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International Television Distribution Agreement Legal Forms and Contracts | Karemar

International Television Distribution Agreement Legal Forms and Contracts

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The following free agreement or contract provides for distribution of a motion picture to television markets worldwide. This agreement and contract is being provided for information and research purposes only, however it is a valid legal contract and agreement. Always consult an Attorney or Lawyer. This Agreement can apply in most states including California, New York, Florida, Nevada and others. Help improve this agreement by leaving a comment.

INTERNATIONAL TELEVISION DISTRIBUTION AGREEMENT

THIS AGREEMENT made as of this ____________________, BETWEEN: ____________________ (hereinafter called the "Producer"); AND ____________________, at ____________________ (herein called the "Distributor"). WHEREAS the Producer has the exclusive right to distribute and otherwise exploit the television Motion Picture entitled "____________________" (hereinafter called the "Motion Picture"); AND WHEREAS the Producer wishes to appoint Distributor the sole and exclusive distributor of the Motion Picture in the Territory as herein defined; NOW THEREFORE THIS AGREEMENT WITNESSETH that in consideration of the mutual covenants contained in this agreement, the parties agree as follows:

1.00 GRANT OF RIGHTS

1.01 Producer grants to Distributor the sole and exclusive right to distribute, sub-distribute, license, reproduce for servicing all agreements entered into hereunder, and market (collectively "distribute") the Motion Picture in all languages and in the media, territories (the "Territories") and for the term (the "Term") described in Schedule "A" annexed hereto. The agreement shall thereafter renew itself automatically for further periods of one (1) year, which renewal periods shall be subject to the right of termination by either party by the giving of ninety (90) days' written notice prior to the expiry of the Term or any renewal period.

1.02 The rights granted to Distributor include the following rights:

(i) Distribution Rights: The right to distribute the Motion Picture in all of the granted media which shall include; the right to distribute the Motion Picture on all forms of television now known or hereafter devised including, without limitation, free, pay, closed circuit, Direct Broadcast Satellite, CATV, syndicated or otherwise; the right to distribute the Motion Picture in the home video market. Distributor shall have the right to arrange distribution of the Motion Picture in multimedia, CD-ROM, interactive media and distribution via the Internet, for a period of 18 months from the date of this Agreement, provided that any such distribution shall be subject to the prior written approval of the Producer. All other media, including but not limited to, theatrical, print and electronic publishing, radio, dramatic, non-theatrical, direct marketing, merchandising and music publishing rights to the soundtrack are reserved to Producer.

(ii) Versions: To make such dubbed, sub-titled and close captioned versions of the Motion Picture and any promotional materials for use in such parts of the Territory as Distributor may deem advisable.

(iii) Distributor is granted the right to make such changes, alterations, cuts, additions, interpolations, deletions and eliminations into and from the Motion Picture and any promotional materials as (a) may be required by any duly authorized censorship authority or industry organization; (b) as may be required for distribution of the Motion Picture for use in any form of

television or on airlines; and (c) to repackage the Motion Picture or parts thereof for distribution in the home video market. The credits, English-language title, and copyright notice shall not be changed or deleted unless approved by Producer and such approval shall not be unreasonably withheld. No other changes will be made without the prior approval of Producer.

(iv) Advertising and Publicity: To create and issue by way of broadcast or otherwise by any means or authorize others to do so, publicity in connection with the Motion Picture (including the names, photographs, likenesses, biographies, acts, poses, voices and other sound effects, as well as transcriptions, films and other reproductions thereof, of the director(s), musicians, writers, composers, author, all members of the cast and all other persons rendering services in connection with the Motion Picture), and to use clips and stills from the Motion Picture and in connection therewith, to use Distributor's name and trademark and/or the name and trademark of any of Distributor's licensees. Not later than delivery of the Motion Picture, Producer will advise Distributor in writing of any customary restriction on such rights contained in any agreement entered into with the above-noted personnel and Distributor agrees to abide by such customary restriction.

