THIS AGREEMENT made effective as of the _____ day of ______________, _______.
[NAME OF FINANCING COMPANY]
a corporation duly incorporated under the laws of ________
with a head office at _____________ [address]
- and -
[NAME OF GUARANTOR]
a corporation duly incorporated under the laws of ________
with a head office at _____________ [address]
A. The Financier has agreed to advance the sum of $______________ (the “Funds”) to __________
[insert name of production company] (the “Producer”) to pay for the production costs of a film
project currently entitled “__________________” (the “Film”), upon the terms and conditions of
an agreement between the Financier and the Producer dated the _____ day of ______________,
_______ (the “Financing Agreement”).
B. As a condition to advancing the Funds, the Financier requires the Producer to procure a
guarantee (“Guarantee”) of completion of the production and delivery of the Film.
C. The Guarantor has agreed to provide such Guarantee, subject to the payment by the Producer of
the Guarantor’s Fee, as hereinafter described.
NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration of the foregoing premises
and of the Financier lending the Funds to the Producer, the parties hereby agree as follows:
Subject to the provisions of this Agreement, the Guarantor agrees to:
(a) Guarantee the Completion and Delivery of the Film (as that term is defined in Schedule A
(b) Procure or provide the Completion Funds, if any are needed, to Complete and Deliver the Film, if
the Producer shall fail to do so;
(c) Complete and Deliver the Film, if the Producer shall fail to do so; and
(d) If Guarantor fails to Complete and Deliver the Film as aforesaid, make the payments specified in
paragraph 7(a) hereof.
The words and phrases defined herein shall have the meanings set forth in Schedule B attached hereto.
3. Guarantor’s Fee
The Guarantor’s obligations hereunder are conditional upon the payment by the Producer of the
Guarantor’s Fee, in full, as follows:
[set out the amount of the fee and how it is to be paid]
4. Production Controls
Pursuant to a Completion Agreement between the Guarantor and the Producer, the Guarantor shall have
the right to Complete and Deliver the Film in accordance with this Completion Guaranty, or to procure
the Completion and Delivery of the Film by any other person or company in accordance with the terms of
the Completion Agreement.
5. Conditions of Guarantee
The Guarantor shall be under no obligation hereunder:
(a) until the entire amount of the Strike Price has been made available to the Producer or to the
Guarantor, as and when required by the Producer or the Guarantor, as provided in the Financing
Agreement, whether or not an event of default has occurred thereunder. Notwithstanding
anything to the contrary contained herein, the Financier shall not be obligated to supervise or
administer to the application of the Strike Price to the Producer or the Guarantor, it being agreed
that the Financier’s obligation shall only be to advance such sums in accordance with the terms of
the Financing Agreement and this Completion guaranty;
(b) to obtain any seal, certificate or rating of the [revise as appropriate for your circumstances: Motion
Picture Association of America, Inc. ("MPAA"), except as required to Complete and Deliver the
(c) to deliver any materials other than the Delivery Materials prior to the Delivery Date or to deliver
the Delivery Materials to any locations other than the locations designated in Schedule A
(d) for the quality of the Film or the Delivery Materials, other than the technical quality thereof
necessary to Complete and Deliver the Film;
(e) with respect to any defect in the copyright of the Screenplay, the Underlying Literary Property, if
any, or the Film, or in the rights acquired for the Film in the Screenplay or in the Underlying
Literary Property, if any, or in the title of the Film, or in the music of the Film (except for the
rights in such music that are acquired by the Guarantor in the event the Guarantor takes over the
production of the Film and then acquires rights in and to music which is used in the Film);
(f) with respect to any claim or liability arising out of any tort or any breach of contract committed
by the Producer, except to the extent necessary to Complete and Deliver the Film;
(g) with respect to any of the Excluded Risks (as defined in Schedule B); and
(h) any Over-Budget Costs arising as a result of currency fluctuations.
6. Excluded Costs
Notwithstanding any provisions of this Completion guaranty to the contrary, the Guarantor shall not be
obligated to provide funds for the payment of the following costs (except to the extent such costs are (i)
specified in the Budget, (ii) required to Complete and Deliver the Film, (iii) required to correct technical
defects in the Film, or (iv) conform the Film to contractual specifications for which the Guarantor is
responsible under this Completion guaranty):
(a) the cost of delivery items which are not Delivery Materials;
(b) the cost of legal, interest and finance fees and expenses, except as provided for in paragraph 7(a)
(c) distribution expenses, including costs incurred in meeting censorship or exhibitor requirements,
or to make foreign language versions of the Film (dubbed, subtitled or otherwise) or any other
versions except the original version in the language specified in the Screenplay;
(d) advertising and publicity costs, including costs incurred for previews;
(e) costs incurred to photograph, record or include in the Film "cover shots" for television or other
purposes or other substitute or additional material; provided, however, that if "cover shots" are
required to Complete and Deliver the Film, the Guarantor will be obligated to deliver such "cover
(f) costs incurred after the Completion and Delivery of the Film or incurred in connection with
re-cutting, re-editing, retakes (other than retakes done by the director during the ordinary course
of production in accordance with the Production Schedule) and changes.
