General.

The distribution of films involves two principal activities - the acquisition of rights from the licensor or the seller, usually the producer or writer of the film, and the licensing of the distribution rights to subdistributors in their respective markets. In general, the rights obtained from the producer relate to all media, including theatrical distribution, video and all forms of television. In some cases, the licensing of rights to subdistributors may exclude certain territories and/or media. It is unlikely that subdistributors would bypass the Company and deal directly with the licensors of film rights. Historically, independent licensors...