Routing
ADA 204 A Audio DA 6638
VDA 108 Video DA 6319
ADA 204 A Audio DA 6320
VDA 108 Video DA 6323
ADA 204 A Audio DA 6321
VDA 108 Video DA 6635
Phase 3 Extended Range Audio 6318
Meter
ISP-15 Computer Interface 1001
ISP-15 Computer Interface 1002
ISP-15 Computer Interface 1003
ISP-15 Computer Interface 1004
ISP-15 Computer Interface 1005
ISP-15 Computer Interface 1006
386 PC Computer & VGA
Monitor
PELCO VS5104 Video 1682 4K
Switcher
APHEX 10/4 Audio Interface 10356
Model 124A
HITACHI CM 151U Color 3060578
Monitor
HITACHI CM 151U Color 3080612
Monitor
HITACHI CT 1396VM S4E036167
Video/Audio Monitor
SANYO VMC-7514 Color H8101558
Audio/Video
SANYO VMC-7514 Color H8101472
Audio/Video
SANYO VMC-7514 Color H8101590
Audio/Video
SANYO VMC-7514 Color H8101437
Audio/Video
SANYO VMC-7514 Color H8201655
Audio/Video
<PAGE>
13
MCL Klystron Power Amps 1363
MCL Klystron Power Amps 1364
Aydin Klystron Power Amp
Miteq video exciters (2) 194201
Uniden Satellite Receivers (2)
Domestic 2.4 metre TVRO.
Make unknown
Mitsubishi UPS 30KVA
4kw Exide UPS
Miteq Transmit Interface Unit 194650
Specialty uWave 1:1 Protection 3379-001
switch
VA936L12 Varian 12 ch 71226
klystron tubes
VA936L12 Varian 12 ch 71170
klystron tubes
Thompson 12 ch klystron tube 000.260
Delta 30 kva transformer 600-
380 VAC
transformer
General Instruments 1.2m vsat
Comstream modem
lot of waveguide and w/g
switches
Square D AC mains enclosed
switches (4)
3 phase 125 amp distribution
box
Videocipher RS Module
<PAGE>
SCHEDULE 1.2
CALL CENTER INTERIM SERVICES AGREEMENT
[attached]
<PAGE>
SCHEDULE 1.2
CALL CENTER INTERIM SERVICE AGREEMENT
THIS AGREEMENT made as of the _____ day of __________, 1997.
BETWEEN:
COLORADO SATELLITE BROADCASTING, INC.
a corporation incorporated under the laws of Colorado
("CSB")
- and -
1248663 ONTARIO INC.
a corporation incorporated under the laws of Ontario
("124")
WHEREAS CSB is engaged in the adult movies business (the "Business");
AND WHEREAS under the terms of an Asset Purchase Agreement made September 5,
1997 among New Frontier Media, Inc., CSB and 124 (the "Asset Purchase
Agreement"), the parties hereto have agreed to enter into this Agreement;
AND WHEREAS CSB wishes to engage 124 and 124 wishes to be so engaged to
provide the Services, as defined in SECTION 1, for the call center to be
located at 1825 Woodward Drive, Ottawa, Ontario (the "Call Center") on an
interim basis on behalf of CSB;
NOW THEREFORE THE PARTIES AGREE as follows in consideration of the payment of
$2.00, the receipt and sufficiency of which is hereby acknowledged:
ARTICLE 1. PROVISION OF SERVICES BY 124
1.1 SERVICES. Subject to the terms and conditions of this Agreement, CSB
shall retain 124 to carry out the services and 124 shall render the services
as set out in SCHEDULE "A" (the "Services"). 124 hereby expressly covenants
to perform the Services and all other functions reasonably necessary for the
operation of a call center in respect of the Business.
<PAGE>
2
1.2 COLLECTIONS. 124 agrees to deposit all amounts collected from subscribers
to the programming offered by the Business in such accounts as directed from
time to time by CSB, and until deposited all such amounts will be held in trust
by 124 for the benefit of CSB.
ARTICLE 2. LEASE OF EQUIPMENT
2.1 LEASE. In consideration of the provision of the Services by 124 in
accordance with the terms and conditions of this Agreement CSB agrees to
lease to 124, for the Term (as defined in ARTICLE 3) those assets (the
"Leased Assets") identified on SCHEDULE "B" for a nominal lease payment of
US$2.00.
2.2 TITLE. Title to the Leased Assets shall at all times remain in CSB and at
no time during the Term shall title become vested in 124. Immediately upon
termination of this Agreement provided CSB is not then in default under this
Agreement, 124 shall release the Leased Assets to CSB and the Leased Assets
shall be removed from 124's premises at CSB's expense within 7 days after the
final day of the Term. All Leased Assets will be returned to CSB in the
operating order, repair and condition and in as good a condition as when
originally delivered to 124, ordinary wear and tear excepted, and be free and
clear of all liens other than those placed thereupon by CSB.
2.3 SECURITY INTEREST. CSB may register a security interest in the Leased
Assets as against 124 under the PERSONAL PROPERTY SECURITY ACT (Ontario) as a
cautionary filing for a period or one year which registration will be
discharged upon termination of this Agreement and the fulfillment of any
obligations owed by 124 to CSB under this Agreement.
2.4 REMOVAL OF LEASED ASSETS. The Leased Assets shall not be removed from the
Call Center without the prior written consent of CSB, except where any such
Leased Assets require off-site repair and maintenance.
2.5 MAINTENANCE COSTS. All labor costs related to the maintenance of the
Leased Assets shall be the responsibility of 124. 124 shall maintain
industry-accepted maintenance and repair standards. Subject to SECTION 2.6,
124 shall invoice CSB, and CSB shall pay 124 upon receipt thereof, for all
actual costs incurred to purchase replacement parts for the Leased Assets or
to replace any of the Leased Assets.
2.6 LOSS OR DESTRUCTION. In the event of any loss or destruction of any
Leased Assets attributable solely to the negligence or wilful misconduct of
124, its subcontractors, or their employees, 124 shall provide a substitution
therefor of comparable quality which substitution shall be deemed to form
part of the Leased Assets.
2.7 ADDITIONAL ASSETS. Subject to SECTION 2.5, if 124 requires assets other
than the Leased Assets to comply with its obligations hereunder, the
responsibility for obtaining such assets, which shall not form part of the
Leased Assets, shall be that of 124.
<PAGE>
3
2.8 INSPECTION RIGHTS. CSB shall have the right, during 124's normal business
hours and upon reasonable notice to 124, to inspect the Leased Assets and
124's records with respect thereto provided that CSB will conduct no such
inspection which is likely to disrupt 124's business operations.
2.9 LICENSES, ETC. 124 shall maintain in effect, all licenses, certificates,
permits, approvals and consents required by applicable law or by any
governmental body, agency or authority in connection with the use, operation
and maintenance of the Leased Assets.
2.10 CONDITION OF ASSETS. CSB leases the Leased Assets to 124 on an as-is,
where-is basis and except as otherwise expressly stated in this Agreement,
CSB expressly disclaims and makes no representation or warranty of any sort
in respect of the Leased Assets. 124 expressly covenants that it has reviewed
all the Leased Assets and that the same are sufficient and necessary for the
provision of the Services.
ARTICLE 3. TERM
The term of this Agreement (the "Term") shall run for a period of 9 months from
the "Closing" (as that term is defined in the Asset Purchase Agreement).
ARTICLE 4. PRICE AND PAYMENT
4.1 MONTHLY FEE. CSB agrees to pay to 124 the sum of US$275,000.00 per month
plus applicable taxes (the "Monthly" Fee"). The Monthly Fee shall be payable
by wire transfer or by delivery of a certified cheque to be received by 124
on the ___day of each calendar month during the Term.
4.2 TAXES. CSB will be subject to any goods and services tax under the EXCISE
TAX ACT (Canada) and any other consumer, retail, use or value-added tax that
may be chargeable in respect of the Monthly Fee.
4.3 INTERRUPTION. In the event of any interruption of the Services as a
result of failure by 124 to satisfy the terms and conditions hereof (which
failure is not coincidental with in event of Force Majeure), the Monthly Fee
payable by CSB to 124 during the next calendar month shall be reduced by the
actual amount of damages sustained by CSB as a result of such interruption.
ARTICLE 5. EARLY TERMINATION
5.1 NOTICE OF TERMINATION. CSB may terminate this Agreement upon the delivery
by CSB, on not fewer than 30 days written notice (the "Termination Notice"),
to 124 of its intention to terminate. Termination shall be deemed to occur on
the 30th day following the Termination Notice (the "Termination Date").
<PAGE>
4
5.2 PAYMENT ON EARLY TERMINATION. Upon termination pursuant to SECTION 5.1,
provided an Event of Default on the part of 124 is not then in effect, CSB
shall pay to 124 any Monthly Fee due under this Agreement prior to the
Termination Date. Upon payment thereof together with any other amounts owing
by CSB to 124 under this Agreement, CSB shall be deemed to have been
completely released by 124 in respect of its obligations under this Agreement.
ARTICLE 6. DEFAULT
6.1 EVENTS OF DEFAULT. An event of default ("Event of Default") shall be
deemed to occur upon:
(a) any merger of 124 or conveyance, transfer or loan of
substantially all of the stock or assets of 124 other than to
Douglas J. Duncan, Stuart K. Duncan or a company controlled by
them or either of them;
(b) the failure of 124 or CSB to observe or perform any covenant set
out in this Agreement, provided such failure has continued for 30
days after notice thereof is given by the party not in default to
the party in default (and further provided that the failure need
only continue for 5 days if the default relates to a failure by
CSB to pay the Monthly Fee); or
(c) the insolvency, bankruptcy, assignment for the benefit of
creditors, voluntary or involuntary petitioning for creditors'
relief or the appointment of a transferee or receiver by or for
any party hereto.
6.2 OCCURRENCE OF DEFAULT. Where an Event of Default has occurred, the party
not in default shall be entitled to rescind this Agreement upon notice to the
other party, which rescission shall be effective on the date and time
specified in such notice.
ARTICLE 7. INSURANCE
124 is not required to maintain insurance on the Leased Assets, however it shall
maintain comprehensive general liability insurance of not less than $2,000,000
per occurrence. CSB shall insure the Leased Assets for their replacement cost.
Each party will, upon request from the other, provide evidence reasonably
satisfactory to the other that such insurance is in full force and effect.
ARTICLE 8. INDEMNIFICATION
8.1 INDEMNIFICATION OF CSB. 124 shall hold harmless and indemnify CSB, its
subsidiaries, affiliates, agents and their respective officers, directors,
employees and customers and each of them from any portion of any loss, cost,
damage, claim, expense or liability, including but not limited to, liability
or alleged liability, as a result of injury to, or death of, any person or
damage to, or destruction or loss of any property arising out of, as a
result of, or in connection with the
<PAGE>
5
performance of this Agreement and directly or indirectly caused by the acts
or omissions, negligent or otherwise, or willful misconduct of 124 or a
contractor or an agent or a representative of 124, be it active or passive,
except there such loss, cost, damage, claim, expense or liability arises in
material respect from the gross negligence or willful misconduct of CSB, its
officers, directors and other employees or agents. As used in the preceding
sentence, the words "any person" shall include, but shall not be limited to,
a contractor or an agent of 124 or CSB, or an employee of CSB, 124 or any
such contractor or agent; and the words "any property" shall include, but
shall be limited to, property of CSB and CSB's customers, or any such
contractor or agent or an employee of any one of them. Upon the request of
CSB, 124 shall, at no cost or expense to CSB defend any suit asserting claim
for any loss, damage or liability specified above, and 124 shall pay any
costs and legal fees that may be incurred by CSB in connection with any such
claims or suits or in enforcing the indemnity granted above.
