Hollywood megastar Tom Cruise has reportedly been given a pay cut in his production deal with Paramount Pictures. The actor and his business partner Paula Wagner's previous deal allowed them a budget of up to $10 million (GBP5.5 million) a year to cover overheads and develop films through their company Cruise/Wagner Productions. According to the Los Angeles Times newspaper, new Paramount head Brad Grey - who took over last year (05) - told Cruise's company the studio was not in a position to renew the same contract after it expired last month (31JUL06). Paramount funded Cruise's latest movie MISSION: Impossible III, which is expected to take up to $400 million (GBP222 million) in the international box office, but due to Cruise's expected profit margin, the studios will only just break even. The actor's lawyer BERTRAM FIELDS says, "We received an offer and we are digesting it. We will sit and talk about it. It is not the case that they said this is a take-it-or-leave-it offer. I don't think my friends at Paramount would ever talk that way." Paramount spokeswoman JANET HILL says, "We have the utmost respect for Tom Cruise and Cruise/Wagner Productions. We are currently in discussions to renew their deal." The Times claims Paramount have offered Cruise $2 million (GBP1.1 million) a year in a prospective new deal, which means the actor will have to pay his staff himself.