Variety radio directory (1940)

ASCAP STATION LICENSE— Continued If as a result of such change, LICENSEE shall be re-classified from Group "1" to Group "2", then LICENSEE shall pay a sustaining fee of $ If such re-classification shall be from Group "3" to Group "2", there shall be a decrease of 25% in the sustaining fee theretofore paid. If as a result of such change, LICENSEE shall be re-classified from Group "1" to Group "3", then LICENSEE shall pay a sustaining fee of $ If such reclassification shall be from Group "2" to Group "3", there shall be an increase of 33V3% in the sustaining fee theretofore paid. In case of re-classification of LICENSEE into Group "2" or Group "3", when the gross amount paid to LICENSEE for the use of its broadcasting facilities (on which LICENSEE has made the percentage payments to SOCIETY) shall equal the sums paid to LICENSEE during the year immediately preceding such re-classification, no further payments shall be made by LICENSEE to SOCIETY on so much of the next gross sums, the re-classified percentage on which shall equal the sustaining fee required to be paid under such reclassification. However, on all sums in excess thereof the percentage payable by LICENSEE shall be paid to SOCIETY. SECTION C. Anything in the foregoing notwithstanding and in addition thereto whether or not there has been any change in classification from one Group to another, if in any year there shall be a material increase or decrease in LICENSEE'S operating power, number of hours per day, coverage, or a material change in the time when the broadcast take place or in frequency, then LICENSEE'S sustaining fee shall be changed to conform to that of stations in the same classification, that shall generally be comparable to LICENSEE in operating power, number of hours per day, time when broadcasts take place, location, frequency and coverage, such change to be effective upon the commencement of the next year of the term of this agreement. SUBDIVISION V. (a) "Broadcasting." as used in this agreement, does not include transmission by means of television or any other method of transmitting sound in synchronized relationship or simultaneously with visual images or for the purpose of being received or reproduced in connection with visual images. (b) "Broadcasting facilities," as used in this agreement, shall include all personnel regularly employed in the operation of the station and all services of any nature whatsoever contracted for and used by the station in the conduct of its business. "Personnel" shall include, in addition to all persons associated in any manner with the operation of the station, all artists such as dramatic actors, actresses, singers and musicians, whether separate or in group or in orchestra or band form. "Station" shall include the studio described in Article 5, subdivision (b). "Services" shall include service of every nature, and without limiting the generality of the foregoing, the same shall include wire service and electrical transcriptions. The cost of all personnel and services shall not be deductible from the gross amounts paid for the use of the station's broadcasting facilities. The foregoing shall apply whether any such personnel or services are employed or furnished directly by LICENSEE'S Station or where the same are furnished to LICENSEE'S Station by any party, person, firm or corporation directly or indirectly controlled by or a subsidiary of or affiliated with the station or LICENSEE. However, if any dramatic actors, actresses, singers and other artists or musicians, whether separate or in group or in orchestra or band form, are furnished by the station to a sponsor (i.e.. the advertiser) pursuant to an express written contract therefor, and any such person or group is not regularly employed in the operation of the station but is actually engaged by the station for any such sponsor or for a specific program and is actually paid separately therefor and provision for the charge for furnishing the same has been separately added to and included in the charge made to the sponsor by the station, then and in such event LICENSEE shall have the right to deduct the actual bona fide direct cost thereof to it from the gross amount paid for the use of its broadcasting facilities provided that in no event shall the amount allocated as the payment for broadcasting facilities be less than the highest rate charged for a similar given period of time over LICENSEE'S Station. (c) "Gross amount paid for the use of its broadcasting facilities," as used in this agreement, shall include all payments made (whether in money or in any other form) by the sponsor of each program (i.e. the advertiser) for the privilege of using LICENSEE'S broadcasting facilities. All gross payments by each such sponsor shall be applicable to the above per 233