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SCREEN ACTORS GUILD AMERICAN FEDERATION OF TELEVISION AND (SAG-AFTRA)

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SAMPLE
Micro-Budget Project Agreement
December 2020
1
SCREEN ACTORS GUILD – AMERICAN FEDERATION
OF TELEVISION AND RADIO ARTISTS
MICRO-BUDGET PROJECT AGREEMENT
Title: “ ” (“Project”)
Single ☐ Episodic ☐ Number of episodes:_____ Season number _____
LEGALLY RESPONSIBLE PARTY (“PRODUCER”):
Signatory Company OR Individual Name:
Signatory Address:
______
Company Structure (if applicable): Fed. ID#: _____________ State: _____ Corp: ☐ LLC: ☐ DBA: ☐ Other: _______
Contact Person(s): ______ Title:
Phone: ____________ Email:
Briefly describe the storyline:
Screenwriter(s): _
Who owns the project?: _
Project Financed by: _______
Shooting/Recording Location(s) (city, state, country):
__________________________________________________________________________________________________
Running Time (in minutes): (☐ check if per episode)
Number of shooting/recording days: ________
Total Project Budget: $
Total number of: Principal Performers: ______ Background Actors: _____ SAG-AFTRA Members currently cast: _____
Do you plan to use any of the following in your production? (Please check all that apply.)
Not Applicable ☐ Animals ☐ Dancers ☐ Minors ☐ Puppeteers ☐ Singers ☐ Stunts ☐
Please note: Producer is advised that it must still comply with all legal requirements for employment of performers and
background actors including, but not limited to, those pertaining to Workers’ Compensation and minimum wages.
SAMPLE
Micro-Budget Project Agreement
December 2020
2
MICRO-BUDGET PROJECT AGREEMENT
This Agreement applies only for the project entitled “______________________________________________” (“Project”)
being produced by (“Producer”).
o To qualify for this Agreement a project:
o Must have a total budget $20,000 or less (per episode if the project is episodic);
o Must be shot/recorded entirely in the United States;
o Must be a bona fide live action entertainment project intended for release free-to-the-consumer, limited to the
following “Permitted Uses”:
o At film festivals;
o On free-to-consumer new media platforms where:
The consumer does not pay for access to the Project and
Producer has not received compensation for the right to distribute or exhibit the Project;
o Before the Academy of Motion Picture Arts and Sciences for possible Academy Award consideration;
o To non-paying, non-public, established entertainment industry members to showcase the talent;
o On 1 unpaid public access television channel for not more than 1 year from the first run date;
o In the classroom for a grade.
o Must not be a commercial for any product or service, a music video, or a corporate educational video.
o Must not contain nudity or simulated sex, hazardous stunts, or hazardous/dangerous conditions as any of those
terms are defined and/or customarily understood in the entertainment industry and in the 2020 SAG-AFTRA
Codified Basic Agreement.
Producer must inform Performers and Background Actors that the Project is subject to this Agreement.
o Producer must obtain a “Micro-Budget Project Agreement Acknowledgement” from each Performer/Background
Actor.
Unless otherwise stated herein, any disputes under this Agreement must be submitted to arbitration pursuant to the
terms contained in Exhibit A.
Producer hereby recognizes SAG-AFTRA as the exclusive collective bargaining agent for Performers and Background
Actors in connection with the Project identified above, and agrees to abide the following terms and conditions.
1. DEFINITIONS
“Performer” and “Background Actor” have the meaning ascribed to them in the applicable SAG-AFTRA Agreement.
“SAG-AFTRA Agreement” refers to any agreement SAG-AFTRA offers relating to coverage of projects produced within its
areas of jurisdiction.
TYPES OF CONTENT THAT CAN BE PRODUCED PURSUANT TO THIS AGREEMENT IF QUALIFIED:
This Agreement is only available for projects that would otherwise be covered under one of the following SAG-AFTRA
Agreements:
o Short Project Agreement
o Ultra Low Budget Project Agreement
o Student Film Agreement
o Agreement for Independent Producers of Dramatic New Media
o New Media Agreement for Non-Dramatic Programs
SAMPLE
Micro-Budget Project Agreement
December 2020
3
2. IF AN UNQUALIFIED PROJECT IS PRODUCED UNDER THIS AGREEMENT OR THE PROJECT IS RELEASED IN OTHER
MARKETS:
If the Project is signed to this Agreement as a result of Producer’s misrepresentation or omission or if Producer
distributes/exhibits or authorizes distribution/exhibition of the Project in any market or media not set forth above in
Permitted Uses without separately bargaining with SAG-AFTRA, SAG-AFTRA, in its sole discretion, may reclassify the
Project to the appropriate SAG-AFTRA Agreement.
