1996 TELEVISION COMMERCIAL AGREEMENT

THIS AGREEMENT has been negotiated between the INTERNATIONAL ALLIANCE OF THEATRICAL STAGE EMPLOYES, MOVING PICTURE TECHNICIANS, ARTISTS and ALLIED CRAFTS OF THE UNITED STATES AND CANADA, AFL-CIO, CLC ("IATSE") and the ASSOCIATION OF INDEPENDENT COMMERCIAL PRODUCERS, INC., ("AICP") and is binding on those television commercial production companies that have consented to be bound hereby ("Employer" or "Employers").

Employers are engaged in the physical production of television commercials pursuant to contracts with advertising agencies and/or advertisers intended for television exhibition. The IATSE represents motion picture and television production technicians and artisans, many of whom work in the production of television commercials.

Television commercial production services the advertising industry by providing filmed and taped commercials for television. While the physical production processes of television commercials parallels that of motion picture production, the process is creatively controlled by advertisers and their agencies whose requirements effect personnel selection, production schedules, work practices and budgets.

This Agreement is intended to recognize and address the special needs of the television commercial production process. It is the intent of the parties hereto that this Agreement establish the wages and working conditions applicable to motion picture and television production technicians and artisans employed in the production of television commercials.

ARTICLE I - RECOGNITION

The Employer recognizes the IATSE as the exclusive collective bargaining representative of all production technicians and artisans employed in classifications traditionally represented by the IATSE in the motion picture industry who are employed by the Employer in the County of Los Angeles to perform services either within or without of said county in the production of filmed television commercials.1 This Agreement is not applicable to office clerical employees, production assistants or guards as defined by the National Labor Relations Act.

1Excluding public service announcements, spec commercials and low budget commercials whose aggregate shooting schedule is two days or more and aggregate production costs do not exceed $100,000. With respect to low budget commercials, wage rates shall be subject to individual negotiation but the benefit provisions of Article XXII shall be applicable.

ARTICLE II - UNION SECURITY

Employees covered by this Agreement, as a condition of employment, shall become and thereafter remain members in good standing of the IATSE2 on and after the thirtieth day of their employment or thirty days following the execution of this Agreement, whichever is the later date. The foregoing shall be subject to and limited by applicable State law and to the extent that any applicable State law does not permit the form of union security herein provided, then and in that event, this Agreement shall be deemed to provide for the maximum form of union security permitted by said State law. "Members in good standing" shall be defined, interpreted and implemented by the parties as an employee who meets the financial obligations only in accordance with the provisions of the National Labor Relations Act.

2 Including the appropriate chartered West Coast Studio Local of the IATSE ("Local Union").

ARTICLE III - ADMINISTRATION

In order to achieve consistency and continuity in the administration of this Agreement, the IATSE shall designate a special representative responsible for the administration of the Agreement. This Agreement has been negotiated on behalf of signatory Employers by the AICP which shall similarly designate a representative responsible for the administration of this Agreement.

ARTICLE IV - ACCESS

The designated representatives of the IATSE and its Local Unions shall be permitted reasonable access to all production sites where persons covered by the Agreement are performing services subject to reasonable limitations relating to the protection of design, patent or trade secrets and other confidential matters.

ARTICLES V - JOB STEWARD

The IATSE or crew may appoint one steward for each production. The identity of the designated steward shall be made known to the Producer of the television commercial not later than the first day of production. It is understood that the steward shall in no way be discriminated against for any cause whatsoever in the performance of their duties as steward.

ARTICLE VI - NO DISCRIMINATION

The Employer and the IATSE agree that there shall be no discrimination against any employee or prospective employee due to race, color, creed, sex, age, physical handicap, union membership or national origin, or as otherwise provided in applicable State or Federal legislation.

ARTICLE VII - GRIEVANCE PROCEDURE

Any dispute between the IATSE on behalf of itself or a Local Union and the Employer concerning the interpretation and/or application of this Agreement which cannot be initially resolved between the parties shall be referred to the designated representatives of the IATSE and AICP for resolution. If they are unable to resolve the matter, it may be submitted to arbitration by either the IATSE or the Employer. If an arbitrator cannot be mutually selected, then one shall be selected by lot from an arbitration panel obtained from the Federal Mediation and Conciliation Service. The arbitrator and parties shall follow the labor arbitration rules of the American Arbitration Association. Any claim not reduced to writing and submitted to the other party within forty-five (45) calendar days following the incident giving rise to the claim or within forty-five (45) calendar days after the employee or the IATSE or Local Union had a reasonable opportunity to become aware of the incident, whichever is the later, but in no event more than one year after the incident, shall be deemed to be waived.

