AMENDED & RESTATED DIGITAL MUSIC DOWNLOAD SALES AGREEMENT
AMENDED
& RESTATED DIGITAL MUSIC DOWNLOAD SALES AGREEMENT
This
Agreement is by and between “ITUNES” and “COMPANY”, as each is identified on the
attached Cover Sheet, and is entered into as of the Effective Date (as defined
herein).
WHEREAS,
ITUNES and COMPANY are parties to one or more Current Agreement(s) (as defined
herein);
WHEREAS,
ITUNES desires and, in exchange for ITUNES’ obligations herein, COMPANY is
willing to allow ITUNES to sell COMPANY’s content in digital form on modified
terms as provided herein;
NOW,
THEREFORE, in consideration of the mutual promises and agreements set forth
herein, and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, ITUNES and COMPANY (each a “Party” and
collectively, “Parties”) hereby amend and restate the Current Agreement(s),
effective as of the Effective Date (as defined herein), in this single Agreement
as follows:
1.
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Definitions.
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The
following terms shall have the following meanings for purposes of this
Agreement:
(a)
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“Content
File”
means each digital file containing COMPANY Content, applicable Artwork
(if
any), parental advisory notices (if any), copyright notices (if any),
and
associated metadata (e.g., artist name, track or video title, track
or
video title version (if applicable), territories cleared for sale,
copyright notice, ISRC, UPC and corresponding album title (if applicable)
and editorial content data (if
any)).
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(b)
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“Content
Usage Rules”
means the usage rules applicable to COMPANY Content in the form of
Regular
eMasters and Plus eMasters available on the Online Store that specify
the
terms under which a Regular eMaster and Plus eMaster, respectively,
may be
used, as set forth in Exhibit A attached hereto, and which may be
modified
by ITUNES from time to time, subject to prior written approval by
COMPANY
(such approval or disapproval not to be unreasonably delayed) in
the event
of a material change to such usage
rules.
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(c)
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“Security
Solution”
means the proprietary Apple content protection system marketed as
Fairplay, in effect as of the Effective Date used to protect Regular
eMasters (but, for avoidance of doubt, not Plus eMasters) sold on
the
Online Store pursuant to this Agreement, which content protection
system
shall be no less protective than the protection system used to protect
similar third party content sold on the Online Store, and which may
be
modified by ITUNES from time to time, subject to prior written approval
by
COMPANY (such approval not to be unreasonably withheld, delayed or
conditioned) in the event of a material change to such content protection
system such that Regular eMasters are being protected less than
before.
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(d)
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“eMaster"
or "eMasters”
means copies of COMPANY Content in digital form suitable for exploitation
on the Online Store, in the Format and (i) having the Security Solution
(“Regular eMasters”) or (ii) having no Security Solution (“Plus
eMasters”), which ITUNES may sell on the Online Store pursuant to the
terms and conditions of this
Agreement.
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(e)
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“Format”
or “Formatting”
means the digital format for content set forth in Exhibit C-1 attached
hereto or the process of converting content into
eMasters.
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(f)
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“Non-Transfer
Device”
means a device, such as an iPod or a cell phone, having the Security
Solution, which can receive eMasters by any means for their storage
and/or
playback via proprietary Apple software, but which cannot transfer
eMasters with their content rights keys to any other
device.
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(g)
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“Transfer
Device”
means a device, such as a computer, having the Security Solution,
which
can receive eMasters by any means for their storage and/or playback
via
proprietary Apple software, transfer eMasters with their content
rights
keys to any Non-Transfer Device or Transfer Device and/or burn audio-only
eMasters as an audio CD.
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(h)
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“Fulfillment
Activities”
means sales activities relating to the sale and delivery of eMasters,
provided by COMPANY, pursuant to the terms and conditions of this
Agreement.
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(i)
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“Current
Agreement”
means any DIGITAL MUSIC DOWNLOAD SALES AGREEMENT or DIGITAL VIDEO
DOWNLOAD
SALES AGREEMENT by and between COMPANY and ITUNES that is in effect
as of
the date this Agreement is signed by both Parties and the territory
of
which includes any part of the Territory (as defined herein). The
Current
Agreement with the earliest effective date is referred to as the
“Earliest
Current Agreement.”
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(j)
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“Effective
Date”
means the Signature Date.
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(k)
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“Term”
means the period beginning on the Effective Date, and ending on the
date
the Earliest Current Agreement is set to expire (“Current Expiration
Date”), except (i) if the Current Expiration Date is less than one year
from the Signature Date, then the Term shall end two years after
the
Current Expiration Date, or (ii) if the Current Expiration Date is
less
than two years, but not less than one year, from the Signature Date,
then
the Term shall end one year after the Current Expiration Date. The
Term
shall automatically renew for additional, successive three-year periods
unless either Party provides written notice to the other Party of
its
intent to terminate this Agreement at least ninety (90) days prior
to the
expiration of the then-effective
Term.
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(l)
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“Territory”
means the United States, its territories and possessions (collectively,
“United States”), and Canada, its territories, and provinces, including
Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland
and
Labrador, Northwest Territories, Nova Scotia, Nunavut, Ontario, Xxxxxx
Xxxxxx Island, Quebec, Saskatchewan and Yukon (collectively,
“Canada”).
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(m)
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“Online
Store”
means an electronic store and its storefronts branded, and owned
and/or
controlled by ITUNES or an affiliate of
ITUNES.
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(n)
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“Regular
COMPANY Content”
means sound recordings owned or controlled by COMPANY and in which
COMPANY
has cleared (as provided in Section 4 below) the necessary rights
to
authorize electronic sales and sound recording performances in Regular
eMaster format by ITUNES pursuant to the terms of this Agreement.
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(o)
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“Plus
COMPANY Content”
means sound recordings owned or controlled by COMPANY and in which
COMPANY
has cleared (as provided in Section 4 below) the necessary rights
to
authorize electronic sales and sound recording performances in Plus
eMaster format by ITUNES pursuant to the terms of this
Agreement.
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(p)
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“COMPANY
Content”
means Regular COMPANY Content and Plus COMPANY Content. All sound
recordings that are provided by or on behalf of COMPANY to ITUNES
are
deemed owned or controlled by COMPANY and cleared by COMPANY as provided
in Section 4 below.
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(q)
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“Artwork”
means album cover artwork, screen shots and/or any other artwork
relating
to COMPANY Content that COMPANY has cleared for use by ITUNES in
accordance with Section 2 below. All artwork that is provided by
or on
behalf of COMPANY to ITUNES is deemed cleared by
COMPANY.
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2.
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Authorization.
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(a)
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Subject
to the terms of this Agreement, COMPANY hereby appoints ITUNES as
a
reseller of eMasters in the Territory. Accordingly, COMPANY hereby
grants
a non-exclusive right to ITUNES, during the Term,
to:
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i.
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reproduce
and Format COMPANY Content delivered by COMPANY or by COMPANY’S
representative designated by COMPANY in writing into
eMasters;
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ii.
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perform,
exhibit and make available by streaming clips of the COMPANY Content
(“Clips”) to promote the sale of applicable eMasters on the Online Store
in accordance with Exhibit C-1;
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iii.
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promote,
market, sell, distribute, perform and electronically fulfill and
deliver
eMasters and associated metadata to purchasers via the Online
Store;
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iv.
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reproduce,
display, distribute and electronically fulfill and deliver Artwork
for
personal use solely in conjunction with the applicable purchased
eMaster;
and
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v.
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use
COMPANY Content, Artwork and metadata as may be reasonably necessary
or
desirable for ITUNES to exercise ITUNES’ rights under the terms of this
Agreement.
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(b)
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ITUNES
shall not be authorized to use COMPANY Content or Artwork in any
manner or
form not expressly authorized herein, provided that ITUNES may modify
metadata as reasonably necessary to correct errors or to append sub-genres
or like information for artist and content categories. Nothing in
this
Agreement shall be construed to prevent COMPANY from marketing or
selling
COMPANY Content or Artwork by any
means.