7. Failure to Complete and Deliver the Film; Insurance
(a) In the event that the Guarantor fails to Complete and Deliver the Film, the Guarantor’s liability
hereunder shall be limited (except as otherwise provided herein) to:
(i) the payment to Financier, on demand, of an amount equal to the Obligations (as defined
in Schedule B) less so much thereof as may have been refunded to and retained by
Financier by insurance or otherwise indefeasibly paid to Financier in connection with the
(ii) the payment of any additional costs or expenses of the Film that the Guarantor is
required to pay pursuant to this Completion guaranty.
The payment referred to in paragraph 7(a)(i) hereof shall be made to Financier without reduction
or set-off and notwithstanding any Completion Funds advanced by the Guarantor to the
Producer or expended by the Guarantor directly to Complete and Deliver the Film in accordance
with the terms of this Completion guaranty. Upon payment to the Financier as provided in
paragraph 7(a)(i) hereof, the Guarantor shall be automatically subrogated to all of the Financier’s
rights, claims, causes of action and security interests in relation to the Film. The Financier agrees
to execute such assignments and other instruments as the Guarantor may reasonably require to
evidence and effectuate such subrogation, at the Guarantor’s sole cost and expense.
(b) If any claim covered by production / indemnity insurance should arise in relation to the Film, the
insurance recovery (unless paid to a third party, such as in relation to a personal injury or
property damage claim) shall be paid and disbursed as provided as an Insurance Recovery
specified in Schedule B attached hereto.
8. Rights of Financier
Provided that Financier does not interfere with the Guarantor’s ability to Complete and Deliver the Film
pursuant to this Completion guaranty, Financier may at all times, without prejudice to this Completion
guaranty and without discharging or in any way increasing Guarantor’s liability hereunder:
(a) make further advances to the Producer;
(b) grant to the Producer any time or indulgence; or
(c) deal with, exchange, release, modify or abstain from perfecting or enforcing any security interest
or other Guarantee or rights which Financier may have from or against the Producer or with any
other person or guarantor;
provided that such action shall not materially prejudice the rights or obligations of the Guarantor under
this Completion guaranty. Financier agrees that it will not, without the prior written consent of
Guarantor (which consent shall not be unreasonably withheld), agree to any amendment to the Financing
Agreement or any agreements ancillary thereto or take any other action (including interference with
Guarantor’s access to the physical elements of the Film) which may in any way materially prejudice the
rights or obligations of Guarantor under this Completion guaranty. If the Financing Agreement provides
that Financier has the right to take over control of the production of the Film, Financier acknowledges
that such right is subject to the rights of Guarantor under this Completion guaranty. Financier shall not be
obligated to see to the application of the Funds advanced pursuant to the Financing Agreement.
Guarantor hereby subordinates any rights and claims which it may have against the Producer, its
principals and affiliates (whether by way of subrogation or otherwise) and any security interest which
Guarantor may have in any collateral of the Film in which Financier has or may have a security interest
pursuant to the Financing Agreement or any other agreement, to the repayment to Financier of the
Obligations in full and to all of Financier’s rights and security interests and claims under the Financing
Agreement or otherwise in connection with the Film.
Financier shall have the right to assign the benefit of this Completion guaranty, in whole or in part, to any
third party who succeeds to Financier's rights in the Film or the Financing Agreement. Any other
assignment to any other person or company shall be null and void.
All notices required or permitted to be given pursuant to this Agreement shall be delivered by hand to
the party for which it is intended, or sent by facsimile transmission, electronic email or other form of
transmitted or electronic message or personally delivered, sent by prepaid courier or registered mail
directly to such party at the following addresses or at such other address as either party may stipulate by
written notice to the other:
If to Financier:
[name of contact person]
If to Guarantor:
[name of contact person]
Notices shall be deemed to be received on the date of actual delivery or transmission.
