2009 ARIZONA REGIONAL COMMERCIALS CONTRACT

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1 2009 ARIZONA REGIONAL COMMERCIALS CONTRACT Commercials Arizona Regional Agreement of 18

2 (This Page Intentionally Left Blank) Commercials Arizona Regional Agreement of 18

3 SECTION A - GENERAL CONDITIONS 1. JURISDICTION The 2009 Arizona Regional Commercials Contract shall apply to commercials produced within Arizona and exhibited within Arizona. 2. TERM OF AGREEMENT The expiration date of this Regional Commercials Contract will coincide with the dates of expiration of the Screen Actors Guild/American Federation of Television and Radio Artists 2009 TV Commercials Contract and the American Federation of Television and Radio Artists 2009 Radio Commercials Contract, March 31, This Regional Commercials Contract may be extended at the discretion of SAG-AFTRA on a day-today basis until a new Regional Commercials Contract can be negotiated and agreed upon. 3. EFFECTIVE DATE This Agreement shall become effective as of April 1, 2009 and shall apply to all commercials made during its term whenever exhibited but not to commercials made prior to its effective date. 4. TERMS AND CONDITIONS NOT COVERED It is understood that terms and conditions not set forth in this Code shall be specified in the applicable AFTRA or Screen Actors Guild National Codes. It is further understood and agreed that any and all signatories to this Regional Commercials Contract are also bound to abide by the applicable AFTRA and Screen Actors Guild National Codes with regard to rules, rates, terms and conditions for all performances outside the jurisdiction of this Agreement. 5. COMPENSATION A. The Performers shall be paid the agreed session fee not later than fifteen (15) working days after each performance. Additional payments required because of upgrading (adding additional cities, etc.) during any cycle shall be made no later than fifteen (15) working days after the end of such cycle. B. Payments required by any "mechanical" utilization of Performers services, or creation of new or additional commercials, shall be made not later than fifteen (15) working days after the date of first use. Payment of re-use fees shall be made not later than fifteen (15) working days after the commencement of each subsequent cycle. C. Holding Fees (Television Principals Only). See Section 31(B). D. All talent checks shall be individual checks made payable to the Performer entitled thereto and shall be mailed to the SAG-AFTRA office for recording and distribution. A copy of the Employment Contract and an information voucher shall be attached to each check which shall contain complete information identifying commercials, advertiser, cycle dates and number of sessions. Producer/Advertising Agency shall maintain records showing the Advertiser for whom it was made, names of the Performers employed therein, the amount of the agreed daily wage or session fee, the date(s) Performer's services were rendered, and the number of commercials for which payment is required. 6. CONTRIBUTIONS TO HEALTH & RETIREMENT / PENSION & HEALTH The Producer shall make a contribution to the AFTRA Health and Retirement Fund, the AFTRA Individual Account Plan, and the AFTRA Industry Cooperative Fund or the Screen Actors Guild-Producers Pension and Health Plans and the Screen Actors Guild/Producers Industry Advancement and Cooperative Fund in the total amount of 15.5% of the total gross compensation paid to Performers, in accordance with Paragraph 65 of the 2009 AFTRA Radio Recorded Commercials Contract, Section IV, Paragraph 46 of the 2009 AFTRA Television Recorded Commercials Contract, and Paragraph 46 of the Screen Actors Guild 2009 Commercials Contract and which are hereby incorporated herein by reference. Commercials Arizona Regional Agreement of 18

