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SAMRO PERFORMING RIGHTS ROYALTY DISTRIBUTION RULES Table of Contents 1. DEFINITIONS ............................................................................................................................................. 2 2. OBJECTIVE ............................................................................................................................................... 3 3. PERFORMING RIGHTS ADMINISTERED BY SAMRO ............................................................................ 3 4. DISTRIBUTION CATEGORIES AND SUB-CATEGORIES....................................................................... 3 a. RADIO & GENERAL ..................................................................................................................................... 3 b. LIVE .............................................................................................................................................................. 4 c. TELEVISION ................................................................................................................................................. 4 d. FILM .............................................................................................................................................................. 4 e. FOREIGN ..................................................................................................................................................... 4 f. MOBILE & INTERNET TRANSMISSION (MIT)............................................................................................ 4 5. PAYABLE NET DISTRIBUTABLE REVENUE .......................................................................................... 4 6. PARTICIPATING WORKS OF MUSIC ...................................................................................................... 5 a. RADIO BROADCASTS................................................................................................................................. 6 b. TELEVISION BROADCASTS....................................................................................................................... 6 c. PUBLIC PERFORMANCE ............................................................................................................................ 6 d. FILM .............................................................................................................................................................. 7 e. FOREIGN ..................................................................................................................................................... 7 f. MOBILE & INTERNET TRANSMISSION (MIT)............................................................................................ 7 g. EXCEPTIONS: .............................................................................................................................................. 8 7. AFFILIATED RIGHTS HOLDERS ............................................................................................................. 8 8. DOCUMENTED DIVISION OF LICENCE REVENUE ................................................................................ 9 a. ARRANGERS ............................................................................................................................................. 12 b. SUB AUTHORS .......................................................................................................................................... 12 c. PUBLISHER SHARE .................................................................................................................................. 12 d. SUB PUBLISHER SHARE.......................................................................................................................... 12 e. PROPRIETOR ............................................................................................................................................ 12 9. COMPUTED ROYALTY DISTRIBUTION ALLOCATIONS ..................................................................... 13 10. REVENUE POINT FACTOR .................................................................................................................... 13 11. NOMINATION ........................................................................................................................................... 13 12. UNDOCUMENTED WORKS OF MUSIC ................................................................................................. 13 13. POST ROYALTY DISTRIBUTION ADJUSTMENTS ............................................................................... 14 14. RULE AMENDMENTS ............................................................................................................................. 14 15. ANNEXURE I ............................................................................................................................................ 15

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SAMRO PERFORMING RIGHTS ROYALTY DISTRIBUTION RULES

Table of Contents 1. DEFINITIONS ............................................................................................................................................. 2

2. OBJECTIVE ............................................................................................................................................... 3

3. PERFORMING RIGHTS ADMINISTERED BY SAMRO ............................................................................ 3

4. DISTRIBUTION CATEGORIES AND SUB-CATEGORIES ....................................................................... 3

a. RADIO & GENERAL ..................................................................................................................................... 3

b. LIVE .............................................................................................................................................................. 4

c. TELEVISION ................................................................................................................................................. 4

d. FILM .............................................................................................................................................................. 4

e. FOREIGN ..................................................................................................................................................... 4

f. MOBILE & INTERNET TRANSMISSION (MIT)............................................................................................ 4

5. PAYABLE NET DISTRIBUTABLE REVENUE .......................................................................................... 4

6. PARTICIPATING WORKS OF MUSIC ...................................................................................................... 5

a. RADIO BROADCASTS ................................................................................................................................. 6

b. TELEVISION BROADCASTS ....................................................................................................................... 6

c. PUBLIC PERFORMANCE ............................................................................................................................ 6

d. FILM .............................................................................................................................................................. 7

e. FOREIGN ..................................................................................................................................................... 7

f. MOBILE & INTERNET TRANSMISSION (MIT)............................................................................................ 7

g. EXCEPTIONS: .............................................................................................................................................. 8

7. AFFILIATED RIGHTS HOLDERS ............................................................................................................. 8

8. DOCUMENTED DIVISION OF LICENCE REVENUE ................................................................................ 9

a. ARRANGERS ............................................................................................................................................. 12

b. SUB AUTHORS .......................................................................................................................................... 12

c. PUBLISHER SHARE .................................................................................................................................. 12

d. SUB PUBLISHER SHARE.......................................................................................................................... 12

e. PROPRIETOR ............................................................................................................................................ 12

9. COMPUTED ROYALTY DISTRIBUTION ALLOCATIONS ..................................................................... 13

10. REVENUE POINT FACTOR .................................................................................................................... 13

11. NOMINATION ........................................................................................................................................... 13

12. UNDOCUMENTED WORKS OF MUSIC ................................................................................................. 13

13. POST ROYALTY DISTRIBUTION ADJUSTMENTS ............................................................................... 14

14. RULE AMENDMENTS ............................................................................................................................. 14

15. ANNEXURE I ............................................................................................................................................ 15

SAMRO PERFORMING RIGHTS ROYALTY DISTRIBUTION RULES Page 2

1. DEFINITIONS

Except where a different definition is provided for a term in these Performing Rights Royalty Distribution Rules, the words defined in SAMRO’s Memorandum of Incorporation (“MOI”) shall have the same defined meaning when used in these Performing Rights Royalty Distribution Rules.