Producer agrees that if SAG-AFTRA reclassifies the project, all terms and conditions of the SAG-AFTRA Agreement (“
Replacement SAG-AFTRA Agreement”) that should have applied to the Project will apply in the same manner as if the
Project had been correctly signed under that agreement. In determining the applicable Replacement SAG-AFTRA
Agreement, SAG-AFTRA will consider factors including, but not limited to, Producer’s representations herein, the Project’s
actual budget, Project length, the initial and/or primary market(s) of release and any other applicable information. The
Project will be reclassified to the SAG-AFTRA Agreement most closely applicable.
Producer further agrees that if the Replacement SAG-AFTRA Agreement provides for minimum compensation, Producer
will pay the Performers and Background Actors all amounts, including pension and health fund contributions that would
have been due under the Replacement SAG-AFTRA Agreement less any amounts already paid. Producer agrees to
promptly make payment of all such compensation required under the Replacement SAG-AFTRA Agreement and to abide
by any provisions related to Residuals and reuse, along with any other appropriate terms and conditions. If the Project is
still in production, the corresponding terms and conditions of employment will be applicable to the Project.
Producer will have no right to use, and must immediately cease using, the Performers’ and Background Actors’
performances (notwithstanding any contrary language in this or any other SAG-AFTRA Agreement or in any Performer’s or
Background Actors’ individual employment contract to the contrary) until Producer has made the required payment.
SAG-AFTRA, or any performer who worked on the Project, may seek injunctive relief in arbitration or in any court of
competent jurisdiction to enforce this provision.
3. REQUIRED PERFORMER ACKNOWLEDGEMENT; AGREEMENT INCORPORATED:
Producer must inform all Performers and Background Actors employed on the Project that the Project is subject to this
Agreement.
Producer must provide to each Performer and Background Actor and obtain signature on the attached “Micro-Budget
Project Acknowledgement” (“Acknowledgement”) prior to commencement of work. The terms and conditions of this
Agreement and the Acknowledgement are deemed incorporated in each Performer’s or Background Actor’s employment
contract, whether oral or written, and may not be waived.
Producer does not have to return the forms to SAG-AFTRA unless requested to do so. If Producer fails to provide proper
notification and to obtain the Performers’ and Background Actors’ acknowledgment, Producer agrees to indemnify SAG-
AFTRA for any costs or damages it incurs arising as a result of Producer’s failure.
4. PROHIBITIONS – NUDITY; SIMULATED SEX; HAZARDOUS/DANGEROUS CONDITIONS OR STUNTS; DIGITAL
REPRODUCTIONS
Projects produced pursuant to this Agreement may not contain nudity, simulated sex, or hazardous/dangerous conditions
or stunts, as those terms are defined and/or understood through custom and practice in the entertainment industry and
under the 2020 SAG-AFTRA Codified Basic Agreement and the SAG-AFTRA Television Agreement (each “Prohibited
Content”).
Producer may not use any digital scanning techniques to create digital reproductions of any Performer or Background
Actor in connection with the Project. Producer may not use any digital reproduction of any individual, living or deceased,
as a character or in place of Performers or Background Actors in the Project without the union’s consent. The foregoing
restriction includes any voice reproductions.
SAMPLE
Micro-Budget Project Agreement
December 2020
4
5. NO WAIVER OF APPLICABLE LAWS:
Nothing herein waives or limits Producer’s obligations to comply with any laws or regulations otherwise applicable to the
production. This may include, but is not limited to, laws related to workers compensation, minimum wages, and the
employment of minors.
Nothing in this Agreement supersedes or limits any right or remedy a Performer might have at law or otherwise relating
to their work on the Project, including relating to any unauthorized use of his or her name, likeness, image, voice,
performance or any other personal attribute.