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(c)
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ITUNES
shall not pledge, mortgage or otherwise encumber any part of the
COMPANY
Content, eMasters, or Artwork.
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3.
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COMPANY
Obligations.
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(a)
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Except
for a special circumstance, such as an exclusive, limited-time, one-off
promotion for particular COMPANY Content, or for a reason beyond
COMPANY’s
control (e.g., a third party contractual restriction), or as otherwise
agreed by the Parties, COMPANY (or a third party designated by COMPANY
in
writing and approved by ITUNES) shall commence delivery of all existing
COMPANY Content as soon as reasonably possible following the Effective
Date, and prospectively during the Term, for just cleared COMPANY
Content
and new releases, at least in time for ITUNES to begin selling eMasters
the earlier of a general release date, provided by COMPANY, or when
any
other distributor is permitted to begin selling, or making commercially
available, COMPANY Content in any format. COMPANY may provide written
notice to ITUNES, at the time that COMPANY delivers particular COMPANY
Content to ITUNES (and, for any already-delivered COMPANY Content,
no
later than the Effective Date), that such COMPANY Content is not
authorized hereunder to be sold as Plus eMasters (“Plus Excluded
Content”); provided, however, that (i) COMPANY may not provide such notice
for any COMPANY Content that COMPANY permits any other distributor
to
sell, or otherwise make commercially available, DRM-free in the Territory
and (ii) if COMPANY subsequently permits any other distributor to
begin
selling, or otherwise making commercially available, any Plus Excluded
Content DRM-free in the Territory, then COMPANY shall withdraw such
notice
at least in time for ITUNES to begin selling the applicable Plus
Excluded
Content as Plus eMasters at the same time as any such other
distributor.
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(b)
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Except
as otherwise agreed by the Parties, COMPANY shall make all COMPANY
Content
that COMPANY authorizes herein for sale on the Online Store available
in
both a so-called “single” format and in a multi-track "album" format.
ITUNES may sell eMasters on the Online Store in the format that ITUNES
believes most favorably furthers the commercial
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purpose
of this Agreement and otherwise in accordance with ITUNES’ then-current
Online Store business
practices.
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(c)
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COMPANY
shall deliver Content Files to ITUNES, at COMPANY'S expense, in the
Delivery Format and via the Delivery Method set forth in Exhibit
C-1
attached hereto.
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4.
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Royalties.
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(a)
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United
States:
For uses of COMPANY Content authorized hereunder with respect to
sales in
the United States, COMPANY shall be responsible for and timely pay:
(i)
all record royalties to artists, producers, performers, musicians
and
other record royalty participants for the manufacture, storage,
distribution and sale of eMasters, (ii) all reproduction and distribution
(i.e., mechanical) royalties payable to composers, lyricists, authors
and
publishers of compositions embodied in eMasters for the manufacture,
storage, distribution and sale of eMasters, (iii) all payments that
may be
required under collective bargaining agreements applicable to COMPANY
or
third parties other than ITUNES, and (iv) any other royalties, fees
and/or
sums payable with respect to the sound recordings, Artwork, metadata
and
other materials provided by COMPANY and/or ITUNES’ authorized use thereof
hereunder.
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(b)
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Canada:
For uses of COMPANY Content authorized hereunder with respect to
sales in
Canada:
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i.
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COMPANY
shall be responsible for and timely pay: (A) all record royalties
to
artists, producers, performers, musicians and other record royalty
participants for the manufacture, storage, distribution and sale
of
eMasters, (B) all payments that may be required under collective
bargaining agreements applicable to COMPANY or third parties other
than
ITUNES, and (C) any other royalties, fees and/or sums payable with
respect
to the sound recordings, Artwork, metadata and other materials provided
by
COMPANY and/or ITUNES’ authorized use thereof
hereunder.
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ii.
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ITUNES
shall be responsible for obtaining reproduction and distribution
(i.e.,
mechanical) rights, and song performance (i.e., communication to
the
public) rights, from, and for making and making arrangements for
payments,
royalties or sums payable to, composers, lyricists, authors and music
publishers as may be reasonably necessary for the commercial exploitation
hereunder of the compositions embodied in eMasters (“Author’s Rights”);
provided, however, that (notwithstanding any other provision in this
Agreement) ITUNES’ responsibilities under this paragraph 4(b)(ii) apply
only to COMPANY Content for which reproduction rights in Canada may
be
cleared and paid through CMRRA-SODRAC, Inc. (hereafter, “CSI Content”) and
that ITUNES shall make payments related to reproduction rights in
any
COMPANY Content only to CMRRA-SODRAC, Inc. and to no other party.
COMPANY
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understands
and acknowledges that ITUNES shall have no obligations whatsoever
under
this paragraph 4(b)(ii) for any COMPANY Content that is not CSI Content
(“non-CSI Content”), and that all responsibility for rights clearances and
payments related to Authors’ Rights for any non-CSI Content which COMPANY
authorizes ITUNES to exploit in Canada hereunder shall rest with
COMPANY.
To the extent that COMPANY owns or controls any part of the Authors’
Rights in any COMPANY Content, COMPANY shall not withhold such rights
in
any way that could frustrate the purpose of this Agreement. The Parties
acknowledge that the wholesale prices set forth in Exhibit B-1 reflect
a
deduction for Author’s Rights at the prevailing industry-wide royalty
rates (currently estimated at eight percent (8%) of retail price)
and
that, in the event that higher or lower prevailing industry-wide
royalty
rates are established (whether by a court or tribunal within the
Territory
or through negotiations), then the wholesale prices set forth in
Exhibit
B-1 shall be prospectively reduced or increased (as the case may
be) using
such established industry-wide royalty
rates.
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5.
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Wholesale
Price.
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ITUNES
shall pay COMPANY for eMasters sold by ITUNES hereunder the applicable wholesale
prices set forth in Exhibit B-1, which wholesale prices shall remain in effect
throughout the Term (subject to Section 4(b)(ii), if applicable).
ITUNES
shall
provide notice (which may be by email) at least five (5) days prior to an
increase in the retail price of an eMaster in any format (e.g., single-track,
multi-track), and shall consider COMPANY’s views in relation to such increase in
price.
For
avoidance of doubt, ITUNES reserves the right to determine the retail price
in
its sole discretion.
6.
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ITUNES
Obligations.
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(a)
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ITUNES
shall condition sale and delivery of eMasters upon an end user’s
acknowledgement of terms of use for such eMasters (“Terms of Use”), which
Terms of Use shall be no less restrictive than the Content Usage
Rules,
and shall state that the sale of eMasters does not transfer to purchaser
any commercial or promotional use rights in the
eMasters.
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(b)
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Subject
to Section 4, ITUNES shall be responsible for all costs associated
with
ITUNES’ Fulfillment Activities.
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(c)
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If
there is a change of circumstance during the Term as a result of
which
COMPANY reasonably believes that it does not have, or no longer has,
the
rights necessary to authorize ITUNES to use any COMPANY Content or
Artwork
as provided for herein, or COMPANY reasonably believes that ITUNES’
continued sale of any COMPANY Content or Artwork will substantially
harm
COMPANY’s relations, or violates the terms of any of COMPANY’S agreements,
with any applicable copyright owner, artist, producer, director (in
the
case of audio-visual content) or distributor (each a “Clearance Issue”),
then COMPANY shall have the right to withdraw, upon
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written
notice to ITUNES’ designated representative, authorization for the sale of
such COMPANY Content or Artwork to the extent of such Clearance Issue.
