Tracie Butler

Tracie Butler

4/26/2015

Deal Memo #2 MUSC 388

Dr. Nepkie

I represent the record company, Geronimo Records.

Exclusive Artists Recording Agreement

Term
The term of this agreement begins on todays date, April 26th 2015, and will continue for
a period ending on the last day of the twelfth month following the retail street date of the release
of the master recordings of one album.1 The record company is granted the right to five
consecutive separate options to extend the initial term for further periods. Each option will be
extended upon the same terms and conditions applicable to the initial period. 2 If options are
exercised, the artist will be notified before the expiration of the current contract. 3 Option periods
will begin immediately following the prior contract period and shall continue until the last day of
the twelfth complete month.4

Exclusivity
The artist will not record for any other company while he/she is under contract with this
company. Everything done under contract will be owned by the record company.5

Madeline Gioia, Deal Memo #2 Legal Issues in the Music Industry, 2010
The Musicians Business and Legal Guide, 2008, page 287
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The Musicians Business and Legal Guide, 2008, page 287
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The Musicians Business and Legal Guide, 2008, page 287
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The Musicians Business and Legal Guide, 2008, page 286
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Territory
Universe, including the Internet.6

Recording Commitment and Delivery

During each contract period, the artist will deliver a one album consisting of twelve
songs.7 Each song will be an original composition and consist of no covers. The following
schedule should be followed in regards to recording:8
CONTRACT PERIOD

RECORDING COMMITMENT

Initial Period

One (1) Album (the First Album)

First Option Period

One (1) Album (the Second Album)

Second Option Period

One (1) Album (the Third Album)

Third Option Period

One (1) Album (the Fourth Album)

Fourth Option Period

One (1) Album (the Fifth Album)

Fifth Option Period

One (1) Album (the Sixth Album)

The company will decide the scheduling and coordination of recording sessions. 9

Madeline Gioia, Deal Memo #2 Legal Issues in the Music Industry, 2010
The Musicians Business and Legal Guide, 2008, page 288
8
The Musicians Business and Legal Guide, 2008, page 288
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The Musicians Business and Legal Guide, 2008, pages 288-289
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Recording Procedure
Before recording of each sessions begins, the artist and company shall agree on selection
of producer and financial terms of your agreement(s) with such producer(s), selection of material
including the number of compositions to be recorded, and the dates and locations of recording
and mixing and the studios where recording and mixing will take place. If an agreement cannot
be reached by both parties, the companys decision will be final.10

Grant of Rights
All recordings the artist puts forth during the term or submitted from the start of the
recording, shall be property of the record company. The company shall have the exclusive right
throughout the territory to copyright those recordings in the companys name as the author and
owner of them and to secure any and all renewals and extensions. The recordings shall be
considered a work made for hire for the company.11
The company and all people authorized by the company will have the right to use the
names (including any professional names), and any likenesses, whether or not current (including
photographs, portraits, caricatures, and stills from any artwork or videos), autographs and
biographical material of or relating to the artist for the purpose of advertising, promotion and
trade and in connection with the marketing and exploitation of recordings created during the
contract period.12

The Musicians Business and Legal Guide, 2008, page 289

The Musicians Business and Legal Guide, 2008, page 294
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The Musicians Business and Legal Guide, 2008, page 294
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The company will have the exclusive right throughout the territory to establish and
maintain an official artist website that has the artists professional name, and the URL for the
website can be included the artists recordings that are owned by the company and in any
advertising and marketing materials. 13 The company shall be the sole and exclusive owner of the
artist website and the operation and content displayed on the site shall be controlled by the
company.14 The company shall consult the artist regarding the initial design of the artist website
and will give due consideration to any reasonable request made by the company or the artist. The
company shall not include on the artist website content that does not embody artists
performances, any advertisements or endorsements for products other than the recordings
embodying the artists performances or artists services.15
The company shall be responsible for any and pay all costs in connection with the
establishment, registration and maintenance of the artist website at its non-recoupable expense.
After the expiration of the contract period, the artists website will be subject to both the artists
and the companys reasonable approval.16

Advances and Recording Costs

For the first album, a recording fund of $150,000 will be set. The recording fund shall be
payable as follows: 10% of the recording fund shall be paid to the artist following the full
execution of this agreement. The balance of the recording fund shall be paid to the artist after all

13

The Musicians Business and Legal Guide, 2008, pages 294-295

The Musicians Business and Legal Guide, 2008, page 295
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The Musicians Business and Legal Guide, 2008, page 295-296
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The Musicians Business and Legal Guide, 2008, page 296 & 298
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recording costs, advances and other expenses incurred during the contract period are deducted.17
For the following albums, the recording fund shall be payable in an amount equal to 66%
multiplied by the gross amount of royalties earned by the artist on the previous sales of the prior
album. The gross amount of artist royalties will be measured up until twelve months following
the companys initial release of each of the applicable albums.18 The amount of recording fund
will be recouped solely from royalties payable to the artist.19 For the renewal options, the
recording fund shall be payable as follows:
ALBUM

MINIMUM

MAXIMUM

Second Album

$140,000

$165,000

Third Album

$160,000

$175,000

Fourth Album

$180,000

$195,000

Fifth Album

$200,000

$215,000

Artist and Producer Royalty

The artists royalty rate is 12% after fully recouping the advance and is paid to him/her
prospectively. This is based on the net CD price after deductions. The producers royalty rate is
3% after fully recouping the advance and is paid to him retrospectively. This amount is taken out
of the artists royalty, resulting in a 9% net royalty rate.20

17

The Musicians Business and Legal Guide, 2008, page 303

The Musicians Business and Legal Guide, 2008, page 303
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Madeline Gioia, Deal Memo #2 Legal Issues in the Music Industry, 2010
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The Musicians Business and Legal Guide, 2008, page 308
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Merchandising
Should the artist want to enter a deal with a third party to grant that party merchandising
rights to manufacture and sell products that embody the artists name and/or likeness, the
company has the right to match the terms of the deal.21 Before commencing a deal with a third
party to merchandise products, the company shall be notified. If the company does not agree to
enter into an agreement on the same terms within thirty days of the companys receipt of the
artists notice of such a proposal, then the artist may enter into an agreement with the third
party.22

21
22

Madeline Gioia, Deal Memo #2 Legal Issues in the Music Industry, 2010
The Musicians Business and Legal Guide, 2008, page 348