Common use of Submission of Final Cost Statement Clause in Contracts

Submission of Final Cost Statement. No later than sixty (60) days after the completion of the answer print or eighteen (18) months after wrap of principal photography, whichever comes first, Employer shall submit to the DGA a statement of all actual costs incurred in connection with the production of the Picture (i.e., those costs commonly referred to as the “negative cost”) that are not properly excluded from the Budget, as detailed in the first paragraph above (the “Final Cost Statement”). The DGA shall have the right to review and audit records relating to the cost of the Picture. The DGA shall have six (6) months from the date of receipt of the Final Cost Statement to notify Employer of a challenge or claim concerning the appropriate Level for the Picture. After said six (6) month period, the DGA shall be deemed to have waived the right to challenge the Budget or Level of production cost of the Picture. Costs incurred on account of force majeure events, default or disability of major talent, government action, or reshooting due to faulty negative caused by technical problems outside of Employer’s control shall not be counted toward the actual costs. If the actual final production cost of the Picture exceeds the Budget approved by the DGA by more than the budgeted contingency and such actual final production cost causes the Picture to have a Budget higher than its original Level, then the Picture shall be reclassified into such higher Level, the provisions applicable to the higher Level shall apply, and all salaries and other terms shall be adjusted accordingly and paid within thirty (30) days after submission of the Final Cost Statement. The currency rate in effect on the earlier of the date the bank financing for the Picture closes, or the start of principal photography, will be used for purposes of determining the Budget, and the final cost, of the Picture. For any Director assigned to the Picture, Employer shall use a deal memorandum in content and form substantially as set forth in Exhibit A attached to this Sideletter. For any Unit Production Manager and Assistant Director assigned to the Picture, Employer shall use a deal memorandum in content and form substantially as set forth in Exhibit B attached to this Sideletter.

Submission of Final Cost Statement. No later than sixty (60) days after the completion of the answer print or eighteen (18) 18 months after wrap of principal photography, whichever comes first, Employer shall submit to the DGA a statement of the Final Cost Statement. The Final Cost Statement shall include all actual costs incurred in connection with the production of the Picture picture (i.e., i.e. those costs commonly referred to as the “negative cost”) that which are not properly excluded from the Budget, as detailed in the first paragraph above (the “Final Cost Statement”)immediately above. The DGA shall have the right to review and audit records relating to the cost of the Picturepicture. The DGA shall have six (6) months from the date of receipt of the Final Cost Statement to notify Employer of a challenge or claim concerning the appropriate Level for of production cost of the Picturepicture. After said six (6) month period, the DGA shall be deemed to have waived the right to challenge the Budget budget, or Level of production cost of the Picturepicture. Costs incurred on account of force majeure events, default or disability of major talent, government action, or reshooting due to faulty negative caused by technical problems outside of Employer’s control Employers control, shall not be counted toward the actual costsproduction cost. If the actual final production cost of the Picture picture exceeds the Budget approved by estimated cost, as represented in the DGA budget submitted to the DGA, by more than the budgeted contingency of not more than ten percent (10%), and such actual final production cost causes the Picture picture to have fall within a Budget Level, as defined below, higher than its original Level, then the Picture picture shall be reclassified into such higher Level, in which event the provisions applicable to the higher Level shall apply, apply and all salaries and other terms shall be adjusted accordingly and paid within thirty (30) days after submission of the Final Cost Statement. The currency rate in effect on the earlier of the date the bank financing for the Picture picture closes, or the start of principal photography, will be used for purposes of determining the Budgetbudget, and the final cost, of the Picturepicture. I. Level 1. For any Director assigned Any motion picture, the budget of which is equal to or less than $1,100,000, shall be deemed a covered motion picture and the employment of Employees shall be subject to the Picture, Employer shall use provisions applicable to a deal memorandum in content and form substantially as set forth in Exhibit A attached to this Sideletter. For any Unit Production Manager and Assistant Director assigned to the Picture, Employer shall use a deal memorandum in content and form substantially as set forth in Exhibit B attached to this Sideletter.Level 2 motion picture except:

Submission of Final Cost Statement. No later than sixty (60) days after the completion of the answer print or eighteen (18) months after wrap of principal photography, whichever comes firstprint, Employer shall submit to the DGA a statement of the Final Cost Statement. The Final Cost Statement shall include all actual costs incurred in connection with the production of the Picture picture (i.e., i.e. those costs commonly referred to as the “negative cost”) that which are not properly excluded from the Budget, as detailed in the first paragraph above (the “Final Cost Statement”)immediately above. The DGA shall have the right to review and audit records relating to the cost of the Picturepicture. The DGA shall have six (6) months from the date of receipt of the Final Cost Statement to notify Employer of a challenge or claim concerning the appropriate Level for of production cost of the Picturepicture. After said six (6) month period, the DGA shall be deemed to have waived the right to challenge the Budget budget, or Level of production cost of the Picturepicture. Costs incurred on account of force majeure events, default or disability of major talent, government action, or reshooting due to faulty negative caused by technical problems outside of Employer’s control Employers control, shall not be counted toward the actual costsproduction cost. If the actual final production cost of the Picture picture exceeds the Budget approved by estimated cost, as represented in the DGA budget submitted to the DGA, by more than the budgeted contingency of not more than ten percent (10%), and such actual final production cost causes the Picture picture to have fall within a Budget Level, as defined below, higher than its original Level, then the Picture picture shall be reclassified into such higher Level, in which event the provisions applicable to the higher Level shall apply, apply and all salaries and other terms shall be adjusted accordingly and paid within thirty (30) days after submission of the Final Cost Statement. The currency rate in effect on the earlier of the date the bank financing for the Picture picture closes, or the start of principal photography, will be used for purposes of determining the Budgetbudget, and the final cost, of the Picturepicture. I. Level 1. For any Director assigned Any motion picture, the budget of which is equal to or less than $1,100,000, shall be deemed a covered motion picture and the employment of Employees shall be subject to the Picture, Employer shall use provisions applicable to a deal memorandum in content and form substantially as set forth in Exhibit A attached to this Sideletter. For any Unit Production Manager and Assistant Director assigned to the Picture, Employer shall use a deal memorandum in content and form substantially as set forth in Exhibit B attached to this Sideletter.Level 2 motion picture except: