---

1. Financing

a. How much is the advance?

b. When is it paid?

c. What rights does co-producer get?

d. Foreign subsidies

1. Film funds

2. Production and/or post-production within foreign territory

e. Bank financing

1. Completion bond

2. Gap financing

2. Approvals and Controls

a. Who makes final creative decisions?

b. Who makes final business decisions?

c. What consultation/approval rights does co-producer get

1. Script; revisions

2. Budget

a. Can fluctuate depending on cast

3. Director

4. Key cast

5. Producers

6. Key technical personnel; director of photography; editor; composer

7. Insurance

8. Language of the Film

9. Length of film - 95 minutes for Japan

10. Completion bond

11. Credits

12. Dubbing issues

13. Final Cut

a. Censorship issues

b. Time slot issues for free television

14. Deferments

15. Profit participations

3. Co-Producer Contributions

a. Territorial license fee

b. Equity investment

4. Recoupment Priorities

a. In the co-producer's Territory

1. Distribution fee

2. Distribution expenses

3. Guarantee

4. Interest

5. Profits

b. The rest of the world

1. Approval of world sales agent

a. Approval of Territorial minimums

2. Third party collection agent

3. Distribution fee

4. Distribution expenses

5. Guarantee

6. Interest

7. Profits

c. Accounting issues

1. Monthly vs. quarterly statements and payments

2. Audit rights; who pays if there is an audit

5. Copyright/Rights Issues

a. Term of rights

b. Ownership of copyright

c. Reservation of Rights

1. Merchandising

2. Soundtrack album

3. Music and book publishing

4. New media/interactive rights

d. Security interests

1. Priorities

6. Warranties; Indemnities

a. Picture must be free and clear of all claims

7. Delivery requirements; delivery date

a. Where a bank loan or release date in involved, time is usually "of the essence"

8. Dubbing issues

a. Who is responsible

b. Voice approvals

9. Withholding tax

a. Withholding taxes can be a big issue - up to 25% of Advance or Guarantee

b. Specify Advance and Guarantee are Net of withholding taxes

c. Hungary is the most recent haven for avoiding withholding taxes

10. Breach, termination, cure periods

a. There is usually a cure period for breach

b. Most agreements provide for no injunctive relief or recision

11. Choice of Law

a. Usually depends on which party has the most financial leverage

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