I. Notice of Selecting a Production and Grant in Contributing Artist's Profit Pool
If you have contributed a RECord and the Result is selected by the Operating Committee as a Production to be commercialized, hitRECord.org will notify you. For avoidance of doubt, (i) hitRECord.org shall have the right to modify and edit any Result, and it is only the final version of a Result designated and posted as a "Production" on the hitRECord.org Site that shall be commercialized, and (ii) only Artists whose RECords are part of such final Productions shall be notified and eligible, pursuant to the terms hereof, for compensation resulting from the commercial exploitation of such Production.
Pursuant to the Terms of Service, and for avoidance of doubt, hitRECord.org has a worldwide, non-exclusive, transferable, assignable, fully paid-up, royalty-free, perpetual, irrevocable right and license to host, transfer, display, perform, reproduce, distribute and re-distribute, create derivative works of and otherwise exploit your RECordand/or Result, in whole or in part, in any media formats and through any media channels (now known or hereafter developed).
If you are so notified that
your material is part of a Production to be commercialized, hitRECord.org
will notify you of the Artist's Share that has been granted to You
(as Artist's Share is defined below). As set forth in the Terms
of Service, You are welcome to comment on the Artist's Share which
you have been allocated within the Contributing Artists Profit Pool
as defined below (e.g., make a case for a different percentage), provided
that hitRECord.org may reject any such comments or modify the grant
in its sole discretion.
II. Allocating Contributing Artists Profit Pool
An Artist shall automatically be eligible for sharing in an applicable Contributing Artists Profit Pool (and such Artist shall sometimes be referred to as a "Contributing Artist") provided he/she:
i) has accepted the Terms of Service, and complied with the Submission Guidelines; and
ii) uploaded a RECord or
Result, which is part of a selected Production.
B. Overall Profit Pool Available to Artists Contributing to Productions
The "Contributing Artists Profit Pool" from a Production shall mean the pool of profits equal to fifty percent (50%) of the Profits from a Production. For avoidance of doubt, the other 50% of the Profits shall be retained by hitRECord.org.
C. When Contributing Artists Profit Pool is Set and Paid
The Contributor's Profit Pool shall be calculated on a quarterly basis, and hitRECord.org shall provide Artist a statement setting forth the calculation of the Contributing Artists' Profit Pool and his/her applicable Artist Share, together with corresponding payments due, within sixty (60) days following the end of the applicable quarter; in the alternative to providing a statement directly to Artist, hitRECord.org may make such statement available by posting the statement on the hitRECord.org Site (which in its discretion may either be publicly accessible, or allow Artist access via a secure password or comparable security mechanism). Notwithstanding the foregoing, no payments shall be due Artist unless the Contributing Artists Profit Pool (applicable to a Production) is for the quarter a minimum of $500; in the event that such available pool is less than $500, then any applicable Artists Share due shall roll forward, and any cumulative amounts due Artist shall be paid when and if such Contributing Artists Profit Pool is $500 or more.
In the event of any overpayments
to an Artist, hitRECord.org shall have the right to offset such sums
from any future payments due. hitRECord.org shall prepare
such statements in good faith, which calculation of Contributing Artists
Profit Pool shall apply to all Artists participating therein, and which
statements shall be incontestable.
D. Allocations of Participation within Contributing Artists Profit Pool
Participating Artists shall be entitled to a share of the Contributing Artists Profit Pool as the Operating Committee shall award in its sole discretion (the share of the Contributing Artists Profit Pool applicable to an Artist the "Artist's Share"). For purposes of illustration only, if there are 10 Artists designated as Contributing Artists, then the Operating Committee shall allocate 100% of the Contributing Artists Profit Pool among such 10 Artists, which allocation may be straight-line or in any other manner as the Operating Committee may select on a case-by-case and Production-by- Production basis; accordingly, if Artist A has an Artist's Share of 10% and Artist B has an Artist's Share of 25% and the applicable Contributing Artists Profit Pool is $10,000, then Artist A would be entitled to $1,000 and Artist B would be entitled to $2,500.
"Profits" shall mean 100% of the "Adjusted Gross Revenues", which shall be calculated by deducting the "Permitted Deductions" from "Gross Receipts" (as such terms are defined in Definitions section F below).
All terms not otherwise defined below, or in these Terms of Selecting RECords for Monetized Productions, shall have the same meaning as set forth in the Terms of Service.
Adjusted Gross Revenues. "Adjusted Gross Revenues" shall have the meaning as set forth in the definition of Profits as set forth in Section E above.
Artist's Share. "Artist's Share" shall have the meaning as set forth in Section D with respect to the Allocation of Participations within Contributing Artists' Profit Pool.
Gross Receipts. "Gross Receipts" shall mean all revenues actually received by hitRECord.org from the distribution, exploitation, and use of the Production in all media worldwide.
Operating Committee. The Operating Committee shall be composed of members, or a single member, to be designated by hitRECord.org in its sole discretion.
Permitted Deductions. "Permitted Deductions" shall mean and include any and all costs incurred or borne by hitRECord.org or it permitted distributors (collectively, for the purposes hereof "Distributor") in connection with distributing and exploiting Productions, including without limitation the following costs and expenses whether incurred by Distributor or any third party acting on behalf of Distributor: (i) any and all customary distribution fees, (ii) the direct costs and expenses of distribution and administration throughout the world (including, without limitation, customary costs such as prints, advertising, dubbing and subtitling, and dues and assessments), and all other costs and expenses which Distributor or any third party distributor may be authorized or permitted to deduct and retain under and pursuant to the terms of any distribution agreement with any distributors of the Productions, (iii) any production costs incurred by Distributor to modify, edit, or complete the Production, which Distributor in its good faith judgment elects to incur in order to maximize the receipts, distribution and exploitation of the Production, (iv) with respect to any online advertising, any agency or sales commissions. refunds to advertisers, and fees charged by third party syndication partners (iv) all sums paid or payable to any actor, writer, producer, manufacturer of sound recording and producing equipment, composer, lyricist, musician, guild, union, labor organization or trustees of any thereof pursuant to the terms of any collective bargaining agreement or otherwise, or any collection society or organization, and (v) any and all other sums expended, or liabilities incurred, directly in connection with the exhibition, distribution, marketing and exploitation of the Productions. Notwithstanding the foregoing, the methodology of calculating and applying deductions is intended to permit costs and expenses of distributing and exploiting Productions from corresponding gross revenues, and accordingly no "double deductions" shall be taken (provided, however, that in the instance of sub-distribution, both the Distributor and sub-distributor shall be entitled to take customary fees); for illustrative purposes only, if a third party distributor deducts costs of prints and advertising from the receipts which are tendered to hitRECord.org as Gross Receipts, then such costs and expenses shall not be separately deducted by hitRECord.org in calculating Adjusted Gross Revenues.