DEDUCTIONS FROM ROYALTIES. Company will pay or get a label to pay all costs of recording (including cost of arranger, copyist, orchestration, conductor, musicians, background vocalists, a&r man, studio, tape, equalizing, editing, mastering, union and union associated pension and welfare funds, employer taxes based on salaries paid to the above designated personnel); and the following costs of production of album jackets: rough art, layout, fine art, photography, typography, color separation; and costs for promoting Artist's appearances on television shows; costs of a promotional man accompanying Artist on personal appearances; all said costs shall be charged against Artist's royalties. If Artist should fail to appear or be late in appearing at the time and place designated by Company, for recording hereunder, Artist agrees to pay to Company all costs, expenses and charges incurred or paid by Company by reason thereof. Any expenses which a label leasing or buying masters produced pursuant to this contract charges against royalties paid to Company may be charged by Company against Artist's royalties, if Company so desires.
DEDUCTIONS FROM ROYALTIES. Mundipharma shall pay or procure the payment of the Royalties and other monies payable to BioCryst under this Agreement from Bermuda. As of the Effective Date, there is no Legal Requirement in Bermuda for Mundipharma to pay or withhold of any income or other taxes on behalf of BioCryst with respect to Royalties and any other monies payable to BioCryst under this Agreement. In the event that after the Effective Date, the payor of such Royalties and other monies payable to BioCryst under this Agreement shall change to an Associate of Mundipharma located in a jurisdiction with respect to which such payment or withholding is required by applicable Legal Requirements, then such income or other taxes shall be deducted from the amount of such payments, royalties and other monies due to BioCryst and paid to the relevant competent taxing authority; provided that (i) Mundipharma shall promptly notify BioCryst of such Legal Requirements in advance of the payment requiring the withholding; (ii) the sum payable shall be increased as necessary so that after making all required deductions, BioCryst receives an amount equal to the sum it would have received had no withholding been made; and (iii) Mundipharma shall furnish BioCryst with proof of such payments. Mundipharma shall promptly provide BioCryst with any available certificate or other documentary evidence that might enable BioCryst to support a claim for a refund or a foreign tax credit with respect to any such tax so withheld or deducted by Mundipharma, and BioCryst shall promptly (a) file a claim for refund with the relevant taxing authority and (b) pay to Mundipharma the actual amount of any refund received. Mundipharma and BioCryst will reasonably cooperate in completing and filing documents required under the provisions of any applicable tax treaty or under any other applicable law and to take any other reasonable actions, in order to enable Mundipharma to make such payments to BioCryst without any deduction or withholding, if possible consistent with Legal Requirements (including by maintaining or changing, as reasonably necessary, the payor of amounts under this Agreement).
