THIS DISTRIBUTION AGREEMENT made effective as of the _____ day of ______________, _______.
[NAME OF PRODUCTION COMPANY]
- and -
[NAME OF DISTRIBUTOR]
WHEREAS Producer is in the business of developing, producing and acquiring feature-length theatrical
motion pictures (hereinafter, the “Products”);
WHEREAS Distributor is in the business of distributing feature length theatrical motion pictures and
other productions in all media to the home video market; and
WHEREAS Producer and Distributor desire to enter into an exclusive arrangement under which
Distributor will distribute and exploit Producer’s Products, name and good will throughout the Territory
(as defined below) in all forms of media and otherwise.
NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration of the mutual premises
contained in this Agreement and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged by the parties, the parties agree as follows:
1. Rights Granted
Producer hereby grants, sells, sets over, and assigns to Distributor, throughout the Territory, the sole and
exclusive right under copyright during the term hereof, to manufacture, distribute, advertise, publicize,
promote, rent and sell all Products on video cassette (analog and/or digital) and all linear translations
and forms (non-interactive) of video and optical disc (including but not limited to laser disc, CD-ROM
and Digital Versatile Disc (“DVD”).
2. Term; Renewal
The term of this Agreement shall be ____ year(s), commencing on _________ [insert date]. This Agreement
shall be automatically renewed for an additional ____ year term unless terminated in writing by either
party at least ninety (90) days prior to the expiration of the current term.
The territory (“Territory”) is _______________________ [list countries making up the distributor’s territory].
The Territory shall also include ____________ [country] armed forces installations anywhere in the world,
airlines and ships serviced out of _______________ [country], and other similar areas customarily included
in such territories. Distributor specifically retains the right to distribute the Product in sub-titled and/or
dubbed format(s). If Producer requests Distributor to distribute Product in a specified language (whether
sub-titled or dubbed), and Distributor declines to do so, Producer is free to license those specific limited
distribution rights as to that individual Product in the specified language and/or format to another
On a motion picture-by-motion picture basis, gross receipts from the sale and exploitation of Products
shall be payable as follows:
(a) A total of $________ per Product shall be paid by Distributor to Producer as an Advance
Acquisition Payment, as complete and total payment for the acquisition of distribution and
related rights for each Product:
(i) Fifty percent (50%) of the total Advance Acquisition Payment shall be paid by
Distributor to Producer upon the complete delivery of materials for each Product;
(ii) Twenty-five percent (25%) of the total Advance Acquisition Payment shall be
paid by Distributor to Producer ________ days after the complete delivery of materials
for each Product;
(iii) The remaining twenty-five percent (25%) of the total Advance Acquisition
Payment shall be paid by Distributor to Producer ________ days after the complete
delivery of materials for each Product.
(b) Distributor shall recoup from gross receipts all customary manufacturing, distribution,
marketing, advertising and promotional costs and expenses directly paid or incurred, including
but not limited to printing, packaging, duplication, shipping and delivery costs, residuals and
marketing costs and expenses. The maximum allowable fixed marketing expense per Product
shall be $_________.
(c) All remaining gross receipts after the payments noted above shall be paid to Distributor.
5. Design, Duplication, Packaging
Distributor shall perform all customary design, marketing, printing, packaging, duplication, shipping
and delivery services in the regular course of business and shall recoup the same as set forth in Section 4.
Producer shall supply Distributor, upon reasonable request (if available), and at no cost or expense to
Distributor, design materials, artwork, films, slides, and the like for the purposes of box / sleeve design
6. Representations and Warranties
(a) Producer represents and warrants that it has the power to enter into this Agreement, that the
execution of this Agreement has been duly authorized by all necessary corporate action of
Producer’s directors and shareholders, and that Producer has the power to grant the rights set
(b) Distributor represents and warrants that it has the power to enter into this Agreement, and that
the execution of this Agreement has been duly authorized by all necessary corporate action of
Distributor’s directors and shareholders.
(c) This Agreement constitutes a valid and binding obligation on each of the parties, enforceable in
accordance with its terms.
(d) No suit, action, arbitration, or legal, administrative or other proceeding or governmental
investigation is pending or threatened against or affecting either party, their respective business
or properties, financial or other condition, or the transactions contemplated under this
(e) The exercise of any of the rights granted to Distributor hereunder will not violate the rights of
any third party nor require Distributor to make any payment of any kind to a third party.
Producer shall indemnify Distributor, its directors, officers, shareholders and employees from
any claim inconsistent with this paragraph.
