Document:

Exhibit
10.15

 

As of April 22, 2002

 

Fox
Broadcasting Company

P.O.  Box 900

Beverly Hills, California 90213

Attention:  Marisa Fermin and Minna
Taylor

 

Re:                               “American
Idol:  The Search for a Superstar”

 

Ladies and
Gentlemen:

 

This letter
sets forth the agreement (the “Agreement”) between 19TV Limited (“19TV”) and
FremantleMedia North America, Inc. (“Fremantle”), on the one hand, and Fox
Broadcasting Company (“FBC”), on the other hand, with respect to the production
by Fremantle and the license to FBC by Fremantle and 19TV of episodes of the
proposed United States television series currently entitled “American Idol: The
Search for a Superstar” (the “Series”) for exhibition on the FBC national free
television network (the “FBC Network”), which Series is based on the television
format currently entitled “Pop Idols” a/k/a “Idols” created by Simon Fuller and
developed by 19TV and Fremantle (the “Format”).

 

In consideration of the mutual covenants and conditions contained
herein, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows;

 

1.                                       Episode
Order.

 

(a)                                  Initial
Episodes.  FBC hereby gives Fremantle
an order (the “Initial Order”) to produce and deliver to FBC nineteen and
one-half (191⁄2) hours of episodes of the Series, broken down currently as
follows; one (1) ninety-minute episode of the Series, thirteen (13)
sixty-minute episodes of the Series, and ten (10) thirty-minute episodes of the
Series (collectively, the “Initial Episodes”) during the first production
season of the Series.  It is acknowledged
that FBC also gave Fremantle, and Fremantle approved and accepted, an
additional order (an “Additional Initial Episode Order”) to produce and deliver
to FBC an additional three (3) hours of episodes of the Series during the first
production season of the Series as part of the group of episodes produced
pursuant to the Initial Order, which additional hours of episodes shall be
deemed part of the Initial Episodes.  As
used herein, the term “first production season” means the period beginning on
the commencement of taping of the first Initial Episode (i.e., April 22,
2002) and ending June 10, 2003. 
Each subsequent “production season” means the period commencing upon
expiration of the immediately preceding production season and ending fifty-two
(52) weeks thereafter.

 

(b)                                 Series
Options.  FBC shall have five (5)
separate, successive, dependent, annual options (each, a “Series Option”) to
require Fremantle to produce and deliver to FBC additional episodes of the
Series during the second and subsequent four (4) production seasons (each such
episode being an “Optional Episode”).  It
is acknowledged that FBC customarily obtains only four (4) such Series Option
and that Fremantle and 19TV granted to FBC an additional Series Option on a
strictly non-precedential basis in exchange for improved ratings bonuses.  The Series Option for the second production
season must be exercised, if at all, by 

 

 

FBC giving written notice
thereof to Fremantle not later than June 10, 2003, and each subsequent
Series Option must be exercised, if at all, by FBC giving written notice
thereof to Fremantle not later than the end of the production season
immediately preceding the production season for which such Series Option is to
be exercised.  If FBC exercises any
Series Option, then FBC shall order (each, as it may be increased as set forth
below, a “Series Option Order”) the production of fourteen (14) sixty-minute
Optional Episodes, and ten (10) thirty-minute Optional Episodes, all to be
produced during the applicable production season for which the Series Option is
exercised.  The number and length of the
Optional Episodes ordered pursuant to any Series Option Order may be different
from that set forth above only if FBC obtains the prior written approval of
Fremantle (it being agreed that Fremantle shall not unreasonably withhold its
approval for a Series Option Order for more Optional Episodes than set forth
above).  After exercising a Series Option
and making a Series Option Order, FBC shall have the right to increase that
Series Option Order only after obtaining the prior written approval of
Fremantle (which approval Fremantle shall not unreasonably withhold).  The term “Episodes” as used herein means and
includes the Initial Episodes and the Optional Episodes.  Any such Series Option Order shall provide to
Fremantle no less than four (4) months notice prior to the scheduled initial
broadcast of the first Episode to be aired pursuant to such Series Option
Order; it being agreed that, as set forth in paragraph 3(a) below, without
Fremantle’s prior written consent, the initial broadcast of the first Episode
aired of any Production Order (as defined below) may not occur any earlier than
five (5) months after the initial broadcast of the last Episode aired of the
immediately preceding Production Order. 
If requested by FBC, Fremantle shall consider, in good faith, consenting
to a reduction in such five (5) month period by as much as one (1) month in
order to permit Episodes produced pursuant to any Production Order to be aired
during sweeps.

 

(c)                                  FBC
shall have the right (each an “In-Season Order Right”), during the first
production season and each additional production season for which FBC has
exercised a Series Option, to order from Fremantle additional Episodes to be
produced during such production season as a group of Episodes separate from the
group of Episodes produced pursuant to the Series Option Order (each, as it may
be increased as set forth below, an “In-Season Order”).  It is acknowledged that FBC made an In-Season
Order during the first production season, FBC shall only have the right to make
one (1) In-Season Order during each production season; it being understood and
agreed that each In-Season Order shall be for the production of fourteen (14)
sixty-minute Episodes, and ten (10) thirty-minute Episodes, all to be produced
during the applicable production season during which such In-Season Order right
is exercised.  The number and length of
the Episodes ordered pursuant to any In-Season Order may be different from that
set forth above only if FBC obtains the prior written approval of Fremantle (it
being agreed that Fremantle shall not unreasonably withhold its approval for an
In-Season Order for more Episodes than set forth above).  After making an In-Season Order, FBC shall
have the right to increase that In-Season Order only after obtaining the prior
written approval of Fremantle (which approval Fremantle shall not unreasonably
withhold).  Any such In-Season Order
shall be in writing and shall provide to Fremantle no less than four (4) months
notice prior to the scheduled initial broadcast of the first Episode to be
aired pursuant to such In-Season Order; it being agreed that, as set forth in
paragraph 3(a) below, without Fremantle’s prior written consent, the initial
broadcast of the first Episode aired of any Production Order may not occur any
earlier than five (5) months after the initial broadcast of the last Episode
aired of the immediately preceding Production Order.  If requested by FBC, Fremantle shall
consider, in good faith, consenting to a reduction in such five (5) month
period by as much as one (1) month 

 

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in order to permit Episodes
produced pursuant to an In-Season Order to be aired during sweeps.  The term “Production Order” as used herein
means and includes the Initial Order, any Series Option Order and any In-Season
Order.

 

(d)                                 First
Negotiation/First Refusal.

 

(1)                                  If
FBC exercises all its Series Options under paragraph 1(b) above and does not
cancel or reduce below seventeen (17) hours of Episodes any Production Order,
FBC shall have the rights of First Negotiation and of First Refusal set forth
in paragraph l(d)(2) below and in this paragraph 1(d)(1), with respect to the
production and license for exhibition of new Episodes of the Series after the
sixth production season (such production and license is the “Covered Matter”
under this paragraph l(d)(l)).  With
respect to said Covered Matter, the “Exclusive Negotiation Period” shall be
thirty (30) days commencing upon the 120th day prior to the expiration of the
sixth production season, and the “First Refusal Period” shall commence upon the
expiration of the Exclusive Negotiation Period and continue for one (1) year
after the expiration of the sixth production season.

 

(2)                                  With
respect to each applicable Covered Matter under paragraph 1(d)(l) above and
paragraphs 3(b)(3)(iii) and 3(d) below:

 

(i)                                     FBC’s
“First Negotiation” rights shall be as follows:

 

(A)                              Fremantle,
in consultation with 19TV, shall negotiate in good faith solely with FBC during
the applicable Exclusive Negotiation Period. 
If no agreement is reached during such Exclusive Negotiation Period,
then upon the expiration thereof, Fremantle, in consultation with 19TV shall
furnish FBC, in Fremantle’s last written offer (“Final Offer”), the terms and
conditions relating to the applicable Covered Matter least favorable to
Fremantle that Fremantle, in consultation with 19TV, is willing to accept.

 

(ii)                                     FBC’s
“First Refusal” rights, which shall apply until the expiration of the
applicable First Refusal Period, or until there is a Third Party Contract (as
defined below), whichever first occurs, shall be as follows:

 

(A)                              Neither
Fremantle nor 19TV shall enter into any agreement with a third party respecting
the Covered Matter, in connection with any form of television, on terms less
favorable to Fremantle and 19TV than the Final Offer, without first offering in
writing to enter into an agreement with FBC on the same terms which Fremantle,
in consultation with 19TV, and such third party are both willing to
accept.  FBC shall have ten (10) days
after receipt of such written offer in which to accept (but the offer may
include only provisions that relate solely to the Covered Matter).  If FBC fails to accept those terms within
that period, Fremantle, in consultation with 19TV, shall then be free to
contract on those terms 

 

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(and no others) with the third
party, and if Fremantle, in consultation with 19TV, does so there shall be
deemed to be a “Third Party Contract.”

 

2.                                       Consideration.

 

(a)                                  License
Fees.  FBC shall pay to Fremantle
license fees equal to the Approved Budgets (as defined below) for the Episodes
produced pursuant to the Initial Order, which Approved Budgets shall be, in the
aggregate for the first 19.5 hours of the Initial Episodes produced pursuant to
the Initial Order, up to Eight Hundred Thousand Dollars (U.S.$800,000) times
the number of hours or fractions of hours of all such Episodes (i.e., the
aggregate Approved Budgets for 19.5 hours of such Initial Episodes shall be no
more than $15,600,000), unless FBC agrees in writing to an increase.  The license fees payable by FBC for hours of
the Initial Episodes produced pursuant to the Additional Initial Episode Order
shall be equal to the Approved Budgets for such additional Initial
Episodes.  The license fees payable by
FBC for all Episodes produced pursuant to any In-Season Order or any Series Option
Order shall be equal to the Approved Budgets for such Episodes, but in no event
shall be less, on a per hour basis, than the applicable maximum license fees
for the first 19.5 hours of the Initial Episodes (i.e., $800,000), increased by
four percent (4%) (on a cumulative basis) each production season (the “License
Fee Cap”).  The license fees for the
first 19.5 hours of the Initial Episodes (which FBC agrees shall be no less
than U.S. $15,600,000) plus the license fees for the hours of the Initial Episodes
produced pursuant to the Additional Initial Episode Order (which FBC agrees
shall be no less than U.S. $1,215,231), shall be payable, upon appropriate
invoicing from Fremantle, as follows: (i) U.S. $1,100,000 payable immediately;
(ii) U.S. $32,500,000 payable on May 31, 2002; (iii) U.S. $4,500,000 on June 30,
2002; (iv) U.S. $4,476,420 on July 31, 2002; (v) U.S.                    
on delivery to FBC of the final Initial Episode; and (vi) no less than U.S. $                   
(the “Audit Holdback Amount”) upon completion of FBC’s audit of Fremantle’s
books and records relating to Fremantle’s costs of production of the Initial
Episodes (“Books arid Records”). 
Notwithstanding the foregoing, it is agreed that, subject to delays
caused by events of force majeure, (A) if FBC has not completed such audit
within forty-five (45) days after delivery to FBC of the final Initial Episode
and Fremantle’s making available to FBC all of its Books and Records, FBC shall
pay to Fremantle one-half (l/2) of such Audit Holdback Amount at the end of
such forty-five (45) day period, and (B) if FBC has not completed such audit
within ninety (90) days after delivery to FBC of the final Initial Episode, FBC
shall pay to Fremantle the remainder of such Audit Holdback Amount at the end
of such ninety (90) day period except for such portion of such Audit Holdback
Amount that FBC reasonably disputes in writing prior to the end of such 60-day
period as being payable as a result of FBC’s such audit.  The license fees for all Episodes produced
pursuant to any In-Season Order or any Series Option Order shall be payable in
accordance with a schedule to be negotiated in good faith; it being the
intent that the payment schedule meet Fremantle’s cash flow needs and be
no less favorable to Fremantle than the following: (i) ten percent (10%) of the
total license fees for all Episodes of the applicable In-Season Order or Series
Option Order upon commencement of pre-production; (ii) twenty percent (20%) of
such total license fees two (2) months thereafter; (iii) twenty-five percent
(25%) of such total license fees one (1) month thereafter, (iv) twenty-five
percent (25%) of such total license fees one (1) month thereafter; (v) ten
percent (10%) of such total license: fees upon delivery to FBC of the final
Episode produced pursuant to the applicable In-Season Order or Series Option
Order; and (vi) ten percent (10%) of such total license fees upon completion of
FBC’s audit of Fremantle’s Books and Records relating to Fremantle’s costs of
production of the 

 

4

 

Episodes produced pursuant to
the applicable In-Season Order or Series Option Order, subject to earlier
payment of this last installment pursuant to the same mechanism as set forth
about with regard to the Audit Holdback Amount on the Initial Episodes.  In the event that FBC pays to Fremantle
amounts in excess of the amounts due to Fremantle hereunder and/or under any
other agreement with FBC, FBC shall notify Fremantle in writing with a detailed
explanation of the overpayment and, provided that Fremantle does not reasonably
dispute the existence or amount of such overpayment and provided further that
Fremantle has not disbursed to any third parties amounts due to such third
parties calculated based on such over-payment, Fox may deduct an amount equal
to amount of such over-payment from any payments or advances thereafter payable
to Fremantle under this Agreement or any other agreement between FBC and
Fremantle or, at FBC’s election, Fremantle will repay the amount of such
over-payment promptly following FBC’s written demand therefor.

