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www.amgglobalentertainmentgroup.

com
scaterbone@live.com
717-669-2163
Stanley J. Caterbone
Advanced Media Group
1250 Fremont Street
Lancaster, PA 17603
IN THE UNITED STATES THIRD CIRCUIT COURT OF APPEALS
_______________________________________________________________________________
Lisa Michelle Lambert
:
PETITIONER
:
:
v.
:
CASE NO. 3400-2015
:
:
Lynn Bissonnette, et al.,
:
RESPONDANT
:
:
Stanley J. Caterbone
APPELLANT

:
:
:
:

SUBMISSION AS EXHIBIT BY APPELANT


EXHIBIT of Computer Expertise by Appellant November 3, 2015

I hereby on this 3rd

day of November, 2015, submit for considerations in the above captioned case the

attached document as an EXHIBIT to be considered by the court in the deliberations of this case. The Appellant is
submitting this document as a replacement for the DOCUMENT submitted on November 2, 2015. In addition
the Apppellant would like to submit via link the following document titlled Exceptional Interviews on
Video Re: U.S. Sponsored Mind Control and Related Technologies for considerations in evaluating
the credibility of the Appellant:
Exceptional

Interviews

on

Video

Re:

U.S.

Sponsored

Mind

Control

and

Technologies Click on this link.

Date: November 3, 2015

/s/ Stanley J. Caterbone


Stanley J. Caterbone, Pro Se
Appellant
1250 Fremont Street
Lancaster, PA 17603
(717)-669-2163
scaterbone@live.com
http://www.amgglobalentertainmentgroup.com/__

Related

U.S. Third Circuit Court of Appeals


Case No. 15-3400, Lisa Michelle Lambert Habeus Corpus
Order Appealed: Motion for Summary Judgment Dismissed October 14, 2015
ReSUBMISSION Statement by Appellant November 3, 2015

Stan Caterbone and ADVANCED MEDIA GROUP Expertise in


Computer and Information Related Technologies
1975 to 2015

TABLE OF CONTENTS

1. Computer Programming Grade A in 1975 at Lancaster Catholic High School Fortran


Computer Language
2. Computer & Man Grade A in 1977 at Millersville University Basic Computer
Language
3. Principals of Data Processing Grade A in 1978 at Millersville University Cobol
Computer Language
4. "Escaping the UNIX Tar Pit" Article for CD-ROM Magazine by Stan Caterbone and
John Garofolo, Computer Scientist at NIST
5. Linda Helgerson and Helgerson Associates Correspondence to Monthly Authors of
DISC Magazine 1991
6. Advanced Media Group & Department of Defense Bidding Documents
7. Letter From Defense Mapping Agency to Stan J Caterbone re Bidding Process
November 14, 1990
8. Letter to Defense Mapping Agency From Stan J. Caterbone November 20, 1990
9. Letter to Congressman Robert Walker From Stan J. Caterbone December 6, 1990
10.

Letter From Defense Mapping Agency to Stan J. Caterbone October 23, 1990

11.

Letter From Congressman Robert Walker To Stan J. Caterbone November 8,


1990

12.

Letter From Defense Mapping Agency to Congressman Robert Walker re


Protest by Stan J. Caterbone October 31, 1990

13.

Letter From Assistant Secretary of Defense to Congressman Robert Walker


re Stan J. Caterbone Protest October 23, 1990

14.

THE DIGITAL MOVIE Joint Venture Proposal for The Sony


Organization

15.

Letter of Intent for Norris Boyd re Digital Movie

16.

Letter to Stan J. Caterbone From Flatbush Films May 21, 1987

17.

Letter to Power Station From Flatbush Films re Stan Caterbone Schedule in


New Jersey

18.

Movie Prospectus for Investors

19.

Flatbush Films Production Schedule June 12, 1987

20.

Stan J. Caterbone's Plane Flight Log June 1987

21.

Ted Gamillion Film Studio Documents

22.

Law Firm of Capello & Foley Reciept for Documents July 21, 1987

23.

Attorney Joe Roda Invoice July 22, 1987

24.

Letter to Capello & Foley re Summary of Case September 29, 1987

25.

Letter From Patent Attorney re Digital Movie SEIDEL, GONDA,G


OLDHAMMER& ABBOTT,P . C. June 25, 1987

26.

Advanced Media Group And Escomp Search Engine Agreement Draft of 1990

27.
28.

THE DIGITAL MOVIE Joint Venture Proposal for The Sony

Organization
1. SONY CORPORATION
2. INTRODUCTION
3. SONY'S ROLE
4. SONY/PSDMS
5. TIMING
29.

MARKETING & DISTRIBUTION

30.

PRODUCT DEVELOPMENT

31.

FINANCIAL STRUCTURE

32.

June 1, 1987 Business Week Cover Story: SONY'S CHALLENGE

33.

STATISTICS FOR SONY DEAL

34.

Beyond the Bijou Article: SOPHISTICATED FILM TECHNOLOGIESAND


FUTURISTIC FORMATS ARE REDEFININGTHE NATURE OF COHTEMPORARY MOVIE
THEATERS.

35.

Investors Proposal

36.

Table Of Contents

37.

Section II: The Project

38.

Investing In Motion Pictures

39.

Financial Forecasts

40.

Spring 1987 Article: You Oughta Be In Pictures!1 by Alan Talansky

41.

Disclosure

42.

Project Financing Alternatives

43.

ANALYSIS

44.

May 27, 1987: The Production Budget

45.

May 29, 1987: Letter From Flatbush Films

46.

June 12, 1987: Letter From Flatbush Films

47.

May 29, 1987: Letter to Joel Goldhammer, Patent Attorney

48.

June 25, 1987: Patent Research From Joel Goldhammer

49.

Power Productions I Letter of Intent

50.

May 20, 1987 Richard Fox Attorney Invoice For Letter of Intent

51.

Gamillion Studios Brochure

52.

Screen International Article: Gamillion: mini-major in the heart of Hollywood

53.

Cover Page for Executive Summary

54.

Executive Summary

1. Updates for Executive Summary October 10, 2015


2. History of Federal Whistleblowing Case and Targeted Individual
3. The Courts and the United States Legal System
4. Family History
5. The Public Record
6. Is Lancaster County Ground Zero for U.S. Sponsored Mind Control
7. Affidavit of Joinment of October 10, 2015
8. 29 FALSE ARRESTS RECORD Since 1987
9. 21 ILLEGAL NO TRESPASS NOTICES
55.

Stan Caterbone's Notarized Affidavit for FFCHS September 16, 2010


Redacted Version

56.

Stan Caterbone's Detailed Victimization Affidavit of 2010

57.

Samuel P Caterbone US Sponsored Mind Control Affidavit 1996

58. Sammy A. Caterbone Affidavit of US Sponsored Mind Control 1991

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THE ADVANCED MEDIA GROUP

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06/12/2007

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Escaping the UNIX1 Tar Pit


Producing CD-ROMs in the UNIX Environment
Authored & Published in January of 1991
Stan J. Caterbone
Director of CD-ROM Technologies for American Helix Technology
Director of Advanced Media Group, Ltd.
1857 Colonial Village Lane
Lancaster, PA 17601.
Phone: (800) 525-6575
Fax: (717) 392-7897
John S. Garofolo
Computer Scientist
National Institute of Standards and Technology
Technology Building,
Room A-216
Gaithersburg, MD 20899
Phone: (301) 975-3193
Email: john@ssi.ncsl.nist.gov
UNIX is a trademark of American Telephone and Telegraph, Inc. (AT&T). 2Disclaimer: Certain trade names and company products are
mentioned in the text in order to adequately specify procedures and equipment used. In no case does such identification imply
recommendation or endorsement by the National Institute of Standards and Technology, nor does it imply that the products are
necessarily the best available for the purpose.

Just when things are going smoothly, and we begin to feel a little too comfortable and too
confident with CD-ROM technology, someone or something puts us in our place -- and
thankfully so. It's these challenges that facilitate our progress toward broadening the horizons
of CD-ROM technologies.
This article is intended to inform publishers and manufacturers of the problems that can be
encountered in using UNIX tar-formatted files as a medium of data submission for CD-ROM
production and some of the issues confronting the next generation of CD-ROM publishers.
Databases developed on non-DOS-based3 systems which have performance requirements that
exceed MS-DOS capabilities are becoming more commonplace. Ironically, the existing CD-ROM
production infrastructure has been created and supported primarily by DOS-based systems.
Although we are making progress in publishing data on other platforms, a large majority of
the CD-ROMs published today are still designed on DOS machines for use on DOS machines.
The current tendency to link CD-ROM with DOS is making difficult the implementation of CDROM technology on non-DOS systems and, therefore, slowing its widespread acceptance.
3DOS is a trademark of the International Business Machines Corporation (IBM) and MS-DOS is
a trademark of the Microsoft Corporation.
The ensuing paragraphs illustrate the need for the CD-ROM industry become more in tune with
the trends which are shaping information technologies. CD-ROM, which is one such
information technology, is beginning to recruit a new breed of both users and publishers,
which are hoping that CD-ROM will adapt to them, as opposed to them having to adapt to it.
The Automated Speech Recognition Group of the National Institute of Standards and
Technology
(NIST)
is
one
such
CD-ROM
publisher.
The NIST Automated Speech Recognition Group
Sponsored in part by the Defense Advanced Research Projects Agency Information Science

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and Technology Office (DARPA-ISTO), the group designs and implements methods of
performance evaluation for spoken language systems. These systems consist of natural
language understanding as well as speech recognition components. Additionally, it distributes
databases, or corpora, of speech recordings as standard reference material for the
development
and
evaluation
of
these
systems.
Traditionally, these speech corpora have been recorded and stored in a digital form rather than
in an analog audio format. This allows the data to be easily loaded, stored, and manipulated in
computers and prevents signal degradation in copies. The speech is digitized at a sampling
rate of between 10 and 20 kHz., as opposed to the 44.1 kHz. sampling rate used in CD-audio.
Digitizing speech at these sampling frequencies keeps intact the properties of the speech
signal that are important for automatic speech recognition while minimizing storage
requirements. These corpora typically consist of thousands of spoken phrases or sentences
which
are
stored
in
separate
files
for
ease
of
computer
manipulation.
In the mid 1980's, the NIST began an archival/lending library for public domain speech
corpora. The corpora were originally maintained and distributed on half-inch reel-to-reel digital
magnetic computer tapes. Initially, these corpora were small, but as recognition systems
became more sophisticated, their appetite for "training" data grew tremendously. By the end
of the decade these corpora were each occupying 50 or more 6250 bpi. half-inch magnetic
tapes and even larger databases were on the horizon. Managing these colossal databases of
speech had become a real problem. Simply storing, copying, and distributing the corpora had
become unwieldy. Furthermore, maintaining the integrity of the corpora was even more
difficult as tapes were frequently damaged in shipment or by rogue tape drives.
NIST and CD-ROM
By early 1988, the NIST Automated Speech Recognition Group had begun investigating optical
disk storage technologies as a means of replacing its tape archives. Initially, Write-Once ReadMany (WORM) technology was considered for use as a universal distribution medium but was
found to lack adequate standardization. Fortunately, in the Spring of 1988, the ISO-9660 file
format standard for CD-ROM was adopted and CD-ROM was chosen by NIST as a new
"experimental"
medium
for
distributing
speech
corpora.
NIST decided that the first corpus to be produced on CD-ROM would be the DARPA "TIMIT"
Acoustic-Phonetic Continuous Speech Corpus. Under DARPA sponsorship, TIMIT was jointly
designed, recorded, transcribed, and archived by Texas Instruments (TI) , the Massachusetts
Institute of Technology (MIT), SRI International, and the National Bureau of Standards (now
NIST). The TIMIT corpus was designed to provide speech data for the acquisition of
acousticphonetic knowledge and for the development and evaluation of automatic speech
recognition systems. The corpus contains recordings of 630 speakers from 8 major dialect
divisions of American English each speaking 10 phonetically-rich sentences. In addition to
standard orthographic (text) transcriptions, TIMIT contains unique time-aligned phonetic
transcriptions.
NIST felt that TIMIT's unique structure would be of great interest to speech researchers and,
therefore, would probably be ideal for widespread publication on CD-ROM. NIST decided to
publish two-thirds of the corpus on a "prototype" CD-ROM. Because of the ISO-9660
restrictions on filename length and format, the chosen two-thirds of the corpus to be placed
on CD-ROM was restructured from a flat directory structure with lengthy unique UNIX
filenames into a dense 5-level directory hierarchy, which reflected the design of the corpus and
conformed to ISO-9660. The resulting directory structure contained 4200 bottom-level
subdirectories -- one for each sentence-utterance, and 3 files per utterance for a total of
12,600 data files! This new organization required the use of the entire path and filename to
uniquely
identify
a
file
but
was
"visually
navigable."

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To date, more than 200 "TIMIT Prototype" discs have been distributed to universities and
speech research laboratories worldwide. The discs were well received by the speech research
community and have been read on PC's, Macintoshes4, various UNIX systems, NeXT5
machines and MicroVAXes6. The "experiment" had proved to be successful.
As of this writing, NIST has produced four releases of speech corpora on eight discs. Recently,
NIST completed production of its most ambitious speech disc so far. The new disc is a
complete revision of the TIMIT Prototype disc and contains the speech for the complete 630speaker corpus as well as all-new time aligned word-boundary transcriptions. The new TIMIT
CD-ROM contains 25,200 data files (4 files per utterance) as well as more extensive
documentation and software utilities.
After the production of the TIMIT prototype disc, NIST recognized the need to distribute
speech 4Macintosh is a trademark of Apple Computer, Inc. 5NeXT is a trademark of NeXT, Inc.
corpora in a consistent format. Unfortunately, no standard file format existed for storing and
exchanging speech signals. Compounding this problem, almost every speech research
laboratory around the world used different hardware and software configurations for speech
signal processing and analysis.
A UNIX-Based CD-ROM Preparation Workstation
In order to implement a full scale CD-ROM production effort, the Automated Speech
Recognition Group built a UNIX-based CD-ROM publishing workstation, which also doubles as a
general-purpose speech research system. CD-ROM images are prepared on a Sun
Microsystems server system with 32 megabytes of main memory, 3 gigabytes of high-speed
magnetic disc storage, a 9- track tape drive, an 8mm tape drive, and of course a CD-ROM
drive. The workstation contains two 1.2 gigabyte magnetic disc drives on which entire CDROM
images
can
be
assembled
and
simulated.
Each CD-ROM is now organized entirely in the UNIX environment. Many of the standard UNIX
utilities and capabilities have proven ideal tools for CD-ROM preparation. Tar files are now
submitted for CD-ROM replication on one 8mm tape, instead of 5 or 6 half-inch reel-to-reel
tapes.
UNIX-based CD-ROM premastering software is planned to be added in the near future to help
alleviate some of the complications NIST has experienced in submitting data for replication. By
performing ISO-9660 formatting in house, an ISO-9660 image can be submitted to the
replication facility. The ISO-9660 image can then be directly loaded into a mastering system
thus circumventing the problems which can occur downloading tar-formatted files.
NIST has developed strategies to maximize the portability of its CD-ROMs by organizing
speech data into a consistent format and providing utilities which can be linked into each
laboratory's unique hardware and software systems. To accomplish this, a flexible, objectoriented header structure was developed for the exchange of speech files, especially on CDROM. The header is an ASCII-based structure prepended to each speech file and allows an
utterance to be uniquely identified (even if the file is copied from CD-ROM and inadvertently
renamed) and describes basic attributes of the speech signal to aid in digital to analog
operations. A set of software utilities have been written, "Speech Header Resources"
(SPHERE), to provide a low-level interface for importing and manipulating these files. NIST
now
publishes
all
speech
data
in
this
more
consistent
format.
A Data Submission Problem
All of the key components for efficient CD-ROM production were in place at NIST, except for a
vehicle for data submission. When NIST initially delved into the world of CD-ROM production,

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it was dismayed to learn that most CD-ROM replication facilities accepted only standard ANSI
labeled or ISO-9660 imaged tapes as transfer media. The small Automated Speech
Recognition Group could not justify the expense of purchasing a special-purpose premastering
workstation dedicated to creating ISO-9660 tapes. Neither could NIST provide standard ANSIlabeled tapes because the simple structure of ANSI-formatted files would not preserve the
extensive directory structure required by the many files typically contained in speech corpora.
The UNIX tar Answer?
The tar-formatted tape is the standard medium of data exchange in the UNIX world and NIST
had been successfully distributing speech corpora on "tar tapes" for several years. The UNIX
tar (Tape Archive) utility was designed to create a portable archive format for UNIX files. The
tar program generates a single file (usually on magnetic tape) which contains all of the
information necessary for reconstituting directories, files, and UNIX-specific file parameters.
What distinguishes the tar utility from most other archive programs is that the archive format
it creates is portable across machines and operating systems. The key to the tar format's
portability is in its simplicity. Tar does not employ any elaborate compression algorithms when
generating an archive. It simply creates a byte-for-byte copy of each file to be archived with a
prepended header block. The header block contains the path and name of the file (or
directory), the file size, the time of last modification, and UNIX ownership and permission
flags. Because the information in the each header block as well as the file itself is byteencoded, the tar file can be read by any system which can recognize a stream of bytes. Of
course, binary executable files are system-specific and cannot usually be implemented on
differing systems. But text, source code, and binary data files can be easily exchanged.
To date, the tar program has been ported to many operating systems, including MS-DOS and
VMS8 as well as the many variants of UNIX. Because the tar format is portable and preserves
directory hierarchy, and because a tar file can be written to a standard ANSI-labeled tape or
any other storage medium, NIST concluded that tar formatted ANSI tapes would be the ideal
vehicle for providing a CD-ROM-ready file image to a replication plant. Unfortunately, NIST has
found that most replication plants either refuse to accept tar-formatted files or they charge
considerable "data conversion" fees to download the files into their premastering systems. To
say the least, the acceptance of tar as an input medium for CD-ROM production has been less
than universal by the CD-ROM replication industry. The replication facilities that have ventured
into the "tar pit" with NIST have frequently encountered technical delays and cost overruns. In
theory,
the
tar-tape
to
CD-ROM
process
should
be
simple.
But in reality, it has rarely been straightforward to implement. Pitfalls in Extracting a CD-ROM
Image from a UNIX tar File The challenges encountered in producing a CD-ROM from a 630megabyte tar tape, which contains over 25,000 files, can at first seem insurmountable.
Several problems have occurred during production, some of which are still not completely
resolved. Downloading and extracting a CD-ROM image from a tar file can be excruciatingly
slow, taking 15 or more machine hours of time for a single disc image. If a tar file is packed
with thousands of files, unforeseen complications can arise in the extraction process, and
diagnosing and troubleshooting all of the subsystems involved can become painful for even the
most experienced of engineers and technicians.
Extracting the file structure from a tar file for a CD-ROM such as the new TIMIT disc requires a
great deal of time and attention because of the extraordinary number of directories and files.
The subsystems involved in the tar extraction process require seamless integration. These
include the PC hardware platform and MS-DOS operating system, the premastering system,
the device drivers, controller cards, tape back-up systems, and the tar utility. Limitations
inherent in the MS-DOS operating system, device drivers, and file structures can result in
breakdowns in any one of these subsystems resulting in the loss of hours of man and machine
time in the production process.

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Eight-mm tape subsystems can be especially vulnerable when extracting exceedingly large
numbers of files. This is because 8mm tape drives are mechanically suited for streaming
operations. They are not as accommodating as 9-track tape drives in the quick stopping and
starting movements, which become necessary when extracting many thousands of small files.
Additional loss of efficiency occurs when 8mm drives must interface with a system, which has
become bogged-down with overloaded magnetic disk sub-systems. The only way to optimize
their operation is to load and buffer large blocks of raw data before it is tar-extracted. Subtle
problems may also arise when the controller cards of some 8mm tape systems are not entirely
compatible with the publishing system being used. These and other unforeseen problems can
cause a tape drive to abort operations well before completion of the extraction process. Worse
yet, because the tar format does not guarantee that directories and files are stored in any
particular order, an entire tar file must be scanned to extract any subset of files contained in
it. If the tar-extraction process aborts before the end of the tar file is reached, the entire
process must be restarted from the beginning to insure that all files are loaded. These
constraints require that special efforts be taken to prepare backup tapes and even second
backup tapes during production. This is one area of risk where the insurance is well worth the
effort, and is within one's control. Many of the other pitfalls are not as easy to anticipate or
avoid.
One of the more frustrating problems encountered while downloading the TIMIT tar file was
that of the overhead created while extracting the 18,900 small transcription files. To illustrate
this point, during the downloading of the 632-megabyte tar file, containing the 25,241 TIMIT
files, the process aborted on 650-, 850-, and 1200-megabyte partitions due to insufficient disc
space!
On UNIX systems, the size of file blocks (similar to the ISO-9660 and DOS sector structures)
can be modified. Although the ISO-9660 standard supports different sector sizes, the
individual operating systems used in the premastering process may present problems. For
example, MS-DOS 3.31 does not allow any modifications to sector size. Fortunately, MS-DOS
4.0 is more forgiving.
The TIMIT tar file contained 18,900 transcription files of under 2Kb each. A premastering
system running DOS 3.31 with a 16Kb sector size would require over 300 megabytes of disk
storage for these files, which actually amount to less than 32 megabytes of data. This results
in disk overhead of 1 order of magnitude! However, by switching to DOS 4.0, the sector size
can be reduced to as little as 512 bytes. This significantly reduces the overhead being used by
the DOS partition. It is therefore important to adjust the sector size to accommodate the size
of the database files to be downloaded. To maximize disk usage, the sector size should be set
high when premastering a database with a few large textual files. But when a database (such
as TIMIT) contains many small files, the sector size should be greatly reduced. Likewise, it is
also important to allow for this kind of overhead on the CD-ROM itself. Although CD-ROMs are
generally created with a 2Kb sector size, the sector size can be reduced on the ISO-9660
image in the premastering phase to as little as 512 bytes. By decreasing the sector size on the
TIMIT ISO-9660 image to 512 bytes, potential disc overhead was reduced by about 32
megabytes.
Finally, a hidden source of potential problems lies within the implementation of the utility used
to extract the tar file. There are currently a number of tar utilities that have been written and
are in use today. Many of these utilities are suboptimal in speed and efficiency. The time
required for downloading a tar file can become critical when extracting large numbers of files.
Therefore,
using
the
right
tar
implementation
is
a
must.
The Real "Tar Pit" -- Universal Operability
The real problem facing the CD-ROM industry concerning the production of non-DOS-based

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discs lies not in which utilities or platforms to use, but within the deeper abyss of universal
operability. Universal operability encompasses the common methodology of transferring,
publishing, and retrieving many different types of data across different platforms, while using
different hardware and software systems. Attempting to extract a tar file into a DOS-based
premastering system is a perfect example of why universal operability is the next technical
challenge for the CD-ROM industry at large. If this issue is continued to be ignored, entire
market segments will be left paralyzed because of the inability to publish information from
beginning to end without experiencing compatibility problems. This bleak scenario could result
in the CD-ROM industry losing the acceptance and respect it has worked hard to gain.
The Challenge Ahead
This article has illustrated some of the potential problems, which can result when using the
UNIX tar format as a data submission medium for CD-ROM replication. More importantly, it
has shown that a much greater variety of CD-ROM applications could blossom if the CD-ROM
industry embraces a diversification of CD-ROM platforms. The ISO-9660 standard has
provided a good basis for the exchange of CD-ROMs across different hardware and software
platforms. It is now time for the CD-ROM industry to address and overcome the many
obstacles faced by the challenge of universal operability. The increasing need for a standard
media- and platform-independent format for data submission is just one such obstacle. In the
short term, manufacturers of CD-ROM premastering workstations should publish specifications
indicating the limitations of their systems. This would allow publishers and replicators of
"atypical" CD-ROMs to avoid many of unforeseen pitfalls they must now face. In the long term,
these
premastering
systems
must
be
made
more
robust.
The next generation of CD-ROM publishers and users will help CD-ROM technology reach new
heights, but they will become far less forgiving as CD-ROM becomes more commonplace. For
NIST, the UNIX road to CD-ROM has certainly been "the road less traveled." Currently, the
development, production, and use of CD-ROM technology in UNIX and other environments is
still in its infancy. However, by increasing support for development and production in these
environments, CD-ROMs may someday be produced and used on a variety of platforms as
easily as they are on MS-DOS-based systems today. It is only in this way that the CD-ROM will
become the truly universal medium of data exchange that it was intended to be.
Acknowledgments
The authors wish to thank the following people which have helped them in their quest for
solutions to the problems this article has outlined: Joe Bradley and Clayton Summers at Philips
and Dupont 10Helgerson, L. W., "Universal Operability: The Technical Solution", Disc
Magazine, pp. 36-39, October 1990. Optical Co., Dennis Clark, formerly of Meridian Data, Inc.,
Leon Whidbee and Gisele Venczel at Disc Manufacturing, Inc., Lance Buder and Sylvester Pefek
at Optical Media International, and Tom Brown at Reflective Software.

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Case: 15-3400

Document: 003112117809

Page: 14

Date Filed: 11/02/2015

Page 11 of 221

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US District Court For The Eastern District of Pennsylvana

Property of Advance Media Group

Section 3189 Federal False Claim Act

Page 2591 of 2953

10/19/2006

US District Court For The Eastern District of Pennsylvana

Property of Advance Media Group

Section 3189 Federal False Claim Act

Page 2592 of 2953

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US District Court For The Eastern District of Pennsylvana

Property of Advance Media Group

Section 3189 Federal False Claim Act

Page 2593 of 2953

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US District Court For The Eastern District of Pennsylvana

Property of Advance Media Group

Section 3189 Federal False Claim Act

Page 2615 of 2953

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US District Court For The Eastern District of Pennsylvana

Property of Advance Media Group

Section 3189 Federal False Claim Act

Page 2616 of 2953

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US District Court For The Eastern District of Pennsylvana

Property of Advance Media Group

Section 3189 Federal False Claim Act

Page 2617 of 2953

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US District Court For The Eastern District of Pennsylvana

Property of Advance Media Group

Section 3189 Federal False Claim Act

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US District Court For The Eastern District of Pennsylvana

Property of Advance Media Group

Section 3189 Federal False Claim Act

Page 2619 of 2953

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Property of Advance Media Group

Section 3189 Federal False Claim Act

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Property of Advance Media Group

Section 3189 Federal False Claim Act

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Property of Advance Media Group

Section 3189 Federal False Claim Act

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Property of Advance Media Group

Section 3189 Federal False Claim Act

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Property of Advance Media Group

Section 3189 Federal False Claim Act

Page 2605 of 2953

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Property of Advance Media Group

Section 3189 Federal False Claim Act

Page 2598 of 2953

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Property of Advance Media Group

Section 3189 Federal False Claim Act

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US District Court For The Eastern District of Pennsylvana

Property of Advance Media Group

Section 3189 Federal False Claim Act

Page 2588 of 2953

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US District Court For The Eastern District of Pennsylvana

Property of Advance Media Group

Section 3189 Federal False Claim Act

Page 2589 of 2953

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US District Court For The Eastern District of Pennsylvana

Property of Advance Media Group

Section 3189 Federal False Claim Act

Page 2590 of 2953

10/19/2006

US District Court For The Eastern District of Pennsylvana

Case: 15-3400

Document: 003112117809

Page: 15

Section 3189 Federal False Claim Act

Date Filed: 11/02/2015

Page 12 of 221

socpe of Pmject

m k e t i r g and Distrikution

Financial Prcposdl

amtracts

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Property of Advance Media Group

Page 2252 of 2953

10/19/2006

US District Court For The Eastern District of Pennsylvana

Case: 15-3400

Document: 003112117809

Section 3189 Federal False Claim Act

Page: 16

Date Filed: 11/02/2015

Page 13 of 221

'Ibny m i m i

is about to undertake one of the

and F t x e r Station

~roiectsin the entertairmrent irdusby that the Business World

mast

has wer seen.

Ihe fascirratbq elements of

A).

Wical Overtcn=s

B).

~ 1 o g y

.
D).
C)

this project are as follows:

m k e t b g ard D i s t r i h k i c n
Limited DJrJrside Risk B t e n t j d

W h a ycxl prt

have a vezy s t r a g and paJerN entity.


' of the largest ard mDst visible

in any business v

all of the abwe elaoents tog-

Naw, prt the abwe elements in o m

htertairmrent

W i e s available ---the

-.

We want to pcsitim Scmy as the primier ~a~


EsuipPent
Vi&o

of P r o f e s s i d

in both the RemrdIndustryardalsotheTbeatricaland

B3ushy as s e l l as Television arrd Pay T.V..

In additicm and even uore

inportant we waiid like to credit Scny w i t h omtrihtiq in the develcpnent of

the Scny-

Digital

Ren,rdiq System that w i l l recoFprized

World by way of several different medium e q c s u s .

the

lhis will have

effeds in the bay of jmreasd sales in both the C l x m m e r m level as well

as the Professianl E n v i s m e n t .

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Property of Advance Media Group

Page 2253 of 2953

10/19/2006

US District Court For The Eastern District of Pennsylvana

Case: 15-3400

Document: 003112117809

Section 3189 Federal False Claim Act

Page: 17

Date Filed: 11/02/2015

Page 14 of 221

In the f o l l d q paragraFhs I w i l l address the abzwe elements an3 pmve

to-rt

thepcrtential for this project.

wa,s developed to help Wmy

'Ihe m v i e

in

Marts

the

hdustry to captxre ather k d w b y ' s that are

- theatrical, televisicn an3 cable, video,

aanplimentary

rmsic

mi6 take his mtive ard &us

el&cs

aocanplishents in both -logy

Wmy's. track reond ard

of

Because
~

an3 nusical prducticn

aE

Dmy has used the s a nusical


~
format for their f i r s t a l k m as he used

hasI
sold nine millicn alhms thus far
for Bn Jwi, *&

- Bon Jovi!

of his latest band French

film already will have appeal t h r u q h the fed-

Lick.

intennticenl film ard

ever

n, dllxrm has

sold nvre alhms in its f i r s t six ucmths in the history of the recon3iq
I

kbstry.

Because of

saxe

rmsical

the timirg of the a l h x m - w b i d l w i l l

the two sbaild anl w i l l ccnpliment ane another vezy

'Ib further the mrktzbility of the picture he w r a p d

profitably!

horror script

'Ib add

the

okritiffil"

Minfluencing the audiences.

the f i r s t wvie ever w i t h a

finther to the project, Tcny w i l l

digital sand txack fran set to theatre arrl video.


mst

this into a

- w i d e s t mrketability due to intennticanl d k k i h t i c n - an3

that will plwerrt

an

aaninate the

anyme else 190% of

This tectylology a l e wmld

the total budget just for the s a d prrducticn.

rmis is W h e n t h e p j e c t g e t s i n t e r e S t i n g a s f a r a s ~ a n d d i s t r ~ c n

isculzemd.

Because of

the exclusivity of

the te&nicdl

arr3 the

el-

'

the
,

in even the nost


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mrventianl
deals.
xarkthg

ad

Property of Advance Media Group

r l i s t r ~ a nsbaild be pxerful
Page 2254 of 2953

acne

10/19/2006

US District Court For The Eastern District of Pennsylvana

Case: 15-3400

Document: 003112117809

Page: 18

Section 3189 Federal False Claim Act

Date Filed: 11/02/2015

Page 15 of 221

lmxEmxz AND

DlsTmmrION

Ncw lets take this project and look at it with 5-:

to biu e1eQmt.s:

a ) . Video
b)

T h e vi-

utren

yrxl

D i g i t a l r6mrd.k~ard playiq

inaustry is a 56 billion dollar

'

' ,'

y that

is in need of product.

lmk a t the patentidl for a prcduct that w i l l be the first a d a d

prduct that will canpliment the fast paced


w i t h a rmsical

-re

~~Fsltertainmet

that m y have emmgh d t s of its am-ym

have an

arnazirg p b m t i a l for d i s t r M m ! !

- )

D i g i t a l an3 D i s c Irduslq has p

mrdi.rq ard playing in due time.

m to be the fuhrre standard for


Because of its newness, there are nore

m l e wfao have yet to hear the digital sm-d. Because of the visibility and

exposure that will cane fron this project-this

a u l d be the first time ever

pecple hear digital by way of theatre ard video! As to hckJ mmy pecple? 1

- 10

- 50 - 100 millian?
well, what w i l l be their first reactim? J NEED 'ID HTY A DISC PIAYER!

lheir
VIDEX),

reaction w i l l be I ~ T O H E A R ~ S a U N D I N M y N D L T ? V ~ ,

MXrIE,

a-.

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Property of Advance Media Group

Page 2255 of 2953

10/19/2006

US District Court For The Eastern District of Pennsylvana

Case: 15-3400

Document: 003112117809

Page: 19

Section 3189 Federal False Claim Act

Date Filed: 11/02/2015

Page 16 of 221

W
e a

d likesmytocarnait fifteenmillion f o r t h r e e t o fcur future products

that will follm t h e s a n r e f o m t a s t h e ~ ~ ~ s o t h a t ' l t m y ~


sCply

w i l l p i t i o n tharselves as the picmeer ard leaders in the

-.

lhis

will mt allcu onpsitim t o gain assets to the marketplaoe until ue are a l l

fkmly situated ard profitable.

We w i l l also assist in any way possible in the

of the theatrical

an3 video distriialtim.

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Property of Advance Media Group

Page 2256 of 2953

10/19/2006

US District Court For The Eastern District of Pennsylvana

Case: 15-3400

Document: 003112117809

Page: 20

Section 3189 Federal False Claim Act

Date Filed: 11/02/2015

Page 17 of 221

a 60 scxrd spot in the beginning of the video, ve will do


.Smy

d its r m t r W c m s to the Digital lY&stry and the differa-ce be-

a m v e n t i d and digital recordirq.

I.

The

spot will be a ~xzme-my w i t h nusic fmn Rpncfi Lick inthe

&
-

'Ihe Carmentary w i l l d i s c l l s s t h e S c i y / F S l 3 5 S a M D S Y ~ a n d t h e

cur pint the

pmrzss by uhid-l the FURE SaMD IS develcpaa. To


"Differern= '&st"

will be used.

'Ihe

mnreie

M?NCP1 will be pmnoted as

the~FeatmeFilmtousethisSystem.

11.

WEW#I

We w i l l
Sciy

a mxdmxlking canpign us-

rarket a N1 line of

the v i c b , (similar to Wp (amet),

KMGSlNTCN

w.

will offer a l m k d g e t h t profitable disc player to a l l

the video.

?he offer w i l l

be a t wholesale pri-.

of

Ihe reason for

the 1m

tudget prduct is that rn hcpe when pezple actually get to the store they w i l l
upsrade an3 tuy a t full retail!

Far Scny it w i l l a-tically


tedYlical aazmplkhmmts

inskute that Scny is -ible

fran the view of the audiervz

for TcPry's

- drich lby will

m t b e ~ w i t h . I t w i l l a l S o p m m o t e a l l ~ f S c n y ' ~ ~

-P
-

We w i l l alsn develcp a -60" scxrd spat to be used on telwision to p

p t i m project for both

Saty ard Tcmy

m the

Eaqiovi.

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Property of Advance Media Group

Page 2257 of 2953

10/19/2006

US District Court For The Eastern District of Pennsylvana

Case: 15-3400

Document: 003112117809

Section 3189 Federal False Claim Act

Page: 21

Date Filed: 11/02/2015

Page 18 of 221

m. we

will also include s a y EquipnerrtinthePSlMSSystemsthatwillbe

n e w to convert the Theatres to the New Sand System.


T%atres

We w i l l amvert the

Free if the lheatre d t s to d-wdrq the next'MReElXNGIOVI

SSXKTIW.

This will give us a guaranteed ccPhirrued sqasure ard w i l l give

us guaranteed distritution for both

Say

Software an3 m j w i as.

We

will recwer the true casts of ecNA~7t


fran distrihtion profits frcrm the

films.

N.

We w i l l prochvm a 60 seaad stard alone cnmexial for television, cable

arrl theatre that will be used to pramte the project before the release of

mtant Mania.

--

eg\; A 60 seaad spot utilizing the follubq elements


1

a.

Frencfi \lick

b.

Rmx Station r e o o facility


~

c.

Sony8s r m t r i t u t m s to the mmufacturer of the equip=& to prcduce

thescum3.

A spat

'Ihismay sim~"~thedifferenoe**.

R-errfi Lick recording in Rxer Staticn for the -Mania

h e .

W e warld like to

to yu.~the Say/psa--give

"Now sit back ard let UE J a w i f

ycll

hpxt cn w h t it is.

he&- the difference."

p
t warld you rather listed to when 1-

to feature film: video, cable

or television.

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Property of Advance Media Group

Page 2258 of 2953

10/19/2006

US District Court For The Eastern District of Pennsylvana

Case: 15-3400

Document: 003112117809

Page: 22

Section 3189 Federal False Claim Act

Date Filed: 11/02/2015

Page 19 of 221

ImFaLWJISING DEAL

Scmy will private label a "Tay E!mqiwinor

Statim line of e&prent:

a ) . Wevisim
b).

-S

ccnpahlent

c). Disc Player


d)

ViaeD Player

'Ihe above package w i l l include a free video

rebate f u l l price back to

--

of Mutarrt Wwda of whi&

Say

will

distritution.

' ' l b y arrl Stan will m i v e credits for complete line:

'lbtd will

be negotiated aftex we have an idea of Smy margins.

We want

touakeucmeyonlyif Sonymakesnmq!

W e w i l l also provide a m a r k e m package for a l l retail artlets that i


s naw

-m.

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Property of Advance Media Group

Page 2259 of 2953

10/19/2006

US District Court For The Eastern District of Pennsylvana

Case: 15-3400

Document: 003112117809

Page: 23

Section 3189 Federal False Claim Act

Date Filed: 11/02/2015

Page 20 of 221

Tcny w i l l ~ 1 u d e i n c q T i g h t A g r e e m D J l t t h a t ~ E q u i p n e n t r m s t : b e u s e d t o b e
EnE.

Scny will

xwxive nQeditswon all video, theatrical, telwisicn, and

cable ~ ~ / s C SystemT
n y

l i n y ard Stan will also ~ v e ~ t s c n a l l s y s t a n s u s i n g ~


sold to other film stw3ic6

- Also to be e

d after w
i
n
s are figured.

the x e s a q quiprmt in all shdios. We w i l l pmvide a one day seminar to

thirty cp2J7ators of the largest theatre

-.

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Property of Advance Media Group

Page 2260 of 2953

10/19/2006

US District Court For The Eastern District of Pennsylvana

Case: 15-3400

Document: 003112117809

Section 3189 Federal False Claim Act

Page: 24

Date Filed: 11/02/2015

Page 21 of 221

I.

S C g l y w i l l c n l y p a y f o r a p n s e s t ~ p ~ 6 O s e m n d s p a t s%myand
.
Rwet Station will utilize any anl all s e m i s

to help pxduce the spat

am3willallwreimbursaaentforcmlytruecostswithn>mkeup
e
.
x
l
wa l l of Tony's time ~&

11.

w i l l be free.

Rwet Staticn ard Rwet Productims I will receive a negotiated

w-

age of pzpfits fran all profits gwerated from the m x d m d i z i n g

e~

of the Scllypmdcck ard the sale thatmay result to other film st&ios
UtilizhqScllyequipoerRintheINSSystem.

m.
-\

W e will receive three sets of a full entertainment system

- Telwisicm,

VCR, Stereo, Etc. that is tcp of the line to help during the pm3ucticn
of the film to be utilized by Marcia, Stan and Scott.

IV.

Scsly

will have first right ard first refusal of all ard any d i s t r W o n

wets for theatrical, video, cable, and telwision qnticaticms.

We

willprcmiSenottOeventalkto~else~uefeelthatScnyis

not gokg to offer a fair and reasamble deal. W e w i l l give Scny a 5%

margin to gain a cmpetitive edge.

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Property of Advance Media Group

Page 2261 of 2953

10/19/2006

US District Court For The Eastern District of Pennsylvana

Case: 15-3400

Document: 003112117809

Page: 25

Section 3189 Federal False Claim Act

Date Filed: 11/02/2015

Page 22 of 221

='=F=F'==
m

Thy

of the abave and all aspects of this Dedl is to let the

entities involved maximize their profits for their m

in film an3 nusic prakcticsl d

Scmy

distrihutim of both equiprent a d

e talents;

in mnufacturirq and wentxally


and later video and film

m m m .

Wid side mrkethg available after this pi*

thruqh chamrld anl =ia.

S a y w i l l b e o n m x d t s of the filmmrldwide BUS?

Rwer Staticm Digital to be shared with BIXS?

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Property of Advance Media Group

Page 2262 of 2953

10/19/2006

US District Court For The Eastern District of Pennsylvana

Case: 15-3400

Document: 003112117809

Section 3189 Federal False Claim Act

Page: 26

Date Filed: 11/02/2015

Page 23 of 221

JOINT VEKPURE PAKTICIPATICN

AM)

C~RIBVTICN

The undersigned, intending to be l e g a l l y b o d , i n consideration o f h i s


&ssicn

as a p a r t i c i p a n t in the j o i n t v e n t u r e t o be known a s "POWER PRO-

DUCTIONS I" md r e c e i p t o f a p r o f i t / l o s s d i s t r i b u t i o n share o f

% of

such j o i n t venture, hereby d e c l a r e s ard ackmwledges h i s i n t e n t to p a r t i c i p a t e


i n such j o i n t venture and hereby m e n a n t s and agrees to contribute the sun of

t~ t h e c a p i t a l of such j o i n t venture, which sum s h a l l c o n s t i t u t e

h i s i n i t i d c a p i t a l account i n s w h j o i n t venture.

T h i s L e t t e r o f I n t e n t i s e n t e r e d i n t o by t h e undersigned u p n t h e
/

following general d e r s t a n d i n g :

Power P r o d u c t i o n s I w i l l b e a j o i n t v e n t u r e t o be
formed under t h e laws o f Pennsylvania, having t h e
s p e c i f i c p u r p s e to invest ( l o a n ) its funds to MUPANIA
PRODUCTIONS,

INC.

to

finance

p r o d u c t i o n o f a motion p i c t u r e .

such c o r p o r a t i o n ' s
The j o i n t v e n t u r e

s h a l l receive f u l l repayment o f i t s investment from


MVPRNIA PROWCTIONS, I N C .

b e f o r e the d i s t r i b u t i o n o f

any p f i t s to any party. Thereafter, t h e j o i n t venture


s h a l l r e c e i v e 50% o f t h e p r o f i t s from such motion
p i c t u r e , o f which 85% s h a l l be d i s t r i b u t e d to t h e

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Property of Advance Media Group

Page 2263 of 2953

10/19/2006

US District Court For The Eastern District of Pennsylvana

Case: 15-3400

Document: 003112117809

Section 3189 Federal False Claim Act

Page: 27

Date Filed: 11/02/2015

Page 24 of 221

non-managing j o i n t v e n t u r e r s ( i n c l u 6 i i - q t h e unders i g n e d ) and 15% s h a l l b e d i s t r i b u t e d to S t a n l e y J.


C a t e r b o n e a s t h e Ranaging J o i n t V e n t u r e r o f Power
P r o d u c t i o n s I. The j o i n t v e n t u r e s h a l l have a r i g h t o f

first r e f u s a l to finance t h e next movie p r o d u c t i o n o f


MUl'ANIA PROWCTICNS , TNC. and/or 'XNY EXNGIOVI

The Lndersigned a g r e e s t h a t he w i l l execute an3 d e l i v e r a counterc o u n t e r p a r t o f t h e j o i n t v e n t u r e agreement (which s h a l l be c o n s i s t e n t with t h e


a b o v e g e n e r a l u n d e r s t a n d i n g ) and t h a t h e w i l l execute and del'iver all docw n t s required f o r t h e j o i n t venture to elect n o t to bF! t a x e d a s a p a r t n e r ship.
Contemporaneous w i t h the execution o f t h i s L e t t e r o f I n t e n t , t h e undersigned is c o n t r i b u t i n g 10% o f h i s t o t a l agreed c o n t r i b u t i o n , or $

'-)
-

W i t h i n f i f t e e n (15) dzys f r a n t h e d a t e hereof, time being o f t h e essence, t h e


-

undersigned s h a l l c o n t r i b u t e t h e 90% balance, or $

Such c o n t r i -

b u t i o n s h a l l be h e l d by S t a n l e y J. Caterbone a t i n t e r e s t , pending a m p l e t i o n
o f all n e g o t i a t i o n s ard execution ard d e l i v e r y of
PRoUlmIOLJS,

2ii

documents w i t h MUTASIA

m.

I f s u c h n e g o t i a t i o n s , d e l i v e r y , and execution &e not m p l e t e d within

t h i r t y (30) days a f t e r the f u l l c o n t r i b u t i o n is m d e , the e n t i r e c o n t r i b u t i o n ,


with all i n t e r e s t earned thereon, s h a l l be returned to t h e undersigned without

den&.

S t a n l e y J. Caterbone s h a l l be r e s p n s i b l e f o r c o l l e c t i o n , r e c e i p t ,

i n t e r i m i n v e s t m e n t and management, and ultimate investment or r e t u r n o f a l l

f d s c o n t r i b u t e d , and s h a l l be t h e Managing J o i n t V e n t u r e r o f t h e j o i n t
venture.

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The u n d e r s i g n e d h e r e b y a u t h o r i z e s and e n p k e r s S t a n l e y J. Caterbone to


n e g o t i a t e , e x e c u t e , and d e l i v e r a l l documents n e c e s s a r y or r e q u i r e d t o
implement t h e j o i n t v e n t u r e plr~oseand to take all o t h e r a c t i o n s and n q o t i a t e , e x e c u t e and d e l i v e r a l l o t h e r documents n e c e s s a r y or d e s i r a b l e t o
implement or e f f e c t u a t e the j o i n t v e n t u r e p r p s e .

SIGN
(L.S.) Date: W y

tWE:

-,1987

PRINP
NAME:

STREET

F.

ADDRESS:

STATE:

CITY:

ZIP:

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RICHARDC. FOX,PC.
ATTORNEYS AT LAW

1015 ROBERTS VALLEY ROAD

HARRISBURG,PENNSYWANIA inlo
RICHARD c

mx*

('ADMllTED ALSO M R W

May 20, 1987

M r . S t a n l e y J . Caterbone
FMG Advisory, I n c .
Eden Park 11, 1755 Oregon P i k e
Lancaster, PA
17601

For P r o f e s s i o n a l S e r v i c e s rendered i n c o n n e c t i o n w i t h
Power Productions I , i n c l u d i n g c o n f e r e n c e , p r e p a r a t i o n o f
Letter o f I n t e n t , and e x p r e s s m a i l i n g , .and follow-up t e l e p h o n e
check.

Professional Fee
UJP.S.

250 .OO
8.95

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FLATBUSH
FIlMS,INC,
May 21, 1987

Mr. Stan Caterbone


Financial Management Group
1755 Oregon Pike
Lancaster, Pa. 17601
Dear Stan:
At your request I've investigated the requirements of the Completion Bond.
Bert Schneiderman of Worldwide Completion Services in New York
has given me a figure of 5$%, excluding contingencies, with a
50% No Claims Bonus. Since Bert also owns BonBon Payroll Service
he has agreed to waive the payroll fee if we use their bonding
service.
Requirements: They need copies of the budget and/or production
board, resumes for the director and producers as well as copies
of their contracts and any other production agreements which
have been completed.
Further they need to know when we will commence principal photography, editing location and if we intend to have a distribution
deal up front.

I spoke to Jerry Vandersonde and Bill Hudson of DeWitt Stern Insurance in Los Angeles, who were recommended by Worldwide. Since
I couldn't show him a budget or a script we did some educated
guessing and came up with a figure of approximately $75,000. The
Production Package policy should include: General liability, cast
insurance, negative film, faulty stock and camera processlng,
props, sets, wardrobe, rented equipment, extra expenses, third
party property damage, non-owned auto, Errors and Ommissions
including a one year bond and a minimum workmen's comp policy
for anything that is not covered by workmen's comp.

I understand you're going to Wildwood this weekend. We need to


house a crew of about 60-80, production offices, catering service.
We'd like to get as many free extras as possible and need high
quality promo type giveaways. For screen credit, of course. If
you have any such contact we'll need mutant dolls (500?) and if
you can help bring down location costs that would be great. I'm
talking about beaches, amusements, the pier, parking facilities.
Probablv k 7 ~ ' l . jh?r,-?:e t h ? t '- '.-; r e:.:t w e e k m e n w e czn talk in ..
- 1

person.
4334 STERN AVE.. S H E R M A N
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FLATBUSF LMS,NC,
Page 28 of 221

May 2 3 , 1987

E l l e n Libman
Power S t a t i o n , I n c .
4 4 1 West 5 3 r d S t r e e t
New York, N.Y. 1 0 0 1 9

Ms.

