Negotiating Period. If either party hereto does not agree that the Further Programme(s) should be contracted on a fixed price, non budgeted basis or the parties have agreed to contract on a fixed price, non budgeted basis but failed to agree what the Channel 4 Licence Fee should be then the Producer shall then have a period of 2 months from receipt of the Recommission Notice to prepare and submit a full budget for such Further Programme(s). The Channel 4 Licence Fee for such Further Programme(s) shall thereafter be negotiated in good faith for up to three months commencing on the date a full budget is received by Channel 4 (“the Negotiating Period”). The Channel 4 Licence Fee negotiations shall take into account (where relevant) the price paid for the preceding Programme(s), the number of programmes being commissioned in comparison to the previous series, cast breakages (Channel 4 will expect ongoing options to be negotiated with cast/talent as appropriate), union rates, increases in national insurance and RPI. If, on expiry of the Negotiating Period, a price has not been agreed it may be extended by either side in writing in exceptional circumstances to allow for a further 3 months bona fide negotiations. Finally, on expiry of the Negotiating Period or extension, taking into account the factors above and provided that both parties have acted reasonably and have negotiated in good faith the Producer shall then be entitled to start to exploit Further Programme(s) in the Territory 12 months after expiry of the Negotiating Period or extension.
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