 

(b)                                 Overages/Underages.  In addition to the license fees set forth
above, FBC shall promptly reimburse Fremantle for any out-of-pocket costs of
production of any Episodes incurred by Fremantle in excess of the Approved
Budgets that are approved in writing by a member of FBC’s Business Affairs
Department or by any other authorized representative of FBC (it being agreed
that FBC shall not unreasonably withhold or delay its approval of any such
costs which are not avoidable by use of commercially reasonable efforts and
arise out of the exigencies of production) or that are caused by FBC’s
negligent or willful misconduct.  If and
to the extent the costs of production of all Episodes produced during a single
production season are less than the aggregate license fees paid by FBC to
Fremantle for such Episodes and any overages paid by FBC to Fremantle for such
Episodes, then Fremantle shall pay such difference to FBC.  FBC shall have the right to offset any
undisputed amount of such difference against future license fee or other
payments due to Fremantle in the event Fremantle does not pay such undisputed
amount to FBC within thirty (30) days of FBC’s reasonable written demand to Fremantle
therefor.  With respect to any In-Season
Order and any Series Option Order, FBC and Fremantle shall discuss in good
faith modifying the foregoing, bearing in mind that FBC does not wish to bear
budget overages and Fremantle wishes to retain budget underages; it being
understood that no such modification shall be in effect without the written
agreement of FBC and Fremantle.  The “costs
of production” and Approved Budget for each Episode shall include all costs
incurred or to be incurred by Fremantle to produce and deliver such Episode to
FBC, including without limitation (i) executive producer fees (which may be
payable to Fremantle on its own behalf or on behalf of Fremantle and 19TV)
equal to Thirty-Two Thousand Five Hundred Dollars (U.S.$32,500) per thirty
(30)-minute Episode, Sixty Five Thousand Dollars (U.S.$65,000) per sixty
(60)-minute Episode and Eighty Thousand Dollars (U.S.$80,000) per ninety
(90)-minute Episode (which fees shall increase by four percent (4%), on a
cumulative basis, each production season) (the “Executive Producer Fees”), (ii)
co-executive producer fees (which may be payable to Fremantle on its own behalf
or on behalf of Fremantle and 19TV) as set forth in paragraph 2(e) below, (iii)
a Fremantle and 19TV format fee (the “Format Fee”) equal to six percent (6%) of
the Approved Budget of such Episode (less the Format Fee), and (iv) a packaging
fee payable to Creative Artists Agency equal to three percent (3%) of Fremantle’s
actual out-of-pocket costs of production of such Episode up to the Approved
Budget (less such package fee).  It is
acknowledged that FBC may agree to increase such packaging fee to Creative
Artists Agency for Episodes produced during the second and subsequent
production season.  FBC shall fund and
bear any such increase itself, and such increase shall not be included within
the Approved Budget for the purposes of calculating the License Fee Cap
hereunder.  FBC shall 

 

5

 

have the right to audit
Fremantle’s books and records with respect to the production of the Series
during business hours and upon reasonable prior written notice in accordance
with FBC’s standard and reasonable audit procedures to be negotiated in good
faith within customary parameters.

 

(c)                                  Ratings
Bonuses.

 

(1)                                  FBC
hereby acknowledges that the mean average Nielsen rating for the 18-49 age
demographic (the “Average Nielsen Rating”) for the initial FBC broadcast of the
Initial Episodes was 6.0 or greater and that FBC exercised its In-Season Order
Right to order from Fremantle additional Episodes of the Series.  Therefore, FBC shall pay to Fremantle ratings
bonuses (“Ratings Bonuses”) equal to (i) Thirty-Seven Thousand Five Hundred
Dollars (U.S.$37,500) for each thirty (30) minute Episode produced pursuant to
such In-Season Order, and (ii) Seventy-Five Thousand Dollars (U.S.$75,000) for
each sixty (60) minute Episode produced pursuant to such In-Season Order.  For each Episode longer than sixty (60)
minutes produced pursuant to such In-Season Order, FBC shall pay to Fremantle a
Ratings Bonus equal to such sixty (60)-minute Episode Ratings Bonus increased
pro-rata based on the length of the Episode in question.

 

(2)                                  If
the Average Nielsen Rating for the initial FBC broadcast of all Episodes
produced pursuant to any particular Production Order (other than the Initial
Episodes that are covered by paragraph 2(c)(1) above) is 5.0 or greater and
Fremantle produces Episodes pursuant to the next Production Order from FBC,
then FBC shall pay to Fremantle Ratings Bonuses for each Episode produced
pursuant to such next Production Order from FBC, as follows:

 

	
  For each such 30-

  minute Episode

  	
   

  	
  For each such 60-

  minute Episode

  	
   

  	
  For each such 90-

  minute Episode

  	
   

  	
  For each such 120-

  minute Episode

  
	
  U.S. $25,000
  plus U.S. $1,250 for each tenth of a rating point in excess of 5.0.

  	
   

  	
  U.S. $50,000
  plus U.S. $2,500 for each tenth of a rating point in excess of 5.0

  	
   

  	
  U.S. $75,000
  plus U.S. $3,750 for each tenth of a rating point in excess of 5.0.

  	
   

  	
  U.S $100,000
  plus U.S. $5,000 for each tenth of a rating point in excess of 5.0.

  

 

(3)                                  Ratings
Bonuses shall be payable to Fremantle within ten (10) days following the
delivery to FBC of the applicable Episode which triggers the Ratings Bonus
payment obligation.  It is understood and
agreed that Fremantle shall have the right, but not the obligation, to grant to
FBC one (1) or more additional Series Option(s) and/or In-Season Order Right(s)
to order Episodes pursuant to the terms of this Agreement to be produced during
the seventh and/or subsequent production season.  For avoidance of doubt, it is understood that
the term “next Production Order” as used herein may be a Series Option Order,
an In-Season Order, and/or any production order pursuant to any additional
Series Option and/or In-Season Order Right that may be granted by Fremantle to
FBC.

 

6

 

(4)                                  In
addition to any payments under paragraphs 2(c)(1) and 2(c)(2) above, if any
Initial Episode is re-run by FBC, then Fremantle shall be entitled to a ratings
bonus (a “Re-Run Ratings Bonus”) for the first such re-run (and each subsequent
re-run of any Initial Episode taken by FBC pursuant to any license hereafter
granted by Fremantle in Fremantle’s sole discretion) of each such Initial
Episode equal to Twenty-Five Thousand Dollars (U.S. $25,000) per each such
re-run.

 

(5)                                  In
addition to any payments under paragraphs 2(c)(1) and 2(c)(2) above, if the
Average Nielsen Rating for the initial FBC broadcast of all Episodes produced
pursuant to any particular Production Order (other than the Initial Episodes
that are covered by paragraph 2(c)(4) above) is 5.0 or greater and any Episode
produced pursuant to such Production Order is re-run by FBC, then Fremantle
shall be entitled to a Re-Run Ratings Bonus for the first such re-run (and each
subsequent re-run of any such Episode taken by FBC pursuant to any license
hereafter granted by Fremantle in Fremantle’s sole discretion) of each such
Episode equal to Sixteen Thousand Six Hundred Sixty-Seven Dollars (U.S.
$16,667) plus, for each tenth of a rating point in excess of 5.0, Eight Hundred
Thirty Three Dollars (U.S. $833), per each such rerun.

 

(6)                                  The
Re-Run Ratings Bonuses for Episodes produced pursuant to any Production Order
(other than Episodes produced during the sixth production season) shall be
payable to Fremantle only if FBC makes a next Production Order and, in such
event, such Re-Run Ratings bonuses shall be paid to Fremantle upon FBC making
such next Production Order; provided, however, that if any ratings bonuses are
earned based on re-runs occurring after FBC makes such next Production Order,
then each such additional Re-Run Ratings Bonus shall be payable promptly
following the date of the  applicable
such re-run.  Each Re-Run Ratings Bonus
for Episodes produced during the sixth production season shall be payable to
Fremantle promptly following the date of the applicable re-run.

 

(d)                                 Order
Reduction/Cancellation:

 

(1)                                  Without
limitation to any of FBC’s other rights under this Agreement, at law, in equity
or otherwise, FBC shall have the right in writing, at its election and at any
time, to reduce or cancel FBC’s then-current order of Episodes, in whole or in
part, pursuant to any Series Option Order (it being agreed that any In-Season
Order may not be reduced or cancelled without Fremantle’s prior written
consent), and FBC shall thereafter not be further obligated to Fremantle for
the payment of license fees with respect to the Episodes not ordered as a
result of such reduction or cancellation, except that FBC shall, subject to the
provisions of paragraph 2(d)(2) below, reimburse Fremantle and 19TV for
Fremantle’s and 19TV’s actual, direct, auditable, out-of-pocket costs, if any,
incurred by Fremantle and/or 19TV (which are not avoidable by use of commercially
reasonable efforts) in connection with the Episodes not ordered or cancelled or
otherwise arising out of such reduction or cancellation; provided, however,
that FBC shall not be liable for any such costs in excess of the sum of (A) the
applicable licensee fee plus FBC-approved overages (it being agreed that FBC
shall not unreasonably withhold or delay its approval of any such costs which
are not avoidable by use of commercially reasonable efforts and arise out of
the exigencies of production) plus

 

7

 

(B) FBC-approved non-budgeted
contractual commitments paid or payable to third parties.  Notwithstanding the foregoing, FBC shall be
liable without limitation for costs caused by FBC’s negligent or willful
misconduct.  Concurrently with making any
such cancellation, FBC shall pay to Fremantle additional consideration equal to
(A) with respect to the Initial Order, the difference between (x) the sum of
the Executive Producer Fees plus the Format Fees that otherwise would have been
payable for six (6) sixty (60)-minute Episodes and (y) the sum of the Executive
Producer Fees plus the Format Fees that were actually paid with respect to the
Episodes produced arid delivered pursuant to such Initial Order, or (B) with
respect to any Series Option Order of any In-Season Order, the difference
between (x) the sum of the Executive Producer Fees plus the Format Fees that
otherwise would have been payable for thirteen (13) sixty (60)-minute Episodes
and (y) the sum of the Executive Producer Fees plus the Format Fees that were
actually paid with respect to for the Episodes produced and delivered pursuant
to such Series Option Order or In-Season Order. 
Such Format Fees shall be calculated based on the highest Approved Budget
for sixty (60) minute Episodes ordered by FBC pursuant to the applicable
Production Order.

 

(2)                                  To
the extent that FBC is obligated to reimburse Fremantle with respect to
out-of-pocket costs for any Episodes not produced and/or delivered hereunder
under paragraph 2(d)(1) above (i) FBC shall not be obligated to reimburse
Fremantle for any fees to Fremantle or 19TV (other than as set forth in
paragraph 2(d)(l) above) for such Episodes, nonspecific general office overhead
or packaging fees or agency commissions or for costs relating to services,
facilities, equipment or other items in connection with such Episodes to the
extent that such costs are recouped by Fremantle or 19TV by the use of such
items by Fremantle or 19TV on any other production or otherwise, (ii) such
costs shall not in any event be reimbursed to the extent otherwise reimbursed
under this Agreement, and (iii) Fremantle shall use its reasonable commercial
efforts to minimize the amounts FBC is required to reimburse by entering into
settlement agreements, by taking advantage of an employer’s rights regarding
mitigation of damages by an employee or by other appropriate methods.

