02.DEC.2008 10:23 #7697 P.001 /o08 WECLARATION OF MENAHEM GOLAN I Menahem Golfn, declare as follows: 1. The factsistated within are based on my first hand knowledge, and, if called as a witness, I 2. Tam 80. director and producer.| I also wrote many soreenplays. I produced more than 200 muld and would testify competently thereto under oath. yhars old and I reside in Tel Aviv, Israel. My occupation is: movies all over the warld and directed approximately 50 movies. 3. Inthe laid 80s through the early 90s, I was one of the principals of Cannon Films, Inc. (a/k/a "Cs with Mr. Yoram Globj grants from authors, author. However, thei .on Group"), a California-based production corporation together 4. Cannon's|policy was to negotiate future technologies and future medias im as composers and lyricists, and get it in writing, signed by the ‘were instances where this was not possible or just did not happen. For example|France and other countries statutorily regulate the ability to assign funure media rights. In those cases, it was Cannon's policy that if the author did not sign a specific funjre technologies clause including unknown and unforeseen technologies or mediap, Cannon did not acquire such rights. When a motion picture was distributed in a speciffe media such as video (VHS), Cannon treated the author's agreement to release agreement to distrib .¢ motion picture on a specific media, such as video, as simply an the motion picture containing the author's contributions on that media only, i.e. video|alone. 3. “Snow ite" was a motion picture produced in 1987 in Israel. It was filmed in Israel via'g Cannon Israeli subsidiary (at the time) "G.G. Israel Studios Jerusalem, Ltd.", whi¢h provided production services and facilities. The general manager was Itzik it who is a resident of Israel. My role was to generally oversee the progress. Mr. Ko] recruited composer Arik Rudich to compose the music for Snow White. The negotialigns were between Mr. Kol and Rudich in Israel, and reported to me by Kol. Py f02.DEC.2008 10:25 #7699 P.002 /00z 6. Rudich ins|sted on a contract that spelled out his freelance status and reservation of residuary|copyrights to himself, Rudich insisted on collecting 100% of the publishing royalties|from his music worldwide, and Itzik Kol promised him that Cannon will protect hisleopyrights to his music worldwide, so that he can rely on Cannon to take the step necessary to protect his copyrights wherever the music would be exploited. 7. Due to adrhinistrative overload in our operations in California the preparation of such agrfement was delayed, and no agreement was eventually sent to the author, Rudich, Israeli law requires a signed agreement for exclusive exploitation of copyrights 8. Some post-production edits were made on Rudich's music, but this never affected the nature of 9. Inthe absgnce of a written agreement signed by the author containing a s original copyrights. signed assignment, and especially a clause providing for assignment of future technologies drafted i rights to exploit the author's music in future technologies or future medias. I also conclude that the auth« was understood by Ci categories, such as D' hanguage commonly used in Hollywood, Cannon never acquired '5 silence or oral agreement to exploitation of a movie on video 1on as an agreement to exploit in video only and not in other , laser technology, internet, ringtones and other unknown and unforeseen technologiqs. Menahem Golan SWoen-te befire me, PENG, KOZ 08 wave» borane sass Te Mostte init Anvocstee None 7, 29 yar pny 1999 2 ’k Rabin Isczel Tel-Aviv Fax: 03-5 963387 ,03-5243381 50 * “ere