How good/bad is this distribution offer clause?

On a scale of 1 to 10, how crappy is this distribution deal? It was offered to me...and I'm scratching my head. Sorry about all the 'stars'. I copied from a pdf.

NET*1*RECEIPTS/ROYALTIES:*“Actual*Gross*Receipts”*shall*be*defined*as*all
payments*actually*received*by*Distributor*for*the*Non*Theatrical*and*Theatrical*sale*or
distribution*of*the*Picture.**For*purposes*of*this*Agreement,*“Net*1*Receipts”*means*all
payments*actually*received*by*Distributor*from*the*Non*Theatrical*and*Theatrical*sale*or
distribution*of*the*Picture,*less*_[expenses]_________.*“Net*2*Receipts”*shall*mean*Net
1*Receipts,*as*defined*herein,*less*any*amount*or*percentage*paid*to*or*otherwise*retained
by*an*Affiliated*Entity*pursuant*to*a*Sublicensing*Agreement.*Distributor*shall*pay*to
Owner*the*following*Royalties:
a. In*the*event*Distributor*DOES*NOT*enter*into*a*Sublicensing*Agreement*with*an
Affiliated*Entity,*a*royalty*amount*equal*to*50%*percent*(50%)*of*Net*1*Receipts
as*defined*herein*to*“Distributor”*30%*percent*(30%)*of*Net*1*Receipts*as*defined
herein*to*“Owner”*and*20%*percent*(20%)*to*“Wild*Maple*Films”*with*an
address*of**45*Killdeer*Crescent,*Toronto,*Ontario,*Canada*M4G*2W7*as
“Sales*Agent.”
b. In*the*event*Distributor*DOES*enter*into*a*Sublicensing*Agreement*with*an
Affiliated*Entity,*a*royalty*amount*equal*to*50%*percent*(50%)*of*Net*2*Receipts
as*defined*herein*to*“Distributor”*30%*percent*(30%)*of*Net*2*Receipts*as*defined
herein*to*“Owner”*and*20%*percent*(20%)*of*Net*2*Receipts*as*defined*herein*to
“Wild*Maple*Films”*with*an*address*of*45*Killdeer*Crescent,*Toronto,*Ontario,
Canada**M4G*2W7**”*as*“Sales*Agent.”
 
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