Following ITUNES’ receipt of such written notice by COMPANY, ITUNES shall
cease to offer such COMPANY Content or Artwork for sale as specified
in
the notice within three (3) business days after ITUNES’ receipt of such
notice of withdrawal, and COMPANY shall use commercially reasonable
efforts to clear such withdrawn COMPANY Content or Artwork and shall
promptly notify ITUNES if and when such COMPANY Content or Artwork
has
been cleared and is again authorized for sale by ITUNES as provided
herein. COMPANY shall not withdraw any authorization with respect
to
COMPANY Content or Artwork if COMPANY continues to provide such
authorization to any other on-line digital distributor of COMPANY
Content. ITUNES’
current designated representative for such notices is
xxxxxxxxxxxxxx@xxxxx.xxx. ITUNES may, from time to time, change the
designated representative and means for giving written notice by
posting a
notice on its iTunes Connect
site.
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(d)
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ITUNES
reserves the right to pull-down, or not offer for sale, any COMPANY
Content or Artwork in the event a third party claims that ITUNES
is not
authorized to sell or otherwise use such COMPANY Content or Artwork
on the
Online Store, in which case COMPANY shall cooperate with ITUNES’
reasonable requests towards handling such third party
claim.
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7.
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Parental
Advisory.
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If
COMPANY provides an appropriate parental advisory warning about a particular
eMaster in the Content File, ITUNES shall conspicuously display such parental
advisory when other information about such eMaster is displayed. COMPANY shall
be responsible for determining parental advisory warning status.
8.
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Payment
and Reports.
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(a)
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ITUNES
shall remit payment to COMPANY for the sale of eMasters in accordance
with
the following: (i) the “sale” of each eMaster shall occur when such
eMaster is successfully delivered by ITUNES to an end user; (ii)
payments
shall accrue at the time that such eMaster is sold; and (iii) for
each
eMaster sold, ITUNES shall pay to COMPANY an amount equal to the
wholesale
price for the applicable eMaster (collectively “eMaster
Proceeds”).
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(b)
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ITUNES
shall pay eMaster Proceeds to COMPANY in the amount set forth in
a xxxxxx
sales report reflecting all sales of eMasters and corresponding eMaster
Proceeds for the particular xxxxxx period (“Sales Report”) and in
accordance with ITUNES standard business practices after the end
of each
xxxxxx period during the Term. ITUNES will make each Sales Report
available to COMPANY via the proprietary iTunes Connect site (free
access
to which is provided by ITUNES to COMPANY during the Term pursuant
to
applicable terms and conditions) and will notify COMPANY via email
when
each Sales Report is available. ITUNES may modify the foregoing process
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***
Certain information on this page has been omitted and filed separately with
the
Commission. Confidential treatment has been requested with respect to the
omitted provisions.
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in
its reasonable discretion upon xxxxxx written notice. For avoidance
of
doubt, eMaster Proceeds shall constitute COMPANY’s full consideration
hereunder.
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(c)
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ITUNES
may withhold any taxes, duties, charges or levies on payments by
ITUNES to
COMPANY pursuant to this Agreement as may be required by applicable
law,
rule or regulation. ITUNES shall remit any such withheld taxes, duties,
charges or levies to the appropriate tax authority. Despite the foregoing,
provided COMPANY has fully satisfied all requirements to document
its
eligibility for a lower or zero rate of withholding tax, including,
without limitation, providing ITUNES with a valid Certificate of
Residency, ITUNES shall withhold based on the lower withholding tax
rate,
or, if applicable, shall not
withhold.
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(d)
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Payments
made by ITUNES to COMPANY hereunder shall be by electronic funds
transfer
(“EFT”), and COMPANY shall be responsible for any of COMPANY’S bank
transaction costs or fees arising from such payment. COMPANY shall
provide
ITUNES with COMPANY’S banking information reasonably necessary to effect
payment (on a form to be provided to COMPANY by ITUNES), including
but not
limited to:
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i.
Bank
Name
ii.
Account Name
iii.
Account Number
iv.
Routing Number
v.
Royalty Accounting Contact: (Name, Address, Email, Fax, Tel.)
9.
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Names
and Likenesses; Promotional Use and Opportunities.
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(a)
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ITUNES
may use the names and authorized likenesses of, and biographical
material
concerning, any eMaster artists, bands, producers, directors (in
the case
of audio-visual content) and/or songwriters (each, a “Talent”), as well as
track title and/or album name, and Artwork, in any ITUNES marketing
materials for the sale, promotion and advertising of the applicable
eMaster which is offered for sale on the Online Store under the terms
of
this Agreement (e.g., an artist or band name and likeness may be
used in
an informational fashion, such as textual displays or other informational
passages, to identify and represent authorship, production credits,
and
performances of the applicable artist or band in connection with
the
authorized exploitation of applicable eMasters). Further written
approval
of COMPANY shall be required if any Talent’s name or likeness is otherwise
used as an endorsement of ITUNES, the Online Store, or other
products.
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(b)
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ITUNES
shall have the unrestricted right to market, promote and advertise
the
Online Store and content available for purchase on the Online Store
as it
determines in its discretion. Without limiting the foregoing, ITUNES
shall
have the right to determine which content, irrespective of any particular
record company, label or other content provider affiliation, would
best
further the commercial purpose of the Online Store, and to promote
such
content more than others.
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***
Certain information on this page has been omitted and filed separately with
the
Commission. Confidential treatment has been requested with respect to the
omitted provisions.
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10.
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Copyright
Notices; Ownership.
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(a)
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COMPANY
may provide a copyright notice (which shall be not more than 21 characters
in length) for applicable COMPANY Content and associated Artwork
in the
Content File, in which case ITUNES shall include such copyright notice
in
a manner that can be viewed prior to purchase of such eMaster. ITUNES
shall not knowingly defeat, impair or alter any watermark in COMPANY
Content, including any related Artwork or materials delivered by
COMPANY
hereunder.
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(b)
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As
between the Parties, all right, title and interest in and to (i)
the
COMPANY Content, (ii) the eMasters, excluding the Security Solution,
(iii)
the Clips, (iv) all copyrights and equivalent rights embodied therein,
and
(v) all materials furnished by COMPANY, except as to any rights of
ITUNES
(whether pre-existing or under this Agreement), shall remain the
property
of COMPANY, it being understood that under no circumstances shall
ITUNES
have any lesser rights than it would have as a member of the
public.
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11.
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Press
Release.
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Without
limiting the provisions of Section 16, COMPANY shall not make or issue any
public statement or press release regarding this Agreement or its subject matter
without prior written approval from ITUNES.
12.
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Data
Protection.
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(a)
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ITUNES
shall use the Security Solution for Regular eMasters, which shall
be no
less protective of COMPANY Content than any other security solution
provided by ITUNES for any other sound recordings on the Online Store.
If
the Security Solution is compromised such that Regular eMasters have
been
unencrypted and are being widely used without restriction, having
an
adverse material effect on the commercial intent of this
Agreement
xxxxxx. The foregoing shall
constitute ITUNES’ sole obligation and COMPANY’s sole remedy from ITUNES
in the event of such a security breach. For avoidance of doubt, this
Section 12(a) shall not apply to Plus
eMasters.
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(b)
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Despite
anything to the contrary, in the event that ITUNES receives notice
of a
security breach of the servers
or
network components that
store COMPANY Content or Artwork on the Online Store such that
unauthorized access to COMPANY Content or Artwork becomes available
via
the Online Store xxxxxx
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***
Certain information on this page has been omitted and filed separately with
the
Commission. Confidential treatment has been requested with respect to the
omitted provisions.
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xxxxxx
which shall be ITUNES’ sole obligation and COMPANY’s sole remedy from
ITUNES in the event of such a security
breach.
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(c)
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COMPANY
Content in ITUNES’ control or possession shall reside on one or more
network servers, workstations or equivalent devices owned or controlled
by
ITUNES or its contractors, each of which shall be secured with restricted
access.
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13.
