Dispute resolution- negotaition

NY CEE and SHARON AUSBORN

Common facts for both parties

Sharon Ausborn is the creator and executive producer of the New Zealand acting reality television show "The WOW Actor". The show is an acting competition, in which thousands of contestants compete for 12 spots on the live performance shows and ultimately the chance of becoming the winner of the $1 million prize and the title "New Zealand's next hottest actor". The WOW Actor's first season show had four judges, Sharon Ausborn, Symon Powell, Paula Babadul and NY Cee. While The WOW Actor has been a relative success, Sharon Ausborn is disappointed it has failed to achieve the ratings of her hugely popular reality show - Kiwi Idol. Sharon Ausborn blamed the judges for the lower ratings. This prompted a major shake-up of the show, which saw Symon Powell and Paula Bababul axed from the show. NY Cee is the only judge from the first season (other than Sharon Ausborn) who has the option of returning to The WOW Actor.

Sharon Ausborn, in her first media release following the shake-up, thanked those fired from the show and confirmed that she saw NY Cee as an important part of The WOW Actor, and that she hopes that he will be part of Season Two.

Following discussions with Sharon Ausborn, NY Cee has agreed to re-sign and appear as a judge on the second season of The WOW Actor. However, this is conditional upon the renegotiation of his employment contract. NY Cee has instructed Thespian Law to represent him in renegotiating his contract for season two.

TV4 picked up The WOW Actor a week before it wanted filming to commence, leaving little time for the negotiation of the employment contracts for Season One. NY Cee's current employment contract is therefore very basic. Apart from standard terms, it only states the term of his employment (one season) and his salary ($250,000).

Sharon Ausborn has instructed her lawyers, Dramatec and Co, to contact Thespian Law and renegotiate NY Cee's employment contract. Filming for Season Two begins in October.

Confidential facts for Thespian Law (representing NY Cee)

NY Cee is an industry leader, one of New Zealand's most respected acting agents and Sharon Ausborn's major competitor. However, in the current economic climate, NY Cee is being put under increasing financial strain. He is currently $300,000 in debt. NY Cee has successfully kept his financial position under wraps and is trying desperately to get back on his feet without Sharon Ausborn finding out. He needs to remain on The WOW Actor to pay off his increasing debts. NY Cee does not want his financial position, debts or his motives for staying on the show disclosed to Sharon Ausborn under any circumstances.

NY Cee knows he has greater credibility in the acting industry than Sharon Ausborn and he is adamant that his presence on The WOW Actor is worth a lot more than his current salary. He knows that Sharon Ausborn's salary for her appearances as a judge on the show is $500,000. NY Cee feels that he contributes just as much to the show as Sharon and is therefore also entitled to a $500,000 salary. However, while $500,000 is his ideal salary, he will accept a minimum salary of $420,000. NY Cee cannot go any lower than $420,000 because he needs that amount of money to be able to pay off his existing debts and maintain his lifestyle.

NY Cee is aware that a restraint of trade clause is a sensitive issue for Sharon Ausborn. He has been assured by industry insiders that these clauses are standard practice and therefore, while he is reluctant to agree to a restraint of trade clause, if Sharon Ausborn insists, he will agree to such a clause. NY Cee ideally wants a restraint of trade clause for a period of only six months after his contract comes to an end but, if pushed, will accept a clause for a maximum of 12 months. However, regardless of the length of the restraint of trade clause, NY Cee instructs that he will only accept a clause that is limited to preventing him from appearing onacting reality television shows that are aired in New Zealand during the period of the restraint of trade clause.

NY Cee also runs an acting recruitment agency, but he is finding it more and more difficult to recruit and retain actors, with many heading for richer pastures overseas. He sees The WOW Actor as a superb recruitment opportunity. He would therefore like an option to sign the 11 unsuccessful live performance contestants. Of course, he would like to have first pick of all 11 unsuccessful live performance contestants. However, he is prepared to agree to an option that allows him first pick of a minimum of five unsuccessful contestants. Although all the contestants are given a placing in the finale (i.e. first runner up to 11^th place), NY Cee does not really care which five (or more) of the unsuccessful contestants he gets first pick of. NY Cee thinks that every live performance contestant (whether first runner up or 11^th place) has the potential to be a superstar.

Finally, Sharon Ausborn's shake up of The WOW Actor has left NY Cee a little apprehensive about the future of the show and consequently his financial position. For peace of mind, NY Cee wants to negotiate a payout, in the event that the show is cancelled before the end of season two. Ideally he would like to receive $220,000, but he will not accept a payout of anything less than $160,000.

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