ARTICLE C2 - OPTIONAL INCENTIVE PLAN FOR FEATURE FILMS

 

C201
For Feature Films with Budgets of under two million dollars ($2,000,000), a Writer may enter into a contract with a Producer that departs from the standard minimum compensation as set out in C1 and C10 in this Agreement provided the following conditions are met prior to contracting:

  1. the Guild and the Writer are provided with a copy of development financing proposals for the project, including those filed with funding agencies, broadcasters, distributors and any other investors;
    1. the Script Material is entirely original to the Writer; and
    2. the underlying rights on which the Script Material is based are controlled by the Writer; or
    3. the underlying rights on which the Script Material is based are controlled by the Producer with the consent of the Writer.

C202

  1. The Writer may agree to work for a fee of no less than:
    1. forty per cent (40%) of the Script Fee in C101, allocated and paid as follows:
      1. on signing of the contract 20%
      2. on delivery of the Treatment 30%
      3. on delivery of the First Draft Script 25%
      4. on delivery of the Second Draft Script 25%
      OR
    2. fifty per cent (50%) of the Script Fee in C101, allocated and paid as follows:
      1. on signing of the contract 10%
      2. on delivery of the Treatment 15%
      3. on delivery of the First Draft Script 40%
      4. on delivery of the Second Draft Script 35%
  2. on the first day of principal photography, the Writer shall be paid the entire Production Fee minus that portion of the Script Fee already paid;
  3. In the case of Feature films with budgets between $1,600,000 and $2,000,000, the Writer shall receive only the Script Fee under Article C101 and no Production Fee, provided that the compensation paid to the Writer shall not be less than the compensation paid to the director or Producer, whichever is greater.
  4. No additional Writer(s) may be engaged to work on the Script without the written agreement of the Writer, and where the Writer does agree that an additional Writer or Writers may be engaged, such Writers shall be contracted under terms no more favourable than the first writer. The Writer of a Rewrite contracted under this Article may agree to work for a fee of no less than fifty per cent (50%) of the Script Fee in C105, allocated and paid as follows:
    1. on signing of the contract 50%
    2. on delivery of the Rewrite 50%
    Additional Polishes shall be contracted at the rates in Article C107.
  5. the original contracting Producer may not transfer the license granted to the Script Material without the written consent of the Writer;
  6. In the event the first day of principal photography does not occur within seven (7) years of the date of signing of the contract, all rights in the Script shall revert to the Writer.
  7. If the director or Producer of the film receives aggregate fees (including, but not limited to initial compensation, royalties and/or a share of gross or net revenues or profits) greater than the combined Script Fee and Production Fee paid to the Writer, then the Writer's compensation shall be increased accordingly on a "favored nations" basis with the aggregate compensation that is highest.
  8. all other provisions of the Agreement shall apply.

C203
The Producer shall provide the Writer and the Guild with confirmation of the Certified Budget from the completion guarantor or a notarized full copy of the total Non-Certified Budget (in the case of productions with no completion guarantor).

The Producer shall provide an affidavit to the Writer and the Guild to confirm the level of remuneration of the Producer and the director.

The above documentation shall be provided no later than the first day of principal photography.

C204
The provision of this Article C2 shall not be used in conjunction with Article B3.

C205
Features With Budgets Under $750,000
For Feature Films with Budgets below seven hundred and fifty thousand dollars ($750,000), a Writer may enter into a contract with a Producer that departs from the standard minimum compensation as set out in C1 and C10 in this Agreement, and applies the following terms:

  1. Use of these provisions shall be requested in writing by the Writer and must be approved by the Guild prior to contracting;
  2. The producer must be a member of the APFTQ;
  3. Use of this Article shall apply only to the licensing of existing scripts, and/or one Rewrite, and not for development;
  4. The director and Producer must be deferring all or part of their fees on the production;
  5. All or part of the Script Fee and Production Fee may be deferred, but five thousand dollars ($5,000) is payable against deferrals on the first day of principal photography;
  6. The remaining deferred compensation shall be paid on a schedule to be agreed between the Writer and Producer, but on terms no less favourable than the payment of deferred compensation to the Producer and director;
  7. The Producer, Writer and director must be Canadian and resident in Canada and the project must qualify as a ten out of ten production for Canadian content with the Canadian Audio Visual Certification Office (CAVCO);
  8. No additional Writer may be engaged to Rewrite without the written permission of the first Writer;
  9. the Guild and the Writer shall be provided with a copy of development financing proposals for the project, including those filed with funding agencies, broadcasters, distributors and any other investors;
  10. The Producer shall provide the Writer and the Guild with confirmation of the Certified Budget from the completion guarantor or a notarized full copy of the total Non-Certified Budget (in the case of productions with no completion guarantor) no later than the first day of principal photography;
  11. Within sixty (60) days from delivery of the release print or broadcast-ready tape (which date shall be confirmed by the Producer in writing), the Producer shall file a detailed report of the actual expenditures for the production to the Guild as well as any other relevant materials the Guild may require to show the cost of production;
  12. Where an audit of the production has been performed, a copy of the audited statement of production costs shall be delivered in the same timeline and manner as set out in Article C1003 (ii);
  13. The Guild has the right to contact other industry partners or funders of the project to corroborate details of the production;
  14. In the event that principal photography has not commenced within three (3) years of signing the contract, all rights in the contracted Script Material shall revert to the Writer;
  15. The production must have a tail credit with the WGC and APFTQ logos and a credit "Made with the support of the Writers Guild of Canada and the APFTQ", with electronic artwork to be provided by the Guild and the APFTQ;
  16. Should the Producer or director receive a share of gross revenues or profits (or net revenues or profits, as the case may be) from the Feature film produced under this Article, then the Writer shall receive an equivalent share of gross revenues or profits to be paid on a pari passu basis.
  17. All terms of the IPA apply except as expressly modified by this Article.

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NOVEMBER 21, 2017

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