In these Performing Rights Royalty Distribution Rules:

Distribution means any Royalty Payment as defined in the MOI in respect of

Performing Rights, which may, be made to Rights Holders out of the Licence Revenue received by SAMRO, after Permitted Royalty Deductions. "Paid" and "Payable" have corresponding meanings. “Distributed” and “Distributable” have corresponding meanings.

Net Distributable shall have the same definition as Net Licensing Revenue in the Revenue MOI.

Rights Holder means the person or legal entity with a share in the performing

right of any Work of Music administered by SAMRO. SAMRO means Southern African Music Rights Organisation NPC. Shares shall have the meaning attributed to the term in the Membership

Rules read with Rule 8. Undocumented Share means the portion of any Work of Music for which SAMRO has

allocated a Royalty Payment, but has unable to identify the relevant rights holder.

Undocumented Royalty means the Royalty Payment amount that is allocated to an

Undocumented Share. VAT Act means Value-Added Tax Act (89 of 1991), as amended or

replaced from time to time. Work(s) shall have the same definition as Work of Music in the MOI in

the context of these rules being the subject of the Performing Rights Administered by SAMRO.

Reference to “Licence Revenue” and “Net Licensing Revenue” shall, unless the contrary is clearly indicated, have the defined meaning in the MOI, but in the context of these Rules will be limited to such Licence Revenue and Net Licensing Revenue attributed to the Administered Performing Rights only. Reference to “these Rules” or to a “Rule” shall, unless clearly indicated, mean these SAMRO Performing Rights Royalty Distribution Rules.

SAMRO PERFORMING RIGHTS ROYALTY DISTRIBUTION RULES Page 3

2. OBJECTIVE

SAMRO Performing Rights Royalty Distributions in the various Distribution categories are aimed at

the equitable attribution and payment of Net Distributable Revenue

to participating Works of Music

and their respective affiliated Rights Holders

in accordance with the documented division of Licence Revenue This is done by way of computed royalty allocations, calculated on a per second basis, so as to represent a fair value of those rights administered by SAMRO, relative to actual performances or usage of musical works and licence fees received.

3. PERFORMING RIGHTS ADMINISTERED BY SAMRO

SAMRO administers, inter alia, those rights as specified in the South African Copyright Act 98 of 1978, section 6 c, d and e. The Act vests the exclusive right in copyright musical works to do or to authorise the doing of any of the following acts in the Republic: a. Performing the work in public; b. Broadcasting the work; c. Causing the work to be transmitted in a diffusion service, unless such service transmits a lawful broadcast, including the work, and is operated by the original broadcaster. In SAMRO’s environment this applies to those rights holders who have so directly or via their affiliated societies granted the administration in their musical works to SAMRO

4. DISTRIBUTION CATEGORIES AND SUB-CATEGORIES

SAMRO has six primary categories of Royalty Distributions namely Radio & General, Live, Television, Film (Cinematographic Film), Foreign Royalties and Mobile & Internet Transmission (MIT). Currently these Royalty Distributions take place at varying intervals per the Distribution plan approved by the Board at its quarterly meetings, but at least annually. These are subdivided into Distribution categories and Distribution sub-categories as follows:-

a. RADIO & GENERAL

a. RADIO i. Public Service ii. Private Services iii. Community Services

b. GENERAL

i. Recorded Music ii. Diffusion Services

SAMRO PERFORMING RIGHTS ROYALTY DISTRIBUTION RULES Page 4

b. LIVE

i. Live Music ii. Shows

c. TELEVISION

i. Public Services ii. Private Service iii. Re-Broadcast Transmissions iv. Diffusion Services

d. FILM

i. Cinemas

e. FOREIGN

i. All categories

f. MOBILE & INTERNET TRANSMISSION (MIT)

i. Ringtone Preview ii. Ring back tones iii. Download Preview iv. Internet radio v. Internet television vi. Video sharing vii. Streaming services

5. PAYABLE NET DISTRIBUTABLE REVENUE

Net Distributable Revenue is determined in accordance with amounts reported in the statutory audited Annual Financial Statements. Total Net Distributable Revenue for the determination of Royalty Distributions in accordance with the computation in clause 9 is determined as follows:-

Gross Licence Revenue less Administration Expenses plus Revenue Add Backs less Social and Cultural Allocations

(in terms of the standard CISAC provision) less Income Tax less or plus Transfers to or from Reserves and Funds.

The Royalty Distributions are exclusive of VAT. However, where a member is a registered VAT vendor and has provided the relevant information and VAT invoices, VAT calculated at the applicable rate, will be paid on the amount of such Distributions.

SAMRO PERFORMING RIGHTS ROYALTY DISTRIBUTION RULES Page 5

The Net Distributable Revenue is apportioned by analysing the revenue into various Distribution categories. These categories include the following:

Distribution categories, e.g. o Television

Distribution sub-categories, e.g. o Public television

Distribution channels, e.g. o SABC 1

The complete list of categories, sub-categories and channels is detailed in annexure I. General public performance licence revenue is apportioned to the appropriate Distribution sub-categories according to surveyed, statistical, historical, or estimated usage patterns.

Net Distributable Revenue for similar genres may be combined into a single collective Distribution sub-category or Distribution channel.

