1.4 GTM must edit, adapt, modify and/or reallocate productions before it is authorized to use, exhibit, resell and reuse newly processed works in accordance with item 1.1, and after this processing, adaptation, modification or reallocation, all rights to and from the newly processed plant belong to GTM. Given that a production unit is a business and sells passive shares in the film`s financing business, this raises many questions about disclosure obligations imposed by the federal government and the federal states in current securities laws. The company`s producers and promoters are responsible for providing their passive investors with all the essential facts about the investment and its risks. Material information is all the information a sensible person wants to know when they decide whether or not to invest in a film. 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 basic agreement required for an LLC is called an enterprise agreement that establishes the rules of the LLC and is comparable to a “shareholder pact” for a company. The enterprise agreement must address key issues such as management control, the extent of LLC`s business, the filmmakers` personal role and royalties, as well as the role and obligations of investors, as well as the priority and allocation of the return on their investments. While many people do not like to discuss the dissolution of a business at the time of its creation, the enterprise agreement should nevertheless address what would be necessary if the LLC were to be dissolved or if new members were to be added due to death, disability or budget deficit.
Neither party may disclose, directly or indirectly, for any purpose, a person (except for his or her senior managers, staff and specialized advisors on the basis of the need to know) or, for any purpose, any of the trade secrets or confidential information or financial or business information acquired as a result of the conclusion of this Agreement. Each of the parties is trying to prevent its employees from doing something that, if the party does, would constitute a violation of that clause. This restriction applies even after the expiry or termination of this contract without time limit, but no longer goes out for secrets or information that is made public without fault of the person concerned.