Quicksummer Entertainment LLC

City National Bank

400 N .ROXBURY DR. 4TH FLOOR
BEVERLY HILLS, CA 902 1 0
(3 1 0) 888-6 1 60
FAX: (310) 888-6157

Tina Van Der Zee
Vice President

Entertainment

March 11, 1998

Jaanus Silla
Quicksilver Entertainment
1927 Prosser Ave.
Los Angeles, CA 90025

RE: Film Financing Request

Dear Jaanus:

Thank you for your inquiry regarding motion picture financing. This letter will outline some of the general parameters which City National Bank employs in single picture financing.

We will lend against acceptable collateral such as a distribution agreement from a domestic or foreign distributor whom we deem to be creditworthy. We will also lend against a standby letter of credit issued by a domestic bank acceptable to us, or by a foreign institution confirmed by an acceptable domestic bank, or liquid collateral such as U .S. Treasury bills. The amount of the collateral MUST be sufficient to cover the negative cost of the film as well as all financing charges which include an interest reserve for the entire term of the loan inclusive of the force majeure period, loan fees and bank legal fees which are paid by the borrower .

We also always require completion insurance to protect both the bank and the borrower or investor. Currently we will accept completion guarantees issued by International Film Guarantors, Cinema Completions International, Film Finances or Motion Picture Guarantors. The bank always takes a first security interest and files a mortgage of copyright on the subject film. The completion guarantor typically files a lien against the film subordinate to the bank lien. Above and beyond these general parameters most other items are specific to a particular deal and therefore subject to negotiation.

At this time, we will lend directly against distribution contracts from any of the following domestic distributors without requiring an additional Letter of Credit: Disney, Paramount, Warner Brothers, Universal, Columbia/Sony, and MGM/UA. Any other domestic distributor and any foreign distributor would have to be examined on a case-by-case basis. If we determine that we are unable to accept a certain distributor not on the above list, we would then require the additional backing of a Letter of Credit.

MEMBER FDIC

I trust this information is sufficient for your purposes. Once you have a sample of the Letter of Credit verbage, please feel free to ca1l me so that we may discuss how further to proceed.

Thank you for your interest and good luck with your project.

Sincerely,

Tina Van der Zee
Tina Van der Zee
Vice President