 

(3)                                  Notwithstanding
anything to the contrary contained herein, if FBC cancels or reduces below
seventeen (17) hours of Episodes any Production Order (except if such
cancellation or reduction (A) is due to the occurrence of an event of force
majeure, (B) is due to a material, uncured breach by Fremantle or (C) is made
after obtaining Fremantle’s written agreement both to such cancellation or
reduction and to a waiver of Fremantle’s rights under this subparagraph
2(d)(3)), FBC shall have no right to exercise any further Series Options or
In-Season Order Rights.

 

(e)                                  The
“costs of production” and applicable Approved Budgets shall include without
limitation co-executive producer fees (which may be payable to Fremantle on its
own behalf or on behalf of Fremantle and 19TV) equal to (i) with respect to
Episodes produced pursuant to the Initial Order, Thirty Thousand Dollars (U.S.
$30,000) per sixty (60)-minute Episode per co-executive producer and Ten
Thousand Dollars (U.S. $10,000) per thirty (30)-minute Episode per co-executive
producer for the services of up to three (3) co-executive producers, and (ii)
with respect to Episodes produced pursuant to the Production Order subsequent
to the Initial Order (i.e., the second Production Order), for the services of
Nigel 

 

8

 

Lythgoe and Ken Warwick,
Seventy-Five Thousand Dollars (U.S. $75,000) for each such individual per each
week during which both one sixty minute Episode and one thirty minute Episode
are being produced, Fifty-Five Thousand Dollars (U.S. $55,000) for each such
individual per each week during which only one sixty minute Episode is being
produced, Ninety Thousand Dollars (U.S. $90,000) for each such individual per
week during which only one two hour Episode is being produced, with minimum
compensation (to be credited against the foregoing) of Seventy-Five Thousand
Dollars (U.S. $75,000) for each such individual per week for fifteen (15) weeks
being payable starting on October 15, 2002.  If Nigel Lythgoe and Ken Warwick render
co-executive producer services on Episodes produced pursuant to either or both
of the third and/or fourth Production Order(s), the foregoing fees set forth in
clause (ii) above apply.  If Nigel
Lythgoe and Ken Warwick render co-executive producer services on Episodes
produced pursuant to either or both of the fifth and/or sixth Production
Order(s), the foregoing fees set forth in clause (ii) above apply, increased by
four percent (4%) on a cumulative basis for each such Production Order.  Living and travel expenses for the
co-executive producers are also included in the “costs of production” and the
Approved Budgets and shall be no less than the amounts provided for in the “costs
of production” and the Approved Budgets for the Initial Episodes.  FBC shall have the right to require Fremantle
and 19TV to engage the services of Nigel Lythgoe and Ken Warwick as co-executive
producers on Episodes to be produced pursuant to either or both of the second
and/or third Production Order(s). 
Further, FBC shall have the right to require Fremantle and 19TV to
engage the services of Nigel Lythgoe and Ken Warwick as co-executive producers
on Episodes to be produced pursuant to any or all of the fourth, fifth and/or
sixth Production Order(s); provided, however, that Fremantle and 19TV shall
have the right to decline to so engage Nigel Lythgoe and/or Ken Warwick to
render such services on Episodes to be produced pursuant to any or all of such
Production Order(s) if (i) Fremantle and/or 19TV desire either or both such
individuals to render services on one or more other television projects during
the production periods of the applicable Episodes and Fremantle and/or 19TV
obtain the services on the Series of replacement co-executive producer(s)
approved by FBC, such approval not to be unreasonably withheld, or (ii) either
or both such individuals desire to remain in the United Kingdom during the
production periods of the applicable Episodes. 
Any failure by Fremantle and/or 19TV to furnish the services of Nigel
Lythgoe and/or Ken Warwick on account of the breach or disability of either or
both such individuals shall not be a breach by Fremantle and/or 19TV of this
Agreement.  FBC will not unreasonably
withhold or delay its approval of co-executive producer compensation proposed
by Fremantle and/or 19TV for co-executive producers Episodes of the Series
other than Nigel Lythgoe and/or Ken Warwick.

 

3.                                       Rights.

 

(a)                                  Broadcast
Rights.  FBC shall have the right to
make one (1) original network broadcast in the English language of each Episode
on the FBC Network in the United States and its territories and possessions
(including Puerto Rico) (the “Exhibition Territory”), one re-run in the English
language of each such Episode on the FBC Network in the Exhibition Territory
and, subject to Fremantle’s approval rights as set forth below, one
re-broadcast in the English language of such Episode on a national cable
network in the Exhibition Territory (provided that such cable re-broadcast is
intended for promotional purposes only and that no cash, barter time or other
consideration is received by or on behalf of FBC or any affiliate of FBC
therefor other than commercial time to promote the Series or other
consideration in the form of promotion for the Series).  If such national cable network is an
affiliate of FBC, 

 

9

 

Fremantle shall have a right of
approval over the terms of the agreement between FBC and such national cable
network (which must be made at arm’s length), such approval not to be
unreasonably withheld or delayed.  In
addition, FBC shall have the right (i) to broadcast a SAP audio signal to
supplement the English language broadcast of any Episode with audio in any
other language, (ii) a radio simulcast of the audio portion of any broadcast of
any Episode, provided that the only consideration received from the radio
broadcast is in the form of promotion for the Series, and (iii) to broadcast in
any language sub-titles to the English language broadcast of any Episode.  The original broadcast and the FBC Network
re-run of each Episode of the Series shall be broadcast during prime time
only.  With respect to each Episode
produced hereunder, the original broadcast, the FBC Network re-run and the
national cable network re-broadcast of such Episode shall occur no later than
fifty-two (52) weeks after the original broadcast of the first Episode aired
that was produced pursuant to the Production Order of which such Episode is a
part (such fifty-two (52) week period being referred to herein as the “Exhibition
Period”); provided, however, that, without Fremantle’s prior written consent,
the initial broadcast of the first Episode aired of any Production Order may
not occur any earlier than five (5) months after the initial broadcast of the
last Episode aired of the immediately preceding Production Order and no FBC
Network re-run and no national cable network re-broadcast of any Episode shall
occur during the period from the initial broadcast of the first Episode aired
of any Production Order through the initial broadcast of the last Episode aired
of such Production Order.

 

(b)                                 Exclusivity.

 

(1)                                  Except
as expressly provided otherwise herein (including without limitation as
expressly provided otherwise in paragraph 3(c) below), from the date hereof
through the earlier of (i) the end of the last production season for which FBC
orders Episodes hereunder or (ii) the date that FBC cancels or reduces below
seventeen (17) hours of Episodes any Production Order such that Fremantle is
ordered by FBC to produce less than seventeen (17) hours of Episodes during any
production season (the “Exclusivity Term”), Fremantle and 19TV shall not
exploit, or authorize any third party to exploit, the Series or any Episode or
any motion picture, program or series Based Substantially Upon The-Series And
The Format (as defined below) in the Exhibition Territory in any language on
any form of television (including without limitation free, pay, subscription,
community antenna and closed circuit and other television (including, without
limitation, television exhibition by means of transmission or retransmission
over-the-air or otherwise, or by wire, cable, community antenna system,
multipoint distribution system or any other technique, now known or unknown,
over any network, station or translator [whether full or low power], space
satellite, satellite station or other facility located in or outside the
Exhibition Territory) or on the Internet; provided, however, that it is
acknowledged that transmissions of other broadcasters located outside the
Exhibition Territory may be received by television receivers or other
electronic devices located within the Exhibition Territory and any such
incidental spillover shall not be deemed a breach of this Agreement.  For avoidance of doubt, it is understood and
agreed that Home Video Exploitation (as defined below) shall not be considered
hereunder to be a form of television or internet exploitation that is subject
to the restriction contained in the immediately preceding sentence.  However, with respect to each Episode
produced hereunder, Fremantle and 19TV shall not advertise to the public

 

10

 

or exercise, or authorize any
third party to advertise to the public or exercise, Home Video Exploitation
rights in such Episode in the Exhibition Territory until the initial broadcast
on FBC of the last Episode produced by Fremantle pursuant to the Production
Order of which such Episode is a part; provided, however, that in no event
shall such restriction last beyond the Exclusivity Term or the production
season of which such Episode is a part. 
Notwithstanding anything to the contrary contained herein, Fremantle
shall be free without restriction to exploit and authorize the exploitation of,
clips and excerpts from the Series or any Episode or any motion picture,
program or series Based Substantially Upon The Series And The Format on
television and on the Internet during the Exclusivity Term throughout the
Exhibition Territory, provided that no such clip or except has a continuous
running time of more than five (5) minutes. 
In the event that, during the Exclusivity Term, Fremantle desires to
produce any motion picture, program or series Based Substantially Upon The
Series And The Format for exploitation on television or the Internet in the
Exhibition Territory (including without limitation a Spanish language series),
FBC will negotiate in good faith with Fremantle with regard to the production
and exploitation of such motion picture, program or series.

 

(2)                                  Except
as expressly provided otherwise herein, during the Exclusivity Term, neither
Fremantle nor 19TV shall license any Episode (except clips excerpts as
expressly permitted herein) to be broadcast over any free over-the-air English
language television station having a transmitter located in Tijuana, Mexico or
Windsor, Ontario.  Neither Fremantle nor
19TV shall authorize the pre-release of any Episode for broadcast by any third
party anywhere in the world prior to its scheduled FBC first exhibition;
provided that FBC has given Fremantle reasonable advance written notice of the
date of such scheduled broadcast and provided further that Fremantle shall not
be in breach hereof if any such third party broadcast is prior to any
rescheduled FBC first exhibition.

 

(3)                                  Notwithstanding
the foregoing provisions of this paragraph 3(b), Fremantle may license the
telecast on television (including without limitation free, pay, subscription,
community antenna and closed circuit and other television exhibition) and
exhibition on the Internet of Episodes in the Exhibition Territory during the
Exclusivity Term; provided, however, that:

 

(i)                                     No
such telecast on television or exhibition on the Internet (except clips and
excerpts as expressly permitted herein) in the Exhibition Territory during the
Exclusivity Term shall be made until after, with respect to the telecast on
television of not more than one (1) Episode during any week or any such
exhibition on the Internet, three (3) years from the commencement of the first
production season and, with respect to the telecast on television of more than
one (1) Episode per week (“Stripping”), four (4) years from the commencement of
the first production season;

 

(ii)                                  No
Episode shall be telecast on television or exhibited on the Internet (except
clips and excerpts as expressly permitted herein) in the Exhibition Territory
by any party other than FBC during the Exclusivity Term 

 

11

 

prior to the expiration of the
production season for which it was initially ordered; and

 

(iii)                               FBC
shall have the rights of First Negotiation and of First Refusal set forth in
paragraph 1(d)(2) above and in this paragraph 3(b)(3)(iii), with respect to the
non-prime time Stripping on an approximately five (5) times per week basis of
the Episodes on a “network” (including, without limitation, any free
television, pay television, basic cable network or Internet) basis in the
Exhibition Territory during the Exclusivity Term (any such Stripping is the “Covered
Matter” under this paragraph 3(b)(3)(iii)). 
With respect to said Covered Matter, the Exclusive Negotiation Period
shall be thirty (30) days commencing upon such date as either FBC or Fremantle
elects (which date shall not be earlier than one year prior to the date that
the applicable telecasts could commence), or the 120th day prior to the
expiration of the Exclusivity Term, whichever is earlier, and the First Refusal
Period shall commence upon the expiration of the Exclusive Negotiation Period
and continue until the expiration of the Exclusivity Term.

 

(c)                                  Reserved
Rights.  Fremantle and 19TV shall own
the copyright in the Series and the Episodes and hereby reserve all rights in
and to the Series, the Episodes and the Format not expressly licensed to FBC
hereunder.  Nothing contained in this
Agreement shall be construed to be prejudicial to, or operate in derogation of,
any rights, licenses, privileges or property which Fremantle, 19TV and/or their
successors, licensees or assigns may enjoy or be entitled to as a member of the
public if this instrument were not in existence, including without limitation
Fremantle’s and 19TV’s right to exploit motion pictures, programs or series
Based Substantially Upon The Series And The Format in the Exhibition Territory
during the Exclusivity Term if a member of the public would be entitled to do
so without infringing proprietary rights protectible at law in the Series
and/or the Format without reference to this Agreement.

