Accounting Conditions 2018 Netherlands

STEMRA/BIEM Valuta: €uro Minimum Licentie Adjustment local PPD Effective Rate Maximum Works / Normal Club Budget Bargain Normal Club Normal Club Type Code Duration Fragments Sales Sales Sales Sales Rate Deduction Sales Sales Sales Sales VINYL Single S 8 2-6 0,13 0,13 0,08 0,03 11% 10% 12% 22,22% 8,712% 7,700% EP EP 16 4-12 0,16 0,16 0,09 0,03 11% 10% 12% 22,22% 8,712% 7,700% Maxi Single Remix RMS 16 4-12 0,16 0,16 0,09 0,03 11% 10% 12% 22,22% 8,712% 7,700% Disco Single DS 18,5 4-12 0,22 0,22 0,13 0,05 11% 10% 12% 22,22% 8,712% 7,700% Disco Single Remix RDS 18,5 4-12 0,22 0,22 0,13 0,05 11% 10% 12% 22,22% 8,712% 7,700% EP EPM 20 6-18 0,23 0,23 0,13 0,05 11% 10% 12% 22,22% 8,712% 7,700% mini-LP MLP 30 10-24 0,30 0,30 0,17 0,06 11% 10% 12% 22,22% 8,712% 7,700% LP album LP1 60 16-28 0,34 0,34 0,19 0,07 11% 10% 12% 22,22% 8,712% 7,700% LP compilation LP2 60 20-33 0,34 0,34 0,19 0,07 11% 10% 12% 22,22% 8,712% 7,700% LP = CD LP3 80 20-40 0,34 0,34 0,19 0,07 11% 10% 12% 22,22% 8,712% 7,700% LP comp. = CD comp LP4 80 24-48 0,34 0,34 0,19 0,07 11% 10% 12% 22,22% 8,712% 7,700% COMPACT DISC CD single SCD 12 2-6 0,13 0,13 0,08 0,03 11% 10% 12% 22,22% 8,712% 7,700% CD maxi-single CDS 23 5-12 0,20 0,20 0,12 0,04 11% 10% 12% 22,22% 8,712% 7,700% CD maxi-single remix RCD 23 5-12 0,20 0,20 0,12 0,04 11% 10% 12% 22,22% 8,712% 7,700% CD album CD 80 20-40 0,51 0,51 0,29 0,10 11% 10% 12% 22,22% 8,712% 7,700% CD compilation CD2 80 24-48 0,51 0,51 0,29 0,10 11% 10% 12% 22,22% 8,712% 7,700% Super Audio CD (SACD) SA 80 20-40 0,51 0,51 0,29 0,10 11% 10% 12% 22,22% 8,712% 7,700% Super Audio CD comp. SA2 80 24-48 0,51 0,51 0,29 0,10 11% 10% 12% 22,22% 8,712% 7,700% CD-EXTRA CD Extra single 2 tracks CES 12 2-6 0,13 0,13 0,08 0,03 11% 10% 12% 22,22% 8,712% 7,700% CD Extra single CXS 23 5-12 0,20 0,20 0,12 0,04 11% 10% 12% 22,22% 8,712% 7,700% CD Extra maxi single CXM 23 5-12 0,20 0,20 0,12 0,04 11% 10% 12% 22,22% 8,712% 7,700% CD Extra maxi remix RCE 23 5-12 0,20 0,20 0,12 0,04 11% 10% 12% 22,22% 8,712% 7,700% CD Extra EP CEP 30 10-24 0,30 0,30 0,17 0,06 11% 10% 12% 22,22% 8,712% 7,700% CD Extra