Common use of Completion Bonds Clause in Contracts

Completion Bonds. With respect to each Motion Picture produced for MVL, (x) cause the related Production Company to maintain a customary Completion Bond with a Completion Guarantor in the amount of the Budget (except to the extent the Control Party agrees in advance, in writing, to allow for Excluded Budget Items, in which case such Completion Bond need not cover such Excluded Budget Items) and covering the “Maximum Interest Amount” and the “Maximum Charges” (or analogous items covering the maximum interest, costs and expenses of the Lenders and the Insurer for such Motion Picture) as defined in such Completion Bond, for such Motion Picture and providing for the required “Delivery Items” on the Delivery Schedule, and otherwise covering such risks as is consistent with then customary industry practices, and (y) cause the related Production Company to enter into a producer’s completion agreement with such Completion Guarantor, in each of (x) and (y) above substantially in the form of Annex 7 (excluding the exhibits and schedules thereto which may be changed from Motion Picture to Motion Picture without the approval of the Control Party to the extent such change does not diminish in any material respect the rights or remedies of the Borrower under such Completion Bond, taking into consideration the differences in each Motion Picture) or with such changes thereto as are reasonably acceptable to the Control Party. MPROD shall ensure that the “Outside Delivery Date” (or, with respect to a Completion Guarantor other than IFG, such analogous outside date for delivery) set forth in any such Completion Bond shall be a date which requires delivery of the “Mandatory Delivery Items” (as defined in the applicable Completion Bond) to the applicable Studio Distributor on or before the delivery date that such Studio Distributor would require if such Studio Distributor were to release such Motion Picture on the last Friday of the anticipated release window for such Motion Picture. MPROD will not cancel, amend or replace any Completion Bond (other than the exhibits and schedules thereto to the extent permitted hereunder) after the same shall have been issued, or permit the related Production Company to do so, without the prior written consent of the Control Party. MPROD will not acknowledge that any Motion Picture has been “delivered” under any Completion Bond until the Control Party and MPROD have received written acknowledgment from the applicable Studio Distributor that Delivery of the “Mandatory Delivery Items” pursuant to the Delivery Schedule has been made to such Studio Distributor pursuant to the applicable Studio Distribution Agreement. In the event that the applicable Studio Distributor does not acknowledge that “Delivery” has been made with respect to any Motion Picture, MPROD shall assist (without spending any monies) in curing any defect in the related deliveries. If any defect cannot be cured, MPROD shall fully cooperate with the beneficiaries of the Completion Bond in making a claim against the Completion Guarantor.