4 7. LIQUIDATED DAMAGES FOR LATE PAYMENT In the event Producer/Advertising Agency fails to make timely payments, as herein provided, cumulative penalty payments shall be due and payable to the Performer for each day, beginning with the day following the date of default. The provisions of the applicable National AFTRA or Screen Actors Guild Commercial Codes regarding liquidated damages for late payment are deemed to be incorporated herein and made a part of the Arizona Regional Commercials Code. 8. EMPLOYMENT CONTRACT/PRODUCTION & USE REPORTS/INVOICE Producer/Advertising Agency agrees to provide to the Performer (or his talent agent) no later than the first date of production an employment contract for work performed under this code. It shall be the responsibility of the Producer/Advertising Agency to fill in all blanks on the contract (except those referred to on the form as the time report) and to submit the contract to the Performer (or his talent agent) prior to production. Once the work is finished, the time report portion of the contract should be completed, and then initialed by both the Performer and Employer to verify its accuracy. The Performer shall then be given the copy he must file with SAG-AFTRA along with the copy for his agent and the one he retains for his records. In the event that the Producer/Advertising Agency fails to allow the Performer to retain the appropriate copies of his contract as herein provided, the producer agrees to pay the Performer $10.00 to be added to the session fee. The Producer/Advertising Agency is responsible for retaining two (2) copies which shall be used, respectively, as a Pension & Health report and an invoice for talent payment. Note: No other invoice shall be sent to the Producer/Advertising Agency for services rendered. Producer/Advertising Agency agrees to furnish SAG-AFTRA with production and use reports advising SAG-AFTRA whenever any commercial is re-used, requiring an additional payment. Such continuing reports shall specify the use during the current cycle, and any dubbing or editing or any other change for which additional fees are due hereunder. The furnishing of the standard Pension & Health report form shall satisfy this requirement. 9. THEATRICAL OR INDUSTRIAL EXHIBITIONS If Producer/Advertising Agency desires to use a commercial for theatrical or industrial exhibition, the individual principal performer s contract shall contain a provision requiring additional compensation for such right of not less than 100% of the applicable session fee for all categories of principal performers payable when such exhibition occurs and shall constitute payment for 30 consecutive days following the first exhibition. An additional 50% of the applicable session fee shall be payable for any additional use which occurs beyond the 30 th day. Such payments shall cover all such use within a single period of maximum use as defined in the section entitled A Maximum Period of Use of Commercials in the National AFTRA and Screen Actors Guild National Commercials Contracts. Separate additional fees in such amounts shall be payable for theatrical or industrial exhibition for each renewal period during which the commercial is used hereunder. Notwithstanding the foregoing, no payment shall be required for use of commercials at toy fairs which are not open to the general public if the principal performer has been paid not less than the minimum scale rates of pay. Principal performers in Non-Air Commercials shall be paid the difference between the non-air rate and session fee. 10. ARBITRATION It is understood that, by mutual consent of the parties, disputes may be submitted to the INDUSTRY - SAG-AFTRA COOPERATIVE COMMITTEE, the 4A's BROADCAST ADMINISTRATION POLICY COMMITTEE or THE INDUSTRY UNION STANDING COMMITTEE for resolution. However, if this remedy fails or should either party deem it advisable, disputes and controversies shall be submitted to arbitration under the Voluntary Labor Arbitration Rules of the American Arbitration Association. All disputes and controversies of every kind and nature whatsoever between any Producer/Advertising Agency and SAG-AFTRA or between any Producer/Advertising Agency and any Performer arising out of, or in Commercials Arizona Regional Agreement of 18

5 connection with, this Contract, and any contract or engagement (whether overscale or not, and whether at the minimum terms and conditions of this Contract or better) in the field covered by this Contract as to the existence, validity, construction, meaning, interpretation, performance, non-performance, enforcement, operation, breach, continuance, or termination of this Contract and/or such contract or engagement shall be submitted to arbitration in accordance with the following procedure: A. SAG-AFTRA acting on its own behalf or on behalf of any person employed under this Contract, or the Producer/Advertising Agency concerned, may demand such arbitration in writing. Selection of a single arbitrator shall be made from the Labor Panel of the American Arbitration Association according to the procedures set forth in the Voluntary Labor Arbitration Rules. Each party shall bear his own arbitration expenses. B. The hearing shall be held on two days' notice and shall be concluded within fourteen (14) days unless otherwise ordered by the arbitrator. The award of the arbitrator shall be made within seven (7) days after the close of the submission of evidence. The award shall be final and binding upon all parties to the proceeding during the period of this Contract, and judgement upon such award may be entered by any party in the highest court of the forum, state or federal, having jurisdiction. C. The words "Producer/Advertising Agency" as used in this Contract includes any third person to whom a commercial has been sold, assigned, transferred, leased or otherwise disposed of. Any Producer/Advertising Agency including such third party "Producer/Advertising Agency may file with SAG- AFTRA the name and address of an available person in the Phoenix area upon whom service of a demand for arbitration and other notices and papers under this paragraph made be made. If such name and address is not available, the Producer/Advertising Agency irrevocably appoints the Secretary of the American Arbitration Association as his agent to accept service and receive all notices, demands for arbitration and service of process in actions on the award in any suit by SAG-AFTRA or SAG-AFTRA members. Producer/Advertising Agency further agrees that such notices, demands for arbitration and other process of papers may be served on the foregoing persons by registered mail sent to their last known address with the same force and effect as if the same had been personally served. D. The parties that the provisions of this paragraph and awards made pursuant to this paragraph shall be a complete defense to any suit, action or proceeding instituted in any federal, state or local court or before any administrative tribunal with respect to any controversy or dispute which arises during the period of this Contract and which is therefore arbitrable as set forth above. The arbitration provisions of this agreement shall, with respect to such controversy or dispute, survive the termination or expiration of the Contract. E. SAG-AFTRA shall be an ex-officio party to all arbitration proceedings hereunder in which any artist is involved and may do anything which an artist named in such proceeding might do. Copies of all notices, demands, and other papers filed by any party in arbitration proceedings and copies of all motions, actions or proceedings in court following the award, shall be promptly filed with SAG-AFTRA. F. Nothing herein contained shall be deemed to give the arbitrators the authority, power or right to alter, amend, change, modify, add to or subtract from any of the provisions of this contract. G. It is the policy of SAG-AFTRA not to process unduly late claims. 11. UNION SECURITY The Union Security provisions contained in the applicable National AFTRA and Screen Actors Guild Agreements shall be deemed effective under this Regional Commercials Code except as such Agreement may conflict with state law prohibiting application of a union shop. This Agreement shall be deemed amended to provide that a covered employee who is not a member of SAG-AFTRA is liable to SAG-AFTRA for the actual costs incurred by SAG-AFTRA in representing the employee in any grievance process in behalf of the employee if, and to the extent, authorized by legislation which may be hereafter enacted by the Legislature of the State of Arizona. 12. UNFAIR PRODUCER/ADVERTISING AGENCY The Producer/Advertising Agency agrees that it has notice that this Regional Commercials Contract represents the minimum terms and working conditions covering employment of Performers in radio, television Commercials Arizona Regional Agreement of 18