The Licence Revenue within Distribution channels is apportioned according to the following criteria:- a. Primary gross Licence Revenue for the Distribution channel b. The quality and quantity of performance data. Where all information is available at a licensee level, Licence Revenue received is matched to the reported performances of musical works, by the particular licensee where possible. If no Licence Revenue is received, then no Distribution will take place for that particular licensee in respect thereof. If no performances are reported, or where a reasonable financial threshold below which SAMRO judges that the expense of making a Royalty Distribution outweighs the financial benefit of making a Royalty Distribution is not reached, the Net Distributable Amount received from such sources will be allocated to similar sources from which performance returns have been received. All Royalty Distributions to non-South African resident recipients will be subject to the applicable withholding taxes. All other income taxes are for the recipients’ own account.

6. PARTICIPATING WORKS OF MUSIC

a) Participating Works are those copyright Works which have been captured (logged) from performance returns received from licensed music users, performing artists or independent third parties.

b) Works which are identified as being out of copyright (100% DP shares) are normally excluded from participation.

c) All programme usage returns and performance reports received by SAMRO are considered for distributions except in the following cases:

- Performance returns which appear abnormal; and SAMRO reserves the right to take action in respect of potentially fraudulent submissions.

- Where programme returns and usage reports which are incomplete or less than 80% accurate in their reporting, in that they no longer represent a true reflection of the actual Musical Work Performance, broadcast or sound carrier recordings.

- Where programme returns or usage reports have led to documentation queries with SAMRO’s Members or clients, or with Affiliated Societies and which have not been answered in time for the current Distribution. These may be included in a subsequent Distribution.

SAMRO PERFORMING RIGHTS ROYALTY DISTRIBUTION RULES Page 6

- Where programme returns and usage reports are illegible. - Where performance returns are received from community radio stations with

Licence Revenue below a threshold as approved by the Board. Such Distributable Revenue shall be included in revenue of stations with similar genres.

d) Performance returns which are received by SAMRO after the distribution data submission cut-off date, will usually participate in the following distribution of the same Distribution channel.

e) Where usage information is available for the various sub-categories of General, Distributions will be based on the available information. If no information is available, then reference will be made to information provided for radio and television.

f) Performances for which SAMRO has not received Licence Revenue because of statutory or other reasons are excluded from participation, for example unlicensed venues.

g) If a Rights Holder is able to prove within thirty-six months after the completion of a Distribution (as per the statement date) that his Works of Music were performed but were not included in the performance returns received from music users and SAMRO had received Licence Revenue from such music users for the related Distribution Cycle, then Royalty Distributions for such performances will be calculated using the Revenue Unit Factor (see clause 9) applicable to the Distribution in question.

h) Programmes which are known to have been broadcast simultaneously on more than one channel (simulcast) will be included only once in a Distribution, except in those cases where separate Licence Revenue was received for each channel.

i) Works or Shares in dispute and their related Royalty Distributions will not be Paid out until the dispute has been resolved in terms of SAMRO’s Disputes and Counterclaims Policy.

The following participation practices apply in the respective Distribution categories as follows:-

a. RADIO BROADCASTS

i. A systematic sampling method is employed for radio channels that do not furnish their returns in a compatible electronic format.

ii. A full census is used in those broadcast channels that furnish their returns electronically in a compatible format.

iii. All programmes within a broadcast channel or station’s normal programmed audio service participate in the respective Distribution sub-category irrespective of the time of broadcast.

b. TELEVISION BROADCASTS

i. Signature music contained in the form of “Promos”, “Logos”, “Bumpers”, “Stings” etc. participate in channel or station Distribution channels.

ii. A complete census of music in all channels, as reflected on the flighting or broadcast schedules received, participates in the respective Distribution sub-categories.

iii. Musical content within a broadcast channel or station’s normal programmed audio-visual service participates in the respective Distribution sub-category irrespective of the time of broadcast.

c. PUBLIC PERFORMANCE

i. If SAMRO receives Licence Revenue but with no usage returns, then such revenue will be added to other pools which most closely resemble the Works of Music used. If SAMRO receives returns but no Licence Revenue, then no

SAMRO PERFORMING RIGHTS ROYALTY DISTRIBUTION RULES Page 7

Distribution will take place for the performances in question. ii. Music from major concerts or similar shows or events, participate to the

extent of the Net Distributable Revenue from that licence. The proportion of Net Distributable Revenue attributed to the supporting act is currently limited to 10%.

iii. For live and recorded public performances the following rules apply: (a) Public Performance data obtained from Members’ returns, where

practical, participate to the extent of Net Distributable Revenue obtained from the licensed establishments where performances took place. This is subject to the return being verified by the licensed establishment.

(b) In addition to Rule 6(c), also excluded from Distribution calculations are: - Performance returns for live (non-recorded) performances which are

submitted by the Rights Holders without corresponding confirmation of such performances by the organisers of such events, or whenever such performance returns reach SAMRO later than the data submission cut-off date.

- Performance returns which appear abnormal; and SAMRO reserves the right to take action in respect of potentially fraudulent submissions.

