Common use of North American Clause in Contracts

North American. Theatrical – ten (10) years 5. In addition to the monetary obligations with respect to the production of the Picture discussed in Paragraph 3 above, the undersigned Guarantor guarantees the payment of any Director rights acquisition fees which may become payable with respect to the Distribution rights enumerated in Paragraph 4 above pursuant to the Standard Agreement. This guarantee applies to the Picture only and shall be in lieu of the Producer’s obligations pursuant to Core Article 14.08 or 14.09 of the Standard Agreement with respect to the distribution rights enumerated in Paragraph 4. This guarantee is binding upon the Guarantor and its successors and assigns, and inuring to the benefit of, and enforceable by District Council, subject only to satisfaction of the requirements of Paragraph 7 below. 6. The right of Guarantor to distribute exhibit or exploit the Picture in the territory, media and term described in Paragraph 4 above shall be subject to and conditional upon the prompt payment of Director rights acquisition fees due in accordance with the Standard Agreement. It is expressly understood that so long as such payments are made, neither the District Council, nor any Guild members shall interfere with the Guarantor’s quiet enjoyment of its right to distribute, exhibit or exploit the Picture in the media and territory described in Paragraph 4 above. In consideration of the Guarantor executing this guarantee, the District Council shall execute any and all documents necessary to discharge and terminate any and all security interest or encumbrances of any kind in the picture that they hold or control jointly or severally which was previously granted to them by the Producer, and shall file such documents with the appropriate government agency within ten (10) days of executing this guarantee. 7. If the Guarantor transfers any interest in the distribution rights enumerated in Paragraph 4 to a third party and desires to be relieved of its obligations attached to those distribution rights, the Guarantor warrants that it shall require that third party, as a condition of such transfer, to satisfy the requirements of Core Article