Residuals for Made-for-Public Broadcasting System (“PBS”) Projects

PBS differs from other free television markets because your initial compensation covers an initial license period of four national releases on PBS within three years. A "national release" includes unlimited runs within a seven day period. Generally, after the three-year license period or the four national releases, the Company may purchase additional license periods upon payment to the credited writers of a percentage of the applicable PBS minimums. Note that license fees for the second and subsequent licenses are calculated based on the minimums in effect at the commencement of each license period rather than those in effect at the time the writer was employed.

A percentage of the PBS minimum is also paid as an advance against revenue for use on pay television, videocassette and basic cable. Release in foreign markets is paid the same as free television prior to the 2001 MBA, except that the 35% must be paid in a single installment.

If a project made for PBS is sold to domestic free television, the writer is paid according to the same formula used in calculating residuals due for made-for-free television product using MBA minimums in lieu of PBS minimums.