Definition of Net Profits (Film Distribution)

This is a 5-page schedule that defines and clarifies what constitutes net profits, receipts, and expenses in a film distribution agreement.

This schedule can be attached to any film industry contract in which fees, royalties and other payments are calculated based on income derived from:

• license fees,
• residuals,
• distribution fees,
• theatrical and/or non-theatrical receipts,
• television and video receipts,
• other income from the film except for excluded items and net of any distribution expenses, taxes, and other costs.

The Definition of Net Profits template is provided in MS Word format, and can be customized for your film distribution contract.