Open Letter to Kendra Jade

Bo of LGI posts the following letter on his porngossip.com website: \nOpen Letter to Kendra Jade

Lipsitz, Green, Fahringer, Roll, Salisbury & Cambria LLP \nAttorneys at Law \n42 Delaware Avenue \nSuite 300 \nBuffalo, New York 14202-3857 \n----

February 1, 2000

Ms. Kendra [Jade] \nc/o Blue Light Pictures \n19205 Parthenia, Suite #G \nNorthridge, CA 91324

WITHOUT PREJUDICE

Re: Exclusive Services Agreement \nLGI, Inc.

Dear Ms. [Jade]:

We are attorneys for LGI, Inc. in matters related to the enforcement of both its contractual and intellectual property rights.

Reference is made to that certain "Exclusive Services Agreement" entered into between you and our client on or about October 1, 1999 [hereinafter, the "Agreement"].

It has been brought to our attention that in spite of having fully complied with the compensation terms of the Agreement by our client, you have not performed the services required of you under the Agreement.

By way of example, paragraph 1 of the Agreement requires that you devote your acting talents, abilities and efforts "...under the control and in accordance with the instruction and direction of Producer." (emphasis added) Instead, during our most recent (and only) production effort with you, you did not take instruction and direction of the Producer. Rather, you placed Mr. Rob Spallone in such position, especially with respect to co-actors and supporting talent. Indeed, our client does not even have possession of the materials shot at such time even though it bears responsibility for the production costs thereof.

Our client has likewise been unable to contact you about further work and promotion services you are required to perform. Your continued "disappearances" also constitute violations of the Agreement.

We invite (and urge) your prompt response to the foregoing. Be advised, however, that our client will continue to consider appropriate legal action to enforce its right under the Agreement. By extending you the opportunity to respond and explain your conduct, LGI, Inc. is not extending an offer-in-compromise or settlement.

We trust that you understand the seriousness of this matter and will act promptly to correct same.

Once again, please contact me immediately, whether directly or through your attorney.

Very Truly Yours,

LIPSITZ, GREEN, FAHRINGER, \nROLL, SALISBURY & CAMBRIA LLP

by Paul J. Cambria, Jr.