Screen Actors Guild - Distributor's Assumption Agreement

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This Distributor's Assumption Agreement allows a distributor to assume a producer's obligations to the SAG for the payment of motion picture residuals. This form is designed for use in all states and is ready for immediate download.

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This Distributorís Assumption Agreement (SAG) allows a distributor to assume a producerís obligations to the Screen Actors Guild (SAG) for the payment of residuals. This agreement sets out the specific terms of the arrangement and is executed in connection with a Distribution Agreement. A written Distributorís Assumption Agreement will prove valuable in the event of disagreements or misunderstandings.

This Distributorís Assumption Agreement (SAG) includes the following provisions:
  • Parties: Sets out the name of the producer, the distributor and the title of the motion picutre;
  • Licensing: Sets out if the distributor is licensing the picture for a limited number of years or for perpetuity;
  • Territory: The territory where the motion picture will be distributed (domestic or foreign);
  • Media: The media to which the motion picture will be distributed including free TV, home video, pay TV or other media outlets.

Protect Your Rights and Yourself by using our professionally prepared up-to-date forms.

This attorney-prepared packet contains:
  1. General Information
  2. Distributorís Assumption Agreement (SAG)
State Law Compliance: This form complies with the laws of all states
Number of Pages6
DimensionsDesigned for Letter Size (8.5" x 11")
EditableYes (.doc, .wpd and .rtf)
UsageUnlimited number of prints
Product number#28054
This is the content of the form and is provided for your convenience. It is not necessarily what the actual form looks like and does not include the information, instructions and other materials that come with the form you would purchase. An actual sample can also be viewed by clicking on the "Sample Form" near the top left of this page.
 
 
 
DISTRIBUTORS ASSUMPTION AGREEMENT (SAG)
 
 
   In consideration of the execution of a DISTRIBUTION AGREEMENT between _________________ (“Producer”) and the undersigned Distributor, Distributor agrees that the motion picture presently entitled _________________ (the “Picture”) is subject to the Screen Actors Guild Codified Basic Agreement of 1995, 1992, 1989, 1986, 1983 or 1980 [strike those which are not applicable] for Independent Producers (“Basic Agreement) covering theatrical motion pictures and particularly to the provisions of [strike those of the following clauses (1), (2) or (3) which are not applicable]:
 
   (1)   Section 5 thereof, pertaining to additional compensation payable to performers when theatrical motion pictures, the principal photography of which commenced after October 6, 1980 and which are covered by said Section, are released to free television, and Section 34 pertaining to applicable pension and health contributions, if any are required;
 
   (2)   Section 5.1 thereof, pertaining to additional compensation payable to performers when theatrical motion pictures, the principal photography of which commenced after June 30, 1971 but prior to July 1, 1984 and which are covered by said Section, are released in Supplemental Markets and Section 34 pertaining to applicable pension and health contributions, if any are required; and
 
   (3)   Section 5.2 thereof, pertaining to additional compensation payable to performers when theatrical motion pictures, the principal photography of which commenced after July 1, 1984 and which are covered by said Section, are released in Supplemental Markets and Section 34 pertaining to applicable pension and health contributions, if any are required.
 
Distributor is distributing or licensing the Picture for distribution (select one)
 
   ________   in perpetuity (i.e., for the period of copyright and any renewals thereof)
 
         ________   for a limited term of _____ years
 
in the following territories and media (indicate those that are applicable):
 
 
Territory:
 
________   Domestic (the U.S. and Canada, and their respective possessions and territories)
 
________   Foreign (the world excluding the U.S. and Canada and their respective possessions and territories)
 
________   Other (please describe): ________________________________________
 
Media:
 
   _______   All         _______   Free Television
 
   _______   Home Video      _______   Other (please describe:
                                    
 
   _______         Pay Television      _______      See Description, attached
   hereto “A” and Incorporated
   herein by reference
 
   Distributor hereby agrees, expressly for the benefit of the Screen Actors Guild, herein called SAG, as representative of the performers whose services are included in the Picture, when the Picture is telecast on free television or exhibited in Supplemental Markets (as applicable), to make the additional compensation payments required under the Basic Agreement, if any, and the pension and health contributions required thereby, if any, with respect to the territories, media and term referred to above as provided in the applicable Sections referred to hereinabove (all such payments are collectively hereinafter referred to as “Residuals”). Distributor, for and on behalf of the Producer, shall make all Social Security, withholding, unemployment insurance and disability insurance payments required by law with respect to the additional compensation referred to in the preceding sentence.
 
   It is expressly understood that the right of Distributor to license the Picture for exhibition on free television or in Supplemental Markets (as applicable), or to exhibit or cause or permit the Picture to be exhibited on free television or in Supplemental Markets (as applicable), shall be subject to and conditioned upon the prompt payment of Residuals with respect to the territories, media and term referred to above in accordance with said applicable Sections. It is agreed that SAG, in addition to all other remedies, shall be entitled to injunctive relief against Distributor in the event such payments are not made.
 
   To the extent that Producer has executed a security agreement and financing statement in SAGs favor in the Picture and related collateral as defined in the SAG-Producer Security Agreement (“SAG Security Interest”), Distributor agrees and acknowledges that Distributors rights in the Picture acquired pursuant to the Distribution Agreement (to the extent those rights are included in the collateral covered by the Security Agreement) are subject and subordinate to the SAG Security Interest. SAG agrees that so long as Residuals with respect to the Picture for the territories, media and term referred to above are timely paid in accordance with said applicable Sections that SAG will not exercise any rights under the SAG Security Interest which would in any way interfere with the rights of the Distributor to distribute the Picture and receive all revenues from such distribution.
   SAG further agrees that if it exercises its rights as a secured party, it will dispose of collateral which encompasses any of Distributors rights or interests in, or physical items relating to, the Picture, only to a transferee which agrees in writing to be bound by SAGs obligations under this Assumption Agreement.
 
