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11.07 Grand Rights Tour License-Live Stage Performance of Dramatic-Musical Work
TOUR LICENSE When signed in the spaces indicated below by all parties, this
contract, dated ______________, will constitute an agreement
between _____________ (the "AUTHOR") _______________ (the
"PRODUCER") whereby AUTHOR exclusively licenses to
PRODUCER the right to produce and present the dramatic-musical
work entitled _________________ (the "Play") for a bus-and-truck
touring production (the "Tour") as understood in the theatrical trade,
specifically excluding dinner theatre performances, C.O.S.T.
(strawhat) theatre performances, amateur/semi-professional
performances and first-class performances (except as provided for in
Paragraph 1.2), upon the following terms and conditions:
1. Territory and Scope
1.1 This License shall extend throughout the United States of
America and Canada, specifically excluding Toronto and New York
City (the "Territory"). It is expressly understood that, at least six (6)
weeks prior to the first performance given hereunder, AUTHOR shall
receive from PRODUCER written notification of the cities and dates
that have been confirmed to be played during PRODUCER's Tour.
Thereafter, PRODUCER will notify AUTHOR accordingly when any
additional booking has been made.
1.2 In the event that the Authors of the Play approve an
engagement of the Tour in New York City during the term of this
License, PRODUCER will enter into a separate licensing agreement
with the Authors' representatives which shall call for Authors' royalties
of 10% of Net Adjusted Gross Weekly Box Office Receipts, as defined
in Paragraph 3.3 herein.
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2. TermThe "Term" of this License shall commence with the date
hereof, and subject to earlier termination as herein provided, shall
terminate following the last performance of the Tour. It is expected
that the Tour shall commence on or about __________, 20__, but in no
event later than _________, 20__.
3. Royalties Payable to AUTHOR
3.1 PRODUCER shall pay the following sums as royalties: for
performances in regular "non-first-class" cities, a guarantee of twenty-
five thousand dollars ($25,000) per week of performance against ten
per cent (10%) of Company Share; for performances in the "first-
class" cities, defined as Boston, Philadelphia, Washington, DC,
Baltimore, and Chicago, a guarantee of twenty-five thousand dollars
($25,000) per week of performance against twelve per cent (12%) of
Company Share. In the event that any engagement is booked on a
"four-wall" basis, royalties shall be paid as follows: a guarantee of
twenty-five thousand dollars ($25,000) per week of performance
against ten per cent (10%) of the Net Adjusted Gross Weekly Box
Office Receipts.
3.2 As used herein, the term "Company Share" shall mean the
aggregate of the "Guaranteed Company Share", defined as the fixed
fee paid to PRODUCER by the local promoter or sponsor of an
engagement of the Play hereunder, and "Overages", defined as any
additional share of the "Net Adjusted Gross Weekly Box Office
Receipts" and/or any profits or additional compensation paid to
PRODUCER by the local promoter or sponsor (in excess of
PRODUCER's weekly Guaranteed Company Share) including, without
limitation, gross weekly box office receipts, operating profits and
adjusted services for such week. The applicability of "Company
Share," "Guaranteed Company Share" and the definition under
Paragraph 3.3 herein shall only be effective if all other parties entitled
to receive a royalty have their royalty computed on the same basis.
3.3 As used herein, the term "Net Adjusted Gross Weekly Box
Office Receipts" shall be defined as all sums received by the local
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promoter or sponsor from all box office sales, ticket brokers and all
other sales of admission allocable to performances of the Play given in
a particular week, less only: federal, state and local admissions taxes
actually paid, restoration fees or surcharges for which PRODUCER
has furnished AUTHOR appropriate governmental substantiation or
documentation, remote box office charges, group sales, benefit or
theatre party sales commissions actually paid not to exceed ten percent
(10%), subscription sales commissions actually paid not to exceed
twelve percent (12%) and commissions or fees paid to credit card
companies not to exceed five percent (5%), commissions actually paid
in connection with automated ticket distribution or remote box offices,
such as Ticketron, agencies, or telephone charge systems such as
Chargit or Telecharge not to exceed 7%; provided that no ticket sold
shall be subject to more than one of the ticketing commissions set forth
above (e.g., credit card commissions shall not be taken on any ticket
sale on which group sale, phone sale, remote box office or subscription
commission is taken). In no event shall any booking fee be deducted
for purposes of computing Authors' royalties (whether based on a
share of Guaranteed Company Share or any additional profits shared in
by PRODUCER or Net Adjusted Gross Weekly Box Office Receipts)
hereunder.3.4 As used herein, a "week" shall commence on Monday and
end on Sunday, except for the opening week of the Tour.
