Article C2 - Optional Incentive Plan for Feature Films

Script Fees and Production Fees for productions with Budgets of sixty thousand dollars ($60,000) or less are negotiable between the Writer and Producer.
C201 For Feature Films, including Documentaries, with Budgets of under three million dollars ($3,000,000), 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:
a. 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;
b.
i. the Script Material is entirely original to the Writer; and
ii. the underlying rights on which the Script Material is based are controlled by the Writer; or
iii. the underlying rights on which the Script Material is based are controlled by the Producer with the consent of the Writer.
c. The Documentary Feature Film Script Fees outlined in Articles C115 to C120 shall not be used in conjunction with the terms of Article C202 a) and b).
C202
a. The Writer may agree to work for a fee of no less than:
i. forty per cent (40%) of the Script Fee in C101, allocated and paid as follows:
a. on signing of the contract 20%
b. on delivery of the Treatment 30%
c. on delivery of the First Draft Script 25%
d. on delivery of the Second Draft Script 25%
  OR
ii. fifty per cent (50%) of the Script Fee in C101, allocated and paid as follows:
a. on signing of the contract 10%
b. on delivery of the Treatment 15%
c. on delivery of the First Draft Script 40%
d. on delivery of the Second Draft Script 35%
b. 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;
c. In the case of Feature Films with budgets between $1,600,000 and $2,000,000, the Writer shall receive the Script Fee under Article C101 and no Production Fee or no less than the compensation paid to the director.
d. 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 C107, allocated and paid as follows:
i. on signing of the contract 50%
ii. on delivery of the Rewrite 50%
  Additional Polishes shall be contracted at the rates in Article C109.
e. the original contracting Producer may not transfer the license granted to the Script Material without the written consent of the Writer;
f. 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.
g. If the director of the program 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 "favoured nations" basis with the aggregate compensation of the director.
h. all other provisions of the Agreement shall apply.
C203 The Producer shall provide the Writer and the Guild with confirmation of the Certified Budget or a notarized full copy of the total Non-Certified Budget (in the case of productions with no completion guarantor or government agency involvement).

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

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

C204 Feature Films With Budgets Under $1,200,000

For Feature Films with Budgets below one million, two hundred thousand dollars ($1,200,000), 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:

i. Use of these provisions shall be requested in writing by the Writer and must be approved by the Guild prior to contracting;
ii. The producer must be a member of one of the Associations;
iii. Use of this Article shall apply only to the licensing of existing scripts, and/or one Rewrite, and not for development;
iv. The director must be deferring all or part of their fees on the production;
v. 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;
vi. 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;
vii. The producer, Writer and director must be Canadian and resident in Canada and the project must qualify as a seven out of ten production for Canadian content with the Canadian Audio Visual Certification Office (CAVCO);
viii. No additional writer may be engaged to Rewrite without the written permission of the first Writer;
ix. 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;
x. The Producer shall provide the Writer and the Guild with confirmation of the Certified Budget or a notarized full copy of the total Non-Certified Budget (in the case of productions with no completion guarantor or government agency involvement) no later than the first day of principal photography;
xi. 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;
xii. 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);
xiii. The Guild has the right to contact other industry partners or funders of the project to corroborate details of the production;
xiv. 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;
xv. The production must have a tail credit with the WGC and relevant Association's logos and a credit "Made with the support of the Writers Guild of Canada and the CMPA (or the AQPM, as the case may be)", with electronic artwork to be provided by the Guild and the relevant Association;
xvi. Should the 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.
xvii. All terms of the IPA apply except as expressly modified by this Article.
C205 Optional Incentive for Feature Films over $3,000,000
a. Upon the agreement of the Producer and the Writer, and on a case-by-case basis, the Script Fee may be discounted during development by an agreed-upon percentage, but in no event more than forty per cent (40%) of the Script Fee (i.e. the Writer shall receive no less than sixty per cent (60%) of the Script Fee); and
b. When the production has been scheduled ("greenlit") for production, the Producer shall notify the Writer and the Guild and the Writer shall receive the balance of the Script Fee, and upon the first day of principal photography, the Writer shall receive an additional payment equal to the balance of the Script Fee in addition to the Production Fee. For clarity, the entire Script Fee shall be applicable against the Production Fee; however, no portion of the additional payment shall be applicable against the Production Fee.
C206 New Writer

When a Writer is contracted to write Script Material for a Feature Film with a Budget of under three million dollars ($3,000,000) and such Writer has not, at the time of contracting, previously received a writing credit on a Feature Film or more than one (1) hour of sole writing credit for dramatic Television Production, the minimum compensation set out in Article C1 (i.e. Script Fee) may be reduced by no more than fifty percent (50%), with the consent of the Writer. If the Writer has a previous writing credit on no more than one (1) Feature Film or sole writing credit on more than one (1) hour and no more than two (2) hours of dramatic Television Production, the minimum compensation set out in Article C1 may be reduced by no more than twenty-five percent (25%), with the consent of the Writer. In any case, the Production Fee shall not be reduced.

The provisions of this Article C206 may not be used in conjunction with any other discounts in C2.

C207 The provisions of this Article C2 shall not be used in conjunction with Article B3.

 

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NOVEMBER 29, 2017
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