Participations and Residuals Project Funding Request June, 2013

Solution Participations & Residuals Problem Statement 2 Executive Summary The Participations and Residuals systems are outdated, lack integrations with key enterprise systems and promote many manual, in-efficient and error prone processes increasing the risk of inaccurately paying the Participants and the Talents (Guilds). Implement NBCU PARIS for Participations Outsource Residuals to Entertainment Partners

PARIS for Participations - Project Costs & Benefits Summary 3 Project Costs (includes Inception phase) Software$3,500,000 Hardware/Peripherals$411,000 Internal Labor$199,981 External Labor$6,627,322 Miscellaneous (i.e. Travel)$4,445 Total$10,742,748 Ongoing Costs (Twelve-year Summary) Incremental support labor$851,877 Incremental maintenance$739,800 Total$1,591,677 Project Benefits (Twelve-year Summary) Cost Avoidance$12,759,929 Risk Mitigation$40,000,000 Total$52,759,929 Twelve-year Summary Total Costs (One-time + Incremental Ongoing) $12,334,425 Total Benefits$52,759,929 Internal Rate of Return42.02% Net Present Value$15,034,230 Payback Periods (in months) Future Funding Needed FY14$6,117,030 FY15$1,770,339 FY16$1,100,740 FY17$1,095,998 FY18$273,999 $10,358,106 Note: 1.Twelve year summary includes the costs of Inception phase 2.CBA has been calculated over a timeline starting FY12

4 PARIS for Participations - Project Benefits Benefit Type Forecasted 1 Year BenefitsDescription Cost Reduction / Avoidance $230,535Avoiding SCA mainframes hosting and support cost $1,393,273 (average) Avoiding the need to increase the Participations staff to support the departmental functions Risk Mitigation $5,000,000Mitigating the risk of overpayments

5 EP for Residuals Outsourcing - Project Costs & Benefits Summary Project Costs (includes Inception phase) Hardware/Peripherals$68,000 Internal Labor$308,813 External Labor$6,048,995 Miscellaneous (i.e. Travel)$4,445 Duplicate Payroll Tax$306,436 Severance and Retention Payouts$230,929 Total$6,967,618 Ongoing Costs (Twelve-year Summary) Outside Services (i.e. EP Fees)$6,281,811 Incremental support labor$222,433 Incremental maintenance$122,400 Total$6,626,644 Project Benefits (Twelve-year Summary) Costs Reduced$27,581,168 Costs Avoided$403,438 FTE Savings$7,582,733 Total$35,567,339 Twelve-year Summary Total Costs (One-time + Incremental Ongoing) $13,594,262 Total Benefits$35,567,339 Internal Rate of Return44.98% Net Present Value$8,581,677 Payback Periods (in months) Future Funding Needed FY14$2,263,021 FY15$3,239,638 FY16$861,276 FY17$39,000 $6,402,935 Note: 1.Twelve year summary includes the costs of Inception phase 2.CBA has been calculated over a timeline starting FY12

6 EP for Residuals Outsourcing – Project Benefits Benefit Type Forecasted 1 Year Benefits $Description Cost Reduction / Avoidance $573,427Reduction in late fees / handling fees $909,000Reduction in over reported foreign remittance taxes $1,138,838Reduction in overpayments $415,240Recoupable overpayments $42,296Savings in print material and labor $23,695Avoiding DGA employee contributions $57,634Avoiding SCA mainframes hosting and support cost $92,000Eliminating check processing and reporting Costs Annual FTE Savings $571,880 Incremental reduction in the Residuals department overhead due to reduction in the need for labor $280,686 Incremental reduction in the IT department overhead due to reduction in the need for labor