Document:

EX-10.10

 

EXHIBIT 10.10

AMENDED & RESTATED DIGITAL MUSIC DOWNLOAD SALES AGREEMENT

This Agreement is by and between “ITUNES” and “COMPANY”, as each is identified on the attached
Cover Sheet, and is entered into as of the Effective Date (as defined herein).

          WHEREAS, ITUNES and COMPANY are parties to one or more Current Agreement(s) (as defined
herein);

          WHEREAS, ITUNES desires and, in exchange for ITUNES’ obligations herein, COMPANY is willing to
allow ITUNES to sell COMPANY’s content in digital form on modified terms as provided herein;

          NOW, THEREFORE, in consideration of the mutual promises and agreements set forth herein, and
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, ITUNES and COMPANY (each a “Party” and collectively, “Parties”) hereby amend and
restate the Current Agreement(s), effective as of the Effective Date (as defined herein), in this
single Agreement as follows:

     1. Definitions.

The following terms shall have the following meanings for purposes of this Agreement:

	 	(a)	 	“Content File” means each digital file containing COMPANY Content,
applicable Artwork (if any), parental advisory notices (if any), copyright notices (if
any), and associated metadata (e.g., artist name, track or video title, track or video
title version (if applicable), territories cleared for sale, copyright notice, ISRC, UPC
and corresponding album title (if applicable) and editorial content data (if any)).
	 
	 	(b)	 	“Content Usage Rules” means the usage rules applicable to COMPANY Content in
the form of Regular eMasters and Plus eMasters available on the Online Store that specify
the terms under which a Regular eMaster and Plus eMaster, respectively, may be used, as
set forth in Exhibit A attached hereto, and which may be modified by ITUNES from time to
time, subject to prior written approval by COMPANY (such approval or disapproval not to be
unreasonably delayed) in the event of a material change to such usage rules.
	 
	 	(c)	 	“Security Solution” means the proprietary Apple content protection system
marketed as Fairplay, in effect as of the Effective Date used to protect Regular eMasters
(but, for avoidance of doubt, not Plus eMasters) sold on the Online Store pursuant to this
Agreement, which content protection system shall be no less protective than the protection
system used to protect similar third party content sold on the Online Store, and which may
be modified by ITUNES from time to time, subject to prior written approval by COMPANY
(such approval not to be unreasonably withheld, delayed or conditioned) in the event of a
material change to such content protection system such that Regular eMasters are being
protected less than before.

 

 

	 	(d)	 	“eMaster” or “eMasters” means copies of COMPANY Content in digital form
suitable for exploitation on the Online Store, in the Format and (i) having the Security
Solution (“Regular eMasters”) or (ii) having no Security Solution (“Plus eMasters”), which
ITUNES may sell on the Online Store pursuant to the terms and conditions of this
Agreement.
	 
	 	(e)	 	“Format” or “Formatting” means the digital format for content set forth in
Exhibit C-1 attached hereto or the process of converting content into eMasters.
	 
	 	(f)	 	“Non-Transfer Device” means a device, such as an iPod or a cell phone, having
the Security Solution, which can receive eMasters by any means for their storage and/or
playback via proprietary Apple software, but which cannot transfer eMasters with their
content rights keys to any other device.
	 
	 	(g)	 	“Transfer Device” means a device, such as a computer, having the Security
Solution, which can receive eMasters by any means for their storage and/or playback via
proprietary Apple software, transfer eMasters with their content rights keys to any
Non-Transfer Device or Transfer Device and/or burn audio-only eMasters as an audio CD.
	 
	 	(h)	 	“Fulfillment Activities” means sales activities relating to the sale and
delivery of eMasters, provided by COMPANY, pursuant to the terms and conditions of this
Agreement.
	 
	 	(i)	 	“Current Agreement” means any DIGITAL MUSIC DOWNLOAD SALES AGREEMENT or
DIGITAL VIDEO DOWNLOAD SALES AGREEMENT by and between COMPANY and ITUNES that is in effect
as of the date this Agreement is signed by both Parties and the territory of which
includes any part of the Territory (as defined herein). The Current Agreement with the
earliest effective date is referred to as the “Earliest Current Agreement.”
	 
	 	(j)	 	“Effective Date” means the Signature Date.
	 
	 	(k)	 	“Term” means the period beginning on the Effective Date, and ending on the
date the Earliest Current Agreement is set to expire (“Current Expiration Date”), except
(i) if the Current Expiration Date is less than one year from the Signature Date, then the
Term shall end two years after the Current Expiration Date, or (ii) if the Current
Expiration Date is less than two years, but not less than one year, from the Signature
Date, then the Term shall end one year after the Current Expiration Date.  The Term shall
automatically renew for additional, successive three-year periods unless either Party
provides written notice to the other Party of its intent to terminate this Agreement at
least ninety (90) days prior to the expiration of the then-effective Term.
	 
	 	(l)	 	“Territory” means the United States, its territories and possessions
(collectively, “United States”), and Canada, its territories, and provinces, including
Alberta, British Columbia, Manitoba, New

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	 	 	 	Brunswick, Newfoundland and Labrador, Northwest
Territories, Nova Scotia, Nunavut, Ontario,
Prince Edward Island, Quebec, Saskatchewan and Yukon (collectively, “Canada”).
	 
	 	(m)	 	“Online Store” means an electronic store and its storefronts branded, and
owned and/or controlled by ITUNES or an affiliate of ITUNES.
	 
	 	(n)	 	“Regular COMPANY Content” means sound recordings owned or controlled by
COMPANY and in which COMPANY has cleared (as provided in Section 4 below) the necessary
rights to authorize electronic sales and sound recording performances in Regular eMaster
format by ITUNES pursuant to the terms of this Agreement.
	 
	 	(o)	 	“Plus COMPANY Content” means sound recordings owned or controlled by COMPANY
and in which COMPANY has cleared (as provided in Section 4 below) the necessary rights to
authorize electronic sales and sound recording performances in Plus eMaster format by
ITUNES pursuant to the terms of this Agreement.
	 
	 	(p)	 	“COMPANY Content” means Regular COMPANY Content and Plus COMPANY Content.
All sound recordings that are provided by or on behalf of COMPANY to ITUNES are deemed
owned or controlled by COMPANY and cleared by COMPANY as provided in Section 4 below.
	 
	 	(q)	 	“Artwork” means album cover artwork, screen shots and/or any other artwork
relating to COMPANY Content that COMPANY has cleared for use by ITUNES in accordance with
Section 2 below. All artwork that is provided by or on behalf of COMPANY to ITUNES is
deemed cleared by COMPANY.

     2. Authorization.

	 	(a)	 	Subject to the terms of this Agreement, COMPANY hereby appoints
ITUNES as a reseller of eMasters in the Territory. Accordingly, COMPANY hereby
grants a non-exclusive right to ITUNES, during the Term, to:

	 	i.	 	reproduce and Format COMPANY Content delivered by
COMPANY or by COMPANY’S representative designated by COMPANY in writing
into eMasters;
	 
	 	ii.	 	perform, exhibit and make available by streaming
clips of the COMPANY Content (“Clips”) to promote the sale of applicable
eMasters on the Online Store in accordance with Exhibit C-1;
	 
	 	iii.	 	promote, market, sell, distribute, perform and
electronically fulfill and deliver eMasters and associated metadata to
purchasers via the Online Store;
	 
	 	iv.	 	reproduce, display, distribute and electronically
fulfill and deliver Artwork for personal use solely in conjunction with
the applicable purchased eMaster; and

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	 	v.	 	use COMPANY Content, Artwork and metadata as may
be reasonably necessary or desirable for ITUNES to exercise ITUNES’
rights under the terms of this Agreement.

	 	(b)	 	ITUNES shall not be authorized to use COMPANY Content or Artwork in
any manner or form not expressly authorized herein, provided that ITUNES may
modify metadata as reasonably necessary to correct errors or to append sub-genres
or like information for artist and content categories. Nothing in this Agreement
shall be construed to prevent COMPANY from marketing or selling COMPANY Content or
Artwork by any means.
	 
	 	(c)	 	ITUNES shall not pledge, mortgage or otherwise encumber any part of
the COMPANY Content, eMasters, or Artwork.

     3. COMPANY Obligations.

	 	(a)	 	Except for a special circumstance, such as an exclusive,
limited-time, one-off promotion for particular COMPANY Content, or for a reason
beyond COMPANY’s control (e.g., a third party contractual restriction), or as
otherwise agreed by the Parties, COMPANY (or a third party designated by COMPANY
in writing and approved by ITUNES) shall commence delivery of all existing COMPANY
Content as soon as reasonably possible following the Effective Date, and
prospectively during the Term, for just cleared COMPANY Content and new releases,
at least in time for ITUNES to begin selling eMasters the earlier of a general
release date, provided by COMPANY, or when any other distributor is permitted to
begin selling, or making commercially available, COMPANY Content in any format.
COMPANY may provide written notice to ITUNES, at the time that COMPANY delivers
particular COMPANY Content to ITUNES (and, for any already-delivered COMPANY
Content, no later than the Effective Date), that such COMPANY Content is not
authorized hereunder to be sold as Plus eMasters (“Plus Excluded Content”);
provided, however, that (i) COMPANY may not provide such notice for any COMPANY
Content that COMPANY permits any other distributor to sell, or otherwise make
commercially available, DRM-free in the Territory and (ii) if COMPANY subsequently
permits any other distributor to begin selling, or otherwise making commercially
available, any Plus Excluded Content DRM-free in the Territory, then COMPANY shall
withdraw such notice at least in time for ITUNES to begin selling the applicable
Plus Excluded Content as Plus eMasters at the same time as any such other
distributor.
	 
	 	(b)	 	Except as otherwise agreed by the Parties, COMPANY shall make all
COMPANY Content that COMPANY authorizes herein for sale on the Online Store
available in both a so-called “single” format and in a multi-track “album” format.
ITUNES may sell eMasters on the Online Store in the format that ITUNES believes
most favorably furthers the commercial purpose of this Agreement and otherwise in
accordance with ITUNES’ then-current Online Store business practices.

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	 	(c)	 	COMPANY shall deliver Content Files to ITUNES, at COMPANY’S expense,
in the Delivery Format and via the Delivery Method set forth in Exhibit C-1
attached hereto.

     4. Royalties.

	 	(a)	 	United States: For uses of COMPANY Content authorized
hereunder with respect to sales in the United States, COMPANY shall be responsible
for and timely pay: (i) all record royalties to artists, producers, performers,
musicians and other record royalty participants for the manufacture, storage,
distribution and sale of eMasters, (ii) all reproduction and distribution (i.e.,
mechanical) royalties payable to composers, lyricists, authors and publishers of
compositions embodied in eMasters for the manufacture, storage, distribution and
sale of eMasters, (iii) all payments that may be required under collective
bargaining agreements applicable to COMPANY or third parties other than ITUNES,
and (iv) any other royalties, fees and/or sums payable with respect to the sound
recordings, Artwork, metadata and other materials provided by COMPANY and/or
ITUNES’ authorized use thereof hereunder.
	 
	 	(b)	 	Canada: For uses of COMPANY Content authorized hereunder
with respect to sales in Canada:

	 	i.	 	COMPANY shall be responsible for and timely pay:
(A) all record royalties to artists, producers, performers, musicians
and other record royalty participants for the manufacture, storage,
distribution and sale of eMasters, (B) all payments that may be required
under collective bargaining agreements applicable to COMPANY or third
parties other than ITUNES, and (C) any other royalties, fees and/or sums
payable with respect to the sound recordings, Artwork, metadata and
other materials provided by COMPANY and/or ITUNES’ authorized use
thereof hereunder.
	 
	 	ii.	 	ITUNES shall be responsible for obtaining
reproduction and distribution (i.e., mechanical) rights, and song
performance (i.e., communication to the public) rights, from, and for
making and making arrangements for payments, royalties or sums payable
to, composers, lyricists, authors and music publishers as may be
reasonably necessary for the commercial exploitation hereunder of the
compositions embodied in eMasters (“Author’s Rights”); provided,
however, that (notwithstanding any other provision in this Agreement)
ITUNES’ responsibilities under this paragraph 4(b)(ii) apply only to
COMPANY Content for which reproduction rights in Canada may be cleared
and paid through CMRRA-SODRAC, Inc. (hereafter, “CSI Content”) and that
ITUNES shall make payments related to reproduction rights in any COMPANY
Content only to CMRRA-SODRAC, Inc. and to no other party. COMPANY
understands and acknowledges that ITUNES shall have no obligations
whatsoever under this paragraph 4(b)(ii) for any COMPANY Content that is
not CSI Content (“non-CSI Content”), and that all responsibility for
rights clearances and payments related to Authors’ Rights for any
non-CSI Content which COMPANY authorizes ITUNES to exploit in Canada

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	 	 	 	hereunder shall rest with COMPANY. To the extent that COMPANY owns or
controls any part of the Authors’ Rights in any COMPANY Content, COMPANY
shall not withhold such rights in any way that could frustrate the purpose
of this Agreement. The Parties acknowledge that the wholesale prices set
forth in Exhibit B-1 reflect a deduction for Author’s Rights at the
prevailing industry-wide royalty rates (currently estimated at eight
percent (8%) of retail price) and that, in the event that higher or lower
prevailing industry-wide royalty rates are established (whether by a court
or tribunal within the Territory or through negotiations), then the
wholesale prices set forth in Exhibit B-1 shall be prospectively reduced
or increased (as the case may be) using such established industry-wide
royalty rates.

     5. Wholesale Price.

ITUNES shall pay COMPANY for eMasters sold by ITUNES hereunder the applicable wholesale
prices set forth in Exhibit B-1, which wholesale prices shall remain in effect
throughout the Term (subject to Section 4(b)(ii), if applicable). ITUNES shall provide
notice (which may be by email) at least five (5) days prior to an increase in the
retail price of an eMaster in any format (e.g., single-track, multi-track), and shall
consider COMPANY’s views in relation to such increase in price. For avoidance of
doubt, ITUNES reserves the right to determine the retail price in its sole discretion.