For purposes of clarity, any Performer or Background Actor shall have the right to pursue disputes under their individual
employment contract or for Producer’s violation of any legal right (which may include rights of publicity, state or federal
employment law, or other applicable law) in court or through an applicable government agency.
6. COVID-19 SAFETY
Producer agrees that it is aware of and will take all reasonable efforts to meet industry-applicable health and safety
standards relating to COVID-19, consistent with local, state and federal regulations, orders, guidance, or other
requirements (including, but not limited to, social distancing, essential business closures, and shelter in place orders). In
particular, Producer acknowledges its obligation to review and comply with the following documents (available at
www.sagaftra.org/backtowork): COVID-19 Return to Work Agreement; The Safe Way Forward - Production Safety
Guidelines; and The Industry-Wide Labor-Management Safety Committee Task Force White Paper.
7. DISPUTE RESOLUTION:
All disputes and controversies between SAG-AFTRA and Producer related to this Agreement will be submitted to
arbitration pursuant to the procedures set forth in Exhibit A attached herein. This provision does not limit SAG-AFTRA’s or
a performer’s ability to seek injunctive relief to halt exploitation of the Project in the event the Project is reclassified
pursuant to Section 3.
8. THE AGREEMENT IS ONLY FOR THE SPECIFIC PROJECT:
Producer understands that this Agreement is only for the Project listed above. Qualification for this Agreement is solely in
SAG-AFTRA’s discretion and does not guarantee Producer will qualify on any other projects, even if related to the Project.
9. MISCELLANEOUS:
This Agreement may be signed in counterparts, each of which will be deemed an original and all of which together will
make one agreement. Any signature transmitted electronically, including any typed signature, is valid and binding to the
same extent as an original signature.
If any portion of this Agreement is held to be unenforceable or illegal by a court of law, such portion will be severed and
the remainder of the agreement will still be enforceable. Producer and SAG-AFTRA will negotiate a substitute provision
with substantially the same effect to the extent SAG-AFTRA requires such a substitute.
This Agreement is valid for one (1) year from the date Producer executes it. Any provision, which by its terms or nature is
intended to survive termination of this Agreement, will survive any termination of this Agreement such as Residuals,
reuse and other such provisions of this Agreement.
____ Producer understands and agrees that the Project may not be released commercially or in any market or media
other than those listed above without separately bargaining the terms and conditions with SAG-AFTRA prior to such
release. Producer understands and agrees that Performers have authorized use of their names, images, likenesses, voices,
and performances in the limited markets listed above and any further and additional release may trigger additional
payments to Performers and may subject Producer to liability for unauthorized use of the names, likenesses, and
performances.
SAMPLE
Micro-Budget Project Agreement
December 2020
5
By signing below, Producer represents and warrants the Project meets the above qualifications for this Agreement and
agree to the Micro-Budget Project Agreement terms and conditions contained herein. If the below individual is signing on
behalf of a company, the individual certifies that it is empowered and authorized to make these representations on the
company’s behalf.
PRODUCER SAG-AFTRA:
AGREED AND ACCEPTED:
AUTHORIZED SIGNATURE AUTHORIZED SIGNATURE
PRINT NAME AND TITLE PRINT NAME AND TITLE
DATE DATE
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signature
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SAMPLE
Micro-Budget Project Agreement Arbitration Exhibit Page A-1 of 3
EXHIBIT A
Dispute Resolution
1. Grievance and Arbitration
The following procedures apply to disputes arising under the Micro-Budget Project Agreement:
A. Time Limits:
Claim proceedings are initiated by sending written notice setting forth the particulars of the claim to the
other Party within 12 months following the date on which the party initiating the proceedings knew or
reasonably should have known of the facts upon which the claim is based.
B. Arbitration:
1. Institution of Arbitration
The Party initiating the dispute will deliver to the other a written demand for arbitration setting forth the
basis for the dispute not later than 12 months after initiating the grievance.
All notices to Producer will be sent to the address above (or to such other address as the Producer may
specify in writing) and
2. Service of Demand
The demand for arbitration will be served upon the other party at the party's last-known address by (a)
personal delivery, (b) overnight courier service, (c) certified mail, return receipt requested, (d) first class
mail, or (e) facsimile or email, with a copy sent by first class mail.
The other party may file a written reply within 10 days following the delivery of the demand for arbitration.