ARTICLE VIII - NO STRIKE - NO LOCKOUT

During the term of this Agreement, there shall be no strikes, picketing, or work stoppages by the IATSE or by an employee, or lockout by the Employer.

ARTICLE IX - MULTI-EMPLOYER UNIT

Employees hired by the Employer to perform services in the County of Los Angeles, or hired by the Employer in the County of Los Angeles to perform services outside the County of Los Angeles shall be deemed to be within the multi-employer bargaining unit established by the Producer - I.A.T.S.E. 1996 Basic Agreement and its successor agreement ("BA") and subject to the BA's provisions covering the Industry Experience Roster, Health and Pension Plans3 and the Contract Services Administration Trust Fund; provided, however, the wages, working conditions and other terms and conditions of this Agreement shall be fully applicable to employees covered by this Agreement.

3 The thirty and five tenths cents (30.5) per hour worked or guaranteed contribution to the Individual Account Plan shall be increased by one percent (1%) of the scale Regular Basic Hourly Rate for all hours worked or guaranteed effective November 1, 1996; effective May 31, 1998 said one percent (1%) shall be increased to (2%) and effective August 1, 1999 said two percent (2%) shall be increased to three percent (3%).

ARTICLE X - PREFERENCE OF EMPLOYMENT

(a) Preference of employment shall be based on the Industry Experience Roster and the Television Commercial Roster. In recognition of the special conditions in production of television commercials, the Employer may employ persons specifically designated by the advertiser or its agency who are not otherwise entitled to preference. Further, the Employer may employ persons not entitled to preference where such persons have unique training, skill or knowledge of evolving technologies or where such persons have documented records of prior experience in the production of television commercials, interactive programming, music videos and documentary, educational, and industrial films.

(b) Persons hired pursuant to (a) above who are not on the Industry Experience Roster of a Local Union shall be eligible to have their name added to a Television Commercial Roster ("TCR") to be maintained and administered by the Contract Services Administration Trust Fund ("CSATF"). Initial placement on such TCR shall be based on thirty (30) work days in the production of television commercials within the 365 day period preceding the date of application for placement. Employees shall have the burden of establishing their eligibility for such initial placement on the TCR.

(c) Persons listed on the TCR shall be entitled to equal preference of employment with persons listed on the Industry Experience Roster of any Local Union. Once such person has accrued a total of 120 work days under this Agreement, they may, upon application to CSATF, have their name added to the Industry Experience Roster of the appropriate Local Union. The employee shall have the burden of establishing their eligibility for such Industry Experience Roster placement subject to the then current rules and procedures applicable to such placement.

ARTICLE XI - MINIMUM TERMS AND CONDITIONS

The wage scales and working condition provisions of this Agreement shall be minimums and employees shall not be precluded from obtaining "better conditions" as that term is understood in the motion picture and television industry. Any employee enjoying such better conditions shall not have their wages or working conditions reduced as a consequence of this Agreement.

ARTICLE XII - SCOPE OF AGREEMENT

(a) The parties recognize that there are factors and requirements unique to the making of television commercials for the advertising industry which may result in the Employer having no effective control over portions of pre-production or post-production work covered by this Agreement. Under such circumstances, where the Employer does not control the assignment of work, the Employer shall not be responsible or liable under this Agreement for the performance of such work.

(b) The Employer shall not be prevented from subcontracting when the Employer does not have the facilities or equipment required for the work required or its employees do not have the necessary skills and qualifications to perform the work required. The use of third party vendors for services consistent with commercial industry practice shall not be deemed within this provision.

(c) The foregoing provisions are intended to conform to existing business practices in the commercial industry and not to diminish employment opportunities for employees covered by this Agreement.

ARTICLE XIII - OPERATIONS

There shall be no minimum staffing requirements provided, however, staffing practices shall be consistent with the general past practice of the television commercial production industry. Consistent with past practice, there shall be practical interchangeability within the production crafts.4

4 The foregoing shall not be deemed to preclude the services of "stylists" as that term is understood in the commercial industry who are not covered by this Agreement.

ARTICLE XIV - WORK DAY, WEEK AND MINIMUM CALLS

The work week shall be any five or six consecutive work days within seven consecutive days. The minimum daily work call during pre-production and production shall be eight (8) work hours. Work time begins at the time of the set call and ends at the time of set dismissal. The minimum call on a travel only day shall be four (4) hours and the maximum shall be eight (8) hours paid as a straight time allowance. Eight (8) hours of benefit contributions for travel days and idle days on overnight locations shall be made as provided in the BA.

