1.3 By signing this contract, Sun TV sends GTM a letter from owners or copyright managers and any other rights to the Cinematheque, in the formal form attached to Schedule 2. Sun TV confirms that Beijing Audio Video Publishing House, an organization owned and controlled by the Ministry of Culture of the People`s Republic of China (« PRC »), is the sole owner or responsible for copyright and all other rights in the library, unless otherwise stated. A rights sale contract is used when a producer wants to buy a script or story directly from a writer or other owner. In general, these agreements are referred to as « rights awards » and often include the sale of « single and exclusive rights to cinema, television, photographic recording, merchandising and commerce, as well as all allied rights and accessories throughout the universe in the long term. » Simply put, a rights sale contract provides for the purchase of all rights related to a film, not just the rights to purchase the script. The basic agreement required for an LLC is called an enterprise agreement that establishes the rules of the LLC and is comparable to a « shareholder pact » for a company. The enterprise agreement must address key issues such as management control, the extent of LLC`s business, the filmmakers` personal role and royalties, as well as the role and obligations of investors, as well as the priority and allocation of the return on their investments. While many people do not like to discuss the dissolution of a business at the time of its creation, the enterprise agreement should nevertheless address what would be necessary if the LLC were to be dissolved or if new members were to be added due to death, disability or budget deficit. This agreement, as well as the exhibitions and schedules, is defined by the parties as the definitive expression of their agreement and must be a complete and exclusive statement of the agreement and understanding of the parties as to the purpose and in this form. There are no restrictions, promises, guarantees or obligations, except for those mentioned here or here. This agreement, along with exhibitions and schedules, replaces all previous agreements and agreements between the parties with respect to this purpose.
1.4 GTM must edit, adapt, modify and/or reallocate productions before it is authorized to use, exhibit, resell and reuse newly processed works in accordance with item 1.1, and after this processing, adaptation, modification or reallocation, all rights to and from the newly processed plant belong to GTM.