 

(d)                                 Additional
Productions.  If FBC exercises all of
its Series Options under paragraph 1(b) above and does not cancel or reduce
below seventeen (17) hours of Episodes any Production Order hereunder, and,
after the end of the Exclusivity Term, Fremantle desires to produce any motion
picture, program or series Based Substantially Upon The Series And The Format
for exploitation on television or the Internet in the Exhibition Territory,
then FBC shall have the rights of First Negotiation and of First Refusal set
forth in paragraph l(d)(2) above and in this paragraph 3(d), independently and
separately with respect to the production and license for exhibition of each
and every particular such motion picture, program or series (such production
and license is the “Covered Matter” under this paragraph 3(d)).  With respect to each such Covered Matter, the
Exclusive Negotiation Period shall be thirty (30) days commencing upon the date
that Fremantle, in consultation with 19TV, notifies FBC in writing that they
desire to enter into an arrangement for a Covered Matter, and the First Refusal
Period shall commence upon the expiration of the Exclusive Negotiation Period
and shall continue until the expiration of FBC’s First Refusal Rights under
paragraph 1(d)(l) above.  Once such First
Refusal Period expires, FBC’s rights of First Negotiation and of First Refusal
shall expire.

 

(e)                                  Certain
Definitions.  As used in this
Agreement, a motion picture, program or series is “Based Substantially Upon The
Series And The Format” if and only if such motion 

 

12

 

picture, program or series
bears the “American Idol” title or fits the following description in all
respects: such motion picture, program or series is a singing talent
competition among aspiring pop singers, all of whom are resident in the United
States; the viewing public votes to eliminate contestants and select a final
winner after viewing performances of popular songs by the contestants; the
performances are judged and commented upon by a panel of judges from the music
industry; and the prize for the final winner is a recording agreement; and the
primary initial market for the motion picture, program or series is the United
States.  As used in this Agreement, the
term “Home Video Exploitation” means the exploitation a motion picture or
program, whether by means of a pre-recorded Cassette (as defined below)
(including without limitation the manufacture, distribution, lease, rental,
sale and/or other disposition or delivery of Cassettes) or by means of “downloading”,
streaming or otherwise transmitting such motion picture or program to a viewer,
whereby the viewer can view the motion picture or program in an non-public
setting at any time (subject only to exhibition period length limits, if any)
selected by the viewer (as opposed to selecting from a pre-established
exhibition schedule).  As used in this
Agreement, the term “Cassette” means a copy (whether temporary or permanent, in
any form or made by any process now known or hereafter devised) of a motion
picture or program stored in a cassette, cartridge, videogram, video disc,
tape, magnetic disc or ‘storage/retrieval’ device now known or hereafter devised
and designed to be used in conjunction with a reproduction apparatus which
cause a motion picture or program to be visible on the screen of a television
receiver, television monitor, portable viewing device or any comparable devise
now known or hereafter devised.

 

4.                                       Telephony.  The parties acknowledge that the Series
involves a call-in feature for the public to vote for contestants, among other
things.  Fremantle, in consultation with
19TV, shall determine whether to establish a toll-free (800 number) or pay (900
number) telephone service for such feature subject to FBC’s approval.  It is acknowledged that a toll-fee (800
number) telephone feature had been established for the Episodes to be produced
pursuant to the Initial Order.  If a pay
(900 number) telephone service is established, then FBC and Fremantle, in
consultation with 19TV, shall negotiate in good faith with respect to the terms
thereof, including without limitation the parties’ respective share of revenues
therefrom.  FBC shall pay for all costs
and expenses of such call-in feature, including reimbursing Fremantle and 19TV
for all of their direct, auditable, out-of-pocket costs and expenses in
connection with such call-in feature that are approved by FBC, such approval
not to be unreasonably withheld or delayed. 
FBC shall control all aspects of such call-in feature, subject to a
right of prior approval of Fremantle, in consultation with 19TV, over all
aspects of such call-in feature that Fremantle reasonably believes may impact
the nature and integrity of the Series format and a right of meaningful prior
consultation of Fremantle and 19TV over all other aspects of such call-in
feature.  If FBC enters into one or more
sponsorship agreements with respect to such call-in feature, FBC shall pay to
Fremantle thirty-three and one-third percent (33 1/3%), and to 19TV
thirty-three and one-third percent (33 1/3%), of “Call-In Sponsorship Net
Proceeds” (i.e., all non-returnable revenues actually received by or credited
to FBC in connection with sponsorship rights related to such call-in feature,
after the deduction of all direct, out-of-pocket costs and expenses actually
paid by FBC to unaffiliated third parties solely in connection with such
call-in feature).

 

13

 

5.                                       Off-Network
Television Distribution,  Merchandising
and Print Publication Rights.

 

(a)                                  Division
of Ancillary Net Proceeds.  Fremantle
shall pay to FBC one-third (1/3) of the Ancillary Net Proceeds (as defined
below), if any.  “Ancillary Net Proceeds”
means Ancillary Gross Receipts less Ancillary Distribution Fees and less
Ancillary Costs (as such terms are defined below), determined on
non-cross-collateralized basis among Television Distribution, Merchandising and
Print Publication rights (as such terms are defined below).  “Ancillary Gross Receipts” means all
non-returnable revenues actually received by or credited to Fremantle or any
Defined Fremantle Affiliates (as defined below) from third parties (other than
FBC) on account of (i) the distribution and exhibition of the Episodes on
television (“Television Distribution”), (ii) the exploitation of
merchandise (excluding record albums and other sound recordings and including
any merchandise sold though promotions on the Internet) during the Exclusivity
Term that both bears the name of the Series and is based on the Series
(excluding merchandise that bears the name or likeness of a Series winning
artist or finalist or otherwise touches or concerns a Series winning artist or
finalist and relates primarily to such Series winning artist or finalist) (“Merchandising”),
and (iii) the exploitation of print publications during the Exclusivity Term
that both bears the name of the Series and are based on the Series (excluding
publications that bears the name or likeness of a Series winning artist or
finalist or otherwise touches or concerns a Series winning artist or finalist
and relates primarily to such Series winning artist or finalist) (“Print
Publication”).  A “finalist” is any of
the contestants reaching the final stages of the Series competition pursuant to
any Production Order.  For the Initial
Order, there were ten (10) finalists.  “Ancillary
Distribution Fees” means a distribution fee of twenty seven and one-half (271⁄2%)
of Ancillary Gross Receipts from Television Distribution and twenty-five
percent (25%) of all other Ancillary Gross Receipts.  “Ancillary Costs” means all costs and
expenses incurred by Fremantle or 19TV in connection with Television
Distribution, Merchandising and Print Publication, including without limitation
all costs of style guides, production and marketing materials, trademark
registration, residuals, royalties and other third party payments, taxes,
participations (including without limitation the CAA back-end package commission
but excluding any participation in Ancillary Net Proceeds payable to 19TV), and
deferments.  “Defined Fremantle
Affiliates” means affiliates of Fremantle engaged in the distribution of motion
pictures or television programs for exhibition by third parties or in the
licensing of Merchandising or Print Publication rights for manufacture,
distribution and other exploitation by third parties; provided, however, that
the term “Defined Fremantle Affiliates” does not include the following:
television broadcast stations, electronic transmission systems (including
cable, direct broadcast satellite, microwave and master antenna) and program
delivery services (and other exhibitors of motion pictures and television
programs to viewers by any means now known or hereafter devised), or
laboratories producing and/or distributing motion picture copies, or
merchandisers, manufacturers, sellers, wholesale dealers or retail dealers of
cassettes, discs or of any other products, or book or music publishers, or
parties producing or distributing sound records, or pay television or home
video marketers, or any other parties similar to any of the foregoing excluded
parties (whether or not any of the foregoing excluded parties are affiliates of
Fremantle), or subdistributors.

 

(b)                                 Print
Publishing.  Notwithstanding the
provisions of paragraph 5(a) above, the parties acknowledge and agree that, if
no publishing company affiliated with Bertelsmann AG exploits Print Publication
rights, then Fremantle shall afford Harper Collins a fifteen (15)-business 

 

14

 

day right of negotiation with
respect to the exploitation of Print Publication rights commencing upon
Fremantle’s written notice to Harper Collins. 
If Fremantle and Harper Collins fail to reach an agreement within such
fifteen (15)-business day period, then Fremantle shall be free to negotiate and
enter into a license or other agreement with any third party with respect to
the exploitation of Print Publication rights without any further obligation to
Harper Collins except as set forth in the next sentence.  Fremantle shall not enter into any such
agreement with a third party within one (1) year after the expiration of such
fifteen (l5)-business day negotiation period on terms that are equal or less
favorable to Fremantle than those set forth in Fremantle’s final written offer
submitted to Harper Collins during such negotiation period without first
offering such terms to Harper Collins. 
Harper Collins shall have five (5) business days in which to accept such
offer in writing, and if Harper Collins does not so accept such offer, then
Fremantle shall be free to enter into such agreement with such third
party.  If Fremantle and Harper Collins
enter into any agreement with respect to the exploitation of Print Publication
rights, then (notwithstanding anything to the contrary contained in paragraph
5(a) above), Print Publication shall be excluded from the calculation of
Ancillary Net Proceeds.

 

(c)                                  U.S.
Syndication Subdistribution.  In the
event that Fremantle elects to engage a third party subdistributor that is not
an affiliate of Fremantle to syndicate Episodes of the Series in the free
television market in the United States, Fremantle will discuss in good faith
with FBC the possibility of engaging a FBC affiliate to be such subdistributor;
provided, however, that Fremantle shall have no obligation to conclude any such
arrangement with any FBC affiliate and shall be free to engage any
subdistributor it elects to engage.

 

6.                                       Home
Video.  19TV shall afford FBC a
fifteen business (15)-day right of negotiation with respect to the exercise of
Home Video Exploitation rights in the Episodes commencing upon 19TV’s written
notice to FBC.  If 19TV and FBC fail to
reach an agreement within such fifteen (15)-business day period, then 19TV
shall be free to negotiate and enter into a license or other agreement with any
third party with respect to the exploitation of Home Video Exploitation rights
in the Episodes without any further obligation to FBC except as set forth in
the next sentence.  19TV shall not enter
into any such agreement with a third party within one (1) year after the
expiration of such fifteen (15)-business day negotiation period on terms that
are equal or less favorable to 19TV than those set forth in 19TV’s final
written offer submitted to FBC during such negotiation period without first
offering such terms to FBC.  FBC shall
have five (5) business days in which to accept such offer in writing, and if
FBC does not so accept such offer, then 19TV shall be free to enter into such
agreement with such third party.  If 19TV
and FBC do not enter into any agreement with respect to the exploitation of
Home Video Exploitation rights in the Episodes, then 19TV shall pay to FBC one
third (1/3) of the Home Video Net Proceeds (as defined below), if any.  “Home Video Net Proceeds” means Home Video
Gross Receipts less Home Video Distribution Fees and less Home Video Costs (as
such terms are defined below).  “Home
Video Gross Receipts” means all non-returnable revenues actually received by or
credited to 19TV or any Defined 19TV Affiliates (as defined below) from third
parties on account of the exploitation of Home Video Exploitation rights in the
Episodes.  “Home Video Distribution Fees”
means a distribution fee of twenty-five percent (25%) of Home Video Gross
Receipts.  “Home Video Costs” means all
costs and expenses incurred by 19TV in connection with the exploitation of Home
Video Exhibition rights in the Episodes, including without limitation all
manufacturing and marketing costs, residuals, royalties and other third party
payments, taxes, participations (including without limitation the CAA back-end
package

 

15

 

commission but excluding any
participation in Home Video Net Proceeds payable to Fremantle), and
deferments.  “Defined 19TV Affiliates”
means affiliates of 19TV engaged in the exploitation of Home Video Exploitation
rights in motion pictures or programs; provided, however, that the term “Defined
19TV Affiliates” does not include the following: merchandisers, manufacturers,
sellers, wholesale dealers or retail dealers of cassettes, discs or of any
other products, or any other parties similar to any of the foregoing excluded
parties (whether or not any of the foregoing excluded parties are affiliates of
19TV), or subdistributors.