Dear E l l e n :
B a r b a r a a n d I h a v e mapped o u t a s k e l e t o n s c h e d u l e f o r o u r t r i p
t o N e w York a n d I t h o u g h t I ' d s e n d i t o f f a n d see i f i t w o r k s
f o r e v e r y o n e e l s e . By t h e way, w e ' v e d e c i d e d t o s t a y i n N e w
York u n t i l T u e s d a y i n s t e a d o f Monday as o r i g i n a l l y p l a n n e d .
Thursday

A r r i v e a b o u t 3:OOPM. You h a v e t h e e x a c t t i m e
s i n c e y o u ' v e booked o u r f l i g h t s .
Please let
u s know i f someone w i l l p i c k u s u p o r i f w e
should take a t a x i .
W e ' l l come t o Power S t a t i o n a n d g i v e you a n d
Tony c o p i e s o f t h e s c r i p t a n d b u d g e t w h i c h w e ' d
l i k e you t o r e a d Thursday n i g h t . .

B a r b a r a a n d I h a v e a d i n n e r m e e t i n g w i t h a Director of Photography.
Friday

Leave f o r New J e r s e y i n t h e morning. D i s c u s s


s c r i p t and budget.
Meet Mayor o f Wildwood and b r i n g him a s y n o p s i s
o f s c r i p t which h e h a s r e q u e s t e d .
M e e t w i t h Steve Garelick, t h e P r o d u c t i o n Coordin b t o r o f t h e N e w J e r s e y F i l m Commission.
Look a t l o c a t i o n s .

Saturday
Sunday

S t a n C a t e r b o n e a r r i v e s i n New J e r s e y .
M e e t the
r e p from Maury's P i e r t o d i s c u s s l o c a t i o n costs.
Check o u t h o t e l s f o r c r e w a n d c a s t ,

Monday

L a s t m i n u t e d e t a i l s i n New J e r s e y .
L e a v e f o r Mew York a r o u n d noon.
M e e t i n g s a t Power S t a t i o n f o r f i n a l d i s c u s s i o n s
a b o u t s c r i p t , budget, c o n t r a c t s , etc.

Tuesday

Tuesday A f t e r n o o n

L e a v e N e w York a p p r o x i m a t e l y 4FY t o a r r i v e
i . c r ?..nc;i.i r , . ? b o u t $FbI.

.
.
C,lk
<~ i n planning your schedules.
- -.7
7

4334 STERN AVE.. SHERfd4IL OAKS. - P i


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c c : Media
S t Group
an Caterbone
Rarhara

PO+-T<

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Management Group, LTD


Oregon Pike

Lancarter. PA 17601

717-569-5555

Table O f Contents

)
.

Section I

Financial MaMgement

Section I1

The Project

Section 111

Distribution and Structure

Grc~lp

Section IV

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Bart>ara Peters: D i r e c b r / W r i t e r / P r m h c e r

Barbara has directed many prograros such as "Matt Hcuston"! "Falcnn


an3 Iacey', , "Misfits", "-erst',
and l'Remulgton
Steele" to name a few. The film Barbara direct63 that convince3 Tony t o
hire her for this production was "Hummids Frau The Deepw. Mrmanoids w a s
made in 1978 for $ 980,000 ($ 20,000 under w
e
t and f a r days ahead of
schedule) and gmssed over $28 million in danestic and foreign theatrical
Sales. T h i s was
a period in time when the video market was in its
early stages of ~~~~t. A film released today that would gross $ 28
million i n 1978 dollars has wen greater putential for a much highex gross
w i t h the strong video market that is available now. What i n p m Tony
the most with E?a&aa1s
direction of IEsMnoids was her a b i l i t y to bring a
high degree of quality to a film on SG& a limited hdget.
Crest1', " C a q n q

6urw

Peter H o c k : Stunt Coordinator/Actor/Wmtmn


Peter's &ts
include f i l m such as, - 1
Places", "Stepford
Wives", "To K i l l A Cop", " G h c s t Bustersw, "FX", and a host of other Films,
Broadway, Musicals and Television Shows.
?here are many factors which mnixibute to a projects success. If you
w e r e t o take a cross section of themovie industzy to find w h i c h types of
projects w e r e most likely t o succeed, you waild find that w i e s in the
two to four million dollar range have rmch greatex chances of success than
wies in the ten to fifteen million dollar range. T h e reasons for this
are quite simple. A movie in the two to four million dollar range is a
hi@ enough budget t o produce a quality film but limiting the r i s k t o the
investor since it needs less of the market share to prcduce a profit.

Horrvr nwvies, from the investors point of view are the safest type of
m i e to finance. Horror movies have an dLmost cultist follwing. m e
type of audience t h a t attend homr 'movies rarely wait to see what the
critics have to say ahcut the movie. There is a fascination with gore
that this audiens would rather see than have described to them. The
overseas mket for movies of this genre are ~
0
~ In salmost
. all
cases the grass revenues frcan the theatre, w i l l be greater werseas than
in the d-ic
(US and CaMda) market. mis especially holds true for
horror wies.

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Over the l a s t few years, we have h e n seeing a trend for wwies t o have a
much heavier nusic score than in the past. The feelings that can be
invoked in an audience from audio are sanetimes as great o r greater than
the visual aspeds of a film. W i t h Bongiwils m i e n c e and past track
record, w e are assured of having one of the best quality sound tracks to a
mmie ever made. 'Ihis prcduction d d very well revolutionize the mavie
hhstq in t h a t this w i l l be the f i r s t time t h a t the sound track w i l l be
totally digitized from the set to the theatre o r home video. W h a t this
means is that the quality of the sound, w h i c h is typically extremely poor
i n a movie theatre o r hoane video cassette, w i l l n a be
~ trewrd~~~ly
crisp. 'Ihis new mavie sound w i l l be similar to the quality you would
expect fmm a laser disc. Nolmdlly the costs involved to prcduce a movie
w i t h this type of sound track would greatly increase the budget to a point
where the project wnuld have an increased element of risk. W i t h Rmer
Station, w h i & already has in place state of the art equipat, sane of
which can be f
a i n only one o r two other studios i n the world, this
sound track can be prcduoed for a fraction of the oosts that another
prcduction wmpany a
d have to pay. This greatly reduces the r i s k to
the investor to be able to pmduce state of the art audio a t a fraction of
the costs.

It is a very naturdL progression for a recording studio such as Fuder


Station t o evolve into an entertainment ccsnplex vhich includes the
production of films. Ewder Station currently has financing in place f o r a
$ 3.5 million video mix studio to be built next t o the recording studio.
Distrjlxltion ccwpanies are constantly looking for new scures of prcduct
to market. W i t h Bongiari's track record in the entertainment industry,
any product that carries the Bongiwi label should create a bic?dq
situation w i t h the distributors.
Advanced p b l i c relations work is cun-ently being done to set the stage
for negotiations w i t h the distribution companies. "BilIlxxmlt1, lVarietyll,
and "Box Office" have a
w
l
agreed to do articles on Bongiovi and the
mie. On April 30, ABC w i l l be airing a radio talk s h w w i t h Bongiovi
that w i l l air on 2300 stations to a total listening awiience of uver six
million people. "Fame, Fortune, and Romnce" have also agreed t o give

network 'N average.

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The home video m k e t has rapidly been charging the ptential mnrie
profits for the industry. A Nighbare On Elm Street was made f o r w e l l
under two million dollars and has earned New Line Cinana more than $24
million a t the domestic box office. In addition, after a short video
release, this pnxtuction has sold wer 3 million cassettes. In the past
videos w e r e sold only to video rental stores for approximately $70
apiece. Recently the price has been lawered to expand the market to the
but they my
general public. The video rentdl stores won't disa-,
beccone more like record stores that also rent their albums. A l l of this
translates into nmre p r o f i t potential f o r prducer and investor.
It is an extremely rare opportunity t o be able to get i n on the ground
floor in an offshoot of an already w e l l established e n t e x t a h t
campany. Any investor willing t o back this project w i l l have f i r s t right
of refusal on any future projects. The prcentages w i l l remain the same
for a t least the f i r s t two projects.

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Mependently praiuced motion pictures are a better investment tcday

than ever before.

1) Irmeased FBrkets: T h e r e is much wider distribution of motion


p i d a r e s today than ever before (i.e. Pay TV, Cable TV,
videmassettes, satellite transmissions, etc. )
I P r e s a l e 1 contracts which bind the buyers (i-e. networks, pay W ,
foreign distributors, etc. ) to specific payments a t a future date,
this insuring return of capital and, in same cases, a profit before
the film is released.

2.

Inv-t

)
.

Structure:

Ihe producer and investor form a limited partnership for the purposes
of pmducing one o r more motion pictures. The investor receives 100%
of the net profits u n t i l reaqmmt, after which the s p l i t is 50-50.
Profit participation of others (actors, director, writer, etc.) oomes

out of the pmducerls end.

Ihe producer secures the services of a director, principal actors,

and a writex.
Presale Deals:

me producer can negotiate presdle (preproduction) arrangements w i t h


distrilmto~~
networks,
,
pay TV, merchandisers, etc. Whereas such
a?=rarqements can minimize the d-ide
risk, they can also mit
the eventual profitability of the film.
Risk Fadors:
It is very d i f f i c u l t t o d e t a m b e exactly how much of a r i s k one runs

in financing a theatrical film. Adequate statistics are hpssible


to find. S h a n ~ Sexvices
t
of b s Angeles a four-year-old study w h i c h
revealed that 60% of a l l films released make money. This study,
hwever, did not include long range TV syndication (foreign and
domestic) revenues, and w a s made before Pay TV and video cassettes
lxmnks significant additional markets. chmical Bank of New York
reports that they have never l o s t money on film financing.

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Another risk is the possibility that no distributor will want to


release the picture. That is why some independent producers include
a provision for distribution financing in their investment
agreemnts. If worse comes to worst, producers can distribute the
film themselves. (Notable exanples are "Billy Jack" and "Benjil*.)

There may be prcduction catastrophes that will delay or cancel


production once it is under way. m-oduwill carry various forms
of insurance (including completion bonds) to at least repay whatever
funds have already been spent.

If a distribution arrangement has not already been made, the producer


now secllres such an arrarqement. If the picture is good, it is
possible to negotiate a much better deal than could have been done
earlier. On the other hand, the prducer owld have trouble securing
the kind of distribution cormnitment wanted. The main factors here
are haw rmch money the distributor is willing to ccmunit to selling
the picture, haw much influence the producer can have on the
marketing e g n , and the distribution fee. Sametimes small
distributo~sare able to give more time and attention to independent
pictures atid offer better terms, but the producer may have to provide
some digt-xihtion expmses.
Cut of gross damestic box office receipts, the exhibitor (retailer)
usually subtxacts his fixed costs and then receives 10%. Out of the
remining 90% gross film rentals received by the distributor
(wholesaler), he usually recoups all or part of his asts plus a
distribution fee of 20-35%' then passes the reston to the
producer/investor. Terms of distribution deals vary wnsiderably.

Box office d p t s , hawever, only account for a part of the


prcduoer/investorls revenues. As the enclosed figures &ow, the
ancillary markets are at least as significant as the domestic theatre
box offie. TV syndication, for instance, can continue to bring in
revenues for the next twenty years.
Demand for met:

W y ' s supply comes nmhere near to matching real demand. At the


present time, there are over 18,000 theatres in the United States.
It can readily be seen that roughly 400 films prcd1.1~4
and rated last
year did nut begin to meet their needs. 'Iheatres are campelled to
shm any type of film they can obtain to keep their doors open.

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To date, independent producers are respnsible for 72% of all films


made world-wide. The domestic figure is 62%. me inaependent
producer has three primary options regarding distribution. These

include the sale of the film cutright to a major national


distributor, their merchandising of the film by the production
mmpany i t s e l f , or the use of smaller regional mb-dktr&utors who
may p m t e the film i n their respective geqrapkicdl areas.
Distribution of films often relies on a l l three methods to one degree
or another.
Another market, television, can consume nearly every film that has
been, or is p-tly
being p r o d u d . If each of the three mtmrks
would show only one film per night, they wald need wex 1,000 films
per year. In Lns Angeles area alone, there are nearly 10,000 films
aired each year in a combination of local and network viewing time.
Many films are sham time and time again because there are no llew
films to replace them.

1
. .

. .

Today, virtually every film of quality has residual value in


television, either by outright sale o r by term licensing. me l a t t e r
is preferable since it allows the production company t o retain
ownership of the negative. me time lag between theatre release and
TV sale has dimhished fram seven years to an average of 18 mths.
However, sane major features such as "The Wizl' have heen sold to TV
before ccwpleting a f u l l year in theatrical release. me trend seems
to be taward purchase of 'fresh' films, and the outlets a p p a r
willing to pay the higher costs involved
Because of the great demand and the outrageously c a p e t i t i v e attitude
that penades the networks, handsome deals are being consunnnated
before the production has been ampleted and then, by preamangenent
with the producers, hold the film until it has -let&
its
theatrical run.

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APPENDIX

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Breakeven for Limited Fartners:


Based on grass revenues of $ 11,200,000 collected fmm 1st and 2nd
t h e a t r i d runs

1st run t i c k e t costs of $ 6.00


2nd run ticket costs of $ 5.00

$ 300.00 G r c s s per show

$ 300.00 per show X 1000 houses

$ 300,000 Gross

$ 300,000 X 14 days

= $ 4,200,000 Gross

50 people per show

x $

6.00

2nd Run
50 people

per show X $ 5.00

$ 250.00 per shm X 2000


$ 500,000 X 14 days

= $25O.OOGrosspershow

hauses

$ 500,000 Gross

$ 7,000,000 Gross

Total 1st Ibvl

Total 2nd Ibvl


Total

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Forcast A

Total Box

office Gms

$ 11,200,000

15%F~~ me.,-

1,680,000

g 520 000

2,856,000

6,664,000

Less : jy,"em Capital

4,000,000

~~t
profit

2,664,000

1,332,000

1,332,000

199,800

mtion pic-

-fit-

30% ~ i ~ i - ~
F~~
k t i ~ ~

prodUcers

split

50%

Investment Ccrmpany R e t u r n
: General partners S p l i t

-------

15% -----

These are onlv umiections and are f o r informational pwmses only. Any
investment made. based solely on these u r o i e d i o n s would be unadvisable as
actual uerfonnane could vary cyreatly.

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Forecast B
Forecast B is based on a total box office gross of $ 28 million
A film that prcduces a theatrical gross of $ 28 million can be expected to
gross at least that much from TV, Cable and video markets. Depnding on h m
distribution a-ts
are negotiated we can expect 50% to be net profits.

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Date Filed: 11/02/2015

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Forecast B

M~15% F~~ meatres

--

Motion Picture Profits

$ 23,800,000
$

Less 30% Distribution Fee

4,200,000

7,140,000

$ 16,660,000

T.V., Cable and Video Net

-------

$ 14,000,000

Less : Investors Capital

F?xducers Split @ 50%

$ 10,670,000

Investment Companies' IWxm

$ 10,670,000

Less : General Partners split @ 15%


Investors Return

4,000,000

1,600,500

9,069,500

These are onlv proiections and are for i n f o m t i o ~ lm x c e s onlv. An


investment made. based solelv on these ~roiectionswould be unadvisable as
actual cerformanoe could vary qreatlv.

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Page 42 of 221

You Oughta Be In
Pictures!
I by Alan Talansky 1

here's explosive growth occurring in the motion picture industry, and growth should always he
music to any investor's cars. -Hut
movies!" you wy? It's time to put
aside your images of Tinseltown and
'Heavm's G:~te,"and to take another
look at an industry with some new,
sound invest~ilentpotmtial.
There's risk in any investment, of
course, rvc-n in real estate - the investment area on which many firms
originally built their reputation and
success. In real estate, it's a matter of
how carefully you assess a variety of
influential factors and how you struclure the deal. Motion pictures are
much the s;arne. You've got to look
for potenti:~l.

fashioned profit: an ideal solution for


post tax-reform era.
The key here is undersranding how
much the industry has changed. The
tyranny and fickleness of box-office
receipts is no longer. More people
around the world are viewing more
films than ever before. but not necessarily in the theatres. Consider, for
example, that there are only about 300
feature films made every year, of
which about half could be considered
"major." Now, compare that with the
number of movies a cable outlet, like
Home Box Office,
shows in a single
duy. Eight? Then.
take a look at the
shelve?;o f your locxl
3

ucts to & financed, and [he second


the structuring of the deal.
in wlecting the pn)duct, success
u s ~ J [ l y found in tilinking small, ~h
larger [he budget in a film, the great,
[he risk,
[he $50 ,,,illion antic
pdted blockbusters and seek out. ir
stead, the more modest undenJkint
of smaller, ambitious film produc
tion sources. A,,
example i
Island Pictures, a
small, in
dependent film production and di>
tribution conlpany for which, la,

-,

N d guile a btochburrcr: lslund3 - N o M . y ' s Fool.' slurrim>


h'osunnu Arqurtlr und Eric Robens. wrr u more modrmrc succerr
e ~ will1
m Pulil2er Prtm winning phyw(yhr 5elh Henley uniting. Phok

muriesy lsland Pichrres.

video rental store, year, a $7.4 million equity placement


a n d the crowds was arrsngrd. lsland Pictures is an rflooking them over, ficient operation - unlike some of
and you begin to the more notorious larger Hollywood
understand the di- studios - and it knows how to
mensions of growth.
recognize quality.
Of course, just as not every piece of
Litrle known lsland Pictures capreal estate is a great investment, every tured a great deal of anention in 1985
movie isn't bound to turn a profit. with two extraordinary films - "Kiss
But, there are two factors that h ~ v e of the Spider Woman" and "Trip to
proven ro be the critical difference in Bountiful." It was the first time in hiscreating a sound investment vehicle. tory that one production house could
The first is the selection of the prod- claim credit for both the Best Actor

Success o m a shoesrrlmg: ~mducer/dix~clor


spike Lru fcmrler) turned

a puttry i l 7 5 , O ~ W p ~ u c r i obtrdwt
n
for "She% C<,tla HUM R - i~ilou
$7 millio~rgrr*u.irr#suqriY hi,. Co-slursjulrn Can',nb T&l
(lejll utrd
~sd,,ro,td Hicks f"gkr)
~ r t . ~ I Ww.1.Photo courtesy Forty ~ c r s s

and a Mule Filmwohs.

When the motion picture industry


was first examined as an investment
vehicle a few years ago, the expeclation was that there was potential for
tax deferment. Wh;lt was found, however, was a surprisingly rich source of
income for investors from good, old-

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SPRING 1987

US District Court For The Eastern District of Pennsylvana

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Page: 46

Section 3189 Federal False Claim Act

Date Filed: 11/02/2015

Page 43 of 221

l h e i n f o m t i o n s e t f o r t h herein w a s obtained from sources which w e


believe reliable, but w e do not guarantee its accuracy. Neither the
information nor any opinion expressd constitutes a s o l i c i t a t i o n by us of
the pwchase o r sale of any securities o r cmmtxlities. 'Ibis package is
f o r informational puzposes only, to gain an indication of interest in this
project. Financial Mamgement Group Ltd. does not endorsed and has not
been contracted by mer Station to p-te
this projed. Any questions
regarding i n f o m t i o n contained herein should be W e d t o Stanley J.
Caterbne o r Scott Rokertson.

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Date Filed: 11/02/2015

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May 29, 1987


Ms. Ellen Libman

Pcwer Station, Inc.


441 West 53rd S e e e t
N e d York, N.Y. 10019
Gear Ellen:

L e t ' s try it again. This time w e are scheduled t o leave IDSAngeles


on Thursdzy, Jdii 4 & i ret3 Ias Arzjdes cz TJ&-,
Z&w 9. 3.e
follaJing is a rough s c h d l e .

m & Y

Arrive atout 3:OOR.I. Please l e t us laww the exact


f l i g h t information as w n as possible so we can
arrarrge *rt
transportation here. Let us Iuxw
if sureone w i l l pick us up in New York o r i f we
M
d arrange tr-rtation
to F a e r Station.
Also let: me -1
what btel we w i l l be hoked a t
in New Y a k so we can leave t h a t information here.
W e ' l l corne to Power Station for any discussion
regarding the s c r i p t &/or budget.
Barbara and I have a dinner meeting with a Director
of Photqraphy.

Ieave for Ned Jersey in the mrning. M e e t w i t h


Steve Gorelick, the hrcduction Coordinator of the
New Jersey Film Carmission. Look a t locations.

in New Jersey. Meet the rep


fmm Maury's Pier to discuss location costs.
Check out btels for crew ard cast.
last m i n u t e d e t a i l s in New Jersey.
Leave for New York a n x d m n .

3-Y
Y-

S t a n Caterkon-e arrives

Meetas a t P a e r Station for findl discussions


about s c ~ i p t ,budget, oatracts, etc.
Additional ueetins in r r p r n i q if necessary.
Ieave New York a p ~ o x i m t e l y4PM to arrive Los
Angeles a b u t 9R.I.
\

Please let me kmm if ycu have an:! additions or changes. I ' l l probably
talk to @u a9a!,n c-;.!,>.TY%:J.

.. <&"., .

c:t_::

Barbara Peters

%7=ds,

Arlene

4334 STERN Am..SHERMAN OAKS.CA 91423


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995-3417

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Page: 49

Section 3189 Federal False Claim Act

Date Filed: 11/02/2015

FlATBUSH
FILMS,NC,
Page 46 of 221

May 29, 1987

Mr. Stan Caterbone


554 Berkley Avenue
Stone Harbor, N.J.
Dear Stan:
I'm enclosing a first draft of the screenplay, complete with
typos and a couple of other errors. (For instance, Kennie
Queens is also Kenny Peterson.)
This
well
very
talk

should give you sufficient time to study the script as


as the budget, which I'm also enclosing. It would be
helpful if you could have notes prepared which we can
about when Barbara and I are in New Jersey next week.

&
rlene

,avidson

4334 STERN Am..SHERMAN OAKS. CA 91423

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1818) 995-3417

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June 1 2 . 1 9 8 7

Mr. Stan Caterbne

Financial Manag-t
Group
1755 Oregon Pike
lancaster Pa. 17601
Dear Stan:
As you requested here's a schedule for hroject 441 (mrking t i t l e ) :

PRE-Pmmm
Ju~le28-July 11, 1987
July 12-Sept 5, 1987

POST-P~m
Novanber 1-January 30,1988

New York
New Jersey

2-

New Jersey

8 5 day weeks

8weeks

New York

In order to s t i l l get the film made this season we've got to speed everythkq
up. W e originally planned four weeks of pre-production in New York kt t h a t ' s
ID longer possible. I f we start J w 28 we've got only ten weeks to get the
mtant effects going and then w e ' l l have to schedule mutant scenes later in
the film i f t h y aren't ready.
This schedule also takes us to October 31 for the enl of the shoot, which means
we've got to schedule exteriors f i r s t , leaving the interiors f o r later in the
went of bad weather.
S i x e we're on such a tight M u l e I can't r e d l y hreak

down the

costs for

you because it w i l l a l l start ha-

so quickly, We'll inmdiately have a


NaJ York office, per d i m , hotel an3 contracted fees for Barbara and myself.
W e ' l l hire a casting director, p d w t i o n manager, production coordinata~a d
location manager, get the mutant effects started and begin hiring key personnel.
If p check the m e t p ' l l see the a c M m m h r of weeks of aployment
for crew. mere w i l l be legal fees for preparing mntracts. During those +XJ
weeks ~ ' 1 twpefully
1
do rmst of the castiq.

4334 STERN AVE., SHERMAN OAKS.CA 91423


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(818) 995-3417

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Date Filed: 11/02/2015

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w i n g the eight weeks of pre-producLLion in N w Jersey w e ' l l be mrkixg


w i t h the art director, c o s m e designer, s e t decvrator, building s e t s ,
tying d m locations, e t c .
A week before shooring the f u l l crw w i l l be prepping.

a r r i v e ~ a tabout t h a t tire ard


e n t i r e shootinq period.

hill

The editor w i l l

be working on a rough cut during the

A t the close of p d u c t i o n Barbara, the editor and I w i l l m e back to


New York f o r a three mnth editirq period a t the end of w h i c h we w i l l

deliver the finished film, incllxlinq distributor's requirements ard t h e


MPAA ratinq.

As you can see this w i l l be very tricky but I s t i l l think we can do it


i f Barbara an3 I are in New York no l a t e r than June 28.
Hope this helps.

Regards,

cc: Tony Bongiovi


Barbara P e t e r s

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TIME
S Y S T E M S
MONTH

,-d u g

YEAR

1487

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PLAN

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Date Filed: 11/02/2015

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TtME %PEN1

arm
WET-

SPIURU-

l V P l RlWC-

RmP

ULNW
RnSCII

rWLI

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ACTIVITIES
FORPage: 54
Page 51 of 221

Case: 15-3400

Section 3189 Federal False Claim Act

Date Filed: 11/02/2015


Thur Fri sat
T ~ m eEsriActual

TS4101

185

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h 8 ADqebSr

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OF THE ORIGINAI.STATEMENTOL1 FILE I N M Y OFFICE.
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210 South & r w S t r r t . 0 110. Yo16

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~et$ih',
.. Federal False Claim Act
Section 3189
.

r r T-R
Court
.*klUS
I- District
Lnr.
,0, For The Eastern District of Pennsylvana
. .
Case:
15-3400 l loon1
Document:
003112117809
Page:
Your riot nam. and l n a t ~ a(if
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Page 53 of 221

I . . . . '

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Date Filed: 11/02/2015

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Page 2377 of 2953

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Case: 15-3400

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Page: 57

Section 3189 Federal False Claim Act

Date Filed: 11/02/2015

Page 54 of 221

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Page 2378 of 2953

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Case: 15-3400

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BROUT&

Page: 58

Section 3189 Federal False Claim Act

Date Filed: 11/02/2015

Page 55 of 221

COMPANY

CERTICIED PUBLIC A C C O U N T A N T S
v E r 10'1

. LOS A N G Z L E S

W O R m l S V O l N . N d.

1900 A V E N U E O F T H E S T A R S

LOF. A N G E L E S .
213

Dear

7-i 3

CAL~FORN~A
90087
553-1941

'

E n c l o s e d i s ttie o r i g i n a l and o n e c o p y o f t h e County o f L o s A n g e l e s B u s i n e s s


S t a t e m e n t a s o f Marcti 1. 1982.
The o r i g i n a l s h o u l d b e s i g n e d b y you a n d p o s t m a r k e d o n or b e f o r e A p r i l 30. 1982.
Mail to:
County o f Los A n g e l e s
Office of t h e Assessor

dPFF.) 4

@A

9 /YO(

The d u p l i c a t e c o p y i s f o r y o u r f i l e .
Very t r u l y y o u r s ,

BROUT h COMPANY

Enclosures

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Case: 15-3400

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Page: 59

Section 3189 Federal False Claim Act

Date Filed: 11/02/2015

Page 56 of 221

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Page 2381 of 2953

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Case: 15-3400

Document: 003112117809
JOSEPH F.

Page:P.C.
60
RODA.

Section 3189 Federal False Claim Act

Date Filed: 11/02/2015

Page 57 of 221

ATTORNEYS AT LAW
301 C4PHER BUILDING

36 E A S T I(INC. STREET
LANCASTER. PENNSYLVANIA 1 7 6 0 2
TELEPHONE 17171 3 9 7 - 3 7 9 1

JOSEPH F R O D *
PAUL 5.R O M A N O

July 22, 1987

Mr. Stanley J. Caterbone


554 Berkley Road
Stone Harbor, NJ 08247
Dear Stan:
Enclosed is our statement for services and costs for
July 1, 1987 through July 7, 1987, and an itemization of the
services and costs involved.

Joseph F. Roda

JFR: dlb
Enc.

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Section 3189 Federal False Claim Act

Page: 61

Date Filed: 11/02/2015

Page 58 of 221

JOSEPH F. RODA. P.C.


301 C I P H E R BUILDING. 36 E. KING S T R E E T
L A N C A S T E R . P E N N S Y L V A N I A 17602

J u l y 22, 1987

CATERBONE

ITEMIZED PROFESSIONAL SERVICES


Date
7/1/87

Attorney
JFR

JFR
JFR

Description

H ours
-

C o n f e r e n c e s w i t h S. C a t e r b o n e ;
telephone c a l l f r o m J .
Jamouneau, E s q . ; l e t t e r t o
R. K a u f m a n .

3.1

Telephone c a l l s t o and f r o m S .
C a t e r b o n e and f r o m R . K a u f f m a n .

-4

L e t t e r f r o m R. K a u f f m a n .

.1

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Date Filed: 11/02/2015

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JOSEPH
F. RODA. P.C.
3 0 1 C I P H E R B U I L O I N G 36 E K l N G STREET

LANCASTER PENNSYLVANIA 1 7 6 0 2

I
CATERBONE

July 22, 1987

FOR PROFESSIONAL SERVICES RENDERED:


~ i the
r
period July 1, 1987
through July 7, 1987:
COSTS ADVANCED:
Copying costs
Long distance telephone

$74.48
1.00

TOTAL COSTS ADVANCED:


TOTAL PROFESSIONAL SERVICES AND
COSTS ADVANCED:

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Case: 15-3400

Document: 003112117809
Page: P.C.
63
JOSEPH F. RODA.
Page A60
of 221
TTORNEYS

Section 3189 Federal False Claim Act

Date Filed: 11/02/2015

AT L A W

301 ClPHER BUILOINC.

36 E A S T K I N G STREET
LANCASTER. P E N N S Y L V A N I A 17602
TELEPHONE (7171 3 9 7 - 3 7 9 1

.JOSEPH F R O D A
PAUL

5 ROMANO

September 2 ,

1987

M r . S t a n l e y J . Caterbone
5 5 4 B e r k l e y Road
S t o n e H a r b o r , N J 08247

Dear S t a n :
Our r e c o r d s show a p a s t due amount o f $525.48 o n your
a c c o u n t , as r e f l e c t e d on o u r s t a t e m e n t o f J u l y 22, 1 9 8 7 , a
copy o f which i s e n c l o s e d f o r your c o n v e n i e n c e . A s you w i l l
r e c a l l , t h i s i n c l u d e d copying c h a r g e s which w e advanced on
your b e h a l f .
Your immediate a t t e n t i o n i n b r i n g i n g t h i s a c c o u n t
c u r r e n t would be a p p r e c i a t e d .
I know t h a t you w i l l t a k e
c a r e o f t h i s , and t h i s n o t e i s s e n t s i m p l y by way o f a
reminder.
I saw Tom t h e o t h e r n i g h t and had a n i c e c o n v e r s a t i o n
w i t h him.
C a t h o l i c High s h o u l d h a v e h i r e d him.

With k i n d e s t r e g a r d s ,

Sincerely,
A

w
&
G
z
k
ose h F. Roda

JFR:dlb
Enc .

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-----I-

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Case: 15-3400

,--

-I-

,-AMY(

".YLIU*I

c-.

llD

Document: 003112117809

Page: 64

Section 3189 Federal False Claim Act

Date Filed: 11/02/2015

Page 61 of
221
Financial Management
Group,
LTD
Eden Park 11, 1755 Oregon Plke Uncastcr, PA 17601
7 1 7 - 5 6 9 4 1 0 0 800-521-8567 800-322-1128 [PA only)

.NLEY J. CATERBONE

EXECUTIVE VICE PRESIDENT

Capello & Foley


831 State Street
Santa Barbara, CA
Attn: Diane Carrbell

Dear Diane:

As per our previovs conversation,

emlozed i s the brief awry of my

care! I want to t b n k the law f i r m of Capello & Foley'for a l l of t h e i r help!

Regretfully,

Emlollre
:

Barry Capello

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WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
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S=rurHler Offered threuph PI.+er's
Se~u1ItIe1Group. Inc.

Property of Advance Media Group

Page 2490Mlmber
of 2953 SlPC
A R=plitertd BrokerlDealir

h3.rnb.r

NASD

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Case: 15-3400

Document: 003112117809

Page: 65

Section 3189 Federal False Claim Act

Date Filed: 11/02/2015

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LAW O F F I C E S

SEIDEL, GONDA,GOLDHAMMER& ABBOTT,P. C.


PATENT A N D T R A D E M A R K A T T O R N E Y S
S U I T E 1800 T W O P E N N C E N T E R

PLAZA

P H I L A D E L P H I A , PA. 1 9 1 0 2
A R T H U R H. S E I D E L

TELEPHONE:(215) 5 6 8 ~ 8 3 8 3

3 O E L S. GOLDHAMMER
M I C H A E L P . ABBOTT

p~

2 5 J u n e 1987

p~

GROUP

D A N I E L A . MONACO
ROBERT H. HAMMER lil

I. I , b I 8 4

E D W A R D C. G O N D A
I 1 9 3 0 I S e 5 i

DURLiNG

S T E P H E N J. M E I E R S
AMANDA L A U R A N Y E *
NANCY A

845~218

CABLE. SIPAT

TELkCOP$ER 1 2 1 5 1 5 6 8 ~ 5 5 4 9

G R E G O R Y J. LAVORGNA

THOMAS J

TELEX

OF C O U N S E L
SYLVIA A . G o s r T o r r v l
S T A N L E Y H. Z E I H E R

RUeNER

SCOTT J FIELDS

N r . S t a n l e y Caterbone
FMG A d v i s o r y , I n c .
Eden P a r k I 1

1 7 5 5 Oregon Avenue
L a n c a s t e r , PA 1 7 6 0 1
RE:

Power S t a t i o n
Our F i l e :
7351-G

Dear S t a n :
I h a v e now r e c e i v e d t h e r e s u l t s o f a s e a r c h
p e r t a i n i n g t o t h e above s u b j a c t .
I have a l s o r e v i e w e d t h e f i l e
f o r w a r d e d w i t h y o u r l e t t e r o f May 2 9 .
The f o l l o w i n g i s my
a n a l y s i s and e v a l u a t i o n of t h e r i g h t t o u s e "Power S t a t i o n " a s
d e f i n e d below.
A s I understand the s i t u a t i o n , your b u s i n e s s c l i e n t ,
Power S t a t i o n S t u d i o , h a s , s i n c e 1 9 7 7 , o p e r a t e d a r e c o r d i n g
s t u d i o with a widely regarded r e p u t a t i o n f o r providing high
q u a l i t y r e c o r d i n g s e r v i c e s u s i n g s t a t e of t h e a r t e q u i p m e n t .
The
e n c l o s e d r e p o r t r e v e a l s t h a t Power S t a t i o n s t u d i o h a s r e g i s t e r e d
t h e t r a d e m a r k "Power S t a t i o n " f o r s o u n d r e c o r d i n g s t u d i o s .
(See
Reg. No. 1 , 4 3 3 , 3 2 8 r e g i s t e r e d March 1 7 , 1 9 8 7 . )
You h a v e a s k e d me
t o i n v e s t i g a t e t h e p o s s i b i l i t y o f Power S t a t i o n e x p a n d i n g t h e u s e
o f i t s mark i n t o m e n ' s and women's c l o t h i n g i n c l u d i n g b e a c h w e a r ;
a n d f o r a u d i o a n d vide(:, e l e c t r o n i c s f o r c o n s u m e r s a n d
professionals.
I h a v e assumed t h a t t h i s l a t t e r c a t e g o r y i n c l u d e s
radios, television receivers, video c a s s e t t e r e c o r d e r s , a u d i o
r e c o r d e r s , compact d i s c players, turn t a b l e s , amplifiers,
r e c e i v e r s , t u n e r s , c o n t r o l p a n e l s , mixing b o a r d s and c o n s o l e s ,
among o t h e r t h i n g s .

Based upon t h e r e s u l t s of t h e e n c l o s e d s e a r c h , i t i s
my o p i n i o n t h a t i t would be i n a d v i s a b l e f o r Power S t a t i o n , I n c .
t o u s e i t s mark f o r c l o t h i n g a s a f o r e s a i d .
The b a s i s f o r my

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Mr.

Section 3189 Federal False Claim Act

Document: 003112117809 Page: 66


Date Filed: 11/02/2015
SEIDEL, GONDA,Page
GOLDHAMMER
& ABBOTT;F! C .
63 of 221

S t a n l e y Caterbone

-2-

25 J u n e 1 9 8 7

o p i n i o n i s R e g i s t r a t i o n No. 1 , 4 3 1 , 2 4 2 r e g i s t e r e d :.larch 3 , 1 9 8 7
Eor "Power S t a t i o n " .
The r e g i s t r a n t c l a i m s a f i r s t d a t e o f u s e
o f A p r i l 3 , 1986 f o r w o m e n ' s c l o t h i n g i n c l u d i n g s w i m w e a r a n d
o t h e r goods a s l i s t e d .
A l t h o u g h y o u r c l i e n t h a s a s t r o n g r e p u t a t i o n , and
a l t h o u g h i t h a s p r i o r i t y o f u s e f o r t h e mark, t h i s r e g i s t r a n t h a s
a s t r o n g p o s i t i o n f o r arguing t h a t it has superior r i g h t s f o r
women's c l o t h i n g .
One would n o t o r d i n a r i l y a s s o c i a t e c l o t h i n g i n
a n y way w i t h r e c o r d i n g s t u d i o s e r v i c e s .
Thus, your c l i e n t ' s
r i g h t s i n i t s mark d o n o t a p p e a r t o d o m i n a t e t h o s e o f t h e
registrant's.
A c c o r d i n g l y , u s e of t h e Power S t a t i o n mark f o r
women's ( o r m e n ' s ) c l o t h i n g would i n v o l v e a s i g n i f i c a n t r i s k o f
b e i n g a c c u s e d of t r a d e m a r k i n f r i n g e m e n t .
Use o f t h e Power S t a t i o n m a r k f o r c o n s u m e r a n d
p r o f e s s i o n a l a u d i o and v i s u a l e l e c t r o n i c e q u i p m e n t r a i s e s some
i s s u e s , b u t o n t h e w h o l e I am o f t h e o p i n i o n t h a t i t i s
permissible.
A g a i n , I a s s u m e , a s I have b e e n i n f o r m e d , t h a t t h e
Power S t a t i o n s t u d i o i s w e l l k n o w n a n d d o e s h a v e a g o o d
reput-ation f o r its e x i s t i n g s e r v i c e s .
Given t h a t , i t s movement
i n t o e l e c t r o n i c e q u i p m e n t s h o u l d be p e r m i s s i b l e .
Here t h e good
w i l l a s s o c i a t e d w i t h i t s c u r r e n t s e r v i c e s c a n be more r e a d i l y
extended t o audio v i s u a l e l e c t r o n i c equipment.
T h e s e a r c h r e v e a l s t h a t M a n v i l l e C o r p o r a t i o n ' s Ken
C a r y l Ranch i s t h e owner o f t h e mark "Power S t a t i o n " f o r b a t t e r y
o p e r a t e d emergency e l e c t r i c a l 2ower s u p p l y u n i t s .
S e e Reg. No.
1 , 0 4 0 , 3 0 8 r e g i s t e r e d May 2 5 , 1976 and c l a i m i n g a f i r s t d a t e o f
u s e of November 2 3 , 1970.
I n my o p i n i o n , a u d i o v i s u a l e l e c t r o n i c
e q u i p m e n t c a n b e c o n s i d e r e d t o be s u f f i c i e n t l y u n r e l a t e d t o
emergency e l e c t r i c a l power s u p p l y u n i t s t o a v o i d a l i k e l i h o o d of
c o n f u s i o n even though t h e marks a r e i d e n t i c a l .
I r e a c h t h e same c o n c l u s i o n r e g a r d i n g t h e pending
a p p l i c a t i o n by E l e c t r i c a l C o n d u c t o r s , I n c . f o r a m u l t i p l e o u t l e t
power s t r i p .

A c l o s e r q u e s t i o n is r a i s e d by G o u l d ' s S u p p l e m e n t a l
R e g i s t e r r e g i s t r a t i o n f o r Power S t a t i o n f o r m i n i a n d
microcomputers.
G o u l d ' s mark is r e g i s t e r e d on t h e S u p p l e m e n t a l
R e g i s t e r u n d o u b t e d l y b e c a u s e "Power S t a t i o n " a s a p p l i e d t o
computer equipment is considered t o be d e s c r i p t i v e .
A
Supplemental R e g i s t e r r e g i s t r a t i o n h a s none of t h e p r o c e d u r a l
b e n e f i t s of a P r i n c i p l e R e g i s t e r r e g i s t r a t i o n .
Moreover, i f
G o u l d ' s u s e o f t h e mark i s l i m i t e d t o a p a r t i c u l a r m a r k e t w h i c h

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f,lr. S t a n l e y C a t e r b o n e

-3-

25 J u n e 1987

is d i s t i n c t from your c l i e n t s , t h e r e d o e s n o t a p p e a r t o b e a
l i k e l i h o o d of confusion.
T h u s , G o u l d may b e s e l l i n g i t s
c o m p u t e r s i n t o a s p e c i a l i z e d c o m m e r c i a l m a r k e t i f i t is p r e s e n t l y
s e l l i n g computers a t a l l .
Next I c a l l y o u r a t t e n t i o n t o t h e f a c t t h a t s e v e r a l
r a d i o s t a t i o n s have a d o p t e d a n d a r e u s i n g t h e t r a d e m a r k "The
Power S t a t i o n " i n v a r i o u s c i t i e s throughout t h e Unlted S t a t e s .
Conceivably, these radio s t a t i o n s could o b j e c t t o t h e
i n t r o d u c t i o n o f consumer e l e c t r o n i c s i n t o t h e i r market a r e a on
t h e g r o u n d t h a t t h e u s e o f t h e same mark i m p l i e s s p o n s o r s h i p b y
them.
I n o t e t h a t a l l o f t h e s e m a r k s were r e c e n t l y r e g i s t e r e d ,
and I s u s p e c t t h a t a l l of t h e s e r a d i o s t a t i o n s a r e r e l a t e d o r
c o m m o n l y owned.
I a l s o s u s p e c t t h a t t h e a d o p t i o n o f t h i s mark
may b e o f r e c e n t v i n t a g e .
Thus, your c l i e n t i n any n e g o t i a t i o n
w i t h t h e s e p e o p l e would have t h e a d v a n t a g e of b e i n g a p r i o r u s e r ,
and t h e r e l a t i o n s h i p between r e c o r d i n g s e r v i c e s a n d e l e c t r o n i c
e q u i p m e n t on t h e o n e hand and r a d i o s t a t i o n s e r v i c e s and
e l e c t r o n i c equipment on t h e o t h e r hand i s a t l e a s t c o - e q u a l .
Thus, your c l i e n t should have t h e dominant p o s i t i a n .
I n v i e w o f t h e f o r e g o i n g , i t i s my o p i n i o n t h a t The
Power S t a t i o n s h o u l d n o t a d o p t o r u s e " P o w e r S t a t i o n " f o r m e n ' s
a n d w o m e n ' s c l o t h i n g , b u t i t may a d o p t a n d u s e t h e m a r k f o r
p r o f e s s i o n a l and consumer e l e c t r o n i c s a s d e s c r i b e d above w i t h t h e
u n d e r s t a n d i n g t h a t t h e m a t t e r is n o t e n t i r e l y w i t h o u t d o u b t a n d
issues could arise.
I t i s , h o w e v e r , my o p i n i o n , b a s e d u p o n t h e
f a c t s p r e s e n t l y a v a i l a b l e t o me, t h a t The Power S t a t i o n , I n c .
should prevail i f those issues arise.
I f you have any q u e s t i o n s concerning t h e f o r e g o i n g ,
p l e a s e f e e l f r e e t o c a l l me.
With k i n d e s t p e r s o n a l r e g a r d s ,
Sincerely yours,

,'.

SEIDEL, GONDA, GOLDHAMMER


& ABBOTT, P.C.

JSG:mp
Encl.

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Case: 15-3400

Document: 003112117809

Page: 68

Section 3189 Federal False Claim Act

Date Filed: 11/02/2015

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Case: 15-3400

Document: 003112117809

Page: 69

Section 3189 Federal False Claim Act

Date Filed: 11/02/2015

Page 66 of 221

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SC'IDCO PRODUCTS GO.-4Contmued)


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Property of Advance Media Group

Page 2250 of 2953

10/19/2006

Case: 15-3400

Document: 003112117809

Page: 71

Date Filed: 11/02/2015

Page 68 of 221

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Case: 15-3400

Document: 003112117809

Page: 72

Date Filed: 11/02/2015

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Case: 15-3400

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Advanced Media Group And Escomp


Search Engine WIP Agreement Drafted In 1990

Google History:
http://www.google.com/corporate/history.html

OVERVIEW - The purpose of our meeting (Wayne, Stan, Skip) was to "establish an equitable,
productive and profitable relationship" between AMG and Escomp (Search and Retrieval Software).
The goals and objectives of this relationship will be as follows:
1. To provide data and information retrieval software projects that are contracted by AMG and
technologies developed by ESSCOMP
2. To provide data and information preparation for supporting the information technology
industries
3. To provide other software products and utilities into an authoring system for the CD-ROM
industry
4. To develop a library of utilities that can evolve that will utilize the services of ESSCOMP for the
AMG
5. To market and contract CD-ROM development projects production and retrieval of the
information as specified for the projects technologies and products that are developed by
6. To develop market and industry recognition for the ESSCOMP products produced by
ESSCOMP
7. To create new markets for the technologies and "through the use of the AMERICAN HELIX
technologies,"
8. To provide additional credibility for ESSCOMP "facility, corporate identity, and the association
with" "High Industries, Inc the information technology industry through the AMG & ESSCOMP
9. To position ourselves as a technological leader in following: superior products and services;
dedication and commitment in the delivery of products and "services; highest regards for
quality assurance, and "customer service; a realization that performance is the only measure
for success for the information technology industry".
10. To develop new technologies, products and services" "society through our products and
serives, with specific"
11. To make a contribution toward the betterment of our regards for educational institutions.

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FMG/

Advisory, Inc .

FINANCIAL MANAGEMENT GROUP, LTD.


Eden Park II, 1755 Oregon Pike Lancaster, PA 17601

717-569-4100

STANLEY J. CATERBONE
PRESIDENT

APRIL 11, 1987

DIGITAL MOVIE
PROJECT
THE DIGITAL MOVIE
A Joint Venture Proposal for The Sony Organization

Developed by.
Stan J. Caterbone
Representing: Tony Bongiovi
Power Station Studios
Flatbush Films
Gamillion Studios
Advanced Media Group, Ltd.,

Created in May of 1987

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LAW O F F I C E S

SEIDEL, GONDA,GOLDHAMMER& ABBOTT,P. C.


PATENT A N D T R A D E M A R K A T T O R N E Y S
S U I T E 1800 T W O P E N N C E N T E R

PLAZA

P H I L A D E L P H I A , PA. 1 9 1 0 2
A R T H U R H. S E I D E L

TELEPHONE:(215) 5 6 8 ~ 8 3 8 3

3 O E L S. GOLDHAMMER
M I C H A E L P . ABBOTT

p~

2 5 J u n e 1987

p~

GROUP

D A N I E L A . MONACO
ROBERT H. HAMMER lil

I. I , b I 8 4

E D W A R D C. G O N D A
I 1 9 3 0 I S e 5 i

DURLiNG

S T E P H E N J. M E I E R S
AMANDA L A U R A N Y E *
NANCY A

845~218

CABLE. SIPAT

TELkCOP$ER 1 2 1 5 1 5 6 8 ~ 5 5 4 9

G R E G O R Y J. LAVORGNA

THOMAS J

TELEX

OF C O U N S E L
SYLVIA A . G o s r T o r r v l
S T A N L E Y H. Z E I H E R

RUeNER

SCOTT J FIELDS

N r . S t a n l e y Caterbone
FMG A d v i s o r y , I n c .
Eden P a r k I 1

1 7 5 5 Oregon Avenue
L a n c a s t e r , PA 1 7 6 0 1
RE:

Power S t a t i o n
Our F i l e :
7351-G

Dear S t a n :
I h a v e now r e c e i v e d t h e r e s u l t s o f a s e a r c h
p e r t a i n i n g t o t h e above s u b j a c t .
I have a l s o r e v i e w e d t h e f i l e
f o r w a r d e d w i t h y o u r l e t t e r o f May 2 9 .
The f o l l o w i n g i s my
a n a l y s i s and e v a l u a t i o n of t h e r i g h t t o u s e "Power S t a t i o n " a s
d e f i n e d below.
A s I understand the s i t u a t i o n , your b u s i n e s s c l i e n t ,
Power S t a t i o n S t u d i o , h a s , s i n c e 1 9 7 7 , o p e r a t e d a r e c o r d i n g
s t u d i o with a widely regarded r e p u t a t i o n f o r providing high
q u a l i t y r e c o r d i n g s e r v i c e s u s i n g s t a t e of t h e a r t e q u i p m e n t .
The
e n c l o s e d r e p o r t r e v e a l s t h a t Power S t a t i o n s t u d i o h a s r e g i s t e r e d
t h e t r a d e m a r k "Power S t a t i o n " f o r s o u n d r e c o r d i n g s t u d i o s .
(See
Reg. No. 1 , 4 3 3 , 3 2 8 r e g i s t e r e d March 1 7 , 1 9 8 7 . )
You h a v e a s k e d me
t o i n v e s t i g a t e t h e p o s s i b i l i t y o f Power S t a t i o n e x p a n d i n g t h e u s e
o f i t s mark i n t o m e n ' s and women's c l o t h i n g i n c l u d i n g b e a c h w e a r ;
a n d f o r a u d i o a n d vide(:, e l e c t r o n i c s f o r c o n s u m e r s a n d
professionals.
I h a v e assumed t h a t t h i s l a t t e r c a t e g o r y i n c l u d e s
radios, television receivers, video c a s s e t t e r e c o r d e r s , a u d i o
r e c o r d e r s , compact d i s c players, turn t a b l e s , amplifiers,
r e c e i v e r s , t u n e r s , c o n t r o l p a n e l s , mixing b o a r d s and c o n s o l e s ,
among o t h e r t h i n g s .

