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Thefollowingshallconstituteanagreement("Agreement")between
_______________________________("Company")and_______________________
("Artist")withrespecttoArtistexclusivelyrecordingforCompany,duringtheterm
("Term")ofthisAgreementandmasterrecordingsembodyingArtistperformances
("MasterorMasters").
1.ENGAGEMENT:CompanyherebyengagesArtisttorendersuchservicesasitmay
requireintherecordingofMastersandtheproductionofRecordsandArtisthereby
acceptssuchengagementandagreestorendersuchservicesexclusivelyintheTerritory,
toCompanyfromthedateofthisAgreementuntilthelateroftwelve(12)monthsfrom
thedatehereofornine(9)monthsfromthedateofCompany'sinitialUnitedStates
releaseoftheMastersrecordedinfulfillmentoftermsofthisContract.
2.RECORDINGREQUIREMENTS:DuringtherespectiveContractPeriod,Artist
agreestorecordforCompanysufficientMasterstocompriseaminimumofone(1)long
playingphonographrecordalbum(LP).Companyshallhavetherightandopportunityto
havearepresentativeattendeachrecordingsession.AnLPshallcomprisenolessthan
ten(10)ormorethanfourteen(14)Masters.
3.RECORDPRODUCTION,EXPENSES&ADVANCES:
a)Norecordingsessionsshallbecommencedhereundernorshallanycommitmentsbe
madeorcostsincurredinconnectiontherewithunlessanduntilaproposedbudgetforthe
MastersshallbesubmittedbyArtistinwritingandapprovedbyCompany.Company
shallhavefinaldecisiononallmoneytobespentonallrecordingcosts("Recording
Costs").CompanyshallpaytheRecordingCostsoftheMastersrecordedatrecording
sessionsconductedpursuanttothisAgreementinanyamountnotinexcessofthe
recordingbudget.RecordingCostsincurredbyCompanyinrespectofMastersinexcess
oftherecordingbudgettheretoforeapprovedbyCompany,shallberecoupablefromany
andallrecordroyalties,excludingmechanicalroyalties,orothermoniespayableto
Artist.ArtistshallnotincuranyRecordingCosts,notpreviouslyapprovedbyCompany
intheRecordingBudget,withoutCompany'swrittenapproval,andArtistfailuretoact
accordinglyshallbedeemedamaterialbreachofthisAgreement.
b)AllAdvancespaidorpayablebyCompanyunderthisAgreementshallbecharged
againsttherecordroyaltiesormonies,excludingmechanicalroyalties,payabletoArtist
underthisAgreement.
c)Artistrepresentsitwillcooperatewithpublicityandpromotionaleffortsofthe
Companytosupportsalesoftherecordbyappearingfromtimetotimeasrequestedby
Company.IftravelisrequiredoutsideofArtist'scountyofresidence,thenCompanyshall
payforthecostsoftransportationandsuchcostsshallbeconsideredExpensesunderthis
Agreement.
d)CompanyshallpaytoArtistanAdvanceof$_________.____withinthirty(30)days
fromthedateofexecutionofthisAgreement.SuchAdvanceshallberecoupablefrom
anyrecordroyalties,excludingmechanicalroyalties,payabletoArtistpursuanttothis
Agreement.Company'sfailuretopayArtisttheAdvanceunderthisparagraphshallnot
beamaterialbreachofthisAgreementandArtist'sSoleRemedyshallbetoterminate
thisAgreement.
4.ARTWORK:InconnectionwithartworkpreparedforusewiththeMastersdelivered
hereunder,andsubjecttotimerestrictionsimposedbyCompany'sdistributor,anOutside
Artistshallbeentitledtosubmitforourapproval,proposedfrontcoverartdesignsand/or
Artist'sideastherefor.IntheeventthattheforegoingisunacceptabletoCompany,
CompanyagreestoconsultwithArtistinconnectionwiththepreparationofalternate
frontcoverartwork.Artistshallbeentitledtoutilizetheartworkforconcert,retailor
mailordermerchandising,providedthatCompanyshallhavetheabilityandrightsto
grantArtistsuchrightandfurtherprovidedthatCompanyshallhaverecouped,orArtist
hasreimbursedCompanyfor,allsuchcostsforcreationandlicensingoftheartwork.