8.2 INDEMNIFICATION OF 124. CSB shall hold harmless and indemnify 124, its
subsidiaries, affiliates, agents and their respective officers, directors,
employees and customers and each of them from any portion of any loss, cost
damage, claim, expense or liability, including but not limited to, liability
or alleged liability, as a result of injury to, or death of, any person or
damage to, or destruction or loss of any property arising out of, as a result
of, or in connection with the performance of this Agreement and directly or
indirectly caused by the acts or omissions, negligent or otherwise, or
willful misconduct of the CSB or a contractor or an agent or a representative
of CSB, be it active or passive, except where such loss, cost, damage, claim,
expense or liability arises in material respect from the gross negligence or
willful misconduct of 124, its officers, directors and other employees or
agents. As used in the preceding sentence, the words "any person" shall
include, but shall not be limited to, a contractor or an agent of 124 or CSB,
or an employee of CSB. 124 or any such contractor or agent and the words "any
property" shall include, but shall be limited to, property of 124, or any
such contractor or agent or an employee of any one of them. Upon the request
of 124, CSB shall, at no cost or expense to 124 defend any suit asserting
claim for any loss, damage or liability specified above, and CSB shall pay
any costs and legal fees that may be incurred by 124 in connection with any
such claims or suits or in enforcing the indemnity granted above.
ARTICLE 9. FORCE MAJEURE
9.1 DEFINITION. "Force Majeure" shall mean any of the following: prohibition
of acts by government or public agency, riot, war, hostility, strikes,
epidemics, fire, flood, earthquake, storm, tidal wave or other acts of nature
(including other extreme weather conditions), and all other reasonably
unpredictable or unforeseeable events beyond the control of the parties
hereto.
9.2 EFFECT OF FORCE MAJEURE. Neither party shall be liable for its failure to
perform any of its obligations hereunder during any time period in which its,
or its contractor's or vendor's performance, is delayed by Force Majeure
precluding performance, provided the cause for such failure is beyond
reasonable control and without the material fault or negligence of the
non-performing party or its subcontractors and further provided that the
party suffering from such delay notifies the other party of the delay as
provided in SECTION 9.3 (an "Excusable Delay").
<PAGE>
6
9.3 NOTIFICATION. If one party has been prevented from performing its
responsibilities stipulated in this Agreement because of an event of Force
Majeure, it shall notify the other party in writing within 14 days after the
occurrence of such event and shall act to mitigate damages, if possible. If
any event of Force Majeure occurs, no party shall be liable for any damage,
increased costs or losses that either party may sustain by reason of
Excusable Delay. The party claiming Force Majeure shall take appropriate
measures to mitigate or remove the effects of Force Majeure and, within the
shortest possible time, resume as soon as possible performance under this
Agreement affected by the event of Force Majeure.
ARTICLE 10. DISPUTE RESOLUTION
If a dispute arises from or in connection with this Agreement the claiming
party shall promptly notify the other party in a dated notice that a dispute
has arisen and describe the nature of the dispute. If no settlement can be
reached through consultation, a demand in writing may be made by either party
to the other that such dispute, controversy or claim be submitted to
arbitration. Each of 124 and CSB shall be entitled to appoint one arbitrator
and the two arbitrators so chosen shall select a third arbitrator. All
arbitrations authorized by this Agreement shall be conducted in accordance
with the rules of the Arbitration and Mediation Institute of Ontario and the
ARBITRATION ACT, 1991 (Ontario). If either party does not reasonably comply
with a final decision or award made by the arbitrators, such non-complying
party shall bear all costs and expenses, including attorney's fees incurred
by the other party in obtaining enforcement of the decision or award.
Otherwise, all costs of the arbitration authorized by this Agreement shall be
borne equally by the parties unless otherwise ordered in the arbitration
award. The parties agree not to take any steps or actions to prevent or delay
the enforcement of the decision or award.
ARTICLE 11. COSTS
Should any dispute be commenced between the parties concerning any provision of
this Agreement or the rights and duties of any party in relation thereof, the
party prevailing in such dispute shall be entitled, in addition to such other
relief as may be granted, to a reasonable sum as and for its attorney's fees in
such connection with enforcing its rights or defending itself, as the case may
be.
ARTICLE 12. NOTICE
Any notice, demand or other communication required or permitted to be given to
any party to this Agreement shall be in writing and shall be either personally
delivered or sent by registered mail, courier or telecopier. Any notice given
pursuant to this Agreement shall be sent to the intended recipient at its
address as follows:
<PAGE>
7
To: Colorado Satellite Broadcasting Inc.
1050 Walnut Street
Suite 301
Boulder, Colorado
U.S.A. 80302
Attention: Mark Kreloff
To: 1248663 Ontario Inc.
2500 Don Reid Drive
Ottawa, Ontario
Canada K1H 8P5
Attention: Douglas Duncan
or such other address, facsimile number or individual as may be designated by
notice by any party to the other. Any communication given by personal
delivery shall be conclusively deemed to have been given on the day of actual
delivery thereof and, if given by registered mail, on the 5th business day
following the deposit thereof in the mail and, if given by facsimile, on the
day of transmittal thereof. If the party giving any communication knows or
ought reasonably to know of any difficulties with the postal system which
might affect the delivery of mail, any such communication shall not be mailed
but shall be given by personal delivery or by telex.
ARTICLE 13. ENTIRE AGREEMENT
This Agreement constitutes the entire Agreement between parties pertaining to
its subject matter and supersedes all prior and contemporaneous agreements,
understandings, negotiations, discussions, whether oral or written of the
parties.
ARTICLE 14. ASSIGNMENT
Neither party may, without the prior written consent of the other party, assign,
sublease or otherwise transfer its rights or obligations hereunder.
ARTICLE 15. GOVERNING LAW
This Agreement shall be given by and construed in accordance with the laws in
force in the Province of Ontario and federal laws applicable therein.
<PAGE>
8
ARTICLE 16. RELATIONSHIP OF PARTIES
This Agreement is an agreement for the purchase of services and does not create
any partnership or joint venture between the parties.
ARTICLE 17. RIGHT TO AUDIT
CSB or a representative of CSB shall have the right, at CSB's expense, once
every calendar quarter to cause an audit to be done on the books and records of
124 that are related to the obligations of 124 under this Agreement. Such audit
shall be commenced with not less than 5 business days prior notice to 124 and
shall proceed only on business days (i.e. Monday to Friday, holidays excluded)
between 9:00 am and 4:30 p.m.
IN WITNESS WHEREOF the parties have executed this Agreement.
COLORADO SATELLITE
BROADCASTING, INC.
Per:
1248663 ONTARIO INC.
Per:
<PAGE>
SCHEDULE "A"
CALL CENTER SERVICES
124 shall:
(a) receive and process subscriber calls on a twenty-four hour basis from the
Call Center using the Leased Assets as described in SCHEDULE "B" to this
Agreement;
(b) maintain and manage all accounting functions relating to the operations of
the Call Center and the management of subscriber accounts, including but
not limited to, issuing invoices;
(c) employ personnel in such numbers as is required to perform the Services
under this Agreement;
(d) issue monthly statements to CSB, in a form acceptable to CSB, indicating
the subscription revenues for such month and other information required by
CSB;
(e) coordinate subscriptions with the entity providing CSB's uplink services;
(f) operate the Call Center from 1825 Woodward Drive, Ottawa, Ontario or such
other location as CSB may consent to (such consent not to be unreasonably
withheld);
(g) provide marketing services which shall include maintaining the current
programming guide ("Inside") and require a monthly marketing budget
consistent with the historical levels of marketing expenditures on the
business over the prior 12 month period;
(h) maintain the 24/7 Web Server, update content on the websites and respond to
customer inquiries generated from the web sites;
(i) advertise the services and programs through advertisement placement,
developing conference/show materials, a monthly advertising budget
consistent with the historical levels of advertising expenditures on the
business over the prior 12 month period, and provide written reports on
current and proposed advertising placement;
(j) maintain current dealer relations; provide a monthly list of active and
inactive dealers, provide a monthly dealer status report which shall
include reports of dealer representative orders by product, number of
orders and gross dollars; and
(k) maintain current distributor relations; provide a monthly list of active
and inactive distributors, provide a monthly distributor status report
which shall include reports of distributor orders off site, by distributor
and by product, number of orders and gross dollars;
<PAGE>
2
(l) provided daily GI reports on activations and deactivations by tier bit and
port channels and PPV, weekly reconciliation reports between GI activations
and deactivations compared with distributor activations and deactivations;
(m) report on house orders by product, number of orders and gross dollars; and
(n) report monthly on third party product sales.