- Performance returns which, noticeably, contain frequently the name of individual Rights Holders without factual cause for such occurrences will be excluded from Distribution calculations until their authenticity can be ascertained through relevant proof obtained from the submitter of the returns, the Rights Holder(s) concerned, or the licensed establishment.

d. FILM

i. A complete census of all Works of Music included in reported film soundtracks, participate in this category.

ii. The number of performances per film is weighted to take account of the reported box office income per film.

iii. Works used in commercials participate in this category. iv. Musical content within a film participates in the Distribution category

irrespective of the time of screening.

e. FOREIGN

i. The only calculation performed on foreign income received from Affiliated Societies is the conversion of foreign amounts to the South African Rand at the prevailing foreign exchange rate on the date of receipt of the respective foreign amount.

ii. Where the Foreign Society share allocation differs to the share allocation in SAMRO’s database, the SAMRO share allocation will be used for distribution purposes.

iii. Shares received for non-SAMRO Works of Music and Rights Holders are handled, as per CISAC Fees In Error guidelines.

f. MOBILE & INTERNET TRANSMISSION (MIT)

i. Works will be included where the service provider furnishes its returns electronically in a compatible format.

ii. All Works contained in a service provider’s usage reports participate irrespective of the time of usage and are subject to a minimum of a 1000

SAMRO PERFORMING RIGHTS ROYALTY DISTRIBUTION RULES Page 8

performances.

g. EXCEPTIONS:

Where the costs of a Distribution described in points a. to f. above, are disproportionally higher than the Licence Revenue received, SAMRO may, with the approval of SAMRO’s executive Directors, allocate it to other Licence Revenue streams for this or subsequent Distributions.

7. AFFILIATED RIGHTS HOLDERS

Distribution of royalty allocations will only be made to those rights holders whose rights are administered by virtue of their affiliation to SAMRO or other CISAC affiliated societies, as indicated on the international Interested Parties Index (IPI) at the time of the distribution. Furthermore, only rights holders whose works have been verified as having been performed during the period relating to the distribution, and whose shareholding in the work has been proven via a notification of such shareholding in terms of the SAMRO rules before the commencement of the distribution, will be eligible to participate in the distribution. Royalty allocations pertaining to shares of non-affiliated and unidentified rights holders will be retained as royalty distributions in progress for a limited period, pending their identification or affiliation, after which they will be distributed at the next supplementary distribution, failing which such amounts will be written back to distributable revenue at the end of the financial period in terms of SAMRO’s accounting practices, three years after the time of the original primary distribution. Royalty allocations to Public Domain shares will be written back to distributable revenue. Distributable Revenue allocated to Undocumented Works of Music will be dealt with in accordance with Rule 12.

SAMRO PERFORMING RIGHTS ROYALTY DISTRIBUTION RULES Page 9

8. DOCUMENTED DIVISION OF LICENCE REVENUE

Royalties allocated to participating Works in the distribution will only be distributed to Rights Holders if the Work can be clearly identified and the respective Share split has been appropriately notified and documented. SAMRO’s default standard Share splits are as follows:-

Category Type of Work Rights Holders Fraction %

Manuscript Works of MUSIC 1. Music Only Composer 12/12 100.00%

100.00%

2. Song Composer 6/12 50.00%

Author 6/12 50.00%

100.00%

3. Music Arrangement Composer 10/12 83.33%

Arranger 2/12 16.67%

100.00%

4. Song Arrangement Composer 5/12 41.67%

Author 5/12 41.67%

Arranger 2/12 16.67%

100.00%

5. Song Revised Lyrics Composer 5/12 41.67%

Author 5/12 41.67%

Sub Author 2/12 16.67%

100.00%

6. Song Arrangement Composer 5/12 41.67%

Revised Lyrics Author 5/12 41.67%

Arranger 1/12 8.33%

Sub Author 1/12 8.33%

100.00%

SAMRO PERFORMING RIGHTS ROYALTY DISTRIBUTION RULES Page 10

Category Type of Work Rights Holders Fraction %

Original Published 1. Music Only Composer 8/12 66.67%

Works Publisher 4/12 33.33%

100.00%

2. Song Composer 4/12 33.33%

Author 4/12 33.33%

Publisher 4/12 33.33%

100.00%

3. Music Arrangement Composer 6/12 50.00%

Arranger 2/12 16.67%

Publisher 4/12 33.33%

100.00%

4. Song Arrangement Composer 3/12 25.00%

Author 3/12 25.00%

Arranger 2/12 16.67%

Publisher 4/12 33.33%

100.00%

5. Song Revised Lyrics Composer 3/12 25.00%

Author 3/12 25.00%

Sub Author 2/12 16.67%

Publisher 4/12 33.33%

100.00%

6. Song Arrangement Composer 3/12 25.00%

Revised Lyrics Author 3/12 25.00%

Arranger 1/12 8.33%

Author 1/12 8.33%

Publisher 4/12 33.33%

100.00%

SAMRO PERFORMING RIGHTS ROYALTY DISTRIBUTION RULES Page 11

Category Type of Work Rights Holders Fraction %

Sub Published 1. Music Only Composer 6/12 50.00%

Works Publisher 2/12 16.67%

Sub Publisher 4/12 33.33%

100.00%

2. Song Composer 3/12 25.00%

Author 3/12 25.00%

Publisher 2/12 16.67%

Sub Publisher 4/12 33.33%

100.00%

3. Music Arrangement Composer 4/12 33.33%

Arranger 2/12 16.67%

Publisher 2/12 16.67%

Sub Publisher 4/12 33.33%

100.00%

4. Song Arrangement Composer 2/12 16.67%

Author 2/12 16.67%

Arranger 2/12 16.67%

Publisher 2/12 16.67%

Sub Publisher 4/12 33.33%

100.00%

5. Song Revised Lyrics Composer 2/12 16.67%

Author 2/12 16.67%

Sub Author 2/12 16.67%

Publisher 2/12 16.67%

Sub Publisher 4/12 33.33%

100.00%

6. Song Arrangement Composer 2/12 16.67%

Revised Lyrics Author 2/12 16.67%

Arranger 1/12 8.33%

Sub Author 1/12 8.33%

Publisher 2/12 16.67%

Sub Publisher 4/12 33.33%

100.00%

SAMRO PERFORMING RIGHTS ROYALTY DISTRIBUTION RULES Page 12

Notes:

