TABLE OF CONTENTS TELEVISION AND RADIO COMMERCIAL ANNOUNCEMENTS AGREEMENT (October 17, 2004 – October 16, 2007) ARTICLE I: PARTIES, TERM, AND APPLICABILITY 1. PARTIES.................................................................................................................................................1 2. TERM......................................................................................................................................................1 3. SERVICES COVERED..............................................................................................................................1 4. SUBSIDIARIES AND CONTROLLING INTERESTS....................................................................................1 5. NON-TRANSFERABILITY........................................................................................................................2 6. TERMINATION........................................................................................................................................2 7. OUTSTANDING CLAIMS.........................................................................................................................2 8. WAIVERS................................................................................................................................................2 9. APPLICABLE LAWS................................................................................................................................2 10. CAPTIONS...............................................................................................................................................3 ARTICLE II: RELATIONSHIP OF THE PARTIES 1. RECOGNITION........................................................................................................................................4 2. BARGAINING UNIT WORK.....................................................................................................................4 3. UNION SECURITY...................................................................................................................................4 4. BYLAWS.................................................................................................................................................4 5. CONFLICT OF DUTIES............................................................................................................................4 6. PRIMARY LABOR DISPUTES..................................................................................................................5 7. RIGHT OF ACCESS.................................................................................................................................5 8. NON-DISCRIMINATION..........................................................................................................................5 9. EMPLOYER’S OBLIGATIONS..................................................................................................................5 10. FEDERATION’S OBLIGATIONS...............................................................................................................5 11. UNAUTHORIZED PRODUCTION..............................................................................................................5 12. RIGHT TO INFORMATION......................................................................................................................6 13. RIGHT TO AUDIT...................................................................................................................................6 14. INDUSTRY-FEDERATION COMMITTEE..................................................................................................6 ARTICLE III: INDIVIDUAL CONTRACTS 1. CONFORMITY WITH AGREEMENT.........................................................................................................7 2. PRESUMED CLAUSE...............................................................................................................................7 3. INDIVIDUALLY CREATED CONTENT.....................................................................................................7 4. TERMINATION OF AGREEMENT............................................................................................................7 Printing 08/10/06 i TABLE OF CONTENTS ARTICLE IV: TRANSFER OF RIGHTS 1. FEDERATION APPROVAL.......................................................................................................................8 2. ASSUMPTION AGREEMENT....................................................................................................................8 3. SURVIVAL CLAUSE................................................................................................................................9 ARTICLE V: GRIEVANCE AND ARBITRATION 1. SCOPE OF GRIEVANCES.......................................................................................................................10 2. STEP 1—INITIATION OF GRIEVANCES................................................................................................10 3. STEP 2—RESOLUTION MEETING........................................................................................................10 4. STEP 3—WRITTEN ANSWER...............................................................................................................10 5. STEP 4—DEMAND FOR ARBITRATION................................................................................................10 6. SELECTION OF ARBITRATOR..............................................................................................................10 7. HEARING AND AWARD........................................................................................................................11 8. EXTENSION..........................................................................................................................................11 ARTICLE VI: REPORTING 1. OBLIGATION TO REPORT....................................................................................................................12 2. SINGLE PAYMENT FOR MULTIPLE SERVICES....................................................................................12 3. COMPLETION OF REPORTING FORMS; REPORTING VIOLATIONS.....................................................12 ARTICLE VII: SESSIONS 1. MINIMUM CALL SESSION....................................................................................................................13 2. GUARANTEED LENGTH OF CALL........................................................................................................13 3. OVERTIME...........................................................................................................................................13 4. SINGLE ADVERTISER...........................................................................................................................13 5. MEAL PERIOD......................................................................................................................................13 6. REST PERIODS.....................................................................................................................................14 7. CONTRACTOR REQUIRED....................................................................................................................14 8. LEADERS AND CONTRACTORS PAID DOUBLE....................................................................................14 9. SINGLE MUSICIAN...............................................................................................................................14 10. SAME MUSICIAN..................................................................................................................................14 11. DOUBLING............................................................................................................................................14 12. MULTIPLE PARTS................................................................................................................................15 13. CARTAGE.............................................................................................................................................16 14. PREMIUM RATES.................................................................................................................................16 15. DISMISSAL............................................................................................................................................16 16. CANCELLATION...................................................................................................................................17 17. PUBLIC SERVICE ANNOUNCEMENTS...................................................................................................17 18. SESSION NOTIFICATION......................................................................................................................17 19. SESSION REPORTS TO ACCOMPANY SESSION PAYMENTS.................................................................18 Printing 08/10/06 ii TABLE OF CONTENTS ARTICLE VIII: STANDARD RECORDING RATES 1. BASE SCALE—SESSION FEES..............................................................................................................19 2. MAXIMUM NUMBER OF COMMERCIALS PER SESSION......................................................................19 ARTICLE IX: REGIONAL COMMERCIAL ANNOUNCEMENTS 1. PRIOR NOTICE.....................................................................................................................................21 2. UNLIMITED COPY AND VIDEO CHANGES...........................................................................................21 3. REGIONAL COMMERCIAL ANNOUNCEMENTS FOR NATIONAL ADVERTISERS..................................21 4. REGIONAL COMMERCIAL ANNOUNCEMENTS FOR REGIONAL ADVERTISERS..................................24 ARTICLE X: LOCAL COMMERCIAL ANNOUNCEMENTS 1. PRIOR NOTICE.....................................................................................................................................28 2. UNLIMITED COPY AND VIDEO CHANGES...........................................................................................28 3. LOCAL COMMERCIAL ANNOUNCEMENTS FOR NATIONAL ADVERTISERS........................................28 4. LOCAL COMMERCIAL ANNOUNCEMENTS FOR LOCAL ADVERTISERS..............................................30 ARTICLE XI: INTERNET COMMERCIAL ANNOUNCEMENTS 1. EXPERIMENTAL……………………………………………………………………………………….33 2. MADE FOR INTERNET……………………………………………………………………………...…33 3. USE OF MADE FOR INTERNET COMMERCIAL ON BROADCAST OR CABLE MEDIUM……………….34 4 INTERNET USE OF COMMERCIAL ANNOUNCEMENTS MADE FOR INITIAL USE ON TELEVISION OR RADIO. …………………………………………………………………………………………….…..34 5. DISPUTE RESOLUTION ………………………………………………………………………………..35 ARTICLE XII: EDITING 1. LIMITATION ON USE............................................................................................................................36 2. FEDERATION PERMISSION..................................................................................................................36 3. MECHANICAL EDITING.......................................................................................................................37 4. CHANGES REQUIRED BY LAW, BROADCAST STANDARDS AND LANGUAGE TRANSLATIONS............39 ARTICLE XIII: DUBBING AND CONVERSION FEES 1. DEFINITION..........................................................................................................................................40 2. CONDITIONS FOR PAYMENT................................................................................................................40 3. INFORMATION TO ACCOMPANY CONVERSION AND DUBBING PAYMENTS........................................40 ARTICLE XIV: USE/RE-USE 1. INITIAL USE.........................................................................................................................................42 2. 13-WEEK RE-USE CYCLES.................................................................................................................42 3. 