7. Intellectual Property; Credits
(a) The parties agree that the trademarks and copyrights of each party shall be protected, and that
credits and logos shall be appropriately utilized upon reasonable and appropriate notice thereof.
(b) Distributor shall have the right to develop and distribute advertising, publicity and promotional
materials relating to any Product and packaging therefor incorporating Producer’s trademarks,
trade names, service marks and logos (“Marks”), provided that any such materials and packaging
(i) clearly identify the Marks used in such materials with a credit line denoting that the
Marks are the mark of and used with the permission of Producer;
(ii) be submitted to Producer for Producer’s prior written approval in each case at least ___
days prior to their intended distribution. Producer may disapprove any such use if such
use jeopardizes the validity of any of the Marks, or does not conform to previously
approved uses of the Marks, or does not conform to Producer’s standards. Except as
otherwise provided herein, Distributor will not disseminate any materials or packaging
that have not been approved by Producer. If Distributor does not receive either approval
or disapproval for any materials submitted to Producer within _____ days from the date
of submission of same, the materials shall be deemed approved by Producer.
(c) Other than as expressly set forth herein, Distributor shall make no use of the Marks or any
confusingly similar marks without the prior express written consent of Producer in each instance.
Distributor shall not authorize or purport to authorize any third party to make any such use, and
it will expressly provide in any applicable third party agreements that such parties will only be
entitled to use such names and marks on materials supplied to them by Distributor in accordance
with Distributor’s rights hereunder.
8. Miscellaneous Provisions
(a) This Agreement and all schedules and attachments hereto constitute the final, complete and
exclusive statement of the terms of this Agreement and supercede all prior and contemporaneous
understandings or agreements between the parties, whether verbal or written, with respect to the
subject matter hereof.
(b) No party has been induced to enter into this Agreement by, nor is any party relying on, any
representation or warranty outside of those expressly set forth in this Agreement.
(c) This Agreement shall be governed by and construed in accordance with the laws of
_______________. Any legal actions, claims or demands shall be handled in a court of competent
jurisdiction within _________________.
(d) The parties intend that this Agreement shall survive the sale, license, lease, transfer or
assignment of all or part of Producer’s interest in the Products.
(e) All notices required or permitted to be given pursuant to this Agreement shall be delivered by
hand to the party for which it is intended, or sent by facsimile transmission, electronic email or
other form of transmitted or electronic message or personally delivered, sent by prepaid courier
or registered mail directly to such party at the following addresses or at such other address as
either party may stipulate by written notice to the other:
If to Producer:
Attention: [name of contact person]
If to Distributor:
Attention: [name of contact person]
Notices shall be deemed to be received on the date of actual delivery or transmission.
(f) This Agreement may be executed in multiple counterparts, each of which shall be deemed an
original and all of which, taken together, shall constitute one and the same instrument, which
may be sufficiently evidenced by one counterpart.
IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed as of the date first
[NAME OF PRODUCER] [NAME OF DISTRIBUTOR]
Name & Title of Signing Officer Name & Title of Signing Officer
This Schedule A is attached to and incorporated into the Distribution Agreement between [Name of
Producer] (“Producer”) and [Name of Distributor] (“Distributor”) dated _____________, with respect to
the manufacture, marketing and sale of feature length motion pictures in various formats to the home
video market (individually, a “Picture”).
Producer agrees as a material obligation under the Distribution Agreement to make full and complete
delivery of each and every item listed below to Distributor, to the location(s) designated by Distributor.
Such delivery by Producer will consist of making physical delivery to Distributor or its designee, at
Producer’s sole cost and expense (transportation costs prepaid).
(a) Complete 35mm Original Cut Negative of the full and final picture. This colour feature negative
will be fully timed, assembled, conformed and complete in all aspects to the final composite
release print including main and end titles. OR
(b) Complete 35mm Digital Intermediate (D/I) Negative of the full and final picture. This colour
feature negative will be fully timed, assembled, conformed and complete in all aspects to the final
composite release print including main and end titles. Producer may decide between item 1(a) or
1(b) as applicable. If completing the film in D/I, Producer MUST have the full feature film D/I
data stored on ‘Firewire’ drive or equivalent and physically delivered to Distributor unless
otherwise instructed in writing by Distributor.
2. 35mm Interpositive manufactured from Item 1(a)– this MUST be 1 light. If the Picture is being
completed in D/I, an interpositive is not required.
