Do you have the right tools to create your film investor contract? Our Movie Investor Package describes each step of the process so that you can clearly analyze and explain your product, customers, budget, market and offer. Get a big advantage over other independent filmmakers with ours: Erik- I think we all realize how important an investor deal is. That`s why I love this community. We help each other achieve our dreams. Sir, again, thank you very much alternately, we offer our plan of agreement with film investors, which includes statements, model clauses and key sections for active investors. It is not a complete legal agreement, like the GPP, but it does provide guidance and a lot of legal language that can be reused. The Motion Picture Investor Financing Agreement is a contract between the investor and the filmmaker. Describe the details of the investment and how the investor will recover their funds. This agreement sets out in writing the key details on where the mutual funds are held, how and when they will be released. And executes a completion guarantee, which essentially states that the film will be produced when funding is provided. For example, Adam Sandler wants to be in your movie, but you can`t pay his price, so his agent asks him for points. You then offer him a percentage of your share of 50%. These “points” only come from your stock, because one investor`s stock is only shared with another investor.
Many investors offer them less risk, but also a lower reward. There is little chance that a film will ever be launched. Without investment support, production can hardly be managed. As well as relevant information on the distribution of profits and revenues from the distribution of the film in the case of a successful production. The one hundred and fifteen (115) film industry model agreements listed below are provided here for educational purposes only. The preparation or use of such agreements without consulting an experienced entertainment company or, in some cases, a securities lawyer with experience in the film industry is associated with a high level of risk. Standard contracts are divided into six broad categories: (1) acquisition/development, (2) packaging, (3) lender financing, (4) investor financing, (5) production documentation and (6) distribution/licensing. This collection of lawyer-prepared agreements on the film industry is perhaps the most comprehensive collection of film industry agreements available to independent producers and lawyers to date. However, these contracts are only “MODEL CONTRACTS” (i.e., they are not “model contracts”, “contracts to be fulfilled”, “state-of-the-art contracts”, “customs treaties” or “model contracts” with comments and other terms). They have been prepared for use by the parties and in situations that may differ from your situation.
Any use beyond learning the usual workings of such transactions in the film industry should be combined with the advice of a lawyer whose experience has been proven to be in the specific transaction for which the document is intended. However, FilmProposals offers a variety of templates, tools, and articles to inform you about the film investment process designed to help you minimize attorneys` fees. Here are some areas to consider: The process of securing film financing is extraordinarily complicated and there is NO “one size fits all” for film investor contracts. Somewhere. Each situation is different and depends on the amount of funds raised, the geographical location (country, state, city), the budget of the film, the types of investors (assets or liabilities) and many other variables that only a lawyer can navigate on your behalf. It is important to state in the agreement that the filmmaker (producer) has exclusive control and approval over all creative and financial matters relating to the production. The investor does not buy the project from you; it is simply an investment opportunity for them. You or the LLC are the owner, the main decision-maker and own 100% of the film. The reason we have independent films is because we don`t have studios and “money people” telling “creatives” how to do their job. If they are not members of your LLC, passive investors have no say in the budget or how you want to spend their money.
When it comes to investing, I advise doing so through a lawyer. There are important clauses that you need to include. It could be devastating if you miss a temple or two. I`m sure you`ve already tried Google and haven`t missed it again. I know that is not what you are hoping for, so I apologize in advance. I`ve seen far too many deals/contracts that border on fraud without malicious intent, but because filmmakers hope to save a few hundred dollars by not hiring a lawyer. • Of the remaining $775,000 in film proceeds, or “total net profit,” 50% will be paid to the film`s producer, known as the “producer`s share,” and 50 percent will be provided for pro-rated return payments to investors, known as “investors` share.” PRODUCER SHARE: $387,500 INVESTOR SHARE: $387,500 As a 1% contribution to the total investment of $1.5 million raised by the film, the investor is entitled to $15,000 of 1% from the investor`s share of the net proceeds, in addition to the interest-bearing repayment described above.$15,000 INVESTOR SHARE: $3,875* gross proceeds** $17,250 1% of net proceeds $3,875 _________Total ROI for $15,000 Investor: $21,125 **** Assumes a 15% interest rate on “first out” funds. Interest rates may vary, typically between 9% and 20%.** After payment of distribution fees and costs and unexecuted items of the budget, as described above.*** This figure is provided for illustrative purposes only. It is based on the assumptions and estimates set out in this example. Actual ROI is based on actual gross revenues, distribution fees and costs, unpaid budget amounts, and actual net revenues, each of which can be significantly higher or lower than the figures presented in this example. For this reason, the film financing contract is one of the most important orders in the production process.
Therefore, you need to familiarize yourself with the right contracts and agreements. Especially those related to film financing if you are really invested in the production and distribution of a film. For all documents dealing with the exchange of funds between a filmmaker and his investors, we recommend that you consult professional legal counsel. The very fact that you ask these questions suggests that you should use the services of a lawyer to determine the best course of action for you and your investors. Although many film investors recognize the risk and know that there is little chance that their funding will be returned to them. The contract is an important step in providing the protection the investor needs to feel comfortable with the transaction. We have someone who is interested in investing in a film that we produce. I need to draft an agreement/contract.
Are there any important clauses I need to include, or are there templates or guides I can follow? NOTE: The following is provided for illustrative purposes only. Actual numbers can vary widely.• Investment: $15,000 (the “$15,000 investor”)• Budget: $2 million (the “Budget”)• Total revenue, including all box office and DVD revenue: $4.5 million• From gross revenue, the film distributor deducts the distribution fees and costs associated with the distribution of the film. For the purposes of this example, we assume that the distribution fees and costs amount to 1/3 of the gross revenue of the film in total. (This number depends on the distributor`s policies and the actual costs associated with distributing the film.) DISTRIBUTOR IS PAID: $1.5 millionBalance of gross revenue: $3 million• If filmmakers collect only $1.5 million for the total budget, the balance of gross revenue (i.e. unpaid items of the budget, $500,000 ($2 million minus $1.5 million) will be paid first. UNPAID BUDGET ITEMS WILL BE COVERED: $500,000 Gross revenue balance: $2.5 million • Of the remaining $2.5 million of film proceeds, investors will be reimbursed “first out”, in proportion to the amount of their investment, with interest. In this example, there is a balance sufficient to fully repay all investors with interest totalling $1.725 million (i.e., a total of $1.5 million of all investors plus 15% interest). * Investors` share of the $15,000 proceeds would be 1% of $1.725 million. USD or $17,250. PAID INVESTORS: $1,725 million * $15,000 Investor share: $17,250 Total network profits: $775,000 FilmProposals always recommends that you consult professional legal counsel when it comes to documents discussing the exchange of funds between a filmmaker and his investors. .