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ARTICLE C10 – PRODUCTION FEE

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.

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 or government agency in the form of Appendix K, or government documentation such as the CAVCO Part A, provincial advance ruling certificate or, in the case of an Official Treaty Co-Production, Telefilm Canada advance ruling, 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 or government agency, or government documentation as set forth above, 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 or government agency involvement).
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 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.
C1004

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 Writer shall not receive a Production Fee or a credit for such new writing.

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.

C1005

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 - $60,000 Negotiable
$60,000 - $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
$10,000,000 - $13,000,000 $231,825 plus 2% of the Budget in excess of $10,000,000

For a Budget in excess of $13 million the Production Fee is negotiable, but the floor for such negotiation is $291,825.

Following is a table setting out examples of these payments:

PRODUCTION FEE
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.

Budget Calculations per Article C1005 Production Fee
0 - $ 60,000 Negotiable Negotiable
$ 60,000 $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 $100,00 $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
$10,500,000 $231,825 plus 2% of $500,000 $241,825
$11,000,000 $231,825 plus 2% of $1,000,000 $251,825
$11,500,000 $231,825 plus 2% of $1,500,000 $261,825
$12,000,000 $231,825 plus 2% of $2,000,000 $271,825
$12,500,000 $231,825 plus 2% of $2,500,000 $281,825
$13,000,000 $231,825 plus 2% of $3,000,000 $291,825
If the Budget is over $13,000,000 the Production Fee is negotiable, but shall not be less than $291,825.
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.
C1010

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:

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