(v) Claims: The right in the name of Distributor or otherwise to institute and prosecute all actions or proceedings which Distributor may deem necessary for the purpose of establishing, maintaining or preserving any of the rights herein granted or purported to be granted to Distributor and

similarly to defend any action or proceeding which may be brought against Distributor or assigns with respect to the Motion Picture or any of the right herein granted or purported to be granted to Distributor or which in any manner questions or disputes any of the rights of Distributor in and to the said Motion Picture or any of the rights herein granted to it at Distributor's sole expense, provided however that all recoveries from such dispute constitute Gross Receipts and all expenses incurred in connection therewith shall constitute Direct Distribution Costs.

2.00 DISTRIBUTOR'S BUSINESS JUDGMENT

2.01 The Distributor agrees to use reasonable good faith efforts to distribute the Motion Picture in good faith in accordance with sound business policies.

2.02 The Producer hereby expressly understands, acknowledges and agrees that the Distributor has not made and does not make any representation or warranty with respect to the amount of the license fees or other amounts which will or may be earned from the exploitation of the Motion Picture.

3.00 DISTRIBUTION FEES, COSTS AND EXPENSES

3.01 As consideration for its services, Distributor shall retain as its sole and exclusive property the distribution fees equal to the percentage of Gross Receipts as set out in Schedule A" (the "Distribution Fees").

3.02 "Gross Receipts" shall be defined to mean all monies actually received by Distributor or its sub-distributors arising from the exploitation of the Motion Picture. Gross Receipts do not include taxes paid, collection costs incurred, and any payment for duplication or manufacturing of materials.

3.03 After the termination or expiry of this Agreement, Distributor shall nevertheless be entitled to receive Distribution Fees and recoupment of Direct Distribution Costs due to it in respect of all agreements ("Original Agreements") made by or on behalf of the Distributor between the dates of

the commencement and termination of rights granted to Distributor hereunder from exploitation of the Motion Picture in the Territory.

3.04 "Direct Distribution Costs" means all reasonable and verifiable costs incurred in connection with the promotion, distribution, exploitation, licensing or sale of the Motion Picture. Such expenses include, long distance phone charges, photocopying, fax, shipping and courier charges, clearance and brokerage fees, warehouse and handling charges, insurance, transcoding, pro-rata share of Market Expenses, bank transfer charges, promotional material duplication (i.e. slides and black & white prints), any direct publicity or Promotional Expenses (e.g. cost of creation of advertising materials, paid advertising), taxes and duties including withholding taxes (but excluding Distributor's income taxes), copyright registrations and searches (if required). Such expenses shall not exceed 10% of Gross Receipts and shall be net of any third party contributions, such as Telefilm IMAF Funds. Duplication of screening cassettes and program master tapes, PAL duplication, dubbing, and foreign language versioning expenses shall be excluded from the 10% expense cap. Market and Promotional Expenses are further limited as set forth in paragraph 3.05.

3.05. Limit on Recoupable Expenses. As used herein, the term expenses and/or recoupable expenses shall mean all of Distributor's Direct Distribution Costs actually spent on behalf of the Motion Picture limited as follows:

(i) Market Expenses: These expenses include all costs to attend film markets such as MIP, MIP-COM and NATPE. Such expenses may include airfare, hotel, shipping, and telephone expenses incurred to attend a film market. Such expenses shall be recoupable for the first year of distribution only, and only for those markets, which Distributor is actively participating (i.e., Distributor attends, has a booth, and attempts to sell the Motion Picture). Distributor may recoup a total of $1,500 per market attended with an overall cap of no more than $5,000 overall market cap for the year. Distributor agrees to attend no less than three (3) markets during the first year of distribution. Should the distribution term extend beyond one year, no market expenses shall be recoupable during the second and any subsequent years.

(ii) Promotional Expenses: These expenses include the cost of preparing posters, one-sheets, trailers and advertising. Distributor agrees to spend no less than ____________________ and no more than ____________________ on promotional expenses. These expenses are limited to direct out-of-pocket expenses actually spent on behalf of the Motion Picture. At Producer's request, Distributor shall provide receipts for each and every expense or forgo recoupment. Recoupable promotional expenses do not include any of Distributor's general office, overhead, legal or staff expenses or expenses for attendance at any market. Distributor agrees to spend the minimum necessary to adequately promote the Film, including preparation of a one-sheet, videocassettes and customary promotional material, if these items have not been supplied by Producer. Distributor will use its best efforts to promote the Motion Picture, and will promote the Motion Picture in a no less favorable manner than any of Distributor's other films.