     6. ITUNES Obligations.

	 	(a)	 	ITUNES shall condition sale and delivery of eMasters upon an end
user’s acknowledgement of terms of use for such eMasters (“Terms of Use”), which
Terms of Use shall be no less restrictive than the Content Usage Rules, and shall
state that the sale of eMasters does not transfer to purchaser any commercial or
promotional use rights in the eMasters.
	 
	 	(b)	 	Subject to Section 4, ITUNES shall be responsible for all costs
associated with ITUNES’ Fulfillment Activities.
	 
	 	(c)	 	If there is a change of circumstance during the Term as a result of
which COMPANY reasonably believes that it does not have, or no longer has, the
rights necessary to authorize ITUNES to use any COMPANY Content or Artwork as
provided for herein, or COMPANY reasonably believes that ITUNES’ continued sale of
any COMPANY Content or Artwork will substantially harm COMPANY’s relations, or
violates the terms of any of COMPANY’S agreements, with any applicable copyright
owner, artist, producer, director (in the case of audio-visual content) or
distributor (each a “Clearance Issue”), then COMPANY shall have the right to
withdraw, upon written notice to ITUNES’ designated representative, authorization
for the sale of such COMPANY Content or Artwork to the extent of such Clearance
Issue. Following ITUNES’ receipt of such written notice by COMPANY, ITUNES shall
cease to offer such COMPANY Content or Artwork for sale as specified in the notice
within three (3) business days after ITUNES’ receipt of such notice of withdrawal,
and COMPANY shall use commercially reasonable efforts to clear such withdrawn
COMPANY Content or Artwork and shall promptly notify ITUNES if and when such

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	 	 	 	COMPANY Content or Artwork has been cleared and is again authorized for sale by
ITUNES as provided herein. COMPANY shall not withdraw any authorization with
respect to COMPANY Content or Artwork if COMPANY continues to provide such
authorization to any other on-line digital distributor of COMPANY Content. ITUNES’
current designated representative for such notices is itunesproducer@apple.com.
ITUNES may, from time to time, change the designated representative and means for
giving written notice by posting a notice on its Label Connect site.
	 
	 	(d)	 	ITUNES reserves the right to pull-down, or not offer for sale, any
COMPANY Content or Artwork in the event a third party claims that ITUNES is not
authorized to sell or otherwise use such COMPANY Content or Artwork on the Online
Store, in which case COMPANY shall cooperate with ITUNES’ reasonable requests
towards handling such third party claim.

	7.	 	Parental Advisory.

If COMPANY provides an appropriate parental advisory warning about a particular eMaster
in the Content File, ITUNES shall conspicuously display such parental advisory when
other information about such eMaster is displayed. COMPANY shall be responsible for
determining parental advisory warning status.

	8.	 	Payment and Reports.

	 	(a)	 	ITUNES shall remit payment to COMPANY for the sale of eMasters in
accordance with the following: (i) the “sale” of each eMaster shall occur when
such eMaster is successfully delivered by ITUNES to an end user; (ii) payments
shall accrue at the time that such eMaster is sold; and (iii) for each eMaster
sold, ITUNES shall pay to COMPANY an amount equal to the wholesale price for the
applicable eMaster (collectively “eMaster Proceeds”).
	 
	 	(b)	 	ITUNES shall pay eMaster Proceeds to COMPANY in the amount set forth
in a xxxxxx sales report reflecting all sales of eMasters and corresponding
eMaster Proceeds for the particular xxxxxx period (“Sales Report”) and in
accordance with ITUNES standard business practices after the end of each xxxxxx
period during the Term. ITUNES will make each Sales Report available to COMPANY
via the proprietary LabelConnect site (free access to which is provided by ITUNES
to COMPANY during the Term pursuant to applicable terms and conditions) and will
notify COMPANY via email when each Sales Report is available. ITUNES may modify
the foregoing process in its reasonable discretion upon xxxxxx written notice.
For avoidance of doubt, eMaster Proceeds shall constitute COMPANY’s full
consideration hereunder.

 

			
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	 	(c)	 	ITUNES may withhold any taxes, duties, charges or levies on payments
by ITUNES to COMPANY pursuant to this Agreement as may be required by applicable
law, rule or regulation. ITUNES shall remit any such withheld taxes, duties,
charges or levies to the appropriate tax authority. Despite the foregoing,
provided COMPANY has fully satisfied all requirements to document its eligibility
for a lower or zero rate of withholding tax, including, without limitation,
providing ITUNES with a valid Certificate of Residency, ITUNES shall withhold
based on the lower withholding tax rate, or, if applicable, shall not withhold.
	 
	 	(d)	 	Payments made by ITUNES to COMPANY hereunder shall be by electronic
funds transfer (“EFT”), and COMPANY shall be responsible for any of COMPANY’S bank
transaction costs or fees arising from such payment. COMPANY shall provide ITUNES
with COMPANY’S banking information reasonably necessary to effect payment (on a
form to be provided to COMPANY by ITUNES), including but not limited to:

i. Bank Name

ii. Account Name

iii. Account Number

iv. Routing Number

v. Royalty Accounting Contact: (Name, Address, Email, Fax, Tel.)

     9. Names and Likenesses; Promotional Use and Opportunities.

	 	(a)	 	ITUNES may use the names and authorized likenesses of, and
biographical material concerning, any eMaster artists, bands, producers, directors
(in the case of audio-visual content) and/or songwriters (each, a “Talent”), as
well as track title and/or album name, and Artwork, in any ITUNES marketing
materials for the sale, promotion and advertising of the applicable eMaster which
is offered for sale on the Online Store under the terms of this Agreement (e.g.,
an artist or band name and likeness may be used in an informational fashion, such
as textual displays or other informational passages, to identify and represent
authorship, production credits, and performances of the applicable artist or band
in connection with the authorized exploitation of applicable eMasters). Further
written approval of COMPANY shall be required if any Talent’s name or likeness is
otherwise used as an endorsement of ITUNES, the Online Store, or other products.
	 
	 	(b)	 	ITUNES shall have the unrestricted right to market, promote and
advertise the Online Store and content available for purchase on the Online Store
as it determines in its discretion. Without limiting the foregoing, ITUNES shall
have the right to determine which content, irrespective of any particular record
company, label or other content provider affiliation, would best further the
commercial purpose of the Online Store, and to promote such content more than
others.

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     10. Copyright Notices; Ownership.

	 	(a)	 	COMPANY may provide a copyright notice (which shall be not more than
21 characters in length) for applicable COMPANY Content and associated Artwork in
the Content File, in which case ITUNES shall include such copyright notice in a
manner that can be viewed prior to purchase of such eMaster. ITUNES shall not
knowingly defeat, impair or alter any watermark in COMPANY Content, including any
related Artwork or materials delivered by COMPANY hereunder.
	 
	 	(b)	 	As between the Parties, all right, title and interest in and to (i)
the COMPANY Content, (ii) the eMasters, excluding the Security Solution, (iii) the
Clips, (iv) all copyrights and equivalent rights embodied therein, and (v) all
materials furnished by COMPANY, except as to any rights of ITUNES (whether
pre-existing or under this Agreement), shall remain the property of COMPANY, it
being understood that under no circumstances shall ITUNES have any lesser rights
than it would have as a member of the public.

     11. Press Release.

Without limiting the provisions of Section 16, COMPANY shall not make or issue any
public statement or press release regarding this Agreement or its subject matter
without prior written approval from ITUNES.

     12. Data Protection.

	 	(a)	 	ITUNES shall use the Security Solution for Regular eMasters, which
shall be no less protective of COMPANY Content than any other security solution
provided by ITUNES for any other sound recordings on the Online Store. If the
Security Solution is compromised such that Regular eMasters have been unencrypted
and are being widely used without restriction, having an adverse material effect
on the commercial intent of this Agreement xxxxxx. The foregoing shall constitute
ITUNES’ sole obligation and COMPANY’s sole remedy from ITUNES in the event of such
a security breach. For avoidance of doubt, this Section 12(a) shall not apply to
Plus eMasters.
	 
	 	(b)	 	Despite anything to the contrary, in the event that ITUNES receives
notice of a security breach of the servers or network components that store
COMPANY Content or Artwork on the Online Store such that unauthorized access to
COMPANY Content or Artwork becomes available via the Online Store xxxxxx which
shall be ITUNES’ sole obligation and COMPANY’s sole remedy from ITUNES in the
event of such a security breach.
	 
	 	(c)	 	COMPANY Content in ITUNES’ control or possession shall reside on one
or more network servers, workstations or equivalent devices owned or controlled by
ITUNES or its contractors, each of which shall be secured with restricted access.

 

			
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     13. Record-Keeping and Audit

	 	(a)	 	ITUNES shall maintain and keep complete and accurate books and
records concerning the amounts payable to COMPANY arising from transactions
relating to ITUNES’ sale of xxxxxx.
	 
	 	(b)	 	Upon reasonable advance written notice xxxxxx during the Term and for
xxxxxx thereafter (the “Audit Period”), COMPANY, at COMPANY’s sole expense, may
appoint an independent certified public accountant not then engaged in any audit
of ITUNES or COMPANY to audit applicable books and records of ITUNES at ITUNES’
principal place of business in the Territory for the sole purpose of verifying the
amounts due from ITUNES to COMPANY hereunder. Such audit shall take place during
regular
business hours, and shall not occur more than once during any twelve (12) month
period. The certified public accountant shall not be engaged on a contingency-fee
basis and must sign and deliver to ITUNES a confidentiality agreement in a form
acceptable to ITUNES that protects ITUNES’ confidential information no less than
the terms of this Agreement and no less than COMPANY protects its own similar
information. COMPANY may audit information contained in a particular statement only
once, and no audit shall be allowed or conducted for a period spanning less than
six (6) months.
	 
	 	(c)	 	COMPANY shall be deemed to have consented to all accountings rendered
by ITUNES hereunder, and said accountings shall be binding upon COMPANY and shall
not be subject to any objection by COMPANY for any reason unless specific
objections are provided to ITUNES in writing during the Audit Period. COMPANY
agrees that ITUNES’ books and records contain “Confidential Information” (as
defined below).

     14. Termination and Effect of Termination.

	 	(a)	 	Either Party shall have the right to terminate this Agreement prior
to the expiration of the Term in the event that the other Party (i) becomes
insolvent, (ii) files a petition in bankruptcy, (iii) makes an assignment for the
benefit of creditors, or (iv) breaches any material representation, obligation or
covenant contained herein, unless such breach is cured prospectively, no later
than thirty (30) days from the date of receipt of notice of such breach, or if not
able to be so cured, then resolved to the other Party’s satisfaction, not to be
unreasonably withheld.
	 
	 	(b)	 	Sections 1, 4, 6b, 8, 10b, 11, 13, 14, 15, 16, 17, and 18 shall
remain in full force and effect following the expiration or earlier termination of
this Agreement. The expiration or earlier termination of this Agreement shall not
relieve COMPANY or ITUNES of its respective obligations to make any payments with
respect to the sale of eMasters in the periods prior to such expiration or
termination (and the associated accounting) in accordance with this Agreement.

 

			
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	 	(c)	 	Upon the expiration or earlier termination of this Agreement, all
COMPANY Content, eMasters, Clips, and Artwork in ITUNES’ possession or control
shall be promptly deleted or destroyed, excluding any archival copies maintained
in accordance with ITUNES’ standard business practices or required to be
maintained by applicable law, rule or regulation.

     15. Indemnification and Limitation of Liability.

	 	(a)	 	ITUNES will indemnify and hold harmless, and upon COMPANY’S request,
defend, COMPANY and its affiliates (and their respective directors, officers and
employees) from and against any and all losses, liabilities, damages, costs and
expenses (including reasonable attorneys’ fees and costs) arising out of a claim
by a third party by reason of: (i) any use by ITUNES of the COMPANY Content or
Artwork in breach of this Agreement; (ii) a breach of any warranty,
representation, covenant or obligation of ITUNES under this Agreement; or (iii)
any claim that the technology used by ITUNES in the Fulfillment Activities
infringes the intellectual property rights of another party. ITUNES will
reimburse COMPANY and its affiliates on demand for any payments actually made in
resolution of any liability or claim that is subject to indemnification under this
Section 15, provided that COMPANY obtains ITUNES’ written consent prior to making
such payments. COMPANY shall promptly notify ITUNES of any such claim, and ITUNES
may assume control of the defense or settlement of such claim. COMPANY shall have
the right, at its expense, to participate in the defense thereof under ITUNES’
direction.
	 
	 	(b)	 	COMPANY will indemnify and hold harmless, and upon ITUNES’ request,
defend, ITUNES and its affiliates and contractors (and their respective directors,
officers and employees) from and against any and all losses, liabilities, damages,
costs or expenses (including reasonable attorneys’ fees and costs) arising out of
a claim by a third party by reason of: (i) a breach of any warranty,
representation, covenant or obligation of COMPANY under this Agreement; or (ii)
excluding the rights that ITUNES is responsible for under Section 4(b)(ii) (if
applicable), any claim that any COMPANY Content, Artwork, metadata or any other
materials provided or authorized by or on behalf of COMPANY hereunder or ITUNES’
use thereof violates or infringes the rights of another party. COMPANY will
reimburse ITUNES and its affiliates on demand for any payments actually made in
resolution of any liability or claim that is subject to indemnification under this
Section 15, provided that ITUNES obtains COMPANY’s written consent prior to making
such payments. ITUNES shall promptly notify COMPANY of any such claim, and
COMPANY may assume control of the defense or settlement of such claim. ITUNES
shall have the right, at its expense, to participate in the defense thereof under
COMPANY’s direction.
	 
	 	(c)	 	EXCEPT PURSUANT TO AN EXPRESS INDEMNITY OBLIGATION, IN NO EVENT SHALL
EITHER PARTY BE LIABLE TO THE OTHER PARTY FOR INDIRECT, INCIDENTAL, CONSEQUENTIAL
OR SPECIAL DAMAGES, INCLUDING LOSS OF PROFITS OR PUNITIVE DAMAGES, EVEN IF ADVISED
OF THEIR POSSIBILITY.

