Common use of Conditional Fee Criteria Clause in Contracts

Conditional Fee Criteria. The success of a film shall be determined based on the type of Customer as the following: ○ Conditional Fee for Producer: A Conditional Fee is payable if one or more film(s), being at the development or pre-production stage at the time of the analysis during a subscription year, enters into production within 2 years from the start date of the subscription year (the “Production Success”) or if one or more film(s), being at the production or post-production stage at the time of the analysis during a subscription year, enters into distribution within 2 years from the start date of the subscription year (the “Distribution Success”). ○ Conditional Fee for Distributors, Sales Agents, and Others: A Conditional Fee is payable if one or more film(s) analyzed on the Platform during a subscription year is released within 2 years from the start date of the subscription year and the producer achieves a positive gross profit from the corresponding film(s).