<PAGE>
SCHEDULE "B"
LIST OF LEASED ASSETS
DESCRIPTION MODEL SERIAL NUMBER NUMBER/COMMENTS
- ----------- ----- ------------- ---------------
FURNITURE
24x45 desk oak 3
pull-out shelf oak 7
30x60 flush right oak 1
paper catcher oak 1
kd mini station oak 2
opus chair gas lift blue 7
45"x53" chair mat 8
4 dr lateral gray 1
stat cabinet gray 1
30x48 adj table gray 1
letter tray 12
wastebaskets gray 6
24x45 desk oak 6
opus chair gas lift blue 6
pull-out shelf oak 6
4 dr lateral gray 1
letter tray 12
45"x53" chair mat 6
blinds 6
high back chair 4
30x48 desk oak 3
36x72 desk oak 1
2 dr lateral oak 1
30x48 desk oak 5
opus chair gas lift burgundy 8
pull-out shelf oak 5
45x43 chair mat 5
letter tray 14
4 dr lateral gray 1
Stat cabinet gray 1
opus chair gas lift burgundy 2
45x53 chair mat 1
wastebasket gray 5
legal tray 2
30x60 sierra 2+2 oak 1
4 dr lateral gray 1
36x72 desk oak 1
45x53 chair mat 2
<PAGE>
2
4 dr lateral gray 1
30x60 sierra 2+2 oak 3
steno chair blue 2
steno chair burgundy 2
20x72 oxford cred oak 2
2 dr lateral oak 1
60x60 divider blue 3
60x60 divider came 3
30x60 desk oak 3
20x45 desk oak 1
steno chair burgundy 4
hi back leather burgundy 2
visitor tweed burgundy 2
tower comp stn oak 1
letter tray burgundy 6
Phone Equipment
cables bix, installation etc
Work Station 1
winsted work surface 2
winsted editor shelf 2
Booth 1
Kraus "Consortium" carpet 1
roller blinds 5
chairs black 41
6' bookcase mahogany 2
stationary stool black 6
PV-4366 SVHS recorder player 1
TV stand 1
SLV-730 VHS VTR (Sony) 2
T-160VB CHS Tapes (10) 2
WS-A1O PA Speakers 2
PA-Serv0150 PA PowerAmp 1
inv 13681 tv's 2
desk 24x42 38
single panel 42x24 23
filler bar to connect tables 21
sliding shelf for keyboard 38
1 drawer unit
18 1/2 x 16 1/4 x 7 38
panel filler 13
3 drawer mobile file 3
table 36x30x29 1
filler bar 2
decorative moulding 2
2 drawer lateral file 1
open desk bookcase 60x12x24 2
desk 60x30x29 fill modesty
panel 1
<PAGE>
3
desk 60x30x29 with 3/4 modesty
panel gray 2
avm-1423 television (Sony) 4
VHR-9417 Sanyo VHS VCR 2
DT331 Beyer Dynamic Headphones 4
36x72 wood top bench 2
Gas drafting chair 2
Stat cabinet tan 1
blue frey panel 18x40 4
blue gray panel 60x60 2
blue gray panel 18x80 3
blue gray panel 30x80 6
overhead flipper door cabinet 2
counter surface 60x18 3
counter surface 61x18 2
open bookshelf 60x14x7 gray 12
Steel shelf unit 1
Desks 4
Booth 1
4dr Lateral Grey Filling
Cabinet 1
Desk 36 X 72 1
Shelves 60 x 14 x 7 4
Tape Storage Cabinet 1
Filling Cabinet 1
BBS Shelf 1
tape cabinet 1
Filling Cabinet 1
Desk 2
7.5 ft Sat dish
Feed system: chaparral PRI
polarotor c/w cal
amp 25 deg LNB
Von Weise actuator
4.5", to 3.5" reducer
red 4535
Dual RG6 sat ribbon cable
Installation including 15'
pole, 660lbs concrete
UHF remote
2dr filling cabinet grey 1
4dr Filling Cabinets 2
COMPUTER SOFTWARE
207-0151AV311 win for
groups V3.11 2
Kallista mom & objectspy
V2.0 bundle 1
menu object mgr additional
lan user 2
objectspy, additional lan
user 2
<PAGE>
4
wool2wool ezdialogs 1
021-051v420 ms office win
4.2(3.5") 1
0214050v420 office
mlp (regular) 9
MYOB 1
Maverick 540MB INT IDE 3.5" 1
3D STUDIO 1
Time Clock 1
100-19317-00, graphics
xpression 2mb ISA 1
050-052-950 windows'95 upg cd 2
vga cable dbl5 Mi-to-F 6 1
PDC8023A-T16 Concentrator 16 1
port/tpcdax
WFULI6005 Winframe 5 User
Lic pk 1
86-751 Avail HSM Base
Netspace 1
86-752 OLHP20 Capacity Kit
for HP Avail 1
Video over the internet 1
Corel Print House 1
CWWP510-UG-CAN0 WP suite
v7.0 upg 1
cd'95
12-00-02477 winfax pro
v7.5 cd w95 1
Office Pro 97 w/bookshelf 1
Firstlink Activation software
203-00101 Visual Basic Pro
5.0 Upg CD 1
021-00703 Up Office CD 1
FLD20D01, Macromedia Flash
V2.0 1
Go Software - Charging
Interface between
Netserver and CTS Software
EG Software Webtrand (usage
traking)
CTS Subscription software
TELEPHONE SYSTEM
SX2000 Microlight Basic System 1
S?(2000 Light Software and
Practices 1
Megalink /ISDN Node 1
Communications Processor Card 1
ON Premises Line Card
(16ports) 1
DNI Line Card (16 ports,
32 Channel) 4
E& M Tie Trunk Card (4ports) 1
Traffic Reporting Software 1
Answer Plus MCD Software 1
HCI Basic Telephony Software 1
HCI Advanced Telephony
Software 1
HCI 100 Agent Software 1
ANI/DNIS Software 1
Superconsole 1000 1
<PAGE>
5
Superset 420's 59
2103 Sync/Async datasets 3
Fibre Optics Jumper Cable 1
Interalia 4 Port WAD with
battery Backup 1
TASKE ACD Report
Generator/Call centre
Management Software 1
TIE VMX 4002 or 2002 8 Port
Voicemail system with
auto attendant 1
AP 900 UPS 1
H51 Plantonics Headsets 5
M10 Modular Adaptor Base 5
H51 Plantonics Headsets 10
M10 Modular Adantor Base 10
COMPUTERS
HP Vectra 486/66 3401S01112
Clone 486/40 N/A
HP Vectra 486/66 3332A04367
NEC 586/90 5917834UN
Clone 486/100 N/A
Clone 686/200 97013390
HP Vectra 586/75 MX55050533
HP Vectra 486/33 33390S3190
Compaq 586/100 148130-003
HP Vectra 486/66 3449Y00536
HP Vectra 486/33 3407A00444
11P Vectra 486/33 3237A07590
HP Vectra 486/33 3404A00157
AST Bravo 586/100 375AQJ010836
Clone 486/33 N/A
Clone 486/40 N/A
Clone 486/33 B.T.C. 04252
HP Vectra 486/33 3248500329
Clone 486/40 N/A
HP Vectra 486/33 3324A00149
HP Vectra 486/33 3323F21007
HP Vectra 486/33 3237A07322
HP Vectra 486/33 3340500237
HP Vectra 486/33 3407A07012
Clone 486/40 N/A
AST Bravo 586/100 375AQJ011529
AST Bravo 586/100 375AQJ011541
AST Bravo 586/100 375AQJ011518
AST Bravo 586/100 375AQJ010823
AST Bravo 586/101 375AQJ010315
<PAGE>
6
AST Bravo 586/100 375AQJ011554
AST Bravo 586/100 375AQJ010329
HP Vectra 586/75 MX55050416
HP Vectra 586/75 MX55050643
HP Vectra 586/75 MX55050631
HP Vectra 586/75 MX55050398
HP NetSrv 586/66 3438Y22189
HP Vectra 486/66 3402A02407
Compaq 486/66 A507HNC3G10
HPXU 586/133 SG53300170
AST Bravo 586/100 375AQJ010329
HP Vectra 586/133 US64050404
HP NetSrv 486/66 3319S00216
HP Vectra 586/166 US61454975
HP Vectra 486/66 3449Y00543
HP Vectra 486/66 3502Y01193
HP Vectra 486/66 3502Y00988
HP NetSrv 586/66 3434S21054
Pinnacle Micro CD Burner 447100408
HP Scanjet Scanner 3265A45856
TTX Monitor 740014237
TTX Monitor 274B007673
TTX Monitor 30121095
TTX Monitor 5130273815
TTX Monitor 630854423
TTX Monitor 439770243A3
TTX Monitor 3430211636
TTX Monitor 5130029914
TTX Monitor 30476091
IBM Monitor 14 Inch/No Serial
TTX Monitor 494A005057
TTX Monitor 540012980
Mistsubishi Monitor 303015008
TTX Monitor 165A011016
TTX Monitor 439780500AJ
TTX Monitor KFO-53907449
TTX Monitor 432560108AI
TTX Monitor 4505700032AM
TTX Monitor 2140012434
TTX Monitor 30368928
TTX Monitor 439770245AJ
TTX Monitor 439780036AJ
TTX Monitor KFO-53907173
TTX Monitor 30252725
TTX Monitor 24001427
TTX Monitor 240001311
<PAGE>
7
TTX Monitor 20406079
TTX Monitor 240001075
TTX Monitor 439780498AJ
TTX Monitor 30371000
TTX Monitor 240001257
TTX Monitor 2140012432
TTX Monitor KFO-53907180
TTX Monitor KFO-53907367
TTX Monitor KFO-53907253
TTX Monitor KFO-53907453
TTX Monitor KFO-53907249
TTX Monitor 2E1-61006274
TTX Monitor KFO-53907171
TTX Monitor KFO-53907459
TTX Monitor AFO-51902907
TTX Monitor KFO-53907141
TTX Monitor KFO-53907238
EverVision Monitor MNG-11200306
TTX Monitor 5130029763
TTX Monitor 5130029759
TTX Monitor 4530005163
BLACKBOX
BLACKBOX
BLACKBOX
TTX Monitor 439780030AJ
BLACKBOX
BLACKBOX
BLACKBOX
BLACKSOX
Clone 486/33 N/A
Clone 486/33 N/A
Clone 486/33 B.T.C. 04166
HP Vectra 486/40 3406A07048
HP Vectra 486/33 3304A19063
HP Vectra 486/33 3318500681
HP Vectra 486/33 3237A07585
HP Vectra 486/33 3339S02378
Clone 486/33 N/A
Clone 486/33 N/A
HP Vectra 586/75 MX55050232
HP Vectra 586/75 MX55050245
HP Vectra 586/75 MX55050182
HP Vectra 586/75 MX55050154
HP Vectra 586/75 MX55050239
HP Vectra 586/75 MX55050248
HP Vectra 586/75 MX55050074
<PAGE>
8
HP Vectra 586/75 MX55050157
HP Vectra 586/66 MX55050233
TTX Monitor 3930001976
TTX Monitor KFO-53907366
TTX Monitor KFO-53907361
TTX Monitor KFO-53907364
TTX Monitor KFO-35907165
TTX Monitor KFO-53907162
TTX Monitor KFO-53907450
TTX Monitor KFO-53907357
TTX Monitor 384A005811
PRINTERS
Panasonic 3FMBNH49841
Panasonic 3FMBNH49825
Epson 40U1I09152
HP DeskJet 660C SG5BI1C04B
IBM Lexmark 11-A1916
Mitsubishi M63257
Lexmark Optra R 11B9752
Genicom 9625-D-33518
HP 4 Plus Printer JPGK241537
<PAGE>
SCHEDULE 2.1(c)
PROMISSORY NOTE
[attached]
<PAGE>
PROMISSORY NOTE
$185,711(USD) ,1997
FOR VALUE RECEIVED, Colorado Satellite Broadcasting, Inc. ("Maker")
promises to pay to the order of 1248663 Ontario, Inc. ("Holder") at Ottawa,
Canada, or at such other place as the holder hereof may from time to time
designate in writing, the principal sum of ONE HUNDRED EIGHTY FIVE THOUSAND
SEVEN HUNDRED ELEVEN DOLLARS (USD$185,711) plus interest thereon as set forth
herein.
Interest shall be calculated at the rate of prime plus one percent (1%),
based on the prime rate of Bank One as of the date hereof, and recalculated at
the beginning of each quarter, but in no event shall the interest rate be
greater than nine percent (9%) per annum, nor less than six percent (6%) per
annum.
This Note shall accrue interest at the aforesaid rate, compounded monthly
and all accrued interest shall be paid on [date which is twelve months from
closing] and thereafter, interest shall be paid monthly until the principal and
all accrued interest is paid in full.
On [date which is thirty six months from closing] Maker shall pay to Holder
the entire remaining balance of principal and all accrued but unpaid interest.
Principal and interest shall be paid in lawful money of the United States
and in immediately available funds.
1. Maker may at any time prepay all or any part of this note or accrued
interest thereon at any time without penalty.
2. Each of the following events will constitute an event of default (an "Event
of Default") under this Note and under the Security Agreement executed of
even date herewith, and each other document securing or executed in
connection with this Note (collectively, the "Credit Documents") and any
material Event of Default under any Credit Document shall constitute an
Event of Default hereunder and under each of the other Credit
<PAGE>
Documents:
A. If Maker shall sell all or substantially all its assets;
B. If the Maker shall default in the making of any payment of
principal and/or interest due hereunder and if the same remains
unpaid for five (5) days following receipt by Maker of written notice
of such default; or
C. If Maker shall have made a voluntary assignment for the benefit
of creditors, or if proceedings shall have been commenced under the
bankruptcy laws by or against Maker, or if a receiver or trustee shall
have been appointed for the benefit of creditors against Maker;
provided, however, that Maker shall not be deemed to be in default due
to any involuntary proceedings brought against it if such proceedings
are dismissed or resolved in favor of Maker within sixty (60) days
from the commencement of such proceedings.
3. Upon the occurrence of any Event of Default, the entire balance of
principal, accrued interest, and other sums owing hereunder shall, at the
option of Holder, become at once due and payable without notice or demand,
and Holder shall have the option, in its sole discretion, to exercise any
remedies available to it under the Credit Documents, at law or in equity.
No delay or omission by the Holder in exercising any right hereunder shall
operate as a waiver of such right or any other right of the Holder. A
waver of any right by Holder on one occasion shall not be construed as a
bar to or as a waiver of any right in the future. None of the provisions
hereof and none of the rights of the Holder shall be deemed to have been
waived by acceptance of any partial amount or by any other indulgence
granted to the Maker.
(a) The entire balance of principal, interest, and other sums due upon the
maturity hereof, by acceleration or otherwise, shall bear interest from the
date due until paid at the greater of (i) eighteen percent (18%) per annum
or (ii) a per annum rate equal to five percent (5%) over the prime rate
(for corporate loans at large United States money center commercial banks)
published in THE WALL STREET JOURNAL on the first business day of each
month (the "Default Rate"); provided, however, that such rate shall not
exceed the maximum permitted by applicable state or federal law. In the
event THE WALL STREET JOURNAL is no longer
2
<PAGE>
published or no longer publishes such prime rate, Holder shall select a
comparable reference.
(b) If any payment under this Note is not made when due, interest shall
accrue at the Default Rate from the date five (5) days after the date such
payment was due until payment is actually made.
4. In addition to interest as set forth herein, Maker shall pay to Holder a
late charge equal to five percent (5%) of any amounts due under this Note
in the event any such amount is not paid when due.
5. All payments hereunder shall be applied first to the payment of late
charges, if any, then to the payment of prepayment premiums, if any, then
to the payment of accrued and unpaid interest, and then to the reduction of
principal.
6. The Maker of this Promissory Note, for itself and its legal
representatives, successors and assigns, hereby expressly waives
presentment, demand, protest, notice of protest, presentment for the
purpose of accelerating maturity, diligence in collection, and the benefit
of any exemption under the homestead exemption laws, if any, or any other
exemption or insolvency laws, and consents that the Holder may extend the
time for payment of any part or the whole of the indebtedness evidenced
hereby.
7. If this Promissory Note shall not be paid when due and shall be placed by
the Holder hereof in the hands of any attorney for collection, through
legal proceedings or otherwise, the Maker shall pay a reasonable attorney's
fee to the Holder hereof together with reasonable costs and expenses of
collection.
8. The provisions of this Note and of all agreements between Maker and Holder
are, whether now existing or hereinafter made, hereby expressly limited so
that in no contingency or event whatever, whether by reason of acceleration
of the maturity hereof, prepayment, demand for payment or otherwise, shall
the amount paid, or agreed to be paid, to Holder for the use, forbearance,
or detention of the principal hereof or interest hereon, which remains
unpaid from time to time, exceed the maximum amount permissible under
applicable law, it particularly being the intention of the parties hereto
to conform strictly to Colorado and Federal law, whichever is applicable.
If from any circumstance whatever,
3
<PAGE>
the performance or fulfillment of any provision hereof or of any other
agreement between Maker and Holder shall, at the time performance or
fulfillment of such provision is due, involve or purport to require any
payment in excess of the limits prescribed by law, then the obligation to
be performed or fulfilled is hereby reduced to the limit of such validity,
and if from any circumstance whatever Holder should ever receive as
interest an amount which would exceed the highest lawful rate, the amount
which would be excessive interest shall be applied to the reduction of the
principal balance owing hereunder (or, at Holder's option, be paid over to
Maker) and shall not be counted as interest. To the extent permitted by
applicable law, determination of the legal maximum amount of interest shall
at all times be made by amortizing, prorating, allocating and spreading in
equal parts during the period of the full stated term of this Note, all
interest at any time contracted for, charged, or received from Maker in
connection with this Note and all other agreements between Maker and
Holder, so that the actual rate of interest on account of the indebtedness
represented by this Note is uniform throughout the term hereof.
9. This Promissory Note, together with all the rights and obligations of the
Holder and Maker hereunder shall be governed by, and construed,
interpreted, and enforced in accordance with, the applicable laws of the
State of Colorado.
10. This Note is secured by a Security Agreement, Fixture Filing, and Financing
Statement, all dated of even date herewith granted by Maker for the benefit
of the named Holder hereof.
11. If any provision hereof or of any other document securing or related to the
indebtedness evidenced hereby is, for any reason and to any extent, invalid
or unenforceable, then neither the remainder of the document in which such
provision is contained, nor the application of the provision to other
persons, entities, or circumstances, nor any other document referred to
herein, shall be affected thereby, but instead shall be enforceable to the
maximum extent permitted by law.
12. Each provision of this Note shall be and remain in full force and effect
notwithstanding any negotiation or transfer hereof and any interest herein
to any other Holder.
4
<PAGE>
13. The remedies provided to Holder in this Note, the Security Agreement and
the other Credit Documents are cumulative and concurrent and may be
exercised singly, successively or together against Maker, and other
security, or any guarantor of this Note, at the sole and absolute
discretion of the Holder.
14. If Maker is more than one entity, or if this Note is guaranteed by another
entity, then (a) all entities comprising Maker and any guarantor are
jointly and severally liable for all of the Maker's obligations hereunder;
(b) all representations, warranties, and covenants made by Maker shall be
deemed representations, warranties, and covenants of each of the entities
comprising Maker; and (c) any breach, Default or Event of Default by any of
the entities comprising Maker or any guarantor hereunder shall be deemed to
be a breach, Default, or Event of Default of Maker.
Maker
- ------------------------
by:
Guarantee:
FOR VALUABLE CONSIDERATION, the receipt of which is hereby acknowledged,
the undersigned ("Guarantor") unconditionally guarantees to Holder (i) the full
and prompt performance by _________________, a ___________________
corporation ("Maker"), of all obligations which Maker presently or hereafter
may have to Holder and (ii) payment when due of all sums presently or hereafter
owing by Maker to Holder. Guarantor further agrees to indemnify Holder against
any losses Holder may sustain and expenses Holder may incur as a result of any
wrongful act of Maker. This is an unconditional guarantee of payment of all
indebtedness of Maker to Holder, or any part thereof, by Guarantor and Guarantor
acknowledges and agrees that Holder may proceed against Guarantor without first
exercising Holder's rights against Maker or any collateral.
5
<PAGE>
For the purposes of this guarantee and indemnity, all sums owing to Holder
by Maker shall be deemed to have become immediately due and payable if (a) Maker
defaults in any of its obligations to Holder; (b) a petition under any Chapter
of the Bankruptcy Act, as amended, or for the appointment of a receiver of any
part of the property of Maker be filed against Maker, and is not dismissed
within thirty (30) days; (c) such a petition is filed by Maker; (d) Maker makes
a general assignment for the benefit of creditors, suspends business or commits
any act amounting to a business failure; or (e) Maker sells all or substantially
all of its assets.
This shall be a continuing guarantee and indemnity, and irrespective of the
lack of any notice to or consent of the undersigned, their obligations hereunder
shall not be impaired in any manner whatsoever by any renewal, extension or
indulgence. Guarantor hereby authorizes assured party, without notice or
demand, to (a) change the terms of all or any part of the obligation guaranteed
hereby, including without limitation, releasing, extending, or compromising the
same, changing the time for payment thereof, and changing the rate of interest
thereon; (b) take, or decline to take, collateral for the payment of the
obligation guaranteed hereby and exchange, enforce or fail to enforce, fail to
perfect, or release its interest in any such collateral; and (c) release or
substitute, or impair or suspend, any remedy against any principal Maker, or any
other guarantor of, or anyone else liable on the obligation guaranteed hereby.
Notice of assured party's acceptance hereof, of default and nonpayment by
Maker or any other parties, of presentment, protest and demand, and of all other
matters of which the undersigned otherwise might be entitled are hereby waived
by the undersigned. The obligations hereunder of Guarantor shall be binding on
my heirs and personal representatives.
Guarantor shall reimburse Holder, on demand, for any and all expenses
incurred by Holder in the enforcement or attempted enforcement of any of
Holder's rights hereunder against Guarantor including, but not limited to, all
reasonable attorneys' fees and costs.
This Guarantee and indemnity is assignable by Holder, shall be construed
liberally in Holder's favor and shall inure to the benefit of Holder's
successors and assigns. Until all indebtedness covered hereby has been paid in
full, Guarantor shall not be subrogated to any of Holder's rights against Maker,
or any collateral and any funds or other
6
<PAGE>
property at any time received by Guarantor from Maker shall be held in trust for
and shall be paid or transferred to Holder upon demand therefor. Legal rights
and obligations hereunder shall be determined in accordance with the laws of the
State of Colorado.
Guarantor:
- --------------------------
7
<PAGE>
EXHIBIT A TO SCHEDULE 2.1(c)
SECURITY AGREEMENT
[attached]
<PAGE>
SECURITY AGREEMENT
This Security Agreement, dated as of ____ 1997, is entered into between Colorado
Satellite Broadcasting, Inc., (Debtor), Fifth Dimension Communications, Inc.,
and Merlin Sierra, Inc. (collectively, Secured Party).
WHEREAS, Debtor has agreed to grant to Secured Party a security interest in all
of the Collateral (as hereinafter defined) as security for Debtor's obligations
owing to Secured Party arising under the Promissory Note dated ________ between
Debtor and Secured Party (the "Note") and other credit documents executed by
Debtor in Connection therewith.
WHEREAS, Debtor has or will grant to its senior lender a first position security
interest in the Collateral up to the amount of $2,000,000 and Secured Party
acknowledges that the security interests granted herein is subordinate to that
security interest.