ARTICLE XV - OVERTIME

(a) The first eight (8) work hours during the first five days of a work week shall be at straight time. Work hours in excess of eight (8) on the first five days of the work week and for the first twelve (12) work hours on a sixth work day shall be paid at time and one-half. Double time shall be paid after twelve (12) work hours on the first five days of the work week and for the first twelve (12) hours worked on a seventh day in a work week or on a designated holiday. Work hours beyond twelve (12) on a sixth or seventh day in a work week or on a designated holiday shall be paid at double the applicable rate for the day; e.g., 6th day - 1*X, 7th day and holidays - 2X.

(b) All time is to be computed in one-quarter (1/4) hourly units and overtime premiums shall not be compounded.

ARTICLE XVI - REST PERIODS

There shall be a ten (10) hour rest period following all studio zone, studio and local location work assignments. There shall be a nine (9) hour rest period following all overnight location assignments.5 If at least eight (8) hours of rest are provided, the penalty for the invaded hour or portion thereof shall be paid at straight time. If at least six (6) hours of rest have been provided, the employee shall be paid on return to work at the premium rate in effect for all invaded hours. If less than six (6) hours of rest have been provided, then the employee shall be called back and paid at the premium rate in effect until a ten (10) hour rest period has been provided.

5 The Director of Photography and camera operator shall be given an additional one hour of rest on overnight locations.

ARTICLE XVII - HIGHER CLASSIFICATION

An employee assigned by the Employer to work in a classification with a higher wage rate for two (2) or more hours on a single day shall get the higher rate for the entire day. No employee shall be deemed to be working in such higher classification absent specific advance authorization.

ARTICLE XVIII- MEALS

(a) Meal periods shall not be less than one-half (1/2) hour nor more than one (1) hour in length. Not more than one meal period shall be deducted from work time for an employee during the minimum call. (A second meal period may be deducted from work time for those employees who work in excess of the minimum call.)

(b) The employee's first meal period shall commence within six (6) hours following the time of first call for the day; succeeding meal periods shall commence within six (6) hours after the end of the preceding meal period. An employee's first meal period shall commence no earlier than three (3) hours after such employee reports for work except for persons called in earlier than the regular crew call who are provided with a non-deductible breakfast in which case their first deductible meal period will be due at the same time as the meal is due for the regular crew.

(c) The first deductible meal period may be extended by fifteen (15) minutes to complete a set up and a second deductible meal period may be extended by thirty (30) minutes to complete a set up and/or wrap. Extensions of the meal periods are not to be scheduled and if exceeded, meal penalties shall relate back to the time the meal was otherwise due. Any second meal, excluding a non-deductible breakfast, may be a non-deductible walking meal, provided the crew is dismissed within one hour from the time the meal was otherwise due.

(d) A meal penalty allowance for delayed meals shall be computed as follows:

(1) First 3/4 hour meal delay

or fraction thereof. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. $8.00

(2) Second and each succeeding 3/4 hour

meal delay or fraction thereof . . . . . . . . . . . . . . . . . . . . . .$12.00

Such allowance shall be in addition to the compensation for work time during the delay and shall not be applied as part of any guarantee.

ARTICLE XIX - LOCATIONS/TRAVEL

(a) Employees shall report to work at designated local production locations within the Studio Zone. The Studio Zone shall be the area within a circular thirty (30) mile zone, the radius of which shall be calculated from Beverly Boulevard and La Cienega Boulevard in Los Angeles, CA, unless there are access difficulties, in which case the Employer will make appropriate transportation arrangements.

(b) Employees may be requested to report to a nearby production location outside the thirty (30) mile zone, in which case the employee shall be paid mileage, computed from the perimeter of the distance from the thirty (30) mile zone to the reporting place and return calculated at the rate of thirty cents ($.30) per mile. Such travel time outside of the thirty (30) mile zone shall be paid as an allowance at the employee's regular hourly rate and such travel time shall accrue toward the required rest period.

(c) Any employee who is transported by the Employer to an overnight location shall be provided with a per diem allowance and either housing or a housing allowance. The Employer shall provide transportation to and from overnight locations. Travel within the United States by commercial jet shall be not less than coach class. Travel outside the United States by commercial jet shall be not less than business class. All other travel by commercial carriers shall be by the best class available.