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Record-Keeping
and Audit
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(a)
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ITUNES
shall maintain and keep complete and accurate books and records concerning
the amounts payable to COMPANY arising from transactions relating
to
ITUNES’ sale of xxxxxx.
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(b)
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Upon
reasonable advance written notice xxxxxx, during the Term and for
up to
xxxxxx thereafter (the “Audit Period”), COMPANY, at COMPANY’s sole
expense, may appoint an independent certified public accountant not
then
engaged in any audit of ITUNES or COMPANY to audit applicable books
and
records of ITUNES at ITUNES’ principal place of business in the Territory
for the sole purpose of verifying the amounts due from ITUNES to
COMPANY
hereunder. Such audit shall take place during regular business hours,
and
shall not occur more than once during any twelve (12) month period.
The
certified public accountant shall not be engaged on a contingency-fee
basis and must sign and deliver to ITUNES a confidentiality agreement
in a
form acceptable to ITUNES that protects ITUNES’ confidential information
no less than the terms of this Agreement and no less than COMPANY
protects
its own similar information. COMPANY may audit information contained
in a
particular statement only once, and no audit shall be allowed or
conducted
for a period spanning less than six (6)
months.
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(c)
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COMPANY
shall be deemed to have consented to all accountings rendered by
ITUNES
hereunder, and said accountings shall be binding upon COMPANY and
shall
not be subject to any objection by COMPANY for any reason unless
specific
objections are provided to ITUNES in writing during the Audit Period.
COMPANY agrees that ITUNES’ books and records contain “Confidential
Information” (as defined below).
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14.
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Termination
and Effect of Termination.
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(a)
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Either
Party shall have the right to terminate this Agreement prior to the
expiration of the Term in the event that the other Party (i) becomes
insolvent, (ii) files a petition in bankruptcy, (iii) makes an assignment
for the benefit of creditors, or (iv) breaches any material
representation, obligation or covenant contained herein, unless such
breach is cured prospectively, no later than thirty (30) days from
the
date of receipt of notice of such
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***
Certain information on this page has been omitted and filed separately with
the
Commission. Confidential treatment has been requested with respect to the
omitted provisions.
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breach,
or if not able to be so cured, then resolved to the other Party’s
satisfaction, not to be unreasonably
withheld.
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(b)
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Sections
1, 4, 6b, 8, 10b, 11, 13, 14, 15, 16, 17, and 18 shall remain in
full
force and effect following the expiration or earlier termination
of this
Agreement. The expiration or earlier termination of this Agreement
shall
not relieve COMPANY or ITUNES of its respective obligations to make
any
payments with respect to the sale of eMasters in the periods prior
to such
expiration or termination (and the associated accounting) in accordance
with this Agreement.
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(c)
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Upon
the expiration or earlier termination of this Agreement, all COMPANY
Content, eMasters, Clips, and Artwork in ITUNES’ possession or control
shall be promptly deleted or destroyed, excluding any archival copies
maintained in accordance with ITUNES’ standard business practices or
required to be maintained by applicable law, rule or
regulation.
|
15.
|
Indemnification
and Limitation of Liability.
|
(a)
|
ITUNES
will indemnify and hold harmless, and upon COMPANY’S request, defend,
COMPANY and its affiliates (and their respective directors, officers
and
employees) from and against any and all losses, liabilities, damages,
costs and expenses (including reasonable attorneys' fees and costs)
arising out of a claim by a third party by reason of: (i) any use
by
ITUNES of the COMPANY Content or Artwork in breach of this Agreement;
(ii)
a breach of any warranty, representation, covenant or obligation
of ITUNES
under this Agreement; or (iii) any claim that the technology used
by
ITUNES in the Fulfillment Activities infringes the intellectual property
rights of another party. ITUNES will reimburse COMPANY and its affiliates
on demand for any payments actually made in resolution of any liability
or
claim that is subject to indemnification under this Section 15, provided
that COMPANY obtains ITUNES’ written consent prior to making such
payments. COMPANY shall promptly notify ITUNES of any such claim,
and
ITUNES may assume control of the defense or settlement of such claim.
COMPANY shall have the right, at its expense, to participate in the
defense thereof under ITUNES’
direction.
|
(b)
|
COMPANY
will indemnify and hold harmless, and upon ITUNES’ request, defend, ITUNES
and its affiliates and contractors (and their respective directors,
officers and employees) from and against any and all losses, liabilities,
damages, costs or expenses (including reasonable attorneys' fees
and
costs) arising out of a claim by a third party by reason of: (i)
a breach
of any warranty, representation, covenant or obligation of COMPANY
under
this Agreement; or (ii) excluding the rights that ITUNES is responsible
for under Section 4(b)(ii) (if applicable), any claim that any COMPANY
Content, Artwork, metadata or any other materials provided or authorized
by or on behalf of COMPANY hereunder or ITUNES’ use thereof violates or
infringes the rights of another party. COMPANY will reimburse ITUNES
and
its affiliates on demand for any payments actually made in resolution
of
any liability or claim that is subject to indemnification under this
Section
|
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32
|
15,
provided that ITUNES obtains COMPANY’s written consent prior to making
such payments. ITUNES shall promptly notify COMPANY of any such claim,
and
COMPANY may assume control of the defense or settlement of such claim.
ITUNES shall have the right, at its expense, to participate in the
defense
thereof under COMPANY’s direction.
|
(c)
|
EXCEPT
PURSUANT TO AN EXPRESS INDEMNITY OBLIGATION, IN NO EVENT SHALL EITHER
PARTY BE LIABLE TO THE OTHER PARTY FOR INDIRECT, INCIDENTAL, CONSEQUENTIAL
OR SPECIAL DAMAGES, INCLUDING LOSS OF PROFITS OR PUNITIVE DAMAGES,
EVEN IF
ADVISED OF THEIR POSSIBILITY.
|
(d)
|
NO
WARRANTY OR TERM, EXPRESS OR IMPLIED, STATUTORY OR OTHERWISE, AS
TO THE
CONDITION, QUALITY, DURABILITY, PERFORMANCE, MERCHANTABILITY OR FITNESS
FOR A PARTICULAR PURPOSE OF THE ONLINE STORE, THE SECURITY SOLUTION,
OR
ANY ELEMENTS OF THE FOREGOING IS GIVEN TO, OR SHOULD BE ASSUMED BY,
COMPANY, AND ANY SUCH WARRANTIES AND TERMS ARE HEREBY EXCLUDED.
|
16.
|
Confidentiality.
|
Each
Party acknowledges that by reason of this Agreement it may have access to
certain information and materials concerning the other Party's business plans,
customers, technology and products that are confidential and of substantial
value to such Party, which value would be impaired if such information were
disclosed to third parties or used for purposes other than as expressly
permitted by this Agreement (referred to in this Agreement as “Confidential
Information”). Each Party agrees to maintain any and all Confidential
Information received from the other, in confidence, and agrees not to disclose
or otherwise make available such Confidential Information to any third party
without the prior written consent of the disclosing Party. Each Party agrees
that Confidential Information shall be disclosed to its employees and other
personnel under its control and supervision for purposes of performing under
this Agreement solely on a need-to-know basis in furtherance of this Agreement,
and solely to those individuals who are bound by a written non-disclosure
agreement having terms no less restrictive than the non-disclosure terms of
this
Section 16, unless required by law, or court or governmental order. Confidential
Information shall be deemed to include (i) information marked confidential,
if
conveyed in writing, and (ii) information identified orally as confidential,
if
conveyed orally. Confidential Information shall not be deemed to include any
information which (a) is publicly known at the time of the disclosure, (b)
becomes publicly known other than by breach of the terms of this Section 16,
(c)
becomes known to the receiving Party, without restriction, from a source free
of
any obligation of confidentiality and without breach of this Section 16, or
(d)
is independently developed by the receiving Party.