WHEREAS, Debtor may grant to a lender to be approved by Secured Party a security
interest in the Collateral up to the amount of US$725,5100 and as to the
Promissory Note for US$185,711, given by Debtor to 1248663 Ontario, Inc. only,
Secured Party acknowledges that the security interests granted herein will be
subordinate to that security interest in the amount set forth in this paragraph.
NOW, THEREFORE, in consideration of the mutual promises, covenants, conditions,
representations, and warranties hereinafter set forth, and for other good and
valuable consideration, the parties hereto agree as follows:
1. DEFINITIONS
As used in this Agreement, all initially capitalized terms used but not defined
herein shall have the meaning ascribed thereto in the Note, or if said term is
not in the Note, then said initially capitalized term shall have the meaning
ascribed thereto in the Purchase Agreements. In addition, the following terms
shall have the following meanings.
"AGREEMENT" shall mean this Security Agreement, any concurrent or subsequent
exhibits or schedules to this Security Agreement, and any extensions,
supplements, amendments, or modifications to or in connection with this Security
Agreement, or to any such schedules or exhibits.
"NOTE" shall have the meaning set forth in the recitals to this Agreement.
<PAGE>
"CODE" shall mean the Colorado Uniform Commercial Code, and any and all terms
used in this Agreement which are defined in the Code shall be construed and
defined in accordance with the meaning and definition ascribed to such terms
under the Code, unless otherwise defined herein.
"COLLATERAL" shall mean any and all of the furniture, equipment, fixtures and
inventory, of Debtor, in each case whether now existing or hereafter acquired or
created, and any proceeds or products of any of the foregoing, including
proceeds of insurance covering the collateral or any portion thereof, or any and
all substitutions, replacements, additions, and accessions.
"DEBTOR" shall have the meaning set forth in the introduction to this Agreement.
"FURNITURE", "EQUIPMENT", and "FIXTURES" shall mean any and all of Debtor's
presently existing and hereafter acquired machinery, equipment, tools, motors,
motor vehicles, rolling stock, jibs, and other goods (other than Inventory, farm
products, and consumer), of every kind and description, wherever located,
including without limitations those items listed in schedules 1(a) and 1(b) of
the "124 Agreement" which are incorporated herein by reference, together with
any and all parts, improvements, additions, attachments, replacements,
accessories, and substitutions thereto or therefore, and all other rights of
Debtor relating thereto, whether in the possession and control of Debtor, or in
the possession and control of a third party for the account of Debtor.
"Event of Default" shall have the meaning set forth in the Note.
"INVENTORY" shall mean any and all of Debtor's presently existing and hereafter
acquired goods of every kind and description, held for sale or lease or to be
furnished under a contract of service or which have been so leased or furnished,
wherever located, including film videos, magnetic tape, optical disks, CD's and
any and all media upon which images of any kind are stored and recorded for
later use or viewing, amplifiers, transmitters, converters, cables, antennas,
connections, towers, decoder boxes, converter boxes, addressable boxes,
microwave transmitters, and earth stations.
"OBLIGATIONS" shall mean any and all debts, liabilities, obligations, or
undertakings owing by Debtor to Secured Party arising under, advanced pursuant
to, or evidenced by the Note, or this Agreement, whether direct or indirect,
absolute or contingent, due or to become due, voluntary or involuntary, whether
now existing or hereafter arising, and including all interest not paid when due
and all Secured Party's Expenses which Debtor is required to pay or reimburse
pursuant to this Agreement, the
2
<PAGE>
Note, any other credit documents between Secured Party and Debtor, or by law.
"PURCHASE AGREEMENTS" shall mean the Purchase Agreements between New Frontier
Media, Inc., and Colorado Satellite Broadcasting, Inc., on the one hand and
Fifth Dimension Communications, Inc., Merlin Sierra, Inc., and 1248663 Ontario
Inc., on the other hand, executed on September 5, 1997, including all exhibits
and agreements referenced therein.
"SECURED PARTY" shall have the meaning set forth in the introduction to this
Agreement.
"SECURED PARTY'S EXPENSES" shall mean: any and all reasonable costs or expenses
required to be paid by Debtor under this Agreement which are paid or advanced by
Secured Party; all reasonable costs and expenses of Secured Party, including
their or its reasonable attorneys' fees and expenses, incurred or expended to
correct any default or enforce any provision of this Agreement, or in gaining
possession of, maintaining, handling, preserving, storing, shipping, selling,
preparing for sale, or advertising to sell the Collateral, irrespective of
whether a sale is consummated; and all reasonable costs and expenses of suit
incurred or expended by Secured Party, including its reasonable attorneys' fees
and expenses in enforcing or defending this Agreement, irrespective of whether
suit is brought.
"SENIOR LENDER" shall mean Debtor's chief financial institutions as chosen by
debtor and an unsecured creditor approved by Maker.
2. CONSTRUCTION
Unless the context of this Agreement clearly requires otherwise, references to
the plural include the singular, references to the singular include the plural,
the part includes the whole, "including" is not limiting, and "or" has the
inclusive meaning represented by the phrase "and/or." References in this
Agreement to "determination" by Secured Party include reasonable estimates
(absent manifest error) by Secured Party, as applicable (in the case of
quantitative determinations) and reasonable beliefs (absent manifest error) by
Secured Party, as applicable (in the case of qualitative determinations). The
words "hereof, "herein", "hereby," "hereunder," and similar terms in this
Agreement refer to this Agreement as a whole and not to any particular provision
of this Agreement. Article, section, subsection, exhibit, and schedule
references are to this Agreement unless otherwise specified.
3. CREATION OF SECURITY INTEREST
3.1 Subject to the provisions of 3.2 hereof, Debtor hereby grants to Secured
Party a continuing security interest in all presently
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<PAGE>
existing and hereafter acquired or arising Collateral in order to secure the
prompt payment and performance of all of the Obligations. Such security interest
in the Collateral shall attach to all Collateral without further act on the part
of secured Party or Debtor.
3.2 Debtor has granted or will grant to [its senior lender] a first position
security interest in the Collateral up to the maximum amount of $2,000,000 and
Secured Party acknowledges that the security interest granted herein is or will
be subordinate in priority to that security interest, but only to a maximum of
$2,000,000. Additionally, Debtor has granted or will grant upon the approval of
Secured Party, which approval will not be unreasonably withheld, a second
position security interest in the Collateral up to the maximum amount of
$725,510.00 and Secured Party acknowledges that the security interest herein is
or will be subordinate in priority to that security interest.
4. FURTHER ASSURANCES
4.1 Debtor shall execute and deliver to Secured Party, concurrently with
Debtor's execution of this Agreement, and from time to time at the request of
Secured Party, all financing statements, continuation financing statements,
fixture filings, security agreements, collateral assignments, chattel mortgages,
assignments, and all other documents that Secured Party may reasonably request,
in form reasonably satisfactory to Secured Party, to perfect and maintain
perfected Secured Party's security interests in the Collateral and in order to
consummate fully all of the transactions contemplated by this Agreement and the
Note. Debtor hereby irrevocably makes, constitutes, and appoints Secured Party
(and Secured Party's officers, employees, or agents) as Debtor's true and lawful
attorney with power to sign the name of Debtor on any of the above-described
documents or on any other similar documents which need to be executed, recorded
or filed, and to do any and all things necessary in the name and on behalf of
Debtor in order to perfect, or continue the perfection of, Secured Party's
security interests in the Collateral. Debtor agrees that neither Secured Party,
nor any of its designees or attorneys-in-fact, will be liable for any act of
commission or omission, or for any error of judgment or mistake of fact or law
with respect to the exercise of the power of attorney grated under this Section
4.1, other than as a result of its or their gross negligence or willful
misconduct. The power of attorney granted under this Section 4.1 is coupled
with an interest and shall be irrevocable until all of the Obligations have been
paid in full, the Note terminated, and Debtor's duties hereunder have been
discharged in full.
4.2 Without limiting the generality of the foregoing section 4.1 or any of the
provisions of the Note, Debtor will: (a) at the request of tee Secured Party,
appear in and defend any action or
4
<PAGE>
proceeding which may affect Debtor's title to, or the security interest of
Secured Party in, any of the Collateral; and (b) upon demand of Secured Party,
allow inspection of Collateral by Secured Party or persons designated by Secured
Party at any time during normal business hours and, provided that no Event of
Default has occurred and is continuing, upon three (3) Business Days' notice to
Debtor.
4.3 After the occurrence and during the continuance of an Event of Default,
Debtor agrees to take all actions and do all things reasonably requested of
Debtor to carry out the intent of this Agreement.
5. RIGHTS AND REMEDIES
5.1 Upon the occurrence and during the continuance of an Event of Default,
Secured Party, without notice or demand, may do any one or more of the
following, all of which are authorized by Debtor:
(a) Make such payments and do such acts as it considers necessary or reasonable
to protect Secured Party's security interest in the Collateral. Debtor agrees to
assemble and make available any or all of the Collateral if Secured Party so
requires. Debtor authorizes Secured Party to enter the premises where the
Collateral is located, take and maintain possession of the Collateral, or any
part of it, and to pay, purchase, contest, or compromise any encumbrance,
charge, or lien which, in the opinion of the Secured Party, appears to be prior
or superior to Secured Party's security interest, and to pay all costs and
expenses incurred in connection therewith;
(b) Ship, reclaim, recover, store, finish, maintain, repair, prepare for sale,
advertise for sale, or sell (in the manner provided for herein), the Collateral;
(c) Sell the Collateral, at either a public or private sale, or both, by way of
one or more contracts or transactions, for cash or on terms, in such manner and
at such places (including Debtor's premises) as is commercially reasonable; and
apply any proceeds of any sale or other disposition of the Collateral in the
order provided in C.R.S. Section 4-9-504, including the payment of Secured
Party's Expenses. It is not necessary that the Collateral be present at any such
sale;
(d) Without constituting a retention of collateral in satisfaction of
indebtedness as provided for in C.R.S. Section 4-9-505, notify account debtors
and other obligors of Debtor of Secured Party's security interests in the
Collateral, and proceed to collect the same and apply the net cash proceeds
therefrom to the Obligations;
5
<PAGE>
(e) Secured Party shall give notice of any disposition of the collateral as
follows:
(1) Secured Party shall give Debtor and each holder of a security interest in
the Collateral who has filed with Secured Party a written request for notice, a
written notice stating the time and place of a public sale, or, if the
disposition is to be either a private sale or some other disposition that is not
a public sale, the time on or after which the private sale or other disposition
is to be made;
(2) The notice described in the immediately preceding paragraph shall be
delivered to Debtor as provided in Section 9.1 of the Note at least ten (10)
calendar days before the date fixed for a public sale, or at least five (5)
calendar days before the date on or after which the private sale or other
disposition is to be made, unless the Collateral is perishable or threatens to
decline speedily in value. Notice to persons other than Debtor claiming an
interest in the Collateral shall be sent to such addresses as such persons have
furnished to Secured Party prior to the date of such notice;
(3) If the disposition is to be a public sale, Secured Party shall also give
notice of the time and place of said sale by publishing a notice at least five
(5) calendar days before the date of the sale in a newspaper of general
circulation, if one exists, in the county in which the sale is to be held;
(g) Secured Party may, in its own name, or in the name of a designee or
nominee, credit bid and purchase at any public sale;
(h) Debtor shall pay Secured Party's reasonable Expenses; and
(i) Any portion of the Obligations which remains unpaid after disposition of
the Collateral as provided above shall be paid immediately by Debtor provided
that Secured Party has complied in all material respects with Section [9-504?]
of the Code, as in effect at the time of such disposition. Any excess which
exists after disposition of the Collateral shall be returned promptly,
without interest and subject to the rights of third parties, to Debtor by
Secured Party.
