THE FOLLOWING LICENSE FEE RATES ARE PROVIDED FOR GENEREL INFORMATIONAL PURPOSES
APPLICABLE LICENSE FEE RATES WILL BE DETERMINED FOLLOWING REVIEW OF LICENSEE’S ACTUAL OR PLANNED SERVICES

ACUM – INTERNET LICENSE AGREEMENT – GENEREAL LICENSE FEE RATES APPENDIX

1. DEFINITIONS
In this Appendix, the terms below will have the meaning appearing along-side them (other terms are as defined within the License Agreement) –

1.1 “Album” – a digital file containing several Records.
1.2 “Play” – the transmission of a Production, or any part thereof, by wire or wireless means, that enables a single user to listen to the Production once, or to watch it, through the Service’s systems.
1.3 “Children-oriented Content” – content primarily intended to infants and/or children.
1.4 “Chords“ – three or more musical tones played simultaneously.
1.5 “Download“ –delivery from the Service to a user of a digital file embodying a Work from the ACUM Repertoire, which the user may than copy to and render from his or her device.
1.6 “Income“– any revenue generated by Licensee or any third party in connection with the use of Works from the ACUM Repertoire in the Services, alone or together with other content, including any fees attributed to Plays of such Works and including (but not limited to) any income that is attributed to users’ fees (including subscription fees) and/or advertisements in the Services.
1.7 “Israeli Work“ – a Work as defined in the Agreement, created by individuals who are all members of ACUM.
1.8 “Musical Production“ – a Production that embodies a Work from the ACUM Repertoire, including songs, video clips and live performances of a Work or any part thereof.
1.9 “Musical Service“ – a Service which is primarily designated to enable Plays or Downloads of Musical Productions, including webcasting.
1.10 “Notes“ – any graphic representation of tunes.
1.11 “Other Service” – a Service which is neither a Musical Service, nor a Productions Service, including (but not limited to) news content services.
1.12 “Production“ – any audio or audio-visual content containing at least one Work from the ACUM Repertoire, including podcasts.
1.13 “Productions Service” – a Service which is primarily designated to enable Plays or Downloads of any Productions other than Musical Productions, such as general entertainment content.
1.14 “Record“ – a digital file originally produced and published by Licensee or any third party on CD or other media, following a separate license from ACUM or other competent licensor.
1.15 “Simulcasting”– Play of content via the Service, simultaneously with the original broadcast by a television or radio station (be it a terrestrial, satellite or online broadcast), subject do delays deriving from technological limitations – provided that Licensee does not initiate, broadcast, manage, provide content to or control the original broadcast (unless Licensee has obtained in advance a written license from ACUM for the original broadcast).
1.16 “Streaming“ – a digital format permitting listening to a digital audio file and/or viewing an audio-visual file together with sending such from a server computer to the user, without any permanent copy of the Work being created on the User’s device.
1.17 “Streaming on Demand” – making available a Work/Production in a Streaming format, permitting the user to choose a Work/Production and listen to it and/or view it at the time and place the User so chooses..
1.18 “Visits“ – a sequence of requests made by a particular user interacting with the Service’s website, application or any other platform enabling the Service, which is terminated when the user leaves the Service, or after a defined period of inactivity within the Service. The number of Visits will be calculated as the accumulative number of Visits to the Service’s website, application or any other platform enabling the Service.
2. RATES FOR STREAMING AND STREAMING ON DEMAND SERVICES

2.1 License fee rates for Musical Services

Streaming on Demand: 12.5% of the Income from the Service, but no less than 0.4 Agurot [ILS 0.004] for any Play of a Work which is included in a Musical Production. If such Musical Service also includes non-musical Productions, than the minimum fee would be either 0.025 Agurot [ILS 0.00025] for each minute of Play or any portion thereof, or (if Licensee so chooses and notifies ACUM in writing and upon the execution of the License Agreement) 0.3 Agurot [ILS 0.003] for each Play of a Production.

Streaming: 10% of the Income from the Service, but no less than 0.32 Agurot [ILS 0.0032] for any Play of a Work which is included in a Musical Production. The license fee rates for Streaming Services which are not primarily designated to Play Musical Productions, are 2.5% of the Income from such Service, but no less than 0.32 Agurot [ILS 0.0032] for any Play of a Work included in a Musical Production.

The minimal fee to be paid for a Musical Service that includes a permanent or temporary sponsorship for a product, a service, or a commercial entity, will be five times (X 5) the aforementioned minimal fees for Streaming and Streaming On Demand Services.

