Printable PDF verion - Writers Guild of Canada

Printable PDF verion - Writers Guild of Canada Printable PDF verion - Writers Guild of Canada

12.07.2015 Views

) Distributors’ Gross Revenue shall also mean all monies received bythose Distributors with which the Producer has entered into adistribution agreement (the “Head Distributor”) in respect of theproduction.The Distributors’ Gross Revenue shall also include all monies receivedby sub-distributors which:i) are Related Persons to, or which do not have an arm’s lengthrelationship with, the Producer or the Head Distributor, or,ii) have an obligation to report and remit Revenue directly to theProducer or Head Distributor.c) Sale revenues (including pre-sale revenues, i.e. sales made prior toproduction) shall be included in Distributors’ Gross Revenue. A salemeans the grant, to an end user, of a licence or rights to utilize aProduction, for consideration. Distribution Advances, i.e. advancesreceived by a Producer from a Distributor, shall not be included inDistributors’ Gross Revenue for the purpose of triggering the paymentof Distribution Royalties to Writers; however, a Distributor shall not beentitled to deduct the amount of the Distribution Advance from theDistributors’ Gross Revenue for the purpose of calculating theDistribution Royalty. Monies received by Distributors pursuant toArticle C1103b) above shall be considered Distributors’ GrossRevenue whether or not the Distributor has recouped its DistributionAdvance.d) Notwithstanding the foregoing, Distributors’ Gross Revenue derivedfrom the sale or rental of Compact Devices (excluding any secondaryuse) shall be deemed to be equal to twenty percent (20%) of thewholesale selling price of such Compact Devices, provided that in theevent that the wholesale selling price is at or less than the typical sellthroughprice to wholesalers (currently $30 per unit), the deemedDistributors’ Gross Revenue shall be ten percent (10%).e) Packaging. It is acknowledged by the parties that distributors may seekto diversify their risks by packaging more successful and lesssuccessful productions. Where productions are packaged together forthe purposes of distribution, the parties shall allocate the revenue102

attributable to each individual production, subject to the right of theGuild to refer any difference to Arbitration under Article A5.f) Official Treaty Co-Productionsi) While Distributors’ Gross Revenue includes revenue from allsources on a world wide basis, in respect of Official Treaty Coproductionscertified by Telefilm Canada or by any successororganization, the Distributors’ Gross Revenue shall be:a) all those revenues derived from the distribution of the OfficialTreaty Co-production in those territories to which the Canadianco-producer is exclusively entitled to distribution revenues andhas no obligation to report or remit revenues to the foreign coproducer;b) a proportion of those revenues derived from the distribution ofthe Official Treaty Co-production in those territories in whichthe Canadian co-producer is entitled to distribution revenues onsome shared basis with its foreign co-producer, which proportionshall be equal to that proportion of revenues agreed by the coproducersto be paid to the Canadian co-producer from suchterritories (the Canadian Share). The Canadian Share shall be noless than the percentage of the total amount of the productionbudget financing derived, directly or indirectly, from anyCanadian source(s).ii) Prior to production, the Producer shall disclose the production’sstatus or intended status as an Official Treaty Co-production to theGuild and will provide the following information to the Guild:a) the name and legal status of the co-producers;b) the details of the agreement between or among the co-producersin respect of the manner in which the revenues from the OfficialTreaty Co-production will be divided between (or among) them,including details of territories to which either co-producer isexclusively entitled to distribution revenues and has noobligation to report or remit revenues to the other, and anymaterial amendments to the agreement in such respect; and103

) Distributors’ Gross Revenue shall also mean all monies received bythose Distributors with which the Producer has entered into adistribution agreement (the “Head Distributor”) in respect <strong>of</strong> theproduction.The Distributors’ Gross Revenue shall also include all monies receivedby sub-distributors which:i) are Related Persons to, or which do not have an arm’s lengthrelationship with, the Producer or the Head Distributor, or,ii) have an obligation to report and remit Revenue directly to theProducer or Head Distributor.c) Sale revenues (including pre-sale revenues, i.e. sales made prior toproduction) shall be included in Distributors’ Gross Revenue. A salemeans the grant, to an end user, <strong>of</strong> a licence or rights to utilize aProduction, for consideration. Distribution Advances, i.e. advancesreceived by a Producer from a Distributor, shall not be included inDistributors’ Gross Revenue for the purpose <strong>of</strong> triggering the payment<strong>of</strong> Distribution Royalties to <strong>Writers</strong>; however, a Distributor shall not beentitled to deduct the amount <strong>of</strong> the Distribution Advance from theDistributors’ Gross Revenue for the purpose <strong>of</strong> calculating theDistribution Royalty. Monies received by Distributors pursuant toArticle C1103b) above shall be considered Distributors’ GrossRevenue whether or not the Distributor has recouped its DistributionAdvance.d) Notwithstanding the foregoing, Distributors’ Gross Revenue derivedfrom the sale or rental <strong>of</strong> Compact Devices (excluding any secondaryuse) shall be deemed to be equal to twenty percent (20%) <strong>of</strong> thewholesale selling price <strong>of</strong> such Compact Devices, provided that in theevent that the wholesale selling price is at or less than the typical sellthroughprice to wholesalers (currently $30 per unit), the deemedDistributors’ Gross Revenue shall be ten percent (10%).e) Packaging. It is acknowledged by the parties that distributors may seekto diversify their risks by packaging more successful and lesssuccessful productions. Where productions are packaged together forthe purposes <strong>of</strong> distribution, the parties shall allocate the revenue102

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