5.ROYALTIES:CompanyagreestopayroyaltiestoArtistforeachunitsold,according
tothefollowingschedule:
a.CompanyshallpaytoArtistasaroyalty,fiftypercent(50%)oftheNetReceipts
receivedbyCompany,fromexploitationoftheMastersandfiftypercent(50%)ofany
flatfeereceivedbyCompanyforlicensingorsublicensingtheMasterslessallExpenses
agreedtoherein,nottoexceedfiftypercent(50%)ofthetotalNetReceiptsreceivedby
Company(hereinafterArtist'sRoyalty).IntheeventCompany'sthirdpartydistributor
withholdsacommissionandremitsthemargintoCompany,thismarginwillbereduced
bytheagreedexpensesandcommissionsandthebalancedividedequallybetween
CompanyandArtistlesstheexpensessetforthinthisAgreement.
b.TheroyaltiesshallbecomputedinthenationalcurrencyoftheUnitedStatesof
AmericaandshallbepaidtoArtistinUnitedStatescurrencyattherateofexchange
prevailingonthedatepaymentismadeor,ifhigher,attherateofexchangeatthe
businessdaythatpaymentshouldhavebeeninaccordancewiththisAgreement.Any
bonafidereasonableandoragreedfeespaidtothirdpartydistributorsbyCompanyor
deductedfromCompany'sGrossReceiptswillbeincludedasdeductibleexpensesfor
purposesofcalculatingNetReceipts.
c.NetReceiptsshallmeanGrossReceiptsreceivedbyCompanylessExpenses.
d.NoroyaltiesshallbepayableonRecords
i)FurnishedasfreeorbonusRecordstomembers,applicants,orotherparticipantsinany
recordcluborotherdirectmaildistributionmethodwhichshallbespecificallylimitedto
two[2]perten[10]sold.
ii)OnRecordsdistributedforpromotionalpurposestoradiostations,televisionstations
ornetworks,recordreviewersorothercustomaryrecipientsofpromotionalRecords;on
socalled"promotionalsampler"Records.
iii)OnRecordsdistributedonasocalled"nocharge"or"free"basis(suchas,butnot
limitedto,Recordscommonlydescribedintherecordindustryas"freegoods"or
"freebies",andwhichshallbespecificallylimitedtoTwo[2]perTen[10]sold).
6.ROYALTYACCOUNTING:
a)StatementsastoroyaltiespayablehereundershallbesentbyCompanytoArtistonor
beforethethirtiethdayofSeptemberofthesemiannualperiodendingtheprecedingJune
30,andonorbeforethe31stdayofMarchforthesemiannualperiodendingthe
precedingDecember31st,togetherwithpaymentofaccruedroyalties,ifany,earnedby
Artisthereunderduringsuchsemiannualperiod,lessallAdvancesandchargesunder
thisAgreement.
b)NoroyaltiesshallbepayabletoArtistinrespectofsalesofRecordsbyanyof
Company'sdistributorsorlicenseesuntilpaymentthereforhasbeenreceivedbyusor
creditedtous.Salesbyanysuchlicenseesshallbedeemedtohaveoccurredinthesemi
annualaccountingperiodduringwhichsuchlicenseesshallhaverenderedtous
accountingstatementsforsuchsales.
c)RoyaltiesinrespectofthesaleofRecordsoutsideoftheUnitedStatesshallbe
computedinthenationalcurrencyinwhichCompanyispaidbyCompany'slicensees,
shallbecreditedtoArtist'sroyaltyaccounthereunderatthesamerateofexchangeaswe
arepaid,andshallbeproportionatelysubjecttoanytransferorcomparabletaxeswhich
maybeimposeduponCompany'sreceipts.Intheeventweshallnotreceivepaymentin
UnitedStatesdollarsintheUnitedStatesinrespectthereofsuchpaymentshallnotbe
creditedtoyourroyaltyaccounthereunder.Companyshall,however,ifCompanyisable
todoso,acceptsuchpaymentinforeigncurrencyanddepositinaforeignbankorother
depository,atyourexpense,insuchforeigncurrency,suchportionthereof,ifany,as
shallequaltheroyaltieswhichwouldhaveactuallybeenpayabletoArtisthereunderin
respectofsuchsaleshadsuchpaymentsbeenmadetousinUnitedStatesdollarsinthe
UnitedStatesandCompanyshallnotifyyouthereofpromptly.Depositasaforesaidshall
fulfillourroyaltyobligationshereunderastosuchrecordsales.
d)Artistshallbedeemedtohaveconsentedtoallroyaltystatementsandallother
accountingsrenderedbyCompanyhereunderandeachsuchroyaltystatementorother
accountingshallbeconclusive,final,andbinding,shallconstituteanaccountstate,and
shallnotbesubjecttoanyobjectionforanyreasonwhatsoeverunlessspecificobjection
inwriting,statingthebasisthereof,isgivenbyArtisttouswithintwo(2)yearsafterthe
daterendered.
e)CompanyshallmaintainbooksofaccountconcerningthesaleofRecordshereunder.
