The standard contract of an SAG player involves regular conditions such as compensation. However, a wrinkle imposed by the SAG is that actors under the protection of the guild will be guaranteed some compensation (regardless of actual working hours), and in return, the film producer gets the exclusive right to use their image in the film. The producer must also agree to pay all DEE contributions, such as the actors` health and pension plans. In general, agreements with SAG actors also provide for how they are credited and often contain a section dealing with wardrobes and other similar amenities. It is important that an SAG contract explicitly discusses the types of advertising and advertising services for which the actor must be engaged. In addition, an SAG actor will also often have permission for the types of advertising photos and other materials that the producer can use to promote a film. The next issue to consider is the extent of LLC`s activity. For example, is the film company created to produce one or more films? In general, LLC Enterprise Agreements are developed to allow the LLC to participate in «any legal activity,» but it may offer increased protection to retail investors if, given the risks associated with film investments, the LLC is limited to a single film project. From the filmmakers` point of view, it is very important that the enterprise agreement be developed to ensure that the filmmaker retains full control over the management of the company.
Since the films are very personal to the filmmaker, the enterprise agreement should include an «emergency plan» which, as the name suggests, should indicate the backup plan and the consequences in the event that, for whatever reason, the filmmaker is unable to conclude the project. We also recommend that filmmakers` obligations be specified in separate employment contracts, so that filmmakers become employees of LLC and that the intellectual property created be owned by the LLC under the traditional principles of «work for rent.» The first and most striking difference between the old and the new is that it is now «part 1» of the agreement as a whole, Part 2 being the treaty.