(d) Work time for employees on overnight location shall be calculated from time of set call to time of set dismissal and they shall be provided with transportation to and from daily production locations. Daily travel time shall not exceed one hour a day. Daily travel time in excess of one hour a day shall be paid as work time. Rest periods shall be calculated on a portal-to-portal basis.

ARTICLE XX - CANCELLATION OF CALLS

In the event of cancellation for previously called employees, it is understood that if notification is not given by the completion of the previous day's work or by 3:00 p.m. of the day preceding the call if not a work day, then the employee shall be paid an eight (8) hour minimum call, unless the cancelled call was for a travel only or wrap in which case the employee shall be paid a four (4) hour minimum call.

ARTICLE XXI - HOLIDAYS

(a) Recognized holidays shall be the same as those designated in the then current Screen Actors Guild Commercials Contract. Weekly employees shall be paid for an unworked holiday falling within their regular work week.

ARTICLE XXII - BENEFITS

(a) The provisions of Article IX shall be applicable to employees hired by the Employer to perform services in the County of Los Angeles, or hired by the Employer in the County of Los Angeles to perform services outside the County of Los Angeles. Eight (8) hours of benefit contributions for travel days and idle days on overnight locations shall be made as provided in the BA.

(b) The Employer will execute any documents required to constitute it an appropriate Employer contributor to the benefit plans specified in Article IX.

ARTICLE XXIII - WAGE RATES

The applicable minimum wage rates for positions covered by the Agreement are set forth on Appendix A attached. There are no guarantees of employment beyond one (1) day for daily employees and one (1) week for weekly employees. If the last work week of a weekly employee is a partial work week, it may be prorated if the employee has been employed for at least one (1) full week.

ARTICLE XXIV - TERM AND EFFECTIVE DATE

This Agreement shall be generally effective as of November 1, 1996 and shall remain in full force and effect through September 30, 2000.

THE INTERNATIONAL ALLIANCE OF THEATRICAL STAGE EMPLOYES, MOVING PICTURE TECHNICIANS, ARTISTS AND ALLIED CRAFTS OF THE UNITED STATES AND CANADA, AFL-CIO, CLC on behalf of itself and the following West Coast Studio Locals:

Affiliated Property Craftspersons Local No. 44

Motion Picture Studio Grips Local No. 80

Laboratory Film/Video Technicians of the Motion Picture and Television Industries Local No. 683

International Photographers of the Motion Picture and Television Industries Local No. 600

International Sound Technicians, Cinetechnicians, Television Engineers, Studio Projectionists and Video Projection Engineers of the Motion Picture and Television Industries Local No. 695, Local No. 695C and Local No. 695P

Motion Picture Costumers Local No. 705

Make-Up Artists & Hair Stylists Local No. 706

Production Office Coordinators, Production Accountants and Art Department Coordinators Local No. 717

Studio Electrical Lighting Technicians Local No. 728

Motion Picture Crafts Services Local No. 727

Motion Picture Set Painters and Sign Writers Local No. 729

Motion Picture Studio First Aid Employees Local No. 767

Motion Picture and Videotape Editors Guild Local No. 776

Illustrators and Matte Artists Local No. 790

Scenic Artists Local No. 816

Motion Picture Screen Cartoonists Local No. 839

Publicists Local No. 818

Set Designers and Model Makers Local No. 847

Screen Story Analysts Local No. 854

Society of Motion Picture and Television Art Directors Local No. 876

Script Supervisors Local No. 871

Costume Designers Guild Local No. 892

Motion Picture Studio Teachers and Welfare Workers Local No. 884

BY:

ITS:

DATED:

ASSOCIATION OF INDEPENDENT

COMMERCIAL PRODUCERS, INC.

BY:

ITS:

DATED:



CONSENT AGREEMENT

The undersigned television commercial production company has reviewed the 1996 Television Commercial Agreement negotiated by the Association of Independent Commercial Producers, Inc. and the International Alliance of Theatrical Stage Employes and Moving Picture Technicians, Artists and Allied Crafts of the United States and Canada, AFL-CIO, and hereby agrees to be bound thereby and to execute and abide by the terms of the Trust Acceptance attached hereto.

