Illinois Entertainment Lawyer...INDEMNITY: Filmmaker should be indemnified (receive reimbursement) for any losses incurred by filmmaker as a result of distributor\'s breach of the terms of the agreement, violation of third party rights, and for any changes or additions made to the film. POSSESSION OF NEGATIVE: Distributor should receive a lab access letter rather than possession of the original negative and other original elements. Distributor should not be permitted to remove masters from the laboratory. ERRORS AND OMISSIONS (E&O) POLICY: While it is generally the filmmaker\'s responsibility to purchase an E & O insurance policy, distributors are often willing to advance the cost of this insurance and recoup the cost from gross revenues. In such an event, the filmmaker should be added as an additional named insured on the policy. TERMINATION CLAUSE: If the distributor defaults on its contractual obligations, filmmaker should have the right to terminate the contract, and regain rights to license the film in unsold territories as well as obtain money damages for the default. Filmmaker should give distributor fourteen days prior written notice of default before exercising the right to termination.

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