Negative Cost definition

Negative Cost means, with respect to any Picture, the aggregate amount of the development and pre-production expenses of such Picture plus the cost of all production elements usually and customarily included as part of the negative cost of a Picture (including any contingency fee required under the applicable Approved Completion Bond) plus customary post production costs of such Picture and all other delivery items, and shall specifically include charges for any Approved Completion Bond fee which is to be paid but shall be net of any casualty insurance proceeds related to such Picture; provided, in the case of a Picture which is acquired rather than produced by a Credit Party, the term “Negative Cost” shall mean the acquisition price paid or to be paid by such Credit Party for such Picture pursuant to the applicable negative pickup documentation or co-financing documentation.

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Negative Cost. The amounts as are incurred as direct items of the cost of production of the Screenplay which shall not include trailers therefore, together with Purchaser's charges for Direct Production Services and General Studio Overhead, all calculated and determined in the same manner as such charges are calculated and determined in most motion pictures produced by Purchaser at the time of the Screenplay is produced hereunder.

Negative Cost as referenced herein shall be defined as an amount equal to the sum of the following: (a) the Cost of Production of the Picture as set forth in Paragraph 1.5 of Schedule 1. of WDP's Exhibit "CB" attached hereto and incorporated herein; provided, however, that solely for the purpose of calculating Negative Cost hereunder, the third to last sentence of Paragraph 1.5 of Schedule 1. of WDP's Exhibit "CB" shall be deleted; (b) fifteen percent (15%) of the Cost of Production as set forth in Paragraph D. of WDP's Exhibit "CB" (the "15% Charge"); and (c) the funding charge set forth in Paragraph C. of WDP's Exhibit "CB" (the "Funding Charge"); provided, however, with respect to any reference herein to a multiple of the Negative Cost of the Picture, the applicable multiplier shall be applied only to the Cost of Production and not to the 15% Charge or the Funding Charge which shall be included only once. By way of example only, and without limiting the foregoing, "two (2) times the Negative Cost" shall be calculated as an amount equal to the sum of the following: a) two (2) times the Cost of Production; b) an amount equal to the 15% Charge; and c) an amount equal to the Funding Charge.

Examples of Negative Cost in a sentence

Make or incur on a consolidated basis any obligation to make Capital Expenditures (other than amounts included in the Budgeted Negative Cost of an item of Product) for any fiscal year in excess of $250,000.
If reasonably requested by the Administrative Agent, deliver to the Administrative Agent, within ninety (90) days after each miniseries constituting an Item of Product with a Budgeted Negative Cost of more than $17,000,000 produced by a Credit Party is Completed, a tentative negative cost statement, and/or within one hundred twenty 120 days after each such Item of Product is Completed, a final negative cost statement.
Create, incur or assume any commitment to make, any direct or indirect payment, whether as rent or otherwise, under any lease, rental or other arrangement for the use of real and/or personal property (excluding Capital Leases and amounts properly included in the Budgeted Negative Cost of an item of Product) if immediately thereafter the aggregate of all such payments that shall be payable by a Credit Party and any of their Subsidiaries during any twelve consecutive months would exceed US$5,000,000.
To-the extent that the Negative Cost of such Feature Film is greater than the Budget, the payment of the balance of such executive producer/producer fee shall be paid to Platinum pursuant to the terms of paragraph 4.B. (ii) above (i.e., within fifteen (15) business days of Platinum's receipt of the Negative Cost certification for the applicable Feature Film).
At such time, if ever, that the Domestic Box Office Revenue of the Picture equals or exceeds two times (2x) the Negative Cost of the Picture, Owner shall be entitled to an amount equal to seven and one-half percent (7-1/2%) of 100% of Net Merchandising Income, if any, retroactive to first dollar of Net Merchandising Income, if any.
Such offer shall be in writing and shall specify the anticipated Total Negative Cost, the proposed essential cast members and proposed director, if known, and a short description of the story line, and, if applicable, a list of which Qualifying Picture criteria are expected not to be satisfied.
SPWA shall have the right upon fifteen (15) days notice to examine Licensor’s books and records with respect to the Actual Negative Cost for the purpose of determining the accuracy of the Actual Negative Cost Statement.
In connection with a game show, reality-based show or talk show intended for distribution and exploitation in the foreign television market, incur a Program Acquisition Guarantee or commence active preproduction for any such show which constitutes Self-Produced Product unless the aggregate pre-sales constituting Eligible Receivables for such item of Product equals 100% of Budgeted Negative Cost.
On the date any Acquired Film is acquired by AFI from a Production Company or API, (i) AFI shall make a Borrowing under the Credit Agreement equal to 80 percent (or such lesser amount as set forth in Section 4 of the Sponsor Agreement) of the Total Negative Cost thereof, and (ii) API shall pay AFI an amount equal to 20 percent (or such greater amount as set forth in Section 4 of the Sponsor Agreement) of the Total Negative Cost thereof.
Negative Cost Statements....................................................................

More Definitions of Negative Cost

Negative Cost means generally, the direct cost of development, pre- production, production, post-production and delivery of the Picture to its distributors and sales agents; all completion bond and other insurance charges; and finance fees and other charges customarily provided for in production financing agreements.