Alliance Atlantis' Motion Picture Distribution announced ithas reached an agreement with New Line Cinema to continue its Canadian outputdeal through December 31, 2008.

The company has also settled the legal wrangle with formerchairman Victor Loewy, former CEO Patrice Theroux and former senior counselPaul Laberge. Today's announcements lay to rest months of conflict andspeculation in Canada's largest distribution company sparked by the abruptdeparture of the three executives on July 19, 2006.

According to a statement, Loewy will assume the title ofchairman emeritus of MPD. While he will not be a director or officer of MPD, hewill continue to have authority over New Line product as well as "providingadvice and assistance as requested".

New Line will retain the option to terminate the outputagreement so long as Loewy remains engaged by MPD. Loewy's compensation will be"comparable" to that which he received as chairman. MPD and Loewy have agreedto setle the litigation between them.

As for Theroux and Laberge, MPD said it has reachedcomprehensive and confidential settlements with both men and that its courtactions against them will be dismissed. The settlements, says the statement,"contain confidentiality, non competition,non-solicitation and standstill obligations in favour of MPD."

MPD CEO John Bailey said, "Weare delighted to be able to continue our long-standing supply arrangement withNew Line and are looking forward to working with Victor in his newcapacity," pointing to the upcoming slate of New Line titles which includeLittle Children, The Golden Compass, Rush Hour 3 and Hairspray, which is currently shooting in Toronto. Bailey wished Therouxand Laberge "well with their future endeavours".