Welles signed his contract with RKO on August 21, which stipulated that Welles would act in, direct, produce and write two films. Mercury would get $100,000 for the first film by January 1, 1940, plus 20% of profits after RKO recouped $500,000, and $125,000 for a second film by January 1, 1941, plus 20% of profits after RKO recouped $500,000. The most controversial aspect of the contract was granting Welles complete artistic control of the two films so long as RKO approved both projects' stories and so long as the budget did not exceed $500,000. RKO executives would not be allowed to see any footage until Welles chose to show it to them, and no cuts could be made to either film without Welles's approval. Welles was allowed to develop the story without interference, select his own cast and crew, and have the right of final cut. Granting final cut privilege was unprecedented for a studio since it placed artistic considerations over financial investment. The contract was deeply resented in the film industry, and the Hollywood press took every opportunity to mock RKO and Welles. Schaefer remained a great supporter and saw the unprecedented contract as good publicity. Film scholar Robert L. Carringer wrote: "The simple fact seems to be that Schaefer believed Welles was going to pull off something really big almost as much as Welles did himself."