(j) Apply to any court of competent jurisdiction for the appointment of a
receiver for the benefit of the creditors of Debtor. In said receivership
application, Debtor agrees that Secured Party shall only need to prove to the
Court that an Event of Default shall have occurred and be continuing, and that
no bond for more than $10,000 shall be required.
5.2 (a) Subject to the provisions of Section 5.2(e) below, if an Event of
Default shall have occurred and be continuing, Debtor waives, releases and
stipulates it shall not raise any defense,
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<PAGE>
claim or objection it otherwise right be able to raise or advance in general to
the appointment of a receiver to protect the interests of creditors, provided
that Debtor may make bona fide objections to the appointment of any particular
receiver.
(b) The receiver shall in addition have the power to dispose of the Collateral
in any manner lawful in the jurisdiction in which his appointment is confirmed,
including the power to conduct a public or private sale of the Collateral.
Secured Party may bid at any such public or private sale.
(c) Notwithstanding anything herein contained to the contrary, Debtor's
execution and delivery of this Agreement and any related agreements (i) do not
have the purpose of and will not constitute, create, or have the effect of
constituting or creating, directly or indirectly, actual or practical ownership
or control, affirmative or negative, direct or indirect, of Debtor by Secured
Party, or control, affirmative or negative, direct or indirect, by Secured Party
over the programming, management, or any other aspect of the operation of Debtor
or any of its properties, which ownership and control will remain exclusively
and at all times in Debtor: and (ii) do not and will not constitute the
transfer, assignment, or disposition in any manner, voluntarily or
involuntarily, directly or indirectly, of any Governmental Authorizations at any
time issued to Debtor or the transfer of control of Debtor.
5.3 The rights and remedies of Secured Party under this Agreement, the Note,
the Purchase Agreements, and all other agreements contemplated hereby and
thereby shall be cumulative. Secured Party shall have all other rights and
remedies not inconsistent herewith as provided under the Code, by law, or in
equity. No exercise by Secured Party of any one right or remedy shall be deemed
an election of remedies, and no waiver by Secured Party of any default on
Debtor's part shall be deemed a continuing waiver of any further defaults. No
delay by Secured Party shall constitute a waiver, election or acquiescence with
respect to any right or remedy.
6. REPRESENTATIONS AND WARRANTIES. Debtor hereby represents and warrants to
the Secured Party that:
a. The Debtor is a corporation duly organized and validly existing under
the laws of the State of Colorado; the execution and performance of this
Agreement have been duly authorized by all appropriate action with respect to
the Debtor; the execution and performance of this Agreement will not violate or
contravene any provisions of law or regulation or of the Debtor's articles of
incorporation, by-laws, or other agreements to which it is a party or by which
it is bound; and no consent or approval of directors or shareholders or any
governmental agency or authority is required in connection with the Debtor's
execu-
7
<PAGE>
tion, delivery or performance of this Agreement which has not been obtained.
b. The Debtor's principal office is at 1050 Walnut Street, Suite 301,
Boulder, Co 80302, and the Debtor maintains its books of account and records
only at such address.
c. All of the Equipment and Inventory is kept and located only at Ottawa,
Canada, and is in the possession of the secured party, affiliate or subsidiary
thereof.
d. The Debtor is the owner of the Collateral free and clear of all
encumbrances and security interests other than the Secured Party's security
interest.
e. Excepting only those assets subject to the Call Center Agreement and
Uplink Center Agreement (as those terms are defined in the Purchase Agreements)
during the term of those agreements, none of the Collateral is in the possession
of any third party or subject to any document of title.
7. WAIVERS
So long as Secured Party complies with the obligations, if any, imposed by CRS
Section 4-9-207 of the Code, Secured Party shall not otherwise be liable or
responsible in any way or manner for: (a) the safekeeping of the Equipment or
Inventory, or any of Debtor's Books relating to any of the Collateral; (b) any
loss or damage thereto occurring or arising in any manner or fashion or from any
cause; (c) any diminution in the value thereof; or (d) any act or default of any
carrier, warehouseman, bailee, forwarding agency, or other person whomsoever.
All notices, requests, demands or other communications provided for in this
Agreement shall be in writing and shall be delivered by hand, sent prepaid by
Federal Express (or a comparable overnight delivery service) or sent by the
United States mail, certified, postage prepaid, return receipt requested, as
follows:
If to the Secured Party:
With copies to:
If to the Debtor:
Colorado Satellite Broadcasting, Inc.
8
<PAGE>
1050 Walnut Street, Suite 301
Boulder, CO 20302
Attn.: Mark Kreloff
With copies to:
The Law Office of Mark L. Driver, P.C.
3300 East First Ave., Suite 600
Denver, CO 80206
Any notice, request, demand or other communication delivered or sent in the
foregoing manner shall be deemed given or made (as the case may be) upon the
earliest of (a) the date it is actually received, (b) on the business day after
the day on which it is delivered by hand, (c) on the business day after the day
on which it is properly delivered to Federal Express (or a comparable overnight
delivery service, or (d) on the third business day after the day on which it is
deposited in the Untied States mail. The Debtor or the Secured Party may change
its address by notifying the other party of the new address in any manner
permitted by this paragraph 8.
9. GOVERNING LAW: JURISDICTION AND VENUE
9.1 GOVERNING LAW. THIS AGREEMENT SHALL BE DEEMED TO HAVE BEEN MADE IN THE
STATE OF COLORADO AND THE VALIDITY, CONSTRUCTION, INTERPRETATION, AND
ENFORCEMENT HEREOF, AND THE RIGHT OF THE PARTIES HEREOF SHALL BE DETERMINED
UNDER, GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE
STATE OF COLORADO, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW.
9.2 JURISDICTION AND VENUE. THE PARTIES HERETO AGREE THAT ANY PROCEEDING
PURSUANT TO SECTION 9 ARISING IN CONNECTION WITH THIS AGREEMENT SHALL BE HELD
ONLY IN THE STATE OF COLORADO OR AT THE SOLE OPTION OF SECURED PARTY, IN ANY
OTHER FORUM IN WHICH SECURED PARTY INITIATES PROCEEDINGS AND WHICH HAS
JURISDICTION OVER THE SUBJECT MATTER AND PARTIES IN CONTROVERSY. THE PARTIES
HERETO HEREBY WAIVE ANY RIGHT EACH MAY HAVE TO ASSERT THE DOCTRINE OF FORUM NON
CONVENIENCE OR TO OBJECT TO VENUE TO THE EXTENT ANY PROCEEDING IS BROUGHT IN
ACCORDANCE WITH THIS SECTION 9.2 AND STIPULATE THAT ANY FORUM LOCATED IN
COLORADO, SHALL HAVE IN PERSONAM JURISDICTION AND VENUE OVER EACH SUCH PARTY FOR
THE PURPOSE OF ARBITRATING ANY SUCH DISPUTE, CONTROVERSY, OR PROCEEDING ARISING
OUT OF OR RELATED TO THIS AGREEMENT. SERVICE OF PROCESS SUFFICIENT FOR PERSONAL
JURISDICTION IN ANY ACTION AGAINST DEBTOR MAY BE MADE BY REGISTERED OR CERTIFIED
MAIL, RETURN RECEIPT REQUESTED, TO ITS ADDRESS SPECIFIED FOR NOTICES PURSUANT TO
SECTION 8.
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<PAGE>
10. GENERAL PROVISIONS
10.1 This Agreement shall be binding and deemed effective when executed and
delivered by Debtor and accepted and executed by Secured Party.
10.2 This Agreement shall bind and inure to the benefit of the respective
successors and assigns of Debtor and Secured Party; PROVIDED, HOWEVER, that
Debtor may not assign this Agreement or any rights hereunder without Secured
Party's prior written consent and any prohibited assignment shall be
absolutely void, No consent by Secured Party to an assignment by Debtor shall
release Debtor from its Obligations. Secured Party reserves its right to
sell, assign, transfer, negotiate, or grant participation in all or any part
of, or any interest in, the rights and benefits hereunder pursuant to and in
accordance with the provisions of the Note. In connection therewith, Secured
Party may disclose all documents and information which Secured Party now or
hereafter may have relating to Debtor, Debtor's business, or the Collateral
to any such prospective or actual Transferee PROVIDED that such Transferee
has first agreed to be bound by the provisions of Section 10.3 hereof.
10.3 Secured Party agrees to keep confidential any information relating to
Debtor delivered by Debtor hereunder; PROVIDED that nothing herein shall
prevent Secured Party from disclosing such information: (a) to any affiliate
of Secured Party or any prospective or actual transferee that agrees to be
bound by this Section 10.3, (b) upon order, subpoena, or other process of any
court or administrative agency, (c) upon the request or demand of any
regulatory agency or authority having jurisdiction over Secured Party, (d)
which has been publicly disclosed (other than by Secured Party unless such
disclosure was otherwise permitted hereunder), (e) which has been obtained
from any Person that is not a party hereto or an affiliate of any such party,
(f) in connection with the exercise of any remedy, or the resolution of any
dispute, hereunder or under any of the Purchase Agreements, this Agreement or
the Note, (g) to the legal counsel or certified public accountants for
Secured Party, or (h) as otherwise expressly required by the Note, this
Agreement or the Purchase Agreements.
10.4 Section headings and numbers have been set forth herein for convenience
only. Unless the contrary is compelled by the context, everything contained
in each Section hereof applies equally to this entire Agreement.
10.5 Neither this Agreement nor any uncertainty or ambiguity herein shall be
construed or resolved against Secured Party or Debtor, whether under any rule
of construction or otherwise. On the contrary, this Agreement has been
reviewed by each of the parties and their counsel and shall be construed and
interpreted
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<PAGE>
according to the ordinary meaning of the words used so as to accomplish fairly
the purposes and intentions of all parties hereto.
10.6 Each provision of this Agreement shall be severable from every other
provision of this Agreement for the purpose of determining the legal
enforceability of any specific provision.
10.7 This Agreement cannot be changed, modified, amended, or terminated,
except by a written document executed by both Debtor and Secured Party. All
prior agreements, understandings, representations, warranties, and
negotiations, if any, are merged into this Agreement, the Note, the Purchase
Agreements and the other documents and agreements entered into in connection
herewith and therewith.
10.8 The parties intend and agree that their respective rights, duties,
powers, liabilities, obligations, and discretion shall be performed, carried
out, discharged, and exercised reasonably and in good faith.