 

7.                                       Record
Royalty.  19TV shall pay, or cause 19
Recordings Limited or its nominee (as applicable) to pay to FBC a royalty of
one percent (1%) of the dealer price of any Series-branded album containing a
compilation of sound recordings featuring more than one contestant from
Episodes of the Series (and any Series-branded single containing one or more
sound recordings featuring more than one contestant from Episodes of the
Series) (each, a “Series-Branded Compilation Album/Single”), and for which 19
Recordings Limited or its nominee receives a royalty payment from the record
company or other entity undertaking the distribution of such Series-Branded
Compilation Album/Single.  Such royalty shall
be calculated and accounted on the same terms and price and subject to the same
reductions, deductions, recoupments and pro-rations as the royalty payable to
Fremantle by 19 Recordings Limited or its nominee (as applicable) in connection
with such Series-Branded Compilation Album/Single.  Such royalty shall be paid to FBC at the same
time as the royalty payable to Fremantle and shall be calculated based on
worldwide sales.

 

8.                                       Sponsorships.  Fremantle and 19TV may, with FBC’s approval
and involvement, elect to develop one or more sponsorship packages to offer to
FBC’s third party sponsors buying traditional advertising time from FBC on the
Series (“Ad Time Sponsors”), which sponsorship packages shall include product
placements in the Series and other forms of in-show promotions for the Ad Time
Sponsor and may include off-air sponsorship opportunities in connection with
the Series for the Ad Time Sponsor (it being understood that FBC shall have no
interest in any advertising, endorsement or sponsorships using the name or
likeness of a Series winning artist or finalist).  Such sponsorship packages offered to Ad Time
Sponsors that include product placements in the Series and other forms of
in-show promotions shall hereinafter be referred to as the “Sponsorship
Packages”.  Fremantle, 19TV and FBC shall
mutually approve, in advance of the making of any offer, the offering price and
all Other Sponsorship Components (as defined below) of such Sponsorship
Packages to be offered to Ad Time Sponsors. 
Fremantle, 19TV and FBC shall coordinate their respective efforts in
soliciting Ad Time Sponsors and potential Ad Time Sponsors for such Sponsorship
Packages.  Without the approval of FBC,
Fremantle and 19TV may not enter into a Sponsorship Package agreement with any
third party that includes product placements in the Series as aired on FBC or
in-show promotions in the Series as aired on FBC.  Without the approval of Fremantle and 19TV,
FBC may only enter into sponsorship agreements relating to the Series with
third parties that contain a traditional advertising time buy plus, at FBC’s
election, additional sponsorship components that are customarily part of an
exclusively advertising time buy in the U.S. network television industry (“Pure
Advertising Time Buys”).  The terms of
each Sponsorship Package agreement with any Ad Time Sponsors that includes
product placements in the Series and other forms of in-show promotions shall be
jointly negotiated by Fremantle, 19TV and FBC, and such parties shall mutually
approve a reasonable, good faith allocation of revenues between the traditional
advertising time buy and the other sponsorship components (the “Other
Sponsorship Components”) in any such agreement based on 

 

16

 

the relative values of these
components; provided, however, that no less than ten percent (10%) of the total
revenues from each such agreement shall be allocated to the Other Sponsorship
Components and all such Sponsorship Package agreements with Ad Time Sponsors shall
be entered into in FBC’s name.  For
purposes of such allocation, the Other Sponsorship Components shall be
considered to include only such components that are not customarily part of
Pure Advertising Time Buys.  Any proposed
modification in the terms of any Sponsorship Package agreement with any Ad Time
Sponsor that would reduce the Other Sponsorship Component fees payable by the
Ad Time Sponsor shall require the prior written approval of Fremantle and
19TV.  Subject to the next sentence, FBC
shall pay to Fremantle fifty percent (50%) of “Shared Sponsorship Net Proceeds”
(i.e., all nonreturnable revenues (other than revenues from Pure Advertising
Time Buys) actually received by or credited to FBC in connection with
sponsorship rights related to the Series (including without limitation the
revenues mutually-agreed to be allocated to the Other Sponsorship Component in
any Sponsorship Packages), after the deduction of all direct, out-of-pocket
costs and expenses actually paid by FBC to unaffiliated third parties solely in
connection with such Other Sponsorship Components).  For avoidance of doubt and notwithstanding
anything to the contrary contained herein, it is understood and agreed that in
the event any such Sponsorship Package includes any merchandising, telephony
(wireless or otherwise), voting or call-in, website, or non-sponsorship
components (which it may do only with the prior approval of FBC, Fremantle and
19TV), the revenue allocable to such components shall be controlled and split
as otherwise provided in other paragraphs of this Agreement or as agreed among
the parties.  Notwithstanding the
foregoing, it is agreed that if any such Sponsorship Package includes a
wireless telephony component, FBC shall pay to Fremantle thirty-three and
one-third percent (33 1/3%), and to 19TV thirty-three and one-third percent (33
1/3%),] of “Wireless Telephony Net Proceeds” (i.e., the non-returnable revenue
allocable to such wireless telephony component (as mutually agreed among FBC,
Fremantle and 19TV), after the deduction of all direct, out-of-pocket costs and
expenses actually paid by FBC to unaffiliated third parties solely in
connection with such wireless telephony component); provided, however, that
such percentages above in this sentence shall be twenty-five percent (25%) with
respect to Wireless Telephony Proceeds from the agreement with AT&T
relating to the Second Production Order.

 

9.                                       On-Air
Tour Promotion.  FBC hereby consents
to the inclusion in any one or more Episodes of the Series produced for initial
broadcast during the last five (5) weeks of any Production Order of up to ten
(10) seconds in each such Episode promotional mentions (which may include dates
and venues) of any concerts or concert tours featuring Series contestants (it
being understood and agreed that references to the Series website hall not
count towards such ten (10)-second limitation). 
The form and substance of all such promotional mentions shall be subject
to the approval of FBC, which approval shall not be unreasonably withheld or
delayed.  19TV shall pay to FBC two and
one-half percent (2-1/2%) of one hundred percent (100%) of 19TV’s tour net
proceeds, if any, in connection with concerts or concert tours featuring
contestants who appeared in any of the Episodes, which concerts or concert
tours are actually promoted in one or more Episodes as contemplated above.

 

10.                                 On-Air
Promotion of Contestant Single.  FBC
hereby consents to the inclusion in any one or more Episodes of the Series of
up to ten (10) seconds in each such Episode of promotional mentions of any
single containing sound recordings featuring one or more contestants from
Episodes of the Series (each, a “Contestant Single”).  The form and substance 

 

17

 

of all such promotional mentions
shall be subject to the approval of FBC, which approval shall not be
unreasonably withheld or delayed. 
Notwithstanding the foregoing, it is understood and agreed that FBC
consent is not required for the inclusion in any Episodes of promotions for any
Series-Branded Compilation Album/Single and that references to any
Series-Branded Compilation Album/Single shall not count towards such ten
(10)-second limitation.  19TV shall pay,
or cause 19 Recordings Limited or its nominee (as applicable) to pay, to FBC a
royalty of one percent (1%) of the dealer price of any and all Contestant
Single(s) (other than any Series-Branded Compilation Album(s)/Single(s) on
which the royalty provisions set forth in paragraph 7 above shall apply) that
is/are actually promoted in one or more Episodes as contemplated above and for
which 19 Recordings Limited or its nominee receives a royalty payment from the
record company or other entity undertaking the distribution of such Contestant
Single(s).

 

11.                                 Accounting
and Audit Rights.

 

(a)                                  Ancillary
Net Proceeds.  Fremantle shall
account to FBC with respect to FBC’s share of Ancillary Net Proceeds, if any,
on a semi-annual calendar year basis within ninety (90) days following the end
of each such semi-annual period provided there are payments due FBC, and such
accounting shall be accompanied by payment of FBC’s share of Ancillary Net
Proceeds payable for such semi-annual period. 
During the term of this Agreement, FBC or its designated certified
public accountant may, at Fremantle’s principal place of business and at
reasonable times during business hours upon reasonable advance, written notice,
but no more than once per year, inspect any relevant portions of books and
records of Fremantle relating to Ancillary Net Proceeds.  Any statement or report submitted to FBC by
Fremantle hereunder shall be deemed conclusively true, accurate and binding as
to all of the items and information contained therein if not disputed in
writing by FBC within eighteen (18) months after such statement or report shall
have been provided to FBC, which written notice shall state with specificity
the basis of such objection and the transactions concerned.  FBC must commence an action in a court of
competent jurisdiction within twelve (12) months of the date of such dispute or
any claim or cause of action in connection therewith shall be deemed waived.

 

(b)                                 Record
Royalties.  During the term of this
Agreement, FBC or its designated certified public accountant may at reasonable
times during business hours upon reasonable advance, written notice, but no
more than once per year, inspect any relevant portions of books and records of
19TV or 19 Recordings Limited or its nominee (as applicable) relating to the
royalty payable to FBC under paragraphs 7 and 10 above.  Any statement or report submitted to FBC by
19TV or 19 Recordings Limited or its nominee, as applicable, hereunder shall be
deemed conclusively true, accurate and binding as to all of the items and
information contained therein if not disputed in writing by FBC within eighteen
(18) months after such statement or report shall have been provided to FBC,
which written notice shall state with specificity the basis of such objection
and the transactions concerned.  FBC must
commence an action in a court of competent jurisdiction within twelve (12)
months of the date of such dispute or any claim or cause of action in
connection therewith shall be deemed waived.

 

(c)                                  Shared
Sponsorship Net Proceeds, Call-In Sponsorship Net Proceeds and Wireless
Telephony Net Proceeds.  FBC shall
account to Fremantle and 19TV with respect to Fremantle’s share of Shared
Sponsorship Net Proceeds and Fremantle and 19TV’s share of Call-In Sponsorship
Net Proceeds and Wireless Telephony Net Proceeds, if any, on a semi-annual 

 

18

 

calendar year basis within
ninety (90) days following the end of each such semi-annual period provided
there are payments due Fremantle and/or 19TV, and such accounting shall be
accompanied by payment of Fremantle’s share of Shared Sponsorship Net Proceeds
and Fremantle and 19TV’s share of Call-In Sponsorship Net Proceeds and Wireless
Telephony Net Proceeds payable for such semi-annual period.  During the term of this Agreement, Fremantle
and/or 19TV (or their designated certified public accountant(s)) may, at FBC’s
principal place of business and at reasonable times during business hours upon
reasonable advance, written notice, but no more than once per year, inspect any
relevant portions of books and records of FBC relating to Shared Sponsorship
Net Proceeds, Call-In Sponsorship Net Proceeds and Wireless Telephony Net
Proceeds.  Any statement or report
submitted to Fremantle and 19TV by FBC hereunder shall be deemed conclusively true,
accurate and binding as to all of the items and information contained therein
if not disputed in writing by Fremantle and/or 19TV within eighteen (18) months
after such statement or report shall have been provided to Fremantle and 19TV,
which written notice shall state with specificity the basis of such objection
and the transactions concerned. 
Fremantle and/or 19TV must commence an action in a court of competent
jurisdiction within twelve (12) months of the date of such dispute or any claim
or cause of action in connection therewith shall be deemed waived.

 

12.                                 Approvals.  FBC shall have an approval right with respect
to the key elements of the Series, including the budget for each Episode (each,
an “Approved Budget”), host(s), contestants, executive producers (Cecile
Frot-Coutaz, Simon Fuller and Simon Jones are hereby pre-approved),
co-executive producers (Nigel Lythgoe, Ken Warwick and Brian Gadinsky are
hereby pre-approved), producers, director(s), music compositions (which musical
compositions are to be selected by 19TV, subject to budgetary and clearance
constraints, and approved by FBC after consultation with Fremantle), and
production sets for the Series.  FBC’s
approval rights under this Agreement shall be exercised reasonably and in good
faith so as not to prevent Fremantle’s on-schedule and on-budget
production and delivery of the Episodes.

 

13.                                 Talent.

 

(a)                                  Publicity
Services.  Fremantle shall include in
its agreements with the host(s), judges and each contestant appearing in any
Episode an obligation to appear on FBC programs to promote the Series.

 

(b)                                 Performing
Services.  Fremantle shall include in
its agreements with each of the final thirty (30) contestants appearing in
Episodes produced pursuant to any Production Order, provisions whereby each
such contestant agrees (i) not to appear on television (other than in the
Series or in promotional or guest appearances) without Fremantle’s, 19TV’s or
FBC’s prior written consent from the date of the agreement with such contestant
until thirty (30) days following the first broadcast of the Episode announcing
the winner of the competition during such Production Order and (ii) to a first
negotiation/first refusal right for FBC, lasting until thirty (30) days
following the first broadcast of the last Episode of the Production Order in
which such contestant appears with respect to such contestant’s performing
services in television programs and theatrical motion pictures (other than
promotional and guest appearances).