6 and cable commercials. Any Producer/Advertising Agency engaging Performers in this field, who breaches or violates the conditions of this Contract, may be regarded as unfair, and Performers may be instructed not to work for anyone who is unfair. This paragraph is an acknowledgment of the Producer/Advertising Agency of the facts stated in this paragraph and as such goes no further. 13. LABOR RELATIONS CONTACT Each signatory hereto shall advise SAG-AFTRA of its labor relations contact to whom claims, notices and other matters may be addressed. 14. INDUSTRY - SAG-AFTRA COOPERATIVE COMMITTEE There shall be an INDUSTRY - SAG-AFTRA COOPERATIVE COMMITTEE formed for the purpose of negotiating the Arizona Regional Commercials Contract and to meet from time to time upon the request of either party. The Committee shall have the following non-binding functions: 1. To discuss, investigate and make recommendations as to the solution of problems arising in the construction, interpretation and administration of this Agreement, and as to any abuses or grievances, which arise during the term hereof affecting the Performer-Producer/Advertising Agency relationships generally and for which no remedy is provided hereunder. 2. To make every effort to prevent and remedy abuses arising under this Agreement; to eliminate tensions; to promote cooperation and to assist in the mutual understanding of the problems of the Performer-Producer/Advertising Agency relationships. 15. COST OF LIVING INCREASE If at any time during the effectiveness of this Agreement, a cost of living increase becomes effective under the National Commercials Code of AFTRA and/or Screen Actors Guild, the signatory hereto agrees to increase the Regional Commercial Rates in an amount equal to the same percentage of increase as under the National Codes, to be effective simultaneously with such National SAG-AFTRA cost of living increase. SECTION B - WORKING CONDITIONS 16. WORK DAY A. On-Camera (TV) All scales are based on an eight-hour consecutive work day, excluding the meal period. The work day may be extended to 10 (ten) hours without overtime pay, if the Performer is paid for two commercials that day. B. Off-Camera (Radio & TV) Sessions for radio Performers shall be 90 minutes; two hours for TV voice-over. 17. OVERTIME A. Performers shall receive time and one-half for the first two hours of overtime where applicable. Any additional overtime shall be paid at double time. Overtime will be paid in half-hour units. B. Except as otherwise herein provided, makeup, hairdress, wardrobe or fittings shall be work time for all purposes including overtime. 18. ENGAGEMENTS A. Notice of call: The Performer, Agent or Representative, shall have notice, at time of employment, if the part to be played is principal or extra, the place of the performance, and place of rehearsal. Commercials Arizona Regional Agreement of 18

