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example of subcontractor agreement - FAQ

What should I include in a subcontractor agreement?
Contracts including subcontracts are intended to reflect the terms of anagreement reached between two parties whatever those terms may be. Thereforeyou are certainly free to request a 50 deposit for each project and caneasily include such language in the subcontract if the studio agrees to it.You are in the best position to know whether that is a term the studio wouldlikely accept. If you are not certain or if it is something you have notpreviously discussed with the studio you should think hard about including itas it may dampen their enthusiasm for hiring you. As for what should be included in the subcontract you will want to includeall material terms of your agreement with the studio. At a minimum you shouldconsider including a detailed scope of work any conditions related to thatwork your compensation terms a dispute resolution mechanism the term of theagreement and a termination provision. You should also include numerous othersections that could be considered legal boilerplate regarding things likeconfidentiality budgetary restrictions exclusivity objectivepurpose of theagreement and a clause discussing modification of the agreement. Which ofthese sections and potentially others I am not mentioning you need dependsentirely on the specifics of the relationship so you should really consultwith an attorney to draft it. Lastly you should be sure to keep all of the emails you have evidencing anagreement between you and the studio. Contracts can be enforced absent asingle integrated document if there is evidence that the parties agreed onall material terms. I cannot say whether the emails you have are sufficientbut in the absence of a signed document you will want to hold on to them inthe event you need them down the road. This answer is not a substitute forprofessional legal advice....
Can you use an employee stock option agreement for subcontractors/vendors?
Do you have a standard grant document you use to issue the options after yourboard approves them I assume If you do check whether it really doesreference the grantee as an employee. It might but in most cases in myexperience it does not and instead references Participant or other term.That is because most stock option plans permit grants to anyone who providesservice to the company not just employees which allows the company to makegrants to contractors board members etc. under the plan. If your grant document does specifically reference employee Id double checkyour underlying plan document to make sure it permits grants to nonemployees. Another quick thought just like when making an offer i would think thatyou would at most say that you would recommend to your board to grant optionsto the contractor and that you would only give them an actual grant documentonce you had board approval since very few plans permit grants without boardapproval. This answer is not a substitute for professional legal advice....
As a subcontractor with a multi-year agreement, should you negotiate payincreases for inflation at the outset, or discuss them annually?
Inflation adjustment is generally very low 12 and really not worthhaggling about either way. Plus you do not know if he hiring manager you aregoing to work with will stay the same or not over the multiple years. I wouldsuggest adding 5 to the contract up front and forgetting about the inflationadjustment. Easier all around.
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