Article C10 - Production Fee
Script Fees and Production Fees for productions with Budgets of sixty thousand dollars ($60,000) or less are negotiable between the Writer and Producer.
The Producer shall provide to the Guild in writing the following information, when known:
At least fifteen (15) days prior to the first scheduled day of principal photography or, in the case of a Documentary, on recording of final narration or at the fine cut if no narration recording, the Producer shall deliver to the Guild:
Productions With Non-Certified Budgets
In the case of productions with Non-Certified Budgets, in addition to the provisions of Article C1002, Producers shall provide to the Guild within sixty (60) days from delivery of the release print or broadcast ready tape (which date shall be confirmed by the Producer in writing), a statement of production costs prepared by a designated accountant. If the production costs exceed the Non-Certified Budget, the Producer shall pay any additional sums due to the Writer(s) calculated in accordance with Article C1005. If the production costs are less than the Non-Certified Budget, there shall be no refund of monies paid or payable.
Productions With More Than One Version in Length
In the case of a program having more than one version (in length) for which no new writing or shooting is required, it is understood that there is only one Production Fee payable, which shall be calculated on the total Budget including expenses incurred for the editing of all versions. If additional versions are made subsequent to the payment of the Production Fee, the costs for all additional version(s) shall be added to the Budget and such revised Budget shall become the Budget for the program and filed with the Guild as per Article C1002. The Producer shall pay any additional sums due to the Writer(s) calculated in accordance with Article C10 (Production Fee).
In the case of a program having more than one version where new writing is required, the Writer performing such services shall be contracted under this Agreement on a daily rate negotiated between the Writer and the Producer.
The Distributors’ Gross Revenues, as defined in Article C1103, for all versions of the program shall be added to and considered to be the Distributors’ Gross Revenues for the program.
On the first day of principal photography, the Producer shall pay each credited Writer contracted under this Agreement his/her share of the Production Fee. In the case of a Documentary, on recording of final Narration, or at the fine cut if no Narration recording, the Producer shall pay to each credited Writer contracted under this Agreement his/her share of the Production Fee (See Article A1109 for the division of the Production Fee.)
This Production Fee shall be calculated on the basis of the Budget, as follows:
For a Budget in excess of $13 million the Production Fee is negotiable, but the floor for such negotiation is $300,579.75.
Following is a table setting out examples of these payments:
The following table illustrates the formula provided in Article C1005 and gives examples. For the purpose of calculating the actual Production Fee, the total Budget figure must be used.
If the Budget is over $13,000,000 the Production Fee is negotiable, but shall not be less than $300,580
|C1006||In the case of a Series, the Budget for an episode shall be the Budget for that episode, or the total Budget for the Series, including amortized items, divided by the number of episodes in the Series. The option chosen by the Producer shall apply to the entire Series.|
|C1007||If the Budget is expressed in a foreign currency, then the Production Fee shall be calculated at a conversion rate no less favourable to the Writer than the conversion rate set by the Producer’s bank within three (3) business days prior to the start of principal photography.|
|C1008||Script Fees paid to a credited Writer contracted under this Agreement may be deducted from his/her share of the Production Fee to a maximum of the Writer’s share of the Production Fee but no other deductions of any kind may be made.|
|C1009||In the event of a dispute as to the credits, the Producer shall on the first day of principal photography pay the maximum amount of the Production Fee (i.e. the maximum amount payable to any and all Writer(s) based on any potential credit arbitration decision) due the Writer(s) to the Guild to be held in trust for such Writer(s) until a credit arbitration has been concluded.|
If there are credited Writers contracted under other guild agreements and not under this Agreement, the Writer(s) contracted under this Agreement shall be paid a share of the Production Fee and Distribution Royalty calculated as if all Writers were contracted under this Agreement, provided that the other guild agreement has been negotiated by a member of the International Affiliation of Writers Guilds (“IAWG”). Where the other credited Writer(s) engaged are not contracted under an IAWG Guild, then the credited Writer(s) contracted under this Agreement shall receive the following share of the Production Fee and Distribution Royalty:
Should the Production Fee share based on writing credit as per Article A1109 exceed the above amounts the Writer shall receive the greater share of the Production Fee.
Writers not contracted under this Agreement shall be paid in accordance with their own guild agreement and/or individual contract.