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DealMemo2:Recordcompany/artist,songwriter)

ExclusiveArtistsRecordingAgreement
IrepresentMAJORRECORDCOMPANYINC

1. Term
a. Theinitialtermstartsontodaysdateandwilllastforaperiodendingonthelast
dayofthetwelfthcompletemonthfollowingthedateofthedeliveryofthemaster
recordingsofanalbum.1
b. Thecompanyisgrantedfiveconsecutiveseparateoptionstoextendthetermfor
additionalperiods,eachhavingthesametermsandconditionsoftheinitialterm.
Ifthecompanychoosetoexercisetheoption,thecompanywilltelltheartist
aboutitbeforetheexpirationofthecurrentcontractperiod.Eachoptionperiod
willcommenceimmediatelyaftertheexpirationofthepriorcontractperiod.2
2. Territory
Thepublisherownsallright,title,andinterestinandtothesongsandtheseries
exclusively,inpermanency,throughouttheuniverse.3
3. Exclusivity
Theartistcannotrecordforanyothercompanywithouttherecordcompanys
approvalduringtheterm.4
4. RecordingCommitmentandDelivery
Theartistisrequiredtodeliveronealbumduringeachcontractperiod.Iftheartist
needsadditionaltimetocreatenewmaterial,thedeliveryscheduleisnegotiable.5
5. RecordingProcedure
Theartistandthecompanywillmutuallyagreeonthefollowingsbeforeproceeding
furtherprovided.Thefollowingsaretheselectionofproducerandthefinancialterms
1Halloran,Mark.TheMusician'sBusinessandLegalGuide.4thEdition.2008.P.286
2http://c.ymcdn.com/sites/www.producersguild.org/resource/collection/3B4F51D8515342F6A092
0BD108159374/Blank_Deal_Memo.pdf

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ofyouragreementwithsuchproducer;selectionofmaterial,includingthenumberof
compositionstoberecorded;andthedatesandlocationsofthestudiosforrecording
andmixing.6However,iftheartistandthecompanycantreachanagreement,the
companysdecisionwillfinish.Thecompanyhassignificantpowertoshutdown
recordingsessionsifcostsareescalatingbeyondthebudgetorifthematerialcoming
outofthesessionsdoesntsatisfythecompanysrequirement.7
6. GrantofRights
a. Thecompanyhastheexclusiverighttocopyrightallrecordingsinthecompanys
nameasauthorandownerofthemandtosecureallrenewalsandextensionsof
copyright.Everyrecordingwillbeconsideredaworkmadeforhireforthe
company.8
b. Thecompanyandeachpersonauthorizedbythecompanyhavetherighttouse
theartistsnameandanylikenessessuchasphotographs,portraits,caricatures,
andstillsfromanyartwork,autographs(includingcopiedsignatures)and
biographicalmaterialrelatingtotheartist(whetherornotcurrent),inconnections
themarketingandexploitationsforrecordings,records,andgeneralgoodwill
advertising,withoutcost.9
c. Duringtheterm,thecompanyhastheexclusiverighttoestablishandmaintainan
officialartistwebsitewithusingtheartistsprofessionalname.TheURLforthe
artistwebsitecanbeincludedontheartistsrecordsownedbythecompanyand
inanyadvertisingandmarketingmaterials.Thecompanyisthesoleand
exclusiveowneroftheofficialartistwebsiteandthecontentandoperationwillbe
controlledbythecompany.10Thecompanyisnotabletopostanymaterialthatis
notembodytheartistsperformances,anyadvertisementsorendorsementsfor
productsotherthanrecordingsembodyingtheartistsperformancesorservices,
withoutanagreementoftheartist.Afterthewebsitetermisexpired,thewebsite
issubjecttoboththeartistsandthecompanysreasonableapproval.Company
willprovideinformationobtainedaboutusersorvisitorstothesiteduringthe
contractedwebsiteterm.11
7. CreativeandMarketingMatters
Thecompanycantdothefollowingswithoutpermissionoftheartist.Thecompany
willnotlicenseforcouplingmorethantwo.Thecompanywillnotapplytosampler

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records,usesontransportationcarriers.Thecompanywillnotrelatetomidprice
recordsorbudgetrecords.12
8. AdvancesandRecordingcosts
a. Forthefirstalbum,therecordingfundwillbe$150,000.
b. Foreachasubsequentalbums,theamountofthefundwillbeinpayableinan
amountequalto662/3%oftheamountofnetroyaltiesearnedbytheartistfrom
thesalesoftheprioralbum.Thenetamountofartistroyaltieswillberegardedfor
12monthsfromthedayofreleasingofthealbum.
c. Theamountoftherecordingfundwillberecoupedsolelyfromroyaltiespayable
totheartist.13
9. Royalty
Theartistsroyaltyrateis12%afterrecoupingtheadvanceanditisprospectively.Itisbased
onthenetCDpriceafterdeductions.Theproducerispaid3%oftheroyaltyretrospectively
andthisamountispaidoutoftheartistsroyalty.Theserateswillbeadjustedtoall
subsequentalbums.14
10. Licensesformusicalcompositions
a. Thereis75%ofthecompositionenforcedlicenseratetotheuseofcompositionson
phonorecordsundertheUnitedStatesCopyrightLaw.
b. AloyaltypercontrolledcompositionsequalstotheU.S.75%rate.
c. Thisislimitedto10thsong.Thereisdifferentlatetoadditionalsongsanditis
negotiable.15
11. Merchandising
Iftheartistwantstohaveadealwithathirdpartytograntthatpartymerchandisingrightsto
manufactureandsellproductsthatembodytheartistsnameandlikeness,thecompanyhas
therighttomatchthetermsofthedealtobenomorefavorabletotheartistthanwhatwas
alreadyproposed.Ifthecompanydoesnotwanttoenterintoanagreementwiththeartiston
thesameterms,thentheartistcanenterintotheagreementwiththethirdparty.16

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INWITNESSWHEREOF,thepartiesheretohaveexecutedthisAgreementasofthe
dayandyearfirstabovewritten.

(SONGWRITER)

[MAJORRECORDCOMPANYINC]
BY:

NAMEANDTITLE(ANAUTHORIZEDSIGNATORY)

[ARTIST]
BY:

FEDERALI.D/SS#

SOCIALSECURITY#: