A production deal of massive proportions by Canadian and even u.s. standards between Robert Lantos and Alliance Atlantis Communications will see the former Alliance ceo receive a $25,000 per episode producer fee from two tv shows and could result in a $40-million Canadian feature film.

According to aac’s information circular filed in relation to the Alliance-Atlantis merger, Lantos is attached as executive producer of both Power Play (ctv) and Cover Me (cbc) for the life of each series and will receive an executive producer fee of $25,000 per episode. Lantos will also receive a minimum of $200,000 in producer fees from each of two untitled television movies his new company Serendipity Point Films will produce for aac.

On the feature film side, Lantos is entitled to a producer fee of 5% of the budget or $400,000, whichever is higher, for each film he produces from the $100-million production fund provided by aac.

Serendipity will be the exclusive u.s. sales agent on the films Lantos produces. Lantos will make the u.s. distribution deals and will be paid a 5% sales commission. aac is entitled to worldwide distribution rights.

Lantos is also entitled to receive a net-profit participation ranging from one-third to one-half of Alliance’s net-profit participation in each film project delivered under the agreement or 20% of all net profits derived from any such feature film project, whichever is greater.

As an executive producer, Lantos and Serendipity have been given seven films from Alliance’s development slate including Roman Polanski’s adaptation of The Count of Monte Cristo, Costa Gavras’ No Other Life, In The Skin Of The Lion based on the book by Michael Ondaatje, and Barney’s Version based on the book by Mordecai Richler.

During the four-year period during which the production agreement is in effect, Lantos may produce as many feature films as he elects as long as the combined budgets do not exceed the $100-million production fund financed by aac. No film may have a budget of less than $4 million, while one film may have a budget of up to $40 million and one may have a budget of up to $25 million.

When asked about the terms of his deal with aac, Lantos says, ‘I founded the company and I was it’s largest shareholder.

‘Without me there is no deal.’

aac chairman and ceo, Michael MacMillan says Lantos’ production deal ‘is good for the company and good for Robert [but] I don’t think it is unprecedented.’

‘As we were negotiating it we took into consideration what we and what our professional advisors were aware of in other deals,’ he says. ‘It is a big deal and it’s an important deal, but its size and its structure are quite wise in that they incite both Robert and the company to make the most of it.

‘We’re both driven to make and distribute the films as well as possible, and his compensation is substantially paid out to him on the success of the motion pictures,’ says MacMillan, adding that Lantos is responsible for any cost overruns, not aac.