Artist,oracertifiedpublicaccountant,inArtist'sbehalf,may,atArtist'ssoleexpense,
examineoursaidbooksrelatingtothesaleofRecordshereunder,solelyforthepurpose
ofverifyingtheaccuracythereof,onlyduringournormalbusinesshoursandupon
reasonablewrittennotice.Company'sbooksrelatingtoanyparticularroyaltystatement
maybeexaminedasaforesaidonlywithinOne(1)yearafterthedaterenderedand
CompanyshallhavenoobligationtopermitArtisttosoexamineoursuchbooksrelating
toanyparticularroyaltystatementmorethanonce.
f)AllmoniespaidpursuanttothisAgreementtoArtistoronArtist'sbehalf,ortooron
behalfofanyperson,firmorcorporationrepresentingArtist,otherthanroyaltiespayable
pursuanttothisAgreement,shallconstituteAdvancesrecoupablefromanysumspayable
underthisAgreement.
7.MECHANICALLICENSINGANDROYALTIES:Allmusicalcompositionsor
materialrecordedpursuanttothisAgreement,whicharewrittenorcomposed,inwhole
orinpart,orownedorcontrolleddirectlyorindirectlybyArtistoranyproducerof
Masterssubjectthereto(herein"ControlledCompositions"),shallbeandarehereby
licensedtoCompanyforaperiodoften(10)yearsintheUnitedStatesandCanadaata
royaltyperselectionequaltoSeventyfive(75%)percentofthemechanicalstatutoryper
selectionrate(withregardtoplayingtime)effectiveonthedateofinitialU.S.
commercialreleaseoftheMastersconcernedhereinaftersometimestobereferredtoas
the"PerSelectionRate".
a)Notwithstandingtheforegoingwithrespecttoforeignsales,theroyaltyperselection
shallbeequaltoonehundredpercent(100%)oftheminimumstatutorymechanical
royaltyrateasestablishedbythemechanicalrightssocietyhavingjurisdictionoverthe
territoryinwhichRecordsaremanufactured.
b)Notwithstandingtheforegoing,themaximumaggregatemechanicalroyaltyratewhich
Companywillberequiredtopayinrespectofanysingle,E.P.orL.P.,regardlessofthe
totalnumberofcompositionscontainedtherein,shallnotexceedTwo[2]times,five[5]
times,andtwelve[12]timesthe"PerSelectionRate"respectively.
c)AllmechanicalroyaltiespayablehereundershallbepaidonthebasisofnetRecords
soldhereunderforwhichroyaltiesarepayabletoArtistpursuanttothisAgreement.
d)Accountingforroyaltiesinrespectofthecompositionsreferredtoaboveshallbe
renderedsemiannuallywithinninety(90)daysoftheendofeachsemiannualperiodas
setforthinparagraph7herein.
e)ArtistagreesnottorecordanyControlledCompositionorothersongrecorded
pursuanttothisAgreementwithoutCompany'swrittenconsent,forthree(3)years
subsequenttothedateofArtistsubmissiontoCompanyofArtistcompletedalbum.
f)PaymentsmadeformechanicalroyaltieswillbepaidandaccountedtoArtistona
statementseparatefromthestatementofnetreceiptspursuanttothisagreement.
PaymentsmadeformechanicalroyaltiesunderthisAgreementareconsideredan
Expense.
8.NAME&LIKENESS:
a)DuringtheTermofthisAgreementandforaslongasCompanyshallbeentitledtosell
theRecordsderivedfromMastersproducedunderthisAgreement,Artistherebylicenses
toCompanytheright,andtolicenseotherstheright,touseArtists'name,likeness,voice,
biographicalmaterialorotheridentificationforuseinassociationwithanypromotion,
marketingoradvertising,inanymediumnowknownandexistingorthatiscreatedinthe
future,ofthesaleofRecordspursuanttothisAgreement.Further,Artistwillnotlicense
orconsenttotheuseofArtist'sname,likeness,voice,biographicalmaterialorother
identification,fororinconnectionwiththerecordingorexploitationofRecordsunder
thisAgreementbyorforanyoneotherthanCompany.
b)ArtistshallapplyforandobtaininArtist'sname,andatArtist'sexpense,federal
registrationofatrademarkand/orservicemarkforArtist'sprofessionalnameand/orlogo
inconnectionwiththeusethereofinallareasoftheentertainmentindustry,including,
withoutlimitation,inconnectionwiththerecordingandsaleofphonographrecords,the
establishmentoffanclubs,therenditionofconcertsandliveperformances,andthesale
ofclothingandothermerchandise.IfArtistfailstoapplyforandobtainfederal
registrationofanysuchtrademarkorservicemark,Companyshallthereafterhavethe
righttoapplyforandobtainfederalregistrationofanysuchtrademarkorservicemark,in
Artist'sname,atArtist'sexpenseandArtistherebyappointsCompanyasitsattorneyin
fact,coupledwithaninterest,forthepurposeofapplyingforandobtainingsuch
registration.