8-WEEK USE AND RE-USE CYCLES-RADIO COMMERCIALS ONLY...................................................42 4. SHORT TERM USE................................................................................................................................43 5. USE/RE-USE RATES.............................................................................................................................43 6. USE IN ADDITIONAL BROADCAST MEDIUM........................................................................................45 7. FOREIGN USE.......................................................................................................................................46 Printing 08/10/06 iii TABLE OF CONTENTS 8. CABLE USE..........................................................................................................................................47 9. NON-BROADCAST USE.........................................................................................................................47 10. NOTICE OF FIRST AIR DATE...............................................................................................................47 11. USE OF CLAIMED COMMERCIAL ANNOUNCEMENTS.........................................................................48 12. COMMERCIAL NOT USED FOR TWO YEARS.......................................................................................48 13. CALCULATION OF CYCLES..................................................................................................................48 14. RE-USE REPORTS (ACCOMPANYING RE-USE PAYMENTS)..................................................................49 ARTICLE XV: MUSIC PREPARATION 1. ARRANGERS AND ORCHESTRATORS...................................................................................................50 2. COPYISTS.............................................................................................................................................52 3. GENERAL RULES APPLICABLE TO ARRANGERS, ORCHESTRATORS, COPYISTS AND LIBRARIANS..57 ARTICLE XVI: SIDELINE MUSICIANS 1. PAYMENTS...........................................................................................................................................60 2. WORKING CONDITIONS.......................................................................................................................61 ARTICLE XVII: PENSION FUND 1. PERCENTAGE CONTRIBUTION............................................................................................................67 2. SUBMIT REPORTS; SUBJECT TO AUDIT..............................................................................................67 3. SIMULTANEOUS DELIVERY OF STATEMENTS TO FEDERATION.........................................................67 4. RIGHT TO AUDIT.................................................................................................................................67 5. FEDERATION AND TRUSTEES MAY ENFORCE....................................................................................67 ARTICLE XVIII: HEALTH AND WELFARE PAYMENTS 1. EMPLOYER CONTRIBUTION................................................................................................................68 2. PAYMENT TO MUSICIANS....................................................................................................................68 3. CONTRIBUTIONS ARE NOT WAGES.....................................................................................................68 ARTICLE XIX: PAYMENTS 1. PLACE AND TIME.................................................................................................................................70 2. PAYMENT INFORMATION....................................................................................................................71 3. LATE PAYMENT PENALTY...................................................................................................................71 4. ADJUSTING UNDISPUTED OVERPAYMENTS........................................................................................72 5. CURRENCY...........................................................................................................................................72 SIDE LETTER ...........................................................................................................................................73 EXHIBIT A: ASSUMPTION AGREEMENT FORM.......................................................................................74 EXHIBIT B: B-6 REPORTING FORM.........................................................................................................75 EXHIBIT C: GRIEVANCE FORM...............................................................................................................77 INDEX.........................................................................................................................................................78 Printing 08/10/06 iv TELEVISION AND RADIO COMMERCIAL ANNOUNCEMENTS AGREEMENT OCTOBER 17, 2004 – OCTOBER 16, 2007 TELEVISION AND RADIO COMMERCIAL ANNOUNCEMENTS AGREEMENT (October 17, 2004 – October 16, 2007) ARTICLE I: PARTIES, TERM, AND APPLICABILITY 1. PARTIES The Joint Policy Committee on Broadcast Talent Union Relations of the Association of National Advertisers and American Association of Advertising Agencies (ANA-AAAA) and on behalf of each company whose name appears on the lists submitted to the Federation in October, 2004 together with any other party which executes the appropriate Letter of Adherence (each of which is herein severally called the "Employer")—and the American Federation of Musicians of the United States and Canada (herein called “Federation”) agree to the following terms, conditions and provisions (herein called the “Agreement”). 2. TERM This Agreement shall be in effect commencing October 17, 2004—or in the case of any new signatory Employer, on the effective date in the Letter of Adherence—and continuing through October 16, 2007. 