| Commentary

412 Double add-back

| Commentary

412 Double add-back

As an incentive towards a producer to stay within the budget for a film, a production financing and distribution agreement may sometimes contain a ‘double add-back' provision, which will increase the negative cost of the film by twice the amount of any excess over the budgeted cost, thus deferring the moment at which the producer may anticipate receiving profits. Such a provision may also be combined with a reduction in the amount of the production fee payable to the producer, and the amount of the double add-back itself will also carry interest and overhead even though the

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