Film Production Letter of Credit

If you're a struggling filmmaker trying to make your movie on a shoestring budget, try the deferred compensation approach.

• This Deferred Compensation Agreement is between the producer, investors and other stakeholders in the motion picture.
• The Agreement outlines the cast, crew, budget, and production schedule of the film.
• The Agreement breaks down how revenues received by the producer from the film will be applied: first, to payment of outstanding payables, secondly to repaying the investors, and then to the other principal stakeholders.
• A Deferred Compensation Agreement allows you to reduce your upfront costs during production of the film by deferring payment until the film is generating revenues.

Introduction to Investor Financing Agreement

Securing financial backing is essential for getting a feature film into production. One of the most effective ways to formalize this process is by entering into a Motion Picture Investor Financing Agreement.

Investment Structure

Under this agreement, the investor commits to providing the necessary production funds. These funds will be deposited into an escrow account, ensuring that the money is safeguarded and only released to the production company after specific conditions are satisfied. A key condition is the execution of a film completion guaranty, which provides additional security for both parties.

Repayment and Profit Participation

Once the film has a domestic theatrical release, the investor is entitled to repayment of the invested amount plus interest, drawn from the net profits generated. Beyond recouping their initial investment, the investor is also granted the opportunity to share in the net profits, up to an agreed-upon percentage, providing a potential for additional returns.

Investor Rights

The agreement grants the investor significant approval rights regarding various aspects of the film’s production. These include the proposed budget, casting choices, selection of the producer and director, and decisions related to distribution. Such approval rights help ensure that the investor’s interests are protected throughout the filmmaking process.

Agreement Availability

For filmmakers, having the necessary funds is crucial to launching a movie project. The Motion Picture Investor Financing Agreement provides a comprehensive and editable contract template, available in Word format, which can be tailored to suit specific project requirements. Downloading this agreement for your contracts library is a practical step toward securing investment and moving your film project forward.

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Screenwriters, before you submit a script for evaluation, get this Script Nondisclosure Agreement signed to protect your rights and guard against disclosure of details of the script to third parties.

• The Nondisclosure Agreement (or "NDA") should be signed by any potential producers with whom you have discussions with respect to developing and producing the script.
• The producers agree to keep all information strictly confidential and not disclose it to any third party.
• The writer is disclosing the information to the producer solely for the purpose of allowing the producer to evaluate the script for development into a film project.
• The confidential information is not to be disclosed to any party except those employees of the producer who have a need to know, and such employees must be bound by a confidentiality agreement with the producer.
• If the producer determines the script is suitable for development, the parties will commence negotiations in that regard.
• Don't let unscrupulous producers rip off your story ideas. Get a signed Script Nondisclosure Agreement.
• Available in MS Word format, fully customizable.

Would-be investors will need to see a well thought-out plan before they commit any money to your film project. Write yours with this fully editable Feature Film Business Plan template.

• The Plan includes:
  • a financial plan section, describing how the money will be raised for the project, how the funds will be used, and the assumptions on which the revenue model is based;
  • a summary of how revenues are disbursed;
  • a determination of ROI (return on investment);
  • potential income projections;
  • instructions to help you complete each section;
  • a Confidentiality Agreement to protect against disclosure of your proprietary information.
  • a disclaimer of liability regarding the accuracy and completeness of the financial information and projections contained in the Plan.
• Available in MS Word format.
• Buy and download the Feature Film Business Plan template and get started on your plan today.

Draw up a production budget summary for a feature film using this 39-page Excel workbook.

• The file contains spreadsheets for all budget items, including:
  • above the line expenses (story rights, producer, director, cast, travel and living expenses);
  • production expenses (production staff, camera, set design, construction, striking, set operations, electrical, set dressing, props, special effects, mechanical effects, make-up, hair, wardrobe, locations, transportation, atmosphere, tests);
  • post production expenses (picture editing, sound editing, lab, music);
  • miscellaneous other expenses (overhead, insurance, publicity, etc).
• The spreadsheet is automated to calculate the totals as you enter your figures.
• This is a customizable Excel workbook that can be used for each of your film projects.