9.MASTERRIGHTS:Allsongsrecordedand/orsubmittedduringtheTermshallbe
recordedbyArtistonCompany'sbehalfandallRecordsmadetherefrom,togetherwith
theperformancesembodiedtherein,shall,fromtheinceptionoftheircreation,be
licensedtoCompany,underthetermsandconditionsstatedherein,foraperiodoffifteen
(15)years,throughouttheTerritory.Companyshallhavetherighttosecureregistration
ofthesoundrecordingcopyrightinandtotheMastersonArtist'sbehalfandanyandall
renewalsofsuchcopyright.Company(anditsLicensees)shallhavethesoleand
exclusiverighttousetheMastersthroughouttheTerritoryoranypartthereofinany
manneritseesfit,including,withoutlimitation,thesoleandexclusiverightthroughout
theTerritory:
a)Tomanufacture,advertise,distribute,lease,license,orotherwiseuseordisposeofthe
MastersandRecordsembodyingthesongs,inanyorallfieldsofuse,byanymethodnow
orhereafterknown,uponsuchtermsandconditionsasCompanymayelector,initssole
discretion,refraintherefrom;
b)Touseandpublishthenames(includingallprofessional,group,andassumedor
fictitiousnames),photographsandbiographicalmaterialorArtist,inconnectionwiththe
promotion,exploitationandsaleofRecords;and
c)ToreleasederivativesofanyoneormoreoftheMastersonanymediumordevice
noworhereafterknown,underanyname,trademarkorlabelwhichCompanyandits
Licenseesmayfromtimetotimeelect.
10.WARRANTIESANDREPRESENTATIONS:Artistwarrantsandrepresentsthe
following:
a)ArtistisnotnowandduringtheTermshallnotbeapartytoorboundbyanycontract
oragreementwhichwillinterfereinanymannerwiththemanufactureandmarketingand
saleoftheRecordingbyCompany.Artistisundernodisability,restrictionorprohibition
withrespecttoArtist'srighttosignandperformunderthisAgreement.
b)ThesongsandperformancesembodiedintheRecordings,andanyusethereofby
Companyoritsgrantees,licensees,orassigns,willnotviolateorinfringeupontherights
ofanythirdparty.Artisthassecuredallproperlicensesfortherighttoperformand
recordalloranypartoftheperformancesorrecordingembodiedonArtist'sMaster
includingfortheuseofanythirdparty'srecordingorcompositionforuseforwhatis
commonlyknownas"sampling","replay",or"interpolation".
c)Artistagreestoanddoesherebyindemnify,saveandholdCompanyharmlessofand
fromanyandalllossanddamage(includingreasonableattorney'sfees)arisingoutofor
connectedwithanyclaimbyanyoneormorethirdpartiesoranyactbyArtistwhichis
inconsistentwithanyofthewarranties,representations,and/oragreementsmadeby
Artistherein,andagreestoreimburseCompanyondemandforanypaymentmadebyit
atanytimewithrespecttoanyliabilityorclaimtowhichtheforegoingindemnity
applies.Pendingthedeterminationofanyclaiminvolvingsuchallegedbreachorfailure,
CompanymaywithholdsumsdueArtisthereunderinanamountconsistentwithsuch
claim.Companyshallhavetherightatalltimes,initssolediscretiontocontrolthe
defenseofanyclaim.
d)Youexpresslyacknowledgethatyourserviceshereunderareofaspecial,unique,and
intellectualcharacterwhichgivesthempeculiarvalue,andthatintheeventofabreach
byyouofanyterm,condition,orcovenanthereof,wewillbecausedirreparableinjury.
Youexpresslyagreethatintheeventyoushallbreachanyprovisionsofthiscontract,we
shallbeentitledtoseekinjunctivereliefand/ordamages,aswemaydeemappropriate,in
additiontoanyotherrightsorremediesavailabletous,andweshallhavetherightto
recoupanysuchdamagesresultingfromanysuchbreach,whichshallbereducedtoa
final,adversejudgment,fromanymonieswhichmaybepayabletoyouhereunderor
underanyotheragreementbetweenyouandusorouraffiliates.
e)DuringtheTermofthisAgreement,ifrequiredbylaworanyotheragreementthat
Companymaybecomeapartyto,Artistshallbecomeandremainamemberingood
standingofanyappropriatelaborunionorunions.IfCompanybecomesapartytoany
suchunionagreement,CompanyshallgiveArtistwrittennoticeofsuchaction.
f)ArtistwarrantsthatitisthesoleownerofitsprofessionalnameandthatArtisthasthe
soleandexclusiverighttouseandtoallowotherstousetheArtist'sprofessionalnamein
connectionwiththemanufacture,advertisingandthesaleofRecords.