3. SERVICES COVERED This Agreement shall apply to the employment of persons who fall within the bargaining unit classifications set forth in Article II (1) in connection with the recording of music tracks to be used in the production of television and radio commercial announcements, and the performance of services under Article XV. Excluded from this Agreement are music tracks recorded in Canada by members of Canadian Locals performing services under the Television and Radio Commercial Announcement Agreement for Canada. Commercial announcements (called “jingles and spot announcements” in prior Agreements) shall include those announcements which consist of (1) words accompanying music, (2) words under or over music, or (3) music intended to be performed without words. Theme music for a program shall be excluded from the definition of commercial announcements. This Agreement shall also apply to the employment of persons who fall within the bargaining unit classifications set forth in Article II (1) in connection with the recording of music tracks to be used in the production of Internet commercial announcements insofar as the Internet commercial announcement is capable of being used on television or radio in the same form as on the Internet. 4. SUBSIDIARIES AND CONTROLLING INTERESTS The Employer’s obligations under this Agreement shall also be binding upon (1) its subsidiaries, (2) any interest which controls it, and (3) subsidiaries of any interest which controls it, to the extent that any of these makes or deals with commercial announcements covered by this Agreement. The Employer, any interest which controls it, and the subsidiaries of either shall be Printing 08/10/06 1 TELEVISION AND RADIO COMMERCIAL ANNOUNCEMENTS AGREEMENT OCTOBER 17, 2004 – OCTOBER 16, 2007 jointly and severally liable with respect to the Employer’s obligations arising or due under this Agreement. An interest which owns, directly or indirectly, at least 10% of any class of stock in the Employer shall conclusively be deemed to control the Employer. A corporation shall conclusively be deemed a subsidiary of any person, firm or corporation which, directly or indirectly, owns at least 10% of any class of its stock. 5. NON-TRANSFERABILITY This Agreement shall be personal to the Employer and shall not be transferable or assignable by operation of law or otherwise without the written consent of the Federation. Without such consent, the Employer shall not transfer or assign any individual contract or part thereof for the performance of services of any member of the Federation or any other member of the bargaining unit or give anyone else control over such contract or such services. If the foregoing is violated and services are thereafter performed by such members of the Federation or other person, or if the transferee or assignee does any act which the Employer is permitted to do under this Agreement, the obligations and duties imposed by this Agreement shall be binding upon the transferee or assignee. 6. TERMINATION With respect to any individual Employer, the Federation shall have the right, at its option, to terminate this Agreement at any time after a transfer of any interest which controls that Employer or in the event that such Employer or any interest which controls it-or any subsidiary of either- makes or deals with commercial announcements covered by this Agreement without having in effect a collective agreement with the Federation covering the same. This Section shall apply only when the signatory Employer and the entity making or dealing with the commercial announcements covered by this Agreement constitute a single employer or joint employers. 7. OUTSTANDING CLAIMS The Employer represents that there does not exist against it any claim of any kind arising out of musical services, and that if any valid claim is found to exist, the Employer shall satisfy the same. 8. WAIVERS No conduct or failure to act—with or without knowledge by the Federation—other than a statement in writing signed by a duly authorized officer thereof shall constitute a waiver by it of any provision of this Agreement. 9. APPLICABLE LAWS With respect to services rendered in the United States, this Agreement shall be construed and applied according to the laws of the State of New York and any action against the Federation shall be brought only in courts located in New York County. With respect to services rendered in Canada, this Agreement shall be construed and applied according to the laws of the Province of Ontario and any action against the Federation shall be brought only in courts located in the County of York. Printing 08/10/06 2 TELEVISION AND RADIO COMMERCIAL ANNOUNCEMENTS AGREEMENT OCTOBER 17, 2004 – OCTOBER 16, 2007 10. CAPTIONS All headings are for convenience purposes only and shall not be construed to modify or amend any provisions or otherwise be part of this Agreement. Printing 08/10/06 3 TELEVISION AND RADIO COMMERCIAL ANNOUNCEMENTS AGREEMENT OCTOBER 17, 2004 – OCTOBER 16, 2007 ARTICLE II: RELATIONSHIP OF THE PARTIES 1. RECOGNITION The Employer recognizes the Federation as the exclusive bargaining representative for those of its employees working in connection with the making of commercial announcements who are included in a bargaining unit (“Musicians”) consisting of instrumentalists, leaders, contractors, conductors, arrangers, orchestrators, music proofreaders, librarians, copyists, sideline musicians and any person who, in exercising musical skills, utilizes a synthesizer or other electronic device to produce music. 2. BARGAINING UNIT WORK The Employer shall employ only Musicians for the rendition of musical services for all commercial announcements using live music made in the United States and Canada. The Employer shall not record music tracks outside the United States and Canada for the primary purpose of avoiding employment under this Agreement. 3. UNION SECURITY To the extent permitted by applicable law, any Musicians performing services in the United States who are members of the Federation on the date of signing or the effective date of this Agreement, or on the date of their first employment—whichever is later shall be continued in their employment by the Employer only so long as they continue their membership in good standing in the Federation. All other Musicians performing services in the United States shall become and continue to be members in good standing of the Federation as a condition of their employment no later than the 30th day following the commencement of their employment or the effective date of this Agreement, whichever is later. To the extent permitted by applicable law, only the services of members in good standing of the Federation shall be used for the performance of any bargaining unit work in Canada. 