Based upon t h e r e s u l t s of t h e e n c l o s e d s e a r c h , i t i s
my o p i n i o n t h a t i t would be i n a d v i s a b l e f o r Power S t a t i o n , I n c .
t o u s e i t s mark f o r c l o t h i n g a s a f o r e s a i d .
The b a s i s f o r my

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Mr.

Document: 003112117809 Page: 76


Date Filed: 11/02/2015
SEIDEL, GONDA,Page
GOLDHAMMER
& ABBOTT;F! C .
73 of 221

S t a n l e y Caterbone

-2-

25 J u n e 1 9 8 7

o p i n i o n i s R e g i s t r a t i o n No. 1 , 4 3 1 , 2 4 2 r e g i s t e r e d :.larch 3 , 1 9 8 7
Eor "Power S t a t i o n " .
The r e g i s t r a n t c l a i m s a f i r s t d a t e o f u s e
o f A p r i l 3 , 1986 f o r w o m e n ' s c l o t h i n g i n c l u d i n g s w i m w e a r a n d
o t h e r goods a s l i s t e d .
A l t h o u g h y o u r c l i e n t h a s a s t r o n g r e p u t a t i o n , and
a l t h o u g h i t h a s p r i o r i t y o f u s e f o r t h e mark, t h i s r e g i s t r a n t h a s
a s t r o n g p o s i t i o n f o r arguing t h a t it has superior r i g h t s f o r
women's c l o t h i n g .
One would n o t o r d i n a r i l y a s s o c i a t e c l o t h i n g i n
a n y way w i t h r e c o r d i n g s t u d i o s e r v i c e s .
Thus, your c l i e n t ' s
r i g h t s i n i t s mark d o n o t a p p e a r t o d o m i n a t e t h o s e o f t h e
registrant's.
A c c o r d i n g l y , u s e of t h e Power S t a t i o n mark f o r
women's ( o r m e n ' s ) c l o t h i n g would i n v o l v e a s i g n i f i c a n t r i s k o f
b e i n g a c c u s e d of t r a d e m a r k i n f r i n g e m e n t .
Use o f t h e Power S t a t i o n m a r k f o r c o n s u m e r a n d
p r o f e s s i o n a l a u d i o and v i s u a l e l e c t r o n i c e q u i p m e n t r a i s e s some
i s s u e s , b u t o n t h e w h o l e I am o f t h e o p i n i o n t h a t i t i s
permissible.
A g a i n , I a s s u m e , a s I have b e e n i n f o r m e d , t h a t t h e
Power S t a t i o n s t u d i o i s w e l l k n o w n a n d d o e s h a v e a g o o d
reput-ation f o r its e x i s t i n g s e r v i c e s .
Given t h a t , i t s movement
i n t o e l e c t r o n i c e q u i p m e n t s h o u l d be p e r m i s s i b l e .
Here t h e good
w i l l a s s o c i a t e d w i t h i t s c u r r e n t s e r v i c e s c a n be more r e a d i l y
extended t o audio v i s u a l e l e c t r o n i c equipment.
T h e s e a r c h r e v e a l s t h a t M a n v i l l e C o r p o r a t i o n ' s Ken
C a r y l Ranch i s t h e owner o f t h e mark "Power S t a t i o n " f o r b a t t e r y
o p e r a t e d emergency e l e c t r i c a l 2ower s u p p l y u n i t s .
S e e Reg. No.
1 , 0 4 0 , 3 0 8 r e g i s t e r e d May 2 5 , 1976 and c l a i m i n g a f i r s t d a t e o f
u s e of November 2 3 , 1970.
I n my o p i n i o n , a u d i o v i s u a l e l e c t r o n i c
e q u i p m e n t c a n b e c o n s i d e r e d t o be s u f f i c i e n t l y u n r e l a t e d t o
emergency e l e c t r i c a l power s u p p l y u n i t s t o a v o i d a l i k e l i h o o d of
c o n f u s i o n even though t h e marks a r e i d e n t i c a l .
I r e a c h t h e same c o n c l u s i o n r e g a r d i n g t h e pending
a p p l i c a t i o n by E l e c t r i c a l C o n d u c t o r s , I n c . f o r a m u l t i p l e o u t l e t
power s t r i p .

A c l o s e r q u e s t i o n is r a i s e d by G o u l d ' s S u p p l e m e n t a l
R e g i s t e r r e g i s t r a t i o n f o r Power S t a t i o n f o r m i n i a n d
microcomputers.
G o u l d ' s mark is r e g i s t e r e d on t h e S u p p l e m e n t a l
R e g i s t e r u n d o u b t e d l y b e c a u s e "Power S t a t i o n " a s a p p l i e d t o
computer equipment is considered t o be d e s c r i p t i v e .
A
Supplemental R e g i s t e r r e g i s t r a t i o n h a s none of t h e p r o c e d u r a l
b e n e f i t s of a P r i n c i p l e R e g i s t e r r e g i s t r a t i o n .
Moreover, i f
G o u l d ' s u s e o f t h e mark i s l i m i t e d t o a p a r t i c u l a r m a r k e t w h i c h

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f,lr. S t a n l e y C a t e r b o n e

-3-

25 J u n e 1987

is d i s t i n c t from your c l i e n t s , t h e r e d o e s n o t a p p e a r t o b e a
l i k e l i h o o d of confusion.
T h u s , G o u l d may b e s e l l i n g i t s
c o m p u t e r s i n t o a s p e c i a l i z e d c o m m e r c i a l m a r k e t i f i t is p r e s e n t l y
s e l l i n g computers a t a l l .
Next I c a l l y o u r a t t e n t i o n t o t h e f a c t t h a t s e v e r a l
r a d i o s t a t i o n s have a d o p t e d a n d a r e u s i n g t h e t r a d e m a r k "The
Power S t a t i o n " i n v a r i o u s c i t i e s throughout t h e Unlted S t a t e s .
Conceivably, these radio s t a t i o n s could o b j e c t t o t h e
i n t r o d u c t i o n o f consumer e l e c t r o n i c s i n t o t h e i r market a r e a on
t h e g r o u n d t h a t t h e u s e o f t h e same mark i m p l i e s s p o n s o r s h i p b y
them.
I n o t e t h a t a l l o f t h e s e m a r k s were r e c e n t l y r e g i s t e r e d ,
and I s u s p e c t t h a t a l l of t h e s e r a d i o s t a t i o n s a r e r e l a t e d o r
c o m m o n l y owned.
I a l s o s u s p e c t t h a t t h e a d o p t i o n o f t h i s mark
may b e o f r e c e n t v i n t a g e .
Thus, your c l i e n t i n any n e g o t i a t i o n
w i t h t h e s e p e o p l e would have t h e a d v a n t a g e of b e i n g a p r i o r u s e r ,
and t h e r e l a t i o n s h i p between r e c o r d i n g s e r v i c e s a n d e l e c t r o n i c
e q u i p m e n t on t h e o n e hand and r a d i o s t a t i o n s e r v i c e s and
e l e c t r o n i c equipment on t h e o t h e r hand i s a t l e a s t c o - e q u a l .
Thus, your c l i e n t should have t h e dominant p o s i t i a n .
I n v i e w o f t h e f o r e g o i n g , i t i s my o p i n i o n t h a t The
Power S t a t i o n s h o u l d n o t a d o p t o r u s e " P o w e r S t a t i o n " f o r m e n ' s
a n d w o m e n ' s c l o t h i n g , b u t i t may a d o p t a n d u s e t h e m a r k f o r
p r o f e s s i o n a l and consumer e l e c t r o n i c s a s d e s c r i b e d above w i t h t h e
u n d e r s t a n d i n g t h a t t h e m a t t e r is n o t e n t i r e l y w i t h o u t d o u b t a n d
issues could arise.
I t i s , h o w e v e r , my o p i n i o n , b a s e d u p o n t h e
f a c t s p r e s e n t l y a v a i l a b l e t o me, t h a t The Power S t a t i o n , I n c .
should prevail i f those issues arise.
I f you have any q u e s t i o n s concerning t h e f o r e g o i n g ,
p l e a s e f e e l f r e e t o c a l l me.
With k i n d e s t p e r s o n a l r e g a r d s ,
Sincerely yours,

,'.

SEIDEL, GONDA, GOLDHAMMER


& ABBOTT, P.C.

JSG:mp
Encl.

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SONY CORPORATION
I,
II.
III.
IV.

Scope of Project
Marketing and Distribution
Financial Proposal
Contracts

Tony Bongiovi and Power Station Studio is about to undertake one of the
most interesting projects in the entertainment industry that the Business World has
ever seen. His fascinating elements of this project are as follows:
A).
B),
C).
D).

Musical Overtones
Technology
Marketing and Distribution
Limited Downside Bisk Potential

When you put all of the above elements together in any business venture you
have a very strong and powerful entity. Now, put the above elements in one of the
largest and most visible industries available in the Entertainment Industry.
SONY OBJECTIVES
We want to position Sony as the printer manufacturer of Professional Recording
Equipment in both the Record Industry and also the Theatrical and Video Industry as
well as Television and Pay TV. In addition and even mare important we would like to
credit Sony with contributing in the development of the Sony/PSDMS Digital
Recording System that will recognized throughout the World by way of several
different medium exposures. This will have tremendous effects in the way of
increased sales in both the Consumer/Retail level as well as the Professional
Environment.
SCOPE OF PROJECT
In the following paragraphs I will address the above elements and prove to
support the potential for this project. The Movie was developed to help Tony Bongiovi
take his creative and genius talents in the music industry to capture other industry's
that are complimentary - theatrical, television and cable, video, international film and
now electronics manufacturing. Because of Tonys -track record and accomplishments
in both technology and musical production Bon Jovi! The film already will have
appeal through the feature of his latest band French Lick. Tony has used the same
musical format for their first album as he used for Ben Jovi, which has sold nine ail
lion albums thus far no album has ever sold sore albums in its first six months in
the history of the recording industry. Because of the timing of the album which will
dominate the musical score the two should and will compliment one another very
profitably! To further the marketability of the picture he wrapped this into a horror
script widest marketability due to international distribution and an element that
will prevent the "critics" from influencing the audiences!

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To add further to the project, Tory will produce the first movie ever with a digital
sound track from set to theatre and video. This technology alone would cost anyone
else 190% of the total budget just for the sound production. This is when the project
gets interesting as far as marketing and distribution is concerned. Because of the
exclusivity of the technical elements and the "band", the marketing and distribution
should be powerful alone in even the most conventional deals.
MARKETING AND DISTRIBUTION
Now lets take this project and look at it with regards to two elements:
a). Video Industry
b). Digital recording and playing
The video industry is a 56 billion dollar industry that is in need of product, when
you look at the potential for a product that will be the first actual product that will
compliment the fast paced VCR/Stereo Entertainment components with a Musical
score that nay have enough merits of its ownyou have an amazing potential for
distribution!
The Digital and Disc Industry has proven to be the future standard for recording
and playing in due time. Because of its newness, there are more people who have
yet to hear the digital sound. Because of the visibility and exposure that will come
from this projectthis could be the first time ever people hear digital by way of
theatre and video! As to how many people? 1-10 - 50 - 100 million?
Well, what win be their first reaction? I NEED TO BUY A DISC PLAYER!
Their second reaction will be I WANT TO HEAR THAT SOUND IN MY NEXT TV SHOW,
VIDEO, MOVIE, ETC.,
We would like Sony to commit fifteen million fear three to four future products
that will follow the same format as the Mutant Mania Project so that Tony and Sony
will position themselves as the pioneer and leaders in the industry. This will not allow
composition to gain assets to the marketplace until we are all firmly situated and
profitable.
We will also assist in any way possible in the distribution of the theatrical and video
distribution.

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THE DEAL
In a 60 second spot in the beginning of the video, we will do
commentary on Sony and its contributions to the Digital Industry and the
difference between conventional and digital recording.
I)

The spot will be a commentary with music from French Lick in the
background. The commentary will discuss the Sony/PSDMS SOUND
SYSTEM and the process by which the PURE SOUND Is developed. To
send home our point the "Difference Test" will be used. The movie
Mutant Mania will be promoted as the FIRST Feature Film to use this
system.

II)

Through a merchandizing campaign using the video, (similar to Top


Gun"), We will market a full line of Sony will offer a low
budget but profitable disc player to all purchasers of the
video. The offer will be at wholesale prices. The reason for
the low budget product is that we hope when people actually
get to the store they will upgrade and buy at full retail!
For Sony it will automatically insinuate that Sony is responsible
for Tonys technical accomplishments from the view of the
audience which Tory will not be concerned with. It will also
promote all of Sony's entertainment products.
We will also develop a "60" second spot to be used on television
to promote the (entire project for both Sony and Tony Bongiovi).

III)

We will also include Sony Equipment in the PSDMS System


that will be needed to convert the Theaters to the New Sound
System. We will convert the Theatres Free if the Theatre
commits to showing the next THREE BONGIOVI PRODUCTIONS.
This will give us a guaranteed continued exposure and will give
us guaranteed distribution for both Sony Software and
Bongiovi/Productions. We will recover the true costs of
equipment from distribution profits from the films.

IV.

We will produce a 60 second stand alone commercial for


television, cable and theatre that will be used to promote the
project before the release of Mutant Mania.
Eg\: A 6O second spot utilizing the following elements
a.
French Lick
b.
Rawer Station recording facility
c. Sony's contributions to the manufacturer of the equipment to
produce the sound. This may show "'the difference".
A spot showing French Lick recording in Bower Station for the
Mutant Mania movie.

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We would like to introduce to you the Sony/PSDMS give


input on what it is. "New sit back and let us know if you hear
the difference."
What would you rather listed to when listening to feature films;
video, cable or television.
MERCHANDISING DEAL
Sony will private label a "Stony
equipment:
a). Television
b), Stereo Component
c). Disc Player
d). Video Player

Bongiovi"

or

Power

Station

line

of

The above package will include a free video of Mutant Mania of which Sony
will rebate full price back to distribution.
Tony and Stan will receive credits for complete line:
Total will be negotiated after we have an idea of Sony margins. We want to
make money only if Sony makes money!
We will also provide a marketing package for all retail outlets that is now
being developed.
POWER STATION DIGITAL MUSIC SYSTEM (PSDMS)
Tony will include in Copyright Agreement that SONY EQUIPMENT must be
used to be PSDMS. SONY will receive "Credits on all video, theatrical,
television, and cable "PSDMS/SONY System"
Tony and Stan will also receive credits en all systems using Sony equipment
sold to other film studios Also to be negotiated after margins are figured.
We will arrange a deal where, we along with Sony, will cover exists to
install the necessary equipment in all studios. We will provide a one-day
seminar to all thirty operators of the largest theatre chains.
FINANCIAL STRUCTURE
I.

Sony will only pay for expenses to produce 60-second spots. SONY
and Power Station will utilize any and all services to help produce the
spot and will allow reimbursement for only true costs with no mark-up
excluding all of Tonys time, which will be free.

II.

Power Station and Power Productions I will receive a negotiated


percentage
of
profits
from
all
profits
generated
from
the

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merchandizing campaign of the Sony products and the sale that may
result to other film studios utilizing Sony equipment in the DNS
System.
III.
IV.

We will receive three sets of a full entertainment system Television, VCR, Stereo, Etc, that is top of the line to help during the
production of the film to be utilized by Marcia, Stan and Scott.
Sony will have first right and first refusal of all and any distribution
contracts for theatrical, video, cable, and television syndications. We
will promise not to even talk to anyone else until we feel that Sony is
not going to offer a fair and reasonable deal. We will give Sony a 5%
margin to gain a competitive edge.

The purpose of the above and all aspects of this Deal is to let the
separate entities involved maximize their profits for their respective talents;
Tory in film and music production and Sony in manufacturing and eventually
distribution of both equipment and merchandise and later video and film
distribution.
World wide marketing available after this picture through cinaworld and
Marcia. Sony will be on credits of the film world wide PSDMS? Power
Station Digital to be shared with PSDMS?

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SONY JOINT VENTURE PROPOSAL FOR THE DIGITAL MOVIE


(May of 1987 by Stan J. Caterbone/Global Entertainment Group)
(PSDMS - Power Station Digital Movie System by Stan J. Caterbone)
I.
II.
III.
IV.
V.

INTRODUCTION
SONY'S ROLE
MARKETING AND DISTRIBUTION
PRODUCT DEVELOPMENT
APPENDIX

I.

INTRODUCTION

Tony Bongiovi and Power Station Studio are undertaking a project that has the
potential of revolutionizing the entertainment industry. In the next few pages of this
proposal, I will outline the elements involved and how Sony can participate in this
landmark event.
The technology of the recording industry has been advancing by leaps and
bounds. We have seen the advances from monaural long playing record to stereo
record to compact disc. Now we are seeing tape systems that use digital rather than
analog signals appear, matching the quality of compact discs. What has happened to
the theatres? The audio portion of a film, is as responsible for the sensations one
experiences at a motion picture as the visual, yet many theatre's are still equipped only
for mono sound. Why is this? We feel there are two basic reasons.
1) The relative high cost of upgrading a theatre to be able to
incorporate the advanced technologies of the audio industry.
2) The lack of proper equipment for the film industry to
produce high quality digital audio tracks.
These two problems should not be addressed separately.
There is little
motivation for upgrading until the product is available and even less motivation to
produce a product that cannot be heard.
Tony Bongiovi and Ed Evans at Power Station in New York, have now made it
possible to address these problems simultaneously. Their creation of the new "Power
Station Digital Movie Sound" (PSDMS), will not only enable the film industry to produce
the highest quality audio tracks for film, but will also allow theatre's to upgrade their
existing sound system at a minimal cost.
To introduce this revolutionary new sound, Bongiovi is in the process of
producing a film entitled "Mutant Mania", which is a science fiction action horror film,
shot in a small ocean resort town in New Jersey. This film has many elements that
make it perfect for the introduction of PSDMS. The most prevalent of these being the
heavy music score by Bongiovi's latest band "French Lick".
Producing bands is
definitely one of Bongiovi's fortes. Bongiovi was instrumental in creating "Bon Jovi"
who is probably the strongest force in the rock and roll circuit today. "Bon Jovi's" third
album "Slippery When Wet", has sold more copies in a short period of time than any
other band in history.

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Another is the fact that this is a horror film. The use of audio in horror films is
important to create tension, fear, excitement etc. Using a horror film also lessens the
influence the critics have on the audience.
By and large this film will stand on it's own merits. Now add PSDMS, and you
have a potential block buster event. How does Sony fit into all of this?
II.

SONY'S ROLE

What we are seeking to do is establish a distribution route in which the message


of Sony's new technology and its benefits can be more easily and directly passed on to
the consumer.
SONY/PSDMS
Picture a one or two minute commentary at the beginning of the movie and home
video, demonstrating the difference between the quality of theatrical sound now and
the new SONY/PSDMS sound. This does two things. First, by demonstrating the
difference in quality of the new sound, you reinforce in the audiences mind that it is
much better, which as you will hear, there is little doubt. Secondly it reinforces in the
audience that Sony truly is a pioneer of advanced innovative technologies.
In addition to the commentary, Sony will receive credits on the film, ie.
SONY/PSDMS. We will include in the copyright agreement that Sony Equipment must
be used to be
SONY/PSDMS.
Sony's name will also be strategically placed throughout the film. This may be
done in the form of billboards, advertisements, or Sony equipment being utilized.
A commercial may be developed for TV promoting both the film and Sony's
contributions to advanced audio techniques in the film industry. This could be done as
a joint venture between Sony and the distribution company for the theatrical and video
exhibition.
Inside every video tape that is sold, a coupon may be placed to promote Sony
products.
A full line of quality equipment may be SONY/POWER STATION labeled for
consumer use to enhance marketability of Sony entertainment products.
Sony Video Software Corporation will receive right of first refusal on all contracts
for video and theatrical distribution. We will allow Sony a preferred 5% margin under
any other distributor for a competitive edge.

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TIMING
Timing is crucial in a project that touch so many different areas.
III.

MARKETING AND DISTRIBUTION

Most of the industry by their own admission is at least two years away from an
effort to upgrade the sound in movie theatres. With the SONY/PSDMS system, other
companies may adapt easily and economically to produce products with digital movie
sound. With companies adapting to this process, the future should see the prominence
of the SONY/PSDMS insignia much the same as you see the Dolby insignia today. This
will act as a constant reminder to the public that Sony truly is a pioneer of advanced
audio visual technologies.
Sony will receive exposure in the professional market place by having the
SONY/POWER STATION equipment used in theatres and studios to produce the
SONY/PSDMS sound.
The video industry is a 56 billion dollar industry that is in need of product. When
you look at the potential for a product that will be one of the first feature films to
compliment the fast paced VCR/Stereo Entertainment components, with a musical score
that may have enough merits of its own, you have an amazing potential for distribution.
The Digital and Disc Industry has proven to be the future standard for recording
and playing. Because of the relative newness of the digital format, there are more
people who have yet to experience the digital sound. With the high exposure that will
come from this project, this could be the first time ever people hear digital. How many
people? 1 - 10 - 50 - 100 million?
What will be their first reaction? I need to buy a Disc Player!
Who's name will they think of first? SONY/PSDMS
IV.

PRODUCT DEVELOPMENT

Bongiovi and Evans at Power Station have developed a revolutionary hybrid


mixing console to penetrate the video post production market. This console was
developed to enable engineers to produce high quality audio tracks for the film industry
as well as the recording industry. This new console utilizes an automation system that
can be used by both industries. This new console is especially attractive to the film
industry, as it will greatly reduce production costs since mixing costs in a recording
studio are much less. At present the console that is being used is a bastardized system
that utilizes components from many different pieces of equipment, from a number of
different companies, of which Sony is one. Because we already have a working model
of this console, it would take very little time for a finished product to be manufactured
that could carry the SONY name.
The other piece of equipment that is essential to the PSDMS process, is the box
that enables the laser disc to automatically read the synchronization track encoded on
the film. This piece of equipment can be produced at an extremely low cost. It is this

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low cost and the fact that the theatres will not have to replace their present projectors
that make digital movie sound a reality in 1988.
We feel that with consumers demanding the same quality audio at theatres, as
they have become accustomed to with their home entertainment systems, theatre
owners will have little problem investing the nominal amount of dollars involved, to
upgrade their theatres for digital audio. This investment could be as low as $1000.
With the cost being so low, the distribution company may want to consider
bearing the burden of this cost, if the theatre owners agree to show Bongiovi's next
three films.
FINANCIAL STRUCTURE
SONY will commit four million dollars for the production of Bongiovi's film to be
released in 1988. We would like SONY to commit fifteen million for three to four future
products that will follow the same format as the first, so that Bongiovi and SONY will
position themselves as the pioneer and leaders in the industry. This will not allow
competition to gain access to the marketplace until we are all firmly situated
and profitable.
Sony will only pay for expenses to produce 60 second spots. Tony and Power
Station will utilize any and all services to help produce the spot and will allow
reimbursement for only true costs with no mark up including all of Tony's time which
will be Power Station and Power Productions I (Stan Caterbone - Power Productions I)
will receive a negotiated percentage from all revenues generated from the
merchandizing campaign of the SONY/POWER STATION products and the sale that may
result to other film studios utilizing Sony/POWER STATION equipment in the PSDMS
System.
We will receive four deluxe entertainment systems - Television, VCR, Stereo, Etc.
that is top of the line to help during the production of the film.
The purpose of the above and all aspects of this Proposal is to let the separate
entities involved maximize their profits for their respective talents; Bongiovi in film and
music production and Sony in manufacturing and distribution of equipment and
merchandise and later video and film distribution. END

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Power Station
Power Station was formed in 1977, in partnership with Tony Bongiovi and Bob Walters.
Power Station, within a short period of time established itself as the premiere recording
facility in the world. The studios success to a large degree is due to Bongiovi's
tremendous creative talents in the fields of studio design, production and
entertainment. The ability to anticipate what the public at large wants to hear and to
create a format that will produce a highly marketable product.
Bongiovi's creative genius became most evident with his recent success producing the
band "Bon Jovi". After years of work developing their talent and structuring the format
for their music, "Bon Jovi" rapidly became one of top bands in the world.
Bongiovi's most recent project is a band called "French Lick", which he brought into the
studio approximately two years ago. You may have heard French Lick's music in Ron
Howard's production of Gung-Ho. French Lick's music and talent have been developed
along the same format as "Bon Jovi" and have recently been showcased to the major
recording labels. Contracts should be finalized with Quantum Medium in a few weeks.
Quantum Medium is a division of MCA, owned by the same people that own MTV.
French Lick is wholly owned by Power Station, along with their first album, which gives
Bongiovi the ability to use any and all the songs from the album in the movie.
By placing the band in the movie and having the music score written by the band, we
are able to take advantage of marketing potential normally not available to other
productions. The music video for the band will be shot at the "same time as the movie
and will primarily be scenes from the movie. The release of the video will be timed to
promote the opening of the movie. The release of the songs off the first album will also
be -coordinated to promote the movie. To fully understand the marketing potential the
band brings to the project, picture what, gross receipts at the box office would look like
if "Bon Jovi" were appearing in a movie this year (Any movie). If French Lick does one
tenth as well as Bon Jovi, this movie is a guaranteed hit.
During Bongiovi's work on "Star Wars", "Apocalypse Now" and "Gung-ho", he was able
to make many of the contacts necessary to form the extremely talented group of artists
that are essential for a production to be successful.
Barbara Peters: Director/Writer/Producer
Barbara has directed many programs such as "Matt Houston", "Falcon Crest", "Cagney
and Laoey", "Misfits", "Berrengers", and "Remington Steele" to name a few. The film
Barbara directed that convinced Tony to hire her for this production was "Humanoids
From The Deep". Humanoids was made in 1978 for $ 980,000 ($ 20,000 under budget
and four days ahead of schedule) and grossed over $28 million in domestic and foreign
theatrical Sales. This was during a period in time when the video market was in its early
stages of development. A film released today that would gross $ 28 million in 1978
dollars has even greater potential for a much higher gross with the strong video market
that is available now. What impressed Tony the most with Barbara's direction of
Humanoids was her ability to bring a high degree of quality to a film on such a limited
budget.
Peter Hock: Stunt Ooordiiator/Actor/Stuntman
Peter's credits include films such as, "Trading Places", "Stepford Wives", "To Kill A
Cop", "Ghost Busters", "FX", and a host of other Films, Broadway, Musicals and
Television Shows.

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There are many factors, which contribute to a projects success. If you were to take a
cross section of the movie industry to find which types of projects were most likely to
succeed, you would find that movies in the two to four million dollar range have much
greater chances of success than movies in the ten to fifteen million dollar range. The
reasons for this are quite simple. A movie in the two to four million-dollar ranges is a
high enough budget to produce a quality film but limiting the risk to the investor since
it needs less of the market share to produce a profit.
Horror movies, from the investors point of view are the safest type of movie to
finance. Horror movies have an almost cultist following. The type of audience that
attend horror movies rarely wait to see what the critics have to say about the movie.
There is a fascination with gore that this audience would rather see than have
described to them. The overseas market for movies of this genre is tremendous. In
almost all cases the gross revenues from the theatre, will be greater overseas than in
the domestic (US and Canada) market. This especially holds true for horror movies.
Over the last few years, we have been seeing a trend for movies to have a much
heavier music score than in the past. The feelings that can be invoked in an audience
from audio are sometimes as great or greater than the visual aspects of a film. With
Bongiovi's experience and past track record, we are assured of having one of the best
quality sound tracks to a movie ever made. This production could very well
revolutionize the movie industry in that this will be the first time that the sound track
will be totally digitized from the set to the theatre or home video. What this means is
that the quality of the sound, which is typically extremely poor in a movie theatre or
home video cassette, will now be tremendously crisp. This new movie sound will be
similar to the quality you would expect from a laser disc. Normally the costs involved to
produce a movie with this type of sound track would greatly increase the budget to a
point where the project would nave an increased element of risk. With Power Station,
which already has in place state of the art equipment, some of which can be found in
only one or two other studios in the world, this sound track can be produced for a
fraction of the costs that another production company would have to pay. This greatly
reduces the risk to the investor to be able to produce state of the art audio at a fraction
of the costs.
It is a very natural progression for a recording studio such as Power Station to evolve
into an entertainment complex, which includes the production of films. Power Station
currently has financing in place for a $ 3.5 million video mix studio to be built next to
the recording studio. Distribution companies are constantly looking for new sources of
product to market. With Bongiovi's track record in the entertainment industry, any
product that carries the Bongiovi label should create a bidding situation with the
distributors.
Advanced public relations work is currently being done to set the stage for negotiations
with the distribution companies. "Billboard11, "Variety", and "Box Office" have already
agreed to do articles on Bongiovi and the movie. On April 30, ABC will be airing a radio
talk show with Bongiovi that will air on 2300 stations to a total listening audience of
over six million people. "Pame, Fortune, and Romance" have also agreed to give
network TV coverage.
The home video market has rapidly been changing the potential movie profits for the
industry. A Nightmare On Elm Street was made for well under two million dollars and
has earned New Line Cinema more than $24 million at the domestic box office. In
addition, after a short video release, this production has sold over 3 million cassettes.
In the past videos were sold only to video rental stores for approximately $70 apiece.
Recently the price has been lowered to expand the market to the general public. The
video rental stores won't disappear, but they may become more like record stores that

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also rent their albums. All of this translates into more profit potential for producer and
investor.
It is an extremely rare opportunity to be able to get in on the ground floor in an
offshoot of an already well established entertainment company. Any investor willing to
back this project will have first right of refusal on any future projects. The percentages
will remain the same for at least the first two projects.

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INVESTING IN MOTION PICTURES


Independently produced motion pictures are a better investment today than ever
before.
Reasons:
1) Increased Markets: There is much wider distribution of motion pictures today
than ever before (i.e. Pay TV, Cable TV, videocassettes, satellite transmissions,
etc.)
2. 'Presale1 contracts which bind the buyers (i.e. networks, pay TV, foreign
distributors, etc.) to specific payments at a future date, this insuring return of
capital and, in some cases, a profit before the film is released.
Investment Structure:
The producer and investor form a limited partnership for the purposes of producing
one or more motion pictures. The investor receives 100% of the net profits until
recoupment, after which the split is 50-50. Profit participation of others (actors,
director, writer, etc.) comes out of the producer's end.
Packaging:
The producer secures the services of a director, principal actors, and a writer.
Presale Deals:
The producer can negotiate presale (preproduction) arrangements with
distributors, networks, pay TV, merchandisers, etc. Whereas such arrangements
can minimize the downside risk, they can also inhibit the eventual profitability of
the film.
Risk Factors:
It is very difficult to determine exactly how much of a risk one runs in financing a
theatrical film. Adequate statistics are impossible to find. Sharmat Services of Los
Angeles a four-year-old study which revealed that 60% of all films released make
money. This study, however, did not include long range TV syndication (foreign
and domestic) revenues, and was made before Pay TV and video cassettes became
significant additional markets, chemical Bank of New York reports that they have
never lost money on film financing.
Another risk is the possibility that no distributor will want to release the picture.
That is why some independent producers include, a provision for distribution
financing in their investment agreements. If worse comes to worst, producers can
distribute the film themselves. (Notable examples are "Billy Jack" and "Benji".)
There may be production catastrophes that will delay or cancel production once it is
under way. Producers will carry various forms of insurance (including completion
bonds) to at least repay whatever funds have already been spent.
Marketing:
If a distribution arrangement has not already been made, the producer now
secures such an arrangement. If the picture is good, it is possible to negotiate a
much better deal than could have been done earlier. On the other hand, the

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producer could have trouble securing the kind of distribution commitment wanted.
The main factors here are how much money the distributor is willing to commit to
selling the picture, how much influence the producer can have on the marketing
campaign, and the distribution fee. Sometimes small distributors are able to give
more time and attention to independent pictures and offer better terms, but the
producer may have to provide some distribution expenses.
Out of gross domestic box office receipts, the exhibitor (retailer) usually subtracts
his fixed costs and then receives 10%. Out of the remaining 90% gross film rentals
received by the distributor (wholesaler), he usually recoups all or part of his costs
plus a distribution fee of 20-35%, then passes the rest on to the producer/investor.
Terms of distribution deals vary considerably. '
Box office receipts, however, only account for a part of the producer/investor's
revenues. As the enclosed figures show, the ancillary markets are at least as
significant as the domestic theatre box office. TV syndication, for instance, can
continue to bring in revenues for the next twenty years.
Demand for Product:
Today's supply comes nowhere near to matching real demand. At the present time,
there are over 18,000 theatres in the United States, it can readily be seen that
roughly 400 films produced and rated last year did not begin to meet; their needs.
Theatres are compelled to show any type of film they can obtain to keep their
doors open.
To date, independent producers are responsible for 72% of all films made worldwide. The domestic figure is 62%. The independent producer has three primary
options regarding distribution. These include the sale of the film outright to a major
national distributor, their merchandising of the film by the production company
itself, or the use of smaller regional sub-distributors who may promote the film in
their respective geographical areas. Distribution of films often relies on all' three
methods to one degree or another.
Another market, television, can consume nearly every film that has been, or is
presently being produced. If each of the three networks would show only one film
per night, they would need over 1,000 films per year. In Los Angeles area alone,
there are nearly 10,000 films aired each year in a combination of local and network
viewing time. Many films are shown time and time again because there are no new
films to replace them.
Today, virtually every film of quality has residual value in television, either by
outright sale or by term licensing. The latter is preferable since it allows the
production company to retain ownership of the negative. The time lag between
theatre release and TV sale has diminished from seven years to an average of 18
months. However, some major features such as "The Wiz" have been sold to TV
before completing a full year in theatrical release. The trend seems to be toward
purchase of 'fresh1 films, and the outlets appear willing to pay the higher costs
involved.
Because of the great demand and the outrageously competitive attitude that
pervades the networks, handsome deals are being consummated before the
production has been completed and then, by prearrangement ' with the producers,
hold the film until it has completed its theatrical run.

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Forecast A

Breakeven for Limited Partners:


Based on gross revenues of $ 11,200,000 collected from 1st and 2nd theatrical
runs
1st run ticket costs of $ 6.00 2nd run ticket
costs of $ 5.00
1st Run
50 people per show x $ 6.00

$ 300.00 Gross per show $ 300,000 Gross $

$ 300.00 per show X 1000 houses

4,200,000 Gross
$ 250.00 Gross per show $ 500,000 Gross $
7,000,000 Gross

$ 300,000 X 14 days
2nd Run

$ 4,200,000 $ 7,000,000 $11,200,000

50 people per show X $ 5.00


$ 250.00 per show X 2000 houses
$ 500,000 X 14 days
Total 1st Run
Total 2nd Run
Total

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Forecast A

Total Box Office Gross -------------------------------------------------- $ 11,200,000


Less 15% For Theatres --------------------'-------- ;----------------- $

1.680.000

Motion Picture Profits -------------------------------------------------- $

9,520,000

Less 30% Distribution Fee --------------------------------------------- $

2,856,000

6,664,000

Less : Investors Capital ----------------------------------------------- $

4,000,000

Net Profit ---------------------------------------------------------------- $

2,664,000

Producers Split @ 50%------------------------------------------------- $

1.332.000

Investment Company Return

1,332,000

less : General Partners Split @ 15% -------------------------------- $

199.800

Investors Return ------------------------------------------------------- $

1,132,200

These are only projections and are for informational purposes only. Any investment
made, based solely on these projections would be unadvisable as actual performance
could vary greatly.

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Forecast B
Forecast B is based on a total box office gross of $ 28 million
A film that produces a theatrical gross of $ 28 million can be expected to gross at least
that much from TV, Cable and video markets. Depending on how distribution agreements
are negotiated we can expect 50% to be net profits
Forecast B

Total Box Office Gross ------------------------------------------------- $ 28,000,000


Less 15% For Theatres ------------------------ ' ---------------------- $ 4,200,000
Motion Picture Profits -------------------------------------------------- $ 23,800,000
less 30% Distribution Fee --------------------------------------------- $ 7,140,000
$ 16.660,000
T.V., Cable and Video Net ---------------------------------------------- $ 14,000,000
Ttotal Net---------------------------------------------------------------- $ 25.340,000
Less : Investors Capital ------------------------------------------------ $ 4,000,000
Net Profit ---------------------------------------------------------------- $ 21.340.000
Producers Split @ 50% ------------------------------------------------ $ 10,,670,000
Investment Companies' Return

$ 10,670,000

Lsss :..General Partners Split @ 15% --------------------------------- $ 1,600,500


Investors Return -------------------------------------------------------- $ 9,069,500

These are only projections and are for informational purposes only. An investment
made, based solely on these prxyiections would be unadvisable as actual performance
could vary greatly.

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PAYROLL SERVICE (WAIVED)


MISCELLANEOUS
OTHER
OTHER
OTHER

. (.

TAL INSURANCE/TAX /LICENSE/FEES:

.
.
.
.

<
<;
<;
r

3 1 1 33 1 . ::

. GENERAL OVERHEAD:
FLAT CHARGE
CORPORATE OVERHEAD EXPENSE
CASTING OFFICE SALARIES
ENTERT A I NMENT-EXECUT I VES
TRAVEL EXPENSE-EXECUTIVES
OFFICE RENTAL AND EXPENSE/P MO
. OFFICE RENTALS/SUPPLIES/P WK
AUDITOR
TIMEKEEPER
SECRETARIES
PUBLIC RELATIONS HEAD
PUBLIC RELATIONS SECRETARY
LEGAL FEES (P/HR)
POSTAGE/ TELEPHONE/P WK
CUSTOMS BROKERAGE
GENERAL OFFICE OVERHEAD
FILM SHIPPINGOTHER
OTHEROTHER

10

200.00

4
17

1000.00
45O.OO

50
17

175.00
60O.OO

80

40. 00

FAL GENERAL OVERHEAD:

.C
.C
.0
2000. C
.0
4000. 0
7650.0
.0
.0
.0
.0
.0
8750.0
10200.0
.0
.o
3200.0
.0
.0
.0
.0
35800. 0<

. FINANCE
CHGS/J^GN^lW6EfclCY/BONDS:
S ROBERTSON/STAN CATERBONE
COMPLETION BOND ' ------COMPLETION BOND-NO CLAIMS
CONTINGENCY

.
4000000
0
:00
. 0275 (400OOOO.OO
.1
3367502. OC

$2OO,000
110000.0;
336750.2'
646750. 2<

\ND TOTAL BELOW THE LINE

1013052.9'

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POWER PRODUCTIONS I LETTER OF INTENT


FOR
JOINT VENTURE PARTICIPATION CONTRIBUTION
(May 20, 1987)
The undersigned, intending to be legally bound , in consideration of his
admission as a participant in the j o i n t venture to be known a s "POWER
PRODUCTIONS I" and receipt of a profit/loss distribution share of % of
___________ such joint venture, hereby declares and acknowledges his intent to
participate in such joint venture and hereby covenants and agrees to contribute the
sum of $_______________________ to the capital of such joint venture, which
sum shall constitute his initial capital account in such joint venture.
This Letter of Intent is entered into by the undersigned upon the following
general understanding:
Power Productions I will be a joint venture to be formed under
the laws of Pennsylvania, having the specific purpose to invest
(loan) its funds to MUTANIA PRODUCTIONS, INC. t o finance
such corporation's production of a motion picture. The joint
venture shall receive full repayment of its investment from
MUTANIA PRODUCTIONS, INC. before the distribution of any
profits to any party. Thereafter, the joint venture shall receive
50% of the profits from such motion picture of which 85%
shall be distributed to the non-managing joint ventures
(including the undersigned) and 15%

shall be distributed to

Stanley J. Caterbone as the Managing Joint Venturer of Power


Productions I.

The joint venture shall have a right of first

refusal to finance the next movie production of MUTANIA


PRODUCTIONS, INC. and/or TONY BONGIOVI.
The undersigned agrees that he will execute and deliver a countercounterpart of the joint venture agreement (which shall be consistent with the
above general understanding) and that he will execute and deliver all documents
required for the joint venture to elect not to be taxed as s a partnership.
Contemporaneous with the execution of this letter of intent, the undersigned

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is contributing 10% of his total agreed contribution, or $__________________,


within fifteen (15) days from the date hereof, time being of the essence, the
undersigned shall contribute the 90% balance, or $_____________________ .
Such contribution shall be held by Stanley J. Caterbone at interest pending
completion of all negotiations and execution and delivery of all documents with
MUTANIA PRODUCTIONS INC..
If such negotiations, delivery and execution are not completed within thirty
(30) days after the full contribution is made, the entire contribution, with all interest
earned thereon, shall be returned to the undersigned without demand. Stanley J.
Caterbone shall be responsible for collection, receipt, interim investment and
management, and ultimate investment or return of all funds contributed, and shall
be the Managing Joint Venturer of the joint venture.
The undersigned hereby authorizes and empowers Stanley J. Caterbone to
negotiate, execute, and deliver all documents necessary or required to implement
the joint venture purpose and to take all other actions and negotiate, execute and
deliver all other documents necessary or desirable to implement of effectuate the
joint venture purpose.
SIGN
NAME:_____________________________________(L.S.) Date: May ______,1987
PRINT
NAME:_____________________________________________________________
STREET
ADDRESS:__________________________________________________________
CITY:_______________________ STATE:___________________ ZIP:_________

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RICHARD C. FOX, PC
ATTORNEYS AT LAW
1015 ROBERTS VALLEY ROAD
HARRISBURG, PENNSYLVANIA 17110
RICHARD C. FOX*
ADMITTED ALSO FLORIDA

May 20,

1987

Mr. Stanley J, Caterbone


FMG Advisory, Inc.
Eden Park II, 1755 Oregon Pike
Lancaster, PA
17601

For Professional
Services rendered
in connection
with
Power
Productions
Including
conference,
preparation of Letter of Intent, and express mailing,
and follow-up telephone check.
Professional Fee
U.P.S.

250.00
8 .95
$258.95

PAID RIA #117

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FLATBUSH
FILMS,INC.
May 23, 1987

Mr. Stan Caterbone Financial


Management Group 17 S 5 Oregon
Pike Lancaster, Pa. 17601 '
Dear Stan:
At your request Ive investigated the requirements of the Completion Bond.
Bert Schneiderman of Worldwide Completion Services in New York has given me a
figure of 5*5%, excluding contingencies, with a 50% No Claims Bonus, Since Bert also
owns Bon Bon Payroll Service he has agreed to waive the payroll fee if we xise their
bonding service.
Requirements: They need copies of the budget and/or production board revenues for
the director and producers as well as copies of their contracts and any other
production agreements which have been completed.
Further they need to know when we will commence principal photography, editing
location and if we intend to have a distribution deal up front.
I spoke to Jerry Vandersonde and Bill Hudson of DeWitt Stern Insurance in Los
Angeles, who were recommended by Worldwide. Since I couldn't show him a budget
or a script we did some educated guessing and came up with a figure of
approximately $75,000. The Production Package policy should include: General
liability, cast insurance* negative film, faulty stock and camera processing, props,
sets, wardrobe, rented equipment, extra expenses, third party property damage,
non-owned auto, Errors and Omissions including a one year bond and a minimum
workmen's comp policy for anything that is not covered by workmen's comp.
I understand you're going to Wildwood this weekend. We need to house a crew of
about 60-80, production offices, catering service, We'd like to get as many free extras
as possible and need high quality promo type giveaways. For screen credit, of course.
If you have any such contact we'll need mutant dolls (500?) and if you can help bring
down location costs that would be great. I'm talking about beaches, amusements, the
pier parking facilities. Probably well handle that better next week when we can talk in person.

Sincerely,
Arlene Davidson

4334 STERN AVE.,

SHERMAN OAKS, CALIFORNIA (818} 995-3417

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FLATBUSH
FILMS,INC
May 23, 1987

Ms. Ellen Libman Power


Station, Inc. 441 West 53rd
Street New York, N.Y. 10019
Dear Ellen:
Barbara and I have mapped out a skeleton schedule for our trip to New York and I
thought I'd send it off and see if it works for everyone else. By the way, we've decided
to stay in New York until Tuesday instead of Monday as originally planned.
Thursday

Arrive about 3:00PM. You have the exact time since you've
booked our flights. Please let us know if someone will pick
us up or if we should take a taxi,
We'll come to Power Station and give you and Tony
copies of the script and budget, which we'd like you to read
Thursday night,
Barbara and I have a dinner meeting with a Director of
Photography.

Friday

Sunday
Monday
Tuesday

Leave for .New Jersey in the morning. Discuss script and


budget, Meet Mayor of Wildwood and bring him a synopsis
of script which he has requested. , Meet with Steve Garelick,
the Production Coordinator of the New Jersey Film
Commission. Look at locations.
Stan Caterbone arrives in New Jersey. Meet the rep from
Maury's Pier to discuss location costs. Check out hotels for
crew and cast.
Last minute details in New Jersey, Leave for New York
around noon.
Meetings at Power Station for final discussions
About script, budget, contracts, etc.
Afternoon - Leave New York approximately 4PM to
arrive Los Angeles about 5 pm.

Cc: Stan Caterbone


Barbara Peters

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STATISTICS FOR SONY DEAL

I.

Power Station
1. Bon Jovi - Tony's creation
1% - $1 Million in I987 in
Revenues
a. Format
b. Mixing
Sold 9 million albums in 6 months
2. Power Station - High Tech Award - Last 4 Years
Best in World By Peers!
3. 4 - 5 Grammys in 1987 recorded there Steve Winwood
Others: Jagger,, B. Joel, Springsteen, Diana Ross,
Madonna, J. Lennon, on and on.
4. Tony - Multi Track Recording
Defied Theory
Designed Sound - Voyeger
Produced Star Wars Album - Mixed
5. French Lick - MTV may sign Free Promotion

II. Technology
1. First Video, film, tv in digital. All first for full entertainment
2. Kodak and Mitsubish - Not till end of Decade
3. Dolby - Sony/PSDMS - $10,000 per license to any tv, film,
video, etc.
4. Only mix board that will mix albums/video's
Sell to all recording and film studios $300,000 $500,000 per console.
5.
Sony spends 9% of gross revenue on R
&D
9% of billions 2 = $180,000,000
6. Put Sony 5 years ahead of strategic plan
Disc players - Only 23% of consumers currently own a disc
player. First time to hear for how many?
III.

Film/Video
1. 23,000 theaters to sell system
2. First will sell movie and video
Add French Lick
3. Top Gun - sold 9 million @ $30.00 - $60.00 per video
$270,000,000 +
4. Horror International Film $20 - $60,000,000
Pay TV, Cable, TV - ?

IV. Commercial -180 Sec Commentary


Sony - $4,000,000 - $8,000,000 for commercial
Visa Demonstration $2 Million - $6 Million
Pepsi Paid $8,000,000 60 Second in front of "Top Gun" video.

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V. Merchandise - Private Label


Power Station Beach Line
In movie, free by original designer and owner - "Hang Ten" swim
wear Power Station Electronics Line/Sony
Best recording in world - is it good?
Beach Accessories Promotion in
movie, video, TV
Sell all of above
Video - Mail Order, Stores
VI. Sony
1. Needs help
a. Low profits
b. Beta Bust
2. Best name electronics Manufacture
3. Film and video distribution (new)
4. Willing to work together
a. Share tech
b. Joint venture
c. Horizontal distribution
5. Horror Elements and P/S name already international
Deal would involve:
1. Retail electronics division
2. Professional electronic
3. Film distribution
4. Video distributionrevenues
30% - 50% = $600,000,000
Tony said 50/50
All costs - $4 Million
New - Film studio?/with Sony
Deal worth 100,000,000 Now??
Would Kodak or Mitsubish like deal?
Will Sony let this deal go to competition?
No - Beta
PERFECT ENDING: Profits and Respect
creation-4/11/87
11:00-1:00 a.m.
Stan 98% 1%
Scott-Call Ron Cell
Research Sony
Star Wars - $2 Billion in 10 Years from all
1% Marcia - Sony give 4 million Raise 15 Million
Call Head of video distribution
Merchandising - Hang Ten Off
Kodak Sony Difference test visa add in

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Advisory, Inc.
11, 1755 Oregon Pike

Lancaster, PA 17601

717-569-4100

FINANCIAL Y A I U l i E M E N I GIOUC 1 1 0

STANLEY J. CATERBONE
PRESIDENT

By: stan caterbone

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TABLE OF CONTENTS

SONY JOINTcVENTUREPROPOSAL
"SONY CHALLENGE"
SONY JOINT VENTURE STATISTICS
INVESTOR MARKETING MATERIALS
LEGAL DOCUMENTATION
SCREEN PLAY (1ST DRAFT)

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THE DIGITAL MOWE


A Joint Venture Proposal for

The Sony Organization

Developed by:
Stan J. Caterbone

Representing:
Tony Bongiovi
Power Station Studios
Flatbush Films
Garnillion Studios
Advanced Media Group, Ltd.,

beated in May ~f 1987

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SONY CORPORATION

INTRODUCTION
SONY'S ROLE
TIMING
MARKETING AND DISTRIBUTION
PRODUCT DEVELOPMENT
FINANCIAL STRUCTURE

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INTRODUCTION
Tony Bongiovi and Power Station Studio are undertaking a project
that has the potential of revolutionizing the entertainment industry.
In the next few pages of this proposal, I will outline the elements
involved and how Sony can participate in this landmark event.
The technology of the recording industry has been advancing by
leaps and bounds. We have seen the advances from monaural
long playing record to stereo record to compact disc. Now we are
seeing tape systems that use digital rather than analog signals
appear, matching the quality of compact discs. What has
happened to the theatre's? The audio portion of a film, is as
responsible for the sensations one experiences at a motion picture
as the visual, yet many theatre's are still equipped only for mono
sound. Why is this? We feel there are two basic reasons.
1>

The relative high cost of upgrading a theatre to be able to


incorporate the advanced technologies of the audio
industry.