11.SUSPENSIONANDDEFAULT:
a)CompanyreservestherightbywrittennoticetoArtisttosuspenditsobligation
hereunderand/ortoextendtheexpirationdateofthethencurrentContractPeriodforthe
durationofthefollowingcontingenciesifbyreasonofsuchcontingenciesitismaterially
hamperedintherecording,manufacture,distributionorsaleofRecords,oritsnormal
businessoperationsbecomecommerciallyimpractical:labordisagreements,fire,
catastrophe,shortageofmaterialsoranycausebeyondCompany'scontrol.
b)IntheeventofanydefaultorbreachbyArtistintheperformanceofanyofArtist's
obligationorwarrantieshereunder,Company,bywrittennoticetoArtist,inadditionto
anyotherrightsorremedieswhichitmayhaveatlaworotherwise,atitselection,may
terminatetheTermormaysuspenditsobligationshereunderforthedurationofsuch
defaultorbreachand/ormayextendtheexpirationdateofthethencurrentContract
Periodforaperiodequaltoalloranypartoftheperiodofsuchdefaultorbreach.
c)IntheeventofanydefaultorbreachbyCompanyintheperformanceofanyofits
obligationsorwarrantieshereunder,ArtistshallgiveCompanywrittennoticeofsuch
default.Companyshallthenhavesixty(60)daystocuresuchbreachbeforebeing
declaredbyArtisttobeinbreachordefaultofthisAgreement.
12.APPROVAL:WhereverinthisAgreementArtist'sapprovalorconsentisrequired,
Artist'sapprovalshallnotbewithheldunreasonablyandfailuretogivesuchapprovalor
disapprovalwithinfifteen(15)daysofnoticebyCompanyshallbedeemedanapproval
byArtist.
13.ASSIGNMENT:CompanyshallhavetherighttoassignthisAgreementoranyof
Company'srightshereunderortodelegateourobligationshereunderoranypartthereof
toanythirdparty.SpecificallyCompanyshallhavetherighttoenterintoalongterm
productionordistributionagreement,ontermsnolessfavorablethanthosecontained
herein,assigninganyofourrightshereunderwithany"Major"recordcompanyor
nationallydistributedindependentlabel,(asthosetermsareunderstoodintherecording
industry).Artist'srightsandobligationshereunderarepersonalandnondelegable.
14.SUCCESSORININTEREST:ThisAgreementshallinuretothebenefitofandbe
bindinguponeachofthepartiesheretoandtheirrespectivesuccessor,permittedassigns,
andrepresentatives.Companymay,atitselection,assignthisagreementoranyofits
rightshereunder.
15.INVALIDITYOFTERMS:Ifanyclause,sentence,paragraphorpartofthis
agreement,ortheapplicationthereoftoanyperson,shallforanyreasonbeadjudgedbya
courtofcompetentjurisdictiontobeinvalid,suchjudgmentshallbelimitedandconfined
initsoperationtotheclause,sentence,paragraphorpartthereofdirectlyinvolvedinthe
controversyinwhichsuchjudgmentshallhavebeenrenderedandtothepersoninvolved.
16.NOTICES:AllnoticeshereunderrequiredtobegiventoCompanyshallbesentto
CompanyatitsaddressfirstmentionedinExhibitBhereinandallroyaltystatements
(andpayments)andallnoticestoArtistshallbesenttoArtistasArtist'saddressfirst
mentionedhereininExhibitB,orsuchotheraddressaseachpartyrespectivelymay
hereafterdesignatebynoticeinwritingtoeachother.Allnoticesshallbeinwritingand
shallbesentbyregisteredmailorcertifiedmail,returnreceiptrequested.Thedayof
mailingofanysuchnoticeshallbedeemedthedateofthegivingthereof.Royalty
statements(andpayments)shallalsobesentbyregisteredmailorcertifiedmail,return
receiptrequested.AllnoticesshallbeserveduponCompanytotheattentionofthe
President.
17.APPLICABLELAW:ThisagreementhasbeenenteredintointheStateof
Californiaandthevalidity,interpretationandlegaleffectofthisAgreementshallbe
governedbythelawsoftheStateofCaliforniaapplicabletocontractsenteredintoand
performedentirelywithintheStateofCalifornia,withrespecttothedeterminationofany
claim,disputeordisagreementwhichmayariseoutoftheinterpretation,performanceor
breachofthisagreement.Anyprocessinanyactionorproceedingcommencedinthe
courtsoftheStateofCaliforniaorelsewhere,arisingoutofanysuchclaim,disputeor
disagreement,mayamongothermethodsbeserveduponArtistbydeliveringormailing
thesame,viaregisteredorcertifiedmail,addressedtoArtistattheaddressfirstabove
writtenorsuchotheraddressasArtistmaydesignatepursuanttoparagraph16hereof.
