VIP MOTION VIP Motion is a producer and distributor of motion picture time. It specializes in action adventure films* popular with males , mostly in the lean and young adult market While it has only been in business for ! years , It has produced several moneymaking hits as well as many more ming "{" films that are shown on cable networks and through video rental flores . VIP Motion has recently completed the production of five new films . This set of five time contains one* film ( Super Fighters"; that marketing research indicates will be a lop box office hit The other four 1S F 1 1 . SF II1, 5F NV. SF VI are Tiller time that will be bundled with the hit and licensed to theatres for Exhibition. To receive access to the hit, theatres must agree to Show' all time & minimum number of times. In July 2005, VIP Motion entered into an exclusive contract with FlexMedia Theatres , Inc . ( Flexibledial , ` Lange the atre than with approximately $ 75 Heated across the United States . This contract provided in part as follows ! A Newmont. HexMed a t's granted the right, Lounge, and permission to display the the I'ms listed here` during the contras gangs . hi cons deration at this contract, HP Malon will receive`` 1 . $5.090.090. payable $2.500. 090 upon contact & gnature and $2. 500.090 on September 1 . 2. 450^ ^ each I'm showing In each location. Contract period. The contract gonad shall be he By month's commenting on September 1 . 200 0 Limitation on screenings . Flashed a agrees to show Super Fighters no more than $2 ITIs per theater and the hour accompanying time ISF 11. SFULL OF MY and SF Ving lower Than 14. ITIs each pur theater. Exclusivity: FlexMed & Shall have Exclusive screening night's during the contract poked UP Motion Acknow Edges Hat an integral inducemimi in cans duration of the contact is Pleaded. a's Interest in banks the ba` bounce , Without competition from other theaters In the market, during the contract pangs . At the signing of the contract, Flailleda paid $2.500,000 of the $5.000,000 PlexMedia sent check & to VIP Motion for $ 2.500,000 on September 1 2006, and $5 162.500 on January 20, ZooT, along with an audited statement detailing the number of showings as of December 31, 2006. The following is a summary of that information ! Film Number of Showings Amount DUE* Super Fighters 8.550 $ 4, 275, 000 SF TIV 2, 375 1 , 187, 500 10, 925 $5, 462, 50.0 In March 2007. VIP Motion received a demand notice from Plexlledis that all monies previously paid were to be returned a they would file a lawsuit . In their letter , they enclosed a newspaper clipping from & movie theatre in Toronto , Canada that was advertising the set of five films for showing the second week of February ZooT.Sources of revenue in case Contract fees Exhibition fees Exhibition fees = Revenue per showing X number" of showings Budgeted showings should include the expected maximum of Super Fighters and the minimum for SFIL -V