10.9 After termination of the Note and when Secured Party has received
payment and performance in full of all Obligations, Secured Party shall
execute and deliver to Debtor a termination of all of the security interests
granted by Debtor hereunder.
10.10 This Agreement may be executed in any number of counterparts and by
different parties on separate counterparts, each of which counterparts, when
so executed and delivered, shall be deemed to be an original. All of such
counterparts, taken together, shall constitute but one and the same
Agreement. This Agreement shall become effective upon the execution of a
counter-part of this Agreement by each of the parties hereto.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date
first set forth above.
Debtor
By
Title:
Secured Party
By
Title:
11
<PAGE>
SCHEDULE 2.2
ALLOCATION OF PURCHASE PRICE
The Purchase Price is allocated to the Subject Assets as follows:
US$510,305 to that equipment (including without limitation essential
spares and replacement parts) and software technology,
furniture, machinery, appliances, and other tangible
personal property and technology used in and historically
allocated to the operation of a satellite operation uplink
facility as specifically set forth in SCHEDULE 1(a) of the
Asset Purchase Agreement, "the Uplink Facilities Equipment
List"
US$335,578 to all hardware, equipment, software license assignments,
furniture, machinery, appliances and other tangible personal
property as set forth in SCHEDULE 1(b) of the Asset Purchase
Agreement, "The Call Center Equipment List"
<PAGE>
SCHEDULE 4
LEASES, CONTRACTS, AND AGREEMENTS
None.
<PAGE>
SCHEDULE 7.2(e)
ENCUMBRANCES
None.
<PAGE>
SCHEDULE 7.2(f)
MATERIAL ADVERSE EVENTS AND CONDITIONS
None.
<PAGE>
SCHEDULE 7.6
INSURANCE POLICIES
The Subject Assets are insured under Zurich Insurance Company Policy Nos.
8422185 and 8422187. The Subject Assets are insured on a replacement value
basis.
<PAGE>
SCHEDULE 7.11
APPROVALS AND CONSENTS
As contemplated by section 7.5 of the Asset Purchase Agreement, Seller will be
acquiring the Subject Assets from Fifth Dimension Capital Corporation ("5D
Capital"), 841161 Ontario Limited ("841"), Fifth Dimension Communications (1996)
Corporation ("Communications") and 1043133 Ontario Inc. Prior to the acquisition
of the Subject Assets by Seller for resale to Buyer:
1. 5D Capital must purchase certain of the Subject Assets from CIBC Equipment
Finance Limited "CIBC Finance" (such assets being subject to an existing
lease agreement between 5D Capital and CIBC Finance).
2. 841 must obtain a release of a security interest registered by Royal Bank
of Canada over certain of the Subject Assets.
3. 841 must purchase certain of the Subject Assets from Mild Financing N.V.
"Mild" (such assets being subject to an existing lease agreement between 5D
Capital and Mild).
4. Communications must obtain a release of a security interest registered by
Doyle Salewski Lemieux Inc. over certain of the Subject Assets.
<PAGE>
SCHEDULE 7.12
COMPETING INTERESTS
Stuart K. Duncan and Douglas J. Duncan, officers and directors of Seller, are
the beneficial owners of stock in the capital of Fifth Dimension Satcom Inc.
("Satcom"). Satcom will be a subcontractor to Seller in respect of the Uplink
Management Services Agreement.
<PAGE>
SCHEDULE 7.13
ADDRESSES OF SELLER
1. 1825 Woodward Drive
Ottawa, Ontario
K2C 0P9
2. 2500 Don Reid Drive
Ottawa, Ontario
K1H 8P5
<PAGE>
SCHEDULE 8.2(a)
BUYERS' DISCLOSURE STATEMENT
[attached]
<PAGE>
SCHEDULE 8.2(a)
BUYERS' DISCLOSURE STATEMENT
Buyers make no further disclosures concerning Buyers' Financial Statements
and the notes thereto, which were prepared in accordance with GAAP applied on a
consistent basis throughout the periods covered thereby and reaffirm that the
Financial Statements are true, accurate and complete, do not contain any untrue
statement of material fact or omit to state a material fact required by GAAP to
be stated therein or necessary in order to make the statements contained therein
not misleading, and fairly present the financial condition and the results of
operations of Buyers, on the bases therein stated, as of the respective dates
thereof, and for the respective periods covered thereby subject, in the case of
unaudited financial statements, to normal year-end audit adjustments and
accruals.
<PAGE>
SCHEDULE 11.11
NON-COMPETITION AGREEMENT
[attached]
<PAGE>
NONCOMPETITION AND CONFIDENTIALITY AGREEMENT
THIS NONCOMPETITION AND CONFIDENTIALITY AGREEMENT is entered into as of this
_____ day of__________ , 1997, by and among New Frontier Media, Inc., and
Colorado Satellite Broadcasting, Inc., a Colorado corporation, (collectively
"Buyers") and 1248663 Ontario Inc. ("Seller"),
Background
Buyers are acquiring certain assets and contracting for certain services
from Seller for an Adult Movies Business;
As a condition to Buyers' willingness to consummate the transactions
contemplated by the Purchase Agreement to which this Agreement is an exhibit,
Buyers have required that Seller and Seller agrees to the covenants not to
compete and the confidentiality agreements provided in this Agreement.
NOW, THEREFORE, in consideration of the mutual covenants and agreements set
forth herein and in the Purchase Agreement and foregoing premises, the parties
hereby covenant and agree as follows.
1. DEFINITIONS. The following terms shall have the following meanings:
(a) "Adult Movies Business" means any and all present or contemplated
satellite broadcast services on television or any other medium, including cable
television and the Internet, which broadcasts, replays, and/or otherwise
exploits feature length adult programming and all related promotional content
and other programming of a non-rated or X-rated nature and whose main theme
embodies nudity and/or sexually explicit material between consenting adults and
such other related business assets as are necessary for the operation thereof.
(b) "Purchase Agreement" shall mean the Asset Purchase Agreement between
New Frontier Media, Inc. and Colorado Satellite Broadcasting, Inc. as buyers and
1248663 Ontario Inc., as seller, dated September 5, 1997.
2. NONCOMPETITION. During the period commencing on the Closing Date of
the Purchase Agreement, and ending on the expiration of five years following
that date, Seller and its officers or directors shall not, directly or
indirectly, manage, operate, join, advise, control, or be connected as an
officer, director, employee, partner, guarantor, adviser, or consultant in or
beneficially own or control, directly or indirectly, ten (10) percent or more of
the voting, profit sharing, or equity interests in, any corporation,
partnership, joint venture, or other business venture (an "Interest in a
Business") which competes in the Adult Movies Business of Buyers in any location
throughout the world.
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<PAGE>
3. CONFIDENTIALITY. Seller shall keep confidential all of and shall not
disclose to any other party or provide any other party access to, the
confidential or proprietary information of the assets and services being
acquired by Buyers pursuant to the purchase Agreement not in the public domain,
including but not limited to, information relating to such matters as Buyers or
the Adult Movies Business' products, services, finances, methods of operation
and competition, research data, market reports, distribution methods, marketing
plans and strategies, operational requirements, personnel, customers and
suppliers and distributors, trade secrets, technical information, processes,
systems, procedures, know-how, improvements, price lists, projections and other
financial data, invoices, financial statements, or any other compilation of
information used in the Adult Movies Business which gives Buyers an opportunity
to obtain an advantage over its competitors who do not know or use such
information. This shall include both information acquired by Seller before and
after the date of this Agreement (collectively "Confidential Information")
4. NONSOLICITATION OF EMPLOYEES. For the period commencing on the Closing
Date of the Purchase Agreement, and ending on the expiration date of five years
follow that date, Seller shall not, either on its own account or for any person,
firm, or company, solicit, interfere with, or endeavor to cause any officer,
employee or consultant of Buyers, who is employed or otherwise engaged to
provide services to buyers, to leave his or her employment or engagement with
Buyers or induce or attempt to induce any such person to terminate or breach any
employment, noncompetition, or confidentiality agreement such person may have
with Buyers.
5. NONSOLICITATION OF CUSTOMERS. For the duration of this Agreement,
Seller shall not solicit, induce, or attempt to induce any past or current
customer or distributor of Buyers to do business with Seller or any affiliate in
regard to a matter included in the Adult Movies Business or to cease doing
business in whole or in part with Buyers.
6. STAY OF TIME. In the event Seller violates any provision of this
Agreement, the running of the term of this agreement shall be automatically
tolled starting on the day of such violation and resuming on the date such
violation ceases.
7. EQUITABLE RELIEF. The parties acknowledge and agree that in the
event of any breach of this Agreement by Seller (i) Buyers' remedies at law
are and will be inadequate; (ii) such breach will substantially diminish the
value of the assets proprietary interest that are being acquired by Buyers
through the Purchase Agreement; and (iii) will cause irreparable injury in a
short period of time. In the event of a breach or threatened breach by Seller
of the provisions of this Agreement, the parties hereto agree that Buyers
shall be entitled to equitable relief to protect its interests therein,
including, but not limited to, preliminary and permanent injunctive relief.
Such relief and all other rights and remedies of Buyers provided herein shall
be cumulative with any other rights provided to it in the Purchase agreement
or otherwise provided to it under applicable law and nothing herein shall
preclude Buyers from pursuing any other remedies available to it for a breach
or threatened breach, including without limitation the recovery of damages
for Seller.
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<PAGE>
8. NOTICES. (a) In the event a party believes that there has been a
breach of this Agreement, it shall notify in writing the other party of the
belief and provide a brief statement of the basis for such belief, provided that
any failure to give such notice shall not act as a waiver of or otherwise affect
in any way any rights or remedies the non-breaching party may have or relieve
the other party from any duty or liability hereunder. In the event Seller
acquires or comes to own, control, directly or indirectly, an interest in a
business, whether voluntarily or involuntarily, which business may reasonably be
deemed to compete with the Adult Movies Business, Seller shall promptly notify
Buyers of such fact and identify the interest in the business and the nature of
such business's activities as they may relate to the Adult Movies Business.
(b) All notices or other communications which may be or are required to be
given under this Agreement shall be in writing and shall be deemed to have been
duly given on the date of service if served personally on the party to whom
notice is to be given, or on the third day after mailing if mailed to a party to
whom notice is to be given, by first class registered or certified, postage
prepaid, and properly addressed as follows:
Buyers: New Frontier Media, Inc.
1050 Walnut St. Suite 301
Boulder, CO 80302
Att.: Mark H. Kreloff
with a copy to:Mark L. Driver, Esq.
The Law Office of Mark L. Driver, P.C.
3300 East First Ave., Suite 600
Denver, CO 80206
Seller: Douglas Duncan
2500 Don Reid Drive
Ontario, Canada
K1H 8P5
Stewart Duncan
2500 Don Reid Drive
Ontario, Canada
K1H 8P5
with a copy to:Jamie Wyllie, Esq.