Anysuchdeliveryormailserviceshallbedeemedtohavethesameforceandeffectas
personalservicewiththeStateofCaliforniaorthejurisdictioninwhichsuchactionor
proceedingmaybecommenced.
18.AMENDMENT:Thiswritingsetsforththeentireunderstandingbetweentheparties
withrespecttothesubjectmatterhereof,andnomodification,amendment,waiver
terminationordischargeofthisagreementshallbebindingupontheCompanyunless
confirmedbyawritteninstrumentsignedbyanauthorizedofficeroftheCompany.No
waiverofanyprovisionoranydefaultunderthisAgreementshallconstituteawaiverby
Companyofcompliancethereafterwiththesameoranyotherprovisionoritsrightto
enforcethesameoranyotherprovisionthereafter.
19.DEFINITIONS:ForthepurposeofthisAgreement,thefollowingtermsshallhave
thefollowingmeaning:
"Advance"shallmeanaprepaymentofroyalties.
"Compositions"shallmeananysinglemusicalcomposition,irrespectiveoflength,
includingallspokenwordsandbridgingpassagesandamedley.
"ContractPeriod"shallmeananyperiodoftheAgreementwhereinatermorobligation
maybeapplicable.
"ControlledCompositions"shallmeanallmusicalCompositionsormaterialrecorded
pursuanttothisAgreement,whicharewrittenorcomposed,inwholeorinpart,orowned
orcontrolleddirectlyorindirectlybyArtistoranyproducerofMasterssubjectthereto.
"Delivery"shallmeanCompany'sreceiptofnewlyrecordedcommerciallyand
technicallysatisfactoryMasterstoconstitutetheRecordrequiredtobegiventoCompany
asperthisAgreement(mixedandmastered),togetherwithallnecessarylicenses,
approval,consentsandpermissions.
"DigitalTransmissions"shallmeanthetransmissionanddistributiontotheconsumer,
otherthanthedistributionofphysicalRecordstoconsumers,whetherofsoundalone,
soundcoupledwithanimageorsoundcoupledwithdata,inanyformincludingbutnot
limitedtothedownloadingorotherconveyanceofArtist'sperformanceonMastersor
AudiovisualRecordingsrecordedhereunderbytelephone,satellite,cable,direct
transmissionoverwireorthroughtheair,andonlinecomputerswhetheradirector
indirectchargeismadetoreceivethetransmission.
"Expenses"shallmeanallexpensesincurredinconnectionwiththeproductionofaudio
and/orvisualmastersandallpaymentsand/oradvancestoyouhereunder,including
mechanicalroyalties,aswellaspaymentstoallofthemusicians(includingwithout
limitation,instrumentalists,leaders,arrangers,orchestrators,copyistsandcontractors)
vocalistsandproducers,ifany,renderingservicesinconnectionwithanyrecordings
hereunder,paymentstounionpensionandwelfarefunds,costsofcartageandinstruments
hire,studioorhallrentals,editingcosts,distributionfees,licensingfees,payrolltaxes
andotherpaymentstothirdpartiesonyourbehalf,toursupport,liabilityandmedical
insuranceandlegalaccountingfeespayabletoyourownlegalcounseloraccountant(if
anysuchpaymentsareactuallymadebyus)andcustomaryartwork,alltaxes,mechanical
royaltiespayabletothirdpartiesorpayablehereunder,manufacturing,packaging
charges,orlegalfeespayableonartist'sbehalf,orfeesassociatedwithfilingcopyrightor
trademarkfees,andotherreasonableexpensesincurredbyCompanyforthepurposeof
productionoftheMastersandrecordsandallcostsattributedtopromotionalcosts,
marketingandadvertisingcostsexpendedinfurtheranceofthesaleofRecordsproduced
fromtheMasters.
"LongPlaying"("LP")shallmeanaRecordthathasnolessthanten(10)Compositions
andbeingnolessthanforty(40)minutesinduration.
"MasterRecording"("Master"or"Masters")shallmeananyoriginalrecording,
production,and/ormanufactureofRecords,togetherwithanyderivativesthereof(other
thanRecords).
"NetReceipts"shallmeantheamountreceivedbyCompanyfromsalesorlicensesof
Recordsafterdeductinganyandalldirectcosts,taxesand/orthirdpartypaymentsin
connectionwiththecreation,production,manufactureandexploitationoruseofsuch
RecordsorMastersrecordedorproducedunderthisAgreement.
"NetSales"shallmeansalesofRecordspaidfororcreditedandnotreturnedexceptas
specificallysetforthtobedifferentinthisAgreement.