4.00 APPLICATION OF GROSS RECEIPTS

4.01 Gross Receipts shall be allocated as follows:

(i) Firstly to payment of Distribution Fees;

(ii) Secondly to recoupment of Direct Distribution Costs, as limited by paragraphs 3.04 and 3.05.

(iii) The balance will be paid to Producer.

Any tax credits for withholding taxes shall be given to Producer.

5.00 REPORTS AND ACCOUNTING

5.01 Distributor shall deliver to Producer at Producer's address set forth above, a written statement relating to the Gross Receipts received and Direct Distribution Costs deducted during the period to which the statement pertains. Such statements shall be delivered quarterly. Producer's share of Gross Receipts shall be forwarded by cheque with such reports. Distributor shall report blocked funds in accordance with paragraph 5.04. At Producer's Request, Distributor shall promptly supply Producer with a copy of any license agreement under which any third party acquires any rights to the Motion Picture.

5.02 Any statement and report submitted to Producer by Distributor hereunder shall be binding upon Producer and not be subject to any objection for any reason if not disputed in writing within three years after such statement or report shall have been delivered to Producer.

5.03 Distributor shall keep and maintain at its offices in the City of ____________________, complete and accurate books of account and records relating to the distribution, exploitation and licensing of the Motion Picture. Said books of account and records shall be kept and maintained under a standard system customarily used in the television industry in accordance with generally accepted accounting principles. Throughout the Term and for a period of one year after the expiration or sooner termination of either thereof, but not more than once in each calendar year, Producer shall have access for the purposes of conducting an audit, upon giving 5 business days' notice to Distributor, and during customary business hours to all said books and records insofar as they relate to the previous two years of distribution, exhibition and exploitation of the Motion Picture. Producer and its agent shall have the right to make extracts or copies therefrom. Producer acknowledges that this agreement and the books of account and records of the

Distributor contain confidential trade information. Neither the Producer nor the Producers' representatives shall reveal or use on the Producer's behalf or on behalf of any other person any facts or information arising from this agreement or any inspection of the Distributor's book of accounts and records hereunder. In the event that an audit discloses that Producer has been underpaid five percent (5%) or more, Distributor shall reimburse Producer for all audit costs. Otherwise, all audit expenses shall be borne by the Producer.

5.04 Gross Revenues which are frozen, blocked or incapable of being remitted from a territory (the "Blocked Territory") shall be placed in Distributor's bank account in the Blocked Territory and the Distributor shall notify Producer to such effect. Upon written request by Producer, Producer's share of Gross Revenues shall, at Producer's cost, be transferred to Producer's bank account in the Blocked Territory and in its currency. Such notice and transfer shall satisfy Distributor's obligation to pay and remit such Gross Revenue.

6.00 PRODUCER'S REPRESENTATIONS AND WARRANTIES

6.01 Producer represents and warrants, to the best of its knowledge and belief, and agrees as follows:

(a) Producer is duly organized under the laws of the State of ___________, has the full, complete and unrestricted right and power to enter into this Agreement and grant, sell, assign, transfer and convey to the Distributor all rights and licenses herein contained for the Term and in the Territory and in any manner or form whatsoever herein granted; it has taken all necessary action to authorize the execution and delivery of this Agreement and the same does not and will not violate any other agreement to which Producer is a party.

(b) Producer owns or controls all the licenses, property and all other rights herein granted including, without limitation, all rights of copyright throughout the Territory, musical synchronization rights, still photo rights, videotape and film footage licenses and other appropriate rights and licenses for constituent elements of the Motion Picture together with the right to use the same in publicizing, advertising and exploiting the Motion Picture. Producer shall at Distributor's request deliver to Distributor copies of all such documents as are evidence of Producer's chain of title or evidence that such rights are in the public domain.

