1. Participations and Residuals Project Funding Request June, 2013

2. Solution Participations & Residuals Problem Statement 2 Executive Summary The Participations and Residuals systems are outdated, lack integrations with key enterprise systems and promote many manual, in-efficient and error prone processes increasing the risk of inaccurately paying the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

3. 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) 30.47 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. 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. 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) 30.83 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. 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