2> The lack of proper equipment for the film industry to


produce high quality digital audio tracks.
These two problems should not be addressed separately. There
is little motivation for upgrading until the product is available and
even less motivation to produce a product that can not be heard.
Tony Bongiovi and Ed Evans at Power Station in New York, have
now made it possible to address these problems simultaneously.
Their creation of the new "Power Station Digital Movie Sound"
(PSDMS), will not only enable the film industry to produce the
highest quality audio tracks for film, but will also allow theatre's to
upgrade their existing sound system at a minimal cost.
To introduce this revolutionary new sound, Bongiovi is in the
process of producing a film entitled "Mutant Mania", which is a
science fiction action horror film, shot in a small ocean resort town
in New Jersey. This film has many elements that make it perfect
for the introduction of PSDMS. The most prevalent of these being

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the heavy music score by Bongiovi's latest band "French Lick".


Producing bands is definitely one of Bongiovi's fortes. Bongiovi
was instrumental in creating "Bon Jovi" who is probably the
strongest force in the rock and roll circuit today. "Bon Jovi's" third
album "Slippery When Wet", has sold more copies in a short
period of time than any other band in history.
Another is the fact that this is a horror film. The use of audio in
horror films is important to create tension, fear, excitement etc..
Using a horror film also lessens the influence the critics have on
the audience.
By the large this film will stand on it's own merits. Now add
PSDMS, and you have a potential block buster event.
How does Sony fit into all of this?

SONY'S ROLE
What we are seeking to do, is establish a distribution route in
which the message of Sony's new technology and its benefits can
be more easily and directly passed on to the consumer.

Picture a one or two minute commentary at the beginning of the


movie and home video, demonstrating the difference between the
quality of theatrical sound now and the new SONY/PSDMS sound.
This does two things. First, by demonstrating the difference in
quality of the new sound, you reinforce in the audiences mind that
it is much better, which as you will hear, there is little doubt.
Secondly it reinforces in the audience that Sony truly is a pioneer
of advanced innovative technologies.
In addition to the commentary, Sony will receive credits on the film,
ie. SONY/PSDMS. We will include in the copyright agreement that
Sony equipment must be used to be SONY/PSDMS.

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Sony's name will also be strategically placed throughout the film.


This may be done in the form of billboards, advertisements, or
Sony equipment being utilized.
A commercial may be developed for n/ promoting both the film
and Sony's contributions to advanced audio techniques in the film
industry. This could be done as a joint venture between Sony and
the distribution company for the theatrical and video exhibition.
Inside every video tape that is sold, a coupon may be placed to
promote Sony products.
A full line of quality equipment may be SONY/POWER STATION
labeled for consumer use to enhance marketability of Sony
entertainment products.
Sony Video Software Corporation will receive right of first refusal
on all contracts for video and theatrical distribution. We will allow
Sony a preferred 5% margin under any other distributor for a
competitive edge.

TIMING
Timing is crucial in a project that touch so many different
areas.

MARKETING1DISTRIBUTION
Most of the industry by their own admission is at least two years
away from an effort to upgrade the sound in movie theatres. With
the SONY/PSDMS system, other companies may adapt easily and
economically to produce products with digital movie sound. With
companies adapting to this process, the future should see the
prominence of the SONY/PSDMS insignia much the same as you
see the Dolby insignia today. This will act as a constant reminder

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to the public that Sony truly is a pioneer of advanced audio visual


technologies.
Sony will receive exposure in the professional market place by
having the SONY/POWER STATION equipment used in theatres
and studios to produce the SONY/PSDMS sound.
The video industry is a 56 billion dollar industry that is in need of
product. When you look at the potential for a product that will be
one of the first feature films to compliment the fast paced
VCR/Stereo Entertainment components, with a musical score that
may have enough merits of its own, you have an amazing potential
for distribution.
The Digital and Disc Industry has proven to be the future standard
for recording and playing. Because of the relative newness of the
digital format, there are more people who have yet to experience
the digital sound. With the high exposure that will come from this
project, this could be the first time ever people hear digital. How
many people? 1 - 10 - 50 - 100 million?
What will be their first reaction? I need to buv a Disc Plaver!
Who's name will they think of first? SONYIPSDMS!

PRODUCT DEVELOPMENT
Bongiovi and Evans at Power Station have developed a
revolutionary hybrid mixing console to penetrate the video post
production market. This console was developed to enable
engineers to produce high quality audio tracks for the film industry
as well as the recording industry. This new console utilizes an
automation system that can be used by both industries. This new
console is especially atractive to the film industry, as it will greatly
reduce production costs since mixing costs in a recording studio
are much less. At present the console that is being used is a
bastardized system that utilizes components from many different
pieces of equipment, from a number of different companies, of

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which Sony is one. Because we already have a working model of


this console, it would take very little time for a finished product to
be manufactured that could carry the SONY name.
The other piece of equipment that is essential to the PSDMS
process, is the box that enables the laser disc to automatically
read the synchronization track encoded on the film. This piece of
equipment can be produced at an extremely low cost. It is this
low cost and the fact that the theatres will not have to replace their
present projectors that make digital movie sound a reality in 1988.
We feel that with consumers demanding the same quality audio at
theatres, as they have become accustomed to with their home
entertainment systems, theatre owners will have little problem
investing the nominal amount of dollars involved, to upgrade their
theatres for digital audio. This investment could be as low as
$1000. With the cost being so low, the distribution company may
want to consider bearing the burden of this cost, if the theatre
owners agree to show Bongiovi's next three films.

FINANCIAL STRUCTURE
SONY will commit four million dollars for the production of
Bongiovi's film to be released in 1988.
We would like SONY to commit fifteen million for three to four
future products that will follow the same format as the first, so that
Bongiovi and SONY will position themselves as the pioneer and
leaders in the industry. This will not allow competition to gain
access to the marketplace until we are all firmly situated and
profitable.
Sony will only pay for expenses to produce 60 second spots.
Tony and Power Station will utilize any and all services to help
produce the spot and will allow reimbursement for only true costs
with no mark up including all of Tony's time which will be free.

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Power Station and Power Productions I will receive a negotiated


percentage from all revenues generated from the merchandizing
campaign of the SONY/POWER STATION products and the sale
that may result to other film studios utilizing Sony/POWER
STATION equipment in the PSDMS System.
We will receive four deluxe entertainment systems - Television,
VCR, Stereo, Etc. that is top of the line to help during the
production of the film.
The purpose of the above and all aspects of this Proposal is to let
the separate entities involved maximize their profits for their
respective talents; Bongiovi in film and music production and Sony
in manufacturing and distribution of equipment and merchandise
and later video and film distribution.

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I THE MIGHTY YEN AND FIERCE COMPETITION ARE FORCING IT INTO NEW MARKETS

here he is, sitting on the floor of


his office with three remote controls in his hand, listening to a
Beethoven symphony a t high volume.
He recorded the symphony from a
broadcast of a recent Vienna Philharmonic concert in Tokyo, and now he's
putting the tape to good use. As much
as he likes music, Akio Morita likes trying out new stereo gear even better.
Morita is 66, and the last flecks of
black long ago vanished from his silver
hair. Although he's spending less time
@ these days in his cluttered, wood-paneled
chairman's office a t Sony Corp., it's
" clear
that Morita still provides much of
64 BWSINES W

E 1,1987'

the spark that has made the company


synonymous with the success of postwar
Japan: innovation, shrewd marketing,
and quality. As executives repeatedly
dash in for consultations, Morita patiently explains why one set of speakers he's
checking out doesn't quite have the Sony
sound.
Sony. The very name speaks volumes
about the company. It comes not from a
Japanese word that foreigners might
find W u l t to pronounce, but from
sonus, the Latin word for sound, fine
tuned for Japanese tongues. The name
symbolizes the company's origins in its
pioneering tape recorders and transistor

'

radios. I t also has come to signify the


international orientation among so many
mightjly successful Japanese companies.
Some 70% of Sony's sales come from
outside Japan.
~
D DOWN.
E
Recently, though, Sony
has become one of the most visible symbols of trouble in Japan. Like other Jap
anese companies in businesses ranging
from autos and steel to electronics and
computers, Sony's world has been
turned upside down. The dramatic rise
of the yen has cramped its ability to
compete in export markets. Protectionist
sentiment is growing in the U. S. and
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back like never before. Far East competitors, such as Taiwan and South Korea,
are exploiting their lower costs, and
U. S. and European companies are
achieving efficiency gains and improvements in quality.
The high yen--endaka in Japaneseis slamming the nation's exporters two
ways. Foreign competitors with costs d e
nominated in dollars or French francs
have more room to undercut Japanese
companies on prices, and a dollar's
worth of sales is worth less in yen. Measured in dollars, Sony's U. S. sales rose
24% last year. Measured in yen, they
were down 11%. "The falling dollar has
produced a nearly 50% tax on us," complains Morita.
Overall, the numbers tell a disappointing story. Worldwide sales slipped ?%, to
$82 billion, in the fiscal year that ended
last October, while earnings from operations fell a stunning 75%. Earnings declined another 56% for the five months
ended in March from a year earlier.
Archrival Matsushita Electric Industrial
Co., by contrast, endured a more manageable 44% drop in operating earnings
last year.
For Sony, endaka is like a drought
that follows a plague of locusts. The
challenges facing Morita and his handpicked president, former opera singer
Norio Ohga, have become even more
daunting than they already were.
BETA ~ O C K Competition
.
m consumer
electronics is brutal. After coming up
with such hits as W i n TVS and
Wallanan tape players, Sony watched
the hottest market of the 1980s,pass it
by. The company dung to its Betamax
videorecorder fmmaturhile +hp
the world switched to VAS. That s
s
was costly, and the experience helped
embolden competitors. They no longer
wait to see whether Sony's innovative
products suceeed. Rivals that took about
two years to come up with their own
U. S. versions of the Walkman now r e
spond to new Sony products in months.
And the rising quality of competitors'
products has narrowed the advantage
that once permitted the company to
build a successful advertising campaign
around the simple phrase: "It's a Sony."
To make matters worse, some of the
most troublesome competitors are in
South Korea or other Asian countries
where costs are lower.
Sony has fought back. Shortly after
becoming president in 1982, Ohga set a
goal of reducing Sony's dependence on
consumer electrbnics by getting 50% of
sales from nonconsumer products by
1990, compared with 15% a t the time.
Ohga has also served notice that executives a t Sony factories must cut manufacturing costs beyond the 10% annual
reductions of recent years. 'We need
quantum leaps in cost reduction," he

...
AND DlVERSlFlCATlOH
...ERODES
A STROW6 YEN
IS OFF SCHEDULE
EARNINGS.. .

'

35

- - - -

10-

'0

- - - - -

NONCONSUMER PRODUCTS
AS PERCENT OF TOTAL SALES

'82

'83

'84

'85

'86

J
DATA. M l l Y CQI.

says. To reduce its vulnerability to fluctuations in the yen and to become more
responsive to its customers, Sony is expanding its substantial manufacturing
operations overseas. And Sony clings almost defiantly to one. of the company's
most distinguishing characteristics: a research and development budget that
amounts to about Wo of sales. Rival Matsusfiita spends only 4%.
Even for a company as innovative as
Sony, the changes are not coming easily.
"Our people are working very hard,"
says Morita. And all 'that hard work is
carrying Sony into some unfamiliar territory, where the risk of missteps is
J

high. The company's push into nonconsumer areas, such as computers and image processing, has been such tough going that Sony will not meet its timetable
for diversification.
Other changes Could be even more
traumatic. In some areas, Sony is abandoning its time-honored, go-it-alone philosophy. It is sharing its technology with
other companies, for example, in an effort to create industry standards for
new products and to avoid another Betamax. Sony is also becoming more of a
street fighter. It is pushing harder for
larger shares of the markets for products, even if it means paring profit mar-

2
8
e

$
k

3
-1

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the company has avoided any serious


damage from the cross-fire between Tokyo and Washington. Its semiconductors

pany, which has 701 employees, is one


among a host of small regional s&
brewers in Japan. Morita & Co. also
makes miso, a fermented soybean
paste used in soups and sauces, and
shogu, or soy sauce. Under the management of Kyueaemon Morita, the
business provided a comfortable life
for his son Akio and three other children in Nagoya, an industrial city 224
m i southwest of Tokyo.
As the eldest son, Akio was expected
to take over Morita & Co. Instead, after World War 11, Morita, then 25,
threw in his lot with business novices
Masaru Ibuka and Tamon Maeda to
start Tokyo Tsushin Kogyo, or Tokyo
Telecommunications Engineering Co.
Unable to get a bank loan for their
struggling company, the trio turned to
Akio's father, who repeatedly provided
money through Morita & Co. in return
for stoek in the new venture.
AT worn r e ~ o ~
~ TaK evolved into
Sony. And Morita & Co., with Akio's
brother Kuzuaki a t the helm, has seen
some modest transformations of its

chief are legion. Even though Congress


in April rejected a oneyear ban on the
ultrahigh-fidelity digital tape recorders
recently introduced in Japan, legislators
are likely to accomplish the same objective by other means. Congress is dawdling over legislation to require that the
new products be equipped with devices
that prevent them from duplicating
tapes or records, a provision sought by
the recording industry. Richard L.
Sharp, president of Circuit City Stores
Inc., isn't expecting digital tape machines to be in his stores for a t least a
year, as Sony and other manufacturers
await a clear reading on the legislation.
Despite Sony's woes, Morita is as eager and enthusiastic as ever. He manages to sound upbeat about both the
company's functional-looking, high-performance Profeel Pro TV,which is selling well, and the 8mm handheld video
camera, which is struggling. "This year
we will recover our profits, and next
year will be a much better year," he
says. Most analysts agree that Sony has
a t least halted the slide that has

COVER STORY

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-

--

- -

ers, and by the time he left for Berlin to


study voice, Morita signed him on as a
consultant. After rebuffing several entreaties by Morita to forsake his opera
career for a full-time position at Sony,
Ohga finally relented in 1959. Before b e
ing named president, however, he served
a 23-year apprenticeship that included
running Sony's tape recorder division
and a record company joint venture with
CBS Inc.
ow THE STUMP. Ohga's growing authority allows Morita more freedom for the
ambassadorial role he loves so much. He
spends about a third of his time a t Sony
these days. The rest is devoted to trips
overseas for such things as speechmaking or promoting his book, Made in Japan, and to his ceremonial functions in
Japan. Last year he became a vice-chairman of Keidanren, the Japacese federation of economic organizations.
For all his outside activities, Morita
still makes sure he gets involved in the
crucial decisions a t Sony. When it came
time to price the portable compact disk
player, for example, Morita decreed that
it be priced a t less than 50,000 yen,
about $200 a t the time. Even though the
player cost more than that to make then,
Morita correctly anticipated that the low
price eventually would generate enough
sales to provide the volume production
that would trigger economies of scale-and profits. The episode shows how
Sony is now pursuing market share
more diligently. I t is also an example of
how Sony is responding to its experience
with Betamax, the world's first home
videorecorder. This high-profile product
laid bare the company's strengths and
its weaknesses.
As conceived, Betamax was a classiciflustration of Sony's founding philosophy of looking for new markets where
bigger, wellestablished companies were
not a threat. The company correctly
foresaw the immense latent demand for
a machine that could make and play
back home videotapes. But then it ceded
the market to others by refusing to yield
when the VHS format, -first developed by
Victor Co. of Japan, provided longer r e
cording times and gradually became the
industry standard. Sony still insists that
its Beta recorders provide a superior picture. But a shrinking number of customers-currently about 5% of all buyersare buying Beta.
MlDuFe CRISIS? Some analysts think Betamax goes a long way toward explaining the new directions a t Sony. "The
Beta experience was so searing, so
threatening, that it forced a major revision in the way the company positions
itself," says James C. Abegglen, a Tokyo-based management consultant. One
example: Sony has relaxed its tradition
of sticking to the expensive, high-profit
end of the market by coming out with a

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ing," says Neil Vander Dussen, president of Sony Corp. of America.


The efforts in the U. S. and around
the world are producing some pieces of
Sony's vision of the future. Sony was
the first Japanese company with a powerful 32-bit desktop computer, which is
the heart of its engineering workstation.
It has quickly become a major producer
of full-feature telephones in Japan. Sony
also has taken the lead with the 3%-in.
floppy disks and drives that are bidding
to replace 5%-in. disks as standard
equipment on computers.
Perhaps the most impressive marriage
of video with the computer is what Sony
calls interactive video. Sterling Drug
Inc.'s Winthrop Pharmaceuticals unit
uses a van with a customcrafted version
to provide simulated demonstrations of
how its products work. The system lets
a doctor "treat" a patient with heart
failure. The doctor sees his patient going
to the emergency room, while the system provides the patient's case history
and vital signs. The patient's recovery
depends on the doctor's response to onscreen questions and choices.

one of the reasons

sales, executives now concede their time


ers of the disks themselves.

sharing technology and

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Such a move would send a strong signal that Sony has reached a new, more
mature phase of development after riding the crest of Japan's postwar economic miracle. In essence, Sony's tradition of
searching for gaps is another way of
seeking market niches-a classic approach for young companies. To keep
growing, bigger companies must also
learn to defend their existing markets
while broadening their product line.
Mastering new skills is never easy. But
Morita, now an inveterate skier, didn't
even try the slopes until he was 60.
There's no reason Sony can't accomplish
a similar feat in the business world.

against the dollar since September, 1985,


Sony was able to raise prices only about
15% in the U. S.
Moving plants overseas is only the
first step. The more difficult task will be
to integrate planning and research and
design internationally, too. But if an international staff is any measure, Sony is
well along in the integration process. Of
7,000 employees in the U. S., for example, only 150 are Japanese. Sony, virtually alone among Japanese companies, has
stuck to a policy of giving the top job in
its foreign operations to a local national.
Before long, it may become the first major Japanese company to name a foreigner as a director. A leading candidate
is Jack Schmuckli, the head of Sony's
European operations.

a strong yen. Even though having large


overseas sales makes Sony more vulnerable than most Japanese industrials, it is
already among the most international of
companies. Foreigners own 23% of its
stock, which is traded on 23 exchanges
around the world. Sony also moved early
and fast into local manufacturing. It
makes TV sets in Bridgend, Wales, as
well as in San Diego. It makes compact
disks in Terre Haute, Ind., and in Salzburg, Austria. All told, 20% of Sony's
manufacturing is overseas. It aims to
increase that to 35% by 1990. Such globalization will help Sony earn its revenues
and pay its bills in the same currency,
rather than paying workers in yen and
logging sales in a depreciating dollar.
While the yen was appreciating 50%

By Larry Armstrong i n Tokyo, with


Christopher Power and G. David Wallace
in New York

OHSOWE: EVERYTHING FROM A $32 BOX tO A $450 RECORDER WlIM-T

f all the problems besetting


Sony, the two most frustrating
are how to deal with copycat
competitors and how to mute the imp a d of the rising yen on manufadur
ing costs. But Sony has shown it can
rise to the challenge. Its experience
with the Walkman is proof of that
After Walkman's debut in July, 1979,
Sony was not about to bask in the new
product's almost instant success. Within months, Sony audio engineer Kozo
Ohsone was heading a team trying to
come up with a better Walkman. Ohsone carved a block of wood that was
25% smaller than the okiginal design
and gave it to his engineers as a model.
The engineers grumbled, but they
buckled down. By February, 1981,
Sony was shipping thousands of Walkmans that were smaller, sounded betr
ter, and had nearly 50% fewer parts
than Walkman I.

SOUND

Sony continues to dominate the $1.3


billion buslness with a 30% share of
personal tape players sold worldwide.
The reason: "It has been more inventive than the others," says stock analyst Alan BeU of Salomon Brothers
Asia Ltd. Walkman firsts include
Dolby noise reduction in 1982 and a
rechargeable battery in 1986.
Sony's inventiveness shows in more
than technology. To keep Walkman
fresh and to make it appealing to more
customers, Sony churns out new models to suit virtually every taste and
wallet. So far it has introduced about
100. Headed for the beach? Take the
solar-powered, waterproof Walkman.
Tennis, anyone? Here's an ultralight
radio-only model that attaches to a
sweatband. Want concertihall sound?
Slip on the oversize headphones of a
deluxe Boodo Khan. In the U.S.,
where Sony has sold more than 13 mil-

lion of the 27 million Walkrnans it has


made, prices run from a plain-vanilla
playback-only model for $32 to a
souped-up $449.95 version that boasts
tapedeckquality sound and records as
well as plays.
Sony has used its image as a technology leader to gain a hammerlock on
the lucrative premium end of the market. Walkman is the only portable ste
reo offered by the tony L. L. Bean mtalog. Emphasizing that it is "made by
Sony in Japan, like 'Mercedes Benz,
made in Germany"' gives Walkman
"intangible added value," says Ohsone,
now audio group director.
p u n n o FOR KEEPS. All Walkman
products are manufactured in Japan.
And despite the soaring yen, Walkman
production is the exception to Sony's
strategy to move more production
overseas. Even though the soaring yen
squeezed profits, Sony says it still
made money on the $432 million worth
of Waikmans it sold last year. One reason: a decision four years ago to create
a low-price model specifically for the
U. S. That forced Sony to automate
production drastically and design a
new model that cut more than 90% off
production costs partly by integrating
the playing mechanism onto the printi
ed circuit board. The basic $32 Walkman has become Sony's bestiselling
model in the U. S.
Analysts think Walkman's go-go
gears are coming to an end. But Sony
disagrees. "Of the 4 billion people in
the world, we estimate we could reach
600 million," says Ohsone. That may be
an overstatement But then, as long as
Sony keeps gripding out new versions,
there seems to be no shortage of people eager to tune in.
By Amy B

in Tokyo

E5

11 #z

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BUSINESS WEEKIJUNE 1,1987 68
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STATISTICS FOR SONY DEAL


1.

Power Station

1% $1 Million in 1987 in Revenues

I. Bon Jovi Tony's creation

a. Format
b. Mixing
Sold 9 million albums in 6 months

2. Power Station Hiah Tech Award Last 4 Years


Best in World By Peers!

3. 4 5 Grammys in 1987 Recorded there Steve Winwood


Others: Jagger,, B. Joel, Springsteen, Diana Ross, Madonna,
J. Lennon, on and on.
4. Tony

- Multi Track Recording

Defied Theory
Designed Sound Voyeger
Produced Star Wars Album Mixed

5. French Lick MTV may sign Free Promotion


II. Technology
1. First Video, film, tv in digital. All first for full entertainment

2. Kodak and Mitsubish Not till end of Decade

3. Dolby Sony/PSDMS

- $10,000 per license to any tv, film, video, etc.

4. Only mix board that will mix albums/video's

Sell to all recording and film studios $300,000

- $500,000 per

console.
5.

Sony spends 9% of gross revenue on R & D


9% of billions 2 = $180,000,000

6. Put Sony 5 years ahead of strategic plan

Disc players Only 23% of consumers currently own a disc player.


First time to hear for how many?

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Filmpideo
1. 23,000 theaters to sell system

2. First will sell movie and video


Add French Lick

3. Top Gun sold 9 million @ $30.00


$270,000,000

- $60.00 per video

4. Horror International Fihn $20 $60,000,000

Pay N,Cable, N ?
IV.

Commercial 180 Sec Commentary

- $8,000,000 for commercial


Visa Demonstration $2 Million - $6 Million
Sony $4,000,000

Pepsi Paid $8,000,000 60 Second in front of "Top Gun" video.

V. Merchandise Private Label


Power Station Beach Line
In movie, free by original designer and owner

- "Hana Ten" swim wear

Power Station Electronics Line/Sony


Best recording in world

- is it good?

Beach Accessories
Promotion in movie, video,

Sell all of above


Video

- Mail Order, Stores

VI. Sony
I. Needs help

a. Low profits
b. Beta Bust
2. Best name electronics Manufacture

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3. Film and video distribution (new)


4. Willing to work together

a. Share tech
b. Joint venture

c. Horizontal distribution
5. Horror Elements and PIS name already international
Deal would involve:
I. Retail electronics division
2. Professional electronic

3. Film distribution

4. Video distribution

Star Wars $2 Billion in 10 Years from all


revenues

30% 50% = $600,000,000


Tony said 50/50

All costs $4 Million

New Film studio?/with Sony


Deal worth 100,000,000 Now??
Would Kodak or Mitsubish like deal?
Will Sony let this deal go to competition?

No Beta
PERFECT ENDING: Profits and Respect

ereation 4111/87
11:00

'

- 1:00 a.m.

Stan 98%

1% Scott Call Ron Gell


Research Sony

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1% Marcia Sony give 4 million

Raise 15 Million
Call Head of video distribution

Merchandising Hang Ten Off


Kodak
Sony
Difference test visa add in

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Technology

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Beyond the Bijou


SOPHISTICATED FILM TECHNOLOGIES
AND FUTURISTIC FORMATS ARE REDEFINING
THE NATURE OF COHTEMPORARY MOVIE THEATERS.

BY JIM PETTIGREW JR.

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n a world that at times seems defined


by incompatibility, there is one interest which most of us have in common a passion for the movies. And this love
of the cinematic fantasy world shows no
signs of dissipating. Different trends
may appear, such as the VCR explosion,
but upon examining the world of contemporary cinema, one fact becomes
readily apparent - the movies are not
going away. Neither, according to industry leaders, are those esteemed hideouts
of escapism - the theaters.
Though movie theaters are here to
stay, there is a great deal of debate currently going on inside the showcase, or
exhibition end, of the film world. Some
of it concerns topics such as changing
image, and a considerable amount of the
debate relates directly to technology.
The path of events that set the stage for
this situation contains a number of key
elements.
Beginning in the early 1970s. the
movie-theater industry in the U.S.
slowly slipped into what may be called a
technical rut. There were tremendous advances in home-audio technology, but
the exhibition business did not really
keep up.
There was also a trend toward "multiplex" cinema facilities - not an inherently weak mpketing idea - but their
early manifestation didn't prove tenibly
successful. The first multicinemas were
cramped, had very small screens, and
ambient sound many times bled over
from next door.
In the spring of 1977, George Lucas
produced a film that would have a revolutionary. impact on the exhibition industry. It was released to theaters carefully
picked for certain technical standards.
Besides the well-known special effects
and cinematography, Star Wars boasted
a soundtrack in Dolbya stereo. It was
played over an advanced audio system
filled with new designs, including a
"subwoofer" that
-

The film also brought fresh attention


to the large-frame 70mm format. This
expensive but vastly superior process
had been used in earlier landmark
movies (Lawrence of Arabia, Patron)
but had fallen out of favor in Hollywood.
With a new audio standard established
by the Lucas blockbuster, the cinema industry moved into the 1980s - and a
whole, new set of business realities,

coupled with a feverishly expanding


foreground of technological develop
ments.
Clearly, the industry had to adapt and
change. The situation was brought to a
head by the growth of home video, but
that trend was only a part of the whole
arena. Faced with this challenge, the theater industry began what is now a recognizable set of changes to "remainstream"
itself. (The latest studies, incidentally,
show a kind of reverse effect from the
home-movie phenomenon; it's actually
sending patrons back to theaters, seeking
favorite titles in full-blown film environments.)

Fromthtprojtcbknroomtothcbox
oflke, technology is IntWating
the d m house. Developed by
Douglas Tnrmbull, opposite, Showscan@,
equipped with a c o m w e d motion
control system and 70mm fllm, amazed
audiences at Expos '85 and '86. Above,
computerized ticketing and central-data
systems, like thou dewdoped by Pacer
Coqxxaion, are also coming into
the pkture.

SKY May 1987 23

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Page 124 of 221SYSTEMS UNDERGO RIGID


ALP TWX-INSTALLED
GERIIFICRPC6N APCD ARE THEN TESTED EVERY SIX
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Zl33 Oak Industrial Dr. N.E.


Grand Rapids, MI 49505
Ton-Free 1-800-253-0882
I'd k e to know more about

Today, the theater repositioning procAccompanied by an advanced audio


ess takes a number of poses, including
design from THX Sound Systems, a
division of Lucasfilm Ltd., an entire film
better s o u n k
_sensible design,
rests on a platter and feeds through a -cleaner halls. a y m overall push to
projector without the projectionisthaving
reenergize the "experience" vital to
to use two ~rdectors.
moviegoing. "Theater companies are
building at record numbers, by the way,"
notes Glenn Berggren, vice president of
of Azusa,
Optical ~adiationCor~oratidn
California, one of the world's largest
suppliers of theater equipment. "They
want to make them better, not only as operations are concerned - breakdowns,
etc. -they'd also like to have an effective
theater that lets the public know they're
modem, better than the ones built five,
ten years ago."
Theaters are now utilizing computerized ticketing and central-data systems, such as those developed by Pacer
Corporation of Bothell, Washington.
The integrated Pacer system instantaneously gathers all sales data for the cashintensive business, compiles it, and the
information is uploaded nightly by automatic modem to central offices. "Our

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24

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ADVANCED MEDIA GROUP

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system opens up the possibilities of credit-rard and off-site ticket purchasing,"


s Keith Myers, Pacer's marketing
v
president. "This may reach a whole
different segment of affluent consumers
- r-d even influence the kind of movies
tt are made. "
nis trend is well characterized by
numerous showcases across the country.
@
example is the General Cinema
c, plex inside Merchants Walk, a north
4-.mta mall. There, Cinema One features an advanced audio design from
T < Sound Systems, a division of
L asfilm Ltd. in San Rafael, Californla. "Patrons don't really articulate it,"
exvlains theater manager Steve Crisp,
s' ~ i n off
g the loudspeaker system and
lrily insulated walls, "but they know
wnat they want in a film experience
torlay, and sound is verv"-i
6 e healthy sign that experts point to
i: le influence exerted by firms such as
THX Sound Systems and the Theatre
A1;:nment Program (TAP), both compo7 ts of Lucasfilm Ltd. All THX-ins led systems undergo rigid certification and are then tested every six months
tc nsure quality adherence. TAP vigora ly encourages high standards and
d rogue between suppliers and theaters.
"We are targeting theater managers
a personnel with seminaft," says Kim:t ly Strub, marketing director of the
1..:ater Operations division at Lucasfilm. 'These will help them answer quest IS about film presentation - soundt~ :ks, how they're made. Lots of times
p o p l e will have questions about how
films are made, and the only people that
t' y have to turn to are the theater pers ~nel.We're trying to make sure they
are informed and can answer public
ollestions - and also realize how import t their roles are in the film chain."
Zurrently, amid the film exhibitors'
concerted push to modernize, there is an
aP-elerating debate in both the equip
r nt and showcase fields about what
t hnical form the near future will take.
The issues must be set in context within
-rowing array of spectacular new tech1 ogy, film formats, and even new apI laches to the filmic experience.
Two of the central topics now being
(' Sated with increasing fervor in the in-

'

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25

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003112117809 Page: 129
cial-effects possibilities - as well as de-

ONE SYSTEM U'PELIZES


7 O M M FILM, A VERY LARGE
SCREEN, A H EXTREMELY
FAST F I L M SPEED AT 60
FRAMES PER SECOFJD, AND
DIGITAL SOUND.

dustry include film speed, expressed in


frames-per-second (fps) and film format
(frame size, coupled with larger
screens). A third topic is the increasing
impact of high-grade video and its eventual manifestation - high-definition television (HDTV) - and how the two industries will affect each other.
For decades, the standard film speed
in the theater industry has been 24 fps. At
this srxed. a relativelv low ~roiectionlight ievel' must be iaintainkd iten-16
foot-candles) to prevent an annoying
sensation called "flicker." There are now
several proponents who are urging that
film speeds be raised, so that higher light
levels may be possible. Faster fps rates,
they point out. also make for richer imagery. better color, and heightened spe-

II

Page 126 of 221


creasing industry headaches such as
"comet-tailing" and blurring.
The 35mm filrn format has also been
the industry standard for decades.
Numerous industry leaders are quick to
point out its obvious obsolescence. The
70mm filrn size, they note, offers much
more than a 100-percent improvement
in cinematographic possibilities. "Most
people, including large film manufacturers, do not really understand how much
detailed information can be put on 70mm
film," asserts Optical Radiation's Berggren, "and shown back on the screen."
A central point. in an overall sense,
that brings these debates into focus is that
there is an already-existing arsenal of
nevlt cinema systems. Each camp points
inarguably to the future, and each system
is now offering spectacular new cinematic exrxriences.
s o h e of the new formats first debuted
in what the industry calls "specialvenue" theaters - noncommercial, museum, and other educational halls. Currently the granddaddy of these is the
IMAX@/OMNIMAX@ system, now
amazing audiences at Washington, D.C.'s
Smithsonian, Boston's Mugar OMNI

Date Filed: 11/02/2015

Theater at the Museum of Science,


Chicago's OMNIMAX Theater (located
in the Henry Crown Space Center at the
Museum of Science and Industry), the
h
OMNI Theater at the Fort W o ~ Museum of Science and History, and the Science Museum of Minnesota in St. Paul among others. Several of these "space"

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26 ADVANCED
SKY May 1987
MEDIA GROUP

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leaters were designed by the architec~ r a lfirm of Hammel-Green and Abrahamson of Minneapolis, which esti~atedthat 20 million people attended
IMNIMAX theaters around the world in
985.
The heart of the IMAX system is a
nique projection approach; the large-

Page: 130

Page 127 of 221


format images are projected through a
fish-eye lens onto a 76-foot dome, which
washes the screen with an enormous picture. The screen is tilted toward the audience at a 30-degree angle, which creates
a stunning wraparound effect.
Showscan@ is another radically new
film system with breathtaking sensory
experiences. Developed by special-effects wizard Douglas Trumbull (Srar
Wars, Star Trek; director of Silent Running and Brainstorm) Showscan has
amazed audiences at Expos '85 and '86;
the Vancouver theater in Canada remained open after the fair, and 50,000
people saw the Showscan presentation in
January of this year. The corporation is
currently opening special-venue theaters
in Los Angeles and several other cities in
the U. S., Australia, and New Zealand.
Showscan utilizes 70mm film, a very
large screen. an extremely fast film
s g e d at 60 fbs, and digital sound. While
developing the process, Tmmbull ran
extensive tests at various film speeds,
utilizing participants at California universities. For several years in the 1970s,
Tmmbull was also head of Future General, an experimental department at
Paramount Studios.

Date Filed: 11/02/2015


Atlanta's independent filmmaker,
VanDerKloot Film and Television,
extensively utilizes computers and
high-grade video in current
production work.

Even though Showscan is currently


confined to special-venue theaters, the
corporation clearly has plans to move
into the box-office market. "We don't
have an announcement yet, but we're
very close," says marketing director
Cindy Porter. "We're confident that
when an announcement is made, a feature film will be out within two years."
Currently, the leader in the race to
bring stunning new technology into the
first-mn film market is FuturVision
3*,
a division of FuturCinema Inc. in
New York. The brainchild of former
Kodak executive Eric Knutsen, this process utilizes large-screen (wall-to-wall,
floor-to-ceiling) 70mm, a sophisticated
digital audio system, and runs at 30 fps.
For several months, Knutsen and
FuturVision have had ties with Loews, a

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May 1987 27

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a BIG

Page: 131

Date Filed: 11/02/2015

SELLING
TO FIRST-RUN THEATERS IS
Page PQIHT
128 of 221
&OMPARATIWE EASE OF COMPATIBILITY AND
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(404)457-1905

major theater chain (his system is now


being showcased at Loews Tower East,
a prestigious Manhattan screening
room). At presstime, Knutsen was preparing to announce an agreement with a
second major chain.
Besides its audiolvisual sorcery, one
of FuturVision's big selling points to
first-run theaters is comparative ease of
compatibility and cost-effectiveness.
Working with Optical Radiation Corp.,
Knutsen has developed his system so that
it can be integrated into existing theater
hardware - and still offer the dazzling
filmic experiences that all aggressive
chains are now scrutinizing.
One aspect of FuturVision is digital
audio, said to be comparable to CD q ality (actual CDImovie presentations
+stillin the future). With this
daudio is taken from the
film and fed to a Knutsendesigned processor, which then sends audio signals to
an upgraded house system.
"Now," Knutsen says, "the projectionist can walk into the booth and
flip two switches. One automatically
changes screen brightness from low level
to a much higher level for our film, and
at the same time changes film speed from
24 to 30. The second switch automati-

I'

cally bypasses house audio and goes to


our processing equipment. So, there's
virtually no set-up time."
until recently, the film-production
community and the exhibitorltheater
equipment industries have viewed each
other as barely tolerable neighbors,
forced to get along, but with little meaningful dialogue between the two camps.
Now, though, in the face of this starburst
of new technology, the two industries are
working together, insiders point out, to
achieve the common goal of a truly
realistic cinematic experience, and the
subsequent fiscal rewards.
Bill VanDerKloot, owner of VanDerKloot Film and Television in Atlanta,
one of the premier independent filmmakers in the south, has a keen eye on these
and other developments. His firm extensively utilizes computers and high-grade
video in current production work.
"Today," he points out, "stereo soundtracks are mandatory, even for lowbudget films, not the case just ten years
ago. People have become very sophisticated in their technical tastes for film.
"I am just incredibly excited about
what the future has to offer," VanDerKloot concludes. "The more like reality
we can make the dreams that we create
on film, the more fascinating and fantastic films will be."
Contributing editor Jim Pettigrew Jr.
is based in Atlanta, Georgia.Q

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MEDIA GROUP
28 ADVANCED
SKY May 1987

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Management Group, LTD


w

m w m p w

Oregon Pike

Lancaster, PA 17601

717-569-5555

Table O f Contents

Section I

~inancialManagement

Section I1

The Project

Section I11

Distribution and Structure

Group

Section IV

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Power Station w a s formed in 1977, in partnership w i t h Tony Bongiovi and


Bob W a l t e r s . Pcrwer Station, within a short period of time established
i t s e l f as the premiere reconhg f a c i l i t y i n the world. The studios
success t o a larye degree is due to Bongiovils tmmerdous creative talents
in the fields of studio design, prduction and en.-t
The a b i l i t y
t o anticipate what the public a t larye wants to hear and to create a
a highly marketable product.
format that will p&ce
Bongiwils creative genius became most evident with his recent success
producing t h e band *IBonJoviu, A f 3 x years of work dweloping t h e i r
t a l e n t and structuring the format f o r their music, ItE3on Jwit*rapidly
became one of top bands in the world.

-\
\.-

Bongiwils most recent project is a bard called I1French LiW, which he


brought into the studio approximately two years ago. You may have heard
French Lick's music in Ron Hawardls p-ction
of Gung-Ho. French Lick's
music and t a l e n t have been developed alo~lgthe s a m e format as "Ban Joviu
and have recmtly been s
h
e to the major r
e
c
o
m labels.
Contracts should be finalized w i t h QuantumMedium in a few weeks.
Quantum M e d i u m is a division of MCA, owned by the same people t h a t own
EWV. Fren& Lick is wholly owned by Power Station, along with t h e i r f i r s t
album, which gives Bongiwi t h e a b i l i t y to use any and all the songs from
the album in the mwie.
By placing the bard in t h e movie and having the music score written by the
band, w e are able t o take advantage of marbting potential mnnally not
available ta other prductions. The music video f o r the band w i l l be shot
a t thedtime as the mavie an3 w i l l primarily be scenes from the
movie. 'Ihe release of the video w i l l be +.inwl to pramate the opening of
the movie. ?he release of the songs off the first album w i l l also be
coordinated to pramate the mwie. W fully urdershnd t h e marketing
potential the band brings to the project, picture what gross receipts a t
the box office would look like i f I*BonJoviI1 were appearing in a movie
this year (Any movie) If F'rench Lick does one tenth as w e l l as Bon Jwi,
this mwie is a -teed
hit.

During Bongiwi ' s work on " S t a r W a r s 1 * , **ApocalypseNaw" and llGung-holl, he


w a s able t o rclake many of the contacts necessary to form t h e extremely
talented group of artists that are essential f o r a production t o be
successful.

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peters: ~irector/Writer/Prducer
has directed many programs such as t W a t t Houston", "Falcon
C r e s t t t, tfGigneyand L
a
w
, tWisfitsw, ~tBerrengersn,and tlRemington
t h a t convinced Tony t o
SteeleN t o name a few. The film Ehrbara dire&&
hire her for this pxduction w a s tWunmoids Frow The Deeptt. Humanoids was
made i n 1978 for $ 980,000 ($ 20,000 d e r budget and four days ahead of
and foreign theatrical
schedule) and grossed aver $28 million in d-ic
Sales. Tixis w a s during a period in time when the video market w a s in its
early stages of d e v e l w t . A film released today t h a t would gross $ 28
million in 1978 dollars has even greater potential for a much higher gross
with the strong video market that is available naw. What impressed Tony
the
w i t h Baxbaratsdjrection of Humnoids w a s her a b i l i t y to bring a
high degree of quality to a film on such a l i m i t e d W g e t .
Peter Hock: Stunt ~ ~ t o r / A c t o r / s & m h m
Peter8s d t s include films such as, Trading Placestt, gtStepford
Bustersw, "FX', and a host of other Films,
Wives", 'To K i l l A Capw, "Ql&

Broadway, - i d s

p,
L

ard Telwision S h c m .

There are many factors which contribute to a projects success. I f you


w e r e t o take a m c s section of the movie h3ustry t o find which types of
projects w e r e most likely to s u m , yau wauld find that movies in the
two t o four million dollar range have much greater chances of success than
movies in the t a t o f i f t e e n million dollar range. The reasons f o r t h i s
are qui,. simple. A movie in the two t o four million dollar range is a
high enough budget to pmduce a quality film h x t limiting the r i s k t o the
investor since it needs less of the market share to p&ce
a profit.

Horror mwies, frran the investors point of view are the safest type of
movie to finance. H o r r o r mies have an almsst cultist fo1lmi.q.
The
type of audience that attenl homr mies rarely w a i t to see what the
critics have t o say about the movie. mere is a fascination w i t h gore
t h a t this audience would rather see than have described t o them. The
overseas market f o r movies of this genre are tremendous. In almost a l l
cases the gross revenues fram the theatre, w i l l be greater overseas than
in the damestic (US and Canada) market. ?his especially holds t r u e f o r
horror movies.

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O v e r the last few years, w e have h e n seeing a trend for movies t o have a
much heavier music score than in the past. The feelings that can be
invoked in an audience from audio are sometimes as great o r greater than
the visual aspects of a film. W i t h Bongiovi's experience and past track
record, w e are assured of having one of the best quality sound tracks t o a
movie ever M e . 'Ibis production could very well revolutionize t h e movie
inctustry i n t h a t this will be the first time that the sound track w i l l be
t o t a l l y digitized fram the set to the theatre o r home video. What this
means is that t h e quality of the sound, which is typically extremely poor
in a m v i e theatre o r hone video cassette, w i l l now be tremendously
crisp. T h i s new m i e sourd will be similar t o the quality you would
aqect froan a laser disc. Normally the costs involved t o produce a m i e
wit31 this type of s a n d track would greatly increase the budget to a point
where the project would have an increased element of risk. With Power
Station, w h i c h W d y has in place state of the art equipnmt, some of
w h i c h can be found in only one o r two other studios in the world, this
sourrd track can be produced f o r a fraction of the costs that another
produckion ccanpany would have to pay. l h i s greatly reduces the r i s k t o
the investor to be able t o prcduce state of the art audio at a fraction of
the costs.

It is a very natural progression f o r a recording studio such as mer


Station to evolve into an e n t e r b b m m t cmplex w h i c h includes the
production of films. Pcrwer Station currently has financing in place f o r a
$ 3.5 million video mix studio t o be fsuilt next t o the recon3i.q studio.
D i s - t r i l p t i o n companies are constantly looking for new sources of product
to market. With Bongiovils track record in the entertairrment industry,
any p&ct
that mies t h e Bongiovi label should create a bidding
silxntion w i t h t h e distributors.
Advanced plblic relations w o r k is currently being done t o set the s t a g e
for negotiations with t h e distribution campanies. l l B i l l h a r d l t , 'VarieWt1,
and "Box Officetqhave W d y agreed t o do a r t i c l e s on Bongiovi and t h e
nmvie. On April 30, ABC w i l l be airing a radio talk show w i t h Boriyiari
that w i l l air on 2300 stations to a total listening audience of over six
million people. "Fame, Fortune, and Romance" have also agreed t o give
network T V coverage.

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The home video market has rapidly been changing the potential mwie
profits for the industry. A Nighbare On Elm Street w a s made for w e l l
under two million dollars and has earned New Line Cinema more than $24
million a t the domestic box office. I n addition, a f t e r a short video
release, this production has sold over 3 million cassettes. In the past
videos w e r e sold only t o video'rental stores for approximately $70
apiece. Recently the price has been lmered t o expand the market t o the
general public. The video rental stores won't disappear, but they may
became more like record stores that also rent their albums. A l l of this
translates into more profit potential for prcducer and investor.
It is an extremely rare opportunity t o be able to get in on the ground
floor in an offshoot of an already well established entertainment
company. Any investor willing to back this project w i l l have f i r s t right
of refusal on any future projects. ?he pe.rcentages w i l l remain the same
for a t least the first two projects.

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Independently prduced motion pictures are a better investment today

than ever before.

1) Increased Markets: There is much wider distribution of motion


pictures today than ever before (i.e. Pay Tv, Cable TV,
videoassettes, satellite tmnsmissions, etc. )

'Presale' contracts which bind the buyers (i.e. networks, pay Tv,
foreign distributors, etc.) t o specific payments a t a future date,
this insuring return of capital and, in sane cases, a p r o f i t before
t h e film is released.
2.

Investment structure:
The producer and investor form a limited partnership for the purposes

of prottucing one or more motion pictures. The investor receives 100%


of the net p r o f i t s until remupent, after w h i c h the s p l i t is 50-50.
Profit participation of o ~ e s s(actors, director, writer, etc. ) canes
out of t h e p&cerls
end.

The pq3uce.r secures t h e services of a director, principal actors,

and a w r i t e r .
Presale Deals:
The producer can negotiate presale (preproduction) arrangements with
distributors, networks, pay TV, merchandisers, etc. Whereas such
ar~angementscan minimize the downside risk, they can also inhibit

the eventual profitability of the film.


Risk Factors:

It is very difficult to determine exactly how much of a r i s k one runs


in financing a theatrical film. Adequate s t a t i s t i c s are hpssible
t o find. Shannat Services of Los Angeles a four-year-old study w h i c h
revealed that 60% of all f
b released make money. This study,
however, did not include long range TV syndication (foreign and

domestic) revenues, and w a s made before Pay TV and video cassettes


Chemical Bank of New York
reports that they have never lost mney on film financing.

became significant additional markets.


r

' \.

-.

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Another r i s k is the possibility that no distributor w i l l want t o


release the picture. That is why some independent producers include
a provision for distribution financing in their investment
agreemmts. I f worse comes t o worst, producers can distribute t h e
film themselves. (Notable examples are ''Billy Jacktt and ttBenjit'.)
There may be production catastrophes that w i l l delay o r cancel
Producers w i l l carry various forms
pmduction o n e it is under

of insuranoe (including completion bonds) t o a t least repay whatever


funds have already been spent.

If a distribution amaqement has not already been made, the producer

now secures such an arrangement. I f the picture is goad, it is


possible to negotiate a much better deal than could have been done
earlier. On the other hand, the producer could have truuble securing
the kind of distribution commitment wanted. The main factors here
are hcw much money the distributor is willing to c o m m i t to s e l l i n g
the picture, h m much influence the producer can have on the
m r l e t i q ~ m p a i g n ,and the distribution fee. Sanetimes smll
distributors are able t o give more time and attention t o indeperdent
pictures and offer better terms, but the producer may have to provi.de
same - W o n
expexes.
of gmss domestic box office receipts, the exhibitor (retailer)
usually subtracts his fixed costs and then receives 10%. Cut of t h e
ranainjng 90% gmss film rentals received by the distributor
(wholesaler), he usually recoups all or part of his costs plus a
distribution fee of 20-35%, then passes the rest on t o the
producer/hwestor. Terms of distribution deals vary considerably.

Cut

Ebx office reoeipts, however, only account for a part of the


producer/investorls revenues. A s the enclosed figures show, t h e
ancillary markets are a t least as significant as the daoestic theatre
box office. T V syndication, for instance, can continue t o bring in
revenues f o r the next twenty years.
Demand for P r d ~ c t :

TWayts supply comes nowhere near to mtching real demand. A t the


present time, there are over 18,000 theatres i n the United S t a t e s .
It can readily be seen t h a t roughly 400 films produced and rated l a s t
year did not w i n t o m e e t t h e i r needs. Theatres are canpelled t o
show any type of film they can obtain to keep t h e i r doors open.

