Common use of Theatrical Sequels or Prequel Clause in Contracts

Theatrical Sequels or Prequel. For each sequel or prequel motion picture based on the Picture (“Sequel”), which Sequel is intended to be initially distributed in the United States for theatrical exhibition and is produced or authorized by Company, its assigns or licensees, Owners shall be paid an amount equal to: (i) one-half (1/2) of the Purchase Price paid to Owners in connection with the Picture pursuant to Paragraph 7; and (ii) a percentage of “net proceeds” (if any) derived from the applicable Sequel equal to one-half ( 1/2) of the percentage of “net proceeds” payable to Owners for the Picture payable to Owners pursuant to Section 9.1 above.

Theatrical Sequels or Prequel. For each sequel or prequel motion picture based on the Picture (“Sequel”), which Sequel is intended to be initially distributed in the United States for theatrical exhibition and is produced or authorized by Company, its assigns or licensees, Owners Owner shall be paid an amount equal to: (i) one-half (1/2) of the Purchase Price paid to Owners Owner in connection with the Picture pursuant to Paragraph 7; and (ii) a percentage of “net proceeds” (if any) derived from the applicable Sequel equal to one-half ( (1/2) of the percentage of “net proceeds” payable to Owners Owner for the Picture payable to Owners Owner pursuant to Section 9.1 9.2 and 9.3 above.