(c) Producer has not and will not sell, assign, convey or encumber any of the rights herein granted to Distributor and Producer will not do or commit any act or thing that is in derogation of the rights herein granted to Distributor and the rights granted hereunder are free of any claims, liens or encumbrances in favor of any person whatsoever. Producer has not entered into, and will not enter into, any agreement which is inconsistent with any of the provisions of this Agreement and will not exercise any right to take any action which conflicts with, prejudices or derogates from the rights herein granted to Producer. There are no claims, demands or actions instituted, pending or threatened against the Motion Picture (other than Producer's obligations to pay Guild and union residuals and contingent compensation, which obligations will be satisfied by Producer) which if adversely determined, would impair or prevent the exercise by Distributor of its rights hereunder.

(d) Neither the Motion Picture nor any part thereof (including the music, sound and dialogue synchronized therewith), nor the exercise by any authorized party of any rights granted to the Distributor hereunder, will violate or infringe upon the trademark, tradename, copyright, patent, literary, artistic, personal, private, civil or property right or the right to privacy or any other right of any person, firm or corporation. The Motion Picture and the publicity materials delivered by Producer will not contain any material which is libelous, slanderous or defamatory.

(e) Producer has or will obtain a waiver of moral rights from all writers, composers and other persons having moral rights with respect to the Motion Picture.

(f) Producer has obtained, or will obtain on a timely basis and by no later than delivery of the Motion Picture:

(i) licenses or grants of authority to use the results of the services of performers, musicians and other persons connected with the production of the Motion Picture which are sufficient to permit Distributor to exercise all the rights granted under this Agreement; and

(ii) the consent of persons to use their names, voices, likenesses and biographies for the purposes of advertising and exploiting the Motion Picture.

(g) The Producer has obtained the synchronization and performing rights in the music contained in the Motion Picture and the Producer warrants that in respect of the uses granted hereunder that said rights are either:

(i) controlled by a performing rights society having jurisdiction in the Territory; or

(ii) in the public domain; or

(iii) owned or controlled by Producer.

(h) The Producer has not and will not itself nor has it nor will it authorize any other party during the Term to produce, distribute or exhibit any television or home video production based in whole or in part upon underlying literary material or real life incidents or material and will not itself nor will it authorize any other party to exercise any right to take action which would tend to derogate from or compete with the rights herein granted or agreed to be granted to Distributor.

(i) Distributor, in the exercise of its rights hereunder will not be requested to make any payment to any third party involved in the production of the Motion Picture or who rendered services in connection therewith, or any music performance fees, or to or on account of any union, guild or otherm collective bargaining agent because of any exploitation by Distributor, and any such payments shall be borne solely by Producer, and Distributor shall have no responsibility whatsoever with respect thereto.

(j) The Motion Picture when delivered will be completely finished, fully edited and titled and fully synchronized with language dialogue, sound and music and in all respects ready and of a technical quality, adequate for network television exhibition.

6.02 Distributor represents and warrants that Distributor is duly incorporated under the laws of the Province of Ontario, has the full, complete and unrestricted right and power to enter into this Agreement; it has taken all necessary action to authorize the execution and delivery of this Agreement and the same does not and will not violate any other agreement to which Producer is a party. Distributor further warrants that it is not insolvent or in danger of bankruptcy, and all payments from Licensees of the Motion Picture will be by check or money-order payable in the name of Distributor, and Distributor will not accept any other consideration, whether cash, discounts on distribution of other films, favors of any kind, or any other form of consideration, from any Licensee in return for licensing the Motion Picture.

6.03 The representations and warranties contained in this agreement shall survive the execution, delivery, suspension and termination of this agreement.

7.00 INDEMNIFICATION

7.01 Distributor shall defend, indemnify and hold harmless Producer, its officers, directors and employees from and against any demand, claim, action, liability, damages, cost and expense (including reasonable legal fees) arising out of or in connection with Distributor's breach of any of the representations, warranties or provisions contained in this agreement; provided that Producer shall promptly notify Distributor of any such demand, claim etc. and that Distributor has the right to participate in the defense and approve any settlement thereof. If Distributor elects not to consent to any settlement approved by Producer, Producer may nevertheless enter into such settlement, reserving all of its rights of indemnification hereunder as against Distributor; and nothing shall be construed as a waiver by Distributor of Distributor's right to defend against a claim by Producer for costs, damages or losses arising out of such settlement.