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To date, independent producers are responsible for 72% of a l l films


mde world-wide. The domestic figure is 62%. The independent

producer has three primary options -r

distribution. These
include the sale of the film outright to a major national
distributor, t h e i r merchandising of the film by the production
who
company i t s e l f , o r the use of smaller regional sub-distsibuto~~
m y promote the film in their respective geographical areas.
Distribution of films often relies on a l l three methods t o one degree
or another.
Another market, television, can consume nearly every film that has
been, o r is presently being produced. If each of the three networks
would show only one film per night, they would need over 1,000 f i l m s
per year. In ks Angeles area alone, there are nearly 10,000 f i l n ~ ~
aired each year in a ambination of local and network viewing time.
Many f i l m s are shown time and time again because there are no new
fibs to replace them.
Today, virtually every film of quality has residual value in
television, either by outright sale o r by t e n n licensing. Tke latter
is preferable since it a l l = the production company to retain
' p of the negative. The t i m e lag between theatre release and
~hasdimini~edfromsev~yearstoanaverageof18mnths.
Hwever, scnne major features such as ffTheWizft have been sold to TV
before completing a full year in theatrical release. The trend seems
to be toward prchase of 'freshf films, and the outlets appear
willing to pay the higher costs involved
I

Because of the great demand and the outrageously ccanpetitive a t t i t u d e


that pemades the networks, handsame deals are being consummated
before the production has been q l e t e d and then, by p-ement
w i t h the producers, hold the film u n t i l it has completed its

theatrical run.

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Breakeven for Limited Parhers:

Based on gross revenues of $ 11,200,000 collected fm 1st and 2nd


theatrical runs
1st run ticket costs of $ 6.00
2nd run ticket

costs of $

5.00

1st Run
50 people per shed

x $ 6.00

$ 300.00 G r o s s per show

$ 300.00 per shaw X 1000 houses

$ 300,000 G r o s s

$ 300,000 X 14 days

$ 4,200,000 G r o s s

$ 250.00 G r o s s per show

$ 250.00 per shod X 2000 houses

$ 500,000 G r o s s

$ 500,000 X 14 days

$ 7,000,000 G r o s s

2nd Run

50 pea~leper show

X $ 5.00

TotalIstm
Total 2nd Run
Total

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Forcast A

Total Box Office G r o s s


Less 15%For Theatres

-----

--

Motion Picture P r o f i t s

Less 30% Distribution Fee

L e s s : Investors Capital
N e t Profit

-$

---------

----

Producers Split @ 50%

--

Invesbmt Company R e t u m
Less : General Partners Split @ 15%

Investors Return

11,200,000

1,680,000

9,520,000

2,856,000

6,664,000

4,000.000

2,664,000

1,332,000

1,332,000

199,800

1,132,200

T h e s e are only proiections and are for informational ~ u p o s e sonly. Any


investment made, based s o l e l y on these proiections would be unadvisable as
actual P e r f o m c e could varv m e a t l y .

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Forecast B
Forecast B is based on a total box office gross of $ 28 million
A film that produces a theatrical gmss of $ 28 million can be expect& to
gross at least that much from W ,Cable and video markets. Depending on how
distribution agreements are negotiated we can expect 50% to be net profits.

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Forecast B

-----------

Total Box O f f i c e Gross


B s 15% For Theatres

$ 28,000,000

--------I----

Motion Picture P r o f i t s ----TpCC 30%

4,200,000

$ 23,800,000

Distribution Fee

7,140,000

$ 16,660,000
T.V.,

Cable and V i d e o N e t --------

$ 14,000,000

Total N e t -------TpCC :

$ 25.340.000

Investors Capital

N e t Profit

----------

4,000,000

$ 21,340,000

m c e x s S p l i t @ 50%

$ lo., 670,000

Invesbent Companiest Return

$ 10,670,000

L e s s :,General Partners S p l i t @ 15%

1,600,500

Investors Return

9,069,500

These are only proiections and are f o r informational txlnxses only. An


invesmt made, based solely on these ~ m i e c t i o n swould be unadvisable as
actual p e r f o m c e could v a r ~sreatly.

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You Oughta Be In
Pictures!
1
I
by Alan Talansky

here's esplosive growth occurring in the motion picture industry, and growth should always be
music to any investor's ears. "But
movies?" YOU say? It's time to put
aside your images of Tinschonrn and
"Heaven's Gate," and to take another
look at an industry with some new,
sound investment potential.
There's risk in any investment, of
course, even in real estate - the investment area on which many firms
originally buiit their reputation and
success. In real estate, it's a matter of
how carefully you assess a variery of
influential factors and how you structure the deal. Motion pictures are
much the same. You've got to look

'

;
j

:I I

fashioned profit: an ideal solution for


post tax-reform era.
The key here is understsnding how
nluch the industry has chsnged. The
tyranny and fickleness of box-office
receipts is no longer. More people
around the world are viewing more
films than ever before, but not necessarily in the theatres. Consider, for
example, that there are only about 300
feature films made every year, of
which about half could be considered
-major.- NOW, compare that with the
number of movies a cable outlet, like
Home Box Office,
shows in a single
day. Eight? Then,
take a look at the
shelves of ytwr l t x ~ l

3.

ucts to be financed, and the second is


the structuring of the deal.
1, selecting the product, success is
usually found in
~ 1 ,
larger the budget in a film, the grcatcr
the fink.
the $50 ,-,,illion
pdted blockbusters and seek out. instead, the more modest undenakings
smaller, ambitious film production sources. A,, excellent exan,ple
is
Island Picture-, a relatively
independent film production and distribution company for which, last

Not quite a blockbustec lslund's "Nobodv's Fool. " s t a r r i t ~ ~


Karannu Arquellr und Eric Roberts, wus a more morlrrute success.
e m with Pulitzer Prize winrringpIrrywnght tkfh Henley wri~ing.Photo
courtesy I S MPictures.

I
ll

:I
I

Success on a shoestring: Producer/director Spike Lee (center) turned


a paltry $ 175,000 procluctiun bltdget for "She's Gt~ttuHum It' itklo u
$7 milliotr grcw.itr(:suprise hit. Co-stun-jolrn Cutrurlu Terndl (left) cord
Redmotrl H i c k (n(:/rt, wiill i r e utz tire w t PMto courtesy Forty k e s
and a Mule Filmworks.

When the motion picture industry


was first examined as an investment
, vehicle a few years ago, the expecta1 tion was that there was potential for
tax deferment. What was found, however, was a surprisingly rich source of
income for investors from good, old-

video rental store,


and the crowds
looking them overt
and you begin to
understand the dimensions of growth.
Of course, just as not every piece of
real estate is a great investment, every
movie isn't bound t o turn a p-ofi;.
But, there are two factors that have
proven to be the critical difference in
creating a sound investment vehicle.
The first is the selection of the prod-

year, a $7.4 million equity placement


was arranged. Island Pictures is an rfficient operation - unlike some of
the more notorious larger Hollywood
studios - a n d it knows how to
recognize quality.
Little known Island Pictures captured a great deal of attention in 1985
with two extraordinary films - "Kiss
of the Spider Woman" and "Trip to
Bountiful." It was the first time in history that o n e production house could
claim credit for both the Best Actor

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The information set forth herein w a s obtained fnan sources w h i c h w e


believe reliable, but w e do not guarantee its accuracy. N e i t h e r t h e
information nor any opinion apressed constitutes a solicitation by us of
the purchase o r sale of any securities or cammodities. 'Ibis package is
f o r informational purposes only, t o gain an indication of interest in t h i s
project. Financial Management Group Ltd. does not endorsed and has not
been contracted by Wer Station t o promote this project. Any questions
regardug information contained herein should be direckd t o Stanley J.
Caterbone o r Scott Robertson.

WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
ADVANCED MEDIA GROUP

Page 43 of 76

05.03.2007

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Document: 003112117809

Page: 147

Date Filed: 11/02/2015

Page 144 of 221

WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
ADVANCED MEDIA GROUP

Page 44 of 76

05.03.2007

Case: 15-3400

Document: 003112117809

Page: 148

Date Filed: 11/02/2015

Page 145 of 221

I.

w
t
y Financing with LimitedD-

a.
b.

c.
d.

UnlimitedMmrberof Investors
Small units of $5,000 to $25,000 per unit
Share 50%of profits w i t h Limited Partners
Time constraints as follows:
1. 90 day for regulatory appto s o l i c i t securities
2.
30
60 days to raise 2 - 4 million

11.

Equity Financing w i t h General Partners

a.
b.

c.
d.
e.

Smallnumberof investors
No time constraints t o raise funds
Large u n i t s $1 to $4 million units
Share 50%of profits w i t h General Partners
Very difficult because of the poor economic reputation of film
b3ustry w i t h r q x d s to investors.

111. Debt Financing with General Partners

a.
b.

IV.

F're Sell Distr-ion

a.

v.

above
Costs are 50%interest per year: For every $1 million, it w i l l cost
a t least $500,000 in guaranteed interest payments.
Sam= as

Contracts

b.

W of m t i v e Control
Share 60% to 80% of profits w i t h Distribution Ccarpany

c.
d.

upside potential
L i t t l e damside risk

DebtwithLineof Credit
a.
b.

c.
d.

Need collateral redL estate, inventory or accounts receivables


Very cheap 8% - 11%
per year for i n t e r s t
N o t h constraints
No loss of creative control

WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
ADVANCED MEDIA GROUP

Page 45 of 76

05.03.2007

Case: 15-3400

Document: 003112117809

Page: 149

Date Filed: 11/02/2015

Page 146 of 221

ANALYSIS

The follawing Analysis shows how the different forms of financing


conpare to one another under the most important variables to us:
1. Creative Control
2. Time parameters
3. Costs
I used three economic sceneries as to the net results of the
project:

1. A
of 1 Million Dollars
2. A Profit of 15 Million Dollars
3. A Profit of 100 Million Dollars

Alternatives

Time

Creative
Corrtrol

Cost

Of
Financing

LDss Of

1.1 Equity

90-180
Days

Same

mss

50% of
Profits

No lhss

$7.5 M

$50 M.

with Limited

II*)Equity
with General

30-180

MOZ

$7.!34

$50 M

Loss

50% of
Profits

No bss

Days

111. ) Debt with

30-180

50%-100%
Interest

$3.0 M

$3.0 M

Days

S ~ T E
Less

No Lr>ss

Generals

$10.5M

$70 M

Profit
$1 Million of $15M

Profit Of
of $100M

m e s

N.) Pre Sell


Distribution

Days

V. ) Line of
Credit

mYs

30-180

- 30

60%-80%
NO LOSS
of Profits

None
Inst

8%-11%
Interest
Payments

Refinance

$440,000
or
with 30 year less
note with
$9523/Mo.
payment @11%
Wlilding

$440,000
or
less

WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
ADVANCED MEDIA GROUP

Page 46 of 76

05.03.2007

Case: 15-3400

Document: 003112117809

Page: 150

Date Filed: 11/02/2015

Page 147 of 221

1.

Story

2.

Treatment

35,000

3.

Director

50,000

4.

5.

ArleneandEhrbara, N.Y.

6.

Finance Costs

5,000

110,000
50,000
200.000
$ 450,000

Line of Credit

$ 250,000

Stan's Investor

250,000

The above gives us 60 days to receive funds froan Sony and Visa for the spot in
the beginning of the video.
n-Lis gives us a chance to get money without using the line of credit.

WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
ADVANCED MEDIA GROUP

Page 47 of 76

05.03.2007

Case: 15-3400

Document: 003112117809

Page: 151

Date Filed: 11/02/2015

Page 148 of 221

IIAY

THE MI-ITANT FRO.-IEC:T

27, 1 i/:37

__--____--_________-------------------------------------TOTALS

_-_---_-_-_--__-_---------------------------------------;
STORY
O
C:SINT I NU ITY AND TFi'EATMENT
F'ROKIUCEK
o
D 1RECTOR
3+
OAST
BITS
EXTRAS AND STAND-INS

II

5;0(:10.00:
3.1(75(:1(:](:I :
1 15054. 00 :
2250(2(11.
(I): :
38&,,212.
(10:
521.00:
122253. C)O :

I
I
I
I
1

I
I
I

I
I
I
I

t
I
I

I
I

----------------,-----------------------#---------------'
TOTAL ABOVE THE L I N E
a
8E8&.YCl.00 1
I

----------------------------------------a---------------;
I
I

I
I

PRODUCTION STAFF S A L A R I E S
PRCfDtlC:TI ON OPERAT I
NG STAFF
SET D E S I G N I N G
SET OPERATING EXPENSES
LOCAT I ON
TESTS AND RETAKES
CUTTING/FILM/LAEORATORY
MClS 1 C
SI~I-IND _
PLIEL I C I T Y
MISCELLANEOUS

INSURANCE/TAXES/LICENSE5; k FEES
GENERAL OVERHEAD

I
I
I

8
I

I
I
I

8I
I
I

I
I
1

1
I
I
I

8I
I

1
I
I
I

1Y255S. 00 :
58295&..001
Z051cS5.00:
26t5.858.C)O 1
543:395.00:
20750.OC) :
-3~-4244.
.-.
(:)(I
:
161409.00:
184359.00:
1

19121.00:
31 1381.00:
3580(1.C)(] :
I

1
I

-----------------------------------------;---------------t

TOTAL BELOW THE L I N E

2c5c,516.00 :

1
I

37472(1)&.00 :

1I

&*46750.00:

4393956.C)C)1

----------------------------------------;---------------t

----------------------------------------;---------------t

TOTAL ABOVE b FELQW THE L I N E

----------------------------------------;---------;=----:
----------------------------------------1---------------;

TOTAL F I N A N C E CHGS/CClNTINGENCY /BONDS


----------------------------------------;---------------t

GRAND TCfTCIL

........................................

--f-------

tlOES NOT INCLUDE c:2"'' f ::r>ENIY

WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
ADVANCED MEDIA GROUP

Page 48 of 76

05.03.2007

Case: 15-3400

Document: 003112117809

Page: 152

Date Filed: 11/02/2015

Page 149 of 221

F'AGE 1

STORY:

I [lAYS/WEEt::S

RATE

TClTAL

'------------I---------------;-------------.

4.
P.
C:.

STiIIKY F'l-lRC:HASE
T I T L E PI-1HC:HASE
M1SCELLANEiII-1::; EXPENSE

I
I

I
I

I
I

I
I

I
I

aI

5(:)0<).()0

1 5<100.
00
: U

: O
I
I

-----------------------------------I------------l---------------;--------------

TlIlTAL STORY:

-----------------------------------'----'------------:---------------;-------------Cl3NT INU ITY AND TREATMENT:


A.

B.

EB.
C.

I?.
E.

50(:,C).
00

aI

WR ITERS
SECRETARIES AND T Y P I S T S
PAYROLL TAXES - B (15.8%)
XEROX EXPENSE
RESEARCIH EXPENSE
MISCELLANEOUS EXPENSE

30000.00

: 3000O.O~)
: O
: O
: 3000.00
: 1650.00

8
I

1
I

a1

8I

1 .IS

I
I

aI

8I

8I

I
I

I
I

I
I

1
I

200.00

----------------------------'------------;---------------a-------------.

TOTAL C O N T I N U I T Y AND TREATMENT:


?

-----------------------------------'------------;---------------;------------PHODIJCER :
I
a
I
I

&7em~G
A.

B.
BE.
C.
C:C.
D.

S ROEINSON/S

I
I

aI

I
I

I
I

I
I

ta
I
I

:
:
:
:
:
:
:

I
I

aI

I
I

I
I

I
I

I
I

I
I

ASSOCIATES (ARLENE)
BARBARA PEETEKS (DEFERRED)
SECRETARIES
PAYROLL TAXES - C: ( 1 5 . 8 % )
MISCELLANEOUS EXPENSE

100000.00

o
I

26

aI

I
I

3465(1).(](I

500.00

0
0
10~l000.00
0
13000.00
2054.00
0

-----------------------------------~------------~---------------~-------------.

TOTAL PRC1DUC:ER :

115c)54.00

-----------------------------------;------------;---------------t-------------

D I REC:TilR:

11
IRECTOR
B. SECRETARIES
EB. PAYROLL TAX - P ( 15.8%)
C.
HEALTH b WELFARE/PENSION
D. MISCELLANEOCIS EXPENSE

A.

12.5%

I
I

8I

8
1

200000. 00

-1I

20006C). 00

:
:
:

I
I

1
a

I
I

I
I

I
I

0
25(]0(].()(]
i)

-----------------------------------;------------1---------------;-------------

TOTAL D IRECTIIIR

225~1(:1(:).0(:)

-----------------------------------'------------;---------------1-------------

cAST :
C:OL HEMSLEY ( P / D Y
RICK (P/DY)
.-IERKY ( P / t l Y )

: 5
: 34
: 15

: 10c)0.(1(:)
: 5000.
: 1000.00
: 34(:)c)(].00
: 1000.00
: 15000. (30
.-, ,
VTC (rn./r~~)
: I (1)0 (1) .(3(11
: 2:30(:)0.(:I(:!
5 T h N ( F/ tfY)
: zk,
: ~C)Q(:I.~I~
: 2k.0i10.i~c)
t::ATIE ( P / D Y )
: 11
: 1(1)(1)<I .(1)(11
: 1100(1) .(1)(1)
GARREN ( F ' / D Y )
7
: 523.00
: 3675. 0~:)
--IRCt:' ( PWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
/DY)
WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
:. 5
1 525. (:I(:)
: 2(;25.(:)(1)
. --I

ADVANCED MEDIA GROUP

A%s

Page 49 of 76

-.-.

.-.,-.

05.03.2007

?.F

Case: 15-3400

Document: 003112117809

Page: 153

Date Filed: 11/02/2015

Page 150 of 221


MATTHEW AP'A MR X ( F ' / D Y )
5 T H BOND MEMBER ( P / D Y )
LII~II:: t::LEIN ( F / t l Y )
BARNEY ( P / D Y )
.-IE:I-;;SIE ( P / D Y )
r::ORRI E ( P/DY
ELID ( P / D Y )
1::HARLIE ( P / D Y 1
ANNIE ( F / D Y )
I:rl'i L!-lN!:iRIN ( F ' / D Y )
lz*;4t.l (P/L!Y)
!:.Ers!+!'<<f:8i[!y;
I:.; lt.~I:~l: r.., i ( ,ras-tx TI.,-\r-I 1' \
,-!v,,,l::El:; i
.-.- i i .*,:.-1;.
:-Ir: '..' ,.
~.:;I>LLE[.~
(:(.{&*:.,'rEFi
- - .plat.; ( t : - l i CI r\ r-iA\,' )
J.

- . . , - . - I :

kAJ/

,.-.,-,-8--l,

EL!'{

.-- .,
,-,L

z.;%;l-k:!~:;;:=;c !:.;-F,;

p!9 . ' .
':;:C:>!'yt:'".'

r.-..

llti

[,!;q.f

"

(FfjJ< Llf;y')
.,' p-lr.; (i:.Er.*
,-, i-!{-,.,'

LI, 3 -a
.

;)E;
.

',/ .

L..'l..-c
..LI

( pk-!.L

\n :. \

:!

i.!{:,',':

;; L.12

"2

7
A

;;;i\.;:;
:f;'?'AFF WC!MAf;!

,:
:I#

':' ?

.
.. .:.. ,-"
\

;-'Z:f:
L

'""
L.*.,i? :

i:A\,' ',

.. ,-." ,I-.... .,- (. !.,L::,L!t.%,%!


.:.,-<l-,.t,
j
Li;.,<; ;-: 1r,i i-,
1 ,L 2: ;:..;I.,.-. . >:&!''\ j
...-? ( FEE c!A'y )
.i
\.
!1: 1.;
&
. , ... id:;=* ::- ( p k.l< LlG .i
ELE?,(zHc[l BF; 1x:!; 1 ; C:*FIf;: LI;?~','
ELEACHEtr E R A 1: r.]:
2 ( PElI; C-IA';' )
BLEF;IZHEU SK;iIN:S 3 ( P E R trAY)
FLERC:HED F R 6 I N S L! (PEK tlHY )
Cl:fA!sT
Gl-lARD (PER DAY )
F R I L L Y G I R L (PER DAY)
MRS. QUEEN ( PER ! DAY 1
HANDSOME TEENAGER ( F'ER EIAY )
G I A N T ULTRIMA GUARD ( PER DAY
CRlJDE BOY'S ISATE ( PER DAY )
CORPSE OFFICER 1 ( PER DAY
BARRICADE C:OP 1 (PER D A Y )
MUTANT S I T E CIIP ( PER DAY )
t::ERR '5 S 1DEK 1C:F:: C:IIIF' ( PER DAY )
:

tk:-

.-

P..

&..

-.

?,

,-'

' :%

HEALTH k WELFfiRE (11%)


FAYROLL TAXES (15.8%)
OVERTIME CAST ( 5 % )
STI-lNTS :
Bl3QT DRIVER
11
IVER
CHARLIE I N TANK
G I R L PULLED FR R I D E
BOY PULLED F R H I D E
CREEP PULLED FR R I D E
C H A R L I E & BARNEY F I G H T
STAN FEATS COL H
HEALTH & WELFARE/F'ENSI ON
PAYROLL TAXES ( 15.8%)
l l T STLINTMEN ( 5 %1

1 1% )

WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
ADVANCED MEDIA GROUP

Page 50 of 76

05.03.2007

Case: 15-3400
C:IIIAC:H I NG

Document: 003112117809

V O I C:E/STUNT IZOCIRD/ETI:

) Page
:

HEALTH h WELFARE ( 1 1 % )
FAYROLL TAXES ( 15. %
:
)
!:IT
STI-INT COr3R ( 5%
i1:AST 1N G D I RErI:T!]R
IZAsT I NG SIJPPL I E:; ( 5%)
MISCELLANEOUS

Page: 154

:15120of 221

Date Filed: 11/02/2015


4 <I

(11 . (1) (1)

I4
4I

E:-:C)(:)O.i)c]
::::3(1) (:)(I)

:
:
:

1 5 (1)(:)

.(1)(1)

I8

:
:
:
:

.
.

1264. O i )
4 4 4 (11(1)
C.0(:)0 (:I(:)
:300, 00

(1)
0

,--------------(-------------.

TOTAL CAST
-------------------------------'------------'---------------i-------------

FITS:
KCINN ING TEENAGER ( P/ISY
DANCING G I R L ( P / D Y
F R I L L Y MClM

HEALTH ?A WELFARE/PENSION
PAYROLL TAXES (15.8%)
OVERT IME
F I T T I N G CHARGES

:
:
:

1
I
1

:
:
:

I
I

I
I

I
1

I
I

8
1

I
1

I
I

TOTAL B I T S :

I
I

EXTRAS:
SEE PRELIMINARY BOARD

150.00
150.00
150.00

-----------------------------------;------------;---------------;-------------

1
t

1400

1400
700

81

1
I

I
1

tI

1400

18375.00
4539.00
0
1 11271.89
: 1334.59

:
:

:
:

77.00

: 15520.00

8I

aI

I8

4.00

1 2452.16
0
: 5600. 00

1400

(1)

70(:)0.00
0

160

45000.00

5;. 00

I
I

13.13
6.57

STAND-INS ( 4 X 46 DAYS)
PAYROLL TAXES ( 15.8%)
HRW STAND- I N S (NUN UNION
FClX LUNCHES - EXTRAS

:
:

I 0

EXTRA ADJUSTMENTS ( D R I V E T O ) .

35. 00

I
I

OVERTIME ( 2 HRS)
OVERT1ME ( 1 ADD HR 1
F I T T I N G FEE
PAYROLL TAXES ( 15.8%
SERVICE FEE ( 10%)

: 150. 00
: 150.00
: 150.00
: O
: 0
: 71.
: 0
: 0
: 0
: 0
i 521.10

-----------------------------------'------------;---------------;------------I

380211.7(:)

4I

1t

122252.64

-----------,-----------------------I------------l---------------_:-------------

TOTAL EXTRAS AND STAND-INS

-----------------------------------I------------~---------------~------------I
I
I

I
I

-----------------------------------:------------;---------------o-------------

: :28:368'3. 44
-_----_---_--__-___-----------------------------------------------------

GRAND TOTAL ABOVE THE L I N E

4I

I8

WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
ADVANCED MEDIA GROUP

Page 51 of 76

05.03.2007

Case: 15-3400

Document: 003112117809

Page: 155

Date Filed: 11/02/2015

Page 152 of 221

. ..

1,-

. < ,. , .

.'\.::,

t'.F,,:.!i

1 ~ .

. ,

.,

-.,-

:'_

I_

I'
ErD.

tE.
F.
G.

.,:

.-I.

K.
L.
M.
N.
N.

,'

;; ;!

. .

,,,

.,

il.

;:,-;-,;

. ..

. a ,

.. .

\ :

.:

,..$1.:

-8..

, '-%I.;
, ,.+:!:k 8
i:.'
:[-.:LI;> .. . j

'

,.,I1

.I...L

/;.:,.:

:
I

:
I

I
I
I
1

1
I
I

-.

.I

:-,

.,:s, ,. .

I
:A

..

.:

ZND 2 N T ! At1 ( P E R WEEK)


TrNrl Art PRODI-IC:I ON F E E ( P E R WEEK )
Ll11C:fiTI CIN MANAGER ( P E R WEEK )
!:;CR IF'T :i;IIF'EKV I:;OR
( P E R [IAY )
F'RODI-IC:T I ON C:I-\IIIRD I NATOR ( P R ClAY
TEC:HN I C A L AIIV I SOH ( PER D A Y
NI-IRSE ( P E R D A Y )
LI:IC:AT I ON AI-Itl ITOR ( P E R WEEK)
WELFARE/TEAC:HER ( P E R D A Y )
N I G H T PREMIUM ( 5 DAYS)-50%
IIIVERTIME ( 5 % )

;::;.;;c:;-!;y

;-

, .

.
.

.,.,:..:. i
j.'F
;;;l;,:;-!;,-!-;!~:.
_,I I.
<i.:s;..:~.,;
b!~ii:,.j
1~ ; !.-:>; ;:L:FI
I
I- (!:*Fcr< i&Et.: )
.; Ll 1 \?:!:TI:I&'
I
( (PER WEEK )
I

.. ,

. .:
.' -;. 1.

.,,,.

. .

.
I!
.

.'??;;'

:
I

. .

: .,!>

...

r
-

- .

~. ,

11:

2 7 (1)(1) (2(1) :

I=,

4 1(1) (1)(1) :
18 (1) (11 (1)(1) I
17I:( (1) (3[:I I
329.00 :
1000. (30 :
235.00 :
1-30. ( ~ 3:

#-.

.
.

1(1) :

.=.
*-+

at

,=a

--*

16:
43:
A1I
10:
1(2 !
121

300.00:
175. (30 :

13(:)0. 00 :
200.00 :
1175.00 1

.-I

L I
t

.5:

(-):

297(:)C).
i:~!
:=:?::(I)
(1)(
1 :: (1)
(1)I
13/-.
(:I(;)
01
2 r 5 ~ : 2(1):.
14Oc:)O. (111
li)l(:15.(111
1 1 59(:) (1)I
2: o (1)(1) (1)!
175(1). (111
156()(:, (111
4t70. (111
537.51
* ? l k 8 y .4:

.
.

: : : 5 f 1 4. (-),

11: (1)(1) ;

4
I

I
1

t
1

I
I

I
I

1
I

I
1

tI

I
I

9:
51 :

5:
10:

3000.00 :
340.00 :
~ - 3 50(11
. :
235. O(7 :
220.00:
275.00 :
150. 00 :

I
I

aI

.
.

-----------------------------------:------------;---------------a--------------

T O T A L PRI:IDUI_~T I ON S T A F F :

1'32557.9

-----------------------------------;------------1---------------1--------------

PROKII-ICT I ON OPERAT I NG S T A F F :
A.
C:AMERAMEN
D I RECTOR O F PHOTOGRAPHY ( P/WK
CAMERA OPERATOR ( 5;
( P/DAY
KEY 1 S T ASSISTANT ( P / D A Y )
1ST ASSISTANT (P/DAY)
2ND ASSISTANT (P/DAY)
VTR PLAYBACK (?/DAY)
S T I L L P H I ~ T I I C ~ R A P H E R( P / 3 H D A Y )
E X T R A CAMERA OPERATORS
N I G H T PREMIUM ( 5 D A Y S ) - 5 0 %
O. T. CAMERA CREW ( 10%
M 1SC:ELLANEI]I-I!E;

1
8
I
I
I

I
I
q

51:
41:
41:

F ?

4 I
c

9(25(] (30 :

I
I

I
I

II

1
I

.
.

2 7 (1)0 (3 (1)
1 7 3 4 0 . (1)'
11935. (11
9r5,C:5.0
Q(320, i)
1275. (3
1%(:)(:I (1)
(1)
4 5 2 5 . (7
E: 24,E: .(11

-----------------------------------#------------*---------------*--------------

TCITAL CAMERA S T A F F

'9(I)y4::

-----------------------------------I------------~---------------l--------------

SfIlI-IND DEPARTMENT
MIXER (F'/tIAY)
RECIIIHDER
FCICIM PERSON ( P / D A Y
11:AELE P E R S O N ( P / D A Y
IZAELE FtIlOM PERSCIN
RAD 1111PERSCIN
N I G H T P K E M ILlM ( 5 D A Y S - 5 0 %
O.T.
SlIlI-IND C:REW (1(11%)
M 1:~;(~:ELLANEIIII-I:I-;

I
I

t
I

1
I

I
I

41:

275. 00 1

I
I

I
I

I
I
1

41:
41:

235. (I):

I
I

I
I

I
I

c
LU

8
1

3725.00

I
I

t
I

I
a

12:

STAFF

WAR~IROFE IIlEPARTMENT
WARDROBE LIES i GNER ( P/WK
L.!,c)F;rr~f~;GC7 I 2 1

.
.

(:

18k.2. 5
324(:1. 7

--356.4:::.I:

".'CK,

W[IlMEI\I.':3 CJ&Rfiti!ilr*E 1 S T ( P / K l A Y )

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235.

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TIIITAL S1:fUNEl

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.-

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11275. (1;

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235.00:

.(11
.(1;

05.03.2007

(.

Case: 15-3400

Document: 003112117809

Page: 156

Date Filed: 11/02/2015

Page 153 of 221

G.

SET DF;ES:-:ING DEF'AKTHENT


:SET [IEIZI:IK'ATIS~~ ( F'/ [IAY )
ASST SET [IEC:I:IRPTI:IR
( /='/DRY )
[lRES:::/RE[IRE:f;S/STF(
1K E
DRES::;/REDRESS/STR
J tc:E
[IRE:S:I;/RE[I~E!:;::;/STR
1K E
DRAPERY PERSON
r3REENSPERSl:lN
GREENSPERSON
N I G H T PREMILIM ( 5 D A Y S ) -50%
i t . T.
S E T DRESSING C:REW ( 10%)
M I SC:ELLANEl:lUS

. (1

4
I

51:
51:

.-, -,..-.c
.-, (1)(1) :
2 2(:1 (](:I :

8
I

I
I

1
I

I
I

I
I

,
t

a
I

(:

(:

I
I

I
I

I
I

I
I

I
I

.51

I
I

I
I
I

I
I

I
I

I
I

2275.00

(:

.C
. (1
.
.r
.

I
I

1 1 *.;/: 5
11220.

(:

.i

1137. .?
24:1:4. 1

-----------------------------------I------------~---------------~--------------

TOTAL SET DRESSING S T A F F

26776.7

-----------------------------------:------------1---------------;--------------

H.

I
I
E L E C T R I C A L DEPARTMENT
I
1
43:
GAFFER ( P / D G Y 1
1
41:
BEST BOY ( P / D A Y )
I
I
41:
E L E C CIF'ERATINC; LABISR ( P/DAY
I
I
41:
E L E C OPERATING LABOR ( P / D A Y
I
I
I
I
E L E C OPERATING LABOR ( P / D A Y
1
I
41:
GENERATOR OPERATOR ( P / D A Y )
I
I
I
I
GENERATOR OPERATOR
I
I
I
I
ELECTRICAL RIGGING/STRIKING
I
a
I
I
E L E C T R I C A L R 11313IN G / S T R I k< I NCi
I
I
I
F A N OPERATOR
I
C I
I
.-I I
N IGHT F'REM I 1-IM ( 5 DAYS ) =50%
O.T.
E L E C T R I C DEPARTMENT (10%) :
I
I
I
M 1SCELLANEI~IJS
I
I
-----------------------------------'--------------;---------------:-------------.

235.00 :
222). 00 :
210.00:
210. 00 :

220.00

86.I(:).

I
I

.I

9c)2(:).(

.
.t
.
.

I
I

(.

I
I
I

5475.00

(.

27:::7. F
4810. :

I
I

10105. (1
5~(:)2(:) (1
161t:). (

TOTAL E L E C T R I C A L S T A F F

.(1

I
I

1
I

4 L Y- 1 2 . ;

c-,

-----------------------------------1------------;---------------1-------------I
I. S P E C I A L E F F E C T S
I
I
S P F X C I X t R D I NATOR ( P / D A Y
SF' FX OPERATING LABOR ( P / D A Y )
:
:3P F X OPERATING LABOR ( P / D A Y
:
I
I
!Z;FECIAL F X OPERATING LABOR
I
D E S I G N ING $< DRAFT 1NlIi LABI3R
I
I
I
ElESIGNING .9< D R A F T I N G LABClR
C1:lNSTRUC:T 1GIN tf R I 1 2 cI N I ~LABOR
:
C:ONSTRUCTION fq R I G G I N G LABOR
:
I
t
N IGHT PREM Il l M ( 5 DAYS 1 - 5 0 %
111.T. SF'E1:IAL
FX ElEPAHTMENT 10% :
1
M 1SCELLANElIlIJS
I

10:
10:
10 :

305. (20 :

:
3(:)5.0cJ
:
3<15.c)0

1
I

I
I

..-I

100.
1525.

(
1

(:I

.'

I
I

(I(]
I

C1.Q:

3(:15(:).
..I.(-1

I
I

C I
1

(1)5 (1)

: :1

5:

.
.
5 (11.
.
.
5 (1) .

I
I

762.
1041.

-----------------------------------;------------;---------------;------------I
I

S E T STANDBY OPERATORS
I
I
I
CARPENTER ( F / D A Y )
I
CARPENTER ( P / D A Y )
I
I
I
EXTRA CARPENTER LABOR
I
N I G H T PREMIUM ( 5 D A Y S ) - 5 0 %
I
TI. T
SET z;TAwryrE!v ~ I F E R ~ ~ T I ~ 1(5%
IHS :
,
1 :! 11.EL L& Pi 1'11i-I .=,

I
I

1(11 :
1(:I:

250.00 :
.-, .-.
.>c (j
o:

TOTAL S P E C I A L F X S T A F F

-----------------------------------'------------:---------------;------------J.

.-.
-1.
1

..-I

E 8
I

100. 00 :
1250.09 1

I1

I
I

I
I

I
t

11453.

577.

-----------------------------------~------------*---------------*-------------

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ADVANCED MEDIA GROUP

Page 53 of 76

.
.
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05.03.2007

Case: 15-3400

Document: 003112117809

Page: 157

7.

Date Filed: 11/02/2015

Page 154 of 221

TIIITAL :SET S / F l3F'EKF;T I PIIIi :i;TAFF


/.352. .5(
----------------------------------- ------------ I__---_----_-_--(-_----- I
I .
:SET STANDBY F'A I NTER5;
I
. I
.=,
.::. s(1), (1) :
:: (1)4 C) . (1)(
P A I N T E R (F'/DAY)
.(1)(
F'A I N T E R
.-I
i
1 0 (1) (1)(1) :
3 1 )(11 0 (
EXTRA F A I N T E R L A B I ~ R
.3
JL4.
(I)(
13. T . S E T STANDBY F'fi INTER::: 10% :
8I

f
I

,La

I
I

M ISC:ELLANEIIII-IS

TOTAL SET S / B F A I N T I N G STAFF

I
I

____________

4
I

I
I

356.4. (I)(

-----------------------------------l------------~---------------~--------------.

L.

S E T WATCHMEN
WATCHMON ( P / D A Y )
WATCHMAN
E X T R A WATCHMAN L A E S R
0 . T. S E T WATCHMAN
MISCELLANEOUS

I
I

45:

150. (10:

I
I

I
I

I
I

I
8

I
I

I
I

I
I

.(I)
675(:).
(:I(

(I)(

.(111
&75.0(

-,---------------------------------~------------~---------------~------------T O T A L S E T WATCHMEN S T A F F

7425.

I
I

1
I

I
I

I
I

1o :

30o. CIO :

01
3000. (11.

I
I

I
I

(:I(

,----------------------------------I------------'---------------*--------------.

M.

FIREMEN/POLICEMEN
FIREMAN (P/DAY)
FIREMAN
POLICEMAN (P/DAY)
POLICEMAN (P/DAY)
P O LICEMAN
P O LICEMAN
E X T R A F I R E / P O L I C E LABOR
0 . T. F I R E M E N / P O L I C E M E N ( 1 0 % )
MISCELLANEOUS

I
I
1
I

I
I

I
I

I
I

I
I

I
I

I
I

I
I

I
I

I
I

II

I
I

I
I

:
250. oo :

40 :
20 :

1C I O C ) ~ .CI
5000. c:

250.00

.0
.

0 1

(1).
1S Of:) (1:

-----------------------------------I------------'---------------l--------------

TOTAL FIHEIPOLICE

STAFF

19:::
00 C!

-----------------------------------I------------'---------------l--------------

WRANGLERS
ta
t
S P C A MAN
I
H E A D WRANGLER ( P / D A Y )
WRANGLER
*
WRANGLER
TRAINER
E X T R A A N I M A L LABOR
O. T. WRANGLERS ( 10%
MISCELLANEOUS
-----------------------------------'------------'---------------i-------------T O T A L WRANGLER S T A F F
I

0.

I
I

I
I

I
I

I
I

I
I

I
I

I
I

I
I

I
I

I
I

I
I

I
I

(-1

(-1

.(1:
(11.

.Ci

.
.C .
(-1

.0

I
I

I
I

.(-1

.
.

...............................................................................
P.
TEAMSTERS (NOTE: 1 MAN F'ER ! ! ! ) : (NOTE:
. 5 / W : 1 WHOLE WEE/::)
:
CAMERA ( P/WK
10 :
22(:)(:)
.0(:):

.
.
.

225)(:)0 (11
I
G R I P (F/Wt<)
I
C'
ELECTRII:
(P/WK
I
(1;
S E T C:IIINTRI-ICT IGIN ( F/Wt< )
3
1 &.(:I0 a(:):
4:3[)0. (1
ART DEPT (P/WK)
,
3.4 :
1&.(:I(:). (:I(] :
1:344(:).c
PROP ( P/WEEK 1
8.4:
1600. OC) :
13440. (:
WAHDHIIIBE ( F / W K
a
Z.4:
1 &.(:I(:). O ( j :
1344(:).1:
MAKE-UP (P/WK
,
5:. 4 :
1Gc:)O. 0 0 :
13440. i
HONEYWAGON ( P/WK )
a
3.4:
1 &(:)(:I (:)a :
1344(::
HONEYLJAGCIN (F'/G!!I )
:.
1 6.00 (1)(1) :
"-j : r-.
:3F'EC.iAL F X (P/Wt:::)
a
2. 4 :
1 /.<I (1 (1)(1) :
,-., 4 (-)
1F'ICt:::-I-IF' $:ERVICE (F'/Wt:::)
9:
1 /-.1:) (1) (1)(1) :
1 44(3(3 (;I
N 1GHT
1l-1141 ( 5 EIAY:; ) -s(:)%
1: :1 4 (1) C) (1)(1) :
&7(:)0.(:,
O. T .WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
TEfiM:3TER:3
( 10%1
a
WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
1.2374. (:;
I
I

I
I

I
I

I
I

I
I

1
I

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I
I

I
I

I
I

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ADVANCED MEDIA GROUP

Page 54 of 76

'

.
.
.
-

s.:.-I
.~

4
I

05.03.2007

.
.

Case: 15-3400

Document: 003112117809

Page: 158

Date Filed: 11/02/2015

Page 155 of 221

10.

S E T r:ONI=;TRIJi:T

IClN

DAY!:;/WEEKS

RATE

TOTAL

-----------------------------------I------------*---------------~-------------.

A.
AA.
F.
C:.

D.
E.
F.

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

11.
12.
13.
14.
15.

10.
17
13.
19.

-. LC).

21.

PRODI-KT I O N D E S I G N E R ( P / W K )
ART D I R E C T O R
ASST ART D I R E C T O R
S;k,'ETcH A R T I S T
DRAFTSMAN ( P / D Y
SET SUPERVISOR ( P / D Y )
MISC: F X / B L t I G S / t I R E S S I N G S :
MUTANT F X (sea + s o r e e t c )
BANDSTAND
PIER
SHOOT ING GALLERY
C A S T L E OF TERROR
VIC'S OFFICE
CONTAM IN A T E D BEACH
E;HER IFF S T A T I
ClN
DCiC K L E I I \ J ' S
K T L V NEWS S T A T I O N
R I C E ' S APT
LlLTR I MA INSTI TI-ITE
D I V E R ' S HOUSE
M O L L I E ' S FAR
PI-ITLER HOl-ISE
C:HARLIE'S I 2 A B I N
B A R N E Y ' S HfIiI-I:SE
R O L L E R CCiASTEF\:
WRECKED P L A N E
C:lIINTF;'CILLERf
RRlIlH
MUTANT FX MAN H%W ( P / D Y 1
R IGG ING G R I P L A B O R ( P/Wt< 1
:E;TF; 1I::1NG
BQC:K 1NGS
IIiREENS

20(:)(:).

I
I

16:

I
I

I
1

I
I

I
I

8
I

I
I

II

1
I

2:

2 5 ~ j (. j O :

15:

I
I

I
I

I
I

I
I

I
I
I

I
I
I
I
I

I
I
I
I
I
I

I:

I
I
I

I
I

I
I
I

I
I
I
I
I

I
I
I

I
I
I

I
I
I
I

- 1

[
I

1:
1:
1:
1:
1:
1:
1:
1:
1:

.I

.
4(:)(:).
3750. I
.

250. OC) :

I
4

320(:)(:).
I

1:
1:
1I
1:
1:
1:
1:
1:
1:
1:
a>,=
4 18

8:

1 1 lcs~ro.0 0 :
1 o<)(1)0 (:I C) :
5(1)(3(1) (1(1) :
500. (:to:
.5000.i)(j:
50(1) 00 :
5 (1)(1) (1)(1) :
5 i)(:l (1) :
30(I)(:) (I)(] :
1 ooo. 00 :
300(:).
:
5000
:
500.00 :
500. ()(I) :
:I;(:)(:)(:)
(10:
80(1)(1). 00 :
20(1). ( j O :
SO(:).
:
5(:)(110 (:)(:I :
50(:).()a :
131 (:)(I) :

.
.

.
.
.

.
.

400.O.Q:

I
I

I
I

I
8

aI

I
I

t
I

aI

.
.

1 1 1 (1)(1)0
1 C) (11(1)0 .:
5~:)
(1)0 (
500. .
5(1)(1)(:) .:
5 (:I 0 .
5 (1,(1)
(

c -La (-) (-1

:30(1)(1). I
1
3 (1)(:I (1) '
5 (1)(1)
500.
5;c)O. i
:3(j00. c
S0(30.1
Zc)(:). 1
50(:).:
5 (1)(1)(1) :
c
.-I (-1
- (1)
2ts:35
2:2 (1)(11

.
.

.
.

.
.

-----------------------------------I------------*----------------l-------------

T O T A L S E T CONSTRUCT I11iN

2(:)5185.

-----------------------------------l------------;---------------l-------------

1 1.
A.
I3
C:.

S E T O F E R A T I N G EXPENSES:
C:AMERA E12UI FMENT R E N T A L S
C:AMERA EI;!I-I I PMENT PI-IRCHASES
VTR F'LAYEAC:K R E N T A L
IZAMERG CRANE R E N T A L S
WARDRI:IEIC PI-1RC:HA:E;ED

I
I

.
.
.

5 (1)(1)(1) (1)(1) :
' 7 -0 0 (1)(1) :
1 5 0 (j (1)(1) :
2(:)(I)(] (](I) i

4 0 (1)(:I (1)
1 t.(:)i)
a
1:
1 50(11
1 .
I
1:
20 (1)(1) .
E.
1:
3(>(:)(:)(:)
(:I(:)
:
3(1) (1)(1)(1:
F.
[,!&Z
.,
., 7;.:.
;,k;iTp,Lz;
.-.cs ,
c (-1-(-1
- (1)Q :
4 r_1 ,:. .
G.
WARtfROBE MA INTENANCE
,
:> ,
4 (1)(1) (1)(1) :
33:)(:)
H.
G R I P Ef;!U IPMENT R E N T E D
1
I
.-.
2(11(1)(1) (1)(1) :
1 6.(1).C,0 0 ..
.=,
I . PROF' EC.!.!r-lI F'MENT R E N T E D
5 (1) (1) (1) (1) :
4 0(:)(:)
.,
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Page 55 of 76

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Page: 159

FiENlEIl

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~ROFS-LI:IS::;
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,
Case: 15-3400
Document: 003112117809
Page 156 of 221
:I;C!l-INB El;!I-I I PMENT RENTED
WALt::I E TALI:::IES RENTEL1
111. Nl-1R:I;EKY F'URI::HASE[I
AND RENTED
:
f .
MAt:zE-l-lF' Fl-lRCHA:I;ES
G!.
HA I RDFtE::::3 ING PI_IRC:HA::;E:3/RENTAL::;
:
R.
ELECTR IC:AL EI;!I_IIPMENT RENTALS
;
S.
E L E C T R I C A L EQll IPMENT F'I_~RI::HA::;ED :
T.
GASOLINE-RENTAL VEHICLES ( 1 0 x 2 ) :
U.
~3ENERATOFi RENTALS ( GAS ONLY
V.
S P E C I A L F X RENTALS/PURC:HASES
W.
PROP TRUCE RENTAL
X 1. WARTIROBE TRUCK RENTAL
XZ. SET DRESSING TRUCE RENTAL
X 3 . SET CONTSTRUCTION TRUCK RENT
:
X4. HONEYWAGON 1
t
X 5 . HONEYWAGON 2
,
X 6 . MAKE-UP THAILOR RENTAL
Y.
P I C T U R E V E H I C L E RENTALS:
Y1. BARNIE'S BOAT ( P / D Y )
Y 2 . CHARLIE'S BOAT ( P / D Y
a
Y3. DIVER'S BOAT ( P / D Y )
V4. COAST GUARD BOAT ( P / D Y )
Y5. R I C K ' S CAR ( P / D Y )
I
Y 6 . AMBULANCE ( P / D Y )
Y7. PAM'S CAR ( P / D Y )
Y8. J E S S I E ' S CAR ( P / D Y )
I
Y9. PICK-UP TRUCK ( P / D Y )
I
Y 1 0 . P O L I C E CAR ( P / D Y )
a
Y11-BARNEY'S ROVER ( P / D Y )
Y I Z . P O L I C E WAGON ( P / D Y )
t
Y13.STAN'S
CAR ( P / D Y )
Y1S. C. GUARD CAGE ( P / D Y )
I
Y16.VIC'S
BOAT ( P / D Y ) I
ZCAMERA BOAT RENTAL (F'/DY)
ZZ. M I S C RENTALS/PUHCHASES ( 5 % )
L.
M.
t\l.

,
I

a81.
_*

c=o

I-.

.-,

.8
-*x8

,
9

61

1-1

3 1 ,

'I' I

4 (1) :
L
.

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.-. ,
1'1

1
I

1
I

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:3 :

L*

.-I

700. c)o :
4 5 0 . 00 :
450.00 1
2000.00 :
2()0(3 ( 1 0 :
700.00 :

I
4

1t

3:

I
I

1
I

II

1:
1:
21

I
1

i
l

1
8

300. (10:
100.00 :

'-,
I

1:

r. I

L'

I
I

5:
1:
1:

1
1

c.
.-.

1:
1:

II
1

--,
I

L I

1:

2:
.-a

8I

TOTAL SET OPEHATI ON EXPENSES:

I(:

c
u

.
.
:: (1) 0 (1) :
:;: .0 (1) :

3(:)00.
<I(:, :
45(:). <)(I:

.3 I

1I

--,-,----*

,I

2 (1, :

1
I

/1,(:)(1,.

