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Old 11-29-2016, 11:59 AM   #1
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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*define d*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
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
a. In*the*event*Distributor*DOES*NOT*enter*into*a*Sub licensing*Agreement*with*an
Affiliated*Entity,*a*royalty*amount*equal*to*50%*p ercent*(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*M aple*Films”*with*an
address*of**45*Killdeer*Crescent,*Toronto,*Ontario ,*Canada*M4G*2W7*as
b. In*the*event*Distributor*DOES*enter*into*a*Sublice nsing*Agreement*with*an
Affiliated*Entity,*a*royalty*amount*equal*to*50%*p ercent*(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*R eceipts*as*defined*herein*to
“Wild*Maple*Films”*with*an*address*of*45*Killdeer* Crescent,*Toronto,*Ontario,
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Old 11-29-2016, 12:06 PM   #2
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Looks standard to me. I have rarely seen one that offers different percentages.
What is it you don't like?
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