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I.

INVOLVED PARTIES:
This recording deal is representing the Record Company who is contracting the Artist.
II. TERM:
(1) The Term will begin upon the signing of this agreement. The term shall continue for
an initial period ending on the last day of the twelfth month, following the retail
street date delivery of one album.1
(2) Artist agrees to grant the Record Company three back-to-back Option Periods to
extend the Term. Option Periods will follow the same terms and conditions stated in
the initial term agreement, unless otherwise specified.2
(3) If Record Company has not notified Artist of renewal of term thirty days prior to end
date, the contract shall end in void at the final day. All monies owed shall be
collected, and the Artist cannot sign under another label until all recoupable income
has been paid.3
III. EXCLUSIVITY:
Artist shall not partake in any recording services outside of Record Company,
specifically recording under any other label. All services related to the making of
Recordings and Records by Artist will be exclusive to Record Company. Artist will agree
to engage solely with Record Company during the Initial Period and all other Option
Periods.4
IV. RECORDING COMMITMENT AND DELIVERY:
(1) Artist shall agree to Deliver one album per Contract Period, including the Initial
Period, and the three Option Periods.5
(2) Artist will be required to Deliver each album under the recording commitment within
nine months following the beginning of the appropriate contract period.6
V. RECORDING PROCEDURE:
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Halloran, Mark. The Musician's Business and Legal Guide. 4th Edition. 2008 pg 286
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Halloran, Mark. The Musician's Business and Legal Guide. 4th Edition. 2008 pg 287
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Halloran, Mark. The Musician's Business and Legal Guide. 4th Edition. 2008 pg 286
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Halloran, Mark. The Musician's Business and Legal Guide. 4th Edition. 2008 pg 288
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Halloran, Mark. The Musician's Business and Legal Guide. 4th Edition. 2008 pg 289
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(1) Before recording procedures begin in any contract period, a mutual agreement
between Artist and Record Company must be made on the following items. However,
if a mutual agreement cannot be reached, then Record Company shall make the final
decision:
a) selection of the producer and the financial terms the agreement with the
producer,
b) selection of material, including number of compositions to be recorded,
c) and dates and locations of recording and mixing and the studios where
recording and mixing are to take place.7
(2) Artist will submit in writing a proposed recording budget to Recording Company at
least fourteen days prior to the suggested date of the first recording session. The
recording budget should be a detailed document which lists all anticipated recording
costs. Recording shall not begin until a written approval of the budget is received by
Record Company.
a) Any recording costs acquired during the recording process that are not
included in the approved budget will be of sole responsibility of Artist,
unless Record Company agrees to pay excess costs.
b) If Record Company agrees to pay excess costs, Artist will be responsible
for reimbursement to Record Company upon demand.8
(3) Record Company shall be able to discontinue a recording session under reasonable
anticipation that the recording costs will exceed the approved budget, or that the
Masters will not be technically and/or commercially satisfactory.9
VI. GRANT OF RIGHTS TO COMPANY
(1) Record Company shall be granted all perpetual rights to records, whether coupled
with visuals or not, videos and artwork that are created under this recording
agreement, as they will be considered works made for hire.10
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Halloran, Mark. The Musician's Business and Legal Guide. 4th Edition. 2008 pg 294
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(2) Record Company shall be granted the right to use Artists name and likeness in
connection with the marketing and exploitation of records for advertising and
promotional purposes. This will include only photos and likenesses taken during the
term of this agreement.11
(3) Record Company shall be granted the exclusive right to establish and maintain
Artists official website, which Record Company will be the sole owner of. All
website content will be controlled by Record Company. Artist retains approval rights
over the inclusion of non-commercial material such as interviews, live
performances, outtakes, pictures, etc.12
VII. CREATIVE AND MARKETING CONTROL
(1) Artist will agree to cooperate with Record Companys efforts to promote throughout
the territory any records released under this agreement. All promotional activities
will be at the expense of Record Company.13
(2) Artist will submit photographs and biographical material to Record Company to use
in association with promotion of records. All materials furnished by Artist to Record
Company will be considered approved by Artist.14
(3) If Artist plans on participating in other professional activities, such as touring and
acting, Record Company shall allow Artists other obligations to take priority over
promotional obligations.15
VIII. ADVANCES AND RECORDING COSTS
(1) Upon approval of proposed recording budget by Record Company and other invoice
receipts, Record Company shall pay a fixed amount of $100,000 to Artists recording
fund to cover all recording costs incurred in the production of masters comprising
the first album. Recording fund will be payable as follows:
a) fifteen percent shall be paid to Artist following the execution of this
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Halloran, Mark. The Musician's Business and Legal Guide. 4th Edition. 2008 pg 294
Halloran, Mark. The Musician's Business and Legal Guide. 4th Edition. 2008 pg 294-296
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Halloran, Mark. The Musician's Business and Legal Guide. 4th Edition. 2008 pg 298-299
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Halloran, Mark. The Musician's Business and Legal Guide. 4th Edition. 2008 pg 298
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Halloran, Mark. The Musician's Business and Legal Guide. 4th Edition. 2008 pg 299
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agreement;
b) remaining balance, if any, shall be paid to Artist after recording costs and
other advances associated with the first album by Record Company have
been deducted.16
(2) The amount of the recording fund for each consecutive album following the initial
period will be calculated by two thirds multiplied by the gross amount of royalties
earned by the Artist from the sales of the prior album. The gross amount of royalties
will be determined from the period up until 12 months after the date the album is
delivered.
(3)

The recording fund for each subsequent album following the first will be no less
than the minimum amount and no more than the maximum amount as set forth
below17:
ALBUM

MINIMUM

MAXIMUM

Second Album
Third Album

$125,000
$150,000

$200,000
$225,000

Fourth Album

$175,000

$250,000

(4) The entire amount of the recording fund paid by Record Company to Artist is
recoupable solely from artist royalties.18
IX. MECHANICAL ROYALTIES
(1) Record Company shall pay 3/4 of the lowest statutory rate on each album that has up
to ten songs.
(2) Any album that exceeds the cap of ten songs shall be paid for by Artist. Any cover
songs recorded by Artist where the Publisher requires to be paid full statutory rate
will be paid for by Artist.19
X. ARTIST AND PRODUCER ROYALTIES
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Halloran, Mark. The Musician's Business and Legal Guide. 4th Edition. 2008 pg 302-303
Halloran, Mark. The Musician's Business and Legal Guide. 4th Edition. 2008 pg 302-305
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Halloran, Mark. The Musician's Business and Legal Guide. 4th Edition. 2008 pg 302
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Halloran, Mark. The Musician's Business and Legal Guide. 4th Edition. 2008 pg 97, 320
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(1) Artists royalty rate throughout the term of this agreement, including the initial
period and all other subsequent periods, will be 14%, and will be based on the CD net
price
after a 25% packaging deduction.
(2) Artist royalties will be paid to the artist prospectively after being fully recouped.
(3) Producer will be paid directly by Record Company out of the royalties payable to
Artist after all advances are fully recouped.
(4) Producers royalty rate will be 3% and royalties will be paid retrospectively.20

20

Halloran, Mark. The Musician's Business and Legal Guide. 4th Edition. 2008 pg 308