In recoupment, what does 'additional share of the revenues' refer to?

In recoupment, what does 'additional share of the revenues' refer to?

• A. The entire revenue stream
• B. The audience's tips
• C. The portion of revenues beyond the advance
• D. The advance amount plus interest

Answer: (C)

In recoupment, the money first goes to recover the upfront funds provided to the project; only after that is repaid does any extra profit sharing occur. “Additional share of the revenues” means the portion of revenue that remains after the advance has been recouped. It isn’t the entire revenue stream, nor specific to audience tips, and it isn’t the advance amount (or its interest) itself. The idea is that once the investor has gotten back what they loaned, the remaining revenue is shared as the producer’s or talent’s additional return.

In recoupment, the money first goes to recover the upfront funds provided to the project; only after that is repaid does any extra profit sharing occur. “Additional share of the revenues” means the portion of revenue that remains after the advance has been recouped. It isn’t the entire revenue stream, nor specific to audience tips, and it isn’t the advance amount (or its interest) itself. The idea is that once the investor has gotten back what they loaned, the remaining revenue is shared as the producer’s or talent’s additional return.