Distribution Agreement

There is no charge for filmmakers to have their work uploaded onto the Serenergy video on demand (VOD) platform. The decision to either sell the film or make it available for free is entirely up to the filmmaker. All of the films that are rented or sold are housed on an external Vimeo website. Purchasers of any film, upon clicking on any film, are taken to the film’s VOD page on the Vimeo site (actually called “Vimeo On Demand”) where they can elect to rent the film or buy it outright. Films that are shown for free are also housed on the external Vimeo site and are embedded on the Serenergy page for direct viewing. When a video is sold on Vimeo on Demand, Vimeo will pay 90% of the gross revenue after transaction costs have been deducted. These transaction costs include any transaction fees from the buyer’s payment method and VAT/GST & US sales tax where applicable. A full explanation on transaction fees can be viewed here. Information on selling video on Vimeo in general can be viewed here. All payments made by Vimeo to Serenergy for videos sold will be distributed as follows: 1) 5% will be kept by Serenergy to pay for Hawaii sales tax; 2) 70% of the remaining amount of the payment will be provided to the filmmaker; and 3) the remaining 30% will be kept by Serenergy. NOTE: In the event the film is legitimately brought to Serenergy by a referral representative other than the filmmaker (i.e. the referral representative has the authorization of the filmmaker to represent the film), then the 30% owed to Serenergy shall be reduced to 20%, and 10% of the remaining payment shall be accorded to the referral representative as a finder’s fee. The filmmaker’s share shall remain 70%. The following flow chart details the process of uploading films wherein content can be displayed for free or be sold and if so how resultant sales revenue is distributed.

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