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	 	(d)	 	NO WARRANTY OR TERM, EXPRESS OR IMPLIED, STATUTORY OR OTHERWISE, AS
TO THE CONDITION, QUALITY, DURABILITY, PERFORMANCE, MERCHANTABILITY OR FITNESS FOR
A PARTICULAR PURPOSE OF THE ONLINE STORE, THE SECURITY SOLUTION, OR ANY ELEMENTS
OF THE FOREGOING IS GIVEN TO, OR SHOULD BE ASSUMED BY, COMPANY, AND ANY SUCH
WARRANTIES AND TERMS ARE HEREBY EXCLUDED.

     16. Confidentiality.

Each Party acknowledges that by reason of this Agreement it may have access to certain
information and materials concerning the other Party’s business plans, customers,
technology and products that are confidential and of substantial value to such Party,
which value would be impaired if such information were disclosed to third parties or
used for purposes other than as expressly permitted by this Agreement (referred to in
this Agreement as “Confidential Information”). Each Party agrees to maintain any and
all Confidential Information received from the other, in confidence, and agrees not to
disclose or otherwise make available such Confidential Information to any third party
without the prior written consent of the disclosing Party. Each Party agrees that
Confidential Information shall be disclosed to its employees and other personnel under
its control and supervision for purposes of performing under this Agreement solely on a
need-to-know basis in furtherance of this Agreement, and solely to those individuals
who are bound by a written non-disclosure agreement having terms no less restrictive
than the non-disclosure terms of this Section 16, unless required by law, or court or
governmental order. Confidential Information shall be deemed to include (i) information
marked confidential, if conveyed in writing, and (ii) information identified orally as
confidential, if conveyed orally. Confidential Information shall not be deemed to
include any information which (a) is publicly known at the time of the disclosure, (b)
becomes publicly known other than by breach of the terms of this Section 16, (c)
becomes known to the receiving Party, without restriction, from a source free of any
obligation of confidentiality and without breach of this Section 16, or (d) is
independently developed by the receiving Party.

     17. Additional Representations and Warranties of the Parties.

	 	(a)	 	Each Party represents and warrants that it has full authority to
enter into this Agreement, and to fully perform its obligations hereunder.
	 
	 	(b)	 	Each Party represents and warrants that it owns or controls the
necessary rights in order to make the grant of rights, licenses and permissions
herein, and that the exercise of such rights, licenses and permissions by the
other Party hereto shall not violate or infringe the rights of any third party.
	 
	 	(c)	 	Each Party represents and warrants that it shall not act in any
manner which conflicts or interferes with any existing commitment or obligation of
such Party, and that no agreement previously entered into by such Party will
interfere with such Party’s performance of its obligations under this Agreement.

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	 	(d)	 	Each Party represents and warrants that it shall perform in
compliance with any applicable laws, rules and regulations of any governmental
authority.

     18. General Provisions.

	 	(a)	 	No Agency or Joint Venture. The Parties agree and acknowledge that
the relationship between the Parties is that of independent contractors acting as
seller and purchaser. This Agreement shall not be deemed to create a partnership
or joint venture, and neither Party is the other’s agent, partner, employee, or
representative.
	 
	 	(b)	 	Contractors. ITUNES may contract with third parties to provide
Fulfillment Activities on behalf of ITUNES, provided such third parties are
subject to terms no less restrictive than the terms ITUNES is subject to under
this Agreement. ITUNES shall be responsible for the performance of such third
parties while under ITUNES’ control and supervision.
	 
	 	(c)	 	Entire Agreement, Modification, Waiver. This Agreement, including
any annexes, schedules and exhibits hereto, contains the entire understanding of
the Parties relating to the subject matter hereof, and supersedes all previous
agreements or arrangements between the Parties relating to the subject matter
hereof. This Agreement cannot be changed or modified except by a writing signed
by the Parties. A waiver by either Party of any term or condition of this
Agreement in any instance shall not be deemed or construed as a waiver of such
term or condition for the future, or of any subsequent breach thereof. If any
provision of this Agreement is determined by a court of competent jurisdiction to
be unenforceable, such determination shall not affect any other provision hereof,
and the unenforceable provision shall be replaced by an enforceable provision that
most closely meets the commercial intent of the Parties.
	 
	 	(d)	 	Binding on Successors. This Agreement shall be binding on the
assigns, heirs, executors, personal representatives, administrators, and
successors (whether through merger, operation of law, or otherwise) of the
Parties. ITUNES may assign or transfer any part of this Agreement to an affiliate
of ITUNES without COMPANY’s consent.
	 
	 	(e)	 	Notices. Any notice, approval, request, authorization, direction or
other communication under this Agreement shall be given in writing and shall be
deemed to have been delivered and given for all purposes: (i) on the delivery date
if delivered personally to the Party to whom the same is directed or delivered;
(ii) upon delivery by confirmed-receipt facsimile to the appropriate number set
forth below (and, further, confirmation of receipt is made by telephone); (iii)
one (1) business day after deposit with a commercial overnight carrier, with
written verification of receipt; or (iv) five (5) business days after the mailing
date, whether or not actually received, if sent by certified mail, return receipt
requested, postage and charges prepaid, to the address of the Party to whom the
same is directed as set forth below (or such other address as such other Party may
supply by written notice duly given).

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	 	 	 	If to COMPANY, to the Senior Management contact specified by COMPANY on the
attached Cover Sheet, with a courtesy copy by email or facsimile, which copy shall
not constitute notice, to the Legal/Business Affairs contact specified by COMPANY
on the attached Cover Sheet.
	 
	 	 	 	If to ITUNES, to the Senior Management contact specified on the attached Cover
Sheet, with courtesy copies by email or facsimile, which copies shall not
constitute notice, to the Legal/Business Affairs contacts specified on the attached
Cover Sheet.
	 
	 	(f)	 	Governing Law. This Agreement shall be governed and interpreted in
accordance with the laws of the State of California, without regard to principles
of conflict of laws. The Parties agree that any proceeding relating to this
Agreement will take place in the No. District of California; and both Parties
hereby waive the right to object to that choice of law, personal jurisdiction or
venue.
	 
	 	(g)	 	Counterparts. This Agreement may be executed in counterparts, each of
which shall be deemed an original and all of which together shall constitute one
and the same document.
	 
	 	(h)	 	Remedies. To the extent permitted by applicable law, the rights and
remedies of the Parties provided under this Agreement are cumulative and in
addition to any other rights and remedies of the Parties at law or equity.
	 
	 	(i)	 	Headings. The titles used in this Agreement are for convenience only
and are not to be considered in construing or interpreting the Agreement.
	 
	 	(j)	 	No Third-Party Beneficiaries. This Agreement is for the sole benefit
of the Parties hereto and their authorized successors and permitted assigns.
Nothing herein, express or implied, is intended to or shall confer upon any person
or entity, other than the Parties hereto and their authorized successors and
permitted assigns, any legal or equitable right, benefit or remedy of any nature
whatsoever under or by reason of this Agreement.

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	 	(k)	 	Force Majeure. For the purposes of this Agreement, “Force Majeure” shall mean any
event which a Party hereto could not foresee, such as fire, flood, acts of God or
public enemy, Internet failures, earthquakes, governmental or court order, national
emergency, strikes or labor disputes, the effect of which it could not reasonably
prevent or predict and which renders impossible or impractical the performance of
contractual obligations either totally or in part. The Party invoking a Force
Majeure shall notify the other Party within three (3) business days of its
occurrence by accurately describing all the circumstances of the situation involved
and its effect upon the performance of its contractual obligations. The taking
place of a Force Majeure shall have the effect of suspending the obligations of the
Party which has invoked the provisions of this Section to the extent such
obligations are affected by the Force Majeure. Contractual dates shall be extended
for a period equal to the duration of a Force Majeure. The cessation of a Force
Majeure shall be communicated by notice within three (3) business days of its
occurrence by the Party that invoked it.

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be duly executed by their
respective officers thereunto duly authorized.

	 	 	 	 	 	 	 	 	 	 
	APPLE INC.	 	 	 	COMPANY
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Eddy Cue
	 	 	 	By:
	 	/s/ Barth Ballard
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Signature
	 
	 	 	 	 	 	 	 	 
	Name: Eddy Cue	 	 	 	Name: Barth Ballard
	Title: VP, iTunes	 	 	 	Title: Interim CEO, VP Marketing
	Date: October 13, 2007	 	 	 	Date: October 3, 2007

The later of the two dates above (if different) shall constitute the “Signature Date.”

Please send TWO original signed copies to:

Apple Inc.

iTunes Store

1 Infinite Loop, MS 3-ITMS

Cupertino, CA 95014

United States

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EXHIBIT A

Content Usage Rules

Regular eMasters

End users obtaining Regular eMasters from ITUNES pursuant to the terms of this Agreement may:

	 	1.	 	Burn audio-only single-track Regular eMasters xxxxxx to an audio CD as part of a
playlist.
	 
	 	2.	 	Use Regular eMasters in applications using QuickTime.
	 
	 	3.	 	Store Regular eMasters on up to five (5) Transfer Devices at the same time.
	 
	 	4.	 	Subject to Paragraph 3. above, transfer Regular eMasters to, and/or render from, a
Transfer Device or Non-Transfer Device.
	 
	 	5.	 	Use Regular eMasters solely for end user’s personal and non-commercial use.

Plus eMasters

End users obtaining Plus eMasters from ITUNES pursuant to the terms of this Agreement may use Plus
eMasters solely for end user’s personal and non-commercial use.

 

			
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EXHIBIT B-1

Schedule of Wholesale Prices — Audio

Sales in the United States shall be in United States dollars (US$). Sales in Canada shall be in
Canadian dollars (CDN$).

Single-Track Wholesale Prices (excluding taxes)

	 	 	 	 	 
	Regular eMaster	 	Plus eMaster	 	Upgrade†
	xxxxxx

	 	xxxxxx
	 	xxxxxx
	 
	 	 	 	 
	xxxxxx

	 	xxxxxx
	 	xxxxxx

 

			
	†	 	xxxxxx

Multi-Track Album Wholesale Prices (excluding taxes)

	 	 	 	 	 
	Album Tiers	 	Regular/Plus Album	 	Album Upgrade††
	Mini-EP**
	 	xxxxxx *	 	xxxxxx
	 
	 	xxxxxx *	 	xxxxxx
	 
	 	 	 	 
	EP**
	 	xxxxxx *	 	xxxxxx
	 
	 	xxxxxx *	 	 
	 
	 	 	 	 
	Budget**
	 	xxxxxx *	 	xxxxxx
	 
	 	xxxxxx *	 	 
	 
	 	 	 	 
	Back**
	 	xxxxxx *	 	xxxxxx
	 
	 	xxxxxx *	 	 
	 
	 	 	 	 
	Mid/Front**
	 	xxxxxx *	 	xxxxxx
	 
	 	xxxxxx *	 	 
	 
	 	 	 	 
	Front Plus**
	 	xxxxxx *	 	xxxxxx
	 
	 	xxxxxx *	 	 
	 
	 	 	 	 
	Multi-CD Sets**
	 	xxxxxx *	 	xxxxxx

 

			
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	*	 	Notwithstanding anything to the contrary herein (including any album tier designation pursuant
hereto), xxxxxx.
	 
	**	 	COMPANY may select the xxxxxx tier only for xxxxxx may be used solely for xxxxxx. In addition,
the xxxxxx tier may be used solely where the xxxxxx. ITUNES may in its discretion waive, on a
case-by-case basis, any of the restrictions set forth in this paragraph.
	 
	††	 	xxxxxx.

For avoidance of doubt, COMPANY shall have the right to designate the album tier (subject to any
limitations regarding the use of such tier) for each multi-track album of COMPANY Content delivered
by COMPANY to ITUNES. In the event COMPANY does not designate an album tier for a particular
multi-track album, such multi-track album shall be deemed designated xxxxxx until such time as
COMPANY designates a different album tier. COMPANY may change the designated album tier for a
particular multi-track album xxxxxx during the Term. ITUNES may in its discretion make available
additional multi-track album tiers during the Term.

xxxxxx

 

			
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EXHIBIT B-2

Schedule of Wholesale Prices — Videos

Sales in the United States shall be in United States dollars (US$). Sales in Canada shall be in
Canadian dollars (CDN$).

Single Video Wholesale Prices (excluding taxes)

	 	 	 
	Regular/Plus eMaster	 	Video Upgrade†
	xxxxxx

	 	xxxxxx
	 
	xxxxxx

	 	xxxxxx

 

			
	†	 	xxxxxx.

Other Products

If ITUNES at any time during the Term exercises its discretion under Section 3(b) to accept
additional product configurations, then ITUNES will make available one or more wholesale price
tiers for such additional products. If multiple tiers are made available, COMPANY shall have the
right to designate any applicable tier for each product of COMPANY Content delivered by COMPANY to
ITUNES; provided that COMPANY may change the designated tier for a particular product xxxxxx during
the Term. Notwithstanding anything to the contrary herein (including any wholesale price tier made
available by ITUNES or tier designation by COMPANY), the wholesale price for any product xxxxxx.

 

			
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EXHIBIT C-1: Audio

Clips

Clips may be xxxxxx. If Clips are not provided by COMPANY, they may be created by ITUNES from the
xxxxxx of the applicable eMaster.

Format / Formatting

ITUNES may convert COMPANY Content into xxxxxx for sale on the Online Store under the terms of this
Agreement xxxxxx the sound quality and integrity, attributable to such format or encoder, of
COMPANY’S eMasters having the Security Solution and COMPANY’s eMasters having no Security Solution,
respectively, is commensurate with the sound quality and integrity of third party eMasters that are
similarly (i.e., either with or without the Security Solution, as the case may be) made available
for sale on and delivered from the Online Store.