 

19

 

14.                                 Third
Party Obligations.

 

(a)                                  Advertising
and Promotion.  FBC shall comply with
all of Fremantle’s contractual restrictions and requirements of which FBC is
notified in writing and approves (which approval shall not to be unreasonably
withheld or delayed), and all guild and union restrictions and requirements, in
connection with the advertising and promotion of the Series and the Episodes,
including without limitation with regard to the use of music, clips, and names,
likenesses and other personal identification of individuals appearing in,
performing services in, or providing rights or materials in connection with,
the Series.  Fremantle will inform FBC if
Fremantle is unable to obtain music clearances within the Approved Budget for
use of any music contained in the Series in connection with advertising and
promotion of the Series, in which case, notwithstanding anything to the
contrary contained herein, FBC shall be responsible for obtaining and paying
for such music clearances if FBC elects to use such music in connection with
advertising and promoting the Series.

 

(b)                                 Credit.  FBC acknowledges that, unless and until
Fremantle and 19TV notify FBC to the contrary, Simon Fuller, Cecile Frot-Coutaz
and Simon Jones shall be entitled to executive producer credit on-screen in
each Episode on a shared card, that Nigel Lythgoe, Ken Warwick and Brian
Gadinsky shall be entitled to co-executive producer credit on-screen in each
Episode on a shared card, that Simon Fuller shall be entitled to “created by”
credit on-screen in each Episode, and that Fremantle and 19TV shall be entitled
to receive a company “in association with” credit (which may be in the form of
a logo or animated logo) on-screen in each Episode on a separate card at the
end of each Episode.  No casual or
inadvertent failure by FBC to comply with the credit obligations hereunder
shall be deemed a material breach of this Agreement; provided that FBC shall
make reasonable efforts to cure on a prospective basis any such failure to
accord credit by altering future prints and ads.

 

15.                                 Residuals
and Music Performance Clearance.  FBC
hereby agrees to reimburse Fremantle or its designee for all guild and union
residual and reuse obligations (including fringes and taxes thereon) arising
out of FBC’s exploitation of the Series and the Episodes hereunder.  FBC shall be solely responsible for clearing
and paying all music performance rights and fees related to FBC’s exploitation
of the Series and Episodes hereunder. 
Fremantle shall be responsible for obtaining all music synchronization
licenses necessary for FBC’s exhibition of the Episodes as permitted hereunder.

 

16.                                 Miscellaneous.

 

(a)                                  Assignment.  FBC may not assign or otherwise transfer this
Agreement or any of its rights or obligations hereunder in whole or in part
without the prior written consent of Fremantle and 19TV; provided, however,
that FBC may assign or otherwise transfer this Agreement and/or its rights or
obligations hereunder in whole or in part without Fremantle’s or 19TV’s consent
in connection with the sale or other transfer of all or substantially all of
FBC’s assets.  Fremantle and 19TV may not
assign or otherwise transfer this Agreement and/or any of its rights or
obligations hereunder in whole or in part without the prior written consent of
FBC; provided, however, that Fremantle may assign or otherwise transfer this
Agreement and/or their rights or obligations hereunder in whole or in part
without FBC’s consent in connection with the sale or other transfer of all or
substantially all of Fremantle’s assets and 19TV may assign or otherwise
transfer this Agreement and/or their rights or obligations hereunder in whole
or in part without FBC’s consent in connection with the sale or other transfer
of all or substantially all of 

 

20

 

19TV’s assets.  This Agreement will bind and inure to the
benefit of the parties hereto and their respective successors and permitted
assigns.

 

(b)                                 Notices.  All notices, demands, and other
communications to any party hereunder shall be in writing and shall be given to
such party at the address set forth below, or such other address as either
party may hereafter specify in writing, and may be given by means of hand
delivery, air mail, express mail, express courier service or facsimile.  All such notices will be deemed given only
upon receipt by the appropriate party.

 

If to Fremantle:

 

FremantleMedia
North America, Inc.

2700 Colorado
Avenue

Suite 450

Santa Monica,
California 90404

Attention:                                         Cecile
Frot-Coutaz

 

If to 19TV:

 

33 Ransomes
Dock

35-37 Parkgate
Road

London SW 11
4NP England

Attention:  Simon Fuller

 

If to FBC:

 

FBC
Broadcasting Company

P.O. Box 900

Beverly Hills,
California 90213

Attention:
Marisa Fermin and Minna Taylor

 

(c)                                  Governing
Law.  This Agreement shall be deemed
to have been made under and shall be interpreted in accordance with and
governed by the internal laws of the State of California and shall be deemed by
the parties and for purposes of choice of law, to be executed and performed
wholly in the County of Los Angeles.  Any
action or proceeding related to or arising out of this Agreement shall be
brought and maintained in the state and federal courts located in Los Angeles
County, California.  The parties
stipulate that either such forum is convenient to them.  Any process in such proceeding may be served
by, among other methods, delivering it or mailing it, by registered or
certified mail, directed to, as applicable, Fremantle’s, or FBCs address as
designated in this Agreement.  Any such
delivery or mail service shall have the same effect as personal service within
the State of California.  The foregoing
shall not preclude any party hereto from seeking enforcement of any order or
judgment rendered by any California court in any other court or forum.

 

(d)                                 Counterparts.  This Agreement may be executed by facsimile
and in separate counterparts, each of which will be deemed an original, and
when executed, separately or together, all of such counterparts will constitute
a single original instrument, effective in the 

 

21

 

same manner as if all parties
hereto had executed one and the same instrument.  Any executed faxed copy hereof shall be
deemed to be an original.

 

(e)                                  Withholdings.  All payments to any party hereunder shall be
subject to such withholdings and deductions as may be permitted or required by
law.

 

(f)                                    No
Partnership.  Nothing herein shall
constitute a partnership between or joint venture among any of the parties
hereto or constitute any party the agent of any other.  No party hereto shall hold itself out
contrary to the terms of this paragraph. 
No party hereto shall become liable by any representation, act or
omission of any other party contrary to the provisions hereof.

 

(g)                                 Waivers,
Amendments, Prior Agreement and More Formal Agreement.  No waiver of any term or condition of this
Agreement shall be construed as a waiver of any other term or condition; nor
shall any waiver of any default under this Agreement be construed as a waiver
of any other default.  The descriptive
headings of the sections of this Agreement are for convenience only and do not
constitute a part of this Agreement.  The
parties hereto anticipate entering into a more formal agreement with respect to
the subject matter hereof, which such agreement shall contain additional FBC
standard provisions for agreement of this type consistent with the terms
hereof, subject to good faith negotiations. 
Until such more formal agreement is prepared and executed by all
parties, or if for any reason it is not prepared and executed by all parties,
it is agreed that this Agreement constitutes a binding contract between the
parties, contains the full and complete understanding among the parties hereto
with respect to the subject matter hereof, supersedes all prior agreements and
understandings, whether written or oral, pertaining thereto and cannot be
modified except by a written instrument signed by each party hereto.

 

22

 

Please indicate your acceptance of and agreement with the foregoing by
signing in the space provided below and returning an executed copy hereof to
Fremantle.

 

Sincerely,

 

FremantleMedia North America, Inc.

 

 

	
  By:

  	
   

  	
   

  
	
   

  
	
  Its:

  	
   

  	
   

  
	
   

  
	
   

  
	
  19TV Limited

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  
	
  Its:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  ACCEPTED AND AGREED TO

  
	
  AS OF THE DATE HEREOF:

  
	
   

  
	
  Fox Broadcasting
  Company

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  
	
  Its:

  	
   

  	
   

  

 

23Exhibit
10.16

 

From:              19
TV Limited

33 Ransomes Dock

35-37 Parkgate Road

London SW11 4NP

 

Pearson Television Operations BV

1 Stephen Street

London W1T 1AL

 

6 July 2001

 

Dear Sirs

 

Pop Idol/Idols

 

We write to confirm our agreement with you as follows:

 

	
  1.

  	
  Definitions

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  In this agreement the following words or
  expressions shall have the meaning set against them below:

  
	
   

  	
   

  
	
   

  	
  1.1             “19
  TV”

  	
  19 TV
  Limited

  
	
   

  	
   

  	
   

  
	
   

  	
  1.2             “Artist”

  	
  a singer
  taking part in a Competition

  
	
   

  	
   

  	
   

  
	
   

  	
  1.3             “Artist
  Merchandise”

  	
  products
  bearing the name or likeness of a Winning Artist or Finalist and otherwise
  touching or concerning a Winning Artist or Finalist (excluding Programme
  Merchandise)

  
	
   

  	
   

  	
   

  
	
   

  	
  1.4             “Artist
  Sponsorship”

  	
  advertising,
  endorsement or sponsorship using the name or likeness of a Winning Artist or
  Finalist

  
	
   

  	
   

  	
   

  
	
   

  	
  1.5             “Competition”

  	
  the
  competition forming part of the Series to find a Winning Artist in the
  Relevant Territory

  
	
   

  	
   

  	
   

  
	
   

  	
  1.6             “Domain
  Names”

  	
  domain names
  registered by 19 TV or Pearson including the Names or any names similar to the
  Names that may be registered

  
	
   

  	
   

  	
   

  
	
   

  	
  1.7             “Finalists”

  	
  the [ten]
  Artists reaching the final stages of the Competition in the Relevant
  Territory

  
	
   

  	
   

  	
   

  
	
   

  	
  1.8             “Format”

  	
  the
  television format “Pop Idol” or “Idols” created by 19 TV and developed by 19
  TV and Pearson

  
	
   

  	
   

  	
   

  
	
   

  	
  1.9             “Format
  Fee”

  	
  six per cent
  (6%) of all gross monies (excluding VAT or similar sales tax) received by the
  Local TV Company from a broadcaster for the production and transmission of a Programme
  or Series based on the Format 

  
				

 

 

	
   

  	
   

  	
   

  
	
   

  	
  1.10           “Format
  Owners”

  	
  19 TV and
  Pearson jointly

  
	
   

  	
   

  	
   

  
	
   

  	
  1.11           “Gross
  Receipts” 

  	
  gross monies
  received by or credited to 19 TV or Pearson (as appropriate) from
  exploitation of the relevant rights including (without limitation) any
  contributions by third parties to expenditure in relation to such rights

  
	
   

  	
   

  	
   

  
	
   

  	
  1.12           “Local
  Management Company”

  	
  the person,
  firm or corporation with whom the Winning Artist or Finalist in the Relevant
  Territory enters into a Management Agreement

  
	
   

  	
   

  	
   

  
	
   

  	
  1.13           “Local
  Record Company”

  	
  the person,
  firm or corporation with whom the Winning Artist or Finalist in the Relevant
  Territory enters into a Recording Agreement

  
	
   

  	
   

  	
   

  
	
   

  	
  1.14           “Local
  Merchandising and Sponsorship Company”

  	
  the person
  firm or corporation with whom the Winning Artist or Finalist in the Relevant
  Territory enters into a Merchandising and Sponsorship Agreement

  
	
   

  	
   

  	
   

  
	
   

  	
  1.15           “Local
  TV Company”

  	
  the person
  firm or corporation authorised to make Programmes or a Series in the Relevant
  Territory

  
	
   

  	
   

  	
   

  
	
   

  	
  1.16           “Management
  Agreement”

  	
  an agreement
  for the worldwide management of the career of the Winning Artist in a
  Relevant Territory

  
	
   

  	
   

  	
   

  
	
   

  	
  1.17           “Masters”

  	
  sound
  recordings featuring the Winning Artist released in the Relevant Territory
  upon which 19 Recordings Limited receives a royalty payment from the record
  company or any other entity undertaking the distribution of records

  
	
   

  	
   

  	
   

  
	
   

  	
  1.18           “Merchandising
  and Sponsorship Agreement”

  	
  an agreement
  for the exclusive worldwide right to use the name and likeness of the Winning
  Artist in a Relevant Territory for advertising, endorsement, merchandising
  and sponsorship

  
	
   

  	
   

  	
   

  
	
   

  	
  1.19           “Names”

