Financing / Crowdfunding : Investor agreement template by Alessandro Garau

that would be great! just wondering is that something chat gpt can help with? I'm not a big user of Ai but I have used it twice to write letters for me. one to agents and one to agencies. needed a lot of customisation and personalisation but it gave me a basic template. Got nothing back from either recipients mind you so maybe it's crap

Hire a business attorney (you don't need entertainment one) and pay to have something put together. Also, when dealing w/investments you have to abide by security laws. Best wishes to you!

Hi Alessandro, you might wanna try Gemini or ChatGPT. Here's what I was able to generate with Gemini. You can customize it as you wish.

## Production Agreement Between [Production Company Name] and [Investor Name]

This Production Agreement (the "Agreement") is made and entered into as of this [Date], by and between:

[Production Company Name], a [State of Incorporation] corporation with its principal place of business at [Address] ("Producer"), and

[Investor Name], residing at [Address] ("Investor").

WHEREAS, Producer is developing, financing, producing and exploiting a [Type of Production] entitled [Title of Production] (the "Production"); and

WHEREAS, Investor desires to invest in the Production in accordance with the terms and conditions of this Agreement.

NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants and agreements hereinafter set forth, the parties agree as follows:

1. Investment. Investor agrees to invest [Amount] (the "Investment") in the Production upon the terms and conditions set forth in this Agreement.

2. Production Budget. The total production budget for the Production is [Amount], which is attached hereto as Exhibit A and incorporated herein by reference. Producer shall use the Investment solely for the development, financing, production, and exploitation of the Production in accordance with the Production Budget.

3. Investor Rights. In consideration of the Investment, Investor shall be entitled to the following rights:

* Profit Sharing: [Specify Investor's profit sharing percentage]% of the Net Profits (as defined in Exhibit B) of the Production.

* Executive Producer Credit: An "Executive Producer" credit on the Production.

* Periodic Reports: Regular reports from Producer regarding the development, production, and exploitation of the Production.

* Audit Rights: The right to audit Producer's books and records related to the Production.

4. Producer Warranties. Producer represents and warrants to Investor that:

* Producer has the full right, power, and authority to enter into this Agreement and perform its obligations hereunder.

* The Production will be produced in accordance with all applicable laws and regulations.

* The Production will not infringe upon the intellectual property rights of any third party.

5. Indemnification. Producer agrees to indemnify and hold harmless Investor from and against any and all losses, liabilities, damages, costs, and expenses (including reasonable attorneys' fees) arising out of or in connection with:

* A breach of this Agreement by Producer; or

* The development, production, or exploitation of the Production.

6. Default. If either party breaches any provision of this Agreement, the other party shall have the right to terminate this Agreement upon written notice to the breaching party.

7. Entire Agreement. This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior or contemporaneous communications, representations, or agreements, whether oral or written.

8. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of [State].

9. Severability. If any provision of this Agreement is held to be invalid or unenforceable, such provision shall be struck and the remaining provisions shall remain in full force and effect.

10. Notices. All notices and other communications hereunder shall be in writing and shall be deemed to have been duly given when delivered personally, sent by certified or registered mail, postage prepaid, return receipt requested, or sent by overnight courier, addressed as follows:

If to Producer:

[Production Company Name]

[Address]

If to Investor:

[Investor Name]

[Address]

11. Waiver. No waiver by either party of any breach of any provision of this Agreement shall constitute a waiver of any other or subsequent breach.

12. Binding Effect. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

[Production Company Name]

By: [Name]

Title: [Title]

[Investor Name]

Exhibit A: Production Budget

Exhibit B: Definition of Net Profits

Please Note:

This is a sample agreement and should not be considered a substitute for legal advice. You should consult with an attorney to ensure that this agreement is appropriate for your specific needs.

This agreement does not address all of the potential legal issues that may arise in a production financing arrangement. It is important to carefully consider all of the risks involved before entering into such an agreement.

Not to be that person but you need a lawyer-drafted agreement for investors or you can run into trouble with the SEC (or get sued by the other investors). ChatGPT or Gemini may be ok for draft templates for other types of agreements, but you don't want to mess around with investors. For example, the Gemini example above doesn't detail if the investor gets equity in the project or not. This makes a huge difference on what regulations you need to comply with. I'm all for DIY and cost-saving as much as possible, but not with investor agreements unfortunately.

Dori Zavala, JD spot on, Dori. Always consult with a lawyer and protect your interests and give clarity to the investor as to what they will receive by way of ROI.

Have never used ChatGPT but surprisingly this agreement seems very reasonable! However as others have said, I know the SEC rules in the US are very stringent so I think I'd take advice. If it all goes wrong, can you sue ChatGPT??!!

To Dori & Geoff, please scroll to the bottom of the generated boiler plate agreement and read the "Please Note" section.

Fair point John, but with such caveats, the document is surely of little value other than information?

Templates are Trash. Consult an Attorney. If you cannot afford one, you cannot afford to make a film. Period. Always hire an Attorney, Never use a Template. For Anything. Legal Nightmare Warning.