a. ARRANGERS

Only clearly identifiable arrangements notified to SAMRO by the arranger and authorised by the copyright holder are recognised for Works in copyright. An arranger’s Share for non-copyright Works will be recognised only for those arrangements which are clearly identifiable. Where there is doubt or where it is impossible to establish which version has been used, all Royalty Distributions shall be allocated to the Rights Holders of the original work. The sub-lyricist, arranger or sub-arranger is entitled to receive a share of the Royalty Distributions only if the authorised adaptation and/or arrangement is known to have been used. Arrangements of the South African National Anthem need to have been authorised in writing by the State Herald. While the arranger’s Share in the authorised arrangement of the South African National Anthem will be documented, no royalties will be payable for arrangements in the said Work of Music.

b. SUB AUTHORS

Only those translations or revisions of lyrics authorised by the copyright holder for copyright Works are recognised.

c. PUBLISHER SHARE

The Publisher Share shall normally amount to "4/12" or 33.33% unless otherwise specifically agreed - up to a maximum of “6/12” or 50%.

d. SUB PUBLISHER SHARE

The Sub Publisher Share shall be subject to the agreement between the Publisher and Sub Publisher, but shall not exceed the Share that the Publisher per se has.

Should all Rights Holders agree contractually to a variation of the normal division of fees, the new division will apply subject to (c) above.

e. PROPRIETOR

The categorisation of a Proprietor shall be determined by the Board, with reference to the nature of the interest held by such Proprietor and the categorisation of the person from whom the interest was acquired (i.e. whether the disposing party is an Author or a Publisher, etc.)

SAMRO PERFORMING RIGHTS ROYALTY DISTRIBUTION RULES Page 13

9. COMPUTED ROYALTY DISTRIBUTION ALLOCATIONS

Royalty allocations are computed on a music second basis, in accordance with international

norms and standards established by CISAC. The Net Distributable Revenue for each

Distribution channel is divided by the accumulated music seconds per Distribution channel

to obtain a Revenue Unit Factor (Rand per music second factor) per Distribution channel

and music second. The accumulated seconds for each participating Work of Music in the

Distribution channel, is then multiplied by the relevant Revenue Unit Factor, so as to

compute the Royalty Distribution amount per Work for the relevant Distribution channel.

The resultant Royalty Distribution for each Work is then allocated to each of the accredited

Rights Holders according to their respective Shares in the Work according to the

documented Share split.

10. REVENUE POINT FACTOR

The Revenue Unit Factor (Rand per music second factor) is determined as follows:- Revenue Unit Factor = Net Distributable Revenue per Distribution Channel

Total seconds of music per Distribution Channel

11. NOMINATION

Any Rights Holder may by notice in Writing to SAMRO request SAMRO to pay the whole or any stated proportion of the total sum of such Rights Holder’s allocated Royalty Distribution to a Person named in such notice, together with the nominee’s payment bank details, provided that such notice does not refer to a specific Work. Any such request must be accompanied with such verification and identification and supporting documents as SAMRO may require from time to time, and SAMRO may require ‘in person’ identification. If SAMRO accepts any aforementioned nomination, then SAMRO shall pay to the Person so named in the notice, the whole or the stated proportion of each future allocated Royalty Distribution from such date determined by SAMRO within 30 Business Days of the date of acceptance of the nomination. Payment to any such a nominee shall be at the nominator’s risk and shall constitute full discharge of SAMRO’s liability to the nominator.

12. UNDOCUMENTED WORKS OF MUSIC

Any Undocumented Royalty Distributions can be claimed by the person entitled to the relevant Undocumented Share by providing such documentation and other evidence as required by SAMRO, within five years of the date of its allocation as an Undocumented Royalty Distribution. In such case, the amount of the relevant Undocumented Royalty Distribution after all related expenses and losses, shall be paid to the person entitled to the relevant Share in the next relevant Royalty Distribution. Any royalties paid to a member through this process will be included in the calculation of the next Grant of Right Payment as per those rules. All Undocumented Royalty Allocations not claimed within three years from the date of allocation, shall be added to the Net Distributable Revenue to be allocated and paid as part of the next Royalty Distribution Cycle.

SAMRO PERFORMING RIGHTS ROYALTY DISTRIBUTION RULES Page 14

13. POST ROYALTY DISTRIBUTION ADJUSTMENTS

SAMRO continually strives to allocate Royalty Distributions accurately, however there may be incorrect payments within a Royalty Distribution which need to be adjusted after royalty payments have already been made. Such adjustments become necessary for a variety of reasons such as:

Incorrect or revised documentation of the Work.

Adjustments arising from the resolution of a dispute or counterclaim process.

Adjustments arising from identification and Royalty Distribution for a work when it should have made a Royalty Distribution for a different work of the same or similar title. E.g. SAMRO identifies and makes payment for work A instead of work B, which has the same title.

Adjustments arising from Royalty Distribution made for a particular Distribution channel which was paid at an incorrect Revenue Unit Factor.