Delivery Format

COMPANY shall deliver COMPANY Content to ITUNES in xxxxxx.

Delivery Method

COMPANY Content shall be delivered to ITUNES using either the proprietary iTunes Producer software
(access to which is provided by ITUNES to COMPANY during the Term pursuant to applicable terms and
conditions), a secure FTP site address provided by ITUNES to COMPANY, rsync over SSH, or such other
delivery means as may be reasonably requested by ITUNES or mutually agreed between the Parties from
time to time. COMPANY acknowledges and agrees that use of iTunes Producer requires certain Mac
hardware and software (current required specifications, which are subject to change as iTunes
Producer is upgraded or otherwise, are available on the LabelConnect site). All COMPANY Content
will be delivered to a server in California by means of telecommunications or via “load & leave”
per California regulation 1502. No tangible personal property will transfer to ITUNES.

 

			
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EXHIBIT C-2: Videos

Clips

Clips may be xxxxxx or xxxxxx. Clips may be created by ITUNES from the applicable COMPANY Content.

Format / Formatting

ITUNES may convert COMPANY Content into eMasters and Format them for sale and delivery from the
Online Store as follows: xxxxxx.

Delivery Format

COMPANY shall deliver each Content File of COMPANY Content to ITUNES (or a third party vendor
designated in writing by ITUNES), using the highest source quality available, as follows: xxxxxx.

Delivery Method

COMPANY Content shall be delivered to ITUNES (or a third party vendor designated in writing by
ITUNES) as follows: xxxxxx.

 

			
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EXHIBIT D: Music Videos

The following additional or modified terms and conditions shall apply to the sale of permanent
downloads of music videos under the Agreement. In all other respects the terms and conditions of
the Agreement shall apply equally to music videos. Solely for purposes of this Exhibit D:

	1.	 	Sections 1(n), 1(o) and 1(p) shall state, respectively:

(n) Regular COMPANY Content” means music videos, including, without limitation, audio
and video files, owned or controlled by COMPANY and in which COMPANY has cleared (as provided
in Section 4 below) the necessary rights to authorize electronic sales and audio-visual
performances in Regular eMaster format by ITUNES pursuant to the terms of this Agreement.

(o) “Plus COMPANY Content” means music videos, including, without limitation, audio and
video files, owned or controlled by COMPANY and in which COMPANY has cleared (as provided in
Section 4 below) the necessary rights to authorize electronic sales and audio-visual
performances in Plus eMaster format by ITUNES pursuant to the terms of this Agreement.

(p) “COMPANY Content” means Regular COMPANY Content and Plus COMPANY Content. All
music videos that are provided by or on behalf of COMPANY to ITUNES are deemed owned or
controlled by COMPANY and cleared by COMPANY as provided in Section 4 below.

	2.	 	Section 3(b) shall state: COMPANY shall make all COMPANY Content that COMPANY authorizes
herein for sale on the Online Store available as single videos. From time to time during the
Term, ITUNES may in its discretion decide to accept additional product configurations (e.g.,
multi-video albums) from COMPANY, in which case COMPANY may, in its discretion, offer to make
particular COMPANY Content available for sale on the Online Store in such product
configurations.

	3.	 	Section 4 shall state: COMPANY shall be responsible for: (i) obtaining all rights of, and
all waivers of any applicable moral or similar rights by, artists, performers, writers,
producers, directors, the composers, lyricists, authors and/or publishers of any musical
compositions embodied in COMPANY Content (including their mechanical, i.e., reproduction and
distribution, rights), and any other third party rights holders necessary for ITUNES’
unencumbered sale, promotion, storage, distribution and other use as authorized hereunder of
COMPANY Content, Artwork, metadata and/or any other materials provided to ITUNES by COMPANY;
and (ii) making corresponding full and timely payments of all royalties, residuals,
participation payments, repeat fees and/or other sums payable for such rights and/or waivers,
and all payments that may be required under any collective bargaining, union or guild
agreements related to the COMPANY Content or its exploitation or other use hereunder,
including any similar payments which are not now but hereafter become payable; provided,
however, that COMPANY shall not be responsible for obtaining or making payments in relation to
any public performance or communication to the public rights in any musical compositions
embodied in COMPANY Content (to the extent such rights may be implicated, if at all, by
ITUNES’ exploitation or other use of COMPANY Content hereunder).

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	4.	 	The following shall be added to Section 10(b): Upon written request, ITUNES shall provide a
copy of each eMaster to COMPANY; provided, however, that COMPANY may not use any such eMaster
in any manner except for purposes of securing ownership in copyright.
	 
	5.	 	The words “sound recordings” in Section 12(a) shall be replaced by “music videos.”

	6.	 	All references to Exhibits B-1 and C-1 shall instead be to Exhibits B-2 and C-2,
respectively.

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EXHIBIT E

Complete My Album

Notwithstanding any other provisions of this Agreement, the following terms shall apply to any CMA
Offers and CMA Transactions (as defined below):

	1.	 	Definitions:

(a) “Purchased Track” means a track or video previously acquired by a customer from
the Online Store by (i) purchase by any payment means or (ii) through a promotional
download, so long as ITUNES paid to COMPANY the appropriate wholesale price under this
Agreement for such download.

(b) “CMA Album” means an album with which one or more Purchased Tracks are
“associated” (as provided in paragraph 3 below).

(c) “Remaining Tracks” means all tracks or videos contained on a CMA Album, other
than any Purchased Tracks.

(d) “CMA Offer” means the option by a particular customer to purchase the Remaining
Tracks of a CMA Album as a bundle – i.e., to “complete” that album – at a specified bundle
price.

(e) “CMA Transaction” means the purchase by a customer of the Remaining Tracks of a
particular CMA Album as a bundle at a specified bundle price.

(f) “Advance Single” means a single track released on the Online Store in advance
of the release of the corresponding album (e.g., a radio edit or pre-release single).

(g) “Subsequent Album” means the album, released subsequent to an Advance Single’s
release, on which the Advance Single was included upon the album’s release.

	2.	 	Authorization of CMA Offers and Transactions. ITUNES is hereby authorized to make
CMA Offers and conclude CMA Transactions as provided in this Exhibit.

	3.	 	 “Associated” Purchased Tracks and CMA Albums.

(a) Except as provided in paragraphs 3(b)-(e) below, a Purchased Track is only deemed
“associated” with the album on the Online Store off of which it was acquired by the
customer.

(b) For Advance Singles, the Subsequent Album shall be deemed to be the “associated” CMA
Album. If only one (unmarked) version of the Advance Single was offered, and both clean
and explicit versions of the Subsequent Album are offered on the Online Store, then each
such version of the Subsequent Album shall be deemed to be a CMA Album “associated” with
the Advance Single.

(c) If standard and deluxe versions of an album are offered on the Online Store, then each
such version of the album shall be deemed to be a CMA Album

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“associated” with any Purchased Track acquired off of either version of the album.

(d) A redelivered album shall be deemed to be a CMA Album “associated” with any Purchased
Track that was acquired off of any version of that same album that was previously available
(but is no longer available) on the Online Store under the authority of COMPANY. ITUNES
will use commercially reasonable efforts to create automated “matching” such that CMA
Offers involving redelivered albums are made available to customers consistent with this
subparagraph.

(e) A Purchased Track originally purchased in Regular eMaster format off of the Regular
eMaster version of a particular album, and then subsequently upgraded to Plus eMaster
format, shall thereafter also be deemed “associated” with the Plus eMaster version of that
album.

(f) To the extent a customer is presented with more than one CMA Offer with respect to the
same Purchased Track (because more than one album is deemed a CMA Album “associated” with
such Purchased Track hereunder), the customer may only select one such option. In no event
may one Purchased Track be applied to more than one CMA Transaction.

	4.	 	Partial Albums. Only full albums (including video albums) available for sale on the
Online Store are eligible to be CMA Albums. Partial albums are not eligible.

	5.	 	Time Limits.

(a) A CMA Offer for a particular CMA Album may be made available to a customer only for a
period of xxxxxx from the date that customer acquired his or her first Purchased Track
associated with that CMA Album (except as provided in subparagraph (b) below); provided
that, for a period of xxxxxx from the date CMA Offers are first made available on the
Online Store, CMA Offers may be made available to each customer for CMA Albums associated
with any of that customer’s Purchased Tracks, regardless of when the Purchased Tracks were
acquired.

(b) In the case of a customer who acquired an Advance Single before the corresponding
Subsequent Album became available on the Online Store, a CMA Offer for that Subsequent
Album may be made available to that customer only for a period of xxxxxx from the date the
Subsequent Album became available on the Online Store.

	6.	 	Wholesale Price. ITUNES will pay COMPANY the CMA Wholesale Price (as defined in this
paragraph) for each CMA Transaction. The CMA Wholesale Price will equal the wholesale price
under this Agreement for the CMA Album in effect at the time of the CMA Transaction (“Regular
Wholesale Price”) less the sum of the wholesale prices ITUNES previously paid for the
Purchased Tracks to COMPANY; provided, however, that the CMA Wholesale Price in no event shall

 

			
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	 	 	be less than the wholesale price under this Agreement for a single track (a single music
video in the event the CMA Album is a video-only album) in effect at the time of the CMA
Transaction. For avoidance of doubt, ITUNES may determine retail prices on the Online
Store, including retail prices for CMA Transactions, entirely at its sole discretion.

	7.	 	Reporting. Each CMA Transaction will be reflected on sales and royalty reports as
follows: (i) a new sale of the full CMA Album at the Regular Wholesale Price, identified as a
CMA sale; and (ii) a return (i.e., negative royalty) for each Purchased Track
contained on the CMA Album in the amount ITUNES previously paid for the Purchased Track to
COMPANY, each identified as a CMA return.

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EXHIBIT F

iPhone Ring Tone Service

Notwithstanding any other provisions of this Agreement, the following terms shall apply to Ring
Tones (as defined below):

	1.	 	Definitions:

	 	(a)	 	“Service” means a paid-for service provided by ITUNES that enables Online Store
users to select up to a 30-second segment of certain content stored in their iTunes Library
for use as a ring tone only on an iPhone.
	 
	 	(b)	 	“Ring Tone” means the up to 30-second content file created using the Service
for use as a ring tone only on an iPhone.
	 
	 	(c)	 	“COMPANY Ring Tone” means a Ring Tone created from an Eligible Track.
	 
	 	(d)	 	“COMPANY Track” means an audio track xxxxxx.
	 
	 	(e)	 	“Eligible Track” means any COMPANY Track that COMPANY has not notified ITUNES
is ineligible for inclusion in the Service pursuant to Paragraph 2(b) below.
	 
	 	(f)	 	“Territory” means the United States and its territories and possessions.
	 
	 	(g)	 	“Sale” of a COMPANY Ring Tone means the act of using the Service with respect
to that COMPANY Ring Tone and the corresponding Eligible Track. “Sold” or to “Sell” shall
be construed accordingly.

	2.	 	Authorization for the Service.

	 	(a)	 	ITUNES is hereby authorized to sell COMPANY Ring Tones by making the Service available
in the Territory.
	 
	 	(b)	 	COMPANY may notify ITUNES’ designated representative in writing from time to time that
one or more COMPANY Tracks are not eligible for inclusion in the Service because of a
Clearance Matter, in which case such COMPANY Track will cease to be an Eligible Track and
ITUNES will cease to include it in the Service within xxxxxx days of receiving the notice.
ITUNES’ current designated representative for such notices is itunesproducer@apple.com.
ITUNES may, from time to time, change the designated representative and means for giving
written notice by posting a notice on its Label Connect site.

 

			
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	 	(c)	 	If a COMPANY Track xxxxxx or if the same exact version of the COMPANY Track is no
longer available on the Online Store (e.g., due to redelivery), then ITUNES shall use the track metadata on the Online Store user’s hard drive
to determine whether the track is an Eligible Track for purposes of determining whether the
track is eligible for inclusion in the Service and, if so, for purposes of reporting and
payment.
	 
	 	(d)	 	COMPANY Ring Tones (i) may be transferred to and used on xxxxxx iPhones, which cannot
transfer COMPANY Ring Tones with their content rights keys to any other device, (ii) may be
transferred to, stored on, and previewed on up to five (5) Transfer Devices at the same
time, and (iii) may be used solely for end user’s personal and non-commercial use.
	 
	 	(e)	 	COMPANY shall be responsible for and timely pay: (i) all record royalties to artists,
producers, performers, musicians and other record royalty participants for the Sale of
COMPANY Ring Tones, (ii) all reproduction and distribution (i.e., mechanical) royalties
payable to composers, lyricists, authors and publishers of compositions embodied in COMPANY
Ring Tones for the Sale of COMPANY Ring Tones, (iii) all payments that may be required
under collective bargaining agreements applicable to COMPANY or third parties other than
ITUNES, and (iv) any other royalties, fees and/or sums payable with respect to the Sale of
COMPANY Ring Tones as part of the Service hereunder.

	3.	 	Pricing, Payment and Reporting. For each Sale of a COMPANY Ring Tone hereunder,
ITUNES shall pay COMPANY a wholesale price of xxxxxx. Reporting and payment with respect to
Sales of COMPANY Ring Tones shall be made in the same manner as for eMasters under Section 8
of this Agreement. COMPANY agrees to accept and use existing identifiers (e.g., Adam IDs) to
identify particular Eligible Tracks.

 

			
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EXHIBIT G

Ticketmaster Concert Album Sales

Notwithstanding any other provisions of this Agreement, the following terms shall apply to the use
of COMPANY Content in connection with ITUNES and Ticketmaster L.L.C.’s (“Ticketmaster”) joint
marketing program for the purpose of promoting such COMPANY Content:

	1.	 	Promotion. Ticketmaster may offer customers who purchase tickets for a live event
from www.ticketmaster.com or www.ticketmaster.ca (“Ticketmaster Sites”), as applicable, the
opportunity to purchase a code for redemption of specific COMPANY Content from the relevant
Online Store (“Code) by the artist headlining such live event (“Artist”) (such promotion
hereafter referred to as the “Promotion”). During the transaction process on the Ticketmaster
Sites, the Code shall be presented as a separate item that the customer can purchase in
addition to the tickets for the live event headlined by Artist. COMPANY hereby grants ITUNES
the right to authorize Ticketmaster to sell Codes on the Ticketmaster Sites during the Term,
as provided herein.
	 
