BacklotProduction Contractual Highlights 1 Agenda Contractual Clauses Studio

Backlot/Production Contractual Highlights 1

Agenda � Contractual Clauses � Studio Guarantees � Sample Weekly Calculation � Sony Practices � Sample Sony Weekly Calculation 2

Contractual Clauses ◦ Assigns four digits used universally throughout entertainment industry ◦ Sets scale rates ◦ Minimum calls and guarantees of hours Daily/Hourly Weekly On Call ◦ Workweek ◦ Pay Rules Overtime Gold 6 th/7 th Day Forced Calls/Rest Periods Meal Penalty On/Off Production Studio vs Report to vs Distant Location ◦ Pension and Health ◦ Vacation/Holiday Calculations 3

Studio Guarantees ◦ Daily Employees 8 or 9 hours Holiday not paid at time of occurrence ◦ Weekly Employees – minimum five day guarantee Daily minimums Various weekly guarantees from 40 hours to 60 hours ◦ Oncall Employees Basically 60 hours Basically no gold or overtime for 5 days No meal penalty 4

Sample Weekly Sony Calculation ◦ Classification Guaranteed 48. 6 hours – minimum daily call 8 hours 1 st Scenario Works 8 hours each day 8 hours assigned on daily basis Brought up to 48. 6 hour guarantee at end of week Final pay of 48. 6 hours – worked 40 2 nd Scenario Works 9. 7 each day 9. 7 hours assigned on daily basis No further action necessary Final pay of 48. 6 hours – worked 48. 6 3 rd Scenario Works 10 hours each day 10 hours assigned first four days Final day is 8. 6 hours straight and 1. 4 hours overtime Final pay of 50 hours - worked 50 5

Sony Practices Overscale (above and beyond) Overscale used on daily upgrades of weekly or oncall employees (possibly above and beyond) Upgrades for less than full weeks including from weekly to oncall (may not be according to contract) Payment of holiday to daily employees (not required) Use of French Hours for off production employees to offset meal penalties (incorrect) Gold paid to oncall (not required for all oncall employees) Employees assigned 1/5 of weekly guarantee on a daily basis – vs minimums (unnecessary and possibly generating overpayment) 6

Sample Weekly Calculation ◦ Classification Guaranteed 48. 6 hours – minimum daily call 8 hours 1 st Scenario – minimum required by contract Works 8 hours each day 8 hours assigned on daily basis Worked 10 hours on 5 th day Final pay of 48. 6 hours – worked 42 2 nd Scenario – as processed by some Sony post production groups Works 8. 0 hours first 4 days 9. 7 hours assigned first 4 days Worked 10 hours on 5 th day Final pay of 52. 6 hours - worked 42 7

Additional Information 8