Adjustments arising from incorrect performance reporting by a licensee or third party.

Adjustments shall not be processed below a reasonable financial threshold for which SAMRO judges that the expense of making an Adjustment outweighs the financial benefit of making the Adjustment. Adjustments shall be processed, once it has been established through supporting, submitted, documentation that an adjustment is required, as a debit of the Royalty Distribution to the Rights Holder incorrectly paid in a past Royalty Distribution and credited to the correct Right Holder of the relevant Work(s).

14. RULE AMENDMENTS

These rules supersede all previous Performing Rights Royalty Distribution Rules published by SAMRO, and cover all Performing Rights Royalty Distributions and applicable calculations. The Board of SAMRO may from time to time amend these rules, as required.

15. ANNEXURE I

Category Code Category Description Licence Group Code

Licence Group Description

10CCPR 10CC General Live Feature Shows PRGNSHO PR General Shows

1GOSPELPR One Gospel TV Private PRBRTVPVT PR Broadcasting Television Private

1KZNTVPR 1 KZN Community TV PRBRTVCOM PR Broadcasting Television Community

29ARTISTPR 29 Artists General Live Feature Shows PRGNSHO PR General Shows

2CHAINZPR 2 Chainz PRGNSHO PR General Shows

4JACKJILPR FOUR JACKS & JILL General Live Feature Shows PRGNSHO PR General Shows

5FMPR 5FM Radio Public PRBRRADPUB PR Broadcasting Radio Public

AALSINAPR August Alsina General Live Feature Show PRGNSHO PR General Shows

ABS80PR ABSOLUTE 80S General Live Feature Shows PRGNSHO PR General Shows

ABS80PR ABSOLUTE 80S General Live Feature Shows PRGNSHO PR General Shows

ABUURENPR Armin van Buuren General Live Feature Show PRGNSHO PR General Shows

ACKERMANPR Ackermans General Narrowcasting PRNW PR Narrowcasting

ACTION+PR Action Plus Movies TV Private PRBRTVPVT PR Broadcasting Television Private

ACTIONPR Action Movies TV Private PRBRTVPVT PR Broadcasting Television Private

ADAMSBPR BRYAN ADAMS General Live Feature Shows PRGNSHO PR General Shows

ADJPR Adjustments Performance Rights

ADSATPR ADSAT General Narrowcasting PRNW PR Narrowcasting

ADVCINPR Advertisements Cinema PRCIN PR Cinema

AFMAGICPR Africa Magic TV Private PRBRTVPVT PR Broadcasting Television Private

AFRIOPREIS Afrikaans op Reis General Live Feature Shows PRGNSHO PR General Shows

AFROJACKPR Afrojack PRGNSHO PR General Shows

ALADDINPR Aladdin General Live Feature Shows PRGNSHO PR General Shows

ALAMBERTPR Adam Lambert Live Feature Shows PRGNSHO PR General Shows

ALGOAPR Algoa Radio Private PRBRRADPVT PR Broadcasting Radio Private

ALMOSFAMPR ALMOST FAMOUS General Live Feature Shows PRGNSHO PR General Shows

ANGELRCKPR Angels of Rock General Live Feature Shows PRGNSHO PR General Shows

ANTWOORDPR Die Antwoord General Live Feature Shows PRGNSHO PR General Shows

ARTSFESTPR NATIONAL ARTS FESTIV General Live Feature Shows PRGNSHO PR General Shows

ASAPROCKPR ASAP Rocky PRGNSHO PR General Shows

ASNDABAYPR Asanda Bay General Live Feature Shows PRGNSHO PR General Shows

ASPOESTRPR Aspoestertjie General Live Feature Show PRGNSHO PR General Shows

ATKVPR ATKV General Live Feature Shows PRGNSHO PR General Shows

SAMRO PERFORMING RIGHTS ROYALTY DISTRIBUTION RULES Page 16

ATLANTISPR Atlantis Radio Community PRBRRADCOM PR Broadcasting Radio Community

AVISSIPR Anna Vissi concert PRGNSHO PR General Shows

BANANAPR BANANA BANANA General Live Feature Shows PRGNSHO PR General Shows

BASSYPR OH BOY BASSY General Live Feature Shows PRGNSHO PR General Shows

BAYFM Bay FM Radio Community PRBRRADCOM PR Broadcasting Radio Community

BAYTVPR Bay Community TV PRBRTVCOM PR Broadcasting Television Community

BBAFRICAPR Big Brother Africa TV Private PRBRTVPVT PR Broadcasting Television Private

BIEBERPR Justin Bieber General Live Feature Shows PRGNSHO PR General Shows

BIG5PR BIG 5 General Live Feature Shows PRGNSHO PR General Shows

BIGTOPAREN Big Top Arena General Live Feature Shows PRGNSHO PR General Shows

BIGTOPRKPR Big Top Rock General Live Feature Shows PRGNSHO PR General Shows

BILTONGPR Biltong Festival General Live Feature Shows PRGNSHO PR General Shows

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BUMPR Does My Bum Wobble General Live Feature Shows PRGNSHO PR General Shows

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CHAIPR Chai Radio Community PRBRRADCOM PR Broadcasting Radio Community

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CHILIPEPPR Red Hot Chilli Peppers General Live Feature Shows PRGNSHO PR General Shows

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CINEPR General Cinema PRCIN PR Cinema

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CLARKTPR CLARK T General Live PRGNLIV PR General Live Music