	2.	 	Promo Album and Substitute Content. Each Code shall be configured for redemption of
the relevant Artist’s last released full-length album available on the Online Store as of
xxxxxx days prior to the date tickets for the Artist’s tour are available for sale on the
Ticketmaster Sites (the “Promo Album”). From time to time, each party may make reasonable
requests to the other party to substitute the Promo Album with other COMPANY Content as the
featured content in the Code (“Substitute Content”). The decision to use Substitute Content
and the selection of Substitute Content shall be subject to the parties’ mutual agreement in
writing (email to suffice). If the parties are unable to agree mutually on Substitute
Content, the Promo Album shall be offered on the Ticketmaster Sites in connection with the
Promotion. Notwithstanding this paragraph, ITUNES reserves the right to deny any requests to
use Substitute Content by COMPANY, as determined within ITUNES’ sole discretion
	 
	3.	 	Removal. In the event an Artist or other exclusive rights holder objects to
inclusion in the Promotion for reasons outside of COMPANY’s control, COMPANY shall have the
right to require that particular COMPANY Content be removed from the Promotion. Notice for
such removal must be made in writing to ITUNES’ designated representative, and ITUNES shall be
responsible for securing the removal of the affected COMPANY Content from the Ticketmaster
Sites for the purposes of the Promotion as soon as commercially reasonable, but in any event
no later than xxxxxx days from notice. ITUNES’ current designated representative for such
notices is itunesproducer@apple.com. ITUNES may, from time to time, change the designated
representative and means for giving written notice by posting a notice on its Label Connect
site.

 

			
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	4.	 	Payment. eMaster Proceeds in connection with the Codes shall be paid to COMPANY in
accordance with Section 8 of this Agreement. Notwithstanding the foregoing, if a Code sold by
Ticketmaster is not redeemed by the last day of the Apple Inc. fiscal year (approximately
October 1 to the last Saturday of September) (“Apple Fiscal Year”) in which the Code is
delivered to the customer (“Unredeemed Code”), the Unredeemed Code shall be considered “sold”
for the purposes of the Agreement, i.e. the eMaster embodied in the Code shall be deemed
successfully delivered, on the last day of such Apple Fiscal Year; provided, however, that if
a Code is sold by Ticketmaster in the last xxxxxx months of an Apple Fiscal Year, the
Unreedemed Code shall be considered “sold” on the xxxxxx of the following Apple Fiscal Year
(“Sale Date”). eMaster Proceeds for any Unredeemed Codes shall be set forth in the Sales
Report following the relevant Sale Date. For avoidance of doubt, this paragraph shall fulfill
any and all of ITUNES’ payment obligations in connection with Unredeemed Codes under the
Agreement and COMPANY shall not be entitled to collect any wholesale price or any other
payments in the event of redemption of an Unredeemed Code after a Sale Date. If a customer
has not redeemed a Code and the COMPANY Content embodied in the Code is removed from the
Online Store, upon the customer’s request, ITUNES shall credit the customer the purchase price
of the Code and ITUNES shall have no obligation to make any payments whatsoever to COMPANY in
connection with the sale of the Code. In the event Apple has already paid COMPANY for such
Codes, ITUNES shall deduct the amount paid in a subsequent Sales Report.

 

			
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30 of 30EX-10.11

 

EXHIBIT 10.11

AMENDED & RESTATED DIGITAL MUSIC DOWNLOAD SALES AGREEMENT

This Agreement is by and between “ITUNES” and “COMPANY”, as each is identified on the attached
Cover Sheet, and is entered into as of the Effective Date (as defined herein).

          WHEREAS, ITUNES and COMPANY are parties to one or more Current Agreement(s) (as defined
herein);

          WHEREAS, ITUNES desires and, in exchange for ITUNES’ obligations herein, COMPANY is willing to
allow ITUNES to sell COMPANY’s content in digital form on modified terms as provided herein;

          NOW, THEREFORE, in consideration of the mutual promises and agreements set forth herein, and
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, ITUNES and COMPANY (each a “Party” and collectively, “Parties”) hereby agree as
follows:

     1. Definitions.

The following terms shall have the following meanings for purposes of this Agreement:

	 	(a)	 	“Content File” means each digital file containing COMPANY Content,
applicable Artwork (if any), parental advisory notices (if any), copyright notices (if
any), and associated metadata (e.g., artist name, track or video title, track or video
title version (if applicable), territories cleared for sale, copyright notice, ISRC, UPC
and corresponding album title (if applicable) and editorial content data (if any)).
	 
	 	(b)	 	“Content Usage Rules” means the usage rules applicable to COMPANY Content in
the form of Regular eMasters and Plus eMasters available on the Online Store that specify
the terms under which a Regular eMaster and Plus eMaster, respectively, may be used, as
set forth in Exhibit A attached hereto, and which may be modified by ITUNES from time to
time, subject to prior written approval by COMPANY (such approval or disapproval not to be
unreasonably delayed) in the event of a material change to such usage rules.
	 
	 	(c)	 	“Security Solution” means the proprietary Apple content protection system
marketed as Fairplay, in effect as of the Effective Date used to protect Regular eMasters
(but, for avoidance of doubt, not Plus eMasters) sold on the Online Store pursuant to this
Agreement, which content protection system shall be no less protective than the protection
system used to protect similar third party content sold on the Online Store, and which may
be modified by ITUNES from time to time, subject to prior written approval by COMPANY
(such approval not to be unreasonably withheld, delayed or conditioned) in the event of a
material change to such content protection system such that Regular eMasters are being
protected less than before.

 

 

	 	(d)	 	“eMaster” or “eMasters” means copies of COMPANY Content in digital form
suitable for exploitation on the Online Store, in the Format and (i) having the Security
Solution (“Regular eMasters”) or (ii) having no Security Solution (“Plus eMasters”), which
ITUNES may sell on the Online Store pursuant to the terms and conditions of this
Agreement.
	 
	 	(e)	 	“Format” or “Formatting” means the digital format for content set forth in
Exhibit C-1 attached hereto or the process of converting content into eMasters.
	 
	 	(f)	 	“Non-Transfer Device” means a device, such as an iPod or a cell phone, having
the Security Solution, which can receive eMasters by any means for their storage and/or
playback via proprietary Apple software, but which cannot transfer eMasters with their
content rights keys to any other device.
	 
	 	(g)	 	“Transfer Device” means a device, such as a computer, having the Security
Solution, which can receive eMasters by any means for their storage and/or playback via
proprietary Apple software, transfer eMasters with their content rights keys to any
Non-Transfer Device or Transfer Device and/or burn audio-only eMasters as an audio CD.
	 
	 	(h)	 	“Fulfillment Activities” means sales activities relating to the sale and
delivery of eMasters, provided by COMPANY, pursuant to the terms and conditions of this
Agreement.
	 
	 	(i)	 	“Current Agreement” means any DIGITAL MUSIC DOWNLOAD SALES AGREEMENT or
DIGITAL VIDEO DOWNLOAD SALES AGREEMENT by and between COMPANY and ITUNES that is in effect
as of the date this Agreement is signed by both Parties and the territory of which
includes any part of the Territory (as defined herein). The Current Agreement with the
earliest effective date is referred to as the “Earliest Current Agreement.”
	 
	 	(j)	 	“Effective Date” means the Signature Date.
	 
	 	(k)	 	“Term” means the period beginning on the Effective Date, and ending on the
date the Earliest Current Agreement is set to expire (“Current Expiration Date”), except
(i) if the Current Expiration Date is less than one year from the Signature Date, then the
Term shall end two years after the Current Expiration Date, or (ii) if the Current
Expiration Date is less than two years, but not less than one year, from the Signature
Date, then the Term shall end one year after the Current Expiration Date. The Term shall
automatically renew for additional, successive three-year periods unless either Party
provides written notice to the other Party of its intent to terminate this Agreement at
least ninety (90) days prior to the expiration of the then-effective Term.
	 
	 	(l)	 	“Territory” means the European Economic Area (fifteen old and ten new member
states of the European Union: Austria, Belgium, Cyprus, The Czech Republic, Denmark,
Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania,
Luxembourg,

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	 	 	 	Malta, Netherlands, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden, and
the United Kingdom; and three of the four states of the European Free Trade Association:
Iceland, Norway and Liechtenstein), and Switzerland; and any other country or territory where
COMPANY authorises ITUNES hereunder, as the case may be.
	 
	 	(m)	 	“Online Store” means an electronic store and its storefronts branded, and
owned and/or controlled by ITUNES or an affiliate of ITUNES.
	 
	 	(n)	 	“Regular COMPANY Content” means sound recordings owned or controlled by
COMPANY and in which COMPANY has cleared (as provided in Section 4 below) the necessary
rights to authorize electronic sales and sound recording performances in Regular eMaster
format by ITUNES pursuant to the terms of this Agreement.
	 
	 	(o)	 	“Plus COMPANY Content” means sound recordings owned or controlled by COMPANY
and in which COMPANY has cleared (as provided in Section 4 below) the necessary rights to
authorize electronic sales and sound recording performances in Plus eMaster format by
ITUNES pursuant to the terms of this Agreement.
	 
	 	(p)	 	“COMPANY Content” means Regular COMPANY Content and Plus COMPANY Content.
All sound recordings that are provided by or on behalf of COMPANY to ITUNES are deemed
owned or controlled by COMPANY and cleared by COMPANY as provided in Section 4 below.
	 
	 	(q)	 	“Artwork” means album cover artwork, screen shots and/or any other artwork
relating to COMPANY Content that COMPANY has cleared for use by ITUNES in accordance with
Section 2 below. All artwork that is provided by or on behalf of COMPANY to ITUNES is
deemed cleared by COMPANY.

     2. Authorization.

	 	(a)	 	Subject to the terms of this Agreement, COMPANY hereby appoints
ITUNES as a reseller of eMasters in the Territory. Accordingly, COMPANY hereby
grants a non-exclusive right to ITUNES, during the Term, to:

	 	i.	 	reproduce and Format COMPANY Content delivered by
COMPANY or by COMPANY’S representative designated by COMPANY in writing
into eMasters;
	 
	 	ii.	 	perform, exhibit and make available by streaming
clips of the COMPANY Content (“Clips”) to promote the sale of applicable
eMasters on the Online Store in accordance with Exhibit C-1;
	 
	 	iii.	 	promote, market, sell, distribute, perform and
electronically fulfill and deliver eMasters and associated metadata to
purchasers via the Online Store;

3 of 26

 

	 	iv.	 	reproduce, display, distribute and electronically
fulfill and deliver Artwork for personal use solely in conjunction with
the applicable purchased eMaster; and
	 
	 	v.	 	use COMPANY Content, Artwork and metadata as may
be reasonably necessary or desirable for ITUNES to exercise ITUNES’
rights under the terms of this Agreement.

	 	(b)	 	ITUNES shall not be authorized to use COMPANY Content or Artwork in
any manner or form not expressly authorized herein, provided that ITUNES may
modify metadata as reasonably necessary to correct errors or to append sub-genres
or like information for artist and content categories. Nothing in this Agreement
shall be construed to prevent COMPANY from marketing or selling COMPANY Content or
Artwork by any means.
	 
	 	(c)	 	ITUNES shall not pledge, mortgage or otherwise encumber any part of
the COMPANY Content, eMasters, or Artwork.

     3. COMPANY Obligations.

	 	(a)	 	Except for a special circumstance, such as an exclusive,
limited-time, one-off promotion for particular COMPANY Content, or for a reason
beyond COMPANY’s control (e.g., a third party contractual restriction), or as
otherwise agreed by the Parties, COMPANY (or a third party designated by COMPANY
in writing and approved by ITUNES) shall commence delivery of all existing COMPANY
Content as soon as reasonably possible following the Effective Date, and
prospectively during the Term, for just cleared COMPANY Content and new releases,
at least in time for ITUNES to begin selling eMasters the earlier of a general
release date, provided by COMPANY, or when any other distributor is permitted to
begin selling, or making commercially available, COMPANY Content in any format.
COMPANY may provide written notice to ITUNES, at the time that COMPANY delivers
particular COMPANY Content to ITUNES (and, for any already-delivered COMPANY
Content, no later than the Effective Date), that such COMPANY Content is not
authorized hereunder to be sold as Plus eMasters (“Plus Excluded Content”);
provided, however, that (i) COMPANY may not provide such notice for any COMPANY
Content that COMPANY permits any other distributor to sell, or otherwise make
commercially available, DRM-free in the Territory and (ii) if COMPANY subsequently
permits any other distributor to begin selling, or otherwise making commercially
available, any Plus Excluded Content DRM-free in the Territory, then COMPANY shall
withdraw such notice at least in time for ITUNES to begin selling the applicable
Plus Excluded Content as Plus eMasters at the same time as any such other
distributor.
	 
	 	(b)	 	Except as otherwise agreed by the Parties, COMPANY shall make all
COMPANY Content that COMPANY authorizes herein for sale on the Online Store
available in both a so-called “single” format and in a multi-track “album” format.
ITUNES may sell eMasters on the Online Store in the format that ITUNES believes
most favorably furthers the commercial

4 of 26

 

	 	 	 	purpose of this Agreement and otherwise in accordance with ITUNES’ then-current Online Store business practices.
	 
	 	(c)	 	COMPANY shall deliver Content Files to ITUNES, at COMPANY’S expense,
in the Delivery Format and via the Delivery Method set forth in Exhibit C-1
attached hereto.

