Common use of Underspend Clause in Contracts

Underspend. For Programme(s) contracted on a Budgeted Cost basis: (i) If the Producer shall have duly delivered the Programme(s) in accordance with the terms of this Agreement and Channel 4 shall be satisfied that the production and delivery of the Programme(s) below Budgeted Cost has not been achieved by unjustified reduction in the cost of any Budget item and has been delivered in accordance with the Editorial Specification and as envisaged prior to the production then the Producer shall be entitled to retain or be paid 100% of any excess of the Budgeted Cost over the aggregate cost of production of the Programme(s) as shown by the statement of the cost of production or accountant’s certificate to be delivered hereunder. (ii) Notwithstanding the foregoing the proportion of the provision for contingencies provided by the Channel 4 Licence Fee included in the Budgeted Cost and any provision included in the approved Budget which as a result of a change in Channel 4's editorial requirements (any change to have been confirmed in writing by the parties) is not required during production or prior to Delivery shall not form part of the Budgeted Cost and accordingly any underspend falling within these provisions shall be returned to Channel 4. (iii) For the avoidance of doubt the first call to fund any overspend is an underspend in another Budget area and any call on the contingency will (unless Channel 4 otherwise then in writing agrees) be made only if there are no available underspends in other Budget areas.

Underspend. For Programme(s) contracted on a Budgeted Cost basis: (i) If the Producer shall have duly delivered the Programme(s) in accordance with the terms of this Agreement and Channel 4 shall be satisfied that the production and delivery of the Programme(s) below Budgeted Cost has not been achieved by unjustified reduction in the cost of any Budget item and has been delivered in accordance with the Editorial Specification and as envisaged prior to the production then the Producer shall be entitled to retain or be paid 100% of any excess of the Budgeted Cost over the aggregate cost of production of the Programme(s) as shown by the statement of the cost of production or accountant’s certificate to be delivered hereunderhereunder . (ii) Notwithstanding the foregoing the proportion of the provision for contingencies provided by the Channel 4 Licence Fee included in the Budgeted Cost and any provision included in the approved Budget which as a result of a change in Channel 4's editorial requirements (any change to have been confirmed in writing by the parties) is not required during production or prior to Delivery shall not form part of the Budgeted Cost and accordingly any underspend falling within these provisions shall be returned to Channel 4. (iii) For the avoidance of doubt the first call to fund any overspend is an underspend in another Budget area and any call on the contingency will (unless Channel 4 otherwise then in writing agrees) be made only if there are no available underspends in other Budget areas.