3.5 Upon the signing of this Agreement, PRODUCER agrees
to pay to AUTHOR the sum of ____________ ($__,000) as a non-
returnable royalty advance to be applied to the first two weeks of the
Tour. A second royalty advance of __________ ($__,000) must be
paid to AUTHOR on or before _____, 20__ if PRODUCER has not,
prior to said date, actually presented the Play before a paid audience as
part of its Tour. The second advance shall only be recoupable against
royalties at a rate of 50%.
3.6 Upon the conclusion of the Tour, PRODUCER agrees to
pay to AUTHOR 2.5% of 100% of the net profits of the entity formed
to present the Play, as evidenced by the final Tour profit and loss
statements verified by PRODUCER's certified public accountants.
AUTHOR reserves the right to audit all financial statements
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independently. In no event will the determination of "net profits" be
made on any basis less favorable than that of the most favored
investor.
4. Payment of Royalties4.1 PRODUCER agrees that AUTHOR shall receive both the
guaranteed royalties and the percentage fees provided for in Paragraph
3 above no later than ten (10) days following the final performance of
each week's engagement with [i] an executed copy of PRODUCER's
agreement with the promoter and/or theatre, [ii] complete box office
statements and [iii] a settlement accounting between PRODUCER and
the promoter for each performance of the preceding week, certified by
the box office treasurer and/or other responsible officer and
accompanied by any and all sums shown to be due to AUTHOR
thereby and per the terms above.
4.2 PRODUCER agrees that all sums to be paid to AUTHOR
as royalties under this License are to be held by PRODUCER in trust
for AUTHOR until actually received by AUTHOR. This trust
relationship shall not be open to question or challenge by PRODUCER
by reason of PRODUCER's failure to segregate such sums or to
commit any other act that might otherwise jeopardize such
relationship.
5. Rental of Material
5.1 For the materials set forth in Paragraph 5.4 below,
PRODUCER hereby agrees to pay to AUTHOR a rental fee of four
hundred dollars ($400) per week for each week in which any
performance of the Play is presented. This rental fee shall be paid to
AUTHOR at the same time that the royalty is paid as provided for in
Paragraph 4.1 above.
5.2 Upon the signing of this License, PRODUCER agrees to
pay to AUTHOR a security deposit for the materials of one thousand
dollars ($1000), to be refunded to PRODUCER following the safe
return of such materials to AUTHOR, less handling/shipping/missing
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material/brokerage/late/tax fees or charges and/or any outstanding
account obligations.5.3 PRODUCER agrees that where AUTHOR is obliged to
collect state sales tax on the weekly rental fee due, said sales tax shall
be deducted from the returnable security deposit or shall be paid by
PRODUCER to AUTHOR upon demand. AUTHOR is obliged to
collect sales tax on such rental fees in, but not limited to, New York,
California and Minnesota.
5.4 The materials to be furnished to PRODUCER hereunder for
the rental fee specified in Paragraph 5.1 above shall consist in their
entirety of the following: 25 libretti-vocal books; 2 piano-conductor
scores; 1 standard orchestration.
5.4 PRODUCER shall be solely responsible for any cost
incurred in transposing the music contained in said materials.
PRODUCER agrees to pay transportation charges both ways for the
materials that AUTHOR has rented to it. Any expense that
PRODUCER is required to incur with respect to the delivery or return
of the materials to AUTHOR's library shall be charged to
PRODUCER; PRODUCER agrees upon demand promptly to
reimburse AUTHOR for the full amount of such expense.
5.5 PRODUCER understands that the material will not be used
for any purpose other than the giving of performances of the Tour.
PRODUCER agrees that, no later than seven (7) days after the last
performance hereunder, all scripts and scores will be returned to
AUTHOR -- by prepaid express -- insured for not less than seven
hundred fifty dollars ($750) per package. The complete materials are
to be in good and usable condition. Said materials are to be shipped to
the following address: _____________________________. Should
PRODUCER fail to return the complete materials to AUTHOR as
herein provided, AUTHOR shall be entitled to an additional rental fee
of twenty dollars ($20) for each day that the materials are retained by
it beyond the period of seven (7) days after the last performance.
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6. PaymentsAll payments hereunder are to be made by certified or
company check to the order of _________________________________.
7. Billing
7.1 The Play shall be billed in all programs, houseboards,
displays, advertising and publicity in the following manner:
[Name of Play]
Book by __________ Music by _____________ Lyrics by
____________
7.2 The Authors are to receive billing credit in all forms of
publicity and advertising under the control of the PRODUCER where
and whenever the title of the Play appears, immediately following the
title of the Play. The names of the Authors shall be equal in size, type,
coloring, boldness and prominence. No billing shall appear in type
larger or more prominent than the billing to the Authors except for the
title of the Play, provided, however, that such billing need not be
accorded on marquees and need not be accorded in connection with
any press release relating solely to the director or the star(s) of this
production of the Play, or in ABC or teaser ads, or in radio or
television ads, or in print ads of less than one-quarter page in which
only the stars above the title, the title of the Play, the name of the
theatre, and/or critics' comments appear. In addition, only stars billed
above the title of the Play may receive billing as large or prominent as
the Authors. Whenever credits are afforded in a so-called 'billing box,"
the size of the aforementioned credits shall be determined by reference
to the size of the title in said billing box, provided that all other
persons receiving credit also receive billing credit solely in the billing box.
7.3 No inadvertent failure to accord the foregoing billing shall
be deemed a material breach hereof provided that PRODUCER shall
take prompt steps to cure such failure prospectively after receipt of
written notice thereof.
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8. TicketsPRODUCER shall require the theatre(s)/promoter(s) booking
the Tour to make available to AUTHOR on request, (to be made at
least 48 hours in advance of performance), free of charge, four (4)
best-priced tickets in a central position for an occasional performance
of the Play, and AUTHOR agrees not to sell the same.
9. Warranty
AUTHOR warrants only that it has the right to enter into this
License Agreement.
10. Limitation of Rights
10.1 The granting of this License to PRODUCER to perform
the Play is not to be construed as a right to interpolate new music,
lyrics or text without the participation and prior written approval of the
Authors. All changes of any kind made to the original Broadway
presentation of the Play, including, but not limited to, the deletion or
interpolation of new music, lyrics or dialogue or change in the period,
characters or characterizations must be approved in writing by the
Authors.
10.2 PRODUCER is not permitted to make any copies of the
materials or to alter, amend, or change them without AUTHOR's prior
written permission.
10.3 Except for the usual right to advertise and publicize the
Play by means of print, radio and television (in which no radio or
television commercial produced by PRODUCER shall contain
excerpts from the Play in excess of the amount allowed for such
purposes under the rules of Actors Equity), PRODUCER is prohibited
from otherwise recording, reproducing, televising, videotaping,
broadcasting and disseminating the Play or any portion of it by any
means whatsoever. This prohibition includes the use or creation of
taped music accompaniment, whether on cassette, CD, computer
diskette or any other format. Any violation hereof will be deemed
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willful infringement of the copyright of the Author(s) and shall
automatically terminate this License without prejudice to the other
rights and remedies that may be available to the Authors and/or
AUTHOR at law or in equity. 10.4 PRODUCER acknowledges that AUTHOR and the
Authors shall not be obliged at any time to offer royalty participation
or otherwise make payment to any persons hired by PRODUCER to
direct, choreograph, stage, design or otherwise actualize this
production unless that person or persons have entered into a bona fide
written collaboration agreement directly with the Authors.
11. Author Approvals
AUTHOR shall have approval of director/choreographer,
casting, costume, set and lighting designers and any replacement of the
foregoing. AUTHOR will be entitled to approve the sets and costumes
prior to any use thereof, and PRODUCER shall accommodate the
AUTHOR in exercising its right of approval. AUTHOR shall have
approval of the music director, orchestrator, vocal and dance arranger.
If the Tour has bookings of more than 20 weeks, the PRODUCER
agrees that the set will be enhanced to a "first-class status" which shall
also be subject to the approval of AUTHOR.
12. Merchandise
PRODUCER agrees as a condition of this License that no
merchandise based on the Play, including souvenir programs, shall be
sold or distributed without reaching a separate agreement with
AUTHOR.
