02-DEC.2008 10:28 #7699 P.col /o0z DCLARATION OF MENAHEM GOLAN I Menahem Go! 1, The facts called as a witness, I c 2. Tam 80 ye declare as follows: d within are based on my first hand knowledge, and, if 1d and would testify competently thereto under oath. old and I reside in Tel Aviy, Israel. My occupation is: director and producer. { also wrote many screenplays. | produced more than 200 movies all over the wo1 3. Inthe late Films, Inc. (ak/a "Ci with Mr. Yoram Globi Id and directed approximately 50 movies. 0's through the carly 90s, I was one of the principals of Cannon lon Group"), a California-based production corporation together 4. Cannon's olicy was to negotiate future technologies and future medias grants from authors, suth as composers and lyricists, and get it in writing, signed by the author. However, there Were instances where this was not possible or just did not happen, For example, France and other countries statutorily regulate the ability to assign future media rights. In those cases, it was Cannon's policy that if the author did not sign a specific futufe technologies clause including unknown and unforeseen technologies or medias, Cannon did not acquire such rights. When a motion picture was distributed in a spqcific media such as video (VHS), Cannon treated the author's agreement to release tHe motion picture on a specific media, such as video, as simply an agreement to distribjate the motion picture containing the author's contributions on that media only, i.e. video alone. 5. "The Ap| filmed in Berlin and 6. met the le" was a motion picture produced in 1979 in Germany. It was publicly exhibited in the Cannes Film Festival in France. mposer, Coby Recht, in Isracl. He showed me original work on a musical in Hebrew containing Hebrew lyrics and music for such songs. I wanted to transform it into a njovie in English. rent was signed on April 9, 1979 between Recht and "Golan- "in Israel. It was drafted by my attorney in Tel Aviv. Recht jh 7. Anagrest Globus Productions Lt02.DEC.2008 10:23 #7697 P.002 /004 assigned the rights to the already existing Hebrew musical. He agreed to compose songs for the new movie. His spouse at the time agreed to write the lyrics. I do not know if she signed the|agreement. They did not assign, sell or transfer rights to the new compositions and| English lyrics. 8. As¥ discifssed with Recht, the agreement was that the movie be exploited theatrically, on stage apd on records (vinyl). Video rights were not spelled out in the agreement, but Recht was either silent about it, or agreed to it orally, which in any event was limited to vdeo only and not to any form of home viewing. ey "Byprodycts” of the movie was understood to be related merchandise items such as posters, memorabilia and souvenir items based on the plot or characters (which were conceived! by Recht). 10. The i did not address all the bundle of rights a producer usually takes from the author, {such as rights to distribute, publicly perform or make derivatives, Those wie to be negotiated in a comprehensive later agreement, which was never negotiated r signed. 11. There we no “future technologies clause” in the agreement with Recht. Also, there was no." medias clause". The agreement as written was limited to production of movies n film, production of plays (stage) and records (vinyl), "to any extent" (in Hebrew "njida"), That means that the exploitation in the three methods stipulated was not lim}ted territorially, i.e. in any Country, not limited by time, i.e. anytime, and not limitpd by scope. 12, Recht ingisted on a contract that reserved copyrights to himself and his former wife. Recht agreed to split publishing royalties 30%-50% and have it collected by SACEM, the Frendn equivalent of ASCAP. The agreement therefore incorporated French law to the extdat it governed SACEM's bylaws and rules. 13. Recht was to be paid for his works in four installments, but he only received the first two.| We never entered into a follow up agreement with Recht. sed him that Cannon will protect his copyrights to his music 2 Ay02.DEC.2008 10:23 #7697 P.003 /008 worldwide, so that he fan rely on Cannon to take the steps to protect his copyrights. 15. do not remember if or how rights were transferred from Golan- Globus Productions, Ltd to i Films. Inc. 16. Cannon 17. Before arrived in Los Angele suggested that we hir local picture and Mr, pictures. The definiti Recht Yotvat on Ame} Recht on the music. nature of grammar s| 18. Clinton the Rechts, they didn} 19. Clinton lyrics. It was the first certificate, he wrote may not be accurate, officials how to comy -ver accounted to Recht on the proceeds from the movie. movie was produced in 1979, Recht and his former wife to continue work on the new compositions and lyries. T an assistant to save time. An advertisement was placed in a eorge Clinton showed up with no previous experionce in motion in of his work was simply to assist. Clinton worked with Iris eanizing the English of the Iytics. He did not work with Coby is contributions were not creative or original. It was more in the Iling, English language tutor, and-a "go-getter". ed for credits, and because of the friendship developed with mind to help build up his resume in the industry. led a certificate with the Copyrights Office for the music and ime he did this for a cannon movie. What he designated in the his own without consulting anyone. The information therein nd was not checked by Cannon. He did not ask me or other lete the certificate. 20. Inthe abkence of a written agreement signed by the author containing a signed assignment af future technologies clause drafted in language commonly used in Hollywood, Cannon future technologies o to exploitation of a exploit in video only jever acquired rights to exploit the author's music or lyrics in future medias. I also conclude that the author's oral agreement vie on video was understood by Cannon as an agreement to id not in other categories, such as DVD, laser technology, intemet, ringtones anfl other unknown and unforeseen technologies. 21. Thereby lirrevocably assign whatever rights and copyrights in the literary rights to the screenplay of the Apple to Coby Recht, now and forever, past and present, if, aA