Tyler Stankelis

Deal Memo #2

Nepkie

Recording Agreement, KART Entertainment Records

Term

The term between KART Entertainment Records and The New Age Hipsters will
be in effect on the date this agreement is signed, and it shall continue for an
Initial Period of twelve months following the publication of the master recordings
of three albums.1 The company is granted three consecutive separate options to
extend the term for further periods, each of which contain the same terms and
conditions that will apply until the Initial Period, except as otherwise specifically
set forth herein. The artist will be notified of renewal, and upon notification, the
second option period will begin at the end of the current contract2

Exclusivity
The New Age Hipsters cannot record for any other company, unless KART
Entertainment Records has written that it does not plan to record songs in the
future under the contract.

Territory
Any song recorded by The New Age Hipsters may be exploited in all regions.
Countries in question should be negotiated between the artist and the record
label. Canada will receive a 75% rate. UK will receive 80% rate. Japan, Australia,
New Zealand & the EU will receive 70%. Rest of the world will recieve 60%. 3

Recording Commitment

The artist will deliver three albums during each contract period. The record label
will decide the scheduling and coordination of recording sessions, but must give
the artist a 31-days notice.4

1 The Musicians Business and Legal Guide, 4th edition, page 286
2 The Musicians Business and Legal Guide, 4th edition, page 287
3 The Musicians Business and Legal Guide, 4th edition, page 310
4 The Musicians Business and Legal Guide, 4th edition, page 288

Recording Procedure

Prior to the beginning of each individual recording session, both parties shall
mutually agree on the following before further proceedings:
The artist, the artists manager and the company must mutually agree on the
producer chosen and the financial terms of the artists agreement with that producer,
the selection of songs to be recorded, and the locations where the recording and
mixing will take place5. If the artist, the artists manager and the company cannot
reach an agreement, the artists manager will have final decision.
Recordings must be delivered to KART Entertainment Records within forty-eight (48)
hours following each recording session, with valid Certificates of Employment for all
producers and mixers in KART Entertainment Records then-standard form, and all
necessary W-4 and other tax forms.
Changes in recording budget shall be sent to KART Entertainment Records within
two weeks (fourteen days).6

Grant Rights

All recordings embodying the performances of Artist recorded during the Term or
submitted hereunder from the inception of the recording thereof, and all
reproductions derived therefrom, together with the performances embodied
thereon, shall be the property of company in perpetuity for the territories agreed
upon.7

5 The Musicians Business and Legal Guide, 4th edition, page 289
6 The Musicians Business and Legal Guide, 4th edition, page 290
7 The Musicians Business and Legal Guide, 4th edition, page 292
8 The Musicians Business and Legal Guide, 4th edition, page 302
9 The Musicians Business and Legal Guide, 4th edition, page 308
10 The Musicians Business and Legal Guide, 4th edition, page 348
11 The Musicians Business and Legal Guide, 4th edition, page 319

Advances and Recoupment

For all albums recorded under this contract, the recording funded will be a fixed
amount of $150,000 dollars (US). For subsequent albums, the amount of the
fund will be determined by 66.66% multiplied by the gross amount of royalties
earned by the artist from sales of the prior album. The gross amount of artist
royalties will be measured from the period up until 12 months after the date the
album subject to the recording fund is actually delivered.8

Artist and Producer Royalty

The artist royalty rate is 15% after fully recouping the advance and is paid to him
prospectively. The producer royalty rate is 5% after fully recouping the advance.
The amount is paid out of the artist royalty. 9

Merchandising

5 The Musicians Business and Legal Guide, 4th edition, page 289
6 The Musicians Business and Legal Guide, 4th edition, page 290
7 The Musicians Business and Legal Guide, 4th edition, page 292
8 The Musicians Business and Legal Guide, 4th edition, page 302
9 The Musicians Business and Legal Guide, 4th edition, page 308
10 The Musicians Business and Legal Guide, 4th edition, page 348
11 The Musicians Business and Legal Guide, 4th edition, page 319

If the artist wants to enter a deal with a third party to grant the party
merchandising rights to manufacture and/or sell products that embody the artists
name and likeness, the company has the right to match the terms of the deal. If
KART Entertainment Records does not want to enter into an agreement with the
artist or the same terms, the artist is granted the right to make an agreement with
the third party without the label present in the agreement. 10

Except as otherwise set forth herein, all notices under this agreement shall be in
writing and shall be given by courier by reasonable delivery services. 11

Notices

To The New Age Hipsters

Tyler Stankelis
7 Florence Pl.
Center Moriches, NY, 11934

To KART Entertainment Records KART Entertainment Records

72 Kootenai St. Boise, Idaho 83701