Short-Form Investor Agreement
This agreement (the “Agreement”) is made on ______________, 2008 by and between PRODUCER (“Producer”) and ____________________, an individual (“Investor”), whereunder Investor shall make available to Producer funds, subject to the terms and conditions set forth herein, to be used to finance the production of that certain motion picture currently titled “PICTURE” (the “Picture”), based on an original screenplay by SCREENWRITER. 1. The Picture Principal photography of the Picture is scheduled to begin on or around June 23, 2008 and the Picture is scheduled to shoot for three (3) weeks. 2. Funding Investor will provide funding for the Picture no later than ten (10) business days from the execution of this Agreement in the amount of $______________ (the “Investor Contribution”) on the terms and conditions set forth in Section 4 below which shall be deposited in a Producer’s production account as specified by the Producer. Producer will use its best efforts to secure further funding for the Picture from third parties in the amount equal to the difference between the overall cost of production of the Picture and the Investor Contribution. 3. Picture Proceeds All proceeds derived by Producer from the exploitation of the Picture and all rights therein, including without limitation, all ancillary, subsidiary and derivative rights less all third party out of pocket fees (e.g. distribution and sales fee, distribution costs and the like) (the “Picture Proceeds”) shall be distributed in the following priority of payment: A. Recoupment. The negative cost of the Picture shall be recouped by the Financier out of all Picture Proceeds on a pro-rata, parri-passu basis with all other parties providing equity financing for the negative cost of the Picture. B. Participation. Thereafter, Financier shall be entitled to a pro-rata share of fifty percent (50%) of the “net profits” of the Picture (i.e. if Financier contributes 10% of the budget of the Picture, Financier shall be entitled to 5% of the “net profits” of the Picture). 4. Terms of Funding In consideration of the funding in the amount of the Investor Contribution, Producer agrees to the following (the “Production Requirements”): A. A producer fee of $9,000 shall be paid to PRODUCER for their producing services in connection with the Picture. B. Investor shall be accorded an individual “Benefactor" credit in the end titles in connection with the Picture. C. All other matters relating to credits shall be consistent with industry custom and practice.
D. Producer shall have sole control and approval over all creative and financial matters with respect to the production of the picture. E. Producer (or its designee) shall enter into all third party contracts with respect to production of the Picture and shall indemnify Financier against third party claims brought against Financier with respect to all matters related to production and exploitation of the Picture. Any third party claims brought as a result of Financier’s actions shall not be indemnified by Producer. F. Investor acknowledges that there will be no completion bond for the Picture. G. The Picture, including the copyright, and all results and proceeds thereof shall be owned in its entirety by Producer and all such rights shall be freely assignable to any party or entity. 5. NOTICE
The parties’ addresses for notices hereunder shall be as follows: =
The signature of the parties where indicated below shall constitute this a valid and binding agreement. PRODUCER
By: ___________________________ Dated: ________ Its: ___________________________
Signature: ______________________ Print Name: ______________________