Hello ,

as you know PantherMedia introduced its image subscription in May this year.

Before launching the subscription we have not only asked many of our photographers, but also our image buyers to hear about their wishes, opinions and needs. We continued to listen to their feedback after the introduction of the subscription and have gathered tons of statistical data, user experience opinions and proposals for an advanced PantherMedia feeling.

Very often, our image buyers have asked for the down-to-earth use of images in large international companies or across the group, and have voted for the possibility of web-only subscriptions. Other image buyers requested a simpler subscription model.

We have listened and turned these wishes into reality.

We are glad to introduce these news and improvements to you and like to point out the associated contract amendment.

1. New: Corporate Licence - for corporations and affiliated enterprises
2. New and extended subscriptions - customized, flexible, easy
3. The next steps - you decide

1. NEW: Corporate Licence

Many of our customers belong to medium-sized businesses and international corporations with a company structure consisting of many affiliated companies within the group, like:

• Foreign subsidiaries for faciliating international trade
• Logistics companies responsible across the group for central buying
• Different main and special-interest-group editorial departments in large publishing houses

Based on frequent demands and requests of image buyers, PantherMedia introduces the new Corporate Licence. The price tag of this new licence (and hence your commission) is double the price of a standard licence and available for all sizes and resolutions as single image purchase and within the subscription plan. This usage right will also be part of the merchandising licence.

Thus we needed to upgrade the End User Licence Agreement and added the paragraph 2.2 Corporate Licence and enhanced the paragraph 2.3.3 (b) Merchandising Licence. For you as a contributor, just as it is the case with the Merchandising Licence, your participation is optional und you decide if you want to release your images for the new Corporate Licence.

2. New and extended PantherMedia image subscriptions

You want to make more money with your images. Image buyers want more flexibility and super easy subscriptions. Both wishes are united in the new PantherMedia image subscriptions:

• The customer can choose between a web-subscription and a print-subscription
• The customer can choose between:
  • a small package with 100 downloads/month
  • a large package with 750 downloads/month
• The duration of the subscription can be chosen individually, 1, 3, 6 or 12 months
• More options are available at extra charge:
  • Corporate Group Licence
  • Merchandising Licence
  • Full Resolution XXL size
  • The options can additionally be acquired for a single image, but also for the complete image subscription plan

These features determine the price for a PantherMedia subscription. The number of images which is included in the subscription can be downloaded immediately, regardless if only for layout purposes or already for the real image usage.

Immediately after the download of an image this sale is displayed in your account.

Your advantage: we share the revenues per download always equally with you. You will always receive 50%! This is fair and transparent.

Participation in the image subscription, like in the past, is optional.

Trust our experiences:

• Very often image buyers do not utilise their maximum download volume. Hence, your commission per image increases.
• Fair Play: only with PantherMedia you receive a revenue share even for unused subscription downloads!
• The number of downloads normally increases very strongly with image subscriptions. It does not matter if the images are downloaded for layout purposes only or already for the real image use: you will always receive your revenue share in any case.
• Image subscriptions are a volume business. Compared to the higher prices for single images - which will remain - the higher sales volume compensates the lower price per image.
• Together all these advantages create a high-level synergy to increase your commission.
• Customers buying image subscriptions are another group of customers than customers buying single images. Adding image subscriptions to the existing offer of acquiring single images creates a new and powerful offering.

With the introduction of the new web-subscription, your images will be offered only in the low web resolution 800 x 600, thus, the prices for images and your commission in the web-subscription will not reach the same high level as in the print-subscription. The normal print-subscription is limited to Letter Size (DIN A4). The PrintXXL subscription instead allows the full resolution download.

In terms of numbers your average commission per image is:

• Standard Subscription
  • PrintXXL-subscription: 0.33 - 1.49 EUR (0,47 - 2.10 USD) per image
  • Print Subscription: 0.27 - 1.09 EUR (0,38 -1,54 USD) per image
  • Web Subscription: 0.22 - 0.49 EUR (0,31 -0,69 USD) per image
• Extended Subscription
  • Corporate Group Subscription: 2 x the normal commission
  • Merchandising Subscription: 5 x the normal commission

Individual upgrades are very attractive. Those with a standard subscription can upgrade single images and have to pay credits for this purpose. You as a contributor receive 50% per image upgrade. Your additional revenue in this case:

• Print XXL: around 2.50 EUR or 3.53 USD (equal to 2.5 credits)
• Corporate Group Licence: around 5 EUR or 7.00 USD (equal to 5 credits)
• Merchanding Licence: around 15 EUR or 21.15 USD (equal to 15 credits)

You can find more information about the prices, commissions and example calculations on our Subscription Overview Page and on the Commission Overview Page.

With your approval to the new licences and the subscription we can break into new markets for you and PantherMedia. Please observe these next steps:

• Please read the expanded End User Licence Agreement
• Please observe the 14-day objection period

Until September 1st, 2009, you can disagree and opt-out of the Corporate Licence and/or of the image subscription plan or cancel your membership.

To deactivate your participation, please click on "MyPanther => My images => Policy Management" and deactivate ("opt-out") the particular product you do not want to participate in. You are free to deactivate ("opt-out") the particular product at any later time.

If you do not deactivate your participation (thus "opt-in"), your images will be made available for the Corporate Licence and the image subscription plan. You decide. We would like to thank you for your agreement and approval to our new products.

We are glad to be able to offer our customers the new Corporate Licence and the simpler subscription plan and we look forward together with you to a successful introduction!

Yours,
Robert Walters
and the complete PantherMedia Team

PantherMedia GmbH
Schillerstr. 40
80336 Munich
Germany

Internet: www.panthermedia.net
Email: info@panthermedia.net

Place of registry: Munich
Local Court Munich, HRB 154364
Board of Directors: Peter Ammel, Robert Walters
VAT-ID: DE238391457