17.
|
Additional
Representations and Warranties of the Parties.
|
13
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32
(a)
|
Each
Party represents and warrants that it has full authority to enter
into
this Agreement, and to fully perform its obligations
hereunder.
|
(b)
|
Each
Party represents and warrants that it owns or controls the necessary
rights in order to make the grant of rights, licenses and permissions
herein, and that the exercise of such rights, licenses and permissions
by
the other Party hereto shall not violate or infringe the rights of
any
third party.
|
(c)
|
Each
Party represents and warrants that it shall not act in any manner
which
conflicts or interferes with any existing commitment or obligation
of such
Party, and that no agreement previously entered into by such Party
will
interfere with such Party’s performance of its obligations under this
Agreement.
|
(d)
|
Each
Party represents and warrants that it shall perform in compliance
with any
applicable laws, rules and regulations of any governmental
authority.
|
18.
|
General
Provisions.
|
(a)
|
No
Agency or Joint Venture.
The Parties agree and acknowledge that the relationship between the
Parties is that of independent contractors acting as seller and purchaser.
This Agreement shall not be deemed to create a partnership or joint
venture, and neither Party is the other’s agent, partner, employee, or
representative.
|
(b)
|
Contractors.
ITUNES may contract with third parties to provide Fulfillment Activities
on behalf of ITUNES, provided such third parties are subject to terms
no
less restrictive than the terms ITUNES is subject to under this Agreement.
ITUNES shall be responsible for the performance of such third parties
while under ITUNES’ control and
supervision.
|
(c)
|
Entire
Agreement, Modification, Waiver.
This Agreement, including any annexes, schedules and exhibits hereto,
contains the entire understanding of the Parties relating to the
subject
matter hereof, and supersedes all previous agreements or arrangements
between the Parties relating to the subject matter hereof. This Agreement
cannot be changed or modified except by a writing signed by the Parties.
A
waiver by either Party of any term or condition of this Agreement
in any
instance shall not be deemed or construed as a waiver of such term
or
condition for the future, or of any subsequent breach thereof. If
any
provision of this Agreement is determined by a court of competent
jurisdiction to be unenforceable, such determination shall not affect
any
other provision hereof, and the unenforceable provision shall be
replaced
by an enforceable provision that most closely meets the commercial
intent
of the Parties.
|
(d)
|
Binding
on Successors.
This Agreement shall be binding on the assigns, heirs, executors,
personal
representatives, administrators, and successors (whether through
merger,
operation of law, or otherwise) of the Parties. ITUNES may assign
or
transfer any part of this Agreement to an affiliate of ITUNES without
COMPANY’s consent.
|
14
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32
(e)
|
Notices.
Any notice, approval, request, authorization, direction or other
communication under this Agreement shall be given in writing and
shall be
deemed to have been delivered and given for all purposes: (i) on
the
delivery date if delivered personally to the Party to whom the same
is
directed or delivered; (ii) upon delivery by confirmed-receipt facsimile
to the appropriate number set forth below (and, further, confirmation
of
receipt is made by telephone); (iii) one (1) business day after deposit
with a commercial overnight carrier, with written verification of
receipt;
or (iv) five (5) business days after the mailing date, whether or
not
actually received, if sent by certified mail, return receipt requested,
postage and charges prepaid, to the address of the Party to whom
the same
is directed as set forth below (or such other address as such other
Party
may supply by written notice duly given).
|
If
to
COMPANY, to the Senior Management contact specified by COMPANY on the attached
Cover Sheet, with a courtesy copy by email or facsimile, which copy shall not
constitute notice, to the Legal/Business Affairs contact specified by COMPANY
on
the attached Cover Sheet.
If
to
ITUNES, to the Senior Management contact specified on the attached Cover Sheet,
with courtesy copies by email or facsimile, which copies shall not constitute
notice, to the Legal/Business Affairs contacts specified on the attached Cover
Sheet.
(f)
|
Governing
Law.
This Agreement shall be governed and interpreted in accordance with
the
laws of the State of California, without regard to principles of
conflict
of laws. The Parties agree that any proceeding relating to this Agreement
will take place in the No. District of California; and both Parties
hereby
waive the right to object to that choice of law, personal jurisdiction
or
venue.
|
(g)
|
Counterparts.
This Agreement may be executed in counterparts, each of which shall
be
deemed an original and all of which together shall constitute one
and the
same document.
|
(h)
|
Remedies.
To the extent permitted by applicable law, the rights and remedies
of the
Parties provided under this Agreement are cumulative and in addition
to
any other rights and remedies of the Parties at law or
equity.
|
(i)
|
Headings.
The titles used in this Agreement are for convenience only and are
not to
be considered in construing or interpreting the
Agreement.
|
(j)
|
No
Third-Party Beneficiaries.
This Agreement is for the sole benefit of the Parties hereto and
their
authorized successors and permitted assigns. Nothing herein, express
or
implied, is intended to or shall confer upon any person or entity,
other
than the Parties hereto and their authorized successors and permitted
assigns, any legal or equitable right, benefit or remedy of any nature
whatsoever under or by reason of this
Agreement.
|
15
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32
(k)
|
Force
Majeure.
For the purposes of this Agreement, "Force Majeure" shall mean any
event
which a Party hereto could not foresee, such as fire, flood, acts
of God
or public enemy, Internet failures, earthquakes, governmental or
court
order, national emergency, strikes or labor disputes, the effect
of which
it could not reasonably prevent or predict and which renders impossible
or
impractical the performance of contractual obligations either totally
or
in part. The Party invoking a Force Majeure shall notify the other
Party
within three (3) business days of its occurrence by accurately describing
all the circumstances of the situation involved and its effect upon
the
performance of its contractual obligations. The taking place of a
Force
Majeure shall have the effect of suspending the obligations of the
Party
which has invoked the provisions of this Section to the extent such
obligations are affected by the Force Majeure. Contractual dates
shall be
extended for a period equal to the duration of a Force Majeure. The
cessation of a Force Majeure shall be communicated by notice within
three
(3) business days of its occurrence by the Party that invoked
it.
|
IN
WITNESS WHEREOF, the Parties hereto have caused this Agreement to be duly
executed by their respective officers thereunto duly authorized.
APPLE
INC.
|
COMPANY
|
|||||
By:
|
/s/
Xxxx Xxx
|
By:
|
/s/
Xxxx Xxxxxx
|
|||
Signature
|
||||||
Name:
Xxxx Xxx
|
Name:
Xxxx Xxxxxx
|
|||||
Title:
President & CEO
|
||||||
Date:
August 6, 2008
|
Date:
July 24, 2008
|
The
later
of the two dates above (if different) shall constitute the “Signature
Date.”
Please
send TWO
original
signed copies to:
Apple
Inc.
iTunes
Store
0
Xxxxxxxx Xxxx, XX 3-ITMS
Xxxxxxxxx,
XX 00000
Xxxxxx
Xxxxxx
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32
EXHIBIT
A
Content
Usage Rules
Regular
eMasters
End
users
obtaining Regular eMasters from ITUNES pursuant to the terms of this Agreement
may:
1.
|
Burn
audio-only single-track Regular eMasters xxxxxx to an audio CD as
part of
a playlist.
|
2.
|
Use
Regular eMasters in applications using
QuickTime.
|
3.
|
Store
Regular eMasters on up to five (5) Transfer Devices at the same
time.
|
4.
|
Subject
to Paragraph 3. above, transfer Regular eMasters to, and/or render
from, a
Transfer Device or Non-Transfer
Device.
|
5.
|
Use
Regular eMasters solely for end user’s personal and non-commercial
use.
|
Plus
eMasters
End
users
obtaining Plus eMasters from ITUNES pursuant to the terms of this Agreement
may
use Plus eMasters solely for end user’s personal and non-commercial
use.
***
Certain information on this page has been omitted and filed separately with
the
Commission. Confidential treatment has been requested with respect to the
omitted provisions.