12. Corporate Approvals
Guarantor hereby warrants that it is not required to obtain any authorizations, approvals or consents
from any governmental bodies or regulatory authorities for the execution and delivery of this Completion
guaranty and the performance thereof; provided, however, if any such authorizations, approvals or
consents are hereafter required, Guarantor shall comply with such requirements. Guarantor further
warrants that the execution, delivery and performance of all of the terms and provisions hereof have been
duly authorized by proper corporate or other action under the laws of _______________ and that no
consent of any third party to the execution, delivery and performance hereof is otherwise required.
In the event of a dispute hereunder, the provisions for arbitration specified in Schedule C attached hereto
shall apply. Each and all of the several rights and remedies provided for in this Completion guaranty or
at law or in equity shall be cumulative, and no one of them shall be exclusive of any other right or
remedy. The exercise of any one or more of such rights or remedies shall not be deemed to be a waiver of
or an election not to exercise any other such right or remedy. The obligations of the Producer and the
Guarantor are several, not joint. Financier may bring proceedings against Guarantor without having first
instituted proceedings or made demand upon or against Producer. If an action, suit or other proceeding
is brought for the enforcement of this Completion guaranty, to declare rights or obligations hereunder, or
as a result of an alleged breach, default or misrepresentation by either party, the prevailing party shall be
entitled to recover its reasonable legal fees and other costs, in addition to any other relief to which that
party may be entitled.
14. Miscellaneous Provisions
(a) Governing Law. This Completion guaranty shall be governed by and construed in accordance with
the laws of _______________. Any legal actions, claims or demands shall be handled in a court of
competent jurisdiction within _________________.
(b) Interpretation. The language of this Completion guaranty shall be construed as a whole according
to its fair meaning and not strictly for or against either of the parties. Paragraph and section
headings as used herein are for convenience of reference only and have no other significance.
Any term used in this Completion Agreement in the singular shall be deemed to be used in the
plural wherever appropriate.
(c) Severability of Provisions. If any one or more of the provisions of this Completion guaranty shall be
held to be illegal or unenforceable in any respect, the legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.
(d) Modifications and Waivers in Writing. NO MODIFICATION, AMENDMENT OR WAIVER OF
ANY PROVISION OF THIS COMPLETION GUARANTY OR WAIVER OF ANY DEFAULT
HEREUNDER SHALL BE EFFECTIVE UNLESS IN WRITING AND SIGNED BY AN OFFICER
OF EACH OF THE PARTIES (IN THE CASE OF A MODIFICATION) OR BY THE WAIVING
PARTY (IN THE CASE OF A WAIVER) AND SUCH WRITING EXPRESSLY STATES THAT
SUCH WRITING IS A MODIFICATION OR WAIVER (AS APPLICABLE) OF THIS
(e) Counterpart Signatures. This Completion guaranty may be signed in counterparts and each such
counterpart shall constitute an original document and each such counterpart, taken together,
shall constitute one and the same instrument.
IN WITNESS WHEREOF the parties hereto have executed this Agreement on the date first above
[NAME OF FINANCING COMPANY] [NAME OF GUARANTOR]
[name & office of signing officer] [name & office of signing officer
Schedule A to Completion guaranty
between [NAME OF FINANCING COMPANY] and
[NAME OF GUARANTOR]
COMPLETION AND DELIVERY OF FILM
1. The term "Completion and Delivery of the Film" or "Complete and Deliver the Film" as used in
this Completion guaranty shall have the following meaning:
(a) The production of the Film in accordance with the Budget and the Production Schedule, and the
Film as produced shall:
(i) be based upon the Screenplay;
(ii) qualify for a ________ [insert appropriate rating organization] rating of not more than __;
(iii) be ___ to ___ minutes in length, including main and end titles;
(iv) be shot in [revise as appropriate: color in 35mm;
(v) be of technical first class quality; and
(vi) have the following elements, all of which are subject to the approval by the Guarantor:
Producer: [Name of Production Company]
Principal Cast Members: [name] in the role of ________________
[name] in the role of ________________
(b) the delivery to ____________________ by the Delivery Date of the film and soundtrack materials
specified in Exhibit "A" attached hereto (the "Delivery Materials").
2. The term "Delivery Date" shall mean ________________, subject to postponements due to the
occurrence of events of force majeure which extend the delivery date and any periods of notice, cure and
arbitration as provided in Schedule C attached hereto.
3. The term "Distribution Agreements" shall mean the following agreements:
(i) [list all distribution agreements]
4. The term "Distributors" shall mean the following:
(i) [list all distributors]
5. The term "Production Bank Account" shall mean the bank account designated in th