  	
  “Pop Idol”,  “Idols” and any other name approved by 19
  TV and Pearson used in the Relevant Territory in connection with Programmes
  or a Series

  
	
   

  	
   

  	
   

  
	
   

  	
  1.20           “Net
  Advance”

  	
  the gross
  advance received by 19 Recordings in respect of Masters after the deduction
  of:—

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1.20.1  VAT;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1.20.2  advances paid to the Winning
  Artist;

  

 

2

 

	
   

  	
   

  	
  1.20.3  advances to producers, mixers or
  remixers;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1.20.4  recording costs;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1.20.5  video costs;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1.20.6  tour support;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1.20.7

  	
  reserves in
  relation to royalties payable to the Winning Artist or producers, mixers or
  remixers;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1.20.8

  	
  other
  payments to third parties in relation to the Masters or any record embodying
  the Masters

  
	
   

  	
   

  	
   

  
	
   

  	
  1.21           “Net
  Receipts”

  	
  Gross
  Receipts after the deduction of:-

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1.21.1  VAT or other sales taxes forming
  part of Gross Receipts;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1.21.2  out of pocket expenses
  reasonably incurred by 19 TV or Pearson (as appropriate) in relation to
  exploitation of the relevant rights;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1.21.3  payments required to be paid to
  third parties (for example to broadcasters) from the appropriate
  exploitation;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1.21.4  (in relation to merchandising
  and sponsorship) costs of style guide, production of marketing materials and
  trade mark registration;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1.21.5  (in relation to Websites)
  Pearson shall be entitled to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)  recoup
  the budget for production of the core site agreed with 19 TV;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)  recoup
  the costs of versioning the core site to produce local Websites which costs
  may include, for the avoidance of doubt, a reasonable charge (approved by 19
  TV) for the services of Pearson’s in-house web team in producing and
  operating the versioned Website;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (c)  deduct
  commissions paid to third parties for services provided in generating
  revenues, such as advertising and sponsorship sales;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (d)  deduct
  third party costs, which may for the avoidance of doubt include a percentage
  of revenues paid to a third party in lieu of direct fees or services
  provided, such as hosting.

  

 

3

 

	
   

  	
   

  	
   

  
	
   

  	
  1.22           “Net
  Royalty”

  	
  the gross
  royalty (expressed as a percentage of dealer price) payable to 19 Recordings
  Limited less the royalty (expressed as a percentage of dealer price) payable
  by 19 Recordings Limited to the Winning Artist, producers, mixers, remixers,
  Pearson and the broadcaster 

  
	
   

  	
   

  	
   

  
	
   

  	
  1.23           “Pearson”

  	
  Pearson
  Television Operations BV

  
	
   

  	
   

  	
   

  
	
   

  	
  1.24           “Pearson
  Associate”

  	
  a subsidiary
  of the RTL Group SA which is also a company in the group of companies
  providing the production businesses of the RTL Group falling under the
  responsibilities of the CEO of the RTL Production Businesses and, for the
  avoidance of doubt, specifically excluding any other company of the RTL
  Group, including any broadcasting company

  
	
   

  	
   

  	
   

  
	
   

  	
  1.25           “Producer
  Margin”

  	
  Pearson’s
  gross profit from production of any Programme or Series made for transmission
  in the United Kingdom (in calculating gross profit Pearson shall deduct all
  costs associated with the production of the Programme or Series including
  9.5% overhead contribution in the United Kingdom 

  
	
   

  	
   

  	
   

  
	
   

  	
  1.26           “Programme”

  	
  a television
  programme based on the Format

  
	
   

  	
   

  	
   

  
	
   

  	
  1.27           “Programme
  Merchandise”

  	
  products
  bearing, the Name(s) of a Programme or Series and developed from the Format,
  a Programme or Series such as books on the Programme or Series but excluding
  Video Rights and Artist Merchandise

  
	
   

  	
   

  	
   

  
	
   

  	
  1.28           “Programme
  Sponsorship”

  	
  third party
  sponsorship of Programmes or any Series but excluding Artist Sponsorship and
  on-air sponsorship

  
	
   

  	
   

  	
   

  
	
   

  	
  1.29           “Recording
  Agreement”

  	
  the
  exclusive recording agreement between the Local Record Company and the
  Winning Artist or Finalist for the Relevant Territory

  
	
   

  	
   

  	
   

  
	
   

  	
  1.30           “Relevant
  Territory”

  	
  the country
  or countries for which Television Rights are granted to a Local TV Company

  
	
   

  	
  1.31           “Series”

  	
  a Series of
  Programmes based on the Format

  
	
   

  	
   

  	
   

  
	
   

  	
  1.32           “Telephony
  Rights”

  	
  the right to
  select and receive income from a telecommunications company for such company
  providing premium rate phone lines for a Programme or Series in the Relevant
  Territory

  

 

4

 

	
   

  	
   

  	
   

  
	
   

  	
  1.33           “Television
  Rights”

  	
  the right to
  develop and produce and license others to develop and produce and arrange for
  the broadcast or other transmission of a Programme or a Series in the
  Relevant Territory on any and all platforms including (without limitation)
  any form of cable, terrestrial or satellite TV (whether analogue or digital
  transmission) whether free to air on any form of pay television [and for the
  avoidance of doubt any streaming of Programmes or Series by way of internet
  protocols or any other transmission protocol of any kind]

  
	
   

  	
   

  	
   

  
	
   

  	
  1.34           “Territory”

  	
  the World

  
	
   

  	
   

  	
   

  
	
   

  	
  1.35           “Trade
  Marks”

  	
  the
  registered and unregistered trade marks in “Pop Idol”, “Idols” or any other
  Names

  
	
   

  	
   

  	
   

  
	
   

  	
  1.36           “Video
  Rights”

  	
  the right to
  make, distribute and sell mechanical audio-visual devices (including VHS and
  DVD) of a Programme or a Series in the Relevant Territory

  
	
   

  	
   

  	
   

  
	
   

  	
  1.37           “Website”

  	
  the official
  website for a Programme or Series in the Relevant Territory

  
	
   

  	
   

  	
   

  
	
   

  	
  1.38           “Winning
  Artist” 

  	
  the winner
  of the Competition in the Relevant Territory

  
	
   

  	
   

  	
   

  
	
  2.

  	
  Ownership

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  2.1             The
  Format shall be owned by 19 TV and Pearson in the indivisible shares two
  thirds to 19TV and one third to Pearson. 
  To the extent required 19 TV hereby irrevocably assigns to Pearson
  with full title guarantee such share of the Copyright and other intellectual
  property rights in and to the Format throughout the Territory for the full
  period of copyright (including all renewals and extensions thereof).

  
	
   

  	
   

  
	
   

  	
  2.2             The
  Domain Names shall be owned by 19 TV and Pearson in the shares two thirds to
  19 TV and one third to Pearson.

  
	
   

  	
   

  
	
   

  	
  2.3             The
  Trade Marks shall be owned by 19 TV and Pearson in the shares two thirds to
  19 TV and one third to Pearson.

  
	
   

  	
   

  
	
   

  	
  2.4             The
  ownership pursuant to 2.1, 2.2 and 2.3 above shall be as tenants in
  common.  Neither party shall exploit or
  sell its share of the Format except as provided herein.

  

 

5

 

	
  3.

  	
  License of
  Television Rights

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  3.1             The
  Format Owners license to Pearson the sole and exclusive right to exploit the
  Television Rights throughout the Territory. 
  Pearson Television Productions Limited shall be the Local TV Company
  for the United Kingdom and shall enter into an agreement with ITV Network
  Limited for broadcast of the first Series in the United Kingdom in a form
  consistent with the Letter of Intent attached as Exhibit ‘A’.  Pearson shall sub-licence Television Rights
  to Local TV Companies approved by 19 TV. 
  Pearson Associates are deemed approved by 19 TV.  Any Local TV Company not being a Pearson
  Associate shall be deemed approved by 19 TV if the agreement with such
  company guarantees the Programme or Series is to be broadcast on free to air
  TV.

  
	
   

  	
   

  
	
   

  	
  3.2             The
  Local TV Company shall pay the Format Fee to the Format Owners in
  consideration of the licence of Television Rights.  If the Local TV Company is not a Pearson
  Associate, Pearson shall be entitled to retain 30% of the Format Fee and
  shall pay to the Format Owners 70% of the Format Fee. The 30% of Format Fee
  retained by Pearson shall be in consideration of Pearson selling the
  Television Rights and supervising the quality of the production of Programmes
  or Series by the Local TV Company.

  
	
   

  	
   

  
	
   

  	
  3.3             Pearson
  shall pay to 19 TV 10% of the Producer Margin on all Programmes or Series
  made by Pearson for transmission in the United Kingdom.

  
	
   

  	
   

  
	
   

  	
  3.4             Pearson
  will account to 19 TV for two thirds of all Format Fees received by Pearson
  from Local TV Companies.

  
	
   

  	
   

  
	
   

  	
  3.5             Pearson
  will procure the following co-producer credit appears on the first or last
  roll credit (at 19 TV’s election) on all copies of any Programme or Series
  made for transmission in the United Kingdom:

  
	
   

  	
   

  
	
   

  	
  “Produced In Association with 19 TV Limited
  or Co Produced by 19 TV Limited” (at 19 TV’s election)

  
	
   

  	
   

  
	
   

  	
  3.6             Pearson
  will procure the following credits appear on all copies of Programmes in the
  first Series made for transmission in the United Kingdom:

  
	
   

  	
   

  
	
   

  	
  “Co-Executive Producers Richard Holloway and Nigel Lythgoe”

  
	
   

  	
   

  
	
   

  	
  “Associate Producer — Simon Fuller”

  
	
   

  	
   

  
	
   

  	
  3.7             Pearson
  will pay to 19 TV a fee of £20,000 for the services of Nigel Lythgoe as
  Executive Producer and a fee of £10,000 for the services of Simon Fuller as
  Associate Producer. 

  

 

6

 

	
   

  	
  3.8             19
  TV will have the right to select all musical compositions to be used in each
  Programme or Series made for transmission in the United Kingdom or the United
  States of America.  19 TV will have the
  right to approve all musical compositions to be used in each Programme or
  Series made for transmission outside the United Kingdom or USA (such approval
  not to be unreasonably withheld). Pearson undertake to include such selection
  or approval right in each license of Television Rights.  It is acknowledged musical compositions
  selected or approved have to be cleared for use in the Programme or Series
  concerned.

  
	
   

  	
   

  
	
  4.

  	
  The Competition

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  4.1             Each
  Local TV Company shall be entitled to operate the Competition as part of the
  license of Television Rights.  The form
  of the Competition is to take in each Relevant Country and (other than those
  set out in 4.2 below) the prizes to be awarded to the Winning Artist shall be
  approved by Pearson and 19 TV.

  
	
   

  	
   

  
	
   

  	
  4.2             Each
  Local TV Company will be required to enter into a TV Contract with each
  Finalist pursuant to which each Finalist will:-

  
	
   

  	
   

  
	
   

  	
  4.2.1        enter into
  a Recording Agreement with the Local Record Company; 

  
	
   

  	
   

  
	
   

  	
  4.2.2        enter into
  a Merchandising and Sponsorship Agreement with the Local Merchandising and
  Sponsorship Company in a form approved by Pearson and 19 TV;

  
	
   

  	
   

  
	
   

  	
  4.2.3        enter into
  a Management Agreement with the Local Management Company in a form approved
  by Pearson and 19 TV;

  
	
   

  	
   

  
	
   

  	
  4.2.4        agree
  restrictions on that Artist’s appearances on television or ability to release
  records for at least 3 months after transmission of the Programme or Series; 

  
	
   

  	
   

  
	
   

  	
  4.2.5        agree to
  keep all aspects of the Programme or Series strictly confidential.

  
	
   

  	
   

  
	
   

  	
  4.3             It
  is agreed that for the United Kingdom:- 

  
	
   

  	
   

  
	
   

  	
  4.3.1        the Local
  Record Company will be 19 Recordings Limited;

  
	
   

  	
   

  
	
   

  	
  4.3.2        the Local
  Merchandising and Sponsorship Company will be 19 Merchandising Limited; and

  
	
   

  	
   

  
	
   

  	
  4.3.3        the Local
  Management Company will be 19 Management Limited.