     4. Royalties.

	 	(a)	 	COMPANY shall be responsible for and timely pay: (i) all record
royalties to artists, producers, performers, musicians and other record royalty
participants for the manufacture, storage, distribution and sale of eMasters, (ii)
all payments that may be required under collective bargaining agreements
applicable to COMPANY or third parties other than ITUNES, and (iii) any other
royalties, fees and/or sums payable with respect to the sound recordings, Artwork,
metadata and other materials provided by COMPANY (including, without limitation,
any moral rights or rights of performership associated therewith) and/or ITUNES’
authorized use thereof hereunder.
	 
	 	(b)	 	ITUNES shall be responsible for obtaining reproduction and
distribution (i.e., mechanical) rights, and song performance (i.e., communication
to the public) rights, from, and for making and making arrangements for payments,
royalties or sums payable to, composers, lyricists, authors and music publishers
as may be reasonably necessary for the commercial exploitation hereunder of the
compositions embodied in eMasters (“Author’s Rights”). Despite the foregoing, to
the extent that COMPANY owns or controls any part of such Author’s Rights, COMPANY
shall not withhold such rights in any way that could frustrate the purpose of this
Agreement. The Parties acknowledge that the wholesale prices set forth in Exhibit
B-1 reflect a deduction for Author’s Rights at the prevailing industry-wide
royalty rates (currently estimated at eight percent (8%) of retail price) and
that, in the event that higher or lower prevailing industry-wide royalty rates are
established (whether by a court or tribunal within the Territory or through
negotiations), then the wholesale prices set forth in Exhibit B-1 shall be
prospectively reduced or increased (as the case may be) using such established
industry-wide royalty rates.

     5. Wholesale Price.

ITUNES shall pay COMPANY for eMasters sold by ITUNES hereunder the applicable wholesale
prices set forth in Exhibit B-1, which wholesale prices shall remain in effect
throughout the Term (subject to Section 4(b)). ITUNES shall pay COMPANY the applicable
wholesale price in Sterling (GBP) with respect to sales from the Online Store in the
United Kingdom, and in Euros with respect to sales from any other Online Store in the
Territory. ITUNES shall provide notice (which may be by email) at least five (5) days
prior to an increase in the retail price of an eMaster in any format (e.g.,
single-track, multi-track), and shall consider COMPANY’s views in relation to such
increase in price. For avoidance of doubt, ITUNES reserves the right to determine the
retail price in its sole discretion.

5 of 26

 

     6. ITUNES Obligations.

	 	(a)	 	ITUNES shall condition sale and delivery of eMasters upon an end
user’s acknowledgement of terms of use for such eMasters (“Terms of Use”), which
Terms of Use shall be no less restrictive than the Content Usage Rules, and shall
state that the sale of eMasters does not transfer to purchaser any commercial or
promotional use rights in the eMasters.
	 
	 	(b)	 	Subject to Section 4, ITUNES shall be responsible for all costs
associated with ITUNES’ Fulfillment Activities.
	 
	 	(c)	 	If there is a change of circumstance during the Term as a result of
which COMPANY reasonably believes that it does not have, or no longer has, the
rights necessary to authorize ITUNES to use any COMPANY Content or Artwork as
provided for herein, or COMPANY reasonably believes that ITUNES’ continued sale of
any COMPANY Content or Artwork will substantially harm COMPANY’s relations, or
violates the terms of any of COMPANY’S agreements, with any applicable copyright
owner, artist, producer, director (in the case of audio-visual content) or
distributor (each a “Clearance Issue”), then COMPANY shall have the right to
withdraw, upon written notice to ITUNES’ designated representative, authorization
for the sale of such COMPANY Content or Artwork to the extent of such Clearance
Issue. Following ITUNES’ receipt of such written notice by COMPANY, ITUNES shall
cease to offer such COMPANY Content or Artwork for sale as specified in the notice
within three (3) business days after ITUNES’ receipt of such notice of withdrawal,
and COMPANY shall use commercially reasonable efforts to clear such withdrawn
COMPANY Content or Artwork and shall promptly notify ITUNES if and when such
COMPANY Content or Artwork has been cleared and is again authorized for sale by
ITUNES as provided herein. COMPANY shall not withdraw any authorization with
respect to COMPANY Content or Artwork if COMPANY continues to provide such
authorization to any other on-line digital distributor of COMPANY Content.
ITUNES’ current designated representative for such notices is
itunesproducer@apple.com. ITUNES may, from time to time, change the designated
representative and means for giving written notice by posting a notice on its
Label Connect site.
	 
	 	(d)	 	ITUNES reserves the right to pull-down, or not offer for sale, any
COMPANY Content or Artwork in the event a third party claims that ITUNES is not
authorized to sell or otherwise use such COMPANY Content or Artwork on the Online
Store, in which case COMPANY shall cooperate with ITUNES’ reasonable requests
towards handling such third party claim.

     7. Parental Advisory.

If COMPANY provides an appropriate parental advisory warning about a particular eMaster
in the Content File, ITUNES shall conspicuously display such parental advisory when
other information about such eMaster is displayed. COMPANY shall be responsible for
determining parental advisory warning status.

6 of 26

 

     8. Payment and Reports.

	 	(a)	 	ITUNES shall remit payment to COMPANY for the sale of eMasters in
accordance with the following: (i) the “sale” of each eMaster shall occur when
such eMaster is successfully delivered by ITUNES to an end user; (ii) payments
shall accrue at the time that such eMaster is sold; and (iii) for each eMaster
sold, ITUNES shall pay to COMPANY an amount equal to the wholesale price for the
applicable eMaster (collectively “eMaster Proceeds”).
	 
	 	(b)	 	ITUNES shall pay eMaster Proceeds to COMPANY in the amount set forth
in a xxxxxx sales report reflecting all sales of eMasters and corresponding
eMaster Proceeds for the particular xxxxxx period (“Sales Report”) and in accordance with ITUNES standard business practices after the end of
each xxxxxx period during the Term; COMPANY xxxxxx shall provide to ITUNES a valid
VAT (if applicable) eMaster Proceeds invoice accurately based on such Sales Report
for each currency set forth in Exhibit B hereto, and, for invoices in any currency
other than Euros (e.g. GBP), such invoices shall display a foreign exchange rate to
Euros, provided by ITUNES (which exchange rate is for ITUNES’ accounting purposes
only and shall not affect the amount of eMaster Proceeds); and ITUNES xxxxxx will
send payment in the amount set forth in such VAT (if applicable) eMaster Proceeds
invoice within xxxxxx after invoice receipt. ITUNES will make each Sales Report
available to COMPANY via the proprietary LabelConnect site (free access to which is
provided by ITUNES to COMPANY during the Term pursuant to applicable terms and
conditions) and will notify COMPANY via email when each Sales Report is available.
ITUNES may modify the foregoing process in its reasonable discretion upon xxxxxx
written notice. For avoidance of doubt, eMaster Proceeds shall constitute
COMPANY’s full consideration hereunder.
	 
	 	(c)	 	ITUNES may withhold any taxes, duties, charges or levies on payments
by ITUNES to COMPANY pursuant to this Agreement as may be required by applicable
law, rule or regulation. ITUNES shall remit any such withheld taxes, duties,
charges or levies to the appropriate tax authority. Despite the foregoing,
provided COMPANY has fully satisfied all requirements to document its eligibility
for a lower or zero rate of withholding tax, including, without limitation,
providing ITUNES with a valid Certificate of Residency, ITUNES shall withhold
based on the lower withholding tax rate, or, if applicable, shall not withhold.
	 
	 	(d)	 	Payments made by ITUNES to COMPANY hereunder shall be by electronic
funds transfer (“EFT”), and COMPANY shall be responsible for any of COMPANY’S bank
transaction costs or fees arising from such payment. COMPANY shall provide ITUNES
with COMPANY’S banking information reasonably necessary to effect payment (on a
form to be provided to COMPANY by ITUNES), including but not limited to:

 

			
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i. Bank Name

ii. Account Name

iii. Account Number

iv. Routing Number

v. Royalty Accounting Contact: (Name, Address, Email, Fax, Tel.)

     9. Names and Likenesses; Promotional Use and Opportunities.

	 	(a)	 	ITUNES may use the names and authorized likenesses of, and
biographical material concerning, any eMaster artists, bands, producers, directors
(in the case of audio-visual content) and/or songwriters (each, a
	 
	 	 	 	“Talent”), as well as track title and/or album name, and Artwork, in any ITUNES
marketing materials for the sale, promotion and advertising of the applicable
eMaster which is offered for sale on the Online Store under the terms of this
Agreement (e.g., an artist or band name and likeness
	 
	 	 	 	may be used in an informational fashion, such as textual displays or other
informational passages, to identify and represent authorship, production credits,
and performances of the applicable artist or band in connection with the authorized
exploitation of applicable eMasters). Further written approval of COMPANY shall be
required if any Talent’s name or likeness is otherwise used as an endorsement of
ITUNES, the Online Store, or other products.
	 
	 	(b)	 	ITUNES shall have the unrestricted right to market, promote and
advertise the Online Store and content available for purchase on the Online Store
as it determines in its discretion. Without limiting the foregoing, ITUNES shall
have the right to determine which content, irrespective of any particular record
company, label or other content provider affiliation, would best further the
commercial purpose of the Online Store, and to promote such content more than
others.

     10. Copyright Notices; Ownership.

	 	(a)	 	COMPANY may provide a copyright notice (which shall be not more than
21 characters in length) for applicable COMPANY Content and associated Artwork in
the Content File, in which case ITUNES shall include such copyright notice in a
manner that can be viewed prior to purchase of such eMaster. ITUNES shall not
knowingly defeat, impair or alter any watermark in COMPANY Content, including any
related Artwork or materials delivered by COMPANY hereunder.
	 
	 	(b)	 	As between the Parties, all right, title and interest in and to (i)
the COMPANY Content, (ii) the eMasters, excluding the Security Solution, (iii) the
Clips, (iv) all copyrights and equivalent rights embodied therein, and (v) all
materials furnished by COMPANY, except as to any rights of ITUNES (whether
pre-existing or under this Agreement), shall remain the property of COMPANY, it
being understood that under no circumstances shall ITUNES have any lesser rights
than it would have as a member of the public.

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     11. Press Release.

Without limiting the provisions of Section 16, COMPANY shall not make or issue any
public statement or press release regarding this Agreement or its subject matter
without prior written approval from ITUNES.

     12. Data Protection.

	 	(a)	 	ITUNES shall use the Security Solution for Regular eMasters, which
shall be no less protective of COMPANY Content than any other security solution
provided by ITUNES for any other sound recordings on the Online Store. If the
Security Solution is compromised such that Regular eMasters have been unencrypted
and are being widely used without restriction, having an adverse material effect
on the commercial intent of this Agreement xxxxxx. The foregoing shall constitute
ITUNES’ sole obligation and COMPANY’s sole remedy from ITUNES in the event of such
a security breach. For avoidance of doubt, this Section 12(a) shall not apply to
Plus eMasters.
	 
	 	(b)	 	Despite anything to the contrary, in the event that ITUNES receives
notice of a security breach of the servers or network components that store
COMPANY Content or Artwork on the Online Store such that unauthorized access to
COMPANY Content or Artwork becomes available via the Online Store xxxxxx which
shall be ITUNES’ sole obligation and COMPANY’s sole remedy from ITUNES in the
event of such a security breach.
	 
	 	(c)	 	COMPANY Content in ITUNES’ control or possession shall reside on one
or more network servers, workstations or equivalent devices owned or controlled by
ITUNES or its contractors, each of which shall be secured with restricted access.

     13. Record-Keeping and Audit

	 	(a)	 	ITUNES shall maintain and keep complete and accurate books and
records concerning the amounts payable to COMPANY arising from transactions
relating to ITUNES’ sale of xxxxxx.
	 
	 	(b)	 	Upon reasonable advance written notice xxxxxx during the Term and for
xxxxxx thereafter (the “Audit Period”), COMPANY, at COMPANY’s sole expense, may
appoint an independent certified public accountant not then engaged in any audit
of ITUNES or COMPANY to audit applicable books and records of ITUNES at ITUNES’
principal place of business in the Territory for the sole purpose of verifying the
amounts due from ITUNES to COMPANY hereunder. Such audit shall take place during
regular

 

			
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	 	 	 	business hours, and shall not occur more than once during any twelve (12) month
period. The certified public accountant shall not be engaged on a contingency-fee
basis and must sign and deliver to ITUNES a confidentiality agreement in a form
acceptable to ITUNES that protects ITUNES’ confidential information no less than
the terms of this Agreement and no less than COMPANY protects its own similar
information. COMPANY may audit information contained in a particular statement only
once, and no audit shall be allowed or conducted for a period spanning less than
six (6) months.
	 
	 	(c)	 	COMPANY shall be deemed to have consented to all accountings rendered
by ITUNES hereunder, and said accountings shall be binding upon COMPANY and shall
not be subject to any objection by COMPANY for any reason unless specific
objections are provided to ITUNES in writing during the Audit Period. COMPANY
agrees that ITUNES’ books and records contain “Confidential Information” (as
defined below).

     14. Termination and Effect of Termination.

	 	(a)	 	Either Party shall have the right to terminate this Agreement prior
to the expiration of the Term in the event that the other Party (i) becomes
insolvent, (ii) files a petition in bankruptcy, (iii) makes an assignment for the
benefit of creditors, or (iv) breaches any material representation, obligation or
covenant contained herein, unless such breach is cured prospectively, no later
than thirty (30) days from the date of receipt of notice of such breach, or if not
able to be so cured, then resolved to the other Party’s satisfaction, not to be
unreasonably withheld.
	 
	 	(b)	 	Sections 1, 4, 6b, 8, 10b, 11, 13, 14, 15, 16, 17, and 18 shall
remain in full force and effect following the expiration or earlier termination of
this Agreement. The expiration or earlier termination of this Agreement shall not
relieve COMPANY or ITUNES of its respective obligations to make any payments with
respect to the sale of eMasters in the periods prior to such expiration or
termination (and the associated accounting) in accordance with this Agreement.
	 
