PARK CITY -- Angry teen revenge flick "Hard Candy" was sold late Monday night during the Sundance Film Festival in a $4 million deal that has a big potential upside for the indie filmmakers.

Distributor Lions Gate Films purchased North American and worldwide rights, with the exception of the United Kingdom, Australia and Spain, for $2.25 million against 20% of the gross. The other three territories are being negotiated separately, with the United Kingdom likely to go to Red Bus, Aurum Films buying Spain and Mel Gibson's Icon Prods. purchasing Australian rights.

Lions Gate won the bidding war against New Line Cinema. Focus Features dropped out of the deal before bidding got too hot. "What differentiates Lions Gate's offer is the gross corridor," said Rena Ronson, an agent with William Morris Independents who negotiated the deal along with her partner Cassian Elwes, Doug Stone and Rosanne Korenberg of Traction Media. "This is a very attractive deal for the filmmakers and the financiers."

Lions Gate executives Tom Ortenberg, Peter Block, Nick Meyer and Jason Constantine negotiated the deal for the company -- marking Lions Gate's second pickup of the festival. The Los Angeles-based company purchased David LaChapelle's "Rise" on Monday (HR 1/25).

"Hard Candy," from first-time director David Slade, is the first Vulcan Prods. film featuring its new financing model based on the InDigEnt plan -- a $1 million or less feature whereby cast and crew work for low wages but share a significant portion of the first-dollar gross after distribution fees.

Vulcan Prods. producer vp Richard Hutton said: "We are thrilled our film 'Hard Candy' has found its distribution home with Lions Gate Films. We love their passion for the film."

Lions Gate has not yet decided when it will release the film. "We're going to take our time and figure out the release date and marketing and distribution structure," Ortenberg said. "It's such a good movie, and while there are some challenges, there are so many marketing opportunities. We want to make sure we pick a date that allows us to maximize the boxoffice receipts for the film."

Several other distributors are nearing deals. Focus Features, which has yet to buy anything, is closing in on "On a Clear Day," which stars Peter Mullan as an unemployed shipyard worker who wants to swim the English Channel.

Five companies including Warner Independent Pictures are bidding for Noah Baumbach's well-received New York family drama "The Squid and the Whale." Negotiations are expected to conclude today.

Also up for grabs is Mike Mills' coming-of-age drama "Thumbsucker," in which Focus, among others, has expressed interest. The documentary "The Devil and Daniel Johnston" screened well Tuesday with audiences and critics and is likely to be in play soon.

"Mad Hot Ballroom," the Slamdance hit, has attracted interest from Focus and Lions Gate. ThinkFilm and Sony Pictures Classics are vying for the neo-noir high school flick "Brick."=