2.2 License fee rates for Productions Services (which also enable Download of non-musical Productions)

3.125% of the Income from the Service, but no less than the following minimal fees in consideration for each Play or Download:

* Non-musical Production – 0.025 Agurot [ILS 0.00025] for each minute of Play or any part thereof, or (if Licensee so chooses and notifies ACUM in writing and upon the execution of the License Agreement) 0.3 Agurot [ILS 0.003] for each Play or Download of a Production.

* If the Productions Service also includes Musical Productions, then the minimal fee for the Play of such Musical Productions would be 0.4 Agurot [ILS 0.004] for each Play of a Work that is included in the Musical Production.

2.3 License fee rates for Other Services (which also enable Download of non-musical Productions)

* For each Play of a Musical Production – 0.6 Agurot [ILS 0.006] in consideration for each Work that is included in the Musical Production.

* For each Play of a non-musical Production – 0.0375 Agurot [ILS 0.000375] for each minute of Play or any part thereof, or (if Licensee so chooses and notifies ACUM in writing and upon the execution of the License Agreement) 0.45 Agurot [ILS 0.0045] for each Play or Download of a Production.

2.4 License fee rates for Musical Services for which users pay monthly subscription fees

12.5 % of the income from the Service, but no less than ILS 1.00 for each user per month for a monthly subscription for one platform (Internet or cellular only) and ILS 1.43 for each user per month for a monthly subscription which is cross platform (Internet and cellular).

Free trial options, as well as conditional Download features and family and student plans – are possible. for further information please contact ACUM.

2.5 License fee rates for Simulcasting Services:

Licensee may choose between –

* 5% of the Income from the Service from Simulcasting of radio stations and 2.5% of the Income from the Service from Simulcasting of TV channels (in such case no minimal fees are required); or –

* Any Income from Simulcasting Services will be included in the Income generated from the Musical Services or Production Services of Licensee, according to the nature of such Service (Musical or non-musical Productions), but no minimal fees will be required for the Simulcasting Services.

2.6 License fee rates for Children-oriented Content Services

4% of the Income from the Service, but no less than 0.1 Agurot [ILS 0.001] for any Play of a Work which is included in Children-oriented Content, or (if Licensee so chooses and notifies ACUM in writing and upon the execution of the License) 0.0125 Agurot [ILS 0.000125] for each minute of Play or any part thereof. This license fee rate was determined considering that such Children-oriented Content Services are not Musical Services.

2.7 License fee rates for VOD subscription Services (TV shows / films)

2% of the Income from the Service (without synchronization).

3. RATES FOR DOWNLOAD SERVICES

3.1 License fee rates for Musical Services enabling Download of single files.

12.5% of the Income from the Service but no less than 30 Agurot [ILS 0.3] per Download of each Musical Production.

3.2 License fee rates for Download of Records

12.5% of the Income from the Service but no less than 12.5 Agurot [ILS 0.125] for each Work from the ACUM Repertoire which is included the Downloaded Record or Album.

4. RATES FOR ONLINE TEXTS (LYRICS), NOTES AND CHORDS SERVICES (Israeli Works only)

License fee rates

4.1 For Services enabling online display of texts (lyrics), Notes and Chords – 12.5% of the Income from the Service but no less than the following minimal amount:

Texts and Notes – ILS 4.00 per every 1000 Visits to a certain page.
Texts only – ILS 2.66 per every 1000 Visits.
Notes only – ILS 2.66 per every 1000 Visits.
Chords only – ILS 1.33 per every 1000 Visits.

4.2 For Services enabling online display of texts (lyrics), Notes and Chords, as part of Other Services – the following minimal amount:

Texts and Notes – ILS 6 per every 1000 Visits.
Texts only – ILS 3.99 per every 1000 Visits.
Notes only – ILS 3.99 per every 1000 Visits.
Chords only – ILS 1.99 per every 1000 Visits.

5. FIRST YEAR REDUCTION
Licensee will receive a one-time 20% reduction of all license fees and the minimal amounts for a period of 12 months commencing at the launch date of the Services. Notwithstanding the aforesaid, and in order to encourage legal online Download Services, the above on-time 20% reduction period for Download Services will be for 24 months commencing at the launch date of the Services, regarding the rates specified at section 3 above.

6. FIXED MONTHLY RATES FOR SMALL SCOPE, NON-COMMERCIAL WEB SERVICES

These rates are applicable to online web Services having no more than 50,000 Visits per month, with a yearly income that will not exceed ILS 19,200:

7. GENERAL

7.1 Licensee will pay the applicable license fees for each Service separately.

7.2 VAT according to law must be added to all rates, if applicable.