ITF

facilities existing there such as electricity, camera and commentary positions and parking as required by the host broadcaster. In the event that ITF exercises its option to acquire the domestic rights in any year for a Home Nation, ITF shall pay to such Home Nation income in an amount equal to the best annual net income (i.e, revenue after deduction of any costs of production or other costs associated with the sale of such domestic television rights borne by the host nation) such home nation generated from the sale of domestic zonal competition television rights in the past three years. In addition, any net income above such amount that ITF receives by way of rights fees which is attributable solely to the exploitation of domestic television rights to such Ties will be shared 50:50 with the Home Nation concerned, unless a separate agreement is made between the ITF and such Home Nation. If a nation has not had a home Tie at the zonal competition level for the past 3 years, then in the first year that such Home Nation has a home Tie at zonal competition level, 100% of the net income that ITF receives by way of rights fees which is attributable solely to the exploitation of the domestic television rights to such Tie, will be shared with the Home Nation concerned unless a separate agreement is made between the ITF and such Home Nation. For any successive year the sharing mechanism described in the prior two sentences of this clause shall be followed. If a nation has an existing domestic broadcast agreement in place that goes beyond 2016 at the time this regulation comes into effect, this clause 61(b)(1) shall be effective for such nation only upon expiry of the current term of such agreement; or" 2) For Ties taking place in 2016 and/or for Ties for which ITF does not exercise its option in accordance with regulation 61(b)(1) above, then the Home Nation must use commercially reasonable efforts to arrange for the Ties to be televised in their own country, and retain the receipts from this source. For the avoidance of doubt the Home Nation may not enter into agreements for the televising of any Ties other than those taking place in that one year. The Home Nation must ensure that any television contract it enters into permits access free of charge to the signal produced by the host broadcaster of all matches of the Tie for the ITF's overseas telecasts and other exploitation of the Media Rights. The Home Nation shall also be responsible for ensuring that any contract stipulates that host broadcasts are to be in compliance with the ITF's host broadcast manual. The ITF must be kept advised by the Home Nation in its negotiations in this respect and the ITF reserves the right to intervene in its negotiations if it believes, on reasonable grounds, that it will not receive access to the host broadcaster signal on reasonable terms. In cases where the Home Nation in Zonal Group Competition is unable to provide a host broadcaster or to make such provision 50 days before the commencement of the first Tie of the year, the ITF will have the option to procure and negotiate the terms with a host broadcaster for that territory for the remainder of that Davis Cup year. In such case, any income and expense relating to the securing of a host broadcaster will be divided equally between the Home Nation and the ITF. However, if by the stipulated date 50 days before the commencement of the first Tie, the Home Nation expresses a desire to retain the host broadcaster rights, it must 34

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