7 B. When a Performer is engaged and not used for any reason other than his default, illness, or other incapacity, he shall be entitled to one day's salary or his guarantee, whichever is greater. C. A Performer shall be considered definitely engaged in any of the following events: 1. When the Performer is given written notice of acceptance. 2. When a form contract signed by the Producer/Advertising Agency is delivered to the Performer or when a form contract unsigned by the Producer/Advertising Agency is delivered to a Performer and is executed by Performer and returned to Producer/Advertising Agency within fortyeight (48) hours. 3. When a script is delivered to the Performer; however this does not include delivery of a script for a test, audition or interview, nor the submission of a script for the purpose of permitting the Performer to see if he desires the engagement. 4. When the Performer is fitted; this shall not apply to wardrobe tests. 5. When the Performer is given a verbal call which he accepts. 6. When the Performer is told he will be used but no date is set. 7. When the Performer is told not to accept an engagement for a commercial advertising a competitive product or service. D. Neither auditions nor interviews shall constitute an engagement. 19. INTERVIEWS, AUDITIONS, CALL-BACKS A. The Producer/Advertising Agency agrees to adhere to a policy of initiating an interview, audition or call-back within a period of one hour from Performer's time of call or arrival, whichever is later. Producer/Advertising Agency shall furnish "sign in" sheets for the purpose of recording the Performer's time of arrival. B. Time spent beyond one hour awaiting an interview, audition or call-back will be paid at straight time in half-hour units. C. If an audition is videotaped or filmed, it is agreed that such videotape or filmed audition shall be used only to determine the suitability of the Performer for a specific commercial. 20. CANCELLATIONS DUE TO WEATHER A. Cancellations due to weather are permitted up to 8:00 P.M. of the day prior to the call without penalty. The Performer must have been notified at the time the call was placed that this was a weatherpermitting call. B. If the above conditions are met by the Producer/Advertising Agency, the Performer is entitled to no compensation for the canceled call. Cancellations not meeting the conditions provided in Paragraph A of this Section will require payment to Performer of one-half the agreed daily rate. However, if the engagement is rescheduled and production is commenced, to a mutually acceptable time, within seven (7) calendar days from the date of the cancellation, no penalty will be assessed. C. When Performer's work day has begun and weather causes cancellation of part of the work day, the Performer shall be paid the agreed daily wage. D. If the Performer is on an overnight location and any of the scheduled shooting days are canceled, the Performer shall be compensated at one-half his agreed daily wage. 21. WEATHER PERMITTING CALLS Commercials Arizona Regional Agreement of 18

8 Weather permitting calls are allowable for principal performers subject to the following limitation and conditions: A. Weather permitting calls shall not be issued for stages in studios. B. A principal performer receiving two times the session fee per commercial per day or less shall be paid a half-check upon the cancellation of any weather permitting call. This check shall entitle the Producer to hold the principal performer for not exceeding four (4) hours. The principal performer shall receive a halfcheck for each additional four (4) hours, or portion thereof, during which he/she is held by the Producer. During this waiting period the Producer has the privilege of putting principal performers into costumes, rehearsing, or making other use of their services. If however, any recording or photographing is done, whether still pictures or otherwise, the principal performer shall be paid the agreed daily wage. C. Weather permitting calls may not be issued to a principal performer after the commencement of photography, and the fact that a weather permitting call or calls have been issued before the commencement of photography shall not cause the consecutive employment provisions of these rules to come into effect. D. At the time of acceptance by a principal performer of a weather permitting call, the principal performer shall advise Producer of any possible conflict for immediately subsequent days. 22. REHEARSAL TIME A. The reading of lines, acting, singing or dancing, in preparation for the Performer's performance, in the presence and under the supervision of a representative of the Producer/Advertising Agency, constitutes a rehearsal. Rehearsals on the day of production shall be considered work time for all purposes including overtime. B. Performer required to rehearse under the supervision and the direction of the Producer/Advertising Agency, on a day other than the day of shooting, shall be compensated at no less than one-half the minimum session fee for up to and including four (4) hours of work and no less than one minimum session fee for work beyond four (4) hours up to and including eight (8) hours of work. 23. MEAL PERIODS A. Allowable meal periods shall not be counted as work time for any purpose. The Performer's first meal period shall commence within six (6) hours following the time of his first call for the day; succeeding meal periods of the same Performer shall commence within six (6) hours after the end of the preceding meal period. A meal period shall not be less than one-half nor more than one hour in length. If, upon the expiration of such six (6) hour period, the camera is in the actual course of photography, it shall not be a violation to complete such photography. B. The penalty for meal period violations shall be: 1st ½ hour 2nd ½ hour 3rd ½ hour Each additional ½ hour $25.00 each Performer/each violation $25.00 each Performer/each violation $50.00 each Performer/each violation $50.00 each Performer/each violation 24. REST PERIOD A. The Performer shall be entitled to a twelve (12) hour consecutive rest period from the time he is finally dismissed until his first call thereafter, whether for makeup, wardrobe, hairdress or any other purpose. However, where the Producer/Advertising Agency is photographing on a location and exterior photography is required, the twelve (12) hour rest period may be reduced to ten (10) hours, but such reduction may not again be allowed unless a day without such reduction intervenes. The reduction to ten (10) hours in the circumstances described applies only if both of the days between which the rest period intervenes are spent on location. B. The penalty for violations of the rest period shall be payment at the rate of $25.00 per Performer for each violation. Commercials Arizona Regional Agreement of 18

