CUZ LINDSAY @ Black Brain Pictures on 011 3273270
OR E-Mail firstname.lastname@example.org
We will send you a 'Means of Transferring Funds' form and explain the process involved in securing your stake in this exciting SA filmmaking project.
The terms and conditions for coming on board as an Associate Producer are outlined below.
TERMS AND CONDITIONS
- Dear Investor
1. “Discreet – The Movie CC” (the CC) is a close corporation that is being set up specifically for the purpose of making a film of the play. Filming was concluded 16 April 2007 and the edit is scheduled to be completed in September 2007. This exciting venture is being modelled for South Africa on the successful formula applied to such independent films as My Big Fat Greek Wedding and The Blair Witch Project amongst others. This is the opportunity to participate with a team of successful youngsters in an art-circuit movie of our own.
2. The project will be run by members of the production companies Black Brain Pictures CC and the partnership Scramble Productions both acclaimed winners in the South African Entertainment Industry
3. The CC wishes to approach you as an investor to participate in the funding of the film. In this regard the CC needs to raise 50% of the production budget from third party investors.
4. The CC plans to raise R 1 million by means of issuing 200 units (in the form of loans) of
R 5000.00 each in order to produce the film.
5. In return for your loan to “Discreet – The Movie CC”, you will receive in addition to your unit participation and rights :
5.1. An end-credit as an associate producer on the movie;
5.2. A ticket to the premiere; and
5.3. A Collectors DVD of the final cut of the movie.
6. Accordingly you hereby agree to the terms and conditions outlined in clause 7 below: to loan the CC R5000.00 or multiples thereof for the purposes of producing “The Movie – Discreet”. In return for your R5000.00 you will receive the following:
6.1 The perks as outlined in clause 5 above.
6.2 Your initial capital as a portion of the share of the profits as defined below along with all other profits
6.3 Interest at a rate of 15% being the current prime rate plus 2%
6.4 A pro-rata share of the profits in line with your loan account
7. Notwithstanding the above, you understand and accept the risks involved in film making and hereby agree that:
7.1 The film may require further funding. In this regard, should further funding be required your profit share in the film will be diluted in line with all further investors in the film on a pro-rata basis.
7.2 You will receive a return on your investment in the form of gross profits during the first two years of the release of the film (on all formats). Such return shall be calculated after the expenses of the film have been recouped which shall include but not be limited to sales agents commission, distribution commission, primary funders rights or other expenses associated with the shooting, production, cutting and editing of the film as well as usual expenses in the setting up and running of the CC. The gross profits will be distributed on a pari passu basis to all shareholders in terms of a dividend payable by the CC.
7.3 Copyright in and to the film shall vest in the CC for all purposes throughout the world and in all media and you hereby waive any rights of veto, security or lien you may have in respect of copyright on the film or the masters or prints of the film including out-takes, edited versions, digital files and the like.
7.4 To the extent necessary, you hereby assign all rights in copyright you may have to the CC.
7.5 You agree that the primary asset of the CC is the film and accordingly, the CC may need to cede or assign the rights in and to the film to a third party for the purposes of selling, distributing or licensing the film.
7.6 You hereby agree that the CC is entitled to cede, assign, alienate or license the film to any third party as it chooses in its sole discretion.
7.7. The company will be run by the successful entrepreneurs: Anel Alexander, James Alexander, Tumi Masemola, Mandla Ndimande, Cuz Lindsay, Meren Reddy, Luke Rous and Joshua Rous and they shall be entitled to sign any document, assign and participate in any transaction they in their sole discretion feel is appropriate and necessary for the purposes of making, financing, producing and distributing the film.
7.8 You acknowledge and agree that film making has a business risk element and nothing in this agreement should be construed as a guarantee that the film will be profitable. In the event that the film is not made, the CC will be wound up and any assets in the company will be distributed in the usual course of such winding up. You further acknowledge and agree in the event of such winding up, that you may not recoup your entire initial investment nor any interest as these may have formed part of the expenses incurred in running the CC.
7.9 Nothing in this document should be construed to imply or be interpreted to mean that you will recoup your original R5000.00 investment or receive any return thereon. However, once the expenses have been paid, you, the investor, will receive repayment of the loan plus interest prior to any profits being distributed.
Our energy, time, talents and personal funds are being dedicated to the success of making the movie Discreet. Please join us in bringing this fabulous project to fruition!