Sample Investment Agreement

(consult with a qualified attorney before using this agreement)

The following sets forth the terms and conditions of the agreement
reached on this date of
between
(hereinafter Producers) and
(hereinafter Investors) with
respect to the financing, development and production of the motion
picture project presently entitled
(hereinafter the Picture).
1.

It is agreed that Investors will advance the sum of $

(
dollars) to the Producers bank account upon
execution of this Agreement.

2.

It is agreed that the Gross Receipts from the exploitation of

the Picture will be distributed as follows:
a . O n e H u n d r e d Pe r c e n t ( 1 0 0 % ) t o t h e I n v e s t o r s u n t i l 1 0 0 % o f
the investment in the picture plus
percent interest has
been recouped;
b. Then, all Net Proceeds shall be pa id as follows, pro rata and
pari passu:
percent to Investors,
percent to
Producers.

3.

This Agreement shall be subject to and construed in

accordance with the laws of the State of
. The terms of
this Agreement shall remain confidential between the parties. This
Agreement shall be construed in accordance with the laws of the
State of
, applicable to agreements that are executed
and fully performed within the State of
.

4.

Any controversy or claim arising out of or relating to this

A g r e e m e n t , o r t h e b r e a c h t h e r e o f, a n d w h i c h i s n o t s e t t l e d b e t w e e n
the signatories themselves, shall be settled by arbitration in
accordance with the American Film Marketing Association with
hearings to take place in
. Any award rendered by the
Arbitrators may be entered as a judgment in any court having
j u r i s d i c t i o n t h e r e o f, t h e p r e v a i l i n g p a r t y t o b e a w a r d e d c o s t s ,
attorney fees and other expenses and damages as awarded by the
Arbitrator(s).

5.

All other deal points, including those which are customary for
a similar motion picture project, are to be the subject of a long
form agreement to be negotiated in good faith. This agreement may
not be modified or amended in any way except in writing, signed by
all parties hereto.

I N W I T N E S S W H E R E O F, t h e p a r t i e s h e r e t o h a v e e x e c u t e d a n d d e l i v e r e d
this Agreement as of the date set forth above.

AGREED AND ACCEPTED:

For the Producer
Name

For the Investor

Name:

Signature

Signature

Its

Its

Notes on this Investment Agreement

This is an agreement between the producers (and/or production entity)
and any number of investors.
It MUST be reviewed by an attorney before being amended or signed.
All percentages in this agreement are totally arbitrary and subject to
negotiation.
Te r m s s u c h a s G r o s s R e c e i p t s , N e t R e c e i p t s , N e t P r o c e e d s a n d
E x p l o i t a t i o n m u s t b e e x p l i c i t l y d e f i n e d p r i o r t o e n t e r i n g i n t o t h i s
agreement.
The interest paid to the investors (paragraph 2A) must be negotiated
between the investors and the producers. An amount between 15% and
100% would not be out of line. The producers will try to negotiate the
lowest possible amount; the investor will want the greatest possible
amount.
The distribution of net proceeds (profits) after the initial reimbursement
(paragraph 2B) must also be negotiated between the investors and the
producers. It can range from 85% paid to the investors with 15% paid to
the producers on to a more equitable 50% to the investors and 50% to
the producers. Any greater share to the producers would be highly
u n u s u a l a n d u n l i k e l y.
Any deferred salaries must be taken into account in this agreement.
Any in-kind reimbursable investments must be taken into account in
this agreement.
Distribution of income from any profit-sharing agreements made by the
producer would normally be taken from the producer s share of profits.
If not, that must be clearly stated in this agreement