"Records,"shallmeanallformsofsoundreproductionswhethernowknownor
unknown,onorbywhichsoundmayberecordedforlatertransmissiontolisteners,
embodyingsound,including,withoutlimitation,discsofanyspeedorsize,vinyl,
compactdisc,reeltoreeltapes,cartridges,cassettes,audiovisualrecordings,digital
transmissions,directtransmissionsoranyotherconfigurations.
"RecordingCosts"shallmeanallcostsincurredwithrespecttotheproductionof
MastersembodyingtheArtist'sperformances,includingaudiovisualrecordings,and
whicharecustomarilyrecognizedasRecordingCostsinthephonographrecordindustry
includingbutnotlimitedtoallexpensesincurredinconnectionwiththeproductionof
audioand/orvisualmastersandallpaymentsand/oradvancestoArtisthereunder,aswell
aspaymentstoallofthemusicians(includingwithoutlimitation,instrumentalists,
leaders,arrangers,orchestrators,copyistsandcontractors)vocalistsandproducers,ifany,
renderingservicesinconnectionwithanyrecordingshereunder,paymentstounion
pensionandwelfarefunds,costsofcartageandinstrumentshire,studioorhallrentals,
editingcosts,distributionfees,licensingfees,payrolltaxesandotherpaymentstothird
partiesonArtist'sbehalf,toursupport,liabilityandmedicalinsuranceandlegal
accountingfeespayabletoArtist'sownlegalcounseloraccountant(ifanysuchpayments
areactuallymadebyCompany)andcustomaryartworkifdonebyotherthaninhouse
artists,alltaxes,thirdpartiesfees,feesforreplayorasamplinglicenses,andother
reasonableexpensesincurredbyCompanyforthepurposeofproductionoftheMasters
andRecordsandallcostsattributedtopromotionalcosts,marketingandadvertisingcosts
expendedinfurtheranceofthesaleofRecordsproducedfromtheMasters.
"SuggestedRetailListPrice"("SRLP")shallmeanwithrespecttoRecordssoldfor
DistributionintheUnitedStates,Company'ssuggestedretaillistpriceintheUnited
Statedduringtheapplicableaccountingperiodforthecomputationofroyaltiestobe
madehereunder,itbeingunderstoodthataseparatecalculationofthesuggestedretaillist
priceshallbemadeforeachpriceconfigurationofRecordsmanufacturedandsoldby
Company;and(ii)withrespecttoRecordssoldhereunderforDistributionoutsidethe
UnitedStates,Companyoritslicensees'suggestedorapplicableretailpriceinthe
countryofmanufactureorsale,asCompanyispaid,or,intheabsenceinaparticular
countryofsuchsuggestedretaillistprice,thepriceasmaybeestablishedbyCompanyor
itlicensee(s)inconformitywiththegeneralpracticeoftherecordingindustryinsuch
country,providedthatCompanyshallnotbeobligatedtoutilizethepriceadoptedbythe
localmechanicalcopyrightcollectionagencyforthecollectionofmechanicalroyalties.
Notwithstandinganythingtothecontrarycontainedherein,theSuggestedRetailList
PriceforpremiumRecordsshallbeCompany'sactualsalespriceofsuchRecords.
"Term"shallmeanthedurationoftheAgreementduringwhichArtistacceptsandagrees
torenderservicestotheCompanyaswellaswhichlicensingrightpertainingtothe
productionofRecordsexclusivelytotheCompany.
"Territory"shallmeantheWorld.
20.DISTRIBUTIONAGREEMENT:IntheeventCompanyentersintoadistribution
agreementwithanyDistributorofRecords,andinanyeventthisAgreementisinconflict
withtheAgreementbetweenCompanyandDistributorforthedistributionofArtist's
Records,theDistributionAgreementtermsshallcontrolonlyastothoseterms
inconsistentandinconflictwiththetermsofthisAgreement.Howeverinnoeventshall
thetermofaDistributionAgreementaffectArtist'sRecordRoyaltyBasicRate.
21.GROUPARTIST&LEAVINGMEMBER:
a)TheArtist'sobligationsunderthisAgreementarejointandseveral.Allreferencesto
"Artist"includeallmembersofthegroupcollectivelyandeachmemberindividually,
unlessotherwisespecifiedherein.
b)"Artist"shallrefertothemembersofthegroupaspresentlycomprisedandsuchother
individual(s)whoatanygiventimeduringthetermhereofshallthencomprisethegroup.
