Kevin McCallister
Well-known member
Hey Guys,
I'm looking for the opinions of some informed individuals on a paragraph included in the contract I plan to distribute to actors in my upcoming feature. In laymen's terms, the plan for deferment is for each actor to receive 2% of net profits, but only for a period of 3 years, which starts on the day the first net profit is made. I'll paste the actual paragraph from the contract below for you guys to peruse; my main concern comes with the part about the time limit, since I added that myself and am not too familiar with legal lingo. Please, by all means, let me know of any noticeable loopholes, lack of clarity, or other concerns I should have:
"1. PHOTOPLAY, ROLE, SALARY, DEFERRED PROFIT PARTICIPATION AND GUARANTEE: Producer hereby engages Player to render services as such in the role of _______________, in the Screenplay, at the salary of zero Dollars ($ 0.00) per day, and in addition to profit participation of an amount equal to two percent of one hundred percent (2% of 100%) of the Producer’s Net Picture Income, if any. Player agrees that such compensation shall be deferred and paid pro rate with all similar deferments of compensation, on an annual basis, once such Net Picture Income exists, for a period of three (3) years from start of existence of Net Picture Income. Producer’s Net Picture Income is defined as the gross income actually received by Producer from the exploitation of the Picture, less the following: any distribution charges or distributors’ agents’ or other third party fees, costs of collecting delinquent accounts, sales and other taxes, the actual negative cost of production, and payments to investors in the Picture. Player accepts such engagement upon the terms herein specified. Producer guarantees that it will furnish Player not less than one (1) day of employment."
Thanks again guys for any help you can give me.
I'm looking for the opinions of some informed individuals on a paragraph included in the contract I plan to distribute to actors in my upcoming feature. In laymen's terms, the plan for deferment is for each actor to receive 2% of net profits, but only for a period of 3 years, which starts on the day the first net profit is made. I'll paste the actual paragraph from the contract below for you guys to peruse; my main concern comes with the part about the time limit, since I added that myself and am not too familiar with legal lingo. Please, by all means, let me know of any noticeable loopholes, lack of clarity, or other concerns I should have:
"1. PHOTOPLAY, ROLE, SALARY, DEFERRED PROFIT PARTICIPATION AND GUARANTEE: Producer hereby engages Player to render services as such in the role of _______________, in the Screenplay, at the salary of zero Dollars ($ 0.00) per day, and in addition to profit participation of an amount equal to two percent of one hundred percent (2% of 100%) of the Producer’s Net Picture Income, if any. Player agrees that such compensation shall be deferred and paid pro rate with all similar deferments of compensation, on an annual basis, once such Net Picture Income exists, for a period of three (3) years from start of existence of Net Picture Income. Producer’s Net Picture Income is defined as the gross income actually received by Producer from the exploitation of the Picture, less the following: any distribution charges or distributors’ agents’ or other third party fees, costs of collecting delinquent accounts, sales and other taxes, the actual negative cost of production, and payments to investors in the Picture. Player accepts such engagement upon the terms herein specified. Producer guarantees that it will furnish Player not less than one (1) day of employment."
Thanks again guys for any help you can give me.
