Common use of Second Class Clause in Contracts

Second Class. For a second-class production, Producer shall receive from Author the Percentage of the “net proceeds” paid (regardless of timing) to the Author as specified in Paragraph 4(c) below from any disposition made of any of Subsidiary Rights in the Play during the period commencing as of the date hereof and ending fifteen (15) years after the final performance of the last production of the Play presented hereunder; provided, however, that other than the disposition of motion picture and customary allied and ancillary rights, for which Producer shall participate in the net proceeds on a worldwide basis, Producer’s participation in all other rights dispositions shall be limited to the Territory, and any other territory in which Producer has 4 produced (or caused the production of) the Play for at least twenty one (21) performances, in which case Producer shall vest a 40% interest in the net proceeds paid (regardless of timing) from the disposition of any Subsidiary Rights in such foreign territory within fifteen (15) years from the date of the first paid public performance in such foreign territory. “Net proceeds” means gross proceeds, less applicable sales taxes and representative’s commission, if any, not exceeding a commission of 10% percent, except 20% percent with respect to amateur rights. For purposes of the immediately preceding sentence, each of the following shall be deemed a “foreign territory”: Japan; South Korea; German Speaking Territories (which shall include Germany, Austria, Switzerland, Lxxxxxxxxxxx, and Czech); Scandinavia (which shall include Sweden, Norway, Finland, Denmark, and Iceland); Far East (which shall include China, Hong Kong, Taiwan, Korea, Indonesia, Singapore, Cambodia, Vietnam, Malaysia, Thailand, and the Philippines); France & Benelux; Eastern Europe (which shall include CIS Countries, Poland, Slovakia, Hungary, and former Yugoslavia); Middle East (which shall include Israel, UAE, Kuwait, and Jordan); Iberia (which shall include Spain, Portugal, and Andorra); Latin America (which shall include, without limitation, Mexico, Brazil, and the Caribbean); and Africa.

Second Class. For a second-class production, Producer shall receive from Author the Percentage of the “net proceeds” paid (regardless of timing) to the Author as specified in Paragraph 4(c) below from any disposition made of any of Subsidiary Rights in the Play during the period commencing as of the date hereof and ending fifteen (15) years after the final performance of the last production of the Play presented hereunder; provided, however, that other than the disposition of motion picture and customary allied and ancillary rights, for which Producer shall participate in the net proceeds on a worldwide basis, Producer’s participation in all other rights dispositions shall be limited to the Territory, and any other territory in which Producer has 4 produced (or caused the production of) the Play for at least twenty one (21) performances, in which case Producer shall vest a 40% interest in the net proceeds paid (regardless of timing) from the disposition of any Subsidiary Rights in such foreign territory within fifteen (15) years from the date of the first paid public performance in such foreign territory. “Net proceeds” means gross proceeds, less applicable sales taxes and representative’s commission, if any, not exceeding a commission of 10% percent, except 20% percent with respect to amateur rights. For purposes of the immediately preceding sentence, each of the following shall be deemed a “foreign territory”: Japan; South Korea; German Speaking Territories (which shall include Germany, Austria, Switzerland, LxxxxxxxxxxxXxxxxxxxxxxx, and Czech); Scandinavia (which shall include Sweden, Norway, Finland, Denmark, and Iceland); Far East (which shall include China, Hong Kong, Taiwan, Korea, Indonesia, Singapore, Cambodia, Vietnam, Malaysia, Thailand, and the Philippines); France & Benelux; Eastern Europe (which shall include CIS Countries, Poland, Slovakia, Hungary, and former Yugoslavia); Middle East (which shall include Israel, UAE, Kuwait, and Jordan); Iberia (which shall include Spain, Portugal, and Andorra); Latin America (which shall include, without limitation, Mexico, Brazil, and the Caribbean); and Africa.

Second Class. For a second-class production, Producer shall receive from Author the Percentage of the “net proceeds” paid (regardless of timing) to the Author as specified in Paragraph 4(c) below from any disposition made of any of Subsidiary Rights in the Play during the period commencing as of the date hereof and ending fifteen (15) years after the final performance of the last production of the Play presented hereunder; provided, however, that other than the disposition of motion picture and customary allied and ancillary rights, for which Producer shall participate in the net proceeds on a worldwide basis, Producer’s participation in all other 4 rights dispositions shall be limited to the Territory, and any other territory in which Producer has 4 produced (or caused the production of) the Play for at least twenty one (21) performances, in which case Producer shall vest a 40% interest in the net proceeds paid (regardless of timing) from the disposition of any Subsidiary Rights in such foreign territory within fifteen (15) years from the date of the first paid public performance in such foreign territory. “Net proceeds” means gross proceeds, less applicable sales taxes and representative’s commission, if any, not exceeding a commission of 10% percent, except 20% percent with respect to amateur rights. For purposes of the immediately preceding sentence, each of the following shall be deemed a “foreign territory”: Japan; South Korea; German Speaking Territories (which shall include Germany, Austria, Switzerland, Lxxxxxxxxxxx, and Czech); Scandinavia (which shall include Sweden, Norway, Finland, Denmark, and Iceland); Far East (which shall include China, Hong Kong, Taiwan, Korea, Indonesia, Singapore, Cambodia, Vietnam, Malaysia, Thailand, and the Philippines); France & Benelux; Eastern Europe (which shall include CIS Countries, Poland, Slovakia, Hungary, and former Yugoslavia); Middle East (which shall include Israel, UAE, Kuwait, and Jordan); Iberia (which shall include Spain, Portugal, and Andorra); Latin America (which shall include, without limitation, Mexico, Brazil, and the Caribbean); and Africa.

Second Class. For a second-class production, Producer shall receive from Author the Percentage of the “net proceeds” paid (regardless of timing) to the Author as specified in Paragraph 4(c) below from any disposition made of any of Subsidiary Rights in the Play during the period commencing as of the date hereof and ending fifteen (15) years after the final performance of the last production of the Play presented hereunder; provided, however, that other than the disposition of motion picture and customary allied and ancillary rights, for which Producer shall participate in the net proceeds on a worldwide basis, Producer’s participation in all other 4 rights dispositions shall be limited to the Territory, and any other territory in which Producer has 4 produced (or caused the production of) the Play for at least twenty one (21) performances, in which case Producer shall vest a 40% interest in the net proceeds paid (regardless of timing) from the disposition of any Subsidiary Rights in such foreign territory within fifteen (15) years from the date of the first paid public performance in such foreign territory. “Net proceeds” means gross proceeds, less applicable sales taxes and representative’s commission, if any, not exceeding a commission of 10% percent, except 20% percent with respect to amateur rights. For purposes of the immediately preceding sentence, each of the following shall be deemed a “foreign territory”: Japan; South Korea; German Speaking Territories (which shall include Germany, Austria, Switzerland, LxxxxxxxxxxxXxxxxxxxxxxx, and Czech); Scandinavia (which shall include Sweden, Norway, Finland, Denmark, and Iceland); Far East (which shall include China, Hong Kong, Taiwan, Korea, Indonesia, Singapore, Cambodia, Vietnam, Malaysia, Thailand, and the Philippines); France & Benelux; Eastern Europe (which shall include CIS Countries, Poland, Slovakia, Hungary, and former Yugoslavia); Middle East (which shall include Israel, UAE, Kuwait, and Jordan); Iberia (which shall include Spain, Portugal, and Andorra); Latin America (which shall include, without limitation, Mexico, Brazil, and the Caribbean); and Africa.