17
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32
EXHIBIT
B-1
Schedule
of Wholesale Prices - Audio
Sales
in
the United States shall be in United States dollars (US$). Sales in Canada
shall
be in Canadian dollars (CDN$).
Single-Track
Wholesale Prices (excluding taxes)
Regular eMaster
|
Plus eMaster
|
Upgrade†
|
||
xxxxxx
|
xxxxxx
|
xxxxxx
|
||
xxxxxx
|
xxxxxx
|
xxxxxx
|
† xxxxxx
Multi-Track Album
Wholesale Prices (excluding taxes)
Album Tiers
|
Regular/Plus Album
|
Album Upgrade††
|
||
Mini-EP**
|
xxxxxx*
xxxxxx
*
|
xxxxxx
xxxxxx
|
||
EP**
|
xxxxxx
*
xxxxxx
*
|
xxxxxx
xxxxxx
|
||
Budget**
|
xxxxxx
*
xxxxxx
*
|
xxxxxx
xxxxxx
|
||
Back**
|
xxxxxx
*
xxxxxx
*
|
xxxxxx
xxxxxx
|
||
Mid/Front**
|
xxxxxx
*
xxxxxx
*
|
xxxxxx
xxxxxx
|
||
Front
Plus**
|
xxxxxx
*
xxxxxx
*
|
xxxxxx
xxxxxx
|
||
Multi-CD
Sets**
|
xxxxxx
*
|
xxxxxx
|
***
Certain information on this page has been omitted and filed separately with
the
Commission. Confidential treatment has been requested with respect to the
omitted provisions.
18
of
32
*
Notwithstanding anything to the contrary herein (including any album tier
designation pursuant hereto), xxxxxx.
**
COMPANY may select the xxxxxx tier only for xxxxxx may be used solely for
xxxxxx. In addition, the xxxxxx tier may be used solely where the xxxxxx. ITUNES
may in its discretion waive, on a case-by-case basis, any of the restrictions
set forth in this paragraph.
††
xxxxxx
For
avoidance of doubt, COMPANY shall have the right to designate the album tier
(subject to any limitations regarding the use of such tier) for each multi-track
album of COMPANY Content delivered by COMPANY to ITUNES. In the event COMPANY
does not designate an album tier for a particular multi-track album, such
multi-track album shall be deemed designated xxxxxx until such time as COMPANY
designates a different album tier. COMPANY may change the designated album
tier
for a particular multi-track album xxxxxx during the Term. ITUNES may in its
discretion make available additional multi-track album tiers during the
Term.
xxxxxx
***
Certain information on this page has been omitted and filed separately with
the
Commission. Confidential treatment has been requested with respect to the
omitted provisions.
19
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32
EXHIBIT
B-2
Schedule
of Wholesale Prices – Videos
Sales
in
the United States shall be in United States dollars (US$). Sales in Canada
shall
be in Canadian dollars (CDN$).
Single
Video Wholesale Prices (excluding taxes)
Regular/Plus eMaster
|
Video Upgrade†
|
|
xxxxxx
|
xxxxxx
|
|
xxxxxx
|
xxxxxx
|
† xxxxxx
Other Products
If
ITUNES
at any time during the Term exercises its discretion under Section 3(b) to
accept additional product configurations, then ITUNES will make available one
or
more wholesale price tiers for such additional products. If multiple tiers
are
made available, COMPANY shall have the right to designate any applicable tier
for each product of COMPANY Content delivered by COMPANY to ITUNES; provided
that COMPANY may change the designated tier for a particular product xxxxxx
during the Term. Notwithstanding anything to the contrary herein (including
any
wholesale price tier made available by ITUNES or tier designation by COMPANY),
the wholesale price for any product xxxxxx.
***
Certain information on this page has been omitted and filed separately with
the
Commission. Confidential treatment has been requested with respect to the
omitted provisions.
20
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32
EXHIBIT
C-1: Audio
Clips
Clips
may
be xxxxxx. If Clips are not provided by COMPANY, they may be created by ITUNES
from the xxxxxx of the applicable eMaster.
Format
/ Formatting
ITUNES
may convert COMPANY Content into xxxxxx for sale on the Online Store under
the
terms of this Agreement xxxxxx the sound quality and integrity, attributable
to
such format or encoder, of COMPANY'S eMasters having the Security Solution
and
COMPANY’s eMasters having no Security Solution, respectively, is commensurate
with the sound quality and integrity of third party eMasters that are similarly
(i.e., either with or without the Security Solution, as the case may be) made
available for sale on and delivered from the Online Store.
Delivery
Format
COMPANY
shall deliver COMPANY Content to ITUNES in xxxxxx.
Delivery
Method
COMPANY
Content shall be delivered to ITUNES using either the proprietary iTunes
Producer software (access to which is provided by ITUNES to COMPANY during
the
Term pursuant to applicable terms and conditions), a secure FTP site address
provided by ITUNES to COMPANY, rsync over SSH, or such other delivery means
as
may be reasonably requested by ITUNES or mutually agreed between the Parties
from time to time. COMPANY acknowledges and agrees that use of iTunes Producer
requires certain Mac hardware and software (current required specifications,
which are subject to change as iTunes Producer is upgraded or otherwise, are
available on the iTunes Connect site). All COMPANY Content will be delivered
to
a server in California by means of telecommunications or via “load & leave”
per California regulation 1502. No tangible personal property will transfer
to
ITUNES.
***
Certain information on this page has been omitted and filed separately with
the
Commission. Confidential treatment has been requested with respect to the
omitted provisions.
21
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32
EXHIBIT
C-2: Videos
Clips
Clips
may
be xxxxxx or xxxxxx. Clips may be created by ITUNES from the applicable COMPANY
Content.
Format
/ Formatting
ITUNES
may convert COMPANY Content into eMasters and Format them for sale and delivery
from the Online Store as follows: xxxxxx.
Delivery
Format
COMPANY
shall deliver each Content File of COMPANY Content to ITUNES (or a third party
vendor designated in writing by ITUNES), using the highest source quality
available, as follows: xxxxxx.
Delivery
Method
COMPANY
Content shall be delivered to ITUNES (or a third party vendor designated in
writing by ITUNES) as follows: xxxxxx
***
Certain information on this page has been omitted and filed separately with
the
Commission. Confidential treatment has been requested with respect to the
omitted provisions.
22
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32
xxxxxx.
***
Certain information on this page has been omitted and filed separately with
the
Commission. Confidential treatment has been requested with respect to the
omitted provisions.
23
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32
EXHIBIT
D: Music Videos
The
following additional or modified terms and conditions shall apply to the sale
of
permanent downloads of music videos under the Agreement. In all other respects
the terms and conditions of the Agreement shall apply equally to music videos.
Solely for purposes of this Exhibit D:
1. |
Sections
1(n), 1(o) and 1(p) shall state,
respectively:
|
(n) Regular
COMPANY Content”
means
music videos, including, without limitation, audio and video files, owned or
controlled by COMPANY and in which COMPANY has cleared (as provided in Section
4
below) the necessary rights to authorize electronic sales and audio-visual
performances in Regular eMaster format by ITUNES pursuant to the terms of this
Agreement.
(o) “Plus
COMPANY Content”
means
music videos, including, without limitation, audio and video files, owned or
controlled by COMPANY and in which COMPANY has cleared (as provided in Section
4
below) the necessary rights to authorize electronic sales and audio-visual
performances in Plus eMaster format by ITUNES pursuant to the terms of this
Agreement.
(p) “COMPANY
Content”
means
Regular COMPANY Content and Plus COMPANY Content. All music videos that are
provided by or on behalf of COMPANY to ITUNES are deemed owned or controlled
by
COMPANY and cleared by COMPANY as provided in Section 4 below.
2. |
Section
3(b) shall state: COMPANY shall make all COMPANY Content that COMPANY
authorizes herein for sale on the Online Store available as single
videos.
