FINANCING TERM SHEET
This Financing Term Sheet ("Term Sheet") summarizes the proposed terms of financing as of [effective date] between [company name] (the "Company") and [financier name] (the "Financier"), for the motion picture tentatively titled "[project title]" (the "Project").
1. FINANCING AMOUNT. [financing amount]
2. FINANCING TYPE. Equity Investment
3. RETURN / INTEREST. [return / interest terms]
4. RECOUPMENT POSITION. First position, senior to all other financing
5. SECURITY. Secured by a lien on the copyright, physical elements, and receivables of the Project
6. TERM / REPAYMENT. Repayable from first Net Proceeds, no later than 24 months following delivery
7. CONDITIONS PRECEDENT. Subject to E&O insurance, a completion guarantee, executed chain of title, and definitive financing documents.
8. BINDING EFFECT. This Term Sheet is a non-binding summary of the proposed terms and does not constitute a commitment to fund. It is intended solely as a basis for negotiating definitive agreements, except that any provisions regarding confidentiality and exclusivity shall be binding.
9. GOVERNING LAW. This Term Sheet shall be governed by and construed in accordance with the laws of the State of California.
ACKNOWLEDGED AND AGREED as of the Effective Date.
COMPANY: ____________________________ [company name]
FINANCIER: ___________________________ [financier name]
TEMPLATE ONLY — NOT LEGAL ADVICE. Consult a securities or entertainment attorney before using this document.
