English translation: contingent compensation contract
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16:32 Apr 27, 2011
German to English translations [PRO] Social Sciences - Cinema, Film, TV, Drama / Filmmaking
German term or phrase:Rückstellungsvertrag
Alle Teammitglieder bekommen einen Rückstellungsvertrag.
Hi there, I have to translate an e-mail to an American actor's agent, he has basically agreed to do the film, and knows that it is low budget, but it has to made clear in the e-mail that no fees/salaries will be paid at this stage, although everybody will get a Rückstellungsvertrag for in case the film has financial success.
I.e. if you sign a Rückstellungsvertrag, you forfeit your salary for the time being, but in case the film makes money (happens rarely but you never know), you get your dues. Rückstellung is in the dictionaries as "provision", but I don't know if that quite fits, as I think provision can also e.g. mean you get a certain percentage of the profit? The Rückstellung means that you get what you would have gotten if the film had a regular budget, after the film has covered the other production costs such as equipment rental, distribution costs etc. So if your regular wages would have been 500 Euros per week, you still won't get more than that even if the film grosses millions, same as if you were paid up front. And depending on the details of the contract, everybody gets a bit of money or some get paid first. If the contract is of the "a bit for everybody" kind and the film earns enough to cover 10% of the personnel costs, then everybody gets 10% of their dues, i.e. the guy with 500 Euro wages will get 50 Euros for each week he worked, and the head of department who might have a standard wage of 1500 Euro will thus get 150 Euro. Other such contracts might stipulate that e.g. the actors and director plus the heads of the various departments get paid first and in full, and if money is left over the rest of the crew gets paid, so if you are low on this list you might get nothing even though others are getting their full wages.
I am sure the basic principle of crew members on low budget productions working for free is not uncommon in America/UK either, but is there a specific term for such contracts or do I have to describe the concept instead?
A good German description of the Rückstellung concept can be found here:
Explanation: Not sure about this, but it looks like a good possibility.
Contingent Compensation--Upon condition that Artist appears recognizably in the Picture as released in the role in which he is engaged hereunder, Artist shall be entitled to receive an amount equal to ____ percent of one hundred percent (____% of 100%) of the net proceeds, if any, of the Picture.
A contingent compensation deal is one in which a participant in the film receives a percentage of the revenues made by that film in addition to, or in lieu of, their fixed payment. There are four main elements that might have to be taken into account in determining the payment due under such schemes:
distribution and sales fees
distribution expenses
cost of production
gross receipts
Before entering into a contingent compensation deal, it is imperative that all parties understand precisely the terms of that deal and that the contracts are crystal clear and agreed by all parties.
-------------------------------------------------- Note added at 29 mins (2011-04-27 17:01:40 GMT) --------------------------------------------------
Contingent Compensation
Most actors receive a guaranteed flat fee only. On the other hand, established actors usually receive some form of contingent compensation especially when working on a low budget film. That is, if the actor believes in the project he may be willing to take the risk of receiving back-end fees if the project is successful.
Contingent compensation is usually based on gross receipts or net profits. Theoretically, gross participants share in profits from the first dollar (i.e. a percentage of revenue received by the production company without deductions). Actually, most A-list actors receive profits only after certain deductions such as taxes, trade dues, guild fringe payments (and sometimes a deduction of limited distribution costs).
Net profit participants are usually payable after the studio has deducted all distribution fees, all gross participants (or adjusted gross participants) payments, all deferments, all costs for marketing and advertising and all negative costs of the picture. Because of this structure, net profit participants are rarely paid.
Deferred Compensation
If an actor gives a quote for his acting services and the budget cannot support that quote, the actor can agree to defer a portion of his compensation. Then the negotiation focuses on when is the deferred compensation paid and how is it paid. Actors negotiate for payment at a specific point in time (e.g. payment one year from completion of principal photography or payment when the picture reaches a certain level of U.S. box-office receipts as reported in the Daily Variety or the Hollywood Reporter.) The producer, on the other hand, may negotiate that the point in time at which deferment is paid is when the producer has recouped distribution fees, print, advertisement and marketing costs.
The personnel income/expenses recognised in the income statement corresponds to the change in the provision in the year under review, taking into consideration any rights exercised.
The personnel expenses/income recognised in the income statement corresponds to the change in the provision in the year under review, taking into consideration any rights exercised.
Explanation: Not sure about this, but it looks like a good possibility.
Contingent Compensation--Upon condition that Artist appears recognizably in the Picture as released in the role in which he is engaged hereunder, Artist shall be entitled to receive an amount equal to ____ percent of one hundred percent (____% of 100%) of the net proceeds, if any, of the Picture.
A contingent compensation deal is one in which a participant in the film receives a percentage of the revenues made by that film in addition to, or in lieu of, their fixed payment. There are four main elements that might have to be taken into account in determining the payment due under such schemes:
distribution and sales fees
distribution expenses
cost of production
gross receipts
Before entering into a contingent compensation deal, it is imperative that all parties understand precisely the terms of that deal and that the contracts are crystal clear and agreed by all parties.
-------------------------------------------------- Note added at 29 mins (2011-04-27 17:01:40 GMT) --------------------------------------------------
Contingent Compensation
Most actors receive a guaranteed flat fee only. On the other hand, established actors usually receive some form of contingent compensation especially when working on a low budget film. That is, if the actor believes in the project he may be willing to take the risk of receiving back-end fees if the project is successful.
Contingent compensation is usually based on gross receipts or net profits. Theoretically, gross participants share in profits from the first dollar (i.e. a percentage of revenue received by the production company without deductions). Actually, most A-list actors receive profits only after certain deductions such as taxes, trade dues, guild fringe payments (and sometimes a deduction of limited distribution costs).
Net profit participants are usually payable after the studio has deducted all distribution fees, all gross participants (or adjusted gross participants) payments, all deferments, all costs for marketing and advertising and all negative costs of the picture. Because of this structure, net profit participants are rarely paid.
Deferred Compensation
If an actor gives a quote for his acting services and the budget cannot support that quote, the actor can agree to defer a portion of his compensation. Then the negotiation focuses on when is the deferred compensation paid and how is it paid. Actors negotiate for payment at a specific point in time (e.g. payment one year from completion of principal photography or payment when the picture reaches a certain level of U.S. box-office receipts as reported in the Daily Variety or the Hollywood Reporter.) The producer, on the other hand, may negotiate that the point in time at which deferment is paid is when the producer has recouped distribution fees, print, advertisement and marketing costs.
The translation workplace 
peer agreement (net): +2