7.02 Producer shall defend, indemnify and hold harmless Distributor, its sub-distributors and licensees and its and their respective officers, directors and employees from and against any demand, claim, action, liability, damages, cost and expense (including reasonable legal fees) arising out of or in connection with Producer's breach of any of the representations, warranties or provisions contained in this agreement; provided that Distributor shall promptly notify Producer of any such demand, claim etc. and that Producer shall have the right to participate in the defense and approve any settlement thereof. If Producer elects not to consent to any settlement approved by Distributor, Distributor may nevertheless enter into such settlement, reserving all of its rights of indemnification hereunder as against Producer; and nothing shall be construed as a waiver by Producer of Producer's right to defend against a claim by Distributor for costs, damages or losses arising out of such settlement.

8.00 ERRORS AND OMISSIONS INSURANCE

8.01 Distributor may purchase an Errors and Omissions (E&O) Insurance policy which may be maintained for a period of three years (or such longer period as is required by any party to whom Distributor licenses the Motion Picture) in a form and for a period acceptable to Distributor from a qualified insurance company acceptable to Distributor naming Distributor and each and all of the parties indemnified herein as additional named insureds. The amount and coverage shall be for a minimum of One Million Dollars ($1,000,000) with respect to one occurrence and Three Million Dollars ($3,000,000) in the aggregate. The policy shall provide for ten (10) days' written notice to Distributor in the event of any modification, cancellation or termination. Distributor shall advance the cost of any E & O insurance policy purchased, and shall recoup such cost from Gross Receipts. Producer shall be added as an additional named-insured on any E & O insurance policy. The limits on recoupable expenses do not apply to any payments for E & O insurance.

9.00 DELIVERY

9.01 At its expense, Producer shall effect delivery ("Delivery") of the Motion Picture to Distributor at Distributor's head office.

9.02 Delivery shall consist of making physical delivery of all Delivery Items listed in Schedule "B" to Distributor's head office, provided that for any original film or video master materials Distributor shall be given a lab access letter; and

9.03 Distributor shall have the right to inspect and examine all Delivery Items, documentation and publicity and advertising materials tendered as Delivery hereunder and shall advise Producer within 10 business days after Delivery if and wherein the same is not complete, whereupon Producer shall promptly deliver to Distributor the items of which it failed to make Delivery of in the first instance. Acceptance by Distributor of less than all the items required for Delivery and/or release of the Motion Picture prior to Delivery of all items required shall in no event be construed to be a waiver by Distributor of Producer's obligation to deliver any item not delivered. Distributor shall have thirty days after delivery of any delivery item to raise any objection to its quality; if Distributor does not raise an objection within thirty days it shall waive its right to object. Distributor agrees to acknowledge complete Delivery if so requested by Producer. The cost of any item of Delivery required hereunder supplied by Distributor shall be charged to Producer's share of the Gross Receipts, if any, including any and all advances or guarantees paid hereunder, if any. Producer agrees that Distributor shall be the sole judge of the adequacy of Delivery, which judgement shall be exercised reasonably.

10.00 DEFAULT

10.01 This agreement may be terminated by either party upon written notice if:

(a) either party breaches a material provision of this agreement and fails to remedy such breach within 14 business days after written notice thereof by the other party;

(b) any representation or warranty made herein shall be found to be false, incorrect or misleading in any material respect, by omission or otherwise.

11.00 NOTICES

11.01 Any notice, payment, request or other communication required or permitted to be given hereunder by either of the parties to the other of them shall be given, made or communicated, as the case may be, by personally delivering the same, by telex, telegram or electronic facsimile transfer, or by registered or certified mail, first-class, postage prepaid, return receipt requested, addressed to the recipient as follows:

TO THE PRODUCER: ____________________, ____________________

With a courtesy copy to: ____________________, ____________________,
Phone: ____________________,
FAX: ____________________.

