Common use of CANCELLATION AND POSTPONEMENT Clause in Contracts

CANCELLATION AND POSTPONEMENT. A cancellation or postponement is defined as a total cancellation of the production of the Specified Commercial(s) or a rescheduling of the production of the Specified Commercial(s) to a later specific date, in either case caused or directed by Agency/Client. A. If notice of cancellation/postponement occurs DURING or is given to the Producer ONE TO TEN BUSINESS DAYS prior to the commencement of the shoot, the Contracting- Client will be liable to the Producer for: (1) All costs incurred or committed as of the date of cancellation/postponement. (2) Full director’s fee as bid. (3) Full production fee on the job as bid. B. If notice of cancellation/postponement is given to the Producer MORE THAN TEN BUSINESS DAYS prior to the commencement of the shoot, the Contracting- Client will be liable to the Producer for: (1) All costs incurred or committed as of the date of the cancellation/postponement. (2) Not less than 50% of director’s fee as bid. (3) Not less than 50% of production fee on the job as bid. In the event of postponement, and prior to the recommencement of production, at the direction of the Producer, the Contracting-Client shall either execute an overage or a new contract, and the Producer shall be paid for such overage or new contract in accordance with this section, and with the payment provisions hereof, including an initial payment prior to the recommencement of production. In the event of cancellation, the Contracting-Client shall pay the Producer’s production fee, director’s fee, and costs in accordance with this section. Invoices for cancellation are due and payable upon receipt. The Producer shall have the right to cancel without penalty in the event the Contracting-Client has breached this Agreement or defaulted on payment to the Producer.