9 C. Singers shall be given a five (5) minute rest period in each hour of recording. All on-camera Performers shall be given a five (5) minute rest period in each hour of photography. 25. SATURDAY AND SUNDAY WORK For work on Saturday, the Performer shall receive time and one-half. If work on Saturday is necessary by reason of difficulty in obtaining access to the object or place (such as a public building) to be photographed, the union will not unreasonably withhold the granting of a waiver of the premium pay required under this provision. For work on Sunday, the Performer shall receive double time. 26. WORK ON HOLIDAYS If a performer works on any of the following holidays: New Year's Day, Martin Luther King, Jr.'s Birthday, President's Day (formerly Washington's Birthday), Memorial Day, July Fourth, Labor Day, Thanksgiving Day or Christmas, Performer shall receive double time. 27. TRAVEL A. If a Performer is requested by a Producer/Advertising Agency to travel in his/her own car over thirty-five (35) miles each way to and from location, he/she shall be paid pursuant to the rate per mile indicated in the National SAG-AFTRA Commercials Contract from his/her own point of departure or the Producer's studio, whichever is less. B. Transportation and lodging furnished: Reasonable lodging and meals must be provided on overnight locations. Not less than regularly scheduled (coach) transportation must be provided except where "commuter service" is the sole means of transportation available. C. Travel to and from location, no services rendered: Travel to and from location on a day when no services of the Performer are rendered shall be paid for at straight time, with a one-hour minimum. Additional time shall be paid in half-hour units. D. Travel to and from location, services rendered: All overtime to the extent same is caused by travel time, whether at the beginning or end of the day, shall be paid for at straight time during the Performer's work day, computed in half-hour units. E. Flight Insurance: Where a Performer is requested by Producer/Advertising Agency to travel by plane, Producer/Advertising Agency shall pay the Performer an additional fee of $10.00 for flight insurance. 28. FITTINGS, WARDROBE TESTS AND CHECKS, MAKEUP TESTS Time spent by Performer in fittings, wardrobe tests, wardrobe checks, and makeup tests shall be paid for as follows: A. Fittings, checks and tests on the same day that the Performer works: Time spent in such fittings, checks and tests shall be work time and part of the Performer's continuous day. B. Fittings, checks and tests on a day prior to work: Where a Performer is fitted, checked or tested on a day prior to the day on which we works, he shall be entitled to one-hour minimum pay for each call. Additional time shall be paid at straight time in half-hour units. Principal performers receiving more than two times the session fee per commercial per day shall not be entitled to any compensation for such fittings. 29. MAKEUP, HAIRDRESS, WARDROBE AND WARDROBE ALLOWANCES A. Where the Performer has reported pursuant to a call for makeup, hairdress or wardrobe, the time so spent shall be work time. B. If an on-camera Performer is required by Producer to furnish any special hairdress necessitating an expenditure, Producer shall either furnish such hairdress or the Performer shall be reimbursed for the amount so expended at facilities designated by the Producer. Commercials Arizona Regional Agreement of 18