	 	(c)	 	Upon the expiration or earlier termination of this Agreement, all
COMPANY Content, eMasters, Clips, and Artwork in ITUNES’ possession or control
shall be promptly deleted or destroyed, excluding any archival copies maintained
in accordance with ITUNES’ standard business practices or required to be
maintained by applicable law, rule or regulation.

     15. Indemnification and Limitation of Liability.

	 	(a)	 	ITUNES will indemnify and hold harmless, and upon COMPANY’S request,
defend, COMPANY and its affiliates (and their respective directors, officers and
employees) from and against any and all losses, liabilities, damages, costs and
expenses (including reasonable attorneys’ fees and costs) arising out of a claim
by a third party by reason of: (i) any use by ITUNES of the COMPANY Content or
Artwork in breach of this Agreement; (ii) a breach of any warranty,
representation, covenant or obligation of ITUNES under this Agreement; or (iii)
any claim that the

10 of 26

 

	 	 	 	technology used by ITUNES in the Fulfillment Activities infringes the intellectual property rights of another party. ITUNES will reimburse COMPANY and
its affiliates on demand for any payments actually made in resolution of any
liability or claim that is subject to indemnification under this Section 15,
provided that COMPANY obtains ITUNES’ written consent prior to making such
payments. COMPANY shall promptly notify ITUNES of any such claim, and ITUNES may
assume control of the defense or settlement of such claim. COMPANY shall have the
right, at its expense, to participate in the defense thereof under ITUNES’
direction.

	 	(b)	 	COMPANY will indemnify and hold harmless, and upon ITUNES’ request,
defend, ITUNES and its affiliates and contractors (and their respective directors,
officers and employees) from and against any and all losses, liabilities, damages,
costs or expenses (including reasonable attorneys’ fees and costs) arising out of
a claim by a third party by reason of: (i) a breach of any warranty,
representation, covenant or obligation of COMPANY under this Agreement; or (ii)
excluding the rights that ITUNES is responsible for under Section 4(b), any claim
that any COMPANY Content, Artwork, metadata or any other materials provided or
authorized by or on behalf of COMPANY hereunder or ITUNES’ use thereof violates
or infringes the rights of another party. COMPANY will reimburse ITUNES and its
affiliates on demand for any payments actually made in resolution of any liability
or claim that is subject to indemnification under this Section 15, provided that
ITUNES obtains COMPANY’s written consent prior to making such payments. ITUNES
shall promptly notify COMPANY of any such claim, and COMPANY may assume control of
the defense or settlement of such claim. ITUNES shall have the right, at its
expense, to participate in the defense thereof under COMPANY’s direction.
	 
	 	(c)	 	EXCEPT PURSUANT TO AN EXPRESS INDEMNITY OBLIGATION, IN NO EVENT SHALL
EITHER PARTY BE LIABLE TO THE OTHER PARTY FOR INDIRECT, INCIDENTAL, CONSEQUENTIAL
OR SPECIAL DAMAGES, INCLUDING LOSS OF PROFITS OR PUNITIVE DAMAGES, EVEN IF ADVISED
OF THEIR POSSIBILITY.
	 
	 	(d)	 	NO WARRANTY OR TERM, EXPRESS OR IMPLIED, STATUTORY OR OTHERWISE, AS
TO THE CONDITION, QUALITY, DURABILITY, PERFORMANCE, MERCHANTABILITY OR FITNESS FOR
A PARTICULAR PURPOSE OF THE ONLINE STORE, THE SECURITY SOLUTION, OR ANY ELEMENTS
OF THE FOREGOING IS GIVEN TO, OR SHOULD BE ASSUMED BY, COMPANY, AND ANY SUCH
WARRANTIES AND TERMS ARE HEREBY EXCLUDED.

     16. Confidentiality.

Each Party acknowledges that by reason of this Agreement it may have access to certain
information and materials concerning the other Party’s business plans, customers,
technology and products that are confidential and of substantial value to such Party,
which value would be impaired if such information were disclosed to third parties or
used for purposes other than as expressly permitted by this Agreement (referred to in
this Agreement as “Confidential Information”). Each Party agrees to maintain any and
all Confidential Information received from the other, in confidence, and agrees not to
disclose or otherwise make available such Confidential Information to

11 of 26

 

any third party without the prior written consent of the disclosing Party. Each Party
agrees that Confidential Information shall be disclosed to its employees and other
personnel under its control and supervision for purposes of performing under this
Agreement solely on a need-to-know basis in furtherance of this Agreement, and solely
to those individuals who are bound by a written non-disclosure agreement having terms
no less restrictive than the non-disclosure terms of this Section 16, unless required
by law, or court or governmental order. Confidential Information shall be deemed to
include (i) information marked confidential, if conveyed in writing, and (ii)
information identified orally as confidential, if conveyed orally. Confidential
Information shall not be deemed to include any information which (a) is publicly known
at the time of the disclosure, (b) becomes publicly known other than by breach of the
terms of this Section 16, (c) becomes known to the receiving Party, without
restriction, from a source free of any obligation of confidentiality and without breach
of this Section 16, or (d) is independently developed by the receiving Party.

     17. Additional Representations and Warranties of the Parties.

	 	(a)	 	Each Party represents and warrants that it has full authority to
enter into this Agreement, and to fully perform its obligations hereunder.
	 
	 	(b)	 	Each Party represents and warrants that it owns or controls the
necessary rights in order to make the grant of rights, licenses and permissions
herein, and that the exercise of such rights, licenses and permissions by the
other Party hereto shall not violate or infringe the rights of any third party.
	 
	 	(c)	 	Each Party represents and warrants that it shall not act in any
manner which conflicts or interferes with any existing commitment or obligation of
such Party, and that no agreement previously entered into by such Party will
interfere with such Party’s performance of its obligations under this Agreement.
	 
	 	(d)	 	Each Party represents and warrants that it shall perform in
compliance with any applicable laws, rules and regulations of any governmental
authority.

     18. General Provisions.

	 	(a)	 	No Agency or Joint Venture. The Parties agree and acknowledge that
the relationship between the Parties is that of independent contractors acting as
seller and purchaser. This Agreement shall not be deemed to create a partnership
or joint venture, and neither Party is the other’s agent, partner, employee, or
representative.
	 
	 	(b)	 	Contractors. ITUNES may contract with third parties to provide
Fulfillment Activities on behalf of ITUNES, provided such third parties are
subject to terms no less restrictive than the terms ITUNES is subject to under
this Agreement. ITUNES shall be responsible for the performance of such third
parties while under ITUNES’ control and supervision.

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	 	(c)	 	Entire Agreement, Modification, Waiver. This Agreement, including
any annexes, schedules and exhibits hereto, contains the entire understanding of the Parties relating to the subject matter hereof, and supersedes
all previous agreements or arrangements between the Parties relating to the subject
matter hereof. This Agreement cannot be changed or modified except by a writing
signed by the Parties. A waiver by either Party of any term or condition of this
Agreement in any instance shall not be deemed or construed as a waiver of such term
or condition for the future, or of any subsequent breach thereof. If any provision
of this Agreement is determined by a court of competent jurisdiction to be
unenforceable, such determination shall not affect any other provision hereof, and
the unenforceable provision shall be replaced by an enforceable provision that most
closely meets the commercial intent of the Parties.
	 
	 	(d)	 	Binding on Successors. This Agreement shall be binding on the
assigns, heirs, executors, personal representatives, administrators, and
successors (whether through merger, operation of law, or otherwise) of the
Parties. ITUNES may assign or transfer any part of this Agreement to an affiliate
of ITUNES without COMPANY’s consent.
	 
	 	(e)	 	Notices. Any notice, approval, request, authorization, direction or
other communication under this Agreement shall be given in writing and shall be
deemed to have been delivered and given for all purposes: (i) on the delivery date
if delivered personally to the Party to whom the same is directed or delivered;
(ii) upon delivery by confirmed-receipt facsimile to the appropriate number set
forth below (and, further, confirmation of receipt is made by telephone); (iii)
one (1) business day after deposit with a commercial overnight carrier, with
written verification of receipt; or (iv) five (5) business days after the mailing
date, whether or not actually received, if sent by certified mail, return receipt
requested, postage and charges prepaid, to the address of the Party to whom the
same is directed as set forth below (or such other address as such other Party may
supply by written notice duly given).
	 
	 	 	 	If to COMPANY, to the Senior Management contact specified by COMPANY on the
attached Cover Sheet, with a courtesy copy by email or facsimile, which copy shall
not constitute notice, to the Legal/Business Affairs contact specified by COMPANY
on the attached Cover Sheet.
	 
	 	 	 	If to ITUNES, to the Senior Management contact specified on the attached Cover
Sheet, with courtesy copies by email or facsimile, which copies shall not
constitute notice, to the Legal/Business Affairs contacts specified on the attached
Cover Sheet.
	 
	 	(f)	 	Governing Law. This Agreement shall be governed and interpreted in
accordance with the laws of England & Wales, and the English courts shall be the
sole courts of competent jurisdiction. Both Parties hereby waive the right to
object to the foregoing choice of law or venue.

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	 	(g)	 	Counterparts. This Agreement may be executed in counterparts, each of
which shall be deemed an original and all of which together shall constitute one
and the same document.
	 
	 	(h)	 	Remedies. To the extent permitted by applicable law, the rights and
remedies of the Parties provided under this Agreement are cumulative and in addition to any other rights and remedies of the Parties at law or equity.
	 
	 	(i)	 	Headings. The titles used in this Agreement are for convenience only
and are not to be considered in construing or interpreting the Agreement.
	 
	 	(j)	 	No Third-Party Beneficiaries. This Agreement is for the sole benefit
of the Parties hereto and their authorized successors and permitted assigns.
Nothing herein, express or implied, is intended to or shall confer upon any person
or entity, other than the Parties hereto and their authorized successors and
permitted assigns, any legal or equitable right, benefit or remedy of any nature
whatsoever under or by reason of this Agreement.

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	 	(k)	 	Force Majeure. For the purposes of this Agreement, “Force Majeure” shall mean any
event which a Party hereto could not foresee, such as fire, flood, acts of God or
public enemy, Internet failures, earthquakes, governmental or court order, national
emergency, strikes or labor disputes, the effect of which it could not reasonably
prevent or predict and which renders impossible or impractical the performance of
contractual obligations either totally or in part. The Party invoking a Force
Majeure shall notify the other Party within three (3) business days of its
occurrence by accurately describing all the circumstances of the situation involved
and its effect upon the performance of its contractual obligations. The taking
place of a Force Majeure shall have the effect of suspending the obligations of the
Party which has invoked the provisions of this Section to the extent such
obligations are affected by the Force Majeure. Contractual dates shall be extended
for a period equal to the duration of a Force Majeure. The cessation of a Force
Majeure shall be communicated by notice within three (3) business days of its
occurrence by the Party that invoked it.

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be duly executed by their
respective officers thereunto duly authorized.

	 	 	 	 	 	 	 	 	 
	ITUNES S.à.r.l.	 	COMPANY	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Carsten Dierksen
 

	 	By:
	 	/s/ Barth Ballard
 

                    Signature
	 	 
	 
	 	 	 	 	 	 	 	 
	Name: Carsten Dierksen	 	Name: Barth Ballard	 	 
	Title: Business Manager	 	Title: Interim CEO, VP Marketing	 	 
	Date: October 13, 2007	 	Date: October 3, 2007	 	 
	Place of signature: Luxembourg	 	Place of signature: California, USA	 	 

The later of the two dates above (if different) shall constitute the “Signature Date.”

Please send TWO original signed copies to:

iTunes S.à.r.l.

Attn: iTunes Store Contracts

c/o Apple

1 Infinite Loop, MS 3-ITMS

Cupertino, CA 95014

United States

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EXHIBIT A

Content Usage Rules

Regular eMasters

End users obtaining Regular eMasters from ITUNES pursuant to the terms of this Agreement may:

	 	1.	 	Burn audio-only single-track Regular eMasters xxxxxx to an audio CD as part of a
playlist.
	 
	 	2.	 	Use Regular eMasters in applications using QuickTime.
	 
	 	3.	 	Store Regular eMasters on up to five (5) Transfer Devices at the same time.
	 
	 	4.	 	Subject to Paragraph 3. above, transfer Regular eMasters to, and/or render from, a
Transfer Device or Non-Transfer Device.
	 
	 	5.	 	Use Regular eMasters solely for end user’s personal and non-commercial use.

Plus eMasters

End users obtaining Plus eMasters from ITUNES pursuant to the terms of this Agreement may use Plus
eMasters solely for end user’s personal and non-commercial use.

 

			
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EXHIBIT B-1

Schedule of Wholesale Prices — Audio

Sales in the United Kingdom shall be in Sterling (GBP). Sales in Denmark shall be in Danish Krone
(DKK). Sales in Norway shall be in Norwegian Kroner (NOK). Sales in Sweden shall be in Swedish
Krona (SEK). Sales in Switzerland shall be in Swiss Francs (CHF). Sales in the remainder of the
Territory shall be in Euros.

Single-Track Wholesale Prices (excluding VAT)

	 	 	 	 	 
	Regular eMaster	 	Plus eMaster	 	Upgrade†
	xxxxxx

	 	xxxxxx
	 	xxxxxx
	 
	xxxxxx

	 	xxxxxx
	 	xxxxxx

 

† xxxxxx

Multi-Track Album Wholesale Prices (excluding VAT)

	 	 	 	 	 
	Album Tiers	 	Regular/Plus Album	 	Album Upgrade††
	Mini-EP**
	 	xxxxxx*	 	xxxxxx*
	 
	 	xxxxxx*	 	xxxxxx*
	 
	 	 	 	 
	EP**
	 	xxxxxx*	 	xxxxxx*
	 
	 	xxxxxx*	 	xxxxxx*
	 
	 	 	 	 
	Budget**
	 	xxxxxx*	 	xxxxxx*
	 
	 	xxxxxx*	 	xxxxxx*
	 
	 	 	 	 
	Back**
	 	xxxxxx*	 	xxxxxx*
	 
	 	xxxxxx*	 	xxxxxx*
	 
	 	 	 	 
	Mid/Front**
	 	xxxxxx*	 	xxxxxx*
	 
	 	xxxxxx*	 	xxxxxx*
	 
	 	 	 	 
	Front Plus**
	 	xxxxxx*	 	xxxxxx*
	 
	 	xxxxxx*	 	xxxxxx*
	 
	 	 	 	 
	Multi-CD Sets**
	 	xxxxxx*	 	xxxxxx*

 

			
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	*	 	Notwithstanding anything to the contrary herein (including any album tier designation pursuant
hereto), xxxxxx.