  
	
   

  	
   

  
	
   

  	
  4.4             It
  is agreed that for the United States of America:-

  
	
   

  	
   

  
	
   

  	
  4.4.1      the
  Local Record Company shall be 19 Recordings Limited or its nominee;

  
	
   

  	
   

  
	
   

  	
  4.4.2        the Local
  Merchandising and Sponsorship Company shall be 19 Merchandising Limited or
  its nominee;

  

 

7

 

	
   

  	
  4.4.3        the Local
  Management Company shall be 19 Management Limited or its nominee.

  
	
   

  	
   

  
	
   

  	
  4.5             It
  is agreed that for each Relevant Territory outside the United Kingdom and the
  United States of America:

  
	
   

  	
   

  
	
   

  	
  4.5.1        the Local
  Record Company shall be designated by 19 TV after consultation with Pearson; 

  
	
   

  	
   

  
	
   

  	
  4.5.2        the Local
  Merchandising and Sponsorship Company shall be a Pearson Associate or such
  other company selected by mutual agreement between 19 TV and Pearson;

  
	
   

  	
   

  
	
   

  	
  4.5.3        the Local
  Management Company shall be selected by mutual agreement between 19 TV and
  Pearson.

  
	
   

  	
   

  
	
  5.

  	
  License of
  Programme Merchandise and Programme Sponsorship Rights

  
	
   

  	
   

  
	
   

  	
  5.1             Pearson
  shall be entitled to exploit Programme Merchandise in relation to Programmes
  or Series made for transmission in the United Kingdom.

  
	
   

  	
   

  
	
   

  	
  5.2             19
  TV shall be entitled to Programme Sponsorship rights in relation to
  Programmes or Series made for transmission in the United Kingdom.

  
	
   

  	
   

  
	
   

  	
  5.3             In
  each Relevant Territory outside the United Kingdom Pearson or a Pearson
  Associate shall exploit Programme Merchandise and Programme Sponsorship.  If Pearson or a Pearson Associate does not
  wish to exploit such rights the identity of the third party to be granted
  such rights shall be approved by 19 TV and the terms of such grant shall be
  approved by 19 TV.

  
	
   

  	
   

  
	
   

  	
  5.4             Pearson
  shall pay to 19 TV:-

  
	
   

  	
   

  
	
   

  	
  5.4.1        50% of Net
  Receipts from exploitation of Programme Merchandise in the Programmes or
  Series made for transmission in the United Kingdom; 

  
	
   

  	
   

  
	
   

  	
  5.4.2        50% of Net
  Receipts from exploitation of Programme Merchandise in Programmes or Series
  made for transmission outside the United Kingdom;

  
	
   

  	
   

  
	
   

  	
  5.4.3        50% of Net
  Receipts from exploitation of Programme Sponsorship in Programmes or Series
  made for transmission outside the United Kingdom.

  
	
   

  	
   

  
	
   

  	
  5.5             19
  TV shall pay to Pearson 20% of Net Receipts from exploitation of Programme
  Sponsorship for Programmes or Series made for transmission in the United
  Kingdom.

  
	
   

  	
   

  
	
   

  	
  5.6             19
  TV and Pearson shall consult each other in relation to the negotiation of
  agreements with third parties for Programme Sponsorship and Programme
  Merchandise.

  
	
   

  	
   

  

 

8

 

	
   

  	
  5.7             Pearson
  acknowledge that 19 TV may negotiate Programme Sponsorship agreements that
  include elements of exploitation of Programme Merchandise or Internet
  Rights.  19 TV shall obtain Pearson’s
  approval (not to be unreasonably withheld) of the contract and terms for such
  elements and the Net Receipts from such elements will be divided in the
  appropriate shares pursuant to this agreement.  

  
	
   

  	
   

  
	
  6.

  	
  License of
  Video Rights

  
	
   

  	
   

  
	
   

  	
  6.1             The
  Video Rights for Programmes or Series made for transmission in the United
  Kingdom and United States of America are exclusively licensed to 19 TV.

  
	
   

  	
   

  
	
   

  	
  6.2             The
  Video Rights for Programmes or Series made for transmission in the Territory
  excluding the United Kingdom and United States of America are exclusively
  licensed to Pearson.

  
	
   

  	
   

  
	
   

  	
  6.3             19
  TV agree to pay to Pearson 50% of Net Receipts from exploitation of Video
  Rights pursuant to 6.1 above.

  
	
   

  	
   

  
	
   

  	
  6.4             Pearson
  agree to pay to 19 TV 50% of Net Receipts from exploitation of Video Rights
  pursuant to 6.2 above.

  
	
   

  	
   

  
	
  7.

  	
  Internet
  Rights

  
	
   

  	
   

  
	
   

  	
  7.1             Pearson
  will build all Websites using the Domain Names at Pearson’s sole expense
  including the building of the core site, versioning the core site for each
  Relevant Territory and maintenance, updating and running costs for each Website.

  
	
   

  	
   

  
	
   

  	
  7.2             The
  design of the core site will be approved by 19 TV.

  
	
   

  	
   

  
	
   

  	
  7.3             Pearson
  will pay to 19 TV 50% of Net Receipts from the operation of Websites.

  
	
   

  	
   

  
	
  8.

  	
  Telephony
  Rights

  
	
   

  	
   

  
	
   

  	
  8.1             Pearson
  will have the exclusive right to exploit Telephony Rights throughout the
  Territory.

  
	
   

  	
   

  
	
   

  	
  8.2             Pearson
  will pay to 19 TV 50% of Net Receipts from exploitation of Telephony Rights. 

  
	
   

  	
   

  
	
  9.

  	
  Winning
  Artist Rights

  
	
   

  	
   

  
	
   

  	
  9.1             19
  TV agrees to procure the payment to Pearson by 19 Recordings Limited or other
  Local Record Company of a royalty of 1% of dealer price on records embodying
  Masters on the first album or associated singles released by the Winning
  Artist (“First Album Masters”) in the Relevant Territory. 

  
	
   

  	
   

  
	
   

  	
  9.2             19
  TV agrees to procure the payment to Pearson by 19 Recordings Limited or other
  Local Record Company of a royalty on records embodying Masters (other than
  First Album Masters).  The royalty will
  be 1% of dealer price subject to 9.3 below.

  

 

9

 

	
   

  	
  9.3             The
  royalty payable to Pearson pursuant to 9.2 above shall reduce pro rata if the
  Net Royalty payable to 19 Recordings Limited is reduced from that payable on
  Masters embodied on First Album Masters.

  
	
   

  	
   

  
	
   

  	
  9.4             The
  royalties to Pearson will be calculated and accounted on the same price and
  subject to the same reductions, deductions and pro-rations as the royalty
  payable to 19 Recordings Limited by any record company or other entity
  undertaking the distribution of records. 
  The royalties will be paid to Pearson at the same time as the
  royalties payable to 19 Recordings Limited and will be subject to recoupment
  of advances to Winning Artists, payments to producers, mixers or remixers,
  recording costs, video costs, tour support and TV or radio advertising costs
  to the same extent as recouped from the royalty payable to 19 Recordings.

  
	
   

  	
   

  
	
   

  	
  9.5             19
  TV agrees to procure the payment to Pearson by 19 Recordings Limited or Other
  Local Record Company of a pro rata share of any Net Advance received by 19
  Recordings Limited.  The share shall be
  pro rata according to the Net Royalty and the royalty payable to Pearson
  pursuant to 9.1 or 9.2 above (as appropriate). 

  
	
   

  	
   

  
	
   

  	
  9.6             For
  the United Kingdom and the United States of America, 19 Merchandising Limited
  and 19 Management Limited shall be entitled to retain 100% of monies arising
  from the Artist Merchandising and Sponsorship Agreements or Artist Management
  Agreements and shall be under no obligation to account to Pearson or any
  Local TV Company for any monies arising from exploitation of Artist
  Merchandise and Artist Sponsorship rights or from management of Winning
  Artists.

  
	
   

  	
   

  
	
   

  	
  9.7             For
  the Territory outside the United Kingdom and United States of America,
  Pearson shall account to 19 TV for 50% of monies received from the Local
  Merchandising and Sponsorship Company or the Local Management Company.
  Pearson shall ensure that the Local Merchandising and Sponsorship Company and
  the Local Management Company shall be obliged to remit to Pearson at least
  50% of such Company’s net profits from rights in respect of the Winning
  Artist or Finalist.

  
	
   

  	
   

  
	
   

  	
  9.8             19
  TV agrees to procure the payment to the broadcaster in the Relevant Territory
  of a royalty on First Album Masters at the same rate and calculated on the
  same basis as the royalty referred to in 9.1 above.

  
	
   

  	
   

  
	
  10.

  	
  Distribution
  of Finished Programmes

  
	
   

  	
   

  
	
   

  	
  10.1           Pearson
  or a Pearson Associate shall distribute all Programmes or Series produced.

  
	
   

  	
   

  
	
   

  	
  10.2           Pearson
  shall account (or shall procure that the Pearson Associate shall account) to
  the Format Owners for 50% of revenues received after deduction “off the top”
  of a selling commission of 27.5% of gross revenues, any share payable to a
  commissioning broadcaster and any third party costs associated with the
  license.

  

 

10

 

	
  11.

  	
  Accounting
  and Audit

  
	
   

  	
   

  
	
   

  	
  11.1           Pearson
  will account to 19 TV for all sums due to 19 TV from Pearson as at 31 March,
  30 June, 30 September and 31 December in each year. Pearson will
  prepare reasonably detailed accounting statements showing Gross Receipts and
  the calculation of Net Receipts from Pearson’s (or Pearson’s associated
  company’s) exploitation of the relevant rights.  Pearson will send such statements to 19 TV
  within 45 days after each accounting date accompanied by payment of sums
  shown to be due to 19 TV.

  
	
   

  	
   

  
	
   

  	
  11.2           19
  TV will account to Pearson for all sums due to Pearson from 19 TV as at 31
  March, 30 June, 30 September and 31 December in each year.  19 TV will prepare reasonably detailed
  accounting statements showing Gross Receipts and the calculation of Net
  Receipts from 19 TV’s exploitation of the relevant rights.  19 TV will send such statements to Pearson
  within 45 days after each accounting date accompanied by payment of sums due
  to Pearson.

  
	
   

  	
   

  
	
   

  	
  11.3           19
  TV will have the right to inspect Pearson’s (or Pearson’s associated company’s)
  books and records insofar as they relate to the exploitation of rights in or
  production of Programmes or Series. 
  Any such inspection shall take place no more than once per year on
  reasonable prior notice.

  
	
   

  	
   

  
	
   

  	
  11.4           Pearson
  will have the right to inspect 19 TV’s (or 19 TV’s associated company’s)
  books and records insofar as they relate to the exploitation of rights in
  Programmes or Series.  Any such
  inspection shall take place no more than once per year on reasonable prior
  notice.

  
	
   

  	
   

  
	
   

  	
  11.5           All
  payments from Pearson to 19 TV or from 19 TV to Pearson are exclusive of VAT
  which shall be paid in addition upon receipt of a valid VAT invoice.

  
	
   

  	
   

  
	
  12.

  	
  Consultation

  
	
   

  	
   

  
	
   

  	
  Pearson and
  19 TV shall at all times consult each other in relation to the exploitation
  of their respective rights under this agreement.

  
	
   

  	
   

  
	
  13.

  	
  Miscellaneous

  
	
   

  	
   

  
	
   

  	
  13.1           Either
  party may assign this agreement and its rights in the Format to a parent,
  subsidiary or associated company or to a person, firm or corporation
  purchasing all of that party’s stock or assets.

  
	
   

  	
   

  
	
   

  	
  13.2           The
  parties agree that the provisions of this agreement are not intended to
  confer any rights of enforcement on any third party.  The Contracts (Rights of Third Parties) Act
  1999 shall not apply to this Agreement or to any of its provisions.

  
	
   

  	
   

  
	
   

  	
  13.3           This
  agreement shall be governed by and construed in accordance with the Laws of
  England and Wales and the parties submit to the exclusive jurisdiction of the
  High Court of Justice in England.

  

 

11

 

If the above
correctly reflects your understanding of our agreement please sign where
indicated below.

 

	
  Yours
  faithfully

  	
  Accepted and
  Agreed

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Simon
  Fuller

  	
   

  	
  /s/

  	
   

  
	
  for and on
  behalf of 19 TV Limited

  	
  for and on
  behalf of Pearson Television

  Operations BV

  
	
   

  	
   

  
				

 

12

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