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Draft Project Proposal for Animation Project

Draft Project Proposal for Animation Project on Percentage Sharing Basis with Artist Transferable Shares and Exit Clauses

Project Title: [Insert Title of the Animation Project]

Project Overview:

This proposal details the framework for an animated series/film production, with specific guidelines for the sharing of revenue, artist share transfers, exit clauses, and active participation requirements for shareholders. The project’s revenue will be distributed based on a percentage-sharing system, ensuring fair compensation for all involved. The proposal also includes provisions for artists who wish to transfer their shares or exit the project while ensuring no impact on the Project Owner’s interests.

1. Revenue Sharing Breakdown

The total revenue of the project will be distributed according to the following structure:

  • Project Owner: 35% of the total revenue

  • Artists (60 Artists): 60% of the total revenue, equally divided among all active contributing artists

  • Marketing, Legal, and Administrative Costs: 5% of the total revenue

2. Project Owner’s Share (35%)

The Project Owner will retain 35% of the total revenue. This share compensates the owner for their investment, leadership, and overall management of the project. The Project Owner will continue to oversee key decisions, strategy, and the final vision for the project, ensuring that the project’s success is aligned with their original objectives.

3. Artists' Share (60%)

A total of 60% of the total revenue will be allocated to the artists involved in the production of the animation. This 60% will be divided equally among the actively participating artists, ensuring each artist's role is acknowledged and compensated for their contribution.

  • Active Participation Requirement: Only artists who are actively involved in the creative process (such as animation, character design, sound production, etc.) will be eligible for a share in the revenue. Artists who are not actively participating, or who exit the project, will not be entitled to a share of the project’s revenue.

  • Revenue Distribution Among Artists: The 60% will be divided equally, with each actively participating artist receiving an equal percentage of the total revenue.

4. Artist Share Transfer and Exit Clause

In the event that an artist wishes to exit the project, they may choose to transfer their share to another qualified artist. The following guidelines apply to the transfer or exit process:

  • Share Transfer: An artist can transfer their percentage share to another actively participating artist, subject to the approval of the Project Owner. The transfer of shares is only allowed to artists who are actively engaged in the project and whose work aligns with the project's objectives.

  • Exit Clause: If an artist decides to exit the project permanently, they must formally notify the Project Owner in writing. Upon exit, the artist’s share will be either:

    1. Transferred to another active artist, or

    2. Retained by the Project Owner, who may redistribute it to other active artists or allocate it to fund other project needs (marketing, legal, etc.).

    Note: An artist’s decision to exit will not affect the Project Owner’s 35% share or the overall revenue structure. The Project Owner’s revenue will remain intact, ensuring no disruption to the financial stability of the project.

  • Exit Liability: Any artist who exits the project must bear the responsibility of settling any outstanding obligations (if any) that existed prior to their departure. The exiting artist will not retain any claim over future revenue after the date of exit, and they will not hold the Project Owner or remaining artists liable for any future project outcomes.

5. Marketing, Legal, and Administrative Costs (5%)

This section will remain unchanged. The 5% will still be allocated towards:

  • Marketing: Promoting the project across multiple platforms to ensure its success.

  • Legal: Covering legal expenses related to intellectual property, contracts, distribution rights, and other legal matters.

  • Administrative: Funding for office overheads, logistics, and necessary business operations.

6. Active Shareholders

Only artists who are actively involved in the production and creative development of the project will be considered shareholders. Shareholders are defined as individuals who contribute significant creative work that directly influences the project’s outcome. Passive participants, advisors, or investors who do not contribute creatively will not be entitled to shares in the project.

7. Legal and Contractual Agreements

All stakeholders will sign a formal legal agreement outlining the terms of their participation, shareholding rights, transfer conditions, exit clauses, and the distribution of revenues. This agreement will include:

  • Clear clauses about share ownership and transferability

  • Artist exit procedures and associated legal obligations

  • Payment terms and distribution schedules

  • Protection of intellectual property and confidentiality agreements

  • Specific responsibilities of the Project Owner, artists, and other stakeholders

8. Conclusion

This revised revenue-sharing model and the added clauses regarding share transfer and artist exit allow for flexibility while ensuring the stability of the project. It enables the Project Owner to maintain control over the project’s success and financial health, while also offering fairness and clarity for all artists involved. The inclusion of active participation requirements ensures that shareholders are dedicated to the project's success, and the exit clauses protect the interests of both the artists and the Project Owner.

By implementing these provisions, the project creates a sustainable, collaborative environment where all contributors can participate, share in the success, and exit without compromising the overall integrity and revenue flow of the animation project.

Signatories

[Name of Project Owner]
Project Owner
Signature: _____________________
Date: _________________________

[Name of Legal Advisor]
Legal Representative
Signature: _____________________
Date: _________________________

[Name of Artist Representative]
Representative for Artists
Signature: _____________________
Date: _________________________

This revised proposal addresses the transferability of artist shares, exit strategies, and ensures the stability of the project’s operations while rewarding active contributors.

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