TO THE DISTRIBUTOR: ____________________, ____________________

or to such other place or address or addresses as either party hereto may designate from time to time by giving notice as herein provided. Any notice, request, payment or other communication shall be deemed to have been given, made or communicated, as the case may be, at the time that the same is personally delivered, or on the first business day next following the date upon which the same is dispatched by telex, telegram or electronic facsimile transfer or, if by registered or certifed mail as aforesaid, on the third (3rd) business day (excluding Saturdays, Sundays, statutory holidays or periods during which strikes, lockouts or other occurrences interfere with normal mail service) next following the date when same is so mailed.

12.00 GENERAL PROVISIONS

12.01 Nothing contained in this Agreement shall constitute a partnership or joint venture between the parties. Neither party shall become liable by any representation, act or omission of the other contrary to the provisions of this Agreement.

12.02 The parties agree to execute and deliver such further documents and perform and cause to be performed such further acts as may be necessary or desirable in order to give full effect to this Agreement.

12.03 This Agreement constitutes the entire agreement between the parties regarding the Motion Picture.

12.04 The failure at any time to require performance of any provision of this Agreement shall not affect the full right to require such performance at any later time. The waiver of a breach of any provision shall not constitute a waiver of the provision or of any succeeding breach.

12.05 Should any provision of this Agreement be held to be void, invalid, or inoperative, the remainder of this Agreement shall be effective as though such void, invalid or inoperative provision had not been contained in this Agreement.

12.06 Neither party may assign this Agreement without the prior written consent of the other provided that Distributor may appoint subdistributors and assign rights hereunder in the normal course, and Producer may assign its right to monies.

12.07 Time is of the essence with respect to all provisions of this Agreement.

12.08 Arbitration and Jurisdiction: This Agreement shall be interpreted in accordance with the laws of the State of ____________________, applicable to agreements executed and to be wholly performed therein. Any controversy or claim arising out of or in relation to this Agreement or the validity, construction or performance of this Agreement, or the breach thereof, shall be resolved by arbitration in accordance with the rules and procedures of AFMA, as said rules may be amended from time to time with rights of discovery if requested by the arbitrator. Such rules and procedures are incorporated and made a part of this Agreement by reference. If AFMA shall refuse to accept jurisdiction of such dispute, then the parties agree to arbitrate such matter before and in accordance with the rules of the American Arbitration Association under its jurisdiction in ____________________ before a single arbitrator familiar with entertainment law. The parties shall have the right to engage in pre-hearing discovery in connection with such arbitration proceedings. The parties agree hereto that they will abide by and perform any award rendered in any arbitration conducted pursuant hereto, that any court having jurisdiction thereof may issue a judgment based upon such award and that the prevailing party in such arbitration and/or confirmation proceeding shall be entitled to recover its reasonable attorneys' fees and expenses. The arbitration shall be final, binding and non-appealable. The arbitration will be held in ____________________ and any award shall be final, binding and non-appealable. The Parties agree to accept service of process in accordance with AFMA Rules.

13.00 MISCELLANEOUS

13.01 Distributor will consult with Producer in good faith on marketing plans before artwork is commissioned and the marketing of the Motion Picture has begun.

13.02 PAYMENTS/LATE PAYMENTS/LIEN: All monies due and payable to Filmmaker should be held in trust by Distributor. Filmmaker shall have a lien on Gross Receipts. All checks shall be made payable to "____________________." A copy of all producer reports and notices shall be sent to Producer and ____________________. All monies due Producer shall be paid when due. Distributor shall pay Producer interest at 10 percent per annum on any amounts more than 15 days past due.

13.03 ALLOCATION OF PACKAGE REVENUE: If the Motion Picture is included in a package with other motion pictures sold to a buyer, then the price allocated to the Motion Picture shall be on the basis of a reasonable allocation of revenues in light of the commercial worth of all the motion pictures in the package. Whenever the Motion Picture is sold as part of a package, Distributor shall disclose the licensee fee allocated to each motion picture in the package.