From time to time during the Term, ITUNES may in its discretion decide
to
accept additional product configurations (e.g., multi-video albums)
from
COMPANY, in which case COMPANY may, in its discretion, offer to make
particular COMPANY Content available for sale on the Online Store
in such
product configurations.
|
3. |
Section
4 shall state: COMPANY shall be responsible for: (i) obtaining all
rights
of, and all waivers of any applicable moral or similar rights by,
artists,
performers, writers, producers, directors, the composers, lyricists,
authors and/or publishers of any musical compositions embodied in
COMPANY
Content (including their mechanical, i.e., reproduction and distribution,
rights), and any other third party rights holders necessary for ITUNES’
unencumbered sale, promotion, storage, distribution and other use
as
authorized hereunder of COMPANY Content, Artwork, metadata and/or
any
other materials provided to ITUNES by COMPANY; and (ii) making
corresponding full and timely payments of all royalties, residuals,
participation payments, repeat fees and/or other sums payable for
such
rights and/or waivers, and all payments that may be required under
any
collective bargaining, union or guild agreements related to the COMPANY
Content or its exploitation or other use hereunder, including any
similar
payments which are not now but hereafter become payable; provided,
however, that COMPANY shall not be responsible for obtaining or making
payments in relation to any public performance or communication to
the
public rights in any musical compositions embodied in COMPANY Content
(to
the extent such rights may be
|
24
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32
implicated,
if at all, by ITUNES’ exploitation or other use of COMPANY Content
hereunder).
|
4. |
The
following shall be added to Section 10(b): Upon written request,
ITUNES
shall provide a copy of each eMaster to COMPANY; provided, however,
that
COMPANY may not use any such eMaster in any manner except for purposes
of
securing ownership in copyright.
|
5. |
The
words “sound recordings” in Section 12(a) shall be replaced by “music
videos.”
|
6. |
All
references to Exhibits B-1 and C-1 shall instead be to Exhibits B-2
and
C-2, respectively.
|
25
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32
EXHIBIT
E
Complete
My Album
Notwithstanding
any other provisions of this Agreement, the following terms shall apply to
any
CMA Offers and CMA Transactions (as defined below):
1.
|
Definitions:
|
(a) “Purchased
Track”
means
a
track or video previously acquired by a customer from the Online Store by (i)
purchase by any payment means or (ii) through a promotional download, so long
as
ITUNES paid to COMPANY the appropriate wholesale price under this Agreement
for
such download.
(b) “CMA
Album”
means
an album with which one or more Purchased Tracks are “associated” (as provided
in paragraph 3 below).
(c) “Remaining
Tracks”
means
all tracks or videos contained on a CMA Album, other than any Purchased
Tracks.
(d) “CMA
Offer”
means
the option by a particular customer to purchase the Remaining Tracks of a CMA
Album as a bundle – i.e.,
to “complete” that album – at
a specified bundle price.
(e) “CMA
Transaction”
means
the purchase by a customer of the Remaining Tracks of a particular CMA Album
as
a bundle at a specified bundle price.
(f) “Advance
Single”
means
a
single track released on the Online Store in advance of the release of the
corresponding album (e.g., a radio edit or pre-release single).
(g) “Subsequent
Album”
means
the album, released subsequent to an Advance Single’s release, on which the
Advance Single was included upon the album’s release.
2.
|
Authorization
of CMA Offers and Transactions.
ITUNES is hereby authorized to make CMA Offers and conclude CMA
Transactions as provided in this
Exhibit.
|
3.
|
“Associated”
Purchased Tracks and CMA Albums.
|
(a) Except
as
provided in paragraphs 3(b)-(e) below, a Purchased Track is only deemed
“associated” with the album on the Online Store off of which it was acquired by
the customer.
(b) For
Advance Singles, the Subsequent Album shall be deemed to be the “associated” CMA
Album. If only one (unmarked) version of the Advance Single was offered, and
both clean and explicit versions of the Subsequent Album are offered on the
Online Store, then each such version of the Subsequent Album shall be deemed
to
be a CMA Album “associated” with the Advance Single.
26
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32
(c) If
standard and deluxe versions of an album are offered on the Online Store, then
each such version of the album shall be deemed to be a CMA Album “associated”
with any Purchased Track acquired off of either version of the
album.
(d) A
redelivered album shall be deemed to be a CMA Album “associated” with any
Purchased Track that was acquired off of any version of that same album that
was
previously available (but is no longer available) on the Online Store under
the
authority of COMPANY. ITUNES will use commercially reasonable efforts to create
automated “matching” such that CMA Offers involving redelivered albums are made
available to customers consistent with this subparagraph.
(e) A
Purchased Track originally purchased in Regular eMaster format off of the
Regular eMaster version of a particular album, and then subsequently upgraded
to
Plus eMaster format, shall thereafter also be deemed “associated” with the Plus
eMaster version of that album.
(f) To
the
extent a customer is presented with more than one CMA Offer with respect to
the
same Purchased Track (because more than one album is deemed a CMA Album
“associated” with such Purchased Track hereunder), the customer may only select
one such option. In no event may one Purchased Track be applied to more than
one
CMA Transaction.
4.
|
Partial
Albums.
Only full albums (including video albums) available for sale on the
Online
Store are eligible to be CMA Albums. Partial albums are not
eligible.
|
5.
|
Time
Limits:
|
(a)
|
A
CMA Offer for a particular CMA Album may be made available to a customer
only for a period of xxxxxx from the date that customer acquired
his or
her first Purchased Track associated with that CMA Album (except
as
provided in subparagraph (b) below); provided that, for a period
of xxxxxx
from the date CMA Offers are first made available on the Online Store,
CMA
Offers may be made available to each customer for CMA Albums associated
with any of that customer’s Purchased Tracks, regardless of when the
Purchased Tracks were acquired.
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(b)
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In
the case of a customer who acquired an Advance Single before the
corresponding Subsequent Album became available on the Online Store,
a CMA
Offer for that Subsequent Album may be made available to that customer
only for a period of xxxxxx from the date the Subsequent Album became
available on the Online Store.
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6.
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Wholesale
Price.
ITUNES will pay COMPANY the CMA Wholesale Price (as defined in this
paragraph) for each CMA Transaction. The CMA Wholesale Price will
equal
the wholesale price under this Agreement for the CMA Album in effect
at
the time of the CMA Transaction (“Regular Wholesale Price”) less
the sum of the wholesale prices ITUNES previously paid for the Purchased
Tracks to COMPANY; provided, however, that the CMA Wholesale Price
in no
event shall be less than the wholesale price under this Agreement
for a
single track (a single music video in the event the CMA Album is
a
video-only album) in effect at the time of the CMA
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***
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the
Commission. Confidential treatment has been requested with respect to the
omitted provisions.
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Transaction.
For avoidance of doubt, ITUNES may determine retail prices on the Online Store,
including retail prices for CMA Transactions, entirely at its sole
discretion.
7.
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Reporting.
Each CMA Transaction will be reflected on sales and royalty reports
as
follows: (i) a new sale of the full CMA Album at the Regular Wholesale
Price, identified as a CMA sale; and
(ii) a return (i.e., negative royalty) for each Purchased Track contained
on the CMA Album in the amount ITUNES previously paid for the Purchased
Track to COMPANY, each identified as a CMA
return.
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EXHIBIT
F
iPhone
Ring Tone Service
Notwithstanding
any other provisions of this Agreement, the following terms shall apply to
Ring
Tones (as defined below):
1. |
Definitions:
|
(a) “Service”
means
a
paid-for service provided by ITUNES that enables Online Store users to select
up
to a 30-second segment of certain content stored in their iTunes Library for
use
as a ring tone only on an iPhone.
(b) “Ring
Tone”
means
the up to 30-second content file created using the Service for use as a ring
tone only on an iPhone.