10 C. Where makeup, other than ordinary street makeup, is required by Producer, a makeup artist shall be provided for the purpose of applying the maintaining such makeup. D. On-Camera Performers, who supply specified personal wardrobe worn during rehearsal or production, shall receive a maintenance fee for such wardrobe at the following rates: 1 Day 2 or more Days Non-Evening Wear $15.00 per change $12.50 per change/per day Evening Wear $25.00 per change $20.00 per change/per day 30. DRESSING ROOMS Producer/Advertising Agency shall provide clean and accessible dressing rooms and toilet facilities in studios and on locations. Such dressing rooms shall be provided with adequate locks, or Producer/Advertising Agency shall provide facilities for checking normal personal belongings. SECTION C - PAYMENTS 31. RE-USE The maximum period of use of any commercial shall be no longer than twenty-one (21) consecutive months. A. 13-week Cycles Consecutive 13-week cycles of use are payable at no less than 100% of the Performer's commercial base rate as set forth in the individual talent contract, which base rate shall not be less than scale. B. Holding Fees (Television Principals Only) Every 13 weeks after the date of the original session a Performer shall be paid a holding fee as a condition to Producer's/Advertising Agency's right to retain the right to exclusivity of the Performer and the right to continued use of such commercial. The session fee shall be deemed the holding fee payable for the first fixed cycle. Such holding fee may be credited against use fees incurred in the first cycle of use, provided that payment has been made in accordance with the provisions of Section A, above. Only one on or offcamera session fee may be so utilized as a holding fee to be credited against use per commercial. Subsequent holding fees, equal to the 13-week rate of the applicable zone, shall be due for each consecutive 13-week period the commercial is not used, continuing for as long as the commercial is not used, continuing for as long as the commercial remains unaired. If the Performer fails to receive a holding fee by the date payment is due, the Performer shall be considered released. Payment for holding cycles will be due no later than 15 working days from the beginning of each cycle. The Producer/Advertising Agency agrees to provide information regarding the status of commercials within five (5) working days from the receipt of a written request. Failure to respond within five (5) working days will constitute a release for Performers to accept employment in commercials advertising competitive products. In the event a commercial is aired in a cycle for which a holding fee has previously been paid, the holding fee may be applied against use fees required. C. One-year Prepaid Use 1. Producer/Advertising Agency may elect to make an advance payment of the applicable one-year prepaid use fee guaranteeing the exclusivity of the Performers for one (1) year from the date of initial use of the commercial, provided the commercial is placed on the air within thirty (30) days Commercials Arizona Regional Agreement of 18

11 from the date of employment. Said payment, at no less than the rates specified under Paragraph 41, Commercial Fees, (see rate page), shall grant the use of the commercial for a full twelve (12) months. 2. Performer must be notified no later than fifteen (15) working days after the session of Producer's/Advertising Agency's intentions to utilize the one-year prepaid provision. 3. Not more than sixty (60) days and not less than thirty (30) days prior to the end of the prepaid year, the Performer shall have the right to request in writing the status and intended use of a commercial which has been prepaid for a year pursuant to this provision. Producer/Advertising Agency agrees to respond within fifteen (15) working days in writing indicating that further use is in fact intended or that Performer is thereby released from any further exclusivity with respect to such commercials. In the event the Producer/Advertising Agency fails to respond within the designated period, Performer will be considered released and free to accept work for a competitive product. 4. If, during a 13-week cycle of use, the Producer/Advertising Agency so elects, it may implement this Provision for a period of one (1) year following the completion of the use cycle in progress. In such event, there shall be no crediting of compensation payable for the cycle in progress. 5. Subsequent one (1) year prepaid use Agreement shall be subject to the written consent of the performer not more than sixty (60) days or less than thirty (30) days prior to the anniversary date of the first use of the commercial. Payment for subsequent one-year prepaid use Agreement shall be at no less than the minimum one-year prepaid use rates then in effect. 6. In the event a commercial which has been paid under the one (1) year prepaid use rate is up-graded to national use, full crediting of the year fee may be made against the national fees. 7. When a Performer is employed for more than one day in a commercial intended for one (1) year use under this provision, he shall be paid no less than the one-year prepaid use fee for the first day and the regular 13-week session fee for each additional day of employment. 32. COMMERCIALS ON CABLE TELEVISION A. Cable Transmission Only 1. Principals Use of commercials made for cable only shall require a payment equal to the applicable session fee. Such payment shall cover 13 weeks of use over cable systems originating in the geographic jurisdiction of the Arizona Regional Commercials Contract. Session fees may be applied to this use for transmission on local cable systems only. Notwithstanding the intended use for cable transmission only, all terms governing broadcast commercials, including but not limited to exclusivity, the payment of holding fees and the 21 month maximum period of use, shall apply. 2. Extra Performers/Hand Models Extra Performers and Hand Models hired to work in commercials produced for cable transmission only shall receive the following minimum wage rate which shall cover use of the commercial for the 21 month maximum period of use only. Use beyond 21 months shall be at rates no less favorable than scale as herein provided. First commercial produced in one day Each additional commercial produced in one day Extra Performer $ $ Hand Model $ $ B. Cable Use of Broadcast Commercials Broadcast commercials used on cable systems originating within the geographic jurisdiction of the Arizona Regional Commercials Contract shall be paid at the following rates which cover use of one 13-week Commercials Arizona Regional Agreement of 18