album CE 80 20-40 0,51 0,51 0,29 0,10 11% 10% 12% 22,22% 8,712% 7,700% CD Extra compilation CE2 80 24-48 0,51 0,51 0,29 0,10 11% 10% 12% 22,22% 8,712% 7,700% MUSICASSETTE MC single SMC 8 2-6 0,13 0,13 0,08 0,03 11% 10% 12% 22,22% 8,712% 7,700% MC EP EMC 16 4-12 0,16 0,16 0,09 0,03 11% 10% 12% 22,22% 8,712% 7,700% MC maxi single = CDS SM2 23 5-12 0,20 0,20 0,12 0,04 11% 10% 12% 22,22% 8,712% 7,700% MC (mini) MCP 30 10-24 0,22 0,22 0,13 0,05 11% 10% 12% 22,22% 8,712% 7,700% MC album MC 60 16-28 0,34 0,34 0,19 0,07 11% 10% 12% 22,22% 8,712% 7,700% MC compilation MC2 60 20-33 0,34 0,34 0,19 0,07 11% 10% 12% 22,22% 8,712% 7,700% MC = CD MC3 80 20-40 0,34 0,34 0,19 0,07 11% 10% 12% 22,22% 8,712% 7,700% MC compilation = CD2 MC4 80 24-48 0,34 0,34 0,19 0,07 11% 10% 12% 22,22% 8,712% 7,700% MC extended play (2LP) DMC 120 32-56 0,53 0,53 0,30 0,10 11% 10% 12% 22,22% 8,712% 7,700% MINIDISC MiniDisc single & maxi MDS 23 5-12 0,20 0,20 0,12 0,04 11% 10% 12% 22,22% 8,712% 7,700% MiniDisc maxi remix MDR 23 5-12 0,20 0,20 0,12 0,04 11% 10% 12% 22,22% 8,712% 7,700% MiniDisc EP MDP 30 10-24 0,30 0,30 0,17 0,06 11% 10% 12% 22,22% 8,712% 7,700% MiniDisc album MD 80 20-40 0,51 0,51 0,29 0,10 11% 10% 12% 22,22% 8,712% 7,700% MiniDisc compilation MD2 80 24-48 0,51 0,51 0,29 0,10 11% 10% 12% 22,22% 8,712% 7,700% DIGITAL COMPACT CASSETTE DCC DC1 80 20-40 0,51 0,51 0,29 0,10 11% 10% 12% 22,22% 8,712% 7,700% DCC compilation DC2 80 24-48 0,51 0,51 0,29 0,10 11% 10% 12% 22,22% 8,712% 7,700% DVD-Audio DVD-Audio album (audio only) DV1 80 20-40 0,51 0,51 0,29 0,10 11% 10% 12% 22,22% 8,712% 7,700% DVD-Audio compilation (audio only) DV1 80 24-48 0,51 0,51 0,29 0,10 11% 10% 12% 22,22% 8,712% 7,700% BLU-RAY DISC Audio Blu-ray disc Audio single (audio only) BRS 23 5-12 0,20 0,20 0,12 0,04 11% 10% 12% 22,22% 8,712% 7,700% Blu-ray disc Audio maxi-single (audio only) BRM 23 5-12 0,20 0,20 0,12 0,04 11% 10% 12% 22,22% 8,712% 7,700% Blu-ray disc Audio album (audio only) BRA 80 20-40 0,51 0,51 0,29 0,10 11% 10% 12% 22,22% 8,712% 7,700% Blu-ray disc Audio compilation (audio only) BRC 80 24-48 0,51 0,51 0,29 0,10 11% 10% 12% 22,22% 8,712% 7,700%