   Within a reasonable time after the expiration of each calendar quarter, but not exceeding sixty (60) days, Distributor will furnish or cause to be furnished to SAG a written report showing the gross receipts during the preceding quarter from the distribution of the Picture by Distributor on free television or in Supplemental Markets (as applicable), with respect to which Distributor is required to make payments hereunder, (whether distributed by the Distributor or through another distributor), and showing the date of the first exhibition on television or in Supplemental Markets (as applicable), and whether such exhibition was on network television and, if so, whether in prime time.
 
   Distributor shall also make available for inspection by SAG all Distributors statements delivered to Producer insofar as they relate to such gross receipts. SAG shall have the right at reasonable times and on reasonable notice to examine the books and records of Distributor as to such gross receipts pertaining to such distribution on free television or in Supplemental Markets (as applicable) of the Picture. If Distributor shall fail to make such payments as and when due and payable, Distributor shall pay late payment damages as specified in Section 5, 5.1 or 5.2, whichever is applicable, of the Basic Agreement.
 
   In the event of any sale, assignment or transfer of Distributors distribution or exhibition rights in the Picture, Distributor shall remain liable for the Residuals unless Distributor obtains an executed Distributors Assumption Agreement from such purchaser, assignee or transferee and SAG approves in writing the financial responsibility of the party obtaining such rights. SAG agrees that it will not unreasonably withhold its approval of the financial responsibility of any such purchaser, assignee or transferee. In the event SAG is notified that such purchaser, Assignee or transferee is a Qualified Distributor, then the financial responsibility of such purchaser, assignee or transferee shall be deemed automatically approved on the date SAG receives written notice of the assumption of obligations hereunder by the Qualified Distributor. Nothing herein shall release Producer of its obligations under the Basic Agreement or any other agreement between Producer and SAG.
 
   If SAG does not approve in writing the financial responsibility of the party obtaining such rights, this DISTRIBUTORS ASSUMPTION AGREEMENT shall remain effective and binding upon Distributor, and Distributor shall be obligated to pay Residuals which accrue during the term for those territories and media for which it was granted distribution rights and all extensions and renewals. Such obligations shall be subject to Section 6.C. of the Basic Agreement. The Distributor shall have the right, at its election, to cause to be immediately submitted to arbitration, pursuant to the provisions of Section 9 of the Basic Agreement, the issue of whether SAG has unreasonably withheld the approval of the financial responsibility of such purchaser, assignee or transferee for payments due hereunder.
 
   Distributor and SAG hereby agree that all disputes based upon, arising out of or relating to this Assumption Agreement, other than SAGs entitlement to injunctive or other equitable relief, shall be submitted to final and binding arbitration in accordance with the arbitration provisions contained in the Basic Agreement. Notwithstanding the foregoing, Distributor agrees and acknowledges that SAG is not precluded by this or any other provision of this Assumption Agreement from obtaining from a court injunctive relief or any other legal remedy at any time prior to arbitration or issuance of an arbitration award. The right to obtain injunctive relief from a court shall be applicable whether an arbitration proceeding has or has not been initiated, and further, without limitation, shall be applicable in conjunction with a proceeding to confirm and enforce an arbitration award against Distributor.
 
   THIS DISTRIBUTORS ASSUMPTION AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA AND THE UNITED STATES, AS THE SAME WOULD BE APPLIED BY A FEDERAL COURT IN CALIFORNIA WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS. SAG and Distributor agree that any arbitration or legal action or proceeding brought to interpret or enforce the provisions of this Distributors Assumption Agreement (including an action to compel arbitration or a petition to enforce, confirm or vacate an arbitration award) shall be held or brought, in the Guilds sole discretion, in Los Angeles County, California, or in New York County, New York. Distributor irrevocably submits to the jurisdiction of the federal and state courts therein. Distributor irrevocably waives any objection which it may now or hereafter have to the venue of any suit, action or proceeding, arising out of or relating to the Assumption Agreement brought in the State of California or in the State of New York and hereby irrevocably waives any claim that any such suit, action or proceeding in the State of California or the State of New York has been brought in an inconvenient forum. Notwithstanding the foregoing, SAG, at its option may bring a legal action or proceeding in the courts of any country or place where Distributor or any of its assets may be found and, by execution and delivery of this Assumption Agreement, Distributor irrevocably submits to the jurisdiction of the courts of such places. Further, Distributor consents to service of process by personal delivery or by certified or registered mail, return receipt requested, or by first class mail addressed to Distributors general counsel or if none is designated below, to Distributors representative identified below, or by any other method permitted by law. Notice will be deemed to have been duly given or made (a) immediately upon personal delivery or (b) if sent by mail, five (5) days from the date of mailing within the United States of America or seven (7) days from the date of mailing across national borders.
 
Date:         _______________________________________________
 
DISTRIBUTOR:   _______________________________________________
 
Address:      _______________________________________________
 
         _______________________________________________
 
By:         _______________________________________________
         (Signature)
   _______________________________________________
         (Please print name)
 
Title:         _______________________________________________
      (Please insert title)
 
Distributors Representative or General Counsel:
 
                     ______________
 

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