Points by James Jaeger
Definitions Name Element means any recognizable acting talent, director, producer or more than 50% of the production budget. In the event of any interpretation problems, the production company should make the final determination.
Project means a feature-length motion picture intended for exploitation in any market or territory.
Interested means a Name Element has read the screenplay and, directly or via their agent, indicated, in writing or verbally, that they are interested in being involved in the Project pending scheduled availability and payment of an agreed-upon fee.
Cornerstone Element is the first Name Element Interested in the Project.
Development Money Investors are people or entities that invest funds for the purpose of developing a screenplay and packaging a Project, but not limited to these expenses.
Third Party means the person or producer who obtains interest from the Name Element.
Producer-in-Charge means the person who bears ultimate responsibility for seeing that the Project gets done on time and on budget with the contemplated degree of quality and viability.
Global Points Allocation It's a good idea to standardize what your company will pay and require from other production entities. Here are some guidelines:
OF 100% OF PRODUCER'S NET:
Legal/Accounting . . . . . . . . . . . . . . . . . . 5%
Writer(s) . . . . . . . . . . . . . . . . . . . . . . 5%
Development Money Investors . . . . . . . . . . . . . 5%
Cornerstone Element Interested . . . . . . . . . . . 25%
Second Name Element Interested . . . . . . . . . . . 15%
Other Name Elements Interested . . . . . . . . . . . 10%
Total of Above . . . . . . . . . . . . . . . . 65%
Remaining Balance . . . . . . . . . . . . . . . 35%
OF THE REMAINING BALANCE OF 35%:
Producer-in-Charge of Prod. . . . 40% of 35% = 14%
Retained by the Co. . . 60% of 35% = 21%
Fees The Third Party requested by your company to arrange for a Name Element may keep what Points he or she does not allocate to said Name Element.
Such Points are only vested (to the Name Element and the Third Party) if and when the company actually utilizes the Services of the Name Element and, the Third Party hereby agrees and warrants that he or she will make this policy known to all such Name Element(s) solicited for the Project by Third Party.
Suggest 5 Points retained by Third Party for arranging Cornerstone Element and 20 Points to Cornerstone Element.
Suggest 3 Points retained by Third Party for arranging Second Name Element and 12 points to Second Name Element.
Suggest up to 25 Points retained by Third Party for arranging more than 50% of the financing and 0 Points granted to Financier(s) as financiers participate out of the gross profits, not Production Company's Share of Net Profits or Points.
Suggest minimum of 14 points for Producer-in-Charge of Production to supervise production.
Your production company should retain no less than 21 Points in any case for any Project.
Use and Non-Exclusivity Your company is not under any obligation to utilize the services of any Name Element for the Project unless contracted upon acceptable terms.
Unless otherwise provided in writing, your production company should reserve the right to allocate more or less than those Points stipulated above and may ask more than one Third Party to simultaneously seek a Cornerstone Element and select which it, in its sole discretion, will utilize and allocate Points for.
Credits The Third Party arranging for an acting or directing Name Element, which is ultimately used by your company, may receive the screen credit of Associate Producer or Co-Producer at the discretion of the production company.
The Third Party arranging for more than 50% of the financing, which is ultimately used by the Company, may receive the screen credit of Executive Producer or Co-Producer at the discretion of the production company.
These allocations update and replace any allocations formerly stipulated by the production company.
Also see Financial Philosophy
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