Centrale Regelingen Stemra 01-07-2018 1-3 Accounting Conditions 2018 Netherlands

STEMRA/BIEM Valuta: €uro

REMARKS

TV/Radio items: An extra deduction of 8% off the PPD (including TV ticket, if any) is applicable to TV-items. A minimum of € 10,000.- net invoiced Media Campaign including and/or individual online advertisement costs is required. Discount is only applicable from the first day of the month in which the campaign starts, until 90 days after this start, with a maximum of 2 accounting periods.

An extra promotion deduction of 750 units is applicable to radio-items.

In case of a combined campaign (Radio + TV) only one of these two deductions is applicable and to be decided by producer.

Promotion allowances: A fixed promotion deduction of 125 units per release is applicable to disco singles (vinyl) (codes EP, RMS, DS and RDS). A promotion deduction of 10% with a maximum of 250 units per release is applicable to LP’s (vinyl) (codes LP1, LP2, LP3 and LP4). A maximum promotion deduction of 100 units per release is applicable to CD-singles. A fixed promotion deduction of 250 units per release is applicable to CD’s (including the comparable SACD, DCC and/or MiniDisc).

Promotional sound carriers only containing musical fragments with a duration less than 1 min’ 45 from the producer’s catalogue exclusively will be exempted from the mechanical reproduction rights fee.

Promotional sound carriers containing complete works from the producer’s catalogue exclusively are charged with 70% of the minimum licence of the type of sound carrier concerned. In case of the recording being older than 1 year, 70% of the budget minimum licence of the type of sound carrier concerned is charged. Combinations of old/new repertoire are accounted accordingly (i.e. a combination of the budget- and normal licence as basis).

For the above mentioned promotional sound carriers the following conditions are applicable: Sound carriers are distributed free of charge with “Not for sale – For promotional use only" printed on the sound carrier, sound carriers contain exclusively repertoire from the producer’s own catalogue. A sample copy of the concerning sound carrier is to be supplied to STEMRA.

When using fragments STEMRA expects the producer to have obtained approval of the local (sub) publisher for the fragmentaric use of the concerning works (see Art. 8 of the ‘National Agreement STEMRA/NVPI’). If this approval is not obtained the above mentioned exemption is not applicable.

Prior to each promotional release a written request has to be filed with STEMRA. STEMRA will confirm receipt in writing. This confirmation is limited to the requested number of copies. Other conditions or discounts are not applicable. In all cases STEMRA needs to be provided with a sample copy of the sound carrier concerned. In all cases in which a tariff has been agreed upon the sound carrier concerned has to be reported in the periodical sales reports under ‘Special Sales’ (sales channel ‘S’).

Retentions: Under the conditions stated in art. V paragraphs (16) till (18) of the Standard Agreement, 25% of the sales, in each accounting period, can be accounted for in due time. For CD-singles the retentions percentage is 50%.

Exception: For TV-compilations the retention percentage is 50%. For Single-artist TV-items the retention percentage is also 50%.

Budget: Budget is applicable on sound carriers containing recordings originally released more than one year ago and which are re-released at least 35% below the original PPD.

Club: Club sales tariffs are exclusively applicable under the following conditions: a club has members, the club publishes a catalogue periodically, clubmembers have a periodic purchase obligation, a club sells exclusively to its members, the club orders sound- and audiovisual products from more than one producer.

DVD-Audio (audio only): The same conditions as CD-album apply.

Bargain sales (Sell out) and Bargain sales/Sell out: Rate 10% of the invoiced price ex. VAT. For Bargain sales a minimum license of 20% of the normal minimum license is applicable. The Bargain sales category is applicable on soundcarriers which have been released at other: least more than one year ago in a higher price category and are deleted from the catalogue after sell out.

Where a carrier includes more than one recording of the same work/fragment, such recording shall be regarded as one work or fragment as the case may be. For the purposes of Article VI (5) - (5quarter), any excess in playing time of such carrier implies payment of an additional royalty.

This survey is inseparable part of the BIEM Standard Agreement and the National Agreement STEMRA/NVPI.

STEMRA’s conditions regarding soundcarriers containing music in the MP3 format is extended until 31-12-2018, unless on an international level an agreement is concluded regarding soundcarriers containing music in the MP3 format. STEMRA’s conditions regarding Music-DVD’s is extended until 31-12-2018, unless on an international level an agreement is concluded regarding Music-DVD’s.

Centrale Regelingen Stemra 01-07-2018 2-3 Accounting Conditions 2018 Netherlands

STEMRA/BIEM Valuta: €uro

Minimum for box sets Netherlands

Minimum per Minimum Budget per Carriers boxset boxset 2 € 0,79 € 0,51 3 € 0,85 € 0,55 4 € 0,93 € 0,61 5 € 1,02 € 0,66 6 € 1,10 € 0,72

Each additional disk subject to an additional royalty of € 0,18 € 0,12

Centrale Regelingen Stemra 01-07-2018 3-3