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(c)(3)(B).

At any time before final judgment is entered, a complaining party may elect to recover an award of statutory damages for each violation of section 1202 in the sum of not less than $2,500 or more than $25,000. 1204. Criminal offenses and penalties a. In General. Any person who violates section 1201 or 1202 willfully and for purposes of commercial advantage or private financial gain 1. shall be fined not more than $500,000 or imprisoned for not more than 5 years, or both, for the first offense; and 2. shall be fined not more than $1,000,000 or imprisoned for not more than 10 years, or both, for any subsequent offense. The DMCA provides for minimum statutory damages in the sum of not less than $2,500 or more than $25,000 as to each violation. In addition, violation of the DMCA can subject a violator to imprisonment for not more than 5 years. Copyright management information (CMI) includes the name of the author of the work. Mr. Tylors name is included on his images wherever those images legitimately appear, but it has been cropped off the images for use on your website. Under 1202, this subjects you to a minimum statutory damages sum of $2,500 for the DMCA violation. You may be subjected to the maximum statutory damages sum of $25,000 for the DMCA violation. Either damages award would be in addition to the damages for the copyright infringement, and attorneys fees and costs. In order to avoid the delay of litigation, Mr. Tylor is willing to settle his DMCA claim and copyright infringement claims for the known infringements through a retroactive license issued by Hawaiian Art Network LLC, as an agent of Mr. Tylor, for the infringing past uses and releases as to such claims. For settlement purposes, Hawaii Art Network offers a retroactive license from the date of this settlement back three years for the past website uses shown below only, for a fee of $10,000.00 USD, paid in full before close of business on June 01, 2011, without Hawaii Art Network and/or Mr. Tylor being caused to incur further attorneys fees and costs. Any further attorneys fees and costs that Hawaii Art Network and/or Mr. Tylor must incur in order to resolve this matter will be added to the settlement demand. This settlement amount anticipates immediate removal of the images from the website by June 01, 2011 with no future uses. Any other uses of the image or any other image must be negotiated separately with Hawaii Art Network. OFFER TO SETTLE HAWAIIART.COMS CLAIMS Accordingly, we hereby demand that you: 1. Immediately cease and desist from all unlicensed use of the above images, and remove the images from the website/s and delete all digital copies of the

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images from your computers and digital storage devices, and destroy any hard copies of those images maintained in your files. 2. Remit the full $10,000.00 USD to my office by June 01, 2011, Payable to: Brandon Scott Sand Attorney at Law, Client Trust Account. A copy of the transmittal of your payment with a copy of the check should also be mailed directly to Hawaii Art Network, 1888 Kalakaua Ave., Suite C312, Honolulu, HI 96815. Upon receipt of settlement amount stated above, an executed agreement not to pursue legal action against you will be furnished. Should you choose not to cooperate with these demands, we reserve the right to seek all available remedies, as well as attorneys fees and costs. Hawaii Art Network has a commitment to their photographers to enforce the photographers copyrights for their images. Consequently, they must take all infringements of those copyrights seriously, and they must take all appropriate steps to pursue those claims. If you carry business insurance, now may be an appropriate time to contact your carrier to determine whether copyright infringement is covered under your policy (many policies cover it as an advertising injury). NOTICE TO PRESERVE DOCUMENTS AND DATA You are now on notice that litigation is likely regarding your actions concerning HawaiiArt.coms photographs. You are now obligated and you have a duty to preserve all evidence that may be relevant to the dispute discussed above and that may be the subject of pending litigation. This duty of preservation extends to, but is not limited to, data files, e-mails, calendars, telephone logs, access lists, and logs that are located on your computer networks, e-mail servers, mainframes, individual computer workstations, and external drives, or are located on any of those devices within your control but not owned by you, such as your website host. Specifically, but not exclusively, you are on notice that you must preserve all evidence of all your uses of HawaiiArt.coms photographs. You are required by law to suspend any practice, even a normal or routine practice that might purge, delete, or overwrite any electronic document or other evidence, including database matter and related structural information, files remnants, residual and hidden data. This duty extends to your employees and agents. We request that you notify any such employee or agent of this retention request immediately. This duty also extends to the preservation of replaced computers, hard drives, and other storage media. If you back up your computer drives, you must preserve the back-up files, as well. We request that you immediately back up and archive any documents, including e-mails and all other communications, between you and all other persons and entities that relate to HawaiiArt.coms photographs. We further request that you suspend any act or practice that would cause de-fragmentation, compression, or reformatting of those hard drives. Sanctions for violating any of the foregoing duties can be severe and include substantial monetary sanctions, adverse inferences in evidentiary rulings, and the entry of judgments by default. We remain hopeful that we can resolve this dispute short of litigation. The Page 4 of 7

above duties, however, must be satisfied during any settlement or other discussions that we may have. Finally, please be aware that being a Canadian citizen will not shield you from liability for infringement. Because your website does business with clientele in the United States, American courts will be able to exercise in-personam jurisdiction over you for infringement against a U.S. citizens copyright. Should you choose not to defend yourself in American court, a default judgment may be issued against you, and forwarded to a Canadian attorney for collection against your assets. Canadian courts recognize and enforce foreign judgments if there is a REAL AND SUBSTANTIAL CONNECTION between the defendant and the American jurisdiction in which judgment has been obtained. Additionally, copyright protection in Canada is extended to Canadian citizens, or citizens of countries that are parties to certain international treaties. See IPIC. The Canadian Copyright Act creates criminal offenses and imposes penalties which include, for indictable offenses, fines of up to $1 million and imprisonment for a maximum of five years. You should consult with counsel experienced in copyright litigation concerning this matter. This is a settlement offer subject to Rule 408 of the Federal Rules of Evidence. Very truly yours, Brandon S. Sand Attorney at Law 699 14th St. Suite 252 San Diego, CA, 92101 Enclosures: (1) Source/s of Image (2) Proofs of Copyright Infringement

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