Thesubstitutionof,additionto,orsubtractionfromanyofthepresentmembersofArtist
shallbedoneonlyuponthepriorwrittenapprovalofArtistandCompany,providedthat
anysubstitutedindividualwillbedeemedapartytothisAgreementandshallagreein
writingtobeboundbyallofthetermsandconditionsofthisAgreement.Artistshall
promptlydelivertoCompanyanydocumentsasCompanymayrequireexecutedbysuch
substitutedmemberasCompany,initsjudgment,maydeemnecessaryoradvisableto
effectuatetheinstitutionofsuchsubstitutedmember.
c)IfanymemberofArtistceasestoperformasamemberofthegroup("Leaving
Member"),ArtistshallpromptlygiveCompanywrittennoticeofsuchoccurrence(the
"LeavingMemberNotice").Ifthegroupdisbands,eachmemberofthegroupshallbe
deemedaLeavingMember.
i)EachofthePresentMembersandSubstituteMembersagreethat,withoutlimitingany
ofCompany'sotherrightsand/orremedies,ifthereisaLeavingMemberduringtheterm
hereof:
A)CompanyshallhavetherighttoterminatetheTermofthisAgreementwithrespectto
theremainingmembersofArtistbynoticegiventoArtistatanytimebeforethe
expirationofninety(90)daysafterCompany'sreceiptoftheLeavingmemberNotice.In
theeventofsuchtermination,allofthemembersofArtistshallbedeemedLeaving
MembersasofthedateofCompany'snoticetoArtistandthetermsofthisparagraph
shallthenapplytoanyorallofsuchmembers.
B)IfCompanydoesnotterminatethetermofthisAgreementwithrespecttothe
remainingmembers,theroyaltiesorothercompensationsotherwisepayablepursuantto
thetermsofthisAgreementwithrespecttosuchremainingmembersshallremainthe
same.
C)ALeavingMembershallnot,withoutCompany'sconsent,usetheprofessionalname
ofthegroupinanycommercialartisticendeavor;saidprofessionalnameshallremainthe
propertyofthegroupwhocontinuetoperformtheirobligationshereunderandwhose
engagementsarenotterminated.
ii)ALeavingMembershallnot,withoutCompany'sconsent,usetheprofessionalname
ofthegroupinanycommercialartisticendeavor;saidprofessionalnameshallremainthe
propertyofthegroupwhocontinuetoperformtheirobligationshereunderandwhose
engagementsarenotterminated.
22.OBLIGATIONSOFCOMPANY:Companyrepresentsitsintentiontopromotethe
recordingsembodiedinthemasterrecordingasspecifiedinExhibitC.Intheeventthat
Companydoesnotfulfillthisobligationwithinoneyearfromthedateofdeliveryofthe
completedMasterRecordings,Companyshallbeconsideredinbreachofcontract,and
willrelinquishallrightsandclaimsagainstsaidMasterRecordings.
23.RIGHTTOLEGALREPRESENTATION:Artistrepresentsandwarrantsthat
ArtisthasreadthisAgreementandArtistunderstandsthatthisisanimportant
legaldocument.ArtistherebyrepresentsandwarrantsthatArtisthasbeenadvised
ofitsrighttoseekindependentlegalcounselinconnectionwiththenegotiationand
executionofthisagreementandthatArtisthaseitherretainedandhasbeen
representedbysuchlegalcounselorhasknowinglyandvoluntarilywaiveditsright
tosuchlegalcounselanddesirestoenterintothisagreementwiththebenefitof
independentlegalrepresentation.
TheeffectivedateofthisAgreementshallbethe_____dayof
_____________________,____________.
RecordCompany
By:____________________________
_______________________________,President
ARTIST:
________________________________
Artistp/k/aArtistBandName
ExhibitC
CompanyagreestoperformthefollowingactivitiesonArtist.sbehalf:
PriortoreleaseofArtist'sfinishedLP,CompanywillhavebuiltpagesforArtistonCompany
website,andwillfeaturesomeofArtist'spreviousmusic,alongwithbio/pressreleases,andalink
backtoArtist'swebsite.
CompanywillannounceArtist'ssigningwithCompanylabelontheInternetandtothepress.
Companywillduplicatethealbum,withaminimumfirstrunduplicationof1000copies.
Companywillmailaminimumof100copiesoftherecordingtoradiostationsthroughourown
resourcesorthroughtheuseofanestablishedRadioPromoter.
Companywillreserveatleast25additionalcopiesoftherecordingforpromotionalpurposes.
Companywillundertakeafollowupradiopromotioncampaign,telephoningatleast100radio
stationseachweekforaminimumof8weeksthroughourownresourcesorthroughtheuseofan
establishedRadioPromoter.
CompanywillannouncethereleaseofthealbumontheInternetandtothepress,makesoundfiles
availableforcomputerusersasstreamingaudio,andwillofferthefinishedLPforsaleat
Company'sonlinestore.AllretailsaleswillbereportedtoSoundScan.
Companywillactaswholesalertoretaildistributorsasneeded,andwillmaintainsufficientstock
ofArtist'sfinishedLPtosupplysaidretaildistributors.Allretaildistributorsmustberegistered
andreportingallretailsalestoSoundScanbeforeenteringintoaresaleagreementwithCompany.