Film investment contract is basically a pre-production contract, concerned with the proposed value of the film. Generally it is decided with the theatre release, expected sale of DVD’s, cable broadcast both domestic and international and other such sources.
Sample Film Investment Contract
Contract no: – FDB-90/L
- This contract is made on 9th July 2009, between Diamond films and Trusted corporations for their film Long Life.
- Diamond films estimated budget is $50,000, out of which it wants to raise funds worth $40,000 and Trusted Corporations has agreed to buy shares worth $20,000 under certain terms and conditions.
Permanent office address of Diamond Films:-
34th Avenue Road
Permanent office address of Trusted Corporations:-
56/76. Turning point
Main Island, Canada
Distribution of funds:-
Diamond films will pay deferred payment.
Trusted corporations will get the amount they have invested along with additional 20% of their investment.
Funds distribution to song writers will be given after the extra 20% profit shared with Trusted Corporations.
Trusted corporation can defer 10% of the promised funding and can pay it to Diamond films after the successful release of the film.
Termination of Contract:-
Due to any unforeseen circumstances the contract can be terminated with a prior notice of 6 months.
Diamond films are entitled to pay back only 50% of the amount used till that period.
In case of any dispute between the parties, disputes will be settled by Jurisdiction court only.
No out of court settlement will be accepted.
Hence, with the acceptance of above said conditions the contract is said to come in existence.
Signature of Diamond Films
Signature of Trusted Corporations