.-'

2(1) (1)(1) . (1, (1) :


25(:,.00 :
2.y(1) , (1)(1) ;
4 (1)0 (1) I:( (1) :
c (-I()
- - ()(:I
:

.-.
_I

2 (:I(1)(11 . (1)(11 :
Date Filed: 11/02/2015
1 (1) (1)(1) . (1) (1) :

I
I

300.00 :
4 0 0 . 00 :
100.00:
400. 00 :
200.00:
100. 00 :
100.00:
200.00 :
100.00 :
2(:)c).0 0 :
1(:)
00(
: I.
4 0 0 . 00 :
20(:). 00 :
500.00 :

I
1

I
I

I
I

I
I

I
I

I
I

--------

.----'---------------II

I
I

tI

.----:---------------I-

-----------------,-----------------'-I------

12. LOCAT I O N :

I
I

I
I

I
I

A I R F A R E S (NY-LA)
10:
1.5;k.O. 00 :
HOTEL-DIR/PRODUCER-NY
( P/MO 1
4:
11(1) (1)(1) (j
(1) :
3C.C'
MEALS (PD 2 X 1 7 X 7 ) EIIR/PFC'OD NY
&&.em
1
100. 00-I_
.>.>q
MEALS (PD 2 X 1 7 X 7 ) DIH/PROD N J
L.-.C
75.00 :
I
L O C A T I O N S I T E S RENTAL:
I
C
BANDSTAND AREA ( P / D Y )
I
200 ()(:I :
D2. A I R F I E L D ( P / D Y )
I:
- 4 0 0 . 00:
8:
1000. 00 :
D3. P I E R ( P / D Y )
D4. BOAT R I D E ( P / D Y )
1:
75(:). 00 :
D5. SHOOTING GALLERY ( P / D Y )
1:
5(:)(?.
(10 :
DG. CASTLE O F TERROR ( P / D Y )
10:
75(1). (10 :
D7. V I C ' S O F F I C E ( P / D Y )
1:
300. 00:
D8. CONTAMINATED BEACH ( P / D Y )
4:
150(:). 00 :
.i
-,
D9. SHER IFF STAT ION ( P/DY
10(:)5) 00 :
c
rl10. DOC t < L E I N N S ( P / D Y )
E:(:)0 00 :
D 1 1 . K T L V NEWS S T A T I O N ( P / D Y )
1;
55)(j. (jc) :
F 1 2. THE DOCyI.::: ( F'.;DY )
1 S(:)c). 00 :
C
D13. R I O K ' S APARTMENT ( P / D Y )
C'
750. (I)()
:
C
D14.ULTRIMA INSTITLITE (P/LIY)
,
15(:)0. (:)(:I :
D15.DIVER'!s Hlrrl-lSE (F'/EIY)
:3 :
50 (3 (11(1) :
WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
1 !
I (->(-I
I-> (-1 !
D
1 G . I I O L LWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
I E FEES F AWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
R ,(F/KlY)

A.
B.
C.
C1.
D.
Dl.

I
I

I
I

.-I

.
.

1
1

.-I

<r

i
l

I
t

.-I

(->

ADVANCED MEDIA GROUP

Page 56 of 76

05.03.2007

Case: 15-3400

Document: 003112117809

Page: 160

Date Filed: 11/02/2015

Page 157 of 221


t l 1 7 . El-ITLER HI:IILI::;E
( F/DY )
[IlE:. IIHARLIE":_: [ : A D I N ( P / D Y )
I:119. C:HARLIE":i; [ICIC:~::: ( P / [ I Y )
D31. 1_7lIlNTR1]LLER.':f; Rr:l:lPl
( F / [IY
t121. ROLLER ClIlASTER ( F'/DY )

E.
El.
E2.
F.
G.
GI.
H.
I.
J.
K.
L.
M.
N.
0.
P.
Q.

R.
S.
T.

1(1)(1)(1) (1)(1) :

75 (1, (1)(1) :
:>0 (1) (1)(1) :
2(j0.(:)(:I :
1(:)(:)(:)
00 :

I
I

O F F I C E RENTAL-WILDWOOtI(P/DY
OFFIIZE El2IlIPMENT (F'/WP:)
,
E D I T RM RENT-W 1LtlWOi1t1 ( P/DY )
CAR RENTALS-2 C? 8 NO
BUS RENTALS (CREW-ROUND T R I P )
:
M I N I VANS ( 6 VEH C? 2 NO)
L A TO NY DRIVER-HOTEL h FD/DY
:
SUNDRY EMPLOYEES ( 6 P A / 10 WK')
:
E D I T O R I A L EQUIP-WILDWOOD ( F ' / M O ) :
1
G R A T U I T I E S (P/WK)
I
SCOUTING ti PRE-PRODUCT I O N
PERMITS
CREW ENTERTAINMENT
OTHER - I D L E SUN ( S X 5 5 )
OTHER
CREW HOTEL
I
OTHER - CREW P.D.
(60x56)
OTHER - I D L E SAT ( 8 x 5 5 )
OTHER - WILDWOOD PHONE (F'/WK)
:
MISCELLANEOUS
8

II

I
I

I
I

II

II

.
.
.
. (1) (1

(1)(:I )(: (:
2 25 (1) (1) (:
: : 1 (1) (1) (1)C

::

)(:

.- (I)c,:

.
. C)(.

:I:(1,(1)(1) (1)(:
- .

8(3. (110:
450. (ji):
40. 0(?:
650.00 :
1150. 00 1
8C)C).00 :
150. 00 :
250.00:
1900. 00 :
500.00 :
1500.00 :
200.00:
1000.00 :
90.00 : F .1 .
4-~:?~,':.
40.00 1
90. 00 :
900.00 :

J J

9/-.(1)(1).
OC
7650. (:I(:
c C) (1)(:
1(1)4 (11(1) (1)(:
1150 0i
96(:)(:)0(:
2 1c10. a(:
15(:)(?0.
(I(:
4275. (I(
50(?0.0(.
3000. (I(
:34(:)0.OC
100C)O.O(
3960(1.o(
104(+0C);-[)C
10400(:).
396C)(?.0 :
15300. (1
.-a

.I

C.

.
.
.
.

(!

l
e

II

I
I

--------------;--------------

-----------------------------------I-------

TOTAL LOCATION EXPENSES:

I
I

-----------------------------------I-------

I
I

.i.

543:335. (1;

--------------(--------------

I
I
I
I
13. TESTS AND RETAKES:
I
A.
TESTS/RETAKES- 1 DAY EA :
I
(1.
D I R OF PHOTOG ( P / I l Y
600.00 :
12(:)0. 0
CAM OPER ( P / D Y )
340.00 :
k.30. 0
MIXER ( P / D Y )
275.00 :
550. (1)
BOOM ( P / D Y
235.00 :
4 7(1) (11
GAFFER ( P / D Y )
235.00 :
470. (7
KEY G R I P ( P / D Y )
235.00 :
4 70 0
235.90:
470. O
PROPMASTER ( P / t l Y )
WARDROBE ( P / D Y )
235. 0(:):
47(1) (1'
MAKE-UP/HAIR
(P/DY)
235. oo :
4 70 (1)
SCRIPT ( P / D Y >
235.0014 7(:I 0
PAM (P/LIY)
55(1).00 :
55(:).[>
RICE (P/DY)
550.00 :
5 5 ~ 1c;.
I
OVERT IME ( 10%
>
682. c>
I
I
E. IJNDERWATER PHOTOGRAFHY:
C'
4 ROUND T R I P TO F L O R I D A
6.00. 00 :
2400 (1)
M I A M I HOTEL ( 4 X 2 )
3(:)(:)(11
100. 00 :
50. (I(:, :
2C1@.(1
PER D I E M ( 2 X 2 )
CAR RENTAL ( P / D Y )
1 (:I(:)
(1.
50. (10 :
500. 90 :
1 (1)(1) cj
CAMERA RENTAL ( P / D Y >
2(:)(:).
<)(I
:
4(:)0.(.:
INCIDENTALS ( P / D Y )
UNDERWATER D I R PHOTO ( P/DY )
5(1)0 (1)c1 :
10(I)O.(I!
UNDERWATER c7AM AS:3T ( P / D Y )
500. 0 C ) :
1(1)(1)(1: 1.-c
n /
:
,E:.ECTF:IC:
(P/trY)
23:). (:)(I:
ELECTRIC ( P / D Y )
2:3(1) (I)o :
5(-(>.
..
ELECTRIC: ( P / D Y >
2: (1) (1)0 :
54.0 (1;
.'. C'(-)- (1)(I)
GRIP ( P / D Y )
5 6.(1) (1;
.-.
GRIP WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
( P / ~ I Y ) WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
L -1(I)
: (I)(I) :
3/.(1) (1;

.
.
.
.

.
.

.
.

.
..
.- .
- - .
1

L ' - a

ADVANCED MEDIA GROUP

Page 57 of 76

.-,

05.03.2007

.
.
.

Case: 15-3400

Document: 003112117809

Page: 161

Date Filed: 11/02/2015

Page 158 of 221

:3AFTEY 11
I VER

F'/lIY )
lIlN 1I:fiMERA [I I VER ( F'/ DY )
/:::IT FEE ( F L A )
ClVERT I ME ( FLA- l O % )
N 1:~;C:ELL+?NEI~II-I~
F 1LM tc F'F;I:IC:ES;S
( :SEE ~ C I S )T
(

TI~ITRL TE:Z;TS AND RETAKES:

I
t

.L

20 :

.
.
.
.
.
.
2(1)7 5 (1) . (1)(1)

2:E:C). (y) (1) r


- (11(1) ;
5 (1) . (1)(1) :

I
I

.-I

I:.

5 6.(1) (1)(1)
7k. (1) (1)(1)
10 0(I)(:)(:I
4.6 : (): (1)
0 (1)

4
I

II

I
I

I
I

I
@

I
I

I
I

I
I

(:)(:I

-----------------------------------I------------~---------------'---------------

-----------------------------------'------------;--------------TOTAL SET LlESIGN/LOCATION/TESTS:

---------------

................................................................................

................................................................................
14. IZUTT I N G F I L M LABORATORY
: tlAYS/l-JEEES :
RATE
I
I

103&.&.87.
5C)

TOTAL

--,--------------------------------~------------l---------------~--------------I

I
I

E D I T O R (P/WK)
ASST EDITOR (P/50 HR WK)
SOUND CUTTER ( P / 5 0 HR WK)
MIASIC CUTTER ( P / 5 0 HR WK
N E G A T I V E CUTTER ( P / R E E L )

4.
E.
C.
D.
E.

tI
I
I
I

I
I

I
I

:2 :

--.

N E G A T I V E P I X RAW STOCK ( F / F T )
:
G.
N E G A T I V E SOUNI! RAW STOCK ( F i / F T ) :
H.
TRANSFER F I L M TO V I D E O ( P / H K )
:
I. DEV A C T I O N (NO TAX P / F T ) C! 65% :
J.
XFER SOUND (NO TAX P / F T ) @ 65% :
E. P R I N T A C T I O N ( 1 2 ( I ) K x 0 5 % ) - I N C L T A X :
L
F'R I NT SOl-lND ( 146K:<&5%
> -INCL TAX :
M.
MAGSTR IPE-PRODUCT ICiN P/REEL
I
N.
MACiSTR IPE-SCORE.~IDUEB INla/P/REEL
:
1 .
INTERNEGAT IVE
aI
P.
INTERPOS IT IVE
a
3.
hNSWER P R I N T ( I N O L TAX)
I
R.
CI:IMPI:ISITE
CHECK P T ( I N C L TAX )
:
:=7.
FADE/DISSOLVE/DUPE/FINE GRAIN
:
T.
T I T L E S - M A I N k END
aI
1-1.
PROclECT ION-W ILDWOlSD ONLY-NC@LAE :
V.
CI:[I ING-SYNC SOUND P / F T
I
W.
CClDING-W I L D TRACE P / F T
t6
X.
MOV IOLA RENTAL ( P/WK
I
I
Y.
REELS % LEADER (P/WK)
1
Z
C:UTT 1NG ROOM !::llPPL 1 ES
AA. STOIZK SHOTS
I
EB. /:::EMh SUPPLY RENTAL
Ia
CC. ED I T O R I A L CREW OVERT IME ( 10%) :

I
II

I
t

-----------------------------------'------------*---------------'-------------7-,
I 1-1 i
iz:!-!TT 1 :<:;,
1 ., ,.
- .Is;;& 7 .11fi)':

--

1(1) :

2400. 00 :
1000. 0(1):
1425. OC) :
1425.00:
53:). (10:

aI

24 :
24 :
10:

8a

F.

. h3 ~ :6
.025 :
c
-1

I
I

1257 :

(-I.-.
- - II

.:3375:
(j
-3c.I
&a%.

10 :
10:
1.11:
1.11 1
1:
..::A5 :
4C) :
1:
:3 :
1.5:
1.5:
24 :
-24:
24;
1:
15:

L,

Zz(1) (:)(I) :

7:30(:)0. (30 :
9 1000. 06 :
7:3000. 00 :
1(1)(30.o(51

:30

.
.

)(:

:EX:) 00 :
'.?50(:), (10:
C/5(:)0. 0(j:
1(:)(:I (:)I
00 :
75(:)0. 510 : -

:
12(j(jo (:I(:) :
2(j(1) C) (1) :
-5'500.00 :
c.. .-I(-)(-)
~ - e - .C)(] :
13;).

tj(:)

.
.

150.
5(j
13 1 )
3(1)(1)(1)
1y j 0 .

00:

.(j(3 :
.(1)(1) :
.0 (1) :
:

I
I

I
I

-\

-:

120000. (20 :
14(1(1(:)(:) o(j :

576.(:)0. (I(
24(j(?O.(I(.
1425(1).()I(
114(1)(j.
d.-I(-1
ec
- (-1- (1),:
(1)i:
39 1~ ( 5 . 0 ; :
350(1).Oi..
lzz(). (:)
1(j(j38. /,(:
2730. (:I(:'
24325. (:)(I;
345:::. (jC:
3(1)(1) (1)(:
E:(1)(11 (1)c;
1(115 4 5 c): (1:
10545. (I(:'
1ocjOc:). (:)(
3(3E:7 st:.
6000 ,c: (1:
12 (1)(1)0 (1)(I.
16 0(1) (1)(1:
14250. (:I(:.
14 25(j (:I(::
:.. 6 00 (I
(I)
12(2 (1) (1) -1
:: 6.(1)(1) i t r:
:30 (1)(1) (1)
2:35(1) (1) (1) (1;
11275. (:)(:I

.
.

.
.

.
.
.

.
.
.
.
.

.
.
*

.-,.-. L
.=..:*q
--..:.,qi

-----------------------------------'------------;---------------l---------------

WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
ADVANCED MEDIA GROUP

Page 58 of 76

05.03.2007

(I)!T'
i

Case: 15-3400

Document: 003112117809

Page: 162

Date Filed: 11/02/2015

Page 159 of 221


_____--____________--.--------------'-I----------~---------------'--------_
1 5 . MI-1;:;

1 11::

II

<

0
I

FF\'ENII:H L IC:/:::-l::l~l:~;T TlIl C:lIlMF'LETE


I_II\I~IER:~C:IIIRE-I~:I~I:~T
TI] C:l:lMF'LETE
TRANSFER.:;
:sTIIIC:t:x (TAX 1NC:LIJDED)
EDITINO (P/REEL)
M I :f;rZELLANElSUS ( 5%)

A.

B.
C.
[I.

E.
F.

----,------------------------------*------------*---------------;-------------TOTAL MI-IS1C:

:
II
I
I

II

I
I

.Us-.-

1I
1I
(1):: :

1
-.:-.a

'2
.. II

10 :

I 2 (1)(11(:) (1) . (11


:3(1) (1)(1)(1) , (11
4 5 (1) . (1)
.a
.. .-I.>
c.-,c

12 (1)(1)(1)(:I
(:I :
:(I
(1)(11(1) (:) (1) :
15 (1)(1) (1) 1
15 (1)(1)(1) 0 (1) :
1(1)(1)(1) 00 :

.
.

.
.

a
I

I
I

I
I

I
I

I
I

I
I

.
.
.
.

.-t

1 (:)(1)(1)(:) (1)
(-)

(-1

1rCa140:_:.
5

-----------------------------------;------------l---------------'-------------I

1(-.

::;ilUND :

E.
C.

D.
E.
F.
Y

I .

H.
I
J.
K.
L.
M
N.

0.
P.
I!.
;

R.
S.
T.
1
1
.

Dl-ISBING ROOM RENTAL


LABOR FOR PRE-DUB,
ETC (HHS)
LAPIIR FOR DUB ( 3 M I X E R / 3 0 HR)
F'OWER S T A T I O N @ ADD 50%
SOUNF FX PACKAGE ( P / R E E L
STOCK (PRE-DUB P / R O L L I N C L T X )
STOCK (DUE P / R O L L I N C L T X )
ADR, LClOPI NG, NARRATICIN ( P / H H )
!STOCK ( RENTAL
TRANSFERS (P/HH)
STOCK INCLIJEIING TAX
L ~ I C ~ELI
P ITOR:?;
WALLA GROUP
FOLEY (SOILNTI F X / H R )
STOCK (RENTAL)
TRANSFERS ( HOURS
STOCK INCLUDING TAX
FOLEY WALKERS (HRS)
DUPE TRANSFER
STOCK 1NC:LUtIING TAX
SCREEN ING ( F/HR )

tI

I
I

A.

I
I

22;
18:

90 :

I
I

I
I

II

10 :

:
I
I
I

I
I
I
I
I
I

101
10:
36 :
10:
15:

.C)2(s.b:

1:

1:

I
I

45:

1
I

aI
I
I

I
I
I

I
I

10:
15:
.02&.4:
36:
3:

.026G :
8:

20(j. 05, :
4 C) (1 c) :

.
(1) .c (1) :
z[;)(j(:)
.(1) :
/; (11

I
I

f-1

26.4.3 :
6 3 . 5'[3 :
250. @(I :
215. (30 :
75.00 :
3(1)(3(1)(3 (1)(1:
.:.-.
. .-,
s=(1)(1) (1) 0 :
:3(j(j(:).
00 :
2 5 (3 (1)(11:
.-,c (:)C) :
75. 00 :
3(:)(:)(5 (1) o(:) :
L O . 0~:):
75 (1)(1) :
3:0
)(1)0 (1)(3 :
.-I (-1
- (1)~:) :

.
.

L -1

.
.
.
.
.
.

.
.
.-*
- (1) .i)
5 (1)(:) (1)(11.(1)

4 4 0 (1)
7 2 (1)(11 (1)
54(:)(30.(1)
.Xs-/
A a-m
C*(-1

24.t..c

.
.

c.:35' (1.

9(1)
(1
250. c
1125. c
798. 0
35CHI (1)
3C 1 0 (1) 0
11250. CI
2 5 (3 (11
1125. (3
7.33. c:
2 16,(1) (1)
6.(1)(1) (I!
7 9 c. (-!.
4(11(1) (:!

.
.
.

a-

#-,

.
.
.
.
.C!

-----------------------------------;------------1---------------*--------------

TCITAL SI:ICIN[I:

1:34359.::

-----------------------------------+---------;---------------a-------------I
I

I
I

I
I

I
I

I
I

II

1
I

-----------------------------------;------------s---------------t--------------

GRAND TOTAL CI_ITTING/FILM/LAB

...............................................................................

/.7*5"39 1 9

WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
ADVANCED MEDIA GROUP

Page 59 of 76

05.03.2007

Case: 15-3400

Document: 003112117809

Page: 163

Date Filed: 11/02/2015

Page 160 of 221


17.

F'l-1tLIC:ITY:

G!I-/ANTI TY

I
8

A.

RRTE

T 111
T iiL

II

AKIVERT 12;I NG
I
I
E. 1-IN I T F'I-IBL IC: ITY F'ER::;l:lN
I
I
C:.
ENTERTAINMENT
I
[I.
TRA[IE/NEWSPAPER SUBSCR 1PT IONS
:
E.
PI-1BLIC:I TY ST I L L S SALARIES
I
a
F.
PI-IFL IC: I TY ST I L L S St-IPPL IES/EQI_I IP :
13.
F'I1FLIII:I TY S T 1 L L S L A B CHARCiES
I
H.
S T I L L GALLERY RENTAL/EXPENSE
:
I. TRAILER
I
.-I.
PRESS PREVIEW EXPENSE
8
1
I:::.
SUPPL IES/PnSTAC;E/EXPRESS
tI
L
MI SI:ELLANEIII-IS
I
I
M.
OTHER
I
N.
OTHER
0I
0.
OTHER
II
I

.
.
.(1

(.

(:

I
I

1I

tI

I
I

I
1

8I

I
1

1
I

8
1

1a

tI

tI

aI

I
I

I
I

I
I

. (1

a
1

4I

.-

TOTAL PUBLIC ITY:

.i
.
.
.
.
(:

(.

(.

18.
A.

B.
C.

D.
E.
F.
13.
H.

I;

MISCELLANEOUS
VACATION ALLOWANCE (DGA)
RETROACTIVE WAGE CONTINGENCY
SI-INDRY UNCLASS IF I E t I EXPENSE
CIIISTS
IN SUSPENSE ( E PEETERS)
SET COFFEE
WATER %
. .ICE
OTHER
OTHER
OTHER

T I ~ T A L M I SlZELLANEl:lU!::

1F/.

1NSURANC:E/TAXE!E;/L 1CENSE/FEE!Z:

I
48

aI

I
I

I
I

I
I

.a7292 1

:
1

(.

.(:
.
(:

8I

41

oo(:).

1 : ( 50,

aI

8:

k.CI

I
I

S:

6 (1(1 (3(:I

a
I

at

aI

aI

0I

81

t
1

I
I

I
I

I
I

I
I

I
I

I
I

I
I

I
I

.t

(I(:)
)

4::: (11 0
4:30(1)

(
(

.
.(1
(.

(.

.C

19121m

CAST 1N!slJRANC:E
NEGATIVE 1NSURAblrI:E
L IFE IN:XIRANCE
M ISC:ELLANEI~I-I!~1NSI-IRANCE
I::OMF' Zc PI-IELIC: L I A B I L I T Y I N S
S1:rCIkL :3ECI-IR 1.rY T&X
F'ERSONAL PRlItPERTY 1NSLIRANIZE
W1IlRk::ER .':f; C:I]WFENSAT 1IIIN TAX
1I:IltIE C:ERT IF I C:ATE - MPAA
C I T Y TFiX AND LICENSE
1-INEMPLI:I\'MENT TAX ( I T A T E
IINEMF'LIIYPIENT TAX ( F E D )
HZrW/F'ENS ION-NAFET ( F'/EIY )
F'ENyZ;I ON F'LAN-C!IIi# ( 5 . 7(:):3%
)

(.

.
.
7.5(1) (1) .
.
&.&,27:3.
?.
.
43:::45. :I:(:
(I)(I) .
.
-=,4 7.~-2
(
(

(:)

(.

.-.

j.-.

7 4 1 5 . '.
74(:)91:)
.;
7 4 5:::

WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
ADVANCED MEDIA GROUP

.
.
.
.

.O C ) :

1:

.
.i
.i
.i

-----------------------------------;------------;--------------I

(:

Page 60 of 76

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Page 161 of 221


1
N.
1-1.

F'.
I:!.

F'AYROLL :!;ERVIC:E
NI::;~::ELLANEI:II-I:::
CITHEK
OTHEFi
OTHER

WA IVELI )

I
I
I

II
I

4.

II

aI

1I

I
4

----------------:------------:---------------:-------------I

TOTAL IN:SI-IF(ANCE/TAX /L IC:ENSE/FEES:

.c
.--;1 1 -: .=:1 . :.
-I._

--------------------I------------:---------------:-------------I
I

20. GENERAL 1:lVERHEAD:


I
A.
F L A T C:HARGE
I
I
E.
C:CIHF'ORATE OVERHEAD EXPENSE
I
C.
CASTING O F F I C E S A L A R I E S
II
D. ENTERTAINMENT-EXECUTIVES
,
t
I
E.
TRAVEL EXPENSE-EXECUTIVES
I
I
F.
S F F I C E RENTAL AND EXPENSE/P MO I
F1. O F F I C E R E N T A L S / S U P P L I E S / P WK
:
G. AUDITClR
I
H. T IMEKEEPER
I
I. SECRETAKI ES
8
I
.-I.
P U B L Ii: R E L A T I O N S HEAD
I
1::.
P U B L I C R E L A T I O N S SECRETARY
I
I
L.
LEGAL FEES ( P / H R )
I
M.
FOSTAGE/TELEPHONE/P W E
I
N.
CIJST1:lMS
BROKERAGE
I
I
O.
GENERAL OFF I C E OVERHEAD
eI
P.
F I L M SHIPPING
a
I
T.
OTHER
a
I
1-1.
OTHER
0I
V.
ClTHER
I
I
I

I
I

.;

TOTAL GENERAL OVERHEAD:

I
I

1I

-----------------------------------,------------:---------------:--------------21.
A.

FINANCE
S ROE I

I
I
I
I

C.

n.

Cl~lMPLETI O N Bi:lNu-Nl:l
CONT 1NGENCY

CLAIMS

I
I
I
I
I

-<.:.
C"
,1(I(:)
&

I
I

.05:
4 0(1)0 000 (10 :
.a2751
4000000. 00 :
.c)275:(4(~[~o[:)[:)(:).i)~:))
:
:33/.7.5[:)
00
2.:
.l:
I

.O

-----------------------------------:------------:---------------;--------------

206 :)00.
(I(
1 1 )(IC)C). (11,

.o(

33/-.75[:).
2:

-----------------------------------o------------:---------------:--------------.

GRAND TOTAL BELOW THE L I N E

I
I

I(:) 11(-).529;

__------------------------------------___-----------------------------------/ '7
I

WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
ADVANCED MEDIA GROUP

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Page 162 of 221

May 21, 1987

Stan Caterbone
Financial Management Group
1755 Oregon Pike
Lancaster, Pa. 17601

Mr.

Dear Stan:
At your request I've investigated the requirements of the Completion Bond.
Bert Schneiderman of Worldwide Completion Services in New York
has given me a figure of 5+%, excluding contingencies, with a
50% No Claims Bonus. Since Bert also owns BonBon Payroll Service
he has agreed to waive the payroll fee if we use their bonding
service,
Requirements: They need copies of the budget and/or production
board, resumes for the director and producers as well as copies
of their contracts and any other production agreements which
have been completed.
Further they need to know when we will commence principal photography, editing location and if we intend to have a distribution
deal up front.

I spoke to Jerry Vandersonde and Bill Hudson of DeWitt Stern Insurance in Los Angeles, who were recommended by Worldwide. Since
I couldn't show him a budget or a script we did some educated
guessing and came up with a figure of approximately $75,000. The
Production Package policy should include: General liability, cast
insurance, negative film, faulty stock and camera processing,
props, sets, wardrobe, rented equipment, extra expenses, third
party property damage, non-owned auto, Errors and Ommissions
including a one year bond and a minimum workmen's comp policy
for anything that is not covered by workmen's comp.

I understand you're going to Wildwood this weekend. We need to


house a crew of about 60-80, production offices, catering service.
We'd like to get as many free extras as possible and need high
quality promo type giveaways. For screen credit, of course. If
you have any such contact we'll need mutant dolls (500?) and if
you can h ~ l pbrinq dow? lor~'<cn costs that would be great. I'm
tzikrng about beaches, aricsezents, the pier, parking facilities.
p:-ob~L
p k r SCII

TY

-3

h?~?!'=

f5=* 1

WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
ADVANCED MEDIA GROUP

Page 62 of 76

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Page 163 of 221

FLAT
M s . E l l e n Libman
Power S t a t i o n , I n c .
4 4 1 b7est 53rd S t r e e t
New York, N.Y. 10019

Dear E l l e n :
B a r b a r a a n d I h a v e mapped o u t a s k e l e t o n s c h e d u l e f o r o u r t r i p
t o N e w York a n d I t h o u g h t I ' d s e n d i t o f f a n d see i f i t w o r k s
f o r e v e r y o n e e l s e . By t h e way, w e ' v e d e c i d e d t o s t a y i n N e w
York u n t i l T u e s d a y i n s t e a d o f Monday a s o r i g i n a l l y p l a n n e d .
Thursday

A r r i v e a b o u t 3:OOPM. You h a v e t h e e x a c t t i m e
s i n c e y o u ' v e booked o u r f l i g h t s .
Please let
u s know i f someone w i l l p i c k u s u p o r i f w e
should take a t a x i .
W e ' l l come t o Power S t a t i o n a n ? g i v e y o u a n d

Tony c o p i e s o f t h e s c r i p t a n d b u d g e t w h i c h w e ' d
l i k e you t o r e a d Thursday n i g h t .
B a r b a r a a n d I h a v e a d i n n e r m e e t i n g w i t h a Direct o r of Photography.
Friday

Leave f o r New J e r s e y i n t h e morning. D i s c u s s


s c r i p t and budget.
Meet Mayor o f Wildwood and b r i n g him a s y n o p s i s
o f s c r i p t which h e h a s r e q u e s t e d .
Meet w i t h S t e v e G a r e l i c k , t h e P r o d u c t i o n C o o r d i n h t o r o f t h e N e w J e r s e y F i l m Commission.
Look a t l o c a t i o n s .

Saturday
Sunday

S t a n C a t e r b o n e a r r i v e s i n N e w J e r s e y . Meet t h e
r e p from Maury's P i e r t o d i s c u s s l o c a t i o n costs.
Check o u t h o t e l s f o r c r e w a n d c a s t .

Monday

L a s t m i n u t e S e t a i l s i n New J e r s e y .
L e a v e f o r Mew York a r o u n d n o o n .
M e e t i n g s a t Power S t a t i o n f o r f i n a l d i s c u s s i o n s
about s c r i p t , budget, contracts, etc.

Tuesday

Tuesday A f t e r n o o n
L e a v e N e w York a p p r o x i m a t e l y 4 F Y t o a r r i v e
L o s A n g e l e s a b o u t 9PM.
I ' l l t a l k t o you a g a i n b e f o r e w e l e a v e
i n planning your schedules.
4334 STERN M..SHERMArd OAKS. C A 91
cc:
S t a n CWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
aterbone
(616) 905-3C;7
WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW

arbara
ADVANCED MEDIA B
GROUP

Peters

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FIATBUSH
F LMS,NC.
M s . Ellen Libmn

Power Station, Inc.


441 West 53rd Street

NAJ York, N.Y. 10019


D e a r Ellen:

Let's t r y it again. This time we are scheduled to leave Los Angeles


on Thursdzy, 3~124 =id r2tu.m t3 L3s Arigsles cii T~esZa-;., 2.,z?e 9. 3.e
f o l l m h g is a rough schedule.
Arrive a b u t 3:OOPM. Please l e t us know the exact
f l i g h t information as soon as possible so we can
arrange aAprt t r a n s p r t a t i o n here. L e t us h o w
if sa-neone will pick us up in New York o r if we
should arrarge t r a m p r t a t i o n to Power Station.
Also l e t m e krvJw what hotel we w i l l be booked a t
in New York so we can leave that information here.
We'll ccrne to Power Station for any discussion
r e g a r m the s c r i p t and/or budget.

Barbara and I have a dinner meeting with a D i r e c t o r


of Photography.

Friday

Leave for New Jersey in the ~mrning. Meet with


Steve Gorelick, the Production Coordinator of the
New Jersey Film Carmission. Look a t locations.

Saturday

Stan C a t e r b n e arrives in New Jersey. Meet the rep


r a n Maury's Pier t o discuss location costs.
Check out hotels for crew ard cast.

Iast minute d e t a i l s in New Jersey.

Ieave f o r New York a m u d m n .


Meetings a t P a e r Station f o r final discussions
about script, budget, m t r a c t s , etc.
Additional meetins in mrning i f necessary.
W v e New York appr-tely
4R.I to arrive Los
Angeles about 9R1.
Please l e t m hxx if y m have any additions o r changes. I ' l l probably
talk t o w u again on Wrday.

wards,

cc: S t a n Caterb31le
Barbara Peters

Arlene
4334 STERN AVE., SHERMAN OAKS.CA 91423

WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
(818) 995-3417
ADVANCED MEDIA GROUP

Page 64 of 76

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FLATBUSH
F IMS,NCl
Page 165 of 221

J u n e 1 2 , 1987

Mr. Stan Caterbone


Financial Management Group
1755 Oregon Pike
Lancaster Pa. 1 7 6 0 1
Dear Stan:

As you requested here's a schedule for Project 4 4 1 (mrking t i t l e ) :


PFE-PrnCrION

June 28-Julv 11, 1987


July 12-Sep't 5 , . 1987

New York

New Jersey

8weeks

New Jersey

8 5 day weeks

POSFPRODUCTION

Nwenber 1-January 30,1988

New York

In order to s t i l l g e t the film made this season we've got to speed everythug
W e originally planned four weeks of pre-production in New York lxlt that's
rn longer possible. If we start June 28 we've got only ten weeks to g e t t h e
mutant effects going a d then w e ' l l have to schedule mutant scenes later in

up.

the film i f they aren' t ready.


This schedule also takes us to October 31 f o r the end of the shoot, which means
we've got to schedule exteriors f i r s t , leaving the i n t e r i o r s f o r later in the
w e n t of bad weather.
S i x e we're on such a t i g h t schedule I can't r e a l l y break down the costs f o r
you because it w i l l a l l start h a p p n h g so quickly. W e ' l l imnediately have a
New York office, per dim, btel and coneacted fees f o r Barbara and myself.
W e ' ll h i r e a casting director, production manager, p r d u c t i o n coordinator ard
location manager, g e t the mutant e f f e c t s started a d begin hiring key personnel.
I f p check the m e t you'll see the actual number of weeks of employrent
f o r new. There w i l l be legal fees f o r pcepariq contracts. Wing those tm
weeks we' ll hopefully do mst of the casting.

4334 STERN A N . , SHERMAN OAKS. CA 91423


(818) 995-3417
WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
ADVANCED MEDIA GROUP

Page 65 of 76

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Page 166 of 221

IXlring the eight weeks of pre-production in N e w Jersey w e ' l l be m r m


with the art director, costane designer, s e t decorator, building s e t s ,
tying d m locations, e t c

A week before shooting the f u l l crw w i l l be prepping. The editor w i l l


a r r i v e a t about t h a t lime and w i l l be mrlung on a rough cut during the
entire shooting period.
A t the close of production Barbara, the editor an3 I w i l l m e back to
New York f o r a three m n t h editing period a t the en3 of which we will
deliver the finished film, includmg d i s t r i b u t o r ' s requirements an3 the
MPAA rating.

As you can see this w i l l be very tricky but I s t i l l think we can do it


i f Barbara ard I are in New York no l a t e r than June 28.
Hope this helps.

cc: Tony Bongiovi


Barbara P e t e r s

WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
ADVANCED MEDIA GROUP

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Advisory, Inc.
r

C-

11. 7755 Oregon Pike

Laocaster, PA 17607

777-569-4100

ftYAWCUI N A N I C r M t U I U O U P LID

STANLEY J. CATERBONE
PRESIDENT

May 29, 1987

Mr. Joel ~oidhammer


Sidel, Gonda, Goldhammer, Abbott
2 Penn Center
Suite 1800
Philadelphia, PA 19102
Dear Joel:

I received the enclosed correspondence regarding Power Station


I have yet to have a chance to review this, however,
Studio.
I thought it might be helpful.
Please keep all of this on
file as confidential and please do not make any communications
with anyone until I learn more about the situation.
Power Station does not know that I have you working on this
yet.
Good Luck.
a

Sincerely,

Stanley J. Caterbone
SJC:lmk
CC

encl

WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
ADVANCED MEDIA GROUP

Page 67 of 76

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w-

L A W O f FICES

--L

SEIDEL,G O NDA, GOLDHAMMER& ABBOTT,P. C.


PATENT A N D T R A D E M A R K A T T O R N E Y S
S U I T E 1800 TWO P E N N C E N T E R

PLAZA

P H I L A D E L P H I A . PA. 19102
ARTHUR

TELEPHONE:(PIB) 5 6 8 - 8 3 8 3

H. SEIOEL

J O E L S. GOLDHAMMER
MICHAEL P. ABBOTT

2 5 J u n e 1987

TELEX: 8 4 5 - 2 1 6
C A B L E : SIPAT
T E L E C O P I E R . ( P I S I 568- 5 5 4 9

GREGORY J. LAVORGNA

G R O U P I , I 1 6 111

DANIEL A. MONACO
R O 9 E R T H. HAMMER Ill

EDWARD C . GONOA

THOMAS J. DURLING

(1930- 1985)

STEPHEN J . MEYERS
AMANDA L A U R A N Y E *

OF COUNSEL
SYLVIA A. G O S Z T O N Y I
STANLEY H. Z E Y H E R

NANCY A. R U 9 N E R
SCOTT J . FIELDS
* D C 6 NY BARS ONLY

M r . Stanley Caterbone
FMG A d v i s o r y , I n c .
Eden P a r k I1
1 7 5 5 O r e g o n Avenue
L a n c a s t e r , PA 1 7 6 0 1
RE:

Power S t a t i o n
Our F i l e :
7351-G

Dear Stan:
C

I h a v e now r e c e i v e d t h e r e s u l t s o f a s e a r c h
I have a l s o reviewed t h e f i l e
p e r t a i n i n g t o t h e above s u b j e c t .
f o r w a r d e d w i t h y o u r l e t t e r o f May 2 9 .
T h e f o l l o w i n g i s my
a n a l y s i s and e v a l u a t i o n o f t h e r i g h t t o u s e "Power S t a t i o n " a s
d e f i n e d below.
As I understand the situation, your business c l i e n t ,
Power < t a t i o n S t u d i o , h a s , s i n c e 1 9 7 7 , o p e r a t e d a r e c o r d i n g
s t u d i o with a widely regarded reputation f o r providing high
The
q u a l i t y recording s e r v i c e s using s t a t e of t h e a r t equipment.
e n c l o s e d r e p o r t r e v e a l s t h a t Power S t a t i o n s t u d i o h a s r e g i s t e r e d
t h e t r a d e m a r k "Power S t a t i o n " f o r sound r e c o r d i n g s t u d i o s .
(See
You h a v e a s k e d m e
Reg. No. 1 , 4 3 3 , 3 2 8 r e g i s t e r e d March 1 7 , 1 9 8 7 . )
t o i n v e s t i g a t e t h e p o s s i b i l i t y o f Power S t a t i o n e x p a n d i n g t h e u s e
o f i t s mark i n t o m e n ' s a n d women's c l o t h i n g i n c l u d i n g b e a c h w e a r ;
and f o r audio and video e l e c t r o n i c s f o r consumers and
I have assumed t h a t t h i s l a t t e r c a t e g o r y i n c l u d e s
professionals.
radios, television receivers, video c a s s e t t e recorders, a u d i o
r e c o r d e r s , compact d i s c players, turn tables, amplifiers,
r e c e i v e r s , t u n e r s , c o n t r o l p a n e l s , mixing b o a r d s a n d c o n s o l e s ,
among o t h e r t h i n g s .

B a s e d u p o n t h e r e s u l t s o f t h e e n c l o s e d s e a r c h , i t is
my o p i n i o n t h a t i t w o u l d b e i n a d v i s a b l e f o r Power S t a t i o n , I n c .
t o u s e i t s m a r k f o r c l o t h i n g a s a f o r e s a i d . T h e b a s i s f o r my

WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
WWWWWWWWWWWWWWWWWWWWWWWWWWWWWWWW
ADVANCED MEDIA GROUP

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Page 169 of 221

25 J u n e 1987
~A

Mr.

S t a n l e y Caterbone

o p i n i o n i s R e g i s t r a t i o n No. 1 , 4 3 1 , 2 4 2 r e g i s t e r e d M a r c h 3 , 1 9 8 7
f o r "Power S t a t i o n " .
The r e g i s t r a n t c l a i m s a f i r s t d a t e o f u s e
of A p r i l 3 , 1986 f o r women's c l o t h i n g i n c l u d i n g swimwear a n d
o t h e r goods as l i s t e d .
A l t h o u g h y o u r c l i e n t h a s a s t r o n g r e p u t a t i o n , and
a l t h o u g h i t h a s p r i o r i t y of use f o r t h e mark, t h i s r e g i s t r a n t h a s
a s t r o n g p o s i t i o n f o r arguing t h a t it has superior r i g h t s f o r
women's c l o t h i n g .
One w o u l d n o t o r d i n a r i l y a s s o c i a t e c l o t h i n g i n
a n y way w i t h r e c o r d i n g s t u d i o s e r v i c e s .
Thus, your c l i e n t ' s
r i g h t s i n i t s mark d o n o t a p p e a r t o d o m i n a t e t h o s e o f t h e
registrant's.
A c c o r d i n g l y , u s e o f t h e Power S t a t i o n m a r k f o r
women's ( o r m e n ' s ) c l o t h i n g w o u l d i n v o l v e a s i g n i f i c a n t r i s k o f
being accused of trademark infringement.
Use o f t h e P o w e r S t a t i o n m a r k f o r c o n s u m e r a n d
p r o f e s s i o n a l a u d i o a n d v i s u a l e l e c t r o n i c e q u i p m e n t r a i s e s some
i s s u e s , b u t o n t h e w h o l e I am o f t h e o p i n i o n t h a t i t i s
permissible.
Again, I assume, a s I have been informed, t h a t t h e
Power S t a t i o n s t u d i o i s w e l l known a n d d o e s h a v e a g o o d
G i v e n t h a t , i t s movement
r e p u t a t i o n f o r its e x i s t i n g s e r v i c e s .
Here t h e g o o d
i n t o e l e c t r o n i c equipment s h o u l d be p e r m i s s i b l e .
w i l l a s s o c i a t e d w i t h i t s c u r r e n t s e r v i c e s c a n b e more r e a d i l y
extended to audio v i s u a l e l e c t r o n i c equipment.

T h e s e a r c h r e v e a l s t h a t M a n v i l l e C o r p o r a t i o n ' s Ken
C a r y l R a n c h i s t h e o w n e r o f t h e mark " P o w e r S t a t i o n " f o r b a t t e r y
o p e r a t e d emergency e l e c t r i c a l power s u p p l y u n i t s .
S e e Reg. N o .
1 , 0 4 0 , 3 9 8 r e g i s t e r e d May 2 5 , 1 9 7 6 a n d c l a i m i n g a f i r s t d a t e o f
u s e o f November 2 3 , 1 9 7 0 .
I n my o p i n i o n , a u d i o v i s u a l e l e c t r o n i c
equipment c a n be c o n s i d e r e d to be s u f f i c i e n t l y u n r e l a t e d t o
emergency e l e c t r i c a l power s u p p l y u n i t s t o a v o i d a l i k e l i h o o d o f
c o n f u s i o n even though t h e marks a r e i d e n t i c a l .
I r e a c h t h e same c o n c l u s i o n
a p p l i c a t i o n by E l e c t r i c a l C o n d u c t o r s , I n c .
power s t r i p .

r e g a r d i n g t h e pending
for a multiple outlet

A c l o s e r q u e s t i o n is r a i s e d b y G o u l d ' s S u p p l e m e n t a l
R e g i s t e r r e g i s t r a t i o n f o r Power S t a t i o n f o r m i n i a n d
microcomputers.
G o u l d ' s mark i s r e g i s t e r e d o n t h e S u p p l e m e n t a l
R e g i s t e r u n d o u b t e d l y b e c a u s e "Power S t a t i o n " a s a p p l i e d t o
computer equipment is considered to b e d e s c r i p t i v e .
A
Supplemental R e g i s t e r r e g i s t r a t i o n h a s none o f t h e p r o c e d u r a l
Moreover, i f
benefits of a Principle Register registration.
G o u l d ' s u s e of t h e m a r k is l i m i t e d t o a p a r t i c u l a r m a r k e t w h i c h

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A

Mr.

25 J u n e 1987

Stanley Caterbone

is d i s t i n c t f r o m y o u r c l i e n t s , t h e r e d o e s n o t a p p e a r t o b e a
likelihood of confusion.
T h u s , G o u l d may b e s e l l i n g i t s
computers i n t o a s p e c i a l i z e d commercial market i f i t is p r e s e n t l y
s e l l i n g computers a t a l l .
Next I c a l l y o u r a t t e n t i o n t o t h e f a c t t h a t s e v e r a l
r a d i o s t a t i o n s have a d o p t e d and a r e u s i n g t h e t r a d e m a r k "The
Power S t a t i o n " i n various c i t i e s throughout t h e United S t a t e s .
Conceivably, t h e s e radi'o s t a t i o n s c o u l d o b j e c t t o t h e
i n t r o d u c t i o n o f consumer e l e c t r o n i c s i n t o t h e i r m a r k e t a r e a on
t h e g r o u n d t h a t t h e u s e o f t h e s a m e mark i m p l i e s s p o n s o r s h i p b y
I n o t e t h a t a l l o f t h e s e m a r k s were r e c e n t l y r e g i s t e r e d ,
them.
and I s u s p e c t t h a t a l l of t h e s e r a d i o s t a t i o n s are r e l a t e d or
c o m m o n l y owned.
I a l s o s u s p e c t t h a t t h e a d o p t i o n o f t h i s ark
may b e o f r e c e n t v i n t a g e .
Thus, your c l i e n t i n a n y n e g o t i a t i o n
w i t h t h e s e p e o p l e would h a v e t h e a d v a n t a g e o f b e i n g a p r i o r u s e r ,
and t h e r e l a t i o n s h i p between r e c o r d i n g s e r v i c e s a n d e l e c t r o n i c
e q u i p m e n t o n t h e one hand and r a d i o s t a t i o n s e r v i c e s and
e l e c t r o n i c equipment on t h e o t h e r hand is a t l e a s t c o - e q u a l .
Thus, y o u r c l i e n t should have t h e dominant p o s i t i o n .
I n v i e w o f t h e f o r e g o i n g , i t i s my o p i n i o n t h a t T h e
Power S t a t i o n s h o u l d n o t a d o p t o r u s e "Power S t a t i o n " f o r men's
a n d w o m e n ' s c l o t h i n g , b u t i t may a d o p t a n d u s e t h e m a r k f o r
p r o f e s s i o n a l and consumer e l e c t r o n i c s a s d e s c r i b e d above w i t h t h e
u n d e r s t a n d i n g t h a t t h e m a t t e r is n o t e n t i r e l y w i t h o u t d o u b t a n d
issues could arise.
I t i s , h o w e v e r , my o p i n i o n , b a s e d u p o n t h e
f a c t s p r e s e n t l y a v a i l a b l e to me, t h a t The Power S t a t i o n , I n c .
should p r e v a i l i f those issues a r i s e .
I f you have any q u e s t i o n s c o n c e r n i n g
p l e a s e f e e l f r e e to c a l l me.

the foregoing,

With k i n d e s t p e r s o n a l r e g a r d s ,
Sincerely yours,
SEIDEL GONDA, GOLDHAMMER
& ABBOTT, P. C.

JOEL S . GOLDHAMMER
JSG:mp
Encl.

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JOINT Vf%TUilE PAKTICIPATICft AND CQflMBUTIQU

The u n d e r s i g n e d , i n t e n d i n g to be l e g a l l y bound, i n c o n s i d e r a t i o n o f h i s
adInissim as a p a r t i c i p a n t in the j o i n t v e n t u r e t o be known as "PWER PRO-

DUCTIONS I" an3 r e c e i p t o f a profit/loss d i s t r i b u t i o n s h a r e of

of

such j o i n t venture, hereby d e c l a r e s ard aclcmwledges h i s i n t e n t to participate


i n such j o i n t v e n t u r e and hereby covenants and a g r e e s to a n t r i b u t e t h e sun of
to t h e c a p i t a l o f such j o i n t venture, which sum s h a l l c o n s t i t u t e

h i s i n i t i d c a p i t a l account i n such j o i n t venture.

T h i s L e t t e r of I n t e n t is e n t e r e d i n t o by t h e u n d e r s i g n e d upon t h e
following general under stand ing :

Power P r o d u c t i o n s I w i l l be a j o i n t v e n t u r e t o be
formed u n d e r t h e l a w s of P e n n s y l v a n i a , h a v i n g t h e

.,
s p e c i f i c purpse t o i n v e s t (loan) its funds t o MUTANIA
PRODUCTIONS,

INC.

to

finance

production o f a motion p i c t u r e .

such c o r p o r a t i o n ' s
The j o i n t v e n t u r e

s h a l l r e c e i v e f u l l repayment o f i t s i n v e s t m e n t from
MUTAXIA PRODUCTIONS, I N C . b e f o r e the d i s t r i b u t i o n o f
any p r o f i t s to any party. T h e r e a f t e r , t h e j o i n t v e n t u r e
s h a l l r e c e i v e 50% o f t h e p r o f i t s from s u c h m o t i o n
p i c t u r e , o f which 85% s h a l l be d i s t r i b u t e d t o t h e

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mn-managing

joint v e n t u r e r s

i n c l u d i n g t h e under-

s i g n e z ) and 15% s h a l l be d i s t r i b u t e d t o S t a n l e y J.
C a t e r b o n e a s t h e Eanaging J o i n t V e n t u r e r o f Power
P r o d u c t i o n s I. Tbe j o i n t v e n t u r e s h a l l have a r i g h t o f
f i r s t r e f u s a l to finance t h e next movie p r o d u c t i o n o f
MUTANIA PRWKTIONS,

INC. and/or ' I W Y BONGIOVI

Tfte ckdersigned qrees t h a t he w i l l execute and d e l i v e r a counterc o u n t e r p a r t o f t h e j o i n t v e n t u r e agreement (which s h a l l be c o n s i s t e n t with the
a b o v e g e n e r a l u n d e r s t a n d i n g ) and t h a t h e w i l l execute and del'iver dl docunents required f a r t h e j o i n t venture to elect not to be t a x e d a s a p a r t n e r ship.
Contemporaneous w i t h t h e execution o f t h i s Letter o f I n t e n t , the undersigned is cmntributing 10% o f h i s total agreed c o n t r i b u t i o n , or $

r-3

w i t h i n f i f t e e n ( 1 5 ) days f r a n t h e d a t e hereof, time being o f t h e essence, t h e


-

undersigned s h a l l m n t r i b u t e t h e 90% balance, or $

Such c o n t r i-

b u t i o n s h a l l b e h e l d by S t a n l e y J. Caterbone a t i n t e r e s t , pending campletion

of alL n e g o t i a t i o n s ard execution ard d e l i v e r y of iii documents w i t h MuTA~IA


PRODUCTIa~S, INC.