13. Disclosure
PRODUCER agrees to disclose to AUTHOR, upon request, the
terms of PRODUCER's contracts with other parties associated with
this Tour, including, but not limited to agreements with booking
agencies, presenters, and sponsors.
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14. Inspection of Books and RecordsPRODUCER agrees to keep and maintain full and regular
books and records in New York City wherein shall be recorded all
items in connection with the production and presentation of the Play.
Such books and records shall be open at all reasonable business hours
for inspection by AUTHOR or its representatives at PRODUCER's
office, and AUTHOR shall have the right to make copies thereof and
take extracts therefrom. AUTHOR's rights hereunder shall continue for
twelve (12) months following the date of the last performance licensed
hereunder.
15. Assignment of Rights
This License may not be assigned without the prior written
consent of AUTHOR. Any approved assignment shall in no way
relieve or reduce PRODUCER's primary liability and obligation to
AUTHOR hereunder.
16. Termination
This License shall automatically terminate in the event that
PRODUCER defaults in performing any of the material obligations
herein imposed upon it or otherwise violates the provisions of this
License, and such default or violation continues for a period of ten
(10) days after service upon PRODUCER by AUTHOR of written
notice of such violation or default after it comes to the attention of
AUTHOR. It is understood that the time within which PRODUCER is
required hereby to make payments to AUTHOR is of the essence of
this License Agreement. Any default which PRODUCER has not
cured within the above stated time period shall be considered a
material breach hereof. In the event of such termination, it is
understood that all rights hereby granted to PRODUCER shall be
revoked immediately without prejudice to any rights which have
accrued to the Authors or AUTHOR. PRODUCER agrees to reimburse
AUTHOR and/or the Authors for any expenses incurred in enforcing
their rights hereunder, including, but not limited to, attorneys' fees,
telephone and telegraph charges and collection expenses.
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17. Reservation of RightsAll rights in and to the Play other than those specifically
licensed to PRODUCER hereunder are reserved to AUTHOR with the
unrestricted right to use, exploit and/or dispose of any or all of them at
any time, whether or not the exercise thereof may be in competition
with the rights granted hereunder. Any performances by PRODUCER
outside the Territory impinge on AUTHOR's reserved rights and are,
therefore, copyright infringements. Without exclusion to any other
remedy that may be available to AUTHOR, this entire License will be
deemed automatically revoked and terminated if such violation takes
place, without prejudice to the rights of AUTHOR.
18. Indemnity
PRODUCER agrees to defend and indemnify from any claim
arising out of the violation by PRODUCER of any of the provisions of
this Agreement or otherwise arising out of the PRODUCER's
production of the Play.
19. Governing Law
19.1 This Agreement may not be modified, except in writing to
be signed by both parties hereto.
19.2 This Agreement is made in New York and shall be
construed in accordance with the internal Laws of the State of New
York. Any controversy or claim arising out of or relating to this
Agreement or breach thereof shall be settled by arbitration before a
single arbitrator in the city of New York, in accordance with the rules
of the American Arbitration Association, and judgment upon the
award rendered by the Arbitrator may be entered in any Court having
jurisdiction thereof. The arbitrator shall be bound by each of the
provisions set forth in this Agreement and by the substantive laws of
the State of New York that relate to any controversy arising hereunder.
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20. Miscellaneous Provisions20.1.1 AUTHOR shall be entitled to be present for the initial
presentation of the Play and to view the sets, costumes and lighting to
be used by PRODUCER. PRODUCER shall pay towards the Authors'
living expenses, for up to 3 days, $250.00 per day for hotel and living
expenses (or at PRODUCER's election, first-class hotel
accommodations) plus $100.00 per day plus round-trip first class
transportation for each such trip.
20.2 PRODUCER shall furnish to AUTHOR a stage
manager's script containing lighting, property plots and all other
information contained in such script within one month following the
first public performances under this License.
20.3 PRODUCER may accord additional PRODUCER credit
(including to the principals in any production entity producing the
Play, as well as to major investors and institutional theatre
owners/PRODUCERs and others), in such form(s) as PRODUCER
may elect, subject to AUTHOR's reasonable approval.
20.4 PRODUCER's rights under this License shall cease and
revert to AUTHOR when there is a hiatus in consecutive performances
exceeding four (4) months.
AGREED AND ACCEPTED:
AUTHOR PRODUCER
[ADDRESS] [ADDRESS]
By:______________________ By:_________________________
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