12 cycle. Use on cable systems originating outside the geographic jurisdiction of this contract shall be paid at the rates set forth in the AFTRA and Screen Actors Guild National Codes. Session fees and holding fees may not be credited against any cable use fees that may be due hereunder. Use Fees for Broadcast Commercials on Cable TELEVISION LOCAL CABLE SUBSCRIBERS PRINCIPAL-ON PRINCIPAL-OFF GROUP-ON GROUP-OFF 1-200,000 $ $ $ $ , ,000 $ $ $ $ ,001 + $ $ $ $ C. Cable Integration Fees for Commercial Extra Performers and Hand Models: Whenever footage produced during a given workday for commercials produced for cable transmission is integrated into one or more other cable commercials, all Extra Performers and Hand Models involved in that portion of the footage so utilized shall be paid a single additional payment as follows: Extra Performers $ Hand Model $ NON-AIR COMMERCIALS Non-air commercials are commercials not intended for broadcast use, such as copy-testing or client demos. Such commercials shall be so designated at the time of audition or interview, or, if there be none, at the time of hiring, and such commercials may be used only for such purposes and not for broadcast. No exclusivity may be required of Performer for such non-air commercials. Non-air commercials produced for advertisers who normally broadcast commercials subject to the Arizona Regional Commercials Contract shall be paid at the rate of no less than 50% of the applicable session (radio or television) per commercial. The fees for non-air commercials produced for advertisers who normally broadcast commercials subject to the National AFTRA/SAG Agreements shall be paid at the applicable National AFTRA/SAG "non-air" commercial rates. Such commercials may not be broadcast without the written consent of each Performer, and bargaining for an employment contract which does not allow crediting of the fees for non-air use previously paid. 34. PUBLIC SERVICE ANNOUNCEMENTS A. Public service announcements are defined as those announcements which stations will broadcast on donated time as public service announcements. B. Rates for Performers for public service announcements shall be one session fee for one (1) year's use for television and one and one-half session fee for one (1) year s use for radio. Additional one year use periods will be granted by the Union contingent upon Performer s written consent. 35. DOUBLING Doubling is the performance of more than one role in a program or commercial except when it is part of an act, such as that of a ventriloquist or puppeteer. A. Doubling fees will be paid per the following schedule: Commercials Arizona Regional Agreement of 18

13 One Voice Two Voices Three Voices Four Voices Five Voices 100% of the session fee 175% of the session fee 200% of the session fee 225% of the session fee 250% of the session fee, etc. B. Additional rates for doubling in Section A above shall also apply in computing re-use. 36. BILLBOARDS, OPENINGS, CLOSINGS When a Performer is employed solely for the purpose of performing a program open/close, the Signatory shall have the option of paying the Performer the appropriate program fee for each use or the spot fee for each open and close, which taken together are considered as one (1) commercial. 37. DUAL USE Where any recording is used for both television and radio purposes, all Performers shall be paid the applicable fee for both television and radio. 38. PUPPETEERS Puppeteers who operate hand or string-manipulated puppets shall be included in the term "Performer" and shall be covered by this Regional Commercials Contract. Such Performer shall be paid compensation for services and for use and re-use in the same manner as a principal Performer. 39. FINANCIAL ASSURANCES SAG-AFTRA reserves the right to require the posting of an adequate bond, cash or other security. SAG-AFTRA also reserves the right to require the Producer/Advertising Agency to make payment by certified or cashier's check to the Performers, delivered to the SAG-AFTRA office at least twenty-four (24) hours in advance of the session, to be held in escrow until due and payable under applicable provision of this Agreement. 40. AGENCY FEE (or COMMISSION) The Producer/Advertising Agency, not the performer, shall bear the agency fee for obtaining employment. If the performer is represented by an agent, the Producer/Advertising Agency will include the agent s commission in the gross compensation to the performer provided that the performer s gross compensation less such agent s commission is not below the applicable minimum compensation for such employment. Gross compensation for all performers shall be subject to applicable Pension & Health/Health & Retirement. 41. COMMERCIAL FEES Payment of the session fee covers use for the first 13-week cycle provided that the first cycle commences within 13 weeks from the date of employment. In the event a commercial is not used within 13 weeks of the day or days of employment, holding fees will become due in accordance with Paragraphs 5 and 31. Consecutive 13-week cycles of use are payable at no less than 100% of the Performer's commercial base rate as set forth in the individual talent contract. The following sets forth fees for commercials made in Arizona only and played in Arizona. All rates shall apply to commercials up to three minutes in length intended for use as any or all of the following: wild spot commercials, program commercials, or cable commercials. Commercials Arizona Regional Agreement of 18

14 (This Page Intentionally Left Blank) Commercials Arizona Regional Agreement of 18