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CLICKSPR New Clicks General Narrowcasting PRNW PR Narrowcasting

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COKEPR COKE ZERO FEST General Live Feature Shows PRGNSHO PR General Shows

COLDPLAYPR Coldplay General Live Feature Shows PRGNSHO PR General Shows

COMEDYPR Multichoice Comedy Movies TV Private PRBRTVPVT PR Broadcasting Television Private

COMVAR1PR Various Radio Community PRBRRADCOM PR Broadcasting Radio Community

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DAUGHTRYPR DAUGHTRY General Live Feature Shows PRGNSHO PR General Shows

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GRANTEPR Eddie Grant General Live Feature Shows PRGNSHO PR General Shows

GRNDARENA Grand Arena General Live Feature Shows PRGNSHO PR General Shows

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JACADAYPR Jacaranda Day General Live Feature Shows PRGNSHO PR General Shows

JACAPOP1PR Jacaranda Pops 01 General Live Feature Shows PRGNSHO PR General Shows

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JESSIEJPR Jessie J General Live Feature Show PRGNSHO PR General Shows

JESUSTVPR Healing Jesus TV Network TV Community PRBRTVCOM PR Broadcasting Television Community

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JHBDAYPR JOBURG DAY General Live Feature Shows PRGNSHO PR General Shows

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JOYJAZZPR Standard Bank Joy of Jazz PRGNSHO PR General Shows

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KFMPR KFM Radio Private PRBRRADPVT PR Broadcasting Radio Private

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KINEKORPR Ster Kinekor Cinema PRCIN PR Cinema

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KIRKWOODPR Kirkwood Wildlife Fest General Live Feature Shows PRGNSHO PR General Shows

KKNKPR KKNK General Live Feature Shows PRGNSHO PR General Shows

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KMINOGUE Kylie Minogue General Live Feature Shows PRGNSHO PR General Shows

KMORABAPR Kori Moraba General Recorded PRGNRAD PR General Radio / Recorded Music

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KONGOSPR Kongos Concert Genreal Live Feature Shows PRGNSHO PR General Shows

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KRUISPR Kruiskyk TV Private PRBRTVPVT PR Broadcasting Television Private

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LADYGAGAPR Lady Gaga Live Feature Shows PRGNSHO PR General Shows

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LANDBRGEPR LANDSBERG ERICH General Live PRGNLIV PR General Live Music

LASTDINOPR Last Dinosaurs PRGNSHO PR General Shows

LASVAGASPR Viva Las Vegas General Live Feature Shows PRGNSHO PR General Shows

LEGENDJPR JOHN LEGEND General Live Feature Shows PRGNSHO PR General Shows

LEGENDSPR Legends of Soul General Live Feature Shows PRGNSHO PR General Shows

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LIMMUSFVPR Limpopo Music Festival General Live Feature Shows PRGNSHO PR General Shows

LINKPARKPR Linkin Park Live Feature Shows PRGNSHO PR General Shows

LINKPR Link Radio Community PRBRRADCOM PR Broadcasting Radio Community

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LIVESERPR Serious General General Live PRGNLIV PR General Live Music

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LMRADIOPR LM Radio General Live Feature Shows PRGNSHO PR General Shows

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LOCNPR LOCNVILLE General Live Feature Shows PRGNSHO PR General Shows

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LOERIEPR Loerie Awards General Live Feature Shows PRGNSHO PR General Shows

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LOIZOSYPR LOIZOS YOTI General Live PRGNLIV PR General Live Music

LOTUSPR Lotus Radio Public PRBRRADPUB PR Broadcasting Radio Public

LYRICPR THE LYRIC THEATRE General Live Feature Shows PRGNSHO PR General Shows

MABHIDAPR Moses Mabhida Stadium General Live Feature Shows PRGNSHO PR General Shows

MAGICPR Magic World TV Private PRBRTVPVT PR Broadcasting Television Private

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MAKOPANEPR Makopane Radio Community PRBRRADCOM PR Broadcasting Radio Community

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MAPUNGPR Mapungubwe Festival General Live Feature Shows PRGNSHO PR General Shows

MARSPR 30 SECONDS TO MARS General Live Feature Shows PRGNSHO PR General Shows

MARTINJPR MARTIN JONATHAN General Live PRGNLIV PR General Live Music

MASHPR Mashishing Radio Community PRBRRADCOM PR Broadcasting Radio Community

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MBUBLEPR Michael Buble General Live Feature Shows PRGNSHO PR General Shows

MEDFMPR Med FM Radio Community PRBRRADCOM PR Broadcasting Radio Community

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METROPR Metro Radio Public PRBRRADPUB PR Broadcasting Radio Public

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MOKGALMPR MOKGALABONE MS General Live PRGNLIV PR General Live Music

MOKOENAMPR MOKOENA F MOKWENA General Live PRGNLIV PR General Live Music

MOODBLUSPR Moody Blues General Live Feature Shows PRGNSHO PR General Shows

MOTSWEDPR Motsweding FM Radio Public PRBRRADPUB PR Broadcasting Radio Public

MOVEITPR MOVE IT General Live Feature Shows PRGNSHO PR General Shows

MOYARPR MOYA RENE General Live PRGNLIV PR General Live Music

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MUNGLONPR Munghana Lonene FM Radio Public PRBRRADPUB PR Broadcasting Radio Public