I f s u c h n e g o t i a t i o n s , d e l i v e r y , and execution are mt m ~ l e t e dw i t h i n


t h i r t y (30) days a f t e r the f u l l c o n t r i b u t i o n is made, the e n t i r e c o n t r i b u t i o n ,
w i t h all i n t e r e s t earned thereon, s h a l l be returned to t h e d e r s i g n e d without

demand.

S t a n l e y J. Caterbone s h a l l ' be r e s p o n s i b l e f o r c o l l e c t i o n , receipt,

i n t e r i m i n v e s t m e n t and management, and u l t i m a t e investment or r e t u r n of a l l


f d s m t r i b u t e d , and s h a l l be t h e Managing J o i n t V e n t u r e r o f t h e j o i n t

venture.

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The u n d e r s i g n e d h e r e b y a u t h o r i z e s and anpokers S t a n l e y J. Caterbone to


n e g o t i a t e , execute, and d e l i v e r a l l d o c u m e n t s n e c e s s a r y or r e q u i r e d t o
implement t h e j o i n t v e n t u r e p u r p s e and to t a k e all other a c t i o n s an3 n q o t i a t e , execute and d e l i v e r a l l o t h e r d o c u m e n t s n e c e s s a r y

or d e s i r a b l e t o

implement or e f f e c t u a t e t h e j o i n t v e n t u r e pnpose.

SIGN
( L . S . ) Date: May

NAME:

,1987

NAME:

ADDRESS:

CITY:

STATE:

ZIP:

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RICHARD C. FOX, PC.


ATTQRNEYS AT LAW

1015 ROBERTj VALLEY ROAD

HARRISBURG, PENNSYLVANIA inlo


RICHARD C FOX'
('ADMn'TED ALSO FLORIDA)

May 20,

1987

S t a n l e y J. C a t e r b o n e
FMG A d v i s o r y , I n c .
Eden P a r k 11, 1755 Oregon ' p i k e
L a n c a s t e r , PA
17601

Mr.

For P r o f e s s i o n a l S e r v i c e s rendered i n connection w i t h


Power P r o d u c t i o n s I , i n c l u d i n g c o n f e r e n c e , p r e p a r a t i o n o f
L e t t e r o f I n t e n t , a n d e x p r e s s m a i l i n g , .and f o l l o w - u p t e l e p h o n e
check.

P r o f e s s i o n a l Fee
8

UdP.S.

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Ted Gotnillion, President

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Gomillion: mini-major in the heart of Hollywood


O N F OF; the rtlo\r inlereclirlg

<iomillron also cpent time on


\ u c h T V \eriec as "fhe
Monroes". "Follow The Sun",
and "Jessie James".
Ted Gomillion wac the firct to
develop a mobile sound stlldio, a
specla1 trarler urlrt that 15
equipped to project "dailies"
and provide orr-locatior~"looprng".
"Our
unrque units hare
proven to be a ver) valuable aceet
arid have become a lucrati\e
\ o u r c e o f revenue."
\ard
(iomillior~,who offered that the
units habe been ured or1 Tiltnc
such as Sam Peckinpah'c "Jr
Ronner";
"Get-Away";
(it)lduy~l'\ "(ira\\tiopper".
"The Cir~ccon~
(;ango; Harhrn
Strercand'c "The blaln E \ e r ~ t " :
"Too
1 ate r h e I i e r o " ;
"Grizzly Adarns" arid "Tom
Horn". The round units have
also been used by such television
shows as "Canney
. & Lacev" and
"C'hipc"
Paramout~t and 20th ('enturq
The (joniillion Studioe facrlrFox.
The executi\c filni-milker tles are SO coniplete that each 01
spent seven years at the Fox r r c prc>ductronollicec can he (u\t
Studior, earned t w o Peahody about uced to live In while
Award\ for excellence, and was production i c in progress. kach I \
rnvolved with such notable equ~ppedu i t h a hart1 and kitchen
productions as "Rally Round area and there ic also R rectarrratlt
and
catering
f~~cilr
The Flag Pole". "State 1-arr".
"let's blake Lore". " F l a ~ i i ~ n g Addit~onally, a \ n u l l exerchc
room complete u r t h rauna.
Star" and "Way Way Out ".

By Ron Krueger

"\tarc~ol-the-art" facrlit~es in
lioll!uood IS rlie (;ornrllron
St~rdro\,Ireaded h \ lilrn ~ r ~ t l u r t r !
phrase ' n ~ i n i - r n a j o r ' . " \ard
veterarl Ted (iomrllion.
Gon~rllron rn d c t c r ~ h i n g his
The cry-hurlding cortiplex
\I\I~IOS.
prov~de\otle o l the mort techr~o(;omillron production chief
logically ad~anccdcourid \\age\
Adan1 (buck added tliar, " A l l
alorig with a 46-IIIIII
burldrng
they hare to do IS L.ortle in wrth a
contalnrng officec and editing
scrrpt and they can *alk out o f
\uites
here wrth a lir~rshedproduction.
The sound stage hac a 45-footWe have done w o r k l o r
wide. floor-to-ceilrng \creen.
cotnpaniec l'rorti all around the
ceare 150 people and i e one o l the
world, I t a l y , Mexico. The
few re-recording ctagec arourid
Philrppinet. the UK and rtlany
the world that 1s capahle o f
tnore."
handling any type o f f i l m
Ciomillion al\o taid. "LVc rake
format. including 70mrn sixgreat prrde 111 our wtirk.
track discreet. or video.
e\pec~allvnur looprr~gfacrlity lor
C o r ~ ~ p l e n ~ e r ~the
t r r ~ g\ophr\trforeign lilrnc."
cated projection sy\teni 15 an
(iornillion'c experience in the
equally advanced cout~d and
film industry cpanc 3 0 years a r ~ d
dubbing syctem which provides r t ~ c l u d e s e x p e r i e n c e
111
flexibilitv and extremely accurate
product ron and post -production
reproductron for re-recording or
at hl(;M. Drcney. rodd A - 0 .
playback o f anv eound format.
C'olu~tihia. Warner. lInlrer5al.

"We provide e\ery \errice.


frorii pre-production. cound
stage connectlone, location
\I~c>oting and
all
po\tproduction. I n other words, we
prorrde all cervicec and facilitiec
as the major jtud~oc around
town, hut at 3 fractiori o f the
co\t. That's why we corned the

weightr and jacurr~ ts a\ailahle


lo production execirtl\es u o r k ~ r ~ g
long hours.
-<iornillion own5 all of II\
burldrngc and tand, uhlch are o n
McC'adden Place In Ilollyuood
w ~ t h ~ an short distance from
nlarl) nlajor labc, sound stagec.
Set
and c o \ t u m e rerltal
companies and an excellent breu
o f the world famou\ "t4ollymood" cigr~which trtr in a \lately
poeirron high in the tlolly\rood
Hill\.
The latect connection thar
entrepreneur (i01111111011 ha\ jet
up to round out hi\ lacllit) I\
called I'oct I'ro ( oriiplerror~ IIIL.,
*I11ct1 I\ 21 l r r l ~ l r l ~ l r kl g
lllll ~~llll\
v.III gi\c u\ a conlpic~c;Irrarlperllerlt

Good investment
"Any film\ that hake had
major filming completed and u e
feel that there i c a eood investnient, our new financial agrecmetlt will give Ciomillion the
opportunity o f linichrng the
caid
post-production."
Gomillion.
"We \\rII ccir~lrr~rrc
to cxpar~ll
and add Inore properr\, hrrt ;]I
rhe moment. ire oller O I I ~ ot the
ir~
~I v
. c r t '~IIII~I-\IIIL~I~I\'ITI the
hu\ine\\ and rrght III the r ~ l ~ ~ i d l e
01 Clollvwood."

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STAN J. CATERBONE
BIOGRAPHY

Present I have been a victim of organized stalking since 1987 and a victim of electronic and direct
energy weapons since 2005. I had also been telepathic since 2005. In 2005 the U.S. sponsored mind
control turned into an all-out assault of mental telepathy; synthetic telepathy; and pain and torture
through the use of directed energy devices and weapons that usually fire a low frequency
electromagnetic energy at the targeted victim. This assault was no coincidence in that it began
simultaneously with the filing of the federal action in U.S. District Court, or CATERBONE v. Lancaster
County Prison, et. al., or 05-cv-2288. This assault began after the handlers remotely trained Stan J.
Caterbone with mental telepathy. The main difference opposed to most other victims of this technology
is that I am connected 24/7 with a person who declares that she is Interscope recording artist Sheryl
Crow of Kennett Missouri. Over the course of 10 years I have been telepathic with at least 20 known
actors and have spent 10 years trying to validate and confirm this person without success. Most U.S.
intelligence agencies refuse to cooperate, and the Federal Bureau of Investigation and the U.S.
Attorney's Office refuse to comment
In 2009 Advanced Media Group Proposed ORGANIZED STALKING AND DIRECTED ENERGY
WEAPONS HARASSMENT BILL to Pennsylvania House of Representative Mike Sturla (Lancaster,
Pennsylvania) and City of Lancaster Mayor Richard Gray in 2009. The draft legislation is the work of
Missouri House of Representative Jim Guest, who has been working on helping victims of these
horrendous crimes for years. The bill will provide protections to individuals who are being harassed,
stalked, harmed by surveillance, and assaulted; as well as protections to keep individuals from
becoming human research subjects, tortured, and killed by electronic frequency devices, directed
energy devices, implants, and directed energy weapons.
In 2005 I, as a Pro Se Litigant filed several civil actions as Plaintiffs in the United States District Court
for the Eastern District of Pennsylvania, the United States Third District Court of Appeals, the
Pennsylvania Supreme Court, The Pennsylvania Superior Court, the Commonwealth Court of
Pennsylvania, The Court of Common Pleas of Lancaster County, Pennsylvania. These litigations included
violations of intellectual property rights, anti-trust violations, and interference of contracts relating to
several business interests, harassment, extortion, fraud, etc.,. . Central to this litigation is the Digital
Movie, Digital Technologies, Financial Management Group, Ltd,/FMG Advisory, Ltd., and its affiliated
businesses along with a Federal False Claims Act or Federal Whistleblowers Act regarding the firm of
International Signal and Control, Plc., (ISC) the $1Billion Dollar Fraud and the Export violations of
selling arms to South Africa and Iraq. This litigation dates back to 1987. I was a shareholder of ISC,
and was solicited by ISC executives for professional services.
From 2002 to 2004 I engaged in full-time online day-trading of securities and the selling of
merchandise on eBay.
In 2000 to 2002 Advanced Media Group developed an array of marketing and communication tools
for wholesalers of the AIM Investment Group and managed several communication programs for
several of the company wholesalers throughout the United States and Costa Rica.
In 1999 Advanced Media Group was solicited and paid to develop a comprehensive business plan to
develop the former Sprecher Brewery, known as the Excelsior Building on E. King Street, in Lancaster,
Pennsylvania by 2 Lancaster County restaurateurs. This plan was developed in conjunction with the
Comprehensive Economic Development Plan for the Revitalization of Downtown Lancaster and the
Downtown Lancaster Convention Center for the former Watt & Shand building.
In 1998 I administered the charity giving of Toms Project Hope, a non-profit organization promoting
education and awareness for mental illness and suicide prevention. We had provided funding for the
Mental Health Alliance of Lancaster County, Contact Lancaster (The 24/7 Suicide Prevention Hotline),
The Schreiber Pediatric Center, and other charitable organizations and faith based charities. The video
"Numbers Don't Lie" have been distributed to schools, non profit organizations, faith based initiatives,

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and municipalities to provide educational support for the prevention of suicide and to bring awareness
to mental illness problems.
In 1996 Advanced Media Group had done consulting for companies under KAL, Inc., during the time
that I was controller of Pflumm Contractors, Inc., Advanced Media Group was retained by Gallo Rosso
Restaurant and Bar to computerized their accounting and records management from top to bottom. I
had also provided consulting for the computerization of accounting and payroll for Lancaster Container,
Inc., of Washington Boro. I was retained to evaluate and develop an action plan to migrate the
Information Technologies of the Jay Group, formally of Ronks, PA, now relocated to a new $26 Million
Dollar headquarters located in West Hempfield Township of Lancaster County. The Jay Group had been
using IBM mainframe technologies hosted by the AS 400 computer and server. I was consulting on the
merits of migrating to a PC based real time networking system throughout the entire
organization. Currently the Jay Group employees some 500 employees with revenues in excess of $50
Million Dollars per year.
In 1993 to 1998 I was retained by Pflumm Contractors, Inc., as controller, in efforts to stave off a
potential bankruptcy. I was responsible for implementing computerized accounting, implementing
Management Information Systems, accounting and contract policies and procedures, human resource
policies and procedures, marketing strategies and programs, performance measurement reporting, and
administrative and office procedures and logistics. Within 3 years, the company realized an increase in
profits of 3 to 4 times its previous years, and recorded record revenues.
In 1991 Advanced Media Group was elected to People to People International and the Citizen
Ambassador Program, which was founded by President Dwight D. Eisenhower in 1956. The program
was founded to To give specialists from throughout the world greater opportunities to work together
and effectively communicate with peers, The Citizen Ambassador program administers face-to-face
scientific, technical, and professional exchanges throughout the world. In 1961, under President John F.
Kennedy, the State Department established a non-profit private foundation to administer the program.
We were scheduled to tour the Soviet Union and Eastern Europe to discuss printing and publishing
technologies with scientists and technicians around the world.
In 1990 Advanced Media Group had worked on a project to develop voice recognition systems for the
governments technology think tank - NIST (National Institute for Standards & Technology) and the
Defense Advanced Research Project Agency, or DARPA of the Department of Defense. I co-authored the article
Escaping the Unix Tar Pit with a scientist from NIST that was published in the magazine DISC, then
one of the leading publications for the CD-ROM industry. Today, most all call centers deploy that
technology whenever you call an 800 number, and voice recognition is prevalent in all types of
applications involving telecommunications.
In 1989 I founded Advanced Media Group, Ltd., and was one of only 5 or 6 U.S. domestic companies
that had the capability to manufacture CD-ROM's, which at the time was a new and advanced
technology in its early stages of being commercialized from research and development. We did
business with commercial companies, government agencies, educational institutions, and foreign
companies. I performed services and contracts or prepared proposals for a host of domestic and foreign
companies including but not limited to: for the Department of Defense, NASA, National Institution of
Standards & Technology (NIST), Department of Defense, The Defense Advanced Research Projects
Agency (DARPA), and the Defense Mapping Agency, Central Intelligence Agency, (CIA), IBM, Microsoft,
AMP, Commodore Computers, American Bankers Bond Buyers, the Library of Congress, Exxon, Tandy
Computers/Radio Shack, and a host of others. I also was working with R.R, Donnelly's Geo Systems,
which was developing various interactive mapping technologies, which is now Map Quest. Map Quest is
the premier provider of mapping software and applications for the internet and is often used in
delivering maps and directions for Fortune 500 companies. We had arranged for High Industries to sell
American Helix, the manufacturer of compact discs, to R.R. Donnelly & Sons of Chicago, Illinois.
American Helix was later sold to KAO Industries. We were also the exclusive marketing agent and
partner with a Boston, Massachusetts software engineer in the selling of a software developed to
diagnose and test CD-ROM drives called CD-Diagnostics. The program was sold to both domestic and
foreign companies and was then under review for company-wide distribution by Microsoft Corporation.

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In 1987 Power Station Studios of New York retained my services as executive producer of a motion
picture project. The theatrical and video release was to be delivered in a digital format; the first of its
kind. We had originated the marketing for the technology, and created the concept for the Power
Station Digital Movie System (PSDMS), which would follow the copyright and marketing formula of the
DOLBY technology trademark. We had also created and developed marketing and patent research for
the development and commercialization of equipment that we intended to manufacture and market to
the recording industry featuring the digital technology. Sidel, Gonda, Goldhammer, and Abbot, P.C. of
Philadelphia was the lead patent law firm that We had retained for the project. Power Station Studios
was the brainchild of Tony Bongiovi, a leading engineering genius discovered by Motown when he was
15. Tony and Power Station Studios was one of the leading recording studios in the country, and were
responsible for developing Bon Jovi, a cousin. Power Station Studios clients included; Bruce
Springsteen, Diana Ross, Cyndi Lauper, Talking Heads, Madonna, The Ramones, Steve Winwood, and
many others. Tony and Power Station Studios had produced the original Sound Track for the original
Star Wars motion picture. It was released for distribution and was the number one Sound Track
recording of its time. Tony Bongiovi was also active in working and researching different aerospace
technologies. * We had developed and authored a Joint Venture Proposal for SONY to partner with us in
delivering the Digital Movie and its related technologies to the marketplace. The venture was to include
the commercialization of technologies, which Tony Bongiovi had developed for the recording industry
simultaneously with the release of the Digital Movie. I also created the concept for the PSDMS
trademark, which was to be the Trademark logo for the technology, similar to the DOLBY sound
systems trademark. The acronyms stand for the Power Station Digital Movie System. Today, DVD is
the mainstay for delivering digital movies on a portable medium, a compact disc.
In 1987 I had a created and developed FMG Mortgage Banking, a company that was funded by a
major banking firm in Houston Texas. We had the capability to finance projects from $3 to $100 million
dollars. Our terms and rates were so attractive that we had quickly received solicitations from
developers across the country. We were also very attractive to companies that wanted to raise capital
that include both debt and equity. Through my company, FMG, we could raise equity funding through
private placements, and debt funding through FMG Mortgage Banking. We were retained by Gamillion
Studios of Hollywood, California to secure financing of their postproduction Film Studio that was looking
to relocate to North Carolina. We had secured refinancing packages for Norris Boyd of and the Olde
Hickory and were in the midst of replacing the current loan that was with Commonwealth National
Bank. We were quickly seeking commitments for real estate deals from New York to California. We also
had a number of other prominent local developers seeking our competitive funding, including Owen
Kugal, High Industries, and the Marty Sponougle a partner of The Fisher Group (owner of the Rt. 30
Outlets), and Drew Anthon of Eden Resort Inn. We were constantly told that our financing packages
were more completive than local institutions.
In 1986 I had founded Financial Management Group, Ltd (FMG) and served as Executive Vice President
and President of FMG Advisory, Ltd., the investment advisory subsidiary. FMG was a large financial
services organization comprised of a variety of professionals operating in one location. We had
developed a stock purchase program for where everyone had the opportunity for equity ownership in
the new firm. FMG had financial planners, investment managers, accountants, attorneys, realtors,
liability insurance services, tax preparers, and estate planners operating out of our corporate
headquarters in Lancaster. In one year, we had 24 people on staff, had approximately 12 offices in
Pennsylvania, and several satellite offices in other states. We had in excess of $50 million under
management, and our advisors were generating almost $4 million of commissions per year, which did
not include the fees from the other professionals. We had acquired an interest in our own Broker Dealer
firm and were valued at about $3 to $4 million in 1987.
In 1985 I developed the Easter Regional Free Agent Camp, the first Free Agent Camp for the
Professional Football industry; which was videotaped for distribution to the teams scouting
departments. (See Washington Post page article of March 24, 1985) Current camps were dependant
on the team scouts to travel from state to state looking for recruits. We had developed a strategy of
video taping the camp and the distributing a copy, free of charge to the teams, to all of the scouting
departments for teams in all three leagues FL, CFL and WFL. My brother was signed at that camp by
the Ottawa Roughriders of the CFL., and went on to be a leading receiver while J.C. Watts was one of
the leagues most prominent quarterbacks. My brother also played 2 years with the Miami Dolphins
while Dan Marino was starting quarterback. We were a Certified Agent for the National Football League

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Players Association. Gene Upshaw, the President of the NFLPA had given me some helpful hints for my
camp, while we were at a Conference for agents of the NFL. The Washington Post wrote a full-page
article about our camp and associated it with other camps that were questionable about their practices.
Actually, that was the very reason for our camp. We had attended many other camps around the
country that were not very well organized and attracted few if any scouts. We had about 60
participants, with one player coming from as far away as Hawaii. We held the camp at Lancaster
Catholic, with a professional production company filming the entire camp, while I did the editing and
produced the video. The well respected and widely acclaimed professional football scout, Gil Brandt, of
the Dallas Cowboys, had given me support for my camp during some conversations We had with him
and
said
he
looked
forward
to
reviewing
the
tapes
for
any
hopeful
recruits.

In 1985 I was elected Vice President of the Central Pennsylvania Chapter of the International
Association of Financial Planners, and helped build that chapter by increasing membership 3to 4 times.
We had personally retained the nationally acclaimed and nationally syndicated Financial Planner, Ms.
Alexandria Armstrong of Washington D.C.; to host a major fundraiser. More than 150 professionals
attended the dinner event that was held at the Eden Resort & Conference Center. Ms. Armstrong
discussed financial planning and how all of the professions needed to work together in order to be most
effective for their clients. We attracted a wide variety of professionals including; brokers, lawyers,
accountants, realtors, tax specialists, estate planners, bankers, and investment advisors. Today, it has
become evident that financial planning was the way of the future. In 1986 executives approached us
from Blue Ball National Bank to help them develop a Financial Planning department within their bank.
From 1982 to 1985 I was a financial planner for IDS/American Express and licensed in both securities
and insurances.
From 1977 to 1981 I operated SJ Caterbone Painting and Renovating was was a contractor
responsible for painting and renovating residential, commercial and residential properties and facilities
in Lancaster County.

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Stan J. Caterbone
ADVANCED MEDIA GROUP
1250 Fremont Street
Lancaster, PA 17603
scaterbone@live.com
717-669-2163

October 10, 2015

Federal Whistleblower
and
Targeted Individual (Victim)
of U.S. Sponsored Mind Control
Executive Summary
Updated on October 10, 2015

I remain,

Stan J. Caterbone

PRIVILEGED AND CONFIDENTIAL: Stan J. Caterbone, Pro Se Litigant, and the Advanced Media
Group are victims of U.S. Sponsored Mind Control and has been engaged in litigation in both
Federal and State courts seeking financial remedies and a resolution of his Civil Liberties and
his Constitutional Rights. In 1987 Stan J. Caterbone, while managing the financial firm the he
founded, Financial Management Group, Ltd., Stan J. Caterbone became a Federal Whistleblower
when, as a shareholder, he claimed fraud and misconduct within the international arms dealer
and local start-up International Signal & Control, Plc., Some 4 years later ISC was indicted and
plead guilty to the 3rd largest fraud in U.S. history, some $1 Billion and selling arms to Irag via
South Africa. In June of 2015 Stan J. Caterbone became the Movant in the U.S. District Court
for the Eastern District of Pennsylvania case No. 5:14-cv-02559-PD for the Habeus Corpus
Petition of Lisa Michelle Lambert. The case is now before the U.S. Third Circuit Court of
Appeals, Case No. 15-3400.

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ADVANCED MEDIA GROUP


ADVANCED MEDIA GROUP, LTD.,
&
STAN J. CATERBONE
Federal Whistleblower (Federal False Claims Act Violation in 1987 re ISC)
Targeted Individual of U.S. Sponsored Mind Control
and Directed Energy Devices and Weapons

EXECUTIVE SUMMARY
copyright 2009

Ya know what, I am beginning to analyze this War on Terror and am having difficulty understanding
it all. To me the most effective fundamental fight against Extreme Terrorism is to reduce the motive; or the
Hatred Against America. No one seems to talk about that subject. How do we reduce that Hatred Towards
America and the West?
See, from my perspective, my situation is very disturbing. I mean we have the United States Torturing Me, a
U.S. Citizen for no good or valid reason. I have warned EVERYONE about using my situation to feed this
HATRED towards America.
Low and behold a week or so ago I have had several Muslims sign up as Followers to my
www.scribd.com/amgroup01 online webspace, which I use to post documents. The following being the most
prominent IKWAN Scope, "The Largest Muslim Brotherhood's Scope on the Web":
http://ikhwanscope.net/main/
There have also been several Muslim individuals who signed up as followers around the same time, a week
or so ago. They have also signed up as followers on my www.twitter.com/StanCaterbone webspace.
You must understand, I am a VERY Patriotic Person and live a very patriotic life - I believe in the
U.S. Constitution and Our Founding Father's vision for America; I support Our Military and our
Troops; I believe in the Rule of Law; I am a Practicing Catholic, and have been my whole life; I
Believe in the TRUTH; I believe in Right v. Wrong; Good v. Evil; and finally I believe in God. What
do you believe in?
Posted on the Yahoo Fulton Bank Stock Message Board, January 7, 2010

Date Updated:

October 10, 2015

Date Completed:
Date Initiated:

July 28, 2009


July 8, 2009

Stan J. Caterbone
Advanced Media Group
scaterbone@live.com
www.amgglobalentertainmentgroup.com

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In 2015 Stan J. Caterbone and Advanced Media Group had to again return to local,
state, and federal courts. Again the obstruction of due process, the local gang stalking, torture,
trespass, thefts, and the like began in earnest.

From the fabricated Petition for Involuntary

Psychiatric Commitment of April 2010 by Detective Clark Bearinger, until January of 2015, Stan J.
Caterbone and Advanced Media Group had been in seclusion and in a state of rehabilitation and
rest due to the forced medication by Fairmount Behavioral Hospital and Dr. Silvia Gratz.

The

psychotropic drugs reduce your motor skills and put you in an extreme state of confusion.

By

the

end

of

the

summer

of

2010

every

social

media

site,

including

the

www.amgglobalentertainmentgroup.com website was taken off-line due to the intimidation and


coercion by Detective Clark Bearinger.
In May Stan J. Caterbone had again endured the Attacks and Torture from the
employees of the Lancaster County Courthouse, and the Lancaster County Government Building.
Then soon after the Residents of Lancaster County engaged in a massive Organized Stalking
Campaign. In addition an extreme Computer Hacking Campaign was initiated and executed in
an effort to again SILENCE Stan J. Caterbone and Advanced Media Group.

And Again, the

Lancaster City Police Department took the lead role. As usual Stan J. Caterbone summoned state
and federal authorities for help and assistance, including direct communications with the White
House, the Federal Bureau of Investigation, the Pennsylvania Attorney General's Office and
Kathleen Kane, The Pennsylvania State Police, the Pennsylvania General Assembly, several U.S.
Congressmen, and of course the Lancaster County District Attorney's Office.

Since August 1,

2015 the Geek Squad had performed diagnostics and repairs six (6) times due to computer
hacking. On at least 2 occasions the entire hard drive had to be wiped clean and restored.
On June 23, 2015 Stan J. Caterbone was named MOVANT in the 2014 Habeus
Corpus Petition by Lisa Michelle Lambert, Case No. 14:02559 in the U.S. District Court
for the Eastern District of Pennsylvania after filing an Amicus on the case. Judge Paul
Diamond was presiding since it's filing in 2014. However, the Petition was not able to
be granted and the case was stalled on jurisdictional law based on new and compelling
evidence, or lack there of.

The Amicus was filed to cure that deficiency with direct

witness corroboration to the Prosecutorial Misconduct and Innocence of Lisa Michelle


Lambert.

In fact a working theory was filed that suggested that the East Lampeter

Police Department engaged in a strategy of Entrapment that lead to the unfortunate


murder in 1991. This, would of course, allow a wrongful death claim to be filed by the
Show family. The case is now before the Third Circuit Court of Appeals, Case No. 153400. There are three (3) questions that the Third Circuit may rule on; whether to free

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Lisa Michelle Lambert, or grant her her Habeus Corpus, and whether to grant Summary
Judgment to Stan J. Caterbone in all civil actions in both state and federal courts.
Two weeks later, on July 9, 2015, Detective Clark Bearinger filed another fabricated
Petition for Involuntary Psychiatric Commitment. And again Stan J. Caterbone endured 7 days in
the Fairmount Behavioral Hospital in Philadelphia.

However, this time there was

no

MANDATORY Treatment Program Ordered by the Lancaster County Court of Common Pleas.
So Stan J. Caterbone continued filing in the courts for assistance and resolution. In August, in a
desperate attempt to stop the local torture campaign, another Emergency Injunction was filed in
the Lancaster County Court of Common Pleas. On August 6, 2015 Stan J. Caterbone went so far
as to undertake a Professional Polygraph Test administered by Bonnie Lee of Polygraph Solutions
of West Chester, Pennsylvania. The test ended up being 4 grueling hours of torture and a scam of
$600.00.
On July 9th , 2015 a Private Criminal Complaint was filed against Detective Clark Bearinger,
Officer Williams, Officer Binderup, and 2 unidentified patrolman.

The Complaint contained

allegations of torture and abuse at every moment of contact.

The Lancaster City Police

Department were so desperate for retaliation from the Amicus filing in the Lisa Michelle Lambert
case, that they actually broke the door in of 1250 Fremont Street in order to execute the
fabricated 302 petition. The Complaint was denied by the Lancaster County District Attorney on
August 8th . The Complaint is now under a Petition for Review by the Lancaster County Court of
Common Pleas.
On August 17, 2015 another Emergency Injunction for Relief was filed in the Lancaster
County Court of Common Pleas, Case No. 15-06985. The Injunction was heard by Judge Jeffrey
Wright, who dismissed it as frivolous. An appeal, MD 1561, is pending in the Superior Court of
Pennsylvania.
In addition, by September 26, 2015 Stan J. Caterbone had been granted Electronic Filing
Privileges in the local, state, and federal courts. This should alleviate the fraud and abuses of the
U.S. Postal Service and the computer hackers.
In 2015 Stan J. Caterbone identifies a trend that suggests that the Lancaster County
community-at-large was subject to either community targeting or community hypnosis.

The

community targeting theory is supported by experts Jullianne McKinney, Cheryl Welsh, and Dr.
John Hall. The community hypnosis theory is supported by direct personal relationships with the
Amazing Kreskin, Samuel P. Caterbone and Stan J. Caterbone.

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In September of 2015 Stan J. Caterbone begins to digitize a library of approximately 45
audio cassette tapes from his father, Samuel P. Caterbone. The tapes range in date from 1971 to
1996. The tapes prove an identical targeting campaign against both Samuel P. Caterbone and
Stan J. Caterbone.

In addition the tapes confirm that Steven P. Caterbone, brother of Stan J.

Caterbone, was most likely a target dating back to the early 1960's. In addition, the death of
Samuel P. Caterbone on July 20, 2001 was confirmed to be that of murder, not natural causes.
In the early 1990's Dr. Phillip Caterbone, brother, had been solicited by the National
Institute of Health, or NIH in Washington, D.C., for a fellowship to research and catalog a study to
find a genetic marker for depression in the CATERBONE family.

Phil interviewed all living

descendants and relatives of my father, Samuel P. Caterbone, Jr., and took blood samples. I am
alleging that this was a deliberate act to continue the cover story of mental illness to distract and
provide plausible deniability for any linkage to U.S. Sponsored Mind Control.

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HISTORY

In 1987 Stan J. Caterbone went public with allegations of fraud within International Signal
and Control, or ISC as they were commonly referred.

After discussions with ISC and United

Chem Con officials (an ISC/James Guerin straw company), and as a shareholder of record since
1983 of ISC, Stan J. Caterbone had a meeting with an ISC executive on June 23, 1987, which
resulted in a 22 year legal odyssey. The discussions involved a joint venture with his company,
Financial Management Group, Ltd., or FMG, Ltd., but ended in disclosure of his recent public
allegations of fraud. Four years later, ISC founder and chairman James Guerin, and other officials
and companies pleaded guilty to a $1 Billion Dollar Fraud and export violations including the
selling of arms through South Africa to Iraq and Sadaam Hussein.

However, money, power,

influence and public corruption had been used to cover-up the activities and Federal False Claims
Act violations of Stan J. Caterbone for the next eighteen years. There ensued a total blockade of
all United States Courts for all redress and remedy available in accordance with federal, state, and
local laws.

This included recovery of his business interests; intellectual property; real estate;

personal and business real property; his unblemished and impressive reputation; and his most
valuable asset - the ability to produce income. This might be legally referred to as the Right-ToWork under federal statutes.

Notwithstanding, Stan J. Caterbone has never made a bad

investment or developed a business that did not make a profit over the next 22 years.

This

includes two real estate properties that were illegally seized through foreclosure proceedings.
Since 1987 Stan J. Caterbone has been a prisoner and enemy of the state.

ISC was a

Department of Defense (DOD) Contractor and a partner with United States Intelligence Agencies
since it's beginings in the early 1970's. One of it's first contracts was Project X with the National
Security Agency or NSA of Ft. Meade, Maryland.
In summary, the following are facts and part of the public record regarding
SIGNAL & CONTROL OR ISC:

INTERNATIONAL

Once the third (3rd) largest employer in the County of Lancaster, Pennsylvania, with
over 5,000 employees.

James Guerin, founder and CEO was once the largest philanthropist to charitable
organizations in the County of Lancaster, Pennsylvania.

The ISC/Ferranti Scandal was the third (3) largest white-collar fraud within the United
States as of 1992.

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The following are some of the public officials and politicians associated with ISC:
George H.W. Bush, former U.S. President, and Director of the Central Intelligence
Agency (CIA).

Robert Gates, former Director of the Central Intelligence Agency (CIA) and current
Secretary of Defense.

Bobby Ray Inman, former Board of Directors if ISC, former Director of the NSA, and
currently associated and directly involved with Mind Control Research organizations.

Alexander Haig, former U.S. Secretary of State, and ISC lobbyist and Board of
Directors?

Joseph McDade, former Pennsylvania House of Representative and Chair of the


Appropriations Committee who was later investigated for the United Chem Con
scandal.

Carlos Cardoen/Cardoen Industries, a joint venture partner with ISC and arms
merchant for the cluster bomb who eventually sold to Iraq and other Middle Eastern
Countries under U.S. sanctions.

ISC was credited with the design of the cluster bomb, and has patents filed in the U.S.
Patent Office.

In 1987 ISC completed the merger with the 3rd largest defense contractor of Great
Britain, Ferranti International; who paid $1 billion dollars for ISC and all of it's
subsidiaries.

ABC News/Financial Times aired 3 episodes on ABC Nightline with Ted Koppel
regarding the ISC/CIA defense weapons; technologies; and cluster bombs to Iraq
story and lead into the allegations that then nominee for the Director of CIA Robert
Gates was involved with ISC and the selling of arms to Iraq.

ABC News 20/20 aired a story on the ISC/CIA efforts to sell cluster bombs to Saadam
Hussein and Iraq on February 1, 1991 days after the start of the Persian Gulf War I,
with the initial bombing raid destroying a cluster bomb factory built in Iraq by
Carlos Cardoen.

On July 1st and 2nd of 1987 Stan J. Caterbone solicited the legal counsel of Lancaster
Attorney Joseph Roda for counsel regarding, FMG, Ltd., International Signal &
Control (ISC); Commonwealth Bank, etc., and was billed for his services. Joseph
Roda did absolutely nothing but refute Stan J. Caterbone's claims and would not
believe him.

In Clark v. Guerin (CI-1990-0074 Lancaster County Court of Common Pleas),


Lancaster Attorney Joseph Roda represented William Clark, ISC's in-house legal
counsel, and never mentioned any conflict to Stan J. Caterbone in 1987.

In Clark v. Guerin (CI-1990-0074 Lancaster County Court of Common Pleas), James


Guerin deposited $1.75 million dollars into an escrow account at Fulton Bank,
Lancaster, County.

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In Clark v. Guerin (CI-1990-0074 Lancaster County Court of Common Pleas),
Christopher Underhill of Harman, Underhill & Brubaker, represented James
Guerin. In 2005 Christopher Underhill represented the Manheim Township Police
Department (05-cv-2288 U.S. District Court for the Eastern District of
Pennsylvania) CATERBONE v. Lancaster County Prison, et. al.,.

In Clark v. Guerin (CI-1990-0074 Lancaster County Court of Common Pleas),


Philadelphia Attorney Joseph Tate represented James Guerin and ISC, and in 2007
Joseph Tate represented Scooter Libby during his federal prosecution by U.S.
Special Prosecutor Fitzpatrick.

THE MANIFEST OF A COVER-UP


Not only did the allegations of fraud within ISC have to be silenced at a time when merger
negotiations were ongoing with Ferranti, but all of the fraud; extortion; public corruption;
burglaries; civil rights violations; anti-trust and intellectual property right violations; lender
liability torts; false arrests; false imprisonments; as well as other civil and criminal activities had
to be covered up and buried in bureaucratic red tape.
uncovered and discovered to this day.

Information and findings are still being

Contrary to popular belief, up until 1996 a grand jury

investigation into ISC was still ongoing. It is not known whether it has closed or not. All of these
activates constitute a RICO crime due to the pattern and organization of the perpetrators. The
pattern and source of the activities can be traced back to 1987, with subgroups changing over
time, but still engaging in the same practices. The following plan of action was followed in order
to perpetrate the cover-up:

Totally discredit Stan(ley) J. Caterbone and any and all allegations in every way
possible.

Fabricate a history of mental illness.


Fabricate a criminal record.
Attach his character and honesty with rumors and propaganda.
Extort and maintain his net worth to $ zero or load him with debts.
Keep him out of any profession and or occupation when and where possible.
Totally isolate him and disenfranchise him from his friends, colleagues, and family
into a life of solitaire.

Somehow persuade the community of Lancaster County to buy into this plan of
action through money, favors, etc.,

Always keep attorneys and anyone remotely involved with the legal community
away at times when efforts for justice are pursued.

When attempts to enter the U.S. legal system arise, isolate, harass, and extort
any monies and/or possessions of value.

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Change the history of events and the truth.


THE COURTS AND THE UNITED STATES LEGAL SYSTEM
For 18 years, (from 1987 until 2005) it has always been fairly easy to keep these issues
from court dockets and judges.

During these years Stan J. Caterbone had solicited at least

twenty attorneys, some from large firms with national recognition in their respective fields of
specialties. Attorneys from New York City to Santa Barbara and San Diego California were visited
and consulted as well as a group of ex FBI agents who specialized in white collar crime that are
now globally recognized. However, the money and influence of persons and entities that wanted
these issues silence always prevailed. The issues were so complex and convoluted, and involved
such high profile politicians and U.S. agencies, it was far easier to state that there was no case, or
their were no claims that would result in remedy or redress. Between the Republican Party and
the Department of Defense, the CIA and the NSA, there was not an attorney that could not be
influenced. The obstruction of justice and due process in this case is most likely unprecedented in
nature and in malice.
However in 2005 that all changed when Stan J. Caterbone appeared as a pro se litigant
representing himself, without any counsel, in the United States District Court for the Eastern
District of Pennsylvania in CATERBONE v. The Lancaster County Prison, et. al., or case no. 05-cv2288.

This case is still not settled and has been withdrawn by plaintiff Stan J.

Caterbone in October of 2008 after a successful ruling in the U.S. Third Circuit Court of
Appeals (07-4474) in September of 2008. The case will be continued upon the security
of evidence and the cease and desist of obstruction of justice and due process. On May
16, 2005 at the Federal Courthouse in Philadelphia, Stan J. Caterbone filed the case under seal.
One week later in the United States Bankruptcy Court for Eastern Pennsylvania in Reading,
Pennsylvania, again appearing as pro se, Stan J. Caterbone filed a petition for protection under
the Chapter 11 Bankruptcy Code, in case no. 05-23059.
These acts of entering the United States legal system with these issues triggered yet
another round of attempts to keep these cases from the courts and judges - Organized Stalking
with Directed Energy Devices and Weapons, built on a foundation of mental telepathy or total
Mind Control.

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REMOTE VIEWING; ORGANIZED STALKING; DIRECTED ENERGY DEVICES AND


WEAPONS.
Organized stalking and harassment began in 1987 following the public allegations of fraud
within ISC. This organized stalking and harassment was enough to drive an ordinary person to
suicide. As far back as the late 1980's Stan J. Caterbone knew that his mind was being read, or
"remotely viewed". This was verified and confirmed when information only known to him, and
never written, spoken, or typed, was repeated by others. In 1998, while soliciting the counsel of
Philadelphia attorney Christina Rainville, (Rainville represented Lisa Michelle Lambert in the Laurie
Show murder case), someone introduced the term remote viewing through an email. That was
the last time it was an issue until 2005. The term was researched, but that was the extent of the
topic.

Remote Viewers may have attempted to connect in a more direct and continuous way

without success.
In 2005 the U.S. sponsored mind control turned into an all-out assault of mental
telepathy; synthetic telepathy; and pain and torture through the use of directed energy devices
and weapons that usually fire a low frequency electromagnetic energy at the targeted victim.
This assault was no coincidence in that it began simultaneously with the filing of the federal action
in U.S. District Court, or CATERBONE v. Lancaster County Prison, et. al., or 05-cv-2288.

This

assault began after the handlers remotely trained Stan J. Caterbone with mental telepathy. The
main difference opposed to most other victims of this technology is that Stan J. Caterbone is
connected 24/7 with a person who declares that she is Interscope recording artist Sheryl Crow of
Kennett Missouri. Stan J. Caterbone has spent 3 years trying to validate and confirm this person
without success. Most U.S. intelligence agencies refuse to cooperate, and the Federal Bureau of
Investigation and the U.S. Attorney's Office refuse to comment.

See attached documents for

more information.
In 2006 or the beginning of 2007 Stan J. Caterbone began his extensive research into
mental telepathy; mind control technologies; remote viewing; and the CIA mind control program
labeled MK ULTRA and it's subprograms.

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FAMILY HISTORY

If you listen to the propaganda machine and the community of Lancaster County,
Pennsylvania, including professionals, the family history of Stan J. Caterbone goes something like
the following:

Father, Samuel Caterbone, Jr., Schizophrenic who ran out on his family
because of nervous breakdowns while trying to run a small dry cleaning
business.

He traveled the world looking for the Blessed Mother Mary and

Space Aliens. He ended up living in government subsidized housing broke


and with a severe mental illness.

Brother, Samuel A. Caterbone, suffered from the very same illness has his
father, Schizophrenia, who finally killed himself trying to live in California.

Brother, Thomas W. Caterbone, suffered from the very same mental illness as
his brother, Stan J., Bipolar Mood Disorder, who ran a lawn business and
finally committed suicide at an early age.

Stan J. Caterbone, suffered from Bipolar Mood Disorder, or Manic Depression and
had a nervous breakdown in 1987 trying to compete in the financial services
industry. When he has his nervous breakdowns, he always threatens to sue
everyone in court and is deeply paranoid in thinking the whole world is
against him. He always spends all of his money during his fits of mania and
has delusions about his success as a businessman.

The Family History was formulated back in the 1960's when Samuel Caterbone, Jr.,
father of Stan J. Caterbone, became engaged in a black budget mind control program that began
during his service in the United States Navy as a radioman and air gunner.

Samuel Caterbone,

Jr., was most likely a direct product of MK ULTRA or one of it's subprograms. His brother, Samuel
A. Caterbone, was most likely part of the LSD experiments of MK ULTRA. Stan J. Caterbone is
most likely part of a program sponsored by the Department of Defense Agencies, such as DARPA
or the Defense Intelligence Agency (DIA). The facts of Stan J. Caterbone's intimate discussions
with both his father and brother over the years before they died, the totality of documents that
were preserved in their estate, including service records; letters; official court papers; high school
documents; and the like - all will prove that they were in fact part of MK ULTRA or one of it's
subprograms.

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The following are the facts and the real record of the family history:
Samuel P. Caterbone, Jr., (Father) served in the Navy from 1943 to 1946 and
graduated with honors from Air Gunners School in Jacksonville, Florida. He was an exceptional
student/athlete while attending Lancaster Catholic High School, participating in the band as well
as sports. He was also his senior class secretary/treasurer. After the Navy, he went on to build a
successful dry cleaning business, which he is credited with inventing a filtration system for the
solvents.

He also developed a very good investment in real estate along the Manheim Pike,

owning several properties. By his own writings and from his personal accounts to me, he was
definitely a remote viewer or data miner for some U.S. Agency with telepathic abilities.

His

viewing is documented to have begun back in the early 1970's. He also suffered from organized
stalking, and was considered an enemy and prisoner of the state. Back in the 1960's, he was a
world traveler, this is documented by his passports. Samuel P. Caterbone, Jr., may have been a
covert carrier for someone in intelligence. Samuel P. Caterbone, Jr., had his mental health history
laced with electro shock therapy. Electro Shock Therapy Experiments is another subprogram of
MK ULTRA. In addition, and especially disturbing is his criminal record with the Lancaster City
Police Department and the Lancaster County Court of Common Pleas.

In 1973 Samuel P.

Caterbone, Jr. was convicted of forging a 2 checks from the Caterbone Cleaners, Inc., checking
account.

The one check to Joe the Motorists Store at the Manor Shopping Center was never

entered into evidence, it was for a total of $70.00. The other check was made out to Lancaster
Attorney James Coho for $200.00 with "divorce proceedings" written in the memo. This was his
only criminal record. Samuel P. Caterbone, Jr., was sentenced to one year probation by President
Judge William Johnstone.

However, on August 29, 1973 after nine months, Judge Johnstone

wrote an ORDER releasing him from probation and ordering him to "leave the vicinity of the
County of Lancaster, Pennsylvania". The President Judge of Lancaster County Court of Common
Pleas literally threw my father out of Lancaster County for forging 2 checks from his own
corporation. In 1987 I was arrested for stealing my own files from my own company, Financial
Management Group, Ltd., You can research the life of Candy Jones and Kate O'Brien to learn more
on this topic. Samuel Caterbone, Jr., has left enough writings and documentation to know that his
life fits the model for targeted individuals, complete with economic ruin, isolation, disenfranchised
from family and friends, and of course a fabricated mental illness history. You can view most of
his record online.

On or about May 18, 2001 Samuel P. Caterbone Jr., finally received an

inheritance from his mother's (Mary Caterbone) estate.

The check was for some $70,000.00.

The estate was probated in November of 2000. Some two weeks later, on Memorial Day Weekend
of 2001, he had called me to come to New York City to help care for him.

He was in perfect

health until this time. In a matter of six (6) weeks he had succumbed to lung cancer. As per
Julianne McKinney,

former intelligence officer for the U.S. Army and victim activist of U.S.

Sponsored Mind Control, the weapons are lethal enough to kill and the one thing that I worry

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about is that of dying of cancer (paraphrase). There is no doubt now that my father's death was
a murder, not natural.
Samuel A. Caterbone, (Brother) served in the United States Air Force in 1968 to 1970.
In 1991, Stan J. Caterbone accused the United States Government of using his brother, Samuel
A. Caterbone for part of the LSD experiments on mind control, or MK ULTRA. A notarized letter of
October 23, 1991 was sent certified mail to the California Attorney General on the subject matter,
with a return letter from the California Attorney General on January 14, 1992.

By his own

admission before his death, Samuel A. Caterbone disclosed to Stan J. Caterbone of the "bad LSD"
trips while in the Air Force. Since his death of December 25, 1984, Stan J. Caterbone and others
questioned the classification of suicide, and made allegations of foul play that was ultimately
responsible for his death. Finally in a meeting in Santa Barbara, California with the Santa Barbara
Public Guardian's Office, an office admitted that the death was more likely due to foul plan than
suicide.

Samuel A. Caterbone was also an exceptional student and athlete while attending

Lancaster Catholic High School.

After playing varsity football as a sophomore, he had an

unfortunate accident while deer hunting the following November.

While in the woods in

Bellefonte, Pennsylvania, his hunting pants caught fire trying to stay warm.

It left him in the

Lancaster General Hospital for months, going through painful skin grafts and isolation.
hunting accident interrupted his athletic career and scared his legs for life.

The

The Schizophrenia

diagnosis was a combination of LSD flashbacks and organized stalking and harassment.
Thomas P. Caterbone, (Brother) had an unfortunate transaction at Fulton Bank that set
a course of action that resulted in a suicide. Although diagnosed with Bipolar Disease and Manic
Depression -- embezzled and extorted monies were most likely the reason for his suicide in 1996.
Fulton Bank was involved in a fraud that took $72,000 from a real estate settlement closing and
lead to his total financial ruin and collapse in June of 1995. The funds were never recovered and
Fulton Bank is a defendant for a wrongful death claim in the United States District Court for the
Eastern District of Pennsylvania in CATERBONE v. Lancaster County Prison, et. al., 05-cv-2288.
FULTON BANK triggered a severe and lethal death blow to Thomas P. Caterbone, and as of this
day has refused to acknowledge any wrongdoing or remorse. Thomas P. Caterbone was also an
exceptional athlete. Playing for Lancaster Catholic High School, Franklin and Marshall College, the
Harrisburg Patriots, and even the Philadelphia Eagles. Tom also coached football at J.P. McCaskey
and Franklin and Marshall College.