15 AFTRA/ SCREEN ACTORS GUILD 2009 ARIZONA REGIONAL COMMERCIALS CONTRACT Effective Date: April 1, 2009 March 31, 2012 A. TELEVISION COMMERCIALS PRINCIPALS GROUPS ON-CAMERA OFF-CAMERA ON-CAMERA OFF-CAMERA TELEVISION HOLDING FEES B. RADIO COMMERCIALS C. TAGS TELEVISION ON-CAMERA OFF-CAMERA RADIO Any Performer engaged for a session for the sole purpose of performing tags shall be paid the applicable session fee for the first such tag and the tag rates specified above for each additional tag produced thereafter. D. CABLE TELEVISION COMMERCIALS 1. Cable Transmission Only Principals: Use of commercials made for cable only shall require a payment equal to the applicable session fee. Such payment shall cover 13 weeks of use over cable systems originating in the geographic jurisdiction of the Arizona Regional Commercials Contract. Session fees may be applied to this use for transmission on local cable systems only. Extra Performers/Hand Models: Extra Performers and Hand Models hired to work in commercials produced for cable transmission only shall receive the following minimum wage rate which shall cover use of the commercial for the 21-month maximum period of use only. Use beyond 21 months may be negotiated at rates no less favorable than scale as herein provided. First Commercial Produced in One Day Each Additional Commercial Produced in One Day Extra Performer Hand Model Commercials Arizona Regional Agreement of 18

16 2. Cable Use of Broadcast Commercials Broadcast commercials used on cable systems originating within the geographic jurisdiction of the Arizona Regional Commercials Contract shall be paid at the following rates which cover use of one 13-week cycle. Use on cable systems originating outside the geographic jurisdiction of this contract shall be paid at the rates set forth in the AFTRA and Screen Actors Guild National Codes. Session fees and holding fees may not be credited against any cable use fees that may be due hereunder. TV LOCAL CABLE SUBSCRIBERS PRINCIPAL-ON PRINCIPAL-OFF GROUP-ON GROUP-OFF 1-200,000 $ $ $ $ , ,000 $ $ $ $ ,001 + $ $ $ $ Cable Integration Fees for Commercial Extra Performers and Hand Models Whenever footage produced during a given workday for commercials produced for cable transmission is integrated into one or more other cable commercials, all Extra Performers and Hand Models involved in that portion of the footage so utilized shall be paid a single additional payment as follows: Extra Performer Hand Model E. ONE-YEAR PREPAID USE TELEVISION PRINCIPALS GROUPS ON-CAMERA OFF-CAMERA ON-CAMERA OFF-CAMERA , , , RADIO F. EXTRAS (Rate applies to first 15 extras engaged) G. HAND MODELS H. NON-AIR COMMERCIALS TELEVISION ON-CAMERA OFF-CAMERA RADIO I. Health & Retirement / Pension & Health Contribution Rate: 15.5% Commercials Arizona Regional Agreement of 18

17 (This Page Intentionally Left Blank) Commercials Arizona Regional Agreement of 18

18 INDEX SUBJECT PAGE SECTION Agency Fee (or Commission) Arbitration Auditions Billboards "Buyouts" See One-Year Prepaid Use C Cable Call-Backs Cancellation Due to Weather Cancelled Calls B Client Demos See Non-Air Commercials Compensation, Due Date Contract, Performer's Cooperative Committee Cost of Living Increase Doubling Dressing Rooms Dual Use, TV & Radio Editing of Commercials See National Commercials Contracts Effective Date Employment Contract Engagement, Definition Financial Assurances Fines: Meal Periods Rest Period Late Payment Fittings Flight Insurance E General Conditions SEC-A Hairdress Time & Expense Health & Retirement Contributions Holiday Work Holding Fees (Television Principals only) B Industrial Use of Commercial Industry - SAG-AFTRA Cooperative Committee Interviews, Auditions, Call Backs Invoice, Producer Pays From Jurisdiction Labor Relations Contact Late Payment Location Work Makeup: Tests Time Spent Meal Periods Mileage Non-Air Commercials One-Year Prepaid Use ("Buyout") C Openings, Closings Overtime Payment, Date Due Payments SEC-C Pension & Health Payments Performer Report (Contract) Production & Use Reports Public Service Announcements Puppeteers Rates Rehearsal Rest Period Re-use Saturday & Sunday Work Tags, Use of See Editing National Commercials Contracts Tag Rates Term of Agreement Terms and Conditions Not Covered Tests, Wardrobe & Makeup Theatrical Use of Commercial Transportation Travel and Location Work Unfair Producer/Advertising Agency Union Security Wardrobe Allowance Wardrobe Tests and Checks Weather Permitting Calls Work Day, Length Working Conditions SEC-B Commercials Arizona Regional Agreement of 18

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