Common use of Residual Basic Increases Clause in Contracts

Residual Basic Increases. Audio-Visual Content Residual Basic Escalator 1st Broadcast % 1st Broadcast % 15 Royalties - General 15.1 The BBC can choose to make royalty payments for any and all Secondary Uses (except Repeat Broadcasts or for Commercial Audio Exploitation) as an alternative to Residual Buy-Out Fees. 15.2 Such royalties shall be: 15.2.1 calculated as the following percentage of the BBC’s gross income received by the BBC, or in the case of co-productions with third-parties, deemed gross receipts. However, in the case of Home Video Exploitation where BBC Worldwide/2Entertain (or other distributor associated with the BBC) or the BBC (including its licensees and assigns) is the distributor certain reasonable deductions as may be agreed with the MU; and 15.2.2 shared between the relevant Musicians, pro-rata according to their Residual Basic. 15.3 Following a royalty payment for a particular Secondary Use, the BBC may not then pay a Residual Buy-Out Fee to terminate royalty payments for the same Secondary Use without the prior consent of the MU. 15.4 Accounting (applicable to all forms of Commercial Exploitation except Home Video Exploitation):

Residual Basic Increases. Audio-Visual Content Residual Basic Escalator 1st Broadcast % 1st Broadcast % 15 Royalties - General 15.1 The BBC can choose to make royalty payments for any and all Secondary Uses (except Repeat Broadcasts or for Commercial Audio Exploitation) as an alternative to Residual Buy-Out Fees. 15.2 Such royalties shall be: 15.2.1 calculated as the following percentage of the BBC’s (as per “Definitions” below) gross income received by the BBC, or in the case of co-productions with third-parties, deemed gross receipts. However, in the case of Home Video Exploitation where BBC Worldwide/2Entertain (or other distributor associated with the BBC) or the BBC (including its licensees and assigns) is the distributor certain reasonable deductions as may be agreed with the MU; and 15.2.2 shared between the relevant Musicians, pro-rata according to their Residual Basic. 15.3 Following a royalty payment for a particular Secondary Use, the BBC may not then pay a Residual Buy-Out Fee to terminate royalty payments for the same Secondary Use without the prior consent of the MU. 15.4 Accounting (applicable to all forms of Commercial Exploitation except Home Video Exploitation):

Residual Basic Increases. Audio-Visual Content Residual Basic Escalator 1st Broadcast % 1st Broadcast % 15 Royalties - General 15.1 The BBC can choose to make royalty payments for any and all Secondary Uses (except Repeat Broadcasts or for Commercial Audio Exploitation) as an alternative to Residual Buy-Out Fees. 15.2 Such royalties shall be: 15.2.1 calculated as the following percentage of the BBC’s (as per “Definitions” below) gross income received by the BBC, or in the case of co-productions with third-parties, deemed gross receipts. However, in the case of Home Video Exploitation where BBC Worldwide/2Entertain (or other distributor associated with the BBC) or the BBC (including its licensees and assigns) is the distributor certain reasonable deductions as may be agreed with the MU; and 15.2.2 shared between the relevant Musicians, pro-rata according to their Residual Basic. 15.3 Following a royalty payment for a particular Secondary Use, the BBC may not then pay a Residual Buy-Out Fee to terminate royalty payments for the same Secondary Use without the prior consent of the MU. 15.4 Accounting (applicable to all forms of Commercial Exploitation except Home Video Exploitation):