3. Arbitrator Selection
Within fifteen (15) days of the date the arbitration demand is served, the parties agree to attempt to
mutually agree upon an arbitrator to hear and determine the dispute from the list set forth in the Producer
– SAG-AFTRA Codified Basic Agreement in effect as of the date of arbitrator selection.
If the parties cannot agree upon the arbitrator to be appointed, then each party may alternately strike one
name from the list until one arbitrator is left. A coin toss will determine which party strikes first. The
arbitrator who is left will be appointed as the arbitrator. If the Producer fails to participate in the selection
process, SAG-AFTRA may unilaterally select the arbitrator from the panel. Failure of the complaining
party to initiate arbitrator selection within the times set forth will not waive or prejudice any grievance
unless: (i) the responding party provides written notice to the complaining party that it will be materially
prejudiced if arbitrator selection does not commence promptly; (ii) the notice provided by the responding
party sets forth a date by which to commence arbitrator selection; (iii) the complaining party fails to
engage in arbitrator selection by the date set forth in such notice; and (iv) the responding party can
demonstrate it was, is, or will be materially prejudiced by such delay.
SAMPLE
Micro-Budget Project Agreement Arbitration Exhibit Page A-2 of 3
4. Timing and Place of Hearing
Subject to the arbitrator’s availability, the arbitration hearing will commence within 60 days of arbitrator
selection. The selected arbitrator’s inability to schedule the arbitration hearing within 60 days will not
disqualify that arbitrator from hearing the dispute provided the Parties can mutually agree to select a new
arbitrator in the event of extended unavailability.
If the initial arbitrator is not available to hear a dispute within the time set forth herein, or if the matter is of
a nature that time is of the essence, the parties may select an arbitrator pursuant to the Expedited Labor
Arbitration rules of the American Arbitration Association (AAA), as modified by this Exhibit A. Where the
in-person attendance of witnesses is not necessary, the parties can agree to proceed with a documents
only arbitration.
All arbitrations will be held in SAG-AFTRA’s office in Los Angeles, unless the parties agree otherwise;
provided that if Producer has its production headquarters in New York and a majority of the witnesses
required for the hearing reside regularly in or around New York, the arbitration may be held in New York.
5. Exchange of Information
Prior to any hearing, the parties will cooperate in the exchange of information and documents consistent
with their obligations under federal labor law. Not later than thirty (30) days prior to the arbitration hearing,
any party may make a written request to the other to produce, on a date not later than five (5) days before
the hearing, documentary evidence of the type producible pursuant to a subpoena duces tecum. The
documents must be produced on or before the date requested, but the other party may object to the
production of the documents to the same extent as if the documents were subpoenaed. The arbitrator will
consider any such objection at the hearing.
6. Award of the Arbitrator
The arbitrator's decision and award will be in writing and will be final and binding on the Producer, SAG-
AFTRA, the performer or performers involved and, when applicable, the performer's loan-out company.
Judgment upon the award may be entered in any court having jurisdiction. The arbitrator has authority to
determine only the dispute presented by the written demand for arbitration, and then only to the extent
and in the manner expressly provided by the applicable provisions of this Agreement. Nothing herein
gives the Arbitrator the authority, power or right to alter, amend, change, modify, add to or subtract from
any of the provisions of this Agreement.
In addition to all other available remedies, the arbitrator has the power and authority to order injunctive or
equitable relief, including enjoining exploitation of the Project where appropriate.
7. Costs and Expenses
Each party will bear its own costs in connection with any arbitration hereunder. SAG-AFTRA and the
Producer will share equally the cost and expenses of the arbitrator.
8. Expiration of this Agreement
Termination or expiration of the Agreement will not affect the application of the arbitration provisions of
this Agreement to arbitrable disputes arising on Projects produced during the term of this Agreement.
SAMPLE
Micro-Budget Project Agreement Arbitration Exhibit Page A-3 of 3
9. Waiver or Extension of Time Limits
All time limits provided in this Exhibit A may be extended or waived by mutual agreement of the parties.
Failure to send a grievance or serve a demand for arbitration within the prescribed time frame is not a bar
to the grievance, unless the other party can demonstrate it has been materially prejudiced by the delay.
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SCREEN ACTORS GUILD AMERICAN FEDERATION OF TELEVISION AND (SAG-AFTRA)

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Completed 8 June 2022

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