(c) “COMPANY
Ring Tone”
means
a
Ring Tone created from an Eligible Track.
(d) “COMPANY
Track”
means
an audio track xxxxxx.
(e) “Eligible
Track”
means
any COMPANY Track that COMPANY has not notified ITUNES is ineligible for
inclusion in the Service pursuant to Paragraph 2(b) below.
(f) “Territory”
means
the United States and its territories and possessions.
(g) “Sale”
of
a
COMPANY Ring Tone means the act of using the Service with respect to that
COMPANY Ring Tone and the corresponding Eligible Track. “Sold” or to “Sell”
shall be construed accordingly.
2. |
Authorization
for the Service.
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(a) ITUNES
is
hereby authorized to sell COMPANY Ring Tones by making the Service available
in
the Territory.
(b) COMPANY
may notify ITUNES’ designated representative in writing from time to time that
one or more COMPANY Tracks are not eligible for inclusion in the Service because
of a Clearance Matter, in which case such COMPANY Track will cease to be an
Eligible Track and ITUNES will cease to include it in the Service within xxxxxx
of receiving the notice. ITUNES’ current designated representative for such
notices is xxxxxxxxxxxxxx@xxxxx.xxx. ITUNES may, from time to time, change
the
designated representative and means for giving written notice by posting a
notice on its iTunes Connect site.
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Commission. Confidential treatment has been requested with respect to the
omitted provisions.
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(c) If
a
COMPANY Track xxxxxx or if the same exact version of the COMPANY Track is no
longer available on the Online Store (e.g., due to redelivery), then ITUNES
shall use the track metadata on the Online Store user’s hard drive to determine
whether the track is an Eligible Track for purposes of determining whether
the
track is eligible for inclusion in the Service and, if so, for purposes of
reporting and payment.
(d) COMPANY
Ring Tones (i) may be transferred to and used on xxxxxx of iPhones, which cannot
transfer COMPANY Ring Tones with their content rights keys to any other device,
(ii) may be transferred to, stored on, and previewed on up to five (5) Transfer
Devices at the same time, and (iii) may be used solely for end user’s personal
and non-commercial use.
(e) COMPANY
shall be responsible for and timely pay: (i) all record royalties to artists,
producers, performers, musicians and other record royalty participants for
the
Sale of COMPANY Ring Tones, (ii) all reproduction and distribution (i.e.,
mechanical) royalties payable to composers, lyricists, authors and publishers
of
compositions embodied in COMPANY Ring Tones for the Sale of COMPANY Ring Tones,
(iii) all payments that may be required under collective bargaining agreements
applicable to COMPANY or third parties other than ITUNES, and (iv) any other
royalties, fees and/or sums payable with respect to the Sale of COMPANY Ring
Tones as part of the Service hereunder.
3.
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Pricing,
Payment and Reporting.
For each Sale of a COMPANY Ring Tone hereunder, ITUNES shall pay
COMPANY a
wholesale price of xxxxxx. Reporting and payment with respect to
Sales of
COMPANY Ring Tones shall be made in the same manner as for eMasters
under
Section 8 of this Agreement. COMPANY agrees to accept and use existing
identifiers (e.g., Xxxx IDs) to identify particular Eligible
Tracks.
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***
Certain information on this page has been omitted and filed separately with
the
Commission. Confidential treatment has been requested with respect to the
omitted provisions.
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EXHIBIT
G
Ticketmaster
Concert Album Sales
Notwithstanding
any other provisions of this Agreement, the following terms shall apply to
the
use of COMPANY Content in connection with ITUNES and Ticketmaster L.L.C.’s
(“Ticketmaster”) joint marketing program for the purpose of promoting such
COMPANY Content:
1.
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Promotion.
Ticketmaster may offer customers who purchase tickets for a live
event
from xxx.xxxxxxxxxxxx.xxx or xxx.xxxxxxxxxxxx.xx (“Ticketmaster Sites”),
as applicable, the opportunity to purchase a code for redemption
of
specific COMPANY Content from the relevant Online Store (“Code) by the
artist headlining such live event (“Artist”) (such promotion hereafter
referred to as the “Promotion”). During the transaction process on the
Ticketmaster Sites, the Code shall be presented as a separate item
that
the customer can purchase in addition to the tickets for the live
event
headlined by Artist. COMPANY hereby grants ITUNES the right to authorize
Ticketmaster to sell Codes on the Ticketmaster Sites during the Term,
as
provided herein.
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2.
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Promo
Album and Substitute Content.
Each Code shall be configured for redemption of the relevant Artist’s last
released full-length album available on the Online Store as of xxxxxx
days
prior to the date tickets for the Artist’s tour are available for sale on
the Ticketmaster Sites (the “Promo Album”). From time to time, each party
may make reasonable requests to the other party to substitute the
Promo
Album with other COMPANY Content as the featured content in the Code
(“Substitute Content”). The decision to use Substitute Content and the
selection of Substitute Content shall be subject to the parties’ mutual
agreement in writing (email to suffice). If the parties are unable
to
agree mutually on Substitute Content, the Promo Album shall be offered
on
the Ticketmaster Sites in connection with the Promotion. Notwithstanding
this paragraph, ITUNES reserves the right to deny any requests to
use
Substitute Content by COMPANY, as determined within ITUNES’ sole
discretion
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3.
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Removal.
In the event an Artist or other exclusive rights holder objects to
inclusion in the Promotion for reasons outside of COMPANY’s control,
COMPANY shall have the right to require that particular COMPANY Content
be
removed from the Promotion. Notice for such removal must be made
in
writing to ITUNES’ designated representative, and ITUNES shall be
responsible for securing the removal of the affected COMPANY Content
from
the Ticketmaster Sites for the purposes of the Promotion as soon
as
commercially reasonable, but in any event no later than xxxxxx days
from
notice. ITUNES’ current designated representative for such notices is
xxxxxxxxxxxxxx@xxxxx.xxx. ITUNES may, from time to time, change the
designated representative and means for giving written notice by
posting a
notice on its iTunes Connect site.
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4.
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Payment.
eMaster Proceeds in connection with the Codes shall be paid to COMPANY
in
accordance with Section 8 of this Agreement. Notwithstanding the
foregoing, if a Code sold by Ticketmaster is not redeemed by the
last day
of the Apple Inc. fiscal year (approximately October 1 to the last
Saturday of September)
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***
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the
Commission. Confidential treatment has been requested with respect to the
omitted provisions.
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(“Apple
Fiscal Year”) in which the Code is delivered to the customer (“Unredeemed
Code”), the Unredeemed Code shall be considered “sold” for the purposes of the
Agreement, i.e. the eMaster embodied in the Code shall be deemed successfully
delivered, on the last day of such Apple Fiscal Year; provided, however, that
if
a Code is sold by Ticketmaster in the last xxxxxx months of an Apple Fiscal
Year, the Unreedemed Code shall be considered “sold” on the xxxxxx of the
following Apple Fiscal Year (“Sale Date”). eMaster Proceeds for any Unredeemed
Codes shall be set forth in the Sales Report following the relevant Sale Date.
For avoidance of doubt, this paragraph shall fulfill any and all of ITUNES’
payment obligations in connection with Unredeemed Codes under the Agreement
and
COMPANY shall not be entitled to collect any wholesale price or any other
payments in the event of redemption of an Unredeemed Code after a Sale Date.
If
a customer has not redeemed a Code and the COMPANY Content embodied in the
Code
is removed from the Online Store, upon the customer’s request, ITUNES shall
credit the customer the purchase price of the Code and ITUNES shall have no
obligation to make any payments whatsoever to COMPANY in connection with the
sale of the Code. In the event Apple has already paid COMPANY for such Codes,
ITUNES shall deduct the amount paid in a subsequent Sales Report.
***
Certain information on this page has been omitted and filed separately with
the
Commission. Confidential treatment has been requested with respect to the
omitted provisions.
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