3. 35mm Dupe Negative (Internegative) manufactured from Item 2 – this MUST be 1 light. If the
feature is in any other language than English, all appropriate English subtitles should be contained within
this Facility. If the Dupe Negative is from a Digital source then it should be a one light facility containing
NO light changes and should be on PolyEstar Film. If the Picture is being completed in D/I, this item is
4. 35mm Textless Background Interpositive. If Item 1(a) or 1(b) contain any titles, captions, dialogue
sub titles, additional textless elements will need to be provided of the same. These additional elements
should be free of any written text, and be of at least double the length of the original texted section.
Except for text, they will be fully timed, assembled, conformed and complete in all aspects to the sections
they are to replace including all original optical negatives used.
5. Dolby Digital (or equivalent) Magnetic Optical Disk (MO) from which Item 6 has been
manufactured and suitable for the striking of first class digital optical sound tracks.
6. 35mmDolby Digital (or equivalent) Optical Soundtrack Negative synchronized perfectly with
Item 1(a), 1(b) or 2. This shall be fully mixed and balanced and contain all dialogue, sound FX and music
contained in the final Release Print.
7. 35mm Composite Release Print manufactured from items 1(b) or 3 and 6. This print should be
prepared for theatre projection.
Wherever applicable, the following materials are to be delivered as DA88 cassette, Protools file or
8. 1 x 5.1 Printmaster as Lc/Rc/Ls/Rs/Sub (tracks 1-6) plus Dolby LT/RT on tracks 7&8 at 24fps to
match the film reels.
9. 1 x 5.1 M&E mix as Lc/Rc/Ls/Rs/Sub (tracks 1-6) plus guide dialogue on track 8 and any
options on track 7 to match the film reels. [6+2-track]
10. Unrestricted access to either Protels or DA-88 copies of the 5.1 stems. Music, effects and dialogue
stems must be fully recorded, equalized and synchronized with the Picture and conformed in all respects
to the Answer Print.
11. DAT or CD 2-track “stereo” copy of all music contained in or composed for the film. (this must be
in its raw original form – i.e. without any fades, dips etc.)
12. HDCAM SR (High Definition Video Masters) of the film, first generation transfer from Item 2.
The masters will contain, in perfect synchronization with the picture, the original stereo mix in the
Tracks 1 - 6: 5.1 Theatrical or DVD mix in L/R/C/Sub/LS/Rs format.
Tracks 7 - 8: Lt/Rt Theatrical or DVD Mix.
Tracks 9 -10: TV Lt/Rt mix
Tracks 11-12: TV Stereo M&E
Must include fully graded textless backgrounds for any sections with superimposed titles or text at the
tail. The masters shall not contain reel breaks. Each master is to be delivered with a full technical
evaluation report for the picture and audio quality and will be mastered to international standards and
must have passed a 100% full quality control check before final delivery. The quality of the grading, pan
& scan, framing etc must be approved by the Director, and Producer before delivery. The masters are to
be delivered in each of the following formats: at 24FPS matching the print master.
a. Full Frame – panned and scanned
b. Original shooting aspect ratio
c. 16x9 Full Height (Full Active Raster)
13. Digital Beta PAL down-convert made from Item 12a only.
14. Digital Beta NTSC down-coverts made from Item 12a only.
15. (Five) VHS or DVD of the feature made from Item ____.
16. 1 x 5.1 Printmaster as L/C/R/Ls/Rs/Sub (tracks 1-6) plus tracks 7&8 as the LT/RT mix
conformed to PAL. Item 13 must be pitch corrected.
17. 1 x 5.1 Printmaster as L/C/R/Ls/Rs/Sub (tracks 1-6) plus tracks 7&8 as the LT/RT mix
conformed to NTSC.
18. Export Script. Fully timed and spotted post-production dialogue continuity script containing all
dialogue, narration, song vocals as well as the image and sound description corresponding to the final
composite release print including the main and end titles and any sub-titles or other text that appears. If
the dialogue of the Film contains any local colloquialisms, mannerisms or any other language other than
English, the continuity is to contain a literal English translation.
19. Music Cue Sheet detailing all music contained in the picture (including title,
composer/arrangers, publishers, copyright owners, performers, pre-recorded source references, usage
category, duration and cues).
20. All out takes, trims, spares, title, VFX, opticals, and TV cover shots as shall be reasonably
required. Any cut or uncut footage or audio that can be used for the purpose of DVD extra material, TV
spots or other promotional activities. An itemized list of reasonable detail is to be provided with the
21. All relevant notes and data, edit decision lists, (EDL) used in the editing, grading and video
mastering of the film. An itemized list of reasonable detail is to be provided with the access
22. All pre-mixes, stems, data, edit decision lists (EDL), used in the production of the final sound
mixes. All location and additional sound recording created whether or not used in the final mix. An