I am Suzy Cohen and I am representing the Record Company in their agreement with the Artist.

Exclusive Services
The Artist agrees to enter into an exclusive deal for their services to the Record Company for as long as
this contract remains in term. 1
Term
The initial term is agreed to be for 12 months following the delivery of the final master of the recorded
album. There will be six (6) additional term options, all following the same terms and conditions of the
initial period. The artist will send a notice to the Record Company if they choose not to extend the
options within thirty business days of the term or option ending. 2
Recording commitment and Delivery
The artist agrees to deliver, in the form of an external hard drive, completed masters for a finished
album for each contract period. A new album may not be recorded within two (2) years of the previous
album's delivery date. 3
Recording Procedure
The Record Company and the artist agree to mutually agree on a producer, recording location, financial
terms, selection of material, and dates. The artist agrees to send 14 days in advance a finalized
recording budget plan to be approved by the Record Company. The album will consist of all original
material. It will consist of only members of the artist group. It will consist of no more than 40 minutes
of playing time and all of the recordings will be of equal recording value. 4
Grant of Rights
Once in possession of the final masters, the copyrights for the recordings will belong to the Record
Company without exception. Each recording will be considered a work for hire for the company and
the artist will have no claim to them. The Record Company and those authorized by the Record
Company will have the right to allow others to use the artist's likeness and creative works for the
purpose of promotion and advertising. The Record Company will have complete control of the
1
2
3
4

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Company-Artist website. 5
Creative and Marketing Matters
All pictures and biographical material in relation to the artist must first be approved by the Record
Company prior to its release. The artist also agrees to appear for on-screen, radio, and print exclusive
interviews as per reasonable request by the Record Company. Should all conditions be met, the Record
Company agrees to release each final album created by the artist within a 120 day period following the
delivery of the final master. If the Record Company fails to release the album within that time frame,
the artist has the right to terminate the term within fifteen (15) days following the end of the 120 day
period. 6
Advances and Recording Costs
The Recording Company agrees to pay all costs related to the album recording upon receipt of the
invoices if they are included in the approved recording budget. These costs will be deducted from the
artist's advance and are recoupable. The first album will have a recording fund of twenty thousand
dollars ($20,000). Ten (10) percent shall be paid once the agreement goes into effect and the balance
will be paid after deduction of a recoupments. Following albums will have recording funds that are 66
2/3 percent less than either the total amount of net royalties earned immediately after one (1) album, or
the total amount of net royalties earned immediately after two (2) albums. The Record Company will
not hold payment for more than forty-five (45) days after receipt of the album masters. 7
Producer Services
The artist agrees to be responsible for all engagements with their desired producer as well as payment.
The artist will give the Record Company a letter of direction so that the Company can pay them on the
artist's behalf. The Record Company may recoup these payments. 8
Royalties
The artist will receive the basic US royalty rate for all basic presentation formats and option periods,
including new technology formats. In Canada, royalty rates will be 85 percent. In the United Kingdom,
royalty rates will be 80 percent. In Japan, Australia, and non-stated EU members, royalty rates will be
5 The Musicians Business and Legal Guide, 2008, pages 292-296
6 The Musicians Business and Legal Guide, 2008, pages 298, 300
7 "Record Label Contract Sample.rtf." Google Docs. N.p., n.d. Web. 01 May 2015. , The Musicians Business and Legal
Guide, 2008, pages 302-306
8 The Musicians Business and Legal Guide, 2008, page 307

75 percent. In the rest of the world, royalty rates will be 60 percent. The royalty rate for and works the
Record Company licenses for on-demand usages will be a percentage of net receipts equaling one
hundred and twenty (120) percent.

Statements and Payments

Every June 30 and December 31 that the artist continues to remain under agreement with the Record
Company, the Record Company will produce a statement of all royalties earned by the artist. The
Record Company will then pay those royalties after deducting advances made before the statement but
will have no right to collect the recoupments owed to them. The artist must pay that under their own
power. 10
Notices
All notices are to be in writing and delivered by courier, personal delivery, overnight delivery service,
or registered or certified mail to the specified address. 11
Licenses for Musical Compositions
The Record Company reserves the right to license the artist's controlled compositions for 75% of the
US rate and the Canadian equivalent. The maximum mechanical rate for any song will not exceed two
(2) times the agreed US rate, nor Canadian. If the rate does go over the rate, then the mechanical rate
will be reduced by the amount of excess. The artist agrees to allow the Record Company to exploit their
works in territories both foreign and domestic. 12
Events of Default
If the artist does not fulfill any part of the agreement with the Record Company, then the Record
Company has the right to terminate the agreement and demand that their recoupables be paid back. If
the artist does not deliver the finished album by the specified delivery date, then the Record Company
may reduce the advance or the recording fund by as much as ten (10) percent for every thirty (30) days
that the album is not delivered. Should a force majeure occur, then the Record Company reserves the
right to suspend this agreement for an indefinite period of time. If the artist sustains a debilitating injury
for longer than ninety (90) days or declares bankruptcy, then the Record Company reserves the right to
9
10
11
12

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suspend the agreement, terminate the term, or withhold payments and royalties. 13
Injunctive Relief
The artists promises that their content is original and their own. The artists is liable if there is any
breach of goodwill. They are legally at fault and not the Record Company if any infringement suits are
filed. 14
Warranties
Both the Record Company and the artist promise that they have the capacity to enter into this
agreement. All of the agreements made are in good faith and agree to abide by what has been laid out
for them to do. 15
Collective Bargaining Agreements
The artist agrees to remain a member of good standing within a labor union which the Record
Company may contractually require the artist to join. 16
Videos
The Record Company and the artist will agree on creative aspects of videos, including but not limited
to scripts, production teams, storyboard, locations, directors, dates, and times. The Record Company
will pay for all costs in regards to the video which the artist will in turn recoup. The artist will be
directly responsible for any cancellation fees caused by their tardiness and improper behavior. 17
Group Provisions
In the event where a member of the artist group refuses to perform with the group, be it for injury,
death, or choice, they will continue to receive royalties for works that bear their name and are
continuously exploited by the Record Company or sold. They waive any further creative right that the
remaining members of the group retain. They will also not hold any further new copyrights that the
group produces. If the leaving member returns to the group, a reunion notice if required of the artist
within thirty (30) days of the event. The previously left member will regain full rights and privileges
13
14
15
16
17

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that they had waived before. 18

18 The Musicians Business and Legal Guide, 2008, page 333