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Negative Pickup Distribution Agreement Template

Negative Pickup Distribution Agreement Template

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$35.00

FILMNET’s Negative Pickup Distribution Agreement Template designed for use between distributor and film production company, leveraged as collateral for productions to take loan from finance source to production capital.

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FILMNET’s Negative Pickup Distribution Agreement Template designed for use between distributor and film production company, leveraged as collateral for productions to take loan from finance source to production capital.

What’s a Negative Pickup Deal?

A negative pickup deal is a contract entered into by an independent producer and a movie studio conglomerate wherein the studio agrees to purchase the movie from the producer at a given date and for a fixed sum.

The negative pick-up deal is similar to a PFD agreement except that the distribution company, usually a studio or VOD brand, agrees to pay a fixed price upon delivery of the film. Because the distribution company does not advance the cost of production, the production company must obtain a loan to finance production, and the lender will almost always require a completion guarantee to guarantee completion and delivery of the film to the distribution company in order to trigger payment. Because of the introduction of the lender and the completion guarantor, these transactions are more complex than a PFD agreement.

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