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If Steve has decided not to use the model make a site with that content you have, get back as much money as you can, and then put all of the content for sale on Ounique.com . They'll sell it for you to their huge database of webmasters and give you 50% of all sales forever. 4 years from now you'll still be making money on that content.
Of course, since you need money now your best bet is to sell your content to Lightspeed. Keep trying to negotiate until they say, "Absolutely not. We are not interested." At that point, see my first paragraph.
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