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. By offering an investment in shares, the film investor shares the risk and reward. It could come from the film project with the filmmaker. If the film is a great success, the investor will recover his investment and possibly part of the profit. The film capital investment agreement is a stepping stone. The one that should be executed before an investor provides funds for your project. They want to know that the money they invest in production is treated with absolute care.

The film investment agreement offers that peace of mind. It describes the basic conditions to protect the investment and the film. Whatever the circumstances. 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: But your agreement should say that becoming an investor is not synonymous with becoming the creative leader of the project. Of course, your agreement should not achieve this in so many words. As you can see, the film investor agreement is an important contract that is concluded. Between investors who provide budget funding for a film. In exchange for a percentage of the profits (if any) made during the distribution of the film.

And require you to follow their rules and regulations when using equity financing for your production. However, the SEC has issued several registration exemptions for filmmakers. If you`re not familiar with SEC registration rules or guidelines for offering securities for investment, you`re not alone! Many filmmakers are not fully aware of how this complex doctrine works and the rules and regulations in this regard. Just because equity participation is backed by company shares doesn`t mean you have to give up your decision-making ability and keep full control over the creative needs of production. You`ve created your film business plan, presented it to film investors, and you think you`re getting your film financing. The likely next step is for the investor to apply for a film investor agreement before cutting the elusive check for “independent film financing.” So how do you make sure there`s nothing between you and an interested film investor? One option is to use a film investor agreement. The amount or percentage of the stake in the donated production in exchange for the equity financing investment. And all the relevant details, how decisions about the future of the film will be made and who will be involved. Although there are various details that can be included in the film investment agreement. The main purpose of this financial contract is to provide details about the agreement between an investor and a filmmaker. Most investors will require that this clause be included in such an agreement to protect them from extensive claims against them, for example if a breach.B occurred on the set and a lawsuit was filed, the investor would not be liable. In most cases, your investment contract should include a limited liability clause.

This relieves the investor of potential losses that exceed the value of their investment. Low-budget films are often awarded to passive investors who are not active or unfamiliar with the film industry. Typically, these are successful businessmen with deep pockets who are willing to risk a few thousand dollars to help an independent filmmaker. These investors know that the chances of making a profit are low or not at all, but they still want the certainty that their money will be managed in the best possible way given the risky nature of the film industry. At the same time, it`s your film and you want to make sure you have control over your project. Don`t forget the months of work you put into the project. YOUR film should be YOUR film until you decide to sell it to a distributor. With the Film Investor Agreement, you can prove that you know what you are doing in terms of film financing. Investors trust you not only as a filmmaker, but also as a businessman. It is important to present your film investor with a professional investor agreement that sets out the basic terms and conditions to protect both their money and your film.

Thus, a film participation agreement represents the agreement between the film producer and the investor. Overview of the details of the investment made. As well as all ownership shares that can be exchanged under the agreement. Who is the “filmmaker” based on the above statements? Each actor, director, producer or talent also promised a piece of the backend. As a producer, you can use your 50% as a sales tool to attract talent. They deliver what the industry calls “points.” The points are backend percentages and the film investor agreement makes all this crystal clear for all those involved in film financing. We recommend that you work closely with a lawyer to draft your investment contract as the film industry is risky. .