3
with ASCAP, BMI, SESAC, or any other performing rights organization, or for any other
reasonable purpose; provided, however, that the Committee shall not otherwise publicly disclose
the results of any such study without ASCAP’s prior approval.
8. The Second Circuit Court of Appeals, having ruled in the DMX
proceeding that ASCAP is required to offer to music users (as defined in AFJ2) an adjustable-fee
blanket license with a fee structure that accounts for performances otherwise licensed from
ASCAP members (“AFBL”), ASCAP will offer such a license to local television stations with a
start date effective January 1, 2015, with the specifics of a credit mechanism to be negotiated in
good faith between ASCAP and the TMLC by September 11, 2012 or by a date mutually agreed
upon by the parties. If the parties cannot agree on the specifics of such a license, either ASCAP
or the Applicants may apply to Magistrate Judge Dolinger for resolution of the issue(s).
9. At least once every six months, ASCAP and the Committee (or its
designated representative) shall meet in good faith to resolve any outstanding billing, payment,
or reporting disputes between ASCAP and any Licensee. Any good faith dispute that is not
resolved during such meetings may be submitted to arbitration as provided in Paragraph 11
below.
10. If ASCAP and the Committee (or its designated representative) are unable
to resolve one or more good faith disputes pursuant to Paragraph 9 above, and, in the judgment
of ASCAP and/or the Committee, such outstanding disputes affect a significant number of
Licensees and/or involve a substantial dollar amount, such outstanding disputes shall be finally
determined and resolved by a neutral arbitrator. The arbitrator shall be selected jointly by
ASCAP and the Committee and appointed for a two (2) year period commencing on January 1,
2014. If the parties are unable to agree upon an arbitrator by December 1, 2013, selection of an
arbitrator shall be conducted pursuant to the rules of the American Arbitration Association. If an
arbitrator is unable to fulfill his or her term for any reason, the parties shall, within a reasonable
time period, jointly select a new arbitrator to complete the term. If either ASCAP or the
Committee submits one or more outstanding good faith disputes to arbitration pursuant to this
paragraph, it shall so notify the arbitrator and the opposing party. Each party shall have thirty
(30) days from the date of such notice to submit a statement of claim, and any supporting
documentation, to the arbitrator and to the other party setting forth the party’s positions
regarding the dispute(s) at issue in the arbitration; provided, however, that the deadline for
submission of a statement of claim may be extended up to thirty (30) days at the discretion of the
arbitrator upon a showing of good cause by either party. The statements of claim shall not exceed
ten double-spaced pages in length (exclusive of any supporting documentation). The arbitrator
shall have thirty (30) days from his or her receipt of the statements of claim to issue a written
decision adopting one of the two positions put forth by the parties with respect to each disputed
issue under arbitration, and to determine a just division of costs between the parties as the
arbitrator may deem appropriate. The arbitrator’s decision shall be final. The arbitrator shall not
have authority to award punitive damages, attorneys’ fees or expenses to either party. In no
event shall either party submit to arbitration any good faith dispute that the parties have not yet
attempted to resolve themselves pursuant to Paragraph 10 above.
11. If, during the term of the Licenses, any dispute arises between ASCAP and
any Licensee concerning the interpretation of any of the provisions of this letter agreement or the