Thomas P. Caterbone had a very successful lawn and

landscaping business before joining forces with John DePatto of United Financial Services and
selling residential mortgages.

John DePatto was the former head of Parent Bank, owned by

James Guerin and ISC. Parent Bank, owned by ISC also foreclosed on 2323 New Danville Pike,
Conestoga, Pennsylvania in 1988, which was owned by Stan J. Caterbone. Thousands of dollars
of equity was extorted in the process, despite still being short sold for a profit to Mr. Keith

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Kirchner, an executive of Lancaster Newspapers and former graduate of Lancaster Catholic High
School.
Stan J. Caterbone is a remote viewer (at least one way in), is telepathic, and a
federal whistleblower with an exceptional entrepreneurial record in spite of all of his adversaries
and their assaults. In spite of the U.S. Sponsored mind control and torture, he has endured and
will prevail. Legally, Stan J. Caterbone has been able to preserve his claims, and progress his
legal challenges and claims through both the federal and state court system appearing pro se,
without the aid or expense of additional legal counsel. Some of his claims and briefs will most
likely be landmark decisions in years to come. Stan J. Caterbone was a 2-Sport MVP at Lancaster
Catholic High School, in both football and track. Stan J. Caterbone never received less than a B
grade in his four years of high school and had an 87+ average. Stan J. Caterbone excelled in
computer technologies, taking his first full term course in 1975, while in high school and
continuing into college at Millersville University, graduating with a degree in business
administration in 1980.

Stan J. Caterbone excelled profoundly at building his companies, first

beginning with Financial Management Group, Ltd., then working with Tony Bongiovi of Power
Station Studios and the "Digital Movie"; then building Advanced Media Group, Ltd..

Over the

years, despite the illegal seizures and foreclosures, Stan J. Caterbone has amassed a portfolio of
impressive real estate deals that have always paid off in profits, no matter how or when they
were sold.

The same was true of his businesses.

Financial Management Group, Ltd., was a

$20,000 dollar investment in 1986 and was still sold for approximately $100,000 two years later,
despite the false arrests and the extortion of most of it's real value and equity.

The mental health history and the criminal records were completely fabricated, and a
close review and investigation into the actual court records and hospital records can prove that in
very short fashion.

There are TWO (2) ways to quickly dispute the Mental Health History and

Record:
One - Review the word "Delusional; delusions; etc.,;

every instance of the word

used by mental health professionals, and the false reports by friends and family were associated
with facts, and matters of the official record, the complete opposite of the meaning of the word
"delusional". And they still exist to this very day.
Two - Review the 3 Fabricated Suicide Allegations of the following dates: August
10(?), 1987 at Burdette Tomlin Hospital (Cape May County New Jersey); February 18th(?), 2005
by Kerry Egan and the Southern Regional Police Department; and July 19, 2009 for the 302
Commitment by the Lancaster City Police Department at Lancaster General Hospital.
The Criminal Record is very similar, since 1987 Stanley J. Caterbone has had 31 false
arrests; formal charges and convictions dismissed prior to court proceedings or won on summary
appeals in the County of Lancaster, Pennsylvania; most of which Stan J. Caterbone appearing as

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pro se (representing himself). These have resulted in civil complaints filed in 2008 in CATERBONE
v. The County of Lancaster, Pennsylvania in U.S. District Court for the Eastern District of
Pennsylvania.

THE PUBLIC RECORD


The Public Record is comprised of court filings and exhibits in U.S. Federal Courts;
Pennsylvania State Courts; and the Lancaster County Court of Common Pleas. In all some 40,000
pages of documents are now filed and electronically scanned or microfilmed in prothonotary
offices. In addition in both the U.S. Federal Courts and the Lancaster County Court of Common
Pleas there are more than 11 hours of audio recordings; some 3,000 scanned images; and
several video broadcasts of the ISC News broadcasts all stored on a CD-ROM and filed as an
exhibit to some of the law suits filed by Stan J. Caterbone and Advanced Media Group, as
plaintiffs. Stan J. Caterbone has over 100 court docket sheet numbers in federal, state, and local
courts.
There are also Pennsylvania Unemployment Compensation records; Department of Welfare
and Lancaster County Assistance Office records; Local Real Estate Tax records; Lancaster County
Tax Assessment records; Social Security Administration Benefits records; Lancaster Catholic High
School transcripts; Millersville University transcripts; all for Stan J. Caterbone, in addition to his
court filings.
For Samuel A. Caterbone, my brother, there are United States Air Force service
records; Lancaster Catholic High School transcripts; Millersville University transcripts; Social
Security Administration records; Santa Barbara County Guardian and Public Defender records;
and papers and documents persevered from his estate.
For Samuel P. Caterbone, my father, there are United States Naval records, Lancaster
Catholic High School transcripts; Social Security Administration records; Lancaster County
Assistance Office records; Local Real Estate Tax records; Lancaster County Tax Assessment
records; Samuel Caterbone Cleaners, Inc., corporate records; Real Estate Deeds and Mortgages;
Lancaster County Court of Common Pleas civil and criminal records; and of course papers and
documents persevered from his estate

PUBLIC WEBSITE ADDRESSES OF INTEREST:


www.amgglobalentertainmentgroup.com
www.freedomffchs.com
https://www.scribd.com

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DOCUMENTS ATTACHED FOR REVIEW

** It is important to note that as of this writing, Remote Viewing has recently


been commercialized by corporate America, and certain Fortune 500 companies are
using Remote Viewers as consultants for trend analysis and market forecasts. This is
often the evolution of most technologies born out of the U.S. Department of Defense.
Top Secret experiments and the resulting technological advancements can stay
secretive for so long.

This has recently been used in a NBC story of the Television

drama "Medium" this last season.

On July 9, 2008 I had recorded an AM radio live

broadcast on WHAN Coast to Coast with a guest that was one of the leading Physicist
turned Remote Viewer and expert that testified to this same notion.

Dated: July 28, 2009


Stan J. Caterbone
Advanced Media Group
scaterbone@live.com
www.amgglobalentertainmentgroup.com
The following are no longer in service:
www.advancedmediagroup.wordpress.com
www.scribd.com/amgroup01
www.facebook.com/scaterbone
www.twitter.com/StanCaterbone
www.mcvictimsworld.ning.com/profile/StanJCaterbone
http://www.youtube.com/advancedmediagroup

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Stan J. Caterbone
Advance Media Group
1250 Fremont Street
Lancaster, Pennsylvania 17603
Derrick Robinson
Freedom From Covert Harassment and Surveillance
P.O. Box 9022
Cincinnati, Ohio 45209
Phone 1-800-571-5618
Fax 1-866-433-4170
email: info@freedomfchs.com
Re: Is County of Lancaster, Pennsylvania Ground Zero for Organized Stalking and
Covert Surveillance?
Derrick,
My pleasure. Derrick, I was trying to get group rates at our new Lancaster Convention Center
Marriot Hotel last week, just as a little fact finding mission. I have a theory that I would like to
send your way. I thought it would be very fruitful to bring some TI's together for a conference,
unless you think the exposure would be harmful.
I believe that they try new models for harassment; organized stalking and surveillance on me
here in Lancaster. Remember, Lancaster is now one of the most "Watched Communities" in the
country. "With those cameras, the Safety Coalition will operate and monitor 165 cameras across
Lancaster City making Lancaster the most watched city of its size in the nation." See article
attached, Watching you: City to add 105 more cameras.
I believe that Lancaster may be ground zero for some of the models of organized stalking and
harassment that we TI's experience and wanted to get some reaction from Lancaster. Some
history on the Lancaster Convention Center. Dale High of High Industries is the lead partner in our
new convention center/hotel. It is first class all the way. Now in the late 1980's I was a joint
venture partner with Dale High in American Helix Technology Company/Advanced Media Group.
American Helix was a cd manufacturer and I and my company Advanced Media Group was the
CD-ROM division of American Helix. I was one of a handful of CD-ROM manufacturers in the
domestic United States back then. Also in 2005 I filed a civil action against the lead hotel, the
Eden Resort Inn, for trying to block the development and building of the Hotel/Convention Center,
see
attached.
Now, some history about Lancaster and the intelligence community. Back in the 1980's there were
several defense contractors located in Lancaster, the main being International Signal & Control,
which I, of course, blew the whistle on a billion dollar fraud and arms to Iraq.
Click here for an overview of ISC.
Click here to see the Lancaster Newspapers Archives regarding International Signal & Control, or
ISC.
Click here to view the live video of the WGAL-TV News Broadcast of October 31, 1991 the evening
of the ISC indictments. The U.S. Department of Justice and other U.S. Agencies held a Press
Conference in the Philadelphia Federal Courthouse to announce the indictments and $ Billion
Dollar Fraud.

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Click here for Part 2 of the WGAL-TV 8 Broadcast.
Now politically, Lancaster is and has always been predominately Republican. Lancaster is one of
the oldest cities in the country and our courthouse was one of the first in this country. Lancaster
has one of the oldest fraternities of the Masons. Lancaster and the George W.Bush administration
has a close and very "interesting relationship". George H. Bush had a very close relationship with
ISC, and of course the NSA and CIA all had a very "close" relationship with International Signal &
Control, or ISC. The following are some transcripts for Ted Koppel and ABC News Nightline
regarding ISC and Arms to Iraq and the intelligence community. The transcripts are contained in
my Amicus for Case No. 2006-cv-2160 filed in the Eastern District of Michigan, Southern Division.
Now, Robert Gates, presently the Secretary of the United States Defense Department, and his
relationship to Lancaster. First of all, the attached video is the authentic transcript of Robert
Gates' confirmation hearing in September of 1991 for the Director of the Central Intelligence
Agency (CIA). If you fast forward to approximately 9:00:00 you will see the back and forth
questions from Senator Murkowski to Robert Gates regarding the allegations by several members
of the U.S. Senate Select Committee on Intelligence regarding his alleged involvement with ISC
and the Arms deals with Carlos Cardoen and the shipping of cluster bombs through South Africa
and on to Iraq. Of course, he denied all of the allegations.
Robert Gates also has relatives that live in Lancaster County, if fact he attended a wedding here a
few months ago, on May 3, 2009 at St. John Neuman Catholic Church in Manhiem Township,
Lancaster County. His wife has a niece that lives in Manheim Township.
Now, I'll give you the ABC News Nightline May 23, 1991 excerpt regarding ISC and the NSA,
National Security Agency:
"It all started legally, if covertly, back in 1974. That's when the National Security Agency, a supersecret U.S. Intelligence unit asked ISC to help complete project X, a chain of electronic listening
posts based at South Africa's Simonstown Naval Station. South Africa was using these posts to
follow Soviet submarine traffic off of the Cape of Good Hope. To ensure secrecy, ISC and the NSA
made sure shipments could not be tracked back to them. They created a company called Gamma
Systems Associates. In fact, this company was nothing more than a post office box at John F.
Kennedy Airport. Gamma was a cut-out. ... But this sanctioned covert operation was stopped in
1977 when President Carter, a strong opponent of South Africa's apartheid regime, told U.S. firms
to stop any military-related business with Pretoria. But ISC continue shipping electronics, some
civilian, some military, to South Africa. The in the early 1980's, South Africa began to intensify its
efforts at ballistic missile development. For ISC, that was a golden opportunity because on of its
top executives was a man named Clyde Ivey, an American electronics expert who has been the
father of South Africa's missile program. Ivey had extraordinary contacts in the nations defense
structure. Begining in 1984, federal investigators say, senior ISC exeutives, including Ivey, began
regular contacts with CIA officials." You can read the rest. The entire transcript of the May 23,
1991 ABC News/Nightline broadcast.
Now remember, George H. Bush was director of CIA. "He served in this role for 357 days, from
January 30, 1976 to January 20, 1977.[22] The CIA had been rocked by a series of revelations,
including those based on investigations by Senator Frank Church's Committee regarding illegal
and unauthorized activities by the CIA, and Bush was credited with helping to restore the
agency's morale.[23] In his capacity as DCI, Bush gave national security briefings to Jimmy
Carter both as a Presidential candidate and as President-elect, and discussed the possibility of
remaining in that position in a Carter administration[24] but it was not to be," according to
Wikipedia.
Now, lets get to Bobby Ray Inman, former Navy, Director of the National Security Agency (NSA),
former Director of International Signal & Control (ISC), and currently part of the Mind Control
industry. The following appears on the Welcome page of my website:

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"S.A.I.C. involvement in 1993 American Para psychological Association meeting arrangements, via
their 'Cognitive Sciences Laboratory'. Science Applications International Corporation is a big time
defense contractor, has held the largest number of research contracts of any defense contractor.
Bobby Ray Inman (ISC Board of Directors) is on its board of directors, among others."
by John Porter, CIA Program on Mind Control copyright 1996. In 1994, after Bobby Ray Inman
requested to be withdrawn from consideration as Bill Clinton's first Defense Secretary, his critics
speculated that the decision was motivated by a desire to conceal his links to ISC. Inman was a
member of the so-called "shadow board" of the company which was allegedly either negligent or
approved the exports." by Wikipedia on International Signal and Control, (ISC).
Now, lets list the former Navy personnel:
George H. Bush, former President of the United States, former Director of CIA.
James Guerin, President and Founder of International Signal & Control.
Bobby Ray Inman, former Director of the National Security Agency (NSA) and Director of
International Signal & Control, (ISC).
My father, Samuel P. Cateronne, Jr.
His father, Samuel J. Caterbone, Sr.
George Noory, of Coast to Coast Radio (just anecdotal, nothing assumed or alleged).
George W. Bush flew with the Navy.
James Cross
I will Finish later and add more.
Next we get to Jim Guerin's attorney back in 1989 through at least 1992. His name was Joseph
Tate, of Philadelpha. This link will take you to a document regarding Joseph Tate, James Guerin
and Joseph Roda, Esq., of Lancaster, my former attorney who said I fabricated everything back in
1987. The document contains a letter of September 12, 2005 from Special Prosecutor Patrick
Fitzgerald regarding Scooter Libby, Former Vice President Dick Cheney's Chief of Staff. the letter
involves Scooter Libby's Grand Jury Indictment for leaking Covert CIA Operative Valerie Plame
and eventually outing her.
Now in Austin Texas in July of 2005 I was detained by 2 Agents from The Defense Intelligence
Agency. I was merely visiting a Military Museum, that had old and vintage helicopters and
airplanes. near where my brother, Dr. Phillip Caterbone lived. I was visiting on my way to
California. While inside the museum 2 Agents from the Department of Defense Defense
Intelligence Agency escorted me outside to my Honda Oddesey and interrogated me making me
confirm that I was visiting and staying with my brother. They caused a problem for my brother's
Medical Practice by shaking up one of his secretaries. The reviewed my court documents for
CATERBONE v. Lancaster County Prison, et. al., Case No. 2005-cv-0288 filed in the U.S. District
Court for the Eastern District of Pennsylvania. The demanded that I stay off all military bases
before releasing me.
In 2006 I was telepathic with an older NSA executive on many occasions who wanted to meet me
at the Clipper Stadium who told me he wanted to rent a facility in Lancaster for a training
exercise. I told him to to and see Dale High and the High Group for space at the Greenfield
Industrial Park. He said he was retiring and that our discussions were keeping him a few weeks
longer than expected. We had intimate discussions of my history and the Chesapeake Bay Area.
We also discussed Sheryl Crow, and he told me his wife was a fan. I turned him on to her new
album, Wildflower, and he said she liked it. We had to disengage because he was being harassed
by other telepathic assailants.
My former secretary (Susan Bare) at Pflumm Contractors, Inc., where I was controller and was
hired to rescue the company from near bankruptcy in 1993, told me that her husband, Ross Bare,
who grew up just some 10 or so doors from me, worked for the NSA. She disclosed this soon
after I hired her in 1994 or 1995.
I will finish later and add to this allegation. This is a work-in-progress.

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Stan J. Caterbone
Advanced Media Group
scaterbone@live.com
www.amgglobalentertainmentgroup.com
www.advancedmediagroup.wordpress.com
www.scribd.com/amgroup01
www.facebook.com/scaterbone
www.twitter.com/StanCaterbone
www.mcvictimsworld.ning.com/profile/StanJCaterbone
http://www.youtube.com/advancedmediagroup

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AFFIDAVIT
BE IT ACKNOWLEDGED, that Stanley J. Caterbone, Financial Management Group, Ltd.,
FMG Advisory, and and all affiliates, Pro Financial Group, Ltd., Advanced Media Group, Advanced
Media Group, Ltd., Global Entertainment Group, Ltd., Power Productions I, Radio Science
Laboratories, Ltd., of Lancaster County, Pennsylvania, the undersigned deponent, being of legal
age, does hereby depose and say under oath as follows:

I am now convinced that the situation surrounding my litigation and all factors attributed
to my financial and professional demise bore out of the fact that my Father, Samuel P. Caterbone
was a victim of U.S. Sponsored Mind Control, in the truest sense of the words.

The

whistleblowing activities of 1987 either were a coincidence or I was set up in the very beginning
by Pennsylvania State Senator Gibson Armstrong (former stock broker) in 1983 when he solicited
me to purchase the ISC stock. The preceding would have been the perfect cover story for my
demise; that I was involved in a fraud. Following this analysis would lead one to conclude that
the collateral damage from the activities of my financial ruin always left my fellow businesses in
financial ruin, for example Robert Kauffman and Michael Hartlett, partners, and the shareholders
and affiliated professionals of Financial Management Group, Ltd., Tony Bongiovi and Power Station
Studios, Jim and Lynn Cross as Cross Microwave Consultants, Dave Dering, Scott Robertson, and
James Boyer as American Helix/High Industries, Ralph Mazzochi and Gallo Rosa Restaurant;
Pflumm Contractors, Inc., Mike Caterbone's AIM Wholesaler's Business, Dr. Phillip Caterbone, D.O.
And associated Primary Care Practices of Austin, Texas, Sam Lombardo and Ralph Mazzochi as
S.N. Lombardo Associates for Lancaster Avenue Project, Sheryl Crow Singer Songwriter, my
immediate family, friends, and relatives.

Following this analysis would lead one to concur that the legal and financial remedies
would only be reconciled by the above named parties enjoining my civil litigation. This AFFIDAVIT
is to be considered a legal and binding document to accomplish that remedy.

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scaterbone@live.com
www.amgglobalentertainmentgroup.com
www.advancedmediagroup.wordpress.com
www.scribd.com/amgroup01
www.facebook.com/scaterbone
www.twitter.com/StanCaterbone
www.mcvictimsworld.ning.com/profile/StanJCaterbone
http://www.youtube.com/advancedmediagroup

Stan J. Caterbone
Advanced Media Group
1250 Fremont Street
Lancaster, PA 17603

ILLEGAL NO TRESPASS NOTICES AGAINST


STAN J. CATERBONE AND ADVANCED MEDIA GROUP
Violations of Public Accommodations Law re Discrimination
and Anti-Trust Violations with False Statements to Authorities
September 27, 2015
Work-In-Progress

Community Stalking and Organized Libel/Slander Campaign Strategy Issue a few every
year to support false arrests; false imprisonment; fabricated mental illness history. In addition to
isolate by prohibiting entrance to major entertainment venues with good live music. Prohibit from
defending against the lies and slander in public to a minimum. Also, destroy history of strong
Christian values and church attendance on a weekly basis by keeping away from church. The
Millersville University Graduate Studies No Trespass Notice was accommodated by the denial of
entitled benefits of LETA Job Training Education Course of the Paralegal program at HACC during
the same time period.

1. David Pflumm Properties by David Pflumm Served by State Constable in June of


2005, original not signed by David Pflumm
2. Eden Resort Inn, by Drew Anthon, Owner Sent via 1st Class Mail in 2005.
3. Barley Snyder, LLC Lancaster Office, by Shawn Long, Esq., Attorney representing
Fulton Bank in 2006 Sent via 1st Class Mail
4. Lancaster Newspapers, Inc., by Steve Weaver, Manager in 2006, No Notice,
Corraborated by Jack Buckwalter, Chairman and CEO and George Warner, Atty with Barley
Snyder, LLC, No Formal Notice, allowed to reenter in 2015.
5. Ruby Tuesday, Manor Shopping Center, Lancaster, by Manager and Lancaster City
Police in 2006, No Formal Notice, allowed to reenter in 2015.
6. Alley Kat Restaurant and Bar, Lancaster by Bartender Ms. Santinello, Brett Stabley,
and Lancaster City Police, No formal Notice in 2006
7. Village Nightclub, Lancaster by George in 2008, No Formal Notice
8. Marion Court Restaurant, Lancaster, by Security Personnel, corroborated by Michael
Geesey, in 2008, No Formal Notice, allowed to enter in 2015.
9. Valentinos Cafe, Lancaster, by Jeanine, Bartender,in 2008, corroborated by John
Valentino, Owner, No Formal Notice
10. Brunswick Hotel, Lancaster, by Staff Employees, in 2008, No Formal Notice
11. Lancaster County Library and Duke Street Business Center, by Executive Director in
March of 2009, by 1st Class Mail
12. Anne Bailey's Restaurant and Bar, Lancaster, by Manager in 2009, No Formal Notice
13. Millersville University Graduate Studies and Millersville University, Millersville, by
Lori Austin, Judicial Affairs, via Certified Mail in June of 2009.

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14. TGIF Friday's, Lancaster, by Manager, in January of 2010, No Formal Notice
15. Lucky Dog Restaurant and Bar, Lancaster, by Robert Donnelly, in January of 2010, No
Formal Notice
16. Saint Mary's Catholic Church, Lancaster, by Don Spica, Usher and Lancaster City Police
Department in Feb of 2010, No Formal Notice
17. O'Halloran's Bar, Lancaster, March 25, 2010 by Male Staff Employee. No Formal Notice.
18. Fulton Bank, Fulton Financial Corporation, March 26, 2010 by Susan Follmer, Security
Officer.
19.Tobias Frog Restaurant and Bar, August 8, 2015 by Owner of Establishment, reason
was for complaining of harassment and stalking.
20. Millersville University, July 9, 2015, served notice by Millersville University Police
Chief Pete Anders, for negotiating a civil rights complaint with Assistant to the President,
Debra Hoeckler
21.Village Nightclub, July of 20015, by George..........., Owner, tried to enter several times,
with no reason and no written notice.
22.Lucky Dog Bar, August of 2015, met Abby and Keagan Pflumm outside, went inside and
was told by bartender to leave and not come back.
23.Barley Snyder, LLC Lancaster Office, receptionist Ms. Woods refused to let me
communicate with Attorney George Werner, who in 2011 entered appearance in 05-2288
for Fulton Bank in U.S. District Court.
24.Wennerstrom Property Management Company, June 2015, went to complain
regarding harassment, threats, etc., at 1252 Fremont Street and told to leave building.

Dated: September 27, 2015

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AFFIDAVIT

I, Stanley J. Caterbone, Targeted Individual or TI, residing at: 1250 Fremont Street,
Lancaster, Pennsylvania, 17603, do hereby state that I am at least 18 years of age, that I am
a citizen or a legal resident of the United States of America, that I am of sound mind, and that I
am the person whose signature follows on this Affidavit. The purpose of this document is (1) to
advise Congress as well as state and local officials of organized stalking and electronic and mind
manipulation torture being committed against me and (2) to request a state, local, or
Congressional investigation and hearing on the use of remotely-operated directed energy attacks
and mind control technologies on Americans in this country.
Our Government is responsible for protecting its citizens from elements that
covertly harass, torment, murder, and cause victims to commit suicide through
organized stalking and remote electronic torture. Yet, unbiased research indicates that
certain elements of Government either engage in these activities or protect those who perform
them. I seek the complete dismantling of any officially-sanctioned covert Government torture
programs, the passage of legislation specifically outlawing that high-tech torture, and the full
prosecution of any person, regardless of his rank or position, who has violated my civil rights and
my most basic human rights. The assaults on my mind and body have been occurring for 24
year(s) and include, but are not limited to the following victimization's:

1.

Blanketing my dwelling and surroundings with electromagnetic energy.


Bombarding my body with debilitating electronic and mind manipulation effects.
Directed Energy Weapons Causing Severe Pain to Body and Brain. Began in at least 2005
and still continuing, with complaints to Freedom From Covert Harassment and Surveillance, FFCHS
in 2009, and in cited in various state and federal court cases over the past several years.
Attacks causing severe artificial pain most likely from Directed Energy Devices synchronized with
telepathic harassment and organized stalking and harassment have been logged and reported to
law enforcement and medical professionals since 2008.
Prior to 2008 the attacks were
experienced and reported to medical professionals but the sources were not known. Also reported
attacks of pain to a family physician, emergency room personnel and psychiatrists.

2.
Invading my thoughts via remote sensing technologies. Was sent an autonomous
email in 1998 introducing the term remote viewing. Various technologies and tactics are being
used to create emotional signatures that induce various emotional states; a systematic complete
hacking of my mind.
3.

Making me mentally hear others' voices through the microwave hearing effect.
Synthetic and/or Mental Telepathy. First started to experience telepathy/synthetic telepathy
in 2005 with full-time 24/7 connection during the same time to present. When full-time telepathy
started a male conducted interrogations lasting several hours at a time concerning a wealth of
subjects including ISC/CIA Knowledge. Cannot disconnect from continuous conversations at all
times with one female person. The handlers know everything I know and experience in real time.
During 2006 and 2007 have been telepathic with some 10 or more persons, both male and female
for short durations. Can recall most conversations and subject matter with identities of who they
said they were. Interrogation type harassment is still being used telepathically to harass and for
some sleep deprivation. Made first complaints to DARPA, the FBI, and U.S. Senator Arlen Specter
in 2007. Some conversations by the persons that are telepathic with me elude to some program
similar to the DARPA datalog program where they record your entire life. Everything that you try
to do on a daily basis is subject matter for conversation and harassment. Interference with
thought, harassment, and interrogation is used often times with electromagnetic weapon attacks
to the brain or body.

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4.
Depriving me of sleep due to neurological intervention. Mostly Experienced Sleep
Deprivation Techniques during periods of time in 2008 to 2010. Mostly with attacks of pain from
Directed Energy Weapons to back, neck, head (brain); and heart on a few occasions; and with
harassment from telepathy.
5.

Introducing poisonous gas and radiation toxins into my home. First experienced
toxic gases (Chloroform?) in heavy doses in 2006-2007. Made complaints to the Lancaster City
Police Department and the Southern Regional Police. Experienced attacks that would cause
dizziness at home, in automobile and in public. Was informed it was being released through a
distribution system the size of fishing line. To counter attacks used cotton in nostrils and gas
mask. In 2009 experienced attacks of what is said to be sleeping gas, when attacked could not
open eyes. Took Pictures during some attacks.

6.
Having me stalked en masse on foot and in vehicles. vandalizing my home and/or
car. Gang Stalking or Organized Stalking began in 1987 and continues today. It includes
strangers using gestures such as finger under eye; various forms of harassment; and public
mobbing. Complaints have been filed in 1987; 1992;1998 and 2005 to 2010. Complaints were
made to various public officials and local, state, and federal agencies as mental duress. The terms
organized stalking, gang stalking, targeted individual, etc., was not learned until a few years ago.
The organized stalking and harassment followed in several states, some while traveling from
Lancaster, Pennsylvania to California. Tracking technologies may have been used and most likely
are still being used. Police were involved in most places.
7.

Tapping (Bugging) my phones. Complaints of phone tapping/tampering were made to


New Jersey Bell in 1987 with a service call to Stone Harbor, New Jersey to check lines and phones.
The same was done by a Bell Atlantic repairman in Conestoga, Pennsylvania in 1998. In 2004 a
complaint with a report number was filed with the Pennsylvania Attorney General Office in
Pittsburgh, Pennsylvania (Agent Amy Zelnick) regarding interference with phone calls and
impersonations by perps intercepting and rerouting calls. Computer Hacking complaints were filed
to local authorities in the County of Lancaster and the Cyber Crime unit of the Federal Bureau of
Investigation in 2005 to 2010.

8.
Blacklisting me in the labor market. Filed complains of employment discrimination with
the Pennsylvania Attorney General in 2006 and the Lancaster County Human Relations
Commission in 2008.
9.

Workplace mobbing. Experienced in 1987 at Financial Management Group, Ltd.,


American Helix of High Industries in 1991 and Pflumm Contractors, Inc., in 1997/1998. Filed
complaints and logs as mental duress and harassment. Was forced out of all 3 organizations as a
result of the mobbing and harassment.

10. Public Mobbing. Public type mobbing and organized stalking and harassment was
perpetrated heavily in the years 2005 to 2010 in the following places: The Lancaster County
Courthouse, The Lancaster County Public Library, the Pennsylvania Career Link, and the Millersville
University Library and University Offices. I was given suspicious and illegal No Trespass Notices
in some 18 public places in Lancaster County in the years 2005 to 2009 without just cause. I was
complaining of stalking and harassing in most all of those public places. The Lancaster County
Public Library and the Millersville University took away my access to a computer after my personal
computers were vandalized and/or hacked inoperable. Fulton Bank took away my safe deposit
box. Others included my church of worship, various bars and restaurants and one attorneys office.
Complaints have been filed regarding the same in courts and with various authorities.

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11.

Attempted Murder. Experienced with an attempt of vehicular homicide in 1991 after


National News Media reported ISC/CIA-NSA connection of Arms to Irag. The incident involved a
vehicle changing lanes and direction and heading directly toward me in the wrong direction
running me off the road, narrowly missing a tree. I Filed the incident in federal courts and used
as a motion to seal federal case no. 05-2288 in 2005 in the United States District Court for the
Eastern District of Pennsylvania.

12.

Pet Killing. Cat was killed in 2005 with complaints to the Lancaster County Humane
Shelter and the Southern Regional Police Department.

13.

Illegal Entries of Home/Properties. First in 1987 in Stone Harbor, New Jersey, then
again in 1991; 1997-1998; and most serious in 2005 to 2010. Filed Police Reports and insurance
claims, most with the Southern Regional Police Department of Conestoga, Pennsylvania , State
Farm and Harleysville Insurance Companies.

14. Illegal Repossessions.


Airplane in 1987 containing legal and business files.
Home/Property and Contents in 2006 also containing legal and business files and documents.
15.

Physical Assaults. One attack and filed complaint with police report in Los Osos California
in 2005 and one in the City of Lancaster. Police reports were filed and obtained for both.

16. False Arrests. Experienced 7 in 1987 and more than 20 in 2005 and 2006 in the
Commonwealth of Pennsylvania Lancaster County Court of Common Pleas. The false arrests were
charges that were all dismissed prior to court hearings.
17. False Imprisonments. Spent 7 to 10 days in Lancaster County Prison in 1987 with all
charges dismissed and again for some 60 days in 2006 with all charges dismissed. The 60 Days of
imprisonment of 2006 was triggered with a false report of missing a bail supervision meeting,
which was confirmed to be false in court; however bail was maliciously and purposefully reinstated
as secured instead of unsecured. The appropriate appeal was filed which secured my release after
some 60 days of false imprisonment. There were no charges that resulted in any convictions.
18.

Psychiatric Abuses with False Suicide Allegations from Perpetrators/Stalkers. One


in 1987 resulting in a forced hospitalization for several hours by police in Stone Harbor, New
Jersey. And one again in February of 2005 resulting in police restraining me in my home and
abusing me. This one was a fraudulent and phony email sent to police by a perp. The Southern
Regional Police had to vacate after the email was proven to be a fraud.

19. Vandalism to Property. First in 1987 in Stone Harbor, New Jersey, then again in 1991;
1997-1998; and most serious in 2005 to 2010. Filed Police Reports and insurance claims, most
with the Southern Regional Police Department of Conestoga, Pennsylvania and Harleysville
Insurance Company. 3 computers have been rendered inoperable since 2005 along with various
electronics equipment; dvd recorders; printers; household items; appliances; etc., Most insurance
claims have been paid. In the past years a wave of purchased items, online and in stores, were
received broken or the wrong item and all had to be returned. Some included items to secure my
property, and others included computer related items, others were household and clothing items.
20. Gas Lighting. The illegal entering of home and causing psychological duress by moving
items and or hiding items. First reported in 1998 to the Conestoga Police and continued to
present. Clothing was also manipulated and altered. The term gas lighting was only learned in
2010, although it was reported to police as harassment by neighbors of friends. The daily draining
of my hot tub was also used as a psychological warfare tactic and used to run up utility bills.
Numerous complaints were made to police in 2008 to 2010.

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21.

Thefts of Property. Not Yet Completed.

22. Vandalism to Car/Truck. Since 2005 have experienced years of gas siphoning, battery
outages, letting air out of tires, and wetting of inside of floor mats as psychological warfare tactics
by perps and stalkers. Made numerous complaints the Lancaster City Police Department.
23.

Toxic Chemical Causing Running Nose. Experienced on regular basis in 2009 when in
public places. Was not in conjunction with cold/flu symptoms. Research states it is a tactic used
in organized stalking.

24.

Computer Hacking. Computer Hacking complaints were filed to local authorities in the
County of Lancaster and the Cyber Crime unit of the Federal Bureau of Investigation in 2005 to
2010. Numerous complaint numbers have been secured. Complaints of cell phone hacking was
also reported in 2010. Websites and blogs were regularly hacked and sometimes taken off-line.
Electronic calenders, court documents, and financial records were often hacked causing many
problems of the years, including having to withdraw civil complaints.

25. Cyber Stalking. Most in 2005 to 2010.


Message Board, and the FBI Cyber Crime Unit.

Complaints to Microsoft legal counsel, Yahoo

26.

Interference/Delay/Theft of U.S. Mails. First reported to U.S. Postmaster of mail


tampering and illegal changing of address in 1987. In 2008 to 2009 have made several more
complaints to the U.S. Postmaster Inspector General who claim to have begun investigations.
Some caused missed court hearings and other missed appointments and or meetings.

27.

Electromagnetic Weapons Causing Severe Muscle Spasms/Cramps.


First
experienced in 2006 to present. One experience in 2006 was while I was in my hot tub and the
pain and cramp was so severe in my left calf muscle (you automatically bend over to rub it out,
which placed my head underwater) I had to crawl out of the hot tub before almost drowning.

28.

Electromagnetic Weapons Causing Sexual Stimulation. First experienced in 2005.

29. Forced Hospitalizations. Forced Hospitalizations in 1987 (2) one for 6 hours and one for
5 days; 2006 one for 3 days; 2009 one for several hours while in intensive care for emergency
surgery; and 2010 one for 8 days. Filed complaints to Citizens Commission for Human Rights in
1991 and 2008.
30.

Manipulation and Theft of Documents. Numerous thefts and manipulation of all legal
and business documents both in paper and in electronic format have occurred since 1987.
Microfiche/Microfilming began in 1987 and other measures to secure documents have been
ongoing to present. Numerous complaints have been filed with law enforcement since 1987.

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Statement: I have been a Targeted Individual, TI, and Victim since 1987. In 1987 I blew the
whistle (public Allegations and Complaints to State and Federal Authorities of Fraud during merger
negotiations with British Defense Contractor Ferranti International) on an international defense
contractor named International Signal & Control, or ISC, who was selling arms (Everything from
Telemetry Systems to Cluster Bombs) to Iraq via South Africa and was convicted of a $1 Billion
dollar Fraud in 1992 by the United States Attorney and several other federal agencies. See
ABC/News 20/20 and Nightline in 1991. They were founded and headquartered in my hometown
of Lancaster, Pennsylvania. I was a shareholder and was solicited by a top ISC Executives
(Convicted as a Mastermind of the Billion Dollar Fraud) to help finance some of their operations
through an affiliate called United Chem Con. ISC was a Department of Defense (DOD) Contractor
and a partner with United States Intelligence Agencies since it's beginnings in the early 1970's.
One of it's first contracts was Project X with the National Security Agency or NSA of Ft. Meade,
Maryland. Former Secretary of the Navy, Bobby Ray Inman was on the Board of Directors of ISC
and was also on the Board of Directors of Science Applications International Corporation, or SAIC.
SAIC was a huge defense contractor that was the recipient of the Defense Intelligence Agency, or
DIA, program on Remote Viewing, which SAIC named Project Stargate. It was reported that
Bobby Ray Inman declined the nomination for Secretary of Defense under the first Clinton
Administration because of the ISC and Trecor scandals. In the early 1990's I was a subcontractor
on a project for the Defense Advanced Research Project Agency, or DARPA, with the National
Institute of Standards and Technology, or NIST called TIMIT.
The project developed speech
corpora for the development of computer based speech recognition systems. I was also involved
in the bidding of other Department of Defense contracts dealing with information technologies. In
1998 I was stalked and approached by an employee of the National Security Agency, or NSA in
York, Pennsylvania who said my problems were not with the NSA, but the good ole boys. In
2005 I was detained by 2 Defense Intelligence Agency, or DIA officers in a museum on a military
base in Austin, Texas and was questioned and interviewed regarding my civil actions filed in
federal court for several hours. I was released and told to stay off of all military bases. My
brother, a Family Physician in Austin Texas had to verify my travel plans and the fact that I was
staying with him prior to my release.
My father alleged he was part of U.S. Navy experiments in the 1940's and experienced
synthetic telepathy in the 1970's, 1980's and 1990's as outlined in memos and documents he had
authored; and from my personal conversations with him prior to his death. Ms. Amy Fuchs of the
Disclosure Project confirmed that he was most likely given an ET experience via synthetic
telepathy. He died in 2001 in New York City of cancer. My brother was in the U.S. Air Force in the
late 1960's and I allege was a victim of the LSD experiments relating to MKULTRA in the late
1960's and a victim of murder (Suspicious Suicide with tainted medical reports) in Santa Barbara
California in 1984; Notarized Complaints were filed to the California Attorney General in 1991. He
made a declaration type statement prior to his death that he got bad LSD while in the U.S. Air
Force.
Organized stalking and harassment began in 1987 following the public allegations of fraud
within ISC. As far back as the late 1980's I thought that my mind was being read, or "remotely
viewed". During the times that legal Counsel and attorneys were solicited in 1987, 1991, and
1997 Organized Stalking and Harassment and other forms of attacks experienced by Targeted
Individuals were severely increased. In 2005 the U.S. sponsored mind control turned into an allout assault of mental telepathy; synthetic telepathy; and pain and torture through the use of
directed energy devices and/or electromagnetic weapons. This assault was no coincidence in that
it began simultaneously with the filing of the federal action in U.S. District Court, of CATERBONE v.
Lancaster County Prison, et. al., or 05-cv-2288.
This targeting has ruined every aspect of my life.

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Some Perspectives
The calculated and technological entry into another persons mind is an act of monumental barbarism which obliterates perhaps with the twiddling of a dial the history and civilization of
mans mental development. It is more than an abuse of human rights, it is the destruction of
meaning. For anyone who is forced into the hell of living with an unseen mental rapist, the effort
to stay sane is beyond the scope of tolerable endurance. The imaginative capacity of the ordinary
mind cannot encompass the horror of it. We have attempted to come to terms with the experiments of the Nazis in concentration camps. We now have the prospect of systematic control authorized by men who issue instructions through satellite communications for the destruction of
societies while they are driving new Jaguars and Mercedes, and going to the opera.
"On the Need for New Criteria of Diagnosis of Psychosis in the Light of Mind Invasive
Technology"by Carole Smith
Global Research, October 18, 2007; Journal of Psycho-Social Studies, 2003.
People have no comprehension of how lethal only one aspect (aside from the obvious of driving
the victim completely insane) of telepathy technology can be in disrupting and ruining an individual's life through the sabotaging of his/her daily activities. Everything an individual does begins
with a momentary thought. From the split second that thought is learned by the person on the
other end (telepathically) - the individual's right to privacy is not the real threat or loss. The real
lethal weapon is the advantage in disrupting or preventing the individual from accomplishing
whatever he/she is going to do before they actually do it. With a simple cell phone call or instant
message, the Advanced Team is in place to subvert; sabotage; manipulate; propagandize;
smear; disrupt; or even prevent the task or activity from being accomplished in any successful
manner. The perps are skilled at creating scenarios that are covertly arranged to simulate everyday occurrences to make the victim at fault for the loss or failure. Imagine the consequences
when these activities have legal and financial implications. With telepathy technology the need for
tracking and surveillance technology is greatly diminished and may even become obsolete. This is
not merely Mind Invasive Technology, as Carole Smith so eloquently wrote this is LIFE Invasive Technology. Say Goodbye to any true sense of capitalism and free enterprise in the not to
distant future unless of course someone stops these illegal and disastrous technology transfers
and leaks.
Stan J. Caterbone
Organized or Gang Stalking
A system of organized psychological terror tactics used against a person who has become an enemy of an individual or a government. Subtle but effective techniques of stalking by multiple individuals and psychological intimidation and manipulation are used to slowly but surely drive the
target to make complaints to authorities who will see the complaints as bogus because of the
methods used against the target. As a result, the target gets labeled as mentally ill.
There are as many stalking tactics as there are targets as the multistalkers will tailor the stalking
to the individuals habits and individual personality. Some common examples or organized stalking
are: following the target on foot, by car and public transportation, crowding the target's space in a
public place, murmuring insults under the breath so only the target can hear, sitting in the car
outside the target's residence, starting "fights" in public with the target, doing "skits" on the
street which involves information only the target should know but has been found out via surveillance of the target, stealing and vandalism of the target's possessions.
Organized Stalking Website
Organized Stalking is a form of terrorism used against an individual in a malicious attempt to
reduce the quality of a persons life so they will: have a nervous break-down, become incarcerated, institutionalized, experience constant mental, emotional, or physical pain, become homeless, and/or commit suicide. This is done using well-orchestrated accusations, lies, rumors, bogus
investigations, setups, framings, intimidation, overt or covert threats, vandalism, thefts, sabotage, torture, humiliation, emotional terror and general harassment. It is a ganging up by members of the community who follow an organizer and participate in a systematic terrorizing of an
individual. Mark M. Rich

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The acts described above violate many laws aimed at protecting Americans. Some of these laws
include but are not limited to the following:
10 USC 921, Article 121 -- Larceny and wrongful appropriation
10 USC 920A, Article 120a -- Stalking
18 2340 USC -- Torture
18 USC 241 -- Conspiracy against rights of sovereign, free, God created, spirit and soul
beings
18 USC 213 -- Illegal Surreptitious entry
18 USC 242 -- Deprivation of rights under color of law
18 USC 35 -- Imparting or conveying false information
18 USC 1117 -- Conspiracy to Murder
18 USC 1111 -- Murder
18 USC 1905 -- Disclosure of information generally
42 USC 1983 -- Civil action for deprivation of rights
42 USC 1985 -- Conspiracy to interfere with civil rights
31 USC 5328 -- Whistleblower protections
18 USC 1512 -- Engaging in misleading conduct
18 USC 1503 -- Intimidating a witness/victim
18 USC 1512 -- Tampering with a witness/victim
18 USC 1513 -- Retaliation against a witness/victim
18 USC 1510 -- Obstructing a criminal investigation, conflict of interest roles in
government
18 USC 1509 -- Impeding due exercise of rights by attempting to prevent, obstruct,
impede and Interfere with same
18 USC 1622 -- Subordination of perjury by procuring another to commit perjury
(Optional) I have attached a personal message _______ (check).

AFFIRMATION
I affirm that the statements in this Affidavit concerning my torture and the results of
that torture are true and correct. I further affirm that those statements are based on
my own direct knowledge, personal experience, research, and known and published
historical fact.

Stan J. Caterbone
Affiant (signature) ______________________________________
Stan J. Caterbone
Name (print): __________________________________________
June 19, 2015
Date: _________________________________________________
Pennsylvania
State of __________________________
County of
Lancaster
_____________________________
19
15
June
Sworn before me this _______
day of _______________________,
20__
Stan J. Caterbone - I was a notary from '94-'98
________________________________,
Notary Public Exp.:
______________________
SJC
Stamp
& Seal:

Don't Know When

Freedom From Covert Harassment & Surveillance. All rights reserved. Copyright 2010 (This is an amended
form of the original Affidavit of September 2010 from Freedom From Covert Harassment & Surveillance.)

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THE ADVANCED MEDIA GROUP

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06/10/2007

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THE ADVANCED MEDIA GROUP

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www.amgglobalentertainmentgroup.com
scaterbone@live.com
717-669-2163
Stanley J. Caterbone
Advanced Media Group
1250 Fremont Street
Lancaster, PA 17603
IN THE UNITED STATES THIRD CIRCUIT COURT OF APPEALS
_______________________________________________________________________________
Lisa Michelle Lambert
:
PETITIONER
:
:
v.
:
CASE NO. 3400-2015
:
:
Lynn Bissonnette, et al.,
:
RESPONDANT
:
:
Stanley J. Caterbone
APPELLANT

:
:
:
:

SUBMISSION AS EXHIBIT BY APPELANT

I hereby on this 2 nd day of November, 2015, submit for considerations in the above captioned case the
attached document as an EXHIBIT to be considered by the court in the deliberations of this case. The Appellant is
going on the record after attending the movie Steven Jobs on November 1, 2015; Steve Jobs Introduced the
Mcintosh Computer in 1984. In 1987 Stan J. Caterbone, APPELLANT and Tony Bongiov of Power Station
Studios, and Flatbush Films were making the "First Digital Movie". The entire project was extorted through a vast
criminal and civil conspiracy during the Whistleblowing Activities of International Signal and Control, plc., (ISC)
beginning on June 23, 1987. The legal doctrine will provide the protection and will grant the APPELLANT and all
related parties the benefit due to the fact that there was no opportunity to fail. This subject matter is covered
extensively as Intellectual Property Claims in U.S. District Court Case No. 05-2288 and 06-4650. The RICO claims
toll the statute of limitations in all cases. In addition, this court, in Case No. 07-4474 has preserved the same such
claim.

Date: October 23, 2015

/s/
Stanley J. Caterbone, Pro Se
Appellant
1250 Fremont Street
Lancaster, PA 17603
(717)-669-2163
scaterbone@live.com
http://www.amgglobalentertainmentgroup.com/__

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U.S. Third Circuit Court of Appeals


Case No. 15-3400, Lisa Michelle Lambert Habeus Corpus
Order Appealed: Motion for Summary Judgment Dismissed October 14, 2015
SUBMISSION Statement by Appellant November 2, 2015

Stan Caterbone and ADVANCED MEDIA GROUP Expertise in


Computer and Information Related Technologies
1975 to 2015

TABLE OF CONTENTS

1. Computer Programming Grade A in 1975 at Lancaster Catholic High School Fortran


Computer Language
2. Computer & Man Grade A in 1977 at Millersville University Basic Computer
Language
3. Principals of Data Processing Grade A in 1978 at Millersville University Cobol
Computer Language
4. "Escaping the UNIX Tar Pit" Article for CD-ROM Magazine by Stan Caterbone and
John Garofolo, Computer Scientist at NIST
5. THE DIGITAL MOVIE Joint Venture Proposal for The Sony Organization
1. SONY CORPORATION
2. INTRODUCTION
3. SONY'S ROLE
4. SONY/PSDMS
5. TIMING
6. MARKETING & DISTRIBUTION
7. PRODUCT DEVELOPMENT
8. FINANCIAL STRUCTURE
9. June 1, 1987 Business Week Cover Story: SONY'S CHALLENGE
10.

STATISTICS FOR SONY DEAL

11.

Beyond the Bijou Article: SOPHISTICATED FILM TECHNOLOGIESAND


FUTURISTIC FORMATS ARE REDEFININGTHE NATURE OF COHTEMPORARY MOVIE
THEATERS.

12.

Investors Proposal

13.

Table Of Contents

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14.

Section II: The Project

15.

Investing In Motion Pictures

16.

Financial Forecasts

17.

Spring 1987 Article: You Oughta Be In Pictures!1 by Alan Talansky

18.

Disclosure

19.

Project Financing Alternatives

20.

ANALYSIS

21.

May 27, 1987: The Production Budget

22.

May 29, 1987: Letter From Flatbush Films

23.

June 12, 1987: Letter From Flatbush Films

24.

May 29, 1987: Letter to Joel Goldhammer, Patent Attorney

25.

June 25, 1987: Patent Research From Joel Goldhammer

26.

Power Productions I Letter of Intent

27.

May 20, 1987 Richard Fox Attorney Invoice For Letter of Intent

28.

Gamillion Studios Brochure

29.

Screen International Article: Gamillion: mini-major in the heart of Hollywood

30.

Cover Page for Executive Summary

31.

Executive Summary

1. Updates for Executive Summary October 10, 2015


2. History of Federal Whistleblowing Case and Targeted Individual
3. The Courts and the United States Legal System
4. Family History
5. The Public Record
6. Is Lancaster County Ground Zero for U.S. Sponsored Mind Control
7. Affidavit of Joinment of October 10, 2015
8. 29 FALSE ARRESTS RECORD Since 1987
9. 21 ILLEGAL NO TRESPASS NOTICES
32.

Stan Caterbone's Notarized Affidavit for FFCHS September 16, 2010


Redacted Version

33.

Stan Caterbone's Detailed Victimization Affidavit of 2010

34.

Samuel P Caterbone US Sponsored Mind Control Affidavit 1996

35.

Sammy A. Caterbone Affidavit of US Sponsored Mind Control 1991

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