Agreement - Writers Guild of Canada

of the Producer. At the Producer’s election, the security for payment may
take the form of one or more irrevocable letters of credit in favour of the
Guild, drawn on a Canadian chartered bank. The face of the letter of credit
shall specify that:
i) the Guild shall be entitled, upon written notice to the Producer, to
draw down on the letter of credit. The letter shall stipulate the amount
claimed and that such amount is due to the Guild as a result of default
by the Producer of its payment obligations as specified in the
Agreement;
ii)
the said letter of credit shall have a term commencing not sooner than
thirty (30) days prior to the commencement of principal photography
and terminating at a mutually agreed date after the completion of
principal photography;
iii) in the event of a dispute involving outstanding payments due under
the Agreement, the Producer agrees to reissue a letter of credit or to
post a bond in an amount equal to those amounts in dispute for as
long as those amounts remain in dispute; and
iv) when a bona fide dispute arises, all remedies and recourses provided
by this Agreement shall be exhausted, or an Arbitrator shall rule in
favor of the Writer prior to any disbursement from the Security
Payment.
A1002 The provisions of A1001 (iii) and (iv) shall apply equally to a bond.
A1003 Notwithstanding Article A1001, an Established Producer as defined herein
shall not be required to post as security a cash deposit, letter of credit or
bond, but shall instead be entitled to provide to the Guild a corporate
guarantee in the form provided in Appendix V.
A1004 An Established Producer shall mean a Producer:
i) whom the CMPA or APFTQ confirms by written notice to be a
member in good standing;
ii) who has maintained an active production entity with established
offices and staff for the previous four years, and has engaged Guild
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