	 
	**	 	COMPANY may select the xxxxxx tier only for xxxxxx may be used solely for xxxxxx. In addition,
the xxxxxx tier may be used solely where the xxxxxx. ITUNES may in its discretion waive, on a
case-by-case basis, any of the restrictions set forth in this paragraph.

	 
	†† 	 	xxxxxx.

For avoidance of doubt, COMPANY shall have the right to designate the album tier (subject to any
limitations regarding the use of such tier) for each multi-track album of COMPANY Content delivered
by COMPANY to ITUNES. In the event COMPANY does not designate an album tier for a particular
multi-track album, such multi-track album shall be deemed designated xxxxxx until such time as
COMPANY designates a different album tier. COMPANY may change the designated album tier for a
particular multi-track album xxxxxx during the Term. ITUNES may in its discretion make available
additional multi-track album tiers during the Term.

xxxxxx

 

			
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EXHIBIT B-2

Schedule of Wholesale Prices — Videos

Sales in the United Kingdom shall be in Sterling (GBP). Sales in Denmark shall be in Danish Krone
(DKK). Sales in Norway shall be in Norwegian Kroner (NOK). Sales in Sweden shall be in Swedish
Krona (SEK). Sales in Switzerland shall be in Swiss Francs (CHF). Sales in the remainder of the
Territory shall be in Euros.

Single Video Wholesale Prices (excluding VAT)

	 	 	 
	Regular/Plus eMaster	 	Video Upgrade†
	xxxxxx

	 	xxxxxx
	 
	xxxxxx

	 	xxxxxx

 

† xxxxxx.

Other Products

If ITUNES at any time during the Term exercises its discretion under Section 3(b) to accept
additional product configurations, then ITUNES will make available one or more wholesale price
tiers for such additional products. If multiple tiers are made available, COMPANY shall have the
right to designate any applicable tier for each product of COMPANY Content delivered by COMPANY to
ITUNES; provided that COMPANY may change the designated tier for a particular product xxxxxx during
the Term. Notwithstanding anything to the contrary herein (including any wholesale price tier made
available by ITUNES or tier designation by COMPANY), the wholesale price for any product xxxxxx.

 

			
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EXHIBIT C-1: Audio

Clips

Clips may be xxxxxx. If Clips are not provided by COMPANY, they may be created by ITUNES from the
xxxxxx of the applicable eMaster.

Format / Formatting

ITUNES may convert COMPANY Content into eMasters in any format using any encoder xxxxxx for sale on
the Online Store under the terms of this Agreement so long as the sound quality and integrity,
attributable to such format or encoder, of COMPANY’S eMasters having the Security Solution and
COMPANY’s eMasters having no Security Solution, respectively, is commensurate with the sound
quality and integrity of third party eMasters that are similarly (i.e., either with or without the
Security Solution, as the case may be) made available for sale on and delivered from the Online
Store.

Delivery Format

COMPANY shall deliver COMPANY Content to ITUNES xxxxxx.

Delivery Method

COMPANY Content shall be delivered to ITUNES using either the proprietary iTunes Producer software
(access to which is provided by ITUNES to COMPANY during the Term pursuant to applicable terms and
conditions), a secure FTP site address provided by ITUNES to COMPANY, rsync over SSH, or such other
delivery means as may be reasonably requested by ITUNES or mutually agreed between the Parties from
time to time. COMPANY acknowledges and agrees that use of iTunes Producer requires certain Mac
hardware and software (current required specifications, which are subject to change as iTunes
Producer is upgraded or otherwise, are available on the LabelConnect site).

 

			
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EXHIBIT C-2: Videos

Clips

Clips may be xxxxxx or xxxxxx. Clips may be created by ITUNES from the applicable COMPANY Content.

Format / Formatting

ITUNES may convert COMPANY Content into eMasters and Format them for sale and delivery from the
Online Store as follows: xxxxxx.

Delivery Format

COMPANY shall deliver each Content File of COMPANY Content to ITUNES (or a third party vendor
designated in writing by ITUNES), using the highest source quality available, as follows: xxxxxx.

Delivery Method

COMPANY Content shall be delivered to ITUNES (or a third party vendor designated in writing by
ITUNES) as follows: xxxxxx.

 

			
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EXHIBIT D

Music Videos

The following additional or modified terms and conditions shall apply to the sale of permanent
downloads of music videos under the Agreement. In all other respects the terms and conditions of
the Agreement shall apply equally to music videos. Solely for purposes of this Exhibit D:

	1.	 	Sections 1(n), 1(o) and 1(p) shall state, respectively:

	 	(n)	 	Regular COMPANY Content” means music videos, including, without limitation, audio
and video files, owned or controlled by COMPANY and in which COMPANY has cleared (as provided
in Section 4 below) the necessary rights to authorize electronic sales and audio-visual
performances in Regular eMaster format by ITUNES pursuant to the terms of this Agreement.
	 
	 	(o)	 	“Plus COMPANY Content” means music videos, including, without limitation, audio and
video files, owned or controlled by COMPANY and in which COMPANY has cleared (as provided in
Section 4 below) the necessary rights to authorize electronic sales and audio-visual
performances in Plus eMaster format by ITUNES pursuant to the terms of this Agreement.
	 
	 	(p)	 	“COMPANY Content” means Regular COMPANY Content and Plus COMPANY Content. All
music videos that are provided by or on behalf of COMPANY to ITUNES are deemed owned or
controlled by COMPANY and cleared by COMPANY as provided in Section 4 below.

	2.	 	Section 3(b) shall state: COMPANY shall make all COMPANY Content that COMPANY authorizes
herein for sale on the Online Store available as single videos. From time to time during the
Term, ITUNES may in its discretion decide to accept additional product configurations (e.g.,
multi-video albums) from COMPANY, in which case COMPANY may, in its discretion, offer to make
particular COMPANY Content available for sale on the Online Store in such product
configurations.

     3. Section 4 shall state:

	 	(a)	 	Except as provided in Section 4(b) below, COMPANY shall be responsible for: (i)
obtaining all rights of, and all waivers of any applicable moral or similar rights by,
artists, performers, writers, producers, directors and any other third party rights
holders necessary for ITUNES’ unencumbered sale, promotion, storage, distribution and
other use as authorized hereunder of COMPANY Content, Artwork, metadata and/or any other
materials provided to ITUNES by COMPANY; and (ii) making corresponding full and timely
payments of all royalties, residuals, participation payments, repeat fees and/or other
sums payable for such rights and/or waivers, and all payments that may be required under
any collective bargaining, union or guild agreements related to the COMPANY Content or its
exploitation or other use hereunder, including any similar payments which are not now but
hereafter become payable.

	(b)	 	ITUNES shall be responsible for: (i) obtaining the reproduction (i.e., mechanical),
public performance and communication to the public rights in the musical compositions
embodied in COMPANY Content as may be reasonably necessary

22 of 26

 

	 	 	 	for ITUNES’ sale, promotion,
storage, distribution and other use as authorized hereunder of COMPANY Content (“Author’s Rights”); and (ii) making corresponding full and
timely payments of all royalties and/or other sums payable for such rights, including any
similar payments which are not now but hereafter become payable. Notwithstanding the
foregoing, to the extent that COMPANY owns or controls any part of such rights (whether
directly or indirectly), COMPANY shall not withhold such rights in any way that could
frustrate the purpose of this Agreement. The Parties acknowledge that the wholesale prices
set forth in Exhibit B-2 reflect a deduction for Author’s Rights at the prevailing
industry-wide royalty rates (currently estimated at eight percent (8%) of retail price) and
that, in the event that higher or lower prevailing industry-wide royalty rates are
established (whether by a court or tribunal within the Territory or through negotiations),
then the wholesale prices set forth in Exhibit B-2 shall be prospectively reduced or
increased (as the case may be) using such established industry-wide royalty rates.

	4.	 	The following shall be added to Section 10(b): Upon written request, ITUNES shall provide a
copy of each eMaster to COMPANY; provided, however, that COMPANY may not use any such eMaster
in any manner except for purposes of securing ownership in copyright.

5. The words “sound recordings” in Section 12(a) shall be replaced by “music videos.”

	6.	 	All references to Exhibits B-1 and C-1 shall instead be to Exhibits B-2 and C-2,
respectively.

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EXHIBIT E

Complete My Album

Notwithstanding any other provisions of this Agreement, the following terms shall apply to any CMA
Offers and CMA Transactions (as defined below):

	1.	 	Definitions:

	 	(a)	 	“Purchased Track” means a track or video previously acquired by a customer from
the Online Store by (i) purchase by any payment means or (ii) through a promotional
download, so long as ITUNES paid to COMPANY the appropriate wholesale price under this
Agreement for such download.
	 
	 	(b)	 	“CMA Album” means an album with which one or more Purchased Tracks are
“associated” (as provided in paragraph 3 below).
	 
	 	(c)	 	“Remaining Tracks” means all tracks or videos contained on a CMA Album, other
than any Purchased Tracks.
	 
	 	(d)	 	“CMA Offer” means the option by a particular customer to purchase the Remaining
Tracks of a CMA Album as a bundle — i.e., to “complete” that album — at a specified bundle
price.
	 
	 	(e)	 	“CMA Transaction” means the purchase by a customer of the Remaining Tracks of a
particular CMA Album as a bundle at a specified bundle price.
	 
	 	(f)	 	“Advance Single” means a single track released on the Online Store in advance
of the release of the corresponding album (e.g., a radio edit or pre-release single).
	 
	 	(g)	 	“Subsequent Album” means the album, released subsequent to an Advance Single’s
release, on which the Advance Single was included upon the album’s release.

	2.	 	Authorization of CMA Offers and Transactions. ITUNES is hereby authorized to make
CMA Offers and conclude CMA Transactions as provided in this Exhibit.

	3.	 	 “Associated” Purchased Tracks and CMA Albums.

	 	(a)	 	Except as provided in paragraphs 3(b)-(e) below, a Purchased Track is only deemed
“associated” with the album on the Online Store off of which it was acquired by the
customer.
	 
	 	(b)	 	For Advance Singles, the Subsequent Album shall be deemed to be the “associated” CMA
Album. If only one (unmarked) version of the Advance Single was offered, and both clean
and explicit versions of the Subsequent Album are offered on the Online Store, then each
such version of the Subsequent Album shall be deemed to be a CMA Album “associated” with
the Advance Single.
	 
	 	(c)	 	If standard and deluxe versions of an album are offered on the Online Store, then each
such version of the album shall be deemed to be a CMA Album

24 of 26

 

	 	 	 	“associated” with any Purchased Track acquired off of either version of the album.

	 	(d)	 	A redelivered album shall be deemed to be a CMA Album “associated” with any Purchased
Track that was acquired off of any version of that same album that was previously available
(but is no longer available) on the Online Store under the authority of COMPANY. ITUNES
will use commercially reasonable efforts to create automated “matching” such that CMA
Offers involving redelivered albums are made available to customers consistent with this
subparagraph.
	 
	 	(e)	 	A Purchased Track originally purchased in Regular eMaster format off of the Regular
eMaster version of a particular album, and then subsequently upgraded to Plus eMaster
format, shall thereafter also be deemed “associated” with the Plus eMaster version of that
album.
	 
	 	(f)	 	To the extent a customer is presented with more than one CMA Offer with respect to the
same Purchased Track (because more than one album is deemed a CMA Album “associated” with
such Purchased Track hereunder), the customer may only select one such option. In no event
may one Purchased Track be applied to more than one CMA Transaction.

	4.	 	Partial Albums. Only full albums (including video albums) available for sale on the
Online Store are eligible to be CMA Albums. Partial albums are not eligible.

	5.	 	Time Limits.

	 	(a)	 	A CMA Offer for a particular CMA Album may be made available to a customer only for a
period of xxxxxx from the date that customer acquired his or her first Purchased Track
associated with that CMA Album (except as provided in subparagraph (b) below); provided
that, for a period of xxxxxx from the date CMA Offers are first made available on the
Online Store, CMA Offers may be made available to each customer for CMA Albums associated
with any of that customer’s Purchased Tracks, regardless of when the Purchased Tracks were
acquired.
	 
	 	(b)	 	In the case of a customer who acquired an Advance Single before the corresponding
Subsequent Album became available on the Online Store, a CMA Offer for that Subsequent
Album may be made available to that customer only for a period of xxxxxx from the date the
Subsequent Album became available on the Online Store.

	6.	 	Wholesale Price. ITUNES will pay COMPANY the CMA Wholesale Price (as defined in this
paragraph) for each CMA Transaction. The CMA Wholesale Price will equal the wholesale price
under this Agreement for the CMA Album in effect at the time of the CMA Transaction (“Regular
Wholesale Price”) less the sum of the wholesale prices ITUNES previously paid for the
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	 	COMPANY; provided, however, that the CMA Wholesale Price in no event shall be less than the
wholesale price under this Agreement for a single track (a single music video in the event
the CMA Album is a video-only album) in effect at the time of the CMA Transaction. For
avoidance of doubt, ITUNES may determine retail prices on the Online Store, including
retail prices for CMA Transactions, entirely at its sole discretion.

	7.	 	Reporting. Each CMA Transaction will be reflected on sales and royalty reports as
follows: (i) a new sale of the full CMA Album at the Regular Wholesale Price, identified as a
CMA sale; and (ii) a return (i.e., negative royalty) for each Purchased Track
contained on the CMA Album in the amount ITUNES previously paid for the Purchased Track to
COMPANY, each identified as a CMA return.

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