Yegendorf, Brazeau, Sell, Prehogan & Wyllie
55 Metcalfe Street, Suite 750
Ontario, Canada
K1H 6L5
3
<PAGE>
9. SUCCESSORS AND ASSIGNS. This Agreement shall be binding on and inure
to the benefit of the parties hereto and their permitted and respective heirs,
successors and assigns. No party shall have the right to assign this Agreement
without the prior written consent of the other party, except that Buyers shall
have the right to assign its rights hereunder to any successor in interest of
the Adult Movies Business whether by merger, consolidation, purchase of assets
or otherwise, or any other person or entity controlling or which at any time
controls or is under common control with either Buyer or any of their
subsidiaries or successors.
10. SEPARATE COVENANTS. This Agreement shall be deemed to consist of a
series of separate covenants. Seller expressly agrees that the character,
duration, and geographical scope of this Agreement are reasonable in light of
the circumstances as they exist on the date upon which this Agreement has been
executed. However, should a determination nonetheless be made by a court of
competent jurisdiction at a later date that the character, duration or
geographic scope of this Agreement is unreasonable in light of the circumstances
as the now or then exist, then it is the intention and agreement of the parties
that this Agreement shall be construed by the court in such a manner as to
impose only those restrictions on the conduct of Seller which is reasonable in
light of such circumstances and are necessary to assure Buyers of the intended
benefit of this Agreement. If any of the provision of this Agreement shall
otherwise contravene or be deemed invalid under the laws of any state or
jurisdiction, such contravention or invalidity shall not invalidate all of the
provisions of this Agreement but rather is shall be construed as not containing
the provisions or provisions contravening or invalid under the laws of the state
or jurisdiction, and the all other rights and obligations created hereby shall
be construed and enforced accordingly.
11. GOVERNING LAW. This Agreement shall be construed and enforced in
accordance with and governed by the laws of the State of Colorado, without
regard to principles of conflicts of laws and the parties irrevocable commit to
the jurisdiction and venue of the United States District Court for the District
of Colorado to resolve any dispute arising hereunder or related hereto.
12. AMENDMENTS AND WAIVERS. Any amendments or modifications to this
Agreement must be in writing signed by each party hereto or their successors or
assigns. No breach of any covenant, agreement, warranty, or representation shall
be deemed waived unless expressly waived in writing by the party who might
assert such breach. No waiver of any right hereunder shall operate as a waiver
of any other right or the same or similar right on another occasion.
13. ATTORNEYS' FEES. In the event that any action or proceeding is
commenced by any party hereto for the purpose of enforcing any provision of this
Agreement, the parties to such action or proceeding may receive as part of any
award, judgment, decision, or other resolution of such action or proceeding,
their costs, and reasonable attorneys' fees.
4
<PAGE>
14. ENTIRE AGREEMENT. This Agreement and the agreements referred to herein
contain the entire understanding of the parties and supersede all prior or
contemporaneous agreements and understandings.
15. COUNTERPARTS. This Agreement may be executed by the parties in
separate counterparts, each of which when so executed and delivered shall be an
original, but all such counterparts shall together constitute but one and the
same instrument.
In Witness whereof, the parties hereto have executed this Agreement on the
date first above written.
Buyers: New Frontier Media, Inc.
By:
---------------------------
Its:
--------------------------
Colorado Satellite Broadcasting, Inc.
By:
---------------------------
Its:
--------------------------
SELLER:
1248663 Ontario Inc.
By:
---------------------------
Its:
---------------------------
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<PAGE>
[SCHEDULES TO THE 104 AGREEMENT]
SCHEDULE 1(a)
TRADEMARKS LIST
EXXXTASY ADULT TELEVISION (U.S. Trademark Registration No. 1931208)
XTC-COM (U.S. Trademark Application No. 255506/75)
EXXXTASY (U.S. Trademark Registration No. 1916844)
TRUE BLUE (U.S. Trademark Application No. 255508/75)
<PAGE>
SCHEDULE 1.1
FIRST LINK LICENSE AGREEMENT
THIS AGREEMENT made the - day - of, 1997.
BETWEEN:
1043133 ONTARIO INC.
("104")
THE FIRST PARTY
AND:
COLORADO SATELLITE BROADCASTING, INC.
("CSB")
THE SECOND PARTY
WHEREAS:
(1) pursuant to the terms of an Asset Purchase Agreement made 5 September 1997
among New Frontier Media, Inc., CSB and 104, 104 is required to grant to
CSB a license for certain subscription management software (known as "First
Link" version 2 and herein called the "Software"); and
(2) the parties desire to set forth below the terms of such license.
FOR VALUABLE CONSIDERATION, the receipt and sufficiency of which are
acknowledged, the parties agree as follows:
1. GRANT OF LICENSE. In consideration of CSB's agreement to abide by the
terms and conditions of this License Agreement, 104, as licensor, grants to
CSB a non-exclusive, royalty-free license to use and display the Software
on a single computer with a single central processing unit (collectively,
the "CPU") at a single location so long as CSB complies with the terms of
this License Agreement and to use the source code related to the Software
solely for the purpose of maintaining the Software (and, in this Agreement,
the term "Software" includes such source code). The CPU on which CSB uses
the Software may be a multiuser system and this License Agreement covers
all users who have access to the CPU. 104 reserves all rights not
expressly granted to CSB. CSB may not loan, rent, lease, or transfer the
Software to another except as part of a permanent transfer of the Software
(as provided below) of all of the Software and printed materials.
<PAGE>
2
2. OWNERSHIP OF SOFTWARE. CSB shall own the magnetic or other physical media
on which the Software is originally or subsequently recorded or fixed, but
an express condition of this License Agreement is that 104 retains title
and ownership of the Software recorded on the original copy(ies) and all
subsequent copies of the Software, regardless of the form or media in or on
which the original and other copies may exist. This license is not a sale
of the original Software or any copy.
3. COPY RESTRICTIONS. This Software (including any images, photographs,
animations, videos, audio, music, and text incorporated therein) and the
accompanying written materials are copyrighted. Unauthorized copying of
the Software, including Software which has been modified, merged, or
included with other software, or of the written materials is expressly
forbidden. CSB may be held legally responsible for any copyright
infringement which is caused or encouraged by its failure to abide by the
terms of this License Agreement. Subject to the aforementioned
restrictions, CSB may make one copy of the Software solely for backup
purposes. CSB must reproduce and include the copyright notice on the backup
copy.
4. USE RESTRICTIONS. CSB may physically transfer the Software from one
computer to another provided that the Software is used on only one
computer at a time. CSB may not distribute copies of the Software or
accompanying written materials to others. CSB may not modify, adapt,
translate, reverse engineer, decompile, disassemble, or create derivative
works based on the Software. CSB may not modify, adapt, translate or
create derivative works based on the written materials.
5. TRANSFER RESTRICTIONS. This software is licensed only to CSB and may be
transferred by CSB only on a permanent basis provided the transfer is made
in conjunction with the purchase of substantially all of the outstanding
capital stock or assets of CSB by the third party and further provided that
CSB retains no copies and such third party agrees to the terms of this
License Agreement. If the Software is an upgrade, any transfer must
include the most recent version and all prior versions. In no other event
may CSB transfer, assign, rent, lease, sell or otherwise dispose of the
Software on a temporary or permanent basis.
6. TERMINATION. This license is effective until terminated. This license
will terminate automatically without notice from 104 if CSB fails to comply
with any provision of this License Agreement. Upon termination CSB shall
destroy the written materials and all copies of the Software, including
modified copies, if any.
7. UPDATE POLICY. 104 may create, from time to time, updated versions of the
Software. 104 will make such updates available at no cost to CSB. 104
makes a commitment to provide any updates or revisions to the Software.
8. LIMITED WARRANTY. The Software and accompanying written materials are
provided "as is" without warranty of any kind. 104 does not warrant,
guarantee or make any representations regarding the use, or the results of
use, of the Software or written materials in terms of correctness,
accuracy, reliability, currentness, or otherwise. The
<PAGE>
3
entire risk as to the results and performance of the Software is assumed by
CSB. If the Software or written materials are defective CSB, and not 104,
shall assume the entire cost of all necessary servicing, repair, or
correction. 104 warrants to CSB that the media on which the Software is
recopied is free from defects in materials and workmanship under normal use
and service for a period of 90 days from the date of delivery as evidenced
by a copy of the receipt.
THE ABOVE IS THE ONLY WARRANTY OF ANY KIND, EITHER EXPRESS OR IMPLIED,
STATUTORY OR OTHERWISE, INCLUDING BUT NOT LIMITED TO THE IMPLIED
WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE THAT
IS MADE BY 104. NO ORAL OR WRITTEN INFORMATION OR ADVICE GIVEN BY 104,
ITS AGENTS OR EMPLOYEES SHALL CREATE A WARRANTY OR IN ANY WAY INCREASE
THE SCOPE OF THIS WARRANTY AND CSB MAY NOT RELY ON ANY SUCH INFORMATION
OR ADVICE.
Neither 104 nor anyone else who has been involved in the creation,
production or delivery of the Software shall be liable for any direct,
indirect, consequential or incidental damages (including damages for loss
of business profits, business interruption, loss of business information,
and the like) arising out of the use or inability to use the Software
even if CSB has been advised of the possibility of such damages.
In the event of any conflict between any provision in this limited
warranty and any applicable provincial or state legislation, the
applicable provincial or state legislation takes precedence over the
contravening provision.
9. GOVERNING LAW. This License Agreement is governed by the laws of the
Province of Ontario and the laws of Canada applicable therein and shall
benefit the parties and their successors.
<PAGE>
4
10. LEGAL COSTS. Should any dispute be commenced between the parties
concerning any provision of this Agreement or the rights and duties of
any party in relation thereto, the party prevailing in such dispute shall
be entitled, in addition to such other relief as may be granted, to a
reasonable sum as and for its attorneys' fees in such connection with
enforcing its rights or defending itself, as the case may be.
IN WITNESS OF WHICH the parties have executed this Agreement.
)
) 1043133 ONTARIO INC.
)
)
) Per:
) ------------------------------
) Authorized Signing Officer
)
)
) COLORADO SATELLITE
) BROADCASTING, INC.
)
)
) Per:
) ------------------------------
) Authorized Signing Officer
)
<PAGE>
CONSENT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
We hereby consent to the use in the New Frontier Media, Inc. registration
statement on Form SB-2 Amendment No. 1, of our report dated July 3, 1997,
except for Note 10 as to which the date is October 7, 1997, accompanying the
consolidated financial statements of New Frontier Media, Inc. for the years
ended March 31, 1997 and 1996 which is part of the registration statement and to
the reference to us under the heading "Experts" in such registration statement.
SPICER, JEFFRIES & CO.
October 20, 1997
<PAGE>
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
We consent to the reference to our firm under the caption "Experts" and to
the use of our report dated June 27, 1997, with respect to the combined
financial statements of Fifth Dimension Communications (Barbados) Inc.,
1043313 Ontario Inc. and Merlin Sierra Inc. included in the Registration
Statement on Form SB-2 related to the issuance of common stock of New
Frontier Media, Inc.
ERNST & YOUNG
Ottawa, Canada ----------------------------
October 20, 1997 CHARTERED ACCOUNTANTS
