Nazarian film deal.

Lions Gate Entertainment Corp. has signed a three-year contract with the film unit of Los Angeles nightlife business mogul Sam Nazarian s SBE Entertainment Group in which Element Films will develop, self-finance and produce three motion pictures a year for wide release by Lions Gate.

The pact, announced last week, expands Vancouver-based Lions Gate's pipeline of 18 to 20 theatrical releases a year with minimal financial risk while providing Element with a long-term distribution partner and a high level of creative autonomy. Under the deal, Nazarian's Element Films will select six of the nine pictures. Each film will be produced by Element President Adam Rosenfelt, with the first film a romantic teen comedy called "The Prom."

Element and Lions Gate, which has significant Los Angeles operations, earlier teamed on the teen comedy "Waiting," a $3 million production that generated $16 million at the domestic box office and has shipped more than 2.5 million units on DVD. and on the upcoming thriller "Five Fingers."

Financial terms of the deal were not disclosed.