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NALEDIPR NALEDI THEATRE AWARD General Live Feature Shows PRGNSHO PR General Shows

NATANIELPR Nataniel General Live Feature Shows PRGNSHO PR General Shows

NATCHILD National Children General Live Feature Shows PRGNSHO PR General Shows

NEEDLOVEPR ALL YOU NEED IS LOVE General Live Feature Shows PRGNSHO PR General Shows

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NESTFPR NEST F General Live PRGNLIV PR General Live Music

NICKLBCKPR Nickleback Concert General Live Feature Shows PRGNSHO PR General Shows

NITEFEVPR NITE FEVER General Live Feature Shows PRGNSHO PR General Shows

NONDLTPR NONDLWANA TUMBA General Live PRGNLIV PR General Live Music

NOTESPR HIGH NOTES General Live Feature Shows PRGNSHO PR General Shows

NTNIL@CHRI Nataniel @ Christmas General Live Feature Shows PRGNSHO PR General Shows

NUMETROPR Nu-Metro Cinema PRCIN PR Cinema

NWFMPR Northwest FM Radio Private PRBRRADPVT PR Broadcasting Radio Private

NWUNIPR North West University Radio Community PRBRRADCOM PR Broadcasting Radio Community

OFMPR OFM Radio Private PRBRRADPVT PR Broadcasting Radio Private

OMTUKUZIPR Oliver Mtukuzi General Live Feature Shows PRGNSHO PR General Shows

ONEDIRECPR One Direction General Live Feature Show PRGNSHO PR General Shows

ONEREPPR One Republic General Live Feature Show PRGNSHO PR General Shows

ONHOLDPR Music on hold General Diffusion PRGNMH PR General Music on Hold

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OUTBRPR Outside Broadcast PRBRRAD PR Broadcasting Radio

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PACKHOUSPR Packed House Production General Live Feature Shows PRGNSHO PR General Shows

PAELVISPR MY PA DINK HYS ELVIS General Live Feature Shows PRGNSHO PR General Shows

PALOMOJPR PALOMO-MUNOZ JUAN General Live PRGNLIV PR General Live Music

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PAULCLUVPR Paul Cluver General Live Feature Shows PRGNSHO PR General Shows

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PEPPR PEPKOR General Narrowcasting PRNW PR Narrowcasting

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PIETRSELPR PIETERSE LUNA General Live PRGNLIV PR General Live Music

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PINKGIRLPR Pink Girl Fest General Live Feature Shows PRGNSHO PR General Shows

PINOCPR PINOCCHIO General Live Feature Shows PRGNSHO PR General Shows

POWERPR Power FM Radio Private PRBRRADPVT PR Broadcasting Radio Private

PREMIERPR Multichoice Premier Movies TV Private PRBRTVPVT PR Broadcasting Television Private

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PRIMCIRCPR PRIME CIRCLE General Live Feature Shows PRGNSHO PR General Shows

PUBSRECPR Pubs & Restaurants General Recorded PRGNRAD PR General Radio / Recorded Music

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R2000PR 2000 Radio Public PRBRRADPUB PR Broadcasting Radio Public

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RAVENAGEPR Raven Age General Live Feature Show PRGNSHO PR General Shows

RECGENPR Recorded General PRGNRAD PR General Radio / Recorded Music

RECORDEDPR CDs/Records/Tapes General Recorded PRGNRAD PR General Radio / Recorded Music

REDCAPPR Redcap Radio General Narrowcasting PRNW PR Narrowcasting

RGRIFFINPR Roz Griffin General Recorded PRGNRAD PR General Radio / Recorded Music

RHEMAPR Rhema TV Private PRBRTVPVT PR Broadcasting Television Private

RHUMBELOW Rhumbelow Theatre General Live Feature Shows PRGNSHO PR General Shows

RHYTHMPR Rhythym of the Night General Live Feature Shows PRGNSHO PR General Shows

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RIEUAPR ANDRE RIEU General Live Feature Shows PRGNSHO PR General Shows

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RIHANNAPR Rihanna General Live Feature Shows PRGNSHO PR General Shows

RINGTONEPR Cell phone ringtones New Media PRNMRT PR New Media Ringtones

RIPPELPR Rippel Radio Community PRBRRADCOM PR Broadcasting Radio Community

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ROCKCIRCPR ROCK CIRCUS General Live Feature Shows PRGNSHO PR General Shows

ROCKFMPR The Rock FM Radio Community PRBRRADCOM PR Broadcasting Radio Community

ROCKGENTPR ROCKING IT GENTLY General Live Feature Shows PRGNSHO PR General Shows

ROCKINGPR Rocking all over General Live Feature Shows PRGNSHO PR General Shows

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RODRIGEZPR Rodriguez General Live Feature Shows PRGNSHO PR General Shows

ROSESTADPR Rosestad Radio Community PRBRRADCOM PR Broadcasting Radio Community

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ROUTEPR Route 66 General Live Feature Shows PRGNSHO PR General Shows

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ROUXCPR ROUX CHRIS LE General Live PRGNLIV PR General Live Music

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RSGPR RSG Radio Public PRBRRADPUB PR Broadcasting Radio Public

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SAACINPR SAA in flight Cinema PRCIN PR Cinema

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SDHLOMAPR Sizwe Dhloma General Live Feature Show PRGNSHO PR General Shows

SEKGOSEPR Sekgosese Radio Community PRBRRADCOM PR Broadcasting Radio Community

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