Here I'll discuss two common provisions in profit-sharing agreements for independent films. First, I'll talk about a clause that says that when a profit share is paid to the profit-sharing cast and crew members, it will be accompanied by a statement explaining how the amount paid to them was calculated. Second, I'll talk about a clause that says the person receiving the profit share can audit the production company's books — usually once a year and at the profit-sharing recipient's own expense, except that clauses like this sometimes state that the production company must pay the cost of the audit if the audit reveals a large enough discrepancy between the amount paid to the recipient and the amount actually owed. Demanding cast and crew members or their representatives will often request this audit.

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