INVESTING IN HOLLYWOOD UNDERSTAND THE PARAMETERS OF A FAIR DEAL    Usually investors are entitled to recoup all of their investment from first revenues before payment of deferments or profits. Many times investors are allowed to recoup 110 percent or more of their investment to compensate them for loss of interest and inflation. Profits are declared after payment of debts, investor recoupment and payment of deferments. Profits are generally split 50/50 between the producer(s) and the investors. Thus, investors who provide 100 percent of the financing are entitled to 50 percent of the profits. Third-party profit participants (e.g., the writer, director and stars) are paid from the producer’s half of net profits. back