4. BYLAWS All present provisions of the Bylaws, rules and regulations of the Federation are made part of this Agreement as though fully set forth herein to the extent to which their inclusion and enforcement as part of this Agreement are not prohibited by any applicable law. No changes in the Federation’s Bylaws, rules and regulations which may be made during the term of this Agreement shall be effective to contravene any of the provisions hereof. The Employer acknowledges its responsibility to be fully acquainted, now and for the duration of this Agreement, with the present contents of the Federation’s Bylaws, rules and regulations. 5. CONFLICT OF DUTIES To the extent permitted by applicable law, nothing in this Agreement shall ever be construed so as to interfere with any obligation which Musicians who are members of the Federation may owe to the Federation as members thereof. Printing 08/10/06 4 TELEVISION AND RADIO COMMERCIAL ANNOUNCEMENTS AGREEMENT OCTOBER 17, 2004 – OCTOBER 16, 2007 6. PRIMARY LABOR DISPUTES All Musicians covered by this Agreement shall be free to suspend or terminate their services by reason of any strike, ban or unfair list of the Federation and shall be free to accept and engage in other employment of the same or similar character, or otherwise, for other employers or persons, firms or corporations without any restraint, hindrance, penalty, obligation or liability whatever, any other provisions of this Agreement to the contrary notwithstanding. It shall not be a violation of this Agreement and it shall not be cause for disciplinary action in the event a Musician refuses to go through or work behind any primary picket line of the Federation, including such primary picket line at the Employer’s place of business or at places of business to which Musicians are sent to perform by the Employer. 7. RIGHT OF ACCESS A duly authorized business representative of the Federation and/or the Federation Local in the jurisdiction of which services are rendered shall, upon presentation of proper identification to the Employer, be granted access to the studio or other place where services are being performed hereunder. Each shall be permitted to visit during working hours that studio or other place where services are being performed hereunder for the proper conduct of the business of the Federation or of such Local, including grievance investigation and processing. 8. NON-DISCRIMINATION The parties mutually reaffirm their policy of non-discrimination. The Employer reaffirms its policy that no employee shall be discriminated against in employment hereunder, because of race, color, creed, sex, national origin, or age provided the employee is qualified and has the physical ability to perform the work required thereunder. The Federation reaffirms its policy of non-discrimination with respect to admission to membership and rights of membership. The Employer shall annually advise all leaders, contractors, and any of its supervisory personnel involved in the hiring of musicians of the contents of this Section. 9. EMPLOYER’S OBLIGATIONS For services rendered under this Agreement, the Employer shall pay at least the minimum rates of pay set forth herein and shall fully and faithfully perform and observe all other terms and conditions set forth in this Agreement and in any individual agreements with the persons performing such services. The Employer shall not require, request, induce, or in any manner attempt to influence any Musician to play, perform, or render services in a manner contrary to this Agreement. 10. FEDERATION’S OBLIGATIONS The Federation shall exercise full authority in order to assure that its Locals and members do nothing in derogation of the terms and intent of this Agreement. 11. UNAUTHORIZED PRODUCTION The Employer shall not record or aid or assist in the recording of any music for use in a commercial announcement to be produced by any other person, firm or corporation unless authorized in writing by the Federation. The Employer shall not require or permit any Musician Printing 08/10/06 5 TELEVISION AND RADIO COMMERCIAL ANNOUNCEMENTS AGREEMENT OCTOBER 17, 2004 – OCTOBER 16, 2007 in its employ to record a music sound track for any purpose which is not authorized herein or in another written agreement with the Federation. No music sound track recorded under this Agreement shall be used in any way which violates the terms of this Agreement. 12. RIGHT TO INFORMATION Upon request by the Federation, the Employer shall promptly furnish it with a copy of any commercial announcement owned, produced, distributed, used or the use of which has been permitted by the Employer. If the Employer’s right to the use of a commercial announcement and/or music track has been purchased or otherwise acquired by the Employer, a copy of the contract under which such right was acquired shall also be furnished to the Federation, provided that the employer shall have the right to delete information of a proprietary nature from the relevant document(s). 13. RIGHT TO AUDIT The Federation shall have the right from time to time, upon reasonable notice, without limitation to the duration of this Agreement and at all reasonable times during business hours, to have the Federation’s duly authorized agent(s) examine and audit the records and accounts of any party to this Agreement concerning all transactions which are or legitimately may be subject to payments under this Agreement to ascertain which sums, if any, may be due and to verify the accuracy of any statement made by any party pursuant hereto. All necessary facilities shall be made available to such authorized agent(s) to enable them to make such examination and audit and to copy and make extracts from said records. 14. INDUSTRY-FEDERATION COMMITTEE The parties to this Agreement shall maintain a Joint Industry-Federation Committee which shall review problems which may arise under this Agreement and recommend solutions. The Committee shall also explore matters of common interest including global commercial announcements. Printing 08/10/06 6