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What does "Favored Nations" mean?

The term Favored Nations refers to an individually negotiated agreement between a producer and an individual actor which generally indicates that if other actors in the show (as specified) receive better terms (as specified) than this individual, then this individual will be entitled to those same terms. (It does not mean that everyone in the show is being paid the same.) Such an agreement takes the form of a rider to an individual employment contract. There is no such thing as a “Favored Nations Contract.”

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