Common use of Budget Definition Clause in Contracts

Budget Definition. The budget for the Picture shall consist of all direct and indirect production costs actually incurred in connection with the Picture (the “Budget”). The only costs excluded in determining the Level of the Picture (i.e., Level 1-4, as defined herein), for purposes of this Sideletter shall be financing costs (e.g., bank fees, gap fees, legal fees and interest); contingency of up to ten percent (10%); essential element insurance costs; the cost of the completion bond; marketing expenses; contingent payments to talent or other parties that are based on the proceeds derived from the exploitation of the Picture and received after recoupment of the negative cost; and delivery items required by sales agents, distributors, or subdistributors (e.g., delivery materials beyond the answer print or the NTSC Video Master if the Picture is delivered on videotape, or the digital equivalent if the picture is delivered in a digital format). Federal, state, and foreign rebates and tax credits shall not be excluded from the Budget. DGA shall review the Budget, taking into consideration any and all proposed cost exclusions, and shall approve such Budget for level determination, as defined herein.

Budget Definition. The budget for the Picture shall consist of all direct and indirect production costs actually incurred in connection with the Picture (the “Budget”). The only costs excluded in determining the Level of the Picture (i.e., Level 1-4, as defined herein), for purposes of this Sideletter shall be financing costs (e.g., bank fees, gap fees, legal fees and interest); contingency of up to ten percent (10%); essential element insurance costs; the cost of the completion bond; marketing expenses; contingent payments to talent or other parties that are based on the proceeds derived from the exploitation of the Picture and received after recoupment of the negative cost; and delivery items required by sales agents, distributors, or subdistributors (e.g., delivery materials beyond the answer print or the NTSC Video Master if the Picture is delivered on videotape, or the digital equivalent if the picture is delivered in a digital format). Federal, state, and foreign rebates and tax credits shall not be excluded from the Budget. DGA shall review the Budget, taking into consideration any and all proposed cost exclusions, and shall approve such Budget for level determination, as defined herein.. SAMPLE