[LETTERHEAD]
DISTRIBUTION AGREEMENT
This distribution agreement entered into on this 6TH DAY OF MARCH 1998,
between COLECCIONES DE XXXXXX, INC. AND R-TOWN ENTERTAINMENT, constitutes the
following understanding. R-Town Entertainment agrees to nationally distribute
the CD entitled "SABOR A MI" featuring the Artist "XXXXXX XXXXXX" and the
fragrance "SABOR A MI" which will be packaged with the CD "SABOR A MI".
The term of this agreement shall commence on the date hereof and shall
continue for an initial period of twelve (12) months, and can be renewed for
an additional twelve (12) months upon mutual written agreement by both
parties.
Colecciones de Xxxxxx,Inc. shall provide distributor with all promotion
materials necessary to effectively promote and distribute said CD and
fragrance. It is further understood that from time to time Artist will make
herself available for interviews and other personal appearances in connection
with the promotion, exploitation and sale of said CD and fragrance.
We shall pay you, with respect to sales of "Sabor A Mi" CD single, the rate
of $2.25 per CD when sold separately and $13.50, per bottle of 1 oz. "Sabor A
Mi" Parfum spray. In computing the number of CD's and Fragrances sold
hereunder, distributor shall have the right to deduct returns and credits,
including, without limitation, (i) those on account of any return or exchange
privilege, (ii) defective merchandise, and (iii) errors in billing or
shipment.
Distributor shall have the right to sell the CD's and the fragrance "Sabor A
Mi" under any merchandising plans or terms it may deem desirable, provided
that all plans and terms are first approved by Colecciones de Xxxxxx, Inc.
Distributor shall also have the right to contract other distributors to
effectively promote and distribute said CD and fragrance.
Statements shall be rendered every ninety (90) days. Statements shall be
accompanied by payment for all product sold for the three (3) months
preceding, less reasonable returns. No payment shall be made for CD's and
fragrance given away or used for the purpose of publicity, advertising or
samplers.
Payments for CD's and fragrance sold for distribution outside of the United
States shall be computed in the same national currency as Distributor
accounted to by its licensee and shall be paid at the same rate of exchange
as Distributor is paid, provided, however, that payment on CD's and
fragrances sold for distribution outside of the United States shall not be
due and payable by Distributor until payment thereof has been received by
Distributor in the United States in United States Dollars.
Distributor shall have the right to use and permit others to use, alone or in
conjunction with Artist's name (legal and/or professionals), likeness, voice,
sound effects, and biographical material in connection with the advertising
and/or sale of CD's and fragrance.
Each party represents and warrants to the other party that is has the right
to enter into this agreement and perform its obligations hereunder.
If the foregoing correctly sets forth your understanding of our agreement,
please indicate by signing in the space provided below.
AGREED AND ACCEPTED
/s/ Xxxxxx Xxxxxx /s/ Xxxxxx Xxxxxxxxx
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Xxxxxx Xxxxxx Xxxxxx Xxxxxxxxx
(Colecciones de Xxxxxx, Inc.) (R-Town Entertainment)
