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ARTICLE C10 - PRODUCTION FEE

ARTICLE C10 - PRODUCTION FEE

C1001 The Producer shall provide to the Guild in writing the following information, when known:

  1. when Production has been scheduled (“greenlit”) for production, and the date of commencement of principal photography as soon as such date is set;

  2. Production dates and location;

  3. Season, episode name, episode number and ISAN number (if available);

  4. when the title of the Production has changed; and

  5. the date of initial release whether it be broadcast, theatrical or video release.
C1002 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:

  1. the Notice of Intended Writing Credits in the form of Appendix F; and

  2. a letter from the completion guarantor confirming the total Certified Budget; or, if this is unavailable, a copy of the Certified Budget’s top sheet showing the total budget, in which case a letter from the completion guarantor confirming the total Certified Budget must be filed before production is complete; or

  3. a full copy of the total Non-Certified Budget (in the case of productions with no completion guarantor).
C1003

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 the following to the Guild:

  1. 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 professionally 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 C1004. If the production costs are less than the Non-Certified Budget, there shall be no refund of monies paid or payable.

  2. Within one year of the first day of principal photography, or in the case of a Series, within one year of the first day of principal photography on the final episode,an audited statement of production costs prepared by a professionally designated accountant. If the audited production costs exceed the statement of production costs provided in Article C1003 (i), the Producer shall pay any additional sums due to the Writer(s) calculated in accordance with Article C1004. If the audited production costs are less than the Non-Certified Budget or the statement of production costs provided in Article C1003 (i), there shall be no refund of monies paid or payable.
C1004

Production Fee

          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:

If the Budget is:

The Production Fee is:

0 - $100,000

$3,575 plus 3.3% of the Budget

$100,000 - $300,000

$6,875 plus 2.75% of the Budget in excess of $100,000

$300,000 - $500,000

$12,375 plus 1.1% of the Budget in excess of $300,000

$500,000 - $2,000,000

$14,575 plus 2.75% of the Budget in excess of $500,000

$2,000,000 - $10,000,000

$55,825 plus 2.2% of the Budget in excess of $2,000,000

For a Budget in excess of $10 million the Production Fee is negotiable, but the floor for such negotiation is $231,825.

Following is a table setting out examples of these payments:

PRODUCTION FEE

The following table illustrates the formula provided in Article C1004 and gives examples. For the purpose of calculating the actual Production Fee, the total Budget figure must be used.

Budget Calculations per Article C1004 Production Fee
$ 50,000 $3,575 plus 3.3% of $50,000 $5,225
$100,000 $3,575 plus 3.3% of $100,000 $6,875
$200,000 $6,875 plus 2.75% of $100,000 $9,625
$300,000 $6,875 plus 2.75% of $200,000 $12,375
$400,000 $12,375 plus 1.1% of $100,000 $13,475
$500,000 $12,375 plus 1.1% of $200,000 $14,575
$600,000 $14,575 plus 2.75% of $100,000 $17,325
$700,000 $14,575 plus 2.75% of $200,000 $20,075
$800,000 $14,575 plus 2.75% of $300,000 $22,825
$900,000 $14,575 plus 2.75% of $400,000 $25,575
$1,000,000 $14,575 plus 2.75% of $500,000 $28,325
$1,500,000 $14,575 plus 2.75% of $1,000,000 $42,075
$2,000,000 $14,575 plus 2.75% of $1,500,000 $55,825
$2,500,000 $55,825 plus 2.2% of $500,000 $66,825
$3,000,000 $55,825 plus 2.2% of $1,000,000 $77,825
$3,500,000 $55,825 plus 2.2% of $1,500,000 $88,825
$4,000,000 $55,825 plus 2.2% of $2,000,000 $99,825
$4,500,000 $55,825 plus 2.2% of $2,500,000 $110,825
$5,000,000 $55,825 plus 2.2% of $3,000,000 $121,825
$5,500,000 $55,825 plus 2.2% of $3,500,000 $132,825
$6,000,000 $55,825 plus 2.2% of $4,000,000 $143,825
$6,500,000 $55,825 plus 2.2% of $4,500,000 $154,825
$7,000,000 $55,825 plus 2.2% of $5,000,000 $165,825
$7,500,000 $55,825 plus 2.2% of $5,500,000 $176,825
$8,000,000 $55,825 plus 2.2% of $6,000,000 $187,825
$8,500,000 $55,825 plus 2.2% of $6,500,000 $198,825
$9,000,000 $55,825 plus 2.2% of $7,000,000 $209,825
$9,500,000 $55,825 plus 2.2% of $7,500,000 $220,825
$10,000,000 $55,825 plus 2.2% of $8,000,000 $231,825
If the Budget is over $10,000,000 the Production Fee is negotiable, but shall not be less than $231,825.
C1005 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.
C1006 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. 
C1007 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.
C1008 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.
C1009 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:

i) when the Writer has written 1 element (e.g. Story, Treatment) 25%
ii) when the Writer has written 2 elements (e.g. Story and Rewrite, 2 Rewrites) 50%
iii) when the Writer has written 3 elements 75%
iv) when the Writer has written 4 elements 100%

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. 

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