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[Music] slow theres a sky mortgage this segment is on payments under distribution contracts and issues that come up so your film producer youve entered into a distribution agreement with a third party lets say youve sold the rights to Germany what are the issues that come up the first thing is a deposit often you ask for a deposit from the distributor often its ten to twenty percent of the amount that theyve agreed to pay you as the minimum guarantee that payment often comes in prior to completion of the film indeed often prior to even complete commencement of principal photography from the distributors point of view they should be asking to get a security interest in the film where should be on the completion guarantee as coverage in case that film isnt delivered they often dont ask for that but its important issue the next issue that comes up is the main payment called the minimum guarantee that is usually stated as a percentage of the budget of the film this is I discussed
