Security Agreement (Short Form)
The Independent Filmmaker has put everything she/he has into the producing of her/his Project and wants a secure return on investment. Therefore the Filmmaker who enters into a Distribution Agreement will want to secure her/his right to share in revenue generated from her/his Project. The Independent Filmmaker accomplishes this security of interest by having the Distributor give him a “secured interest.”
The granting of a Security Interest may be set forth in the Distribution Agreement. The Collateral that secures the Agreement is usually the Distributor’s Right to distribute the Project including any Rights it may have in film/Project elements (e.g., master tapes) and any proceeds realized from the exploitation of its Rights.
If the Distributor goes bankrupt, the Filmmaker who has a Security Interest may have preference when the Distributor’s assets are sold to pay creditors. As a secured creditor, the filmmaker will be paid before unsecured creditors.
This Agreement between the Independent Filmmaker and the Distributor is drafted in plain English that is easy to read and comprehend. This is a three page, twelve clause legal Agreement. The Agreement may be filled in on your computer or printed out and filled in later. Your Lawyer will draft any and all other clauses for your Project’s unique situations and circumstances.
There are two forms of this Agreement. The first agreement is drafted in Short Form. The second form of the Agreement is the Long form.
This Agreement is one of the contracts in the Producer’s Deal and in the Investor’s Deal.
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