(Production Company)

BY:

ITS:

DATED:

ADDRESS:

PHONE:

FAX:

APPENDIX "A"

WAGE RATE SCHEDULE


CLASSIFICATION1 Nov. 1, 1996 May 31, 1998 Aug. 1, 1999
Director of Photography Hourly $ 65.50 $ 67.47 $ 69.49
Camera Operator Hourly $ 40.10 $ 41.30 $ 42.54
1st Camera Asst. Hourly $ 29.00 $ 29.87 $ 30.77
2d Camera Asst. Hourly $ 26.65 $ 27.45 $ 28.27
Camera Loader/Utility Hourly $ 22.80 $ 23.48 $ 24.18

Sound Mixer Hourly $ 44.75 $ 46.09 $ 47.47
Boom Operator Hourly $ 30.20 $ 31.11 $ 32.04
Sound Utility Hourly $ 30.20 $ 31.11 $ 32.04

Key Grip Hourly $ 27.80 $ 28.91 $ 29.78
2d Grip Hourly $ 25.15 $ 25.90 $ 26.68
Dolly Grip Hourly $ 26.05 $ 26.83 $ 27.63
Grip Hourly $ 24.00 $ 24.72 $ 25.46
Entry Level Grip
Hourly $ 21.00 $ 21.63 $ 22.28

Lighting Gaffer Hourly $ 27.80 $ 28.91 $ 29.78
2d Electrician Hourly $ 25.15 $ 25.90 $ 26.68
Dimmer Operator Hourly $ 24.55 $ 25.29 $ 26.05
Electrician Hourly $ 24.00 $ 24.72 $ 25.46
Entry Level Electrician Hourly $ 21.00 $ 21.63 $ 22.28

Property Master Hourly $ 27.80 $ 28.91 $ 29.78
2d Prop Hourly $ 24.55 $ 25.29 $ 26.05
3rd Prop
Hourly $ 23.00 $ 23.69 $ 24.40

Costume Designer Weekly on call $1,583.00 $1,630.50 $1,679.50
Daily on call $ 380.00 $ 391.00 $ 403.00
Key Costumer Hourly $ 25.65 $ 26.42 $ 27.21
2d Costumer Hourly $ 24.35 $ 25.08 $ 25.83
3rd Costumer Hourly $ 22.30 $ 22.97 $ 23.66
Entry Level Costumer Hourly $ 18.70 $ 19.26 $ 18.84

Key Make Up Artist Hourly $ 31.95 $ 32.91 $ 33.90
2d Make Up Artist Hourly $ 27.20 $ 28.02 $ 28.86
3rd Make Up Artist Hourly $ 24.65 $ 25.39 $ 26.15

Key Hair Stylist Hourly $ 31.70 $ 32.65 $ 33.63
2d Hair Stylist Hourly $ 27.80 $ 28.63 $ 29.49
3rd Hair Stylist
Hourly $ 23.70 $ 24.41 $ 25.14

Script Supervisor Hourly $ 23.45 $ 24.15 $ 24.87

First Aid Hourly $ 21.90 $ 22.56 $ 23.24

Craft Service
Hourly $ 20.35 $ 20.96 $ 21.59

Art Director Weekly on call2 $2,233.50 $2,300.50 $2,370.00
Assistant Art Director
Weekly on call2 $1,663.45 $1,713.35 $1,765.00

Set Decorator Weekly on call $1,706.00 $1,757.00 $1,810.00
Daily on call $ 403.75 $ 416.00 $ 428.50
Lead Set Dresser Hourly $ 24.55 $ 25.29 $ 26.05
Set Dresser
Hourly $ 23.00 $ 23.69 $ 24.40

Construction Coordinator Weekly on call $1,660.00 $1,710.00 $1,761.00
Daily on call $ 392.70 $ 404.48 $ 416.61
Propmaker Foreperson Hourly $ 28.20 $ 29.05 $ 29.92
Propmaker
Hourly $ 24.55 $ 25.29 $ 26.05

Paint Foreperson Daily on call $ 330.80 $ 340.72 $ 350.94
Painter
Hourly $ 24.55 $ 25.29 $ 26.05

Lead Scenic Artist Hourly $ 36.40 $ 37.49 $ 38.61
Scenic Artist
Hourly $ 32.90 $ 33.89 $ 34.91

Special Effects Foreperson Hourly $ 28.20 $ 29.05 $ 29.92
Lead Effects Hourly $ 26.05 $ 26.83 $ 27.63
Effects Hourly $ 24.55 $ 25.29 $ 26.05

Studio Teacher/Welfare Worker Hourly $ 30.50 $ 31.42 $ 32.36

1 The minimum wage rate for any classification not listed which is within the scope of Article I shall be the current rate specified in the BA. The listing of a classification is not a staffing requirement.

2 The daily rate shall be twenty-five percent (25%) of the weekly rate.

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