Net Fees
means the dollar amount, which remains after deducting from the Gross Fees, all charges and fees paid to arms-length third party agents and to providers of technical procedures or enhancements (“Third Party Fees”). These third party fees may include, by way of example only, security features, audio encoding, compression/decompression technologies, watermarking, tracking technologies, and digital rights management technologies, and any taxes, duties, fees, public charges, or withholdings imposed on the Gross Fees payable under such legislation as required by any duly appointed collective, society or governmental agency. FOR EXAMPLE: The following example is for demonstration purposes only, to clarify the revenue sharing formula as outlined in Section 7(a). It is not intended to necessarily represent a typical transaction in terms of the stated nominal dollar amounts involved. Assume: The dBc issues a license, and receives payment of $1000.00, inclusive of all charges. Third party costs total $17.00 Then: Gross Fees: $ 1000.00 Less third party costs: $ 17.00 Net Fees: $ 983.00 Company’s percentage (50% of $983.00) $ 491.50 The dBc’s percentage (50% of $983.00) $ 491.50 Total Net Fees $ 983.00
