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Residuals for Made-for-Theatrical Motion Pictures

(Example 1)

Residuals due for made-for-theatrical motion pictures are revenue based. The residuals due the writer are 1.2% of the distributor's gross receipts, except for residuals due for videocassette usage which are calculated at a slightly higher percentage of the producer's gross receipts. Residuals for made-for-theatrical projects are allocated as follows: "Written by"--100%; "Screenplay by" (if a "Story by" or "Screen Story by" credit is accorded)--75%; "Story by" or "Screen Story by"--25%. In general, if no form of "Story by" credit is accorded, 100% goes to the writer(s) receiving "Screenplay by" credit.

The following are the percentages and the due dates for each type of residual compensation payable for a made-for-theatrical motion picture.

Reuse Market Residual Payment Owed & Due Date
Theatrical No residuals are due for worldwide theatrical release, including in-flight, which is covered under the initial compensation.
Free Television 1.2% of distributor's gross receipts for worldwide free television reuse. For network television reuse, residuals are due within 30 days of the Company's receipt of payment from the network. For syndicated or foreign television reuse, residuals are due within 60 days of the end of the quarter in which gross receipts or licensing fees are received by the Company.
Pay Television 1.2% of distributor's gross receipts for worldwide reuse. Residuals are due within 60 days of the end of the quarter in which gross receipts or licensing fees are received by the Company.
Videocassette and DVD For theatrical projects that commenced production on or before February 28, 1985: 1.2% of the Company's reportable gross. For theatrical projects that commenced production after February 28, 1985: 1.5% of the first million dollars of the Company's reportable gross (or "producer's gross"); 1.8% thereafter. Residuals are due within 60 days of the end of the quarter in which gross receipts or licensing fees are received by the Company.
Basic Cable 1.2% of distributor's gross receipts for worldwide reuse. Residuals are due within 60 days of the end of the quarter in which gross receipts or licensing fees are received by the Company.

DVD Script Publication Fee

Effective May 2, 2001, upon the final determination of writing credits by the Guild, the credited writer(s) of a theatrical motion picture shall receive payment, in the aggregate, of $5,000. This "DVD script publication fee" gives the Company the right to publish the script on DVD, and is due regardless of whether the Company elects to exercise such right. The payment of the script publication fee and/or the exercise of the script publication right does not in any way affect any other rights held by a writer entitled to Separation of Rights in the motion picture, including other publication rights.

Payment is due within 30 days of the final determination of credits by the Guild.