Can you decipher this sentence from investor package?

M

Mickey Munday

Well-known member
i've been doing research online and was on someone's blog who posted a brief paragraph from an investor's package they were working on and i didn't quite understand the last sentence. the paragraph reads as follows:

The distribution of revenue is outlined in detail in the Investor Agreement. In brief, upon profitable sale of the Picture, the investor(s) will receive 100% ($10,500,000) of their initial investment. The remaining revenue will be distributed with 45% to production and 45% to the investor(s), in proportion to their Capital Investment in the Picture. Saturn Moon Films is reserving 10% equity investment for marquee talent in Boston Chronicles, LLC. If less then 10% equity is needed to secure talent, the remaining percentages would be added equally to the production and investor(s) pools.

from this i get that the film production company is promising 100% of the investors investment, with 45% of profits going to the film company and 45% going back to the investors...so the 10% will go to the main actor(s)? or are they saying 10% is needed up front just to secure the main talent?
 
In case the marquee talent were secured for less than specified in the budget, then the ten percent would be reduced proportionally and passed along to the producers and the investors equally.

If $1,000,000 was earmarked for marquee talent, but only $700,000 was paid out to them, then the remaining 3% of the profits that were intended for the marquee talent (instead of the 10% specified) would be divided between the producers and the investors.
 
Filmman is correct.

The sentence should also have started, "If less than 10%" not "less then". The author should hire a grade 5 student to correct their grammar.
 
You must log in or register to reply here.
Back
Top