Common use of Mechanical Royalties Clause in Contracts

Mechanical Royalties. (i) The Controlled Rate with respect to Controlled Compositions will be the rate equal to seventy five percent (75%) of the U.S. Minimum Statutory Rate at the time of the Delivery of the Master concerned (but in no event later than the last date for timely Delivery of such Master). (ii) Notwithstanding anything to the contrary contained herein or in Annex “A” attached hereto, the total Mechanical Royalty for all Compositions (including Controlled Compositions) with respect to each Album (other than Multiple Record Albums) will be not more than ten (10) times the Controlled Rate.