AGREEMENT GUARANTEEING COMPLETION OF A FILM BY PRODUCER AND DELIVERY THEREOF TO THE DISTRIBUTOR, FINANCE BEING PROVIDED BY INVESTOR
THIS AGREEMENT made this___________ day of___________
__________________________________ (insert the name, address etc. of Investor) (hereinafter called ‘THE LENDER’) of the FIRST PART
__________________________________ (insert the name, address etc. of Distributor or other party interested in final delivery of the film) (hereinafter called ‘the DISTRIBUTOR’) of the SECOND PART
__________________________________ (insert the name, address etc. of Guarantor) (hereinafter called ‘the GUARANTOR’) of the THIRD PART.
- [Producer] of [address etc.] (hereinafter called the PRODUCER) and the DISTRIBUTOR have entered into an agreement dated the_____ day of___ (hereinafter called the Distribution Agreement) whereby the Producer has undertaken to produce and deliver (particulars of film, with actors and director, etc.) (hereinafter called the Film).
- The budget for the film and the terms and conditions of the Distribution Agreement provide for a fee of Rs............ for the Guarantor to provide a completion Guarantee.
NOW IT IS HEREBY AGREED as follows:
- In consideration of the payment of the above recited fee (receipt of which is hereby acknowledged) the Guarantor........................
- guarantees and undertakes to procure the completion of the film by the Producer and the delivery thereof to the Distributors in accordance with the Distribution Agreement and any amendments, variations or modifica- tions thereto as may be required by the appropriate Authority under the law for the time being in force and approved by the Distributor and the Guarantor of any Distribution Agreement or Agreements which shall be substituted therefor;
- undertakes to procure or provide for the Producer any additional sums as may be necessary in excess of the cost in the budget for the films to defray the cost of completing and delivering the film as aforesaid;
- undertakes that if the Producer fails to complete and deliver the films as aforesaid the Guarantor will complete and deliver the film in accordance with this agreement and procure or provide such further moneys as may be required for that purpose.
- It is of the essence of this agreement that if and when the Guarantor is required to effect completion and delivery of the film under any of the provisions of clause 1 hereof it shall be entitled to do so by itself or by the employment of such sub-contractors or agents as the Guarantor may think fit.
- The Guarantor shall incur no liability hereunder or at all—
- unless and until the full budget cost of production of the film has been made available by the Lender to the Producer or Guarantor as and when required towards meeting the cost of production of the film
- if the film is not passed and approved by the Central Board of Film Certificate, India;
- if the Distributor terminates or substantially varies the Distribution Agreement with respect to delivery of the film without the Guarantor’s previous written consent;
- in respect of the production or delivery of the film other than in accordance with all the terms and conditions of the Distribution Agreement.
- The obligation of the Guarantor hereunder to provide further monies to complete and deliver the film shall not extend to any costs incurred or to be incurred—
- in meeting the requirements of any censorship body or exhibitor other than the Central Board of Film Certification, India or obtaining any certificate of approval of any other authority; ?
- after delivery of the film in making amendments, alterations or cuts to the film to meet any exhibition requirements; ?
- in any cutting, re-cutting, editing, re-editing, re-recording, re- scoring, dubbing, making and re-assembling of the film or any parts thereof for the making of foreign language versions thereof including (but not limited) dubbed versions, cut-in-versions, super- imposed versions and synchronised versions undertaken by or for the Distributor.
- This Guarantee shall not be limited or determined by the liquidation or bankruptcy of the Producer. The obligations of the Guarantor hereunder shall accordingly be maintained and fulfilled for the benefit of any receiver or manager of the Producer’s assets appointed by the Lender including (but not limited to) the provisions of additional monies by the Guarantor which shall be paid when required and due hereunder to any Receiver or Manager of the Producer.
- Any notice under this agreement shall be in writing and may be served on the party upon whom it is to be served by sending by registered post or recorded delivery to that party’s registered office or if that party is not a company to his last known address.
IN WITNESS WHEREOF, etc.
[Signature of both the parties]