Oops, yes you're right, it is a percentage of the net. I suspect that the contract in question is a relic from the sixties, when Hollywood accounting was nowhere as sophisticated as it is now and a percentage of the net actually got you some money.
Should watch what you say about Borges. After his stirring knockout victory last week over the New York Times writer that was 100 lbs. overweight and using a cane, Borges could be looking for a new challenge.