Help with Producer memo deal

B

BruceDowns

Does this part of the agreement include HBO or Netflix deals? Thanks in advance. Bruce D.

(b) Fees: (ii) Participation: Two Percent (2%) of the One Hundred Percent (100 %) of the Production Company's gross revenues from theatrical box office and television and ancillary licensed rights sales in the United States and Canada, reducible by the break-even amount of investor recoupment not to exceed Two Hundred Thousand ($200,000.00).
 
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BruceDowns said:
Does this part of the agreement include HBO or Netflix deals? Thanks in advance. Bruce D.

(b) Fees: (ii) Participation: Two Percent (2%) of the One Hundred Percent (100 %) of the Production Company's gross revenues from theatrical box office and television and ancillary licensed rights sales in the United States and Canada, reducible by the break-even amount of investor recoupment not to exceed Two Hundred Thousand ($200,000.00).
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Yes. It includes all deals.

But since I haven't read the entire contract that's just a guess.

I guess not helpful. But HBO and Netflix are most likely "television and ancillary licensed rights sales".
 
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(b) Fees: (ii) Participation: Two Percent (2%) of the One Hundred Percent (100 %) of the Production Company's gross revenues from theatrical box office and television and ancillary licensed rights sales in the United States and Canada, reducible by the break-even amount of investor recoupment not to exceed Two Hundred Thousand ($200,000.00).
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It's virtually impossible to tell with this little information, which is sometimes typical of deal memos. There wouldn't perhaps be a definitions appendix? Streaming can come under new media. It's not necessarily included as ancillary.

As much as I've done some contract law a side function of an old job, you need to talk with an entertainment attorney. As an educated guess, you're not going to see a nickel from this deal, but it might be the usual "good experience" and "exposure" though you could potentially get a decent upside if it goes gangbusters.

Depending on what type of producer you're talking about, they usually get paid as a percentage of the budget (or a flat fee with smaller budgets like this). Clauses like yours are usually a performance bonus, often as a percentage of net profits.
 
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