13.04 Distributor and Producer hereby establish minimum guarantee amounts per territory (hereinafter "Territorial Minimums") as set forth on the attached schedule. Nothing contained herein or in the schedule of Territorial Minimums shall be deemed to require Distributor in fact to obtain any such Territorial Minimum(s), but, rather, it is the intention of the parties hereto that Distributor may not enter into an agreement for an amount less than the applicable Territorial Minimum without first obtaining Producer's approval.

13.05 RETURN OF ADVERTISING MATERIALS: After termination all advertising materials and the right to use same to promote the Motion Picture, will revert to Producer. Any artwork or copyrightable material commissioned by Distributor shall be created pursuant to a written contract which states the work is a work-for-hire and that Producer is owner of all rights therein. If under the applicable copyright for the country in which any such work is created, ownership cannot be vested in Producer as a work-for-hire, then Distributor shall have the creator of any work assign all rights to Producer in a written instrument which shall be executed no later than when the work is delivered.

IN WITNESS WHEREOF, the parties have executed this Agreement.

________________________________
____________________
"PRODUCER"

_________________________________
____________________
"DISTRIBUTOR"

SCHEDULE "A"

Motion Picture: ____________________ - feature length Motion Picture

Territories: ____________________

Rights: Rights - as set out in 1.02(i)

Term: The term shall be ____________________, and if Distributor pays Producer $100,000 (U.S.) in Net Receipts, or more, in that ____________________ year period, Distributor shall automatically receive another ____________________ year term ("the first renewal period"). If Distributor pays Producer an additional $100,000 (U.S) or more during the first renewal period, then Distributor shall receive an additional ____________________ (____________________) year extension. Distributor shall not license film to any third party licensee for a term in excess of 12 years without the prior approval of Producer.

Distributor commission: ____________________ of Gross Receipts, the remainder after deduction of recoupable expenses, shall be paid to Producer.

SCHEDULE "B"

Materials To Be Supplied:

(a) A lab access letter for one of the following technically acceptable formats: Digital, Betacam, D2, D1, or Betacam SP NTSC and PAL standard sub-masters of the Motion Picture, duplicated directly from Producer's master. Such videotape shall be accompanied by separate music and effects audio tracks. If M&E track is unavailable Producer is to supply an alternative technically acceptable digital audio format, including but not limited to DAT and DA88, with fully mixed M&E tracks and without voice or narration. The above items must also be accompanied by a technical evaluation report, indicating such items are technically acceptable for broadcast. Producer must deliver Materials within 14 days of any confirmed offers.

(b) Story synopsis, press kits and one sheets.

(c) Music cue sheets and production cue sheet.

(d) Selection of 12 black & white stills and 12 color transparencies.

(e) Cast and crew bios.

(f) "As broadcast" script from the Motion Picture.

(g) A "34;" video-cassette of the Motion Picture (or 15 VHS copies) to be used for screening purposes.

(h) If Canada forms part of the Territory, certificate of certification from the CAVCO that Motion Picture are certified Canadian Videotape Productions pursuant to the Income Tax Act (Canada) or a "C" or "SR" number issued by the CRTC.

Schedule of Minimums

Territory Minimum Acceptable

ENGLISH SPEAKING

United States

Eng. Canada

Fr. Canada

UK

Australia/New Zealand

South Africa

East Africa

West Africa

West Indies

EUROPE

Germany/Austria

Switzerland

France

Italy

Spain

Benelux

Scandinavia

Iceland

Portugal

Greece

FAR EAST

Japan

Korea

Taiwan

Hong Kong

Singapore

Brunei

Malaysia

Indonesia

Phillipines

Thailand

India

Sri Lanka

Pakistan

China

LATIN AMERICA

Arg/Par/Uru

Brazil

Mexico

Chile

Colombia

Venezuela

C. America

Ecuador

Peru/Bolivia

Dominican Rep.

MIDDLE EAST

Leb/Middle East

Turkey

Israel

EAST EUROPE

Bulgaria

Czech

Hungary

Poland

Croatia

Serbia

CIS

Rumania

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