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Please review this Record Contract.

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Before my band signs with this small indie record label could any one offer any insight regarding this recording contract?


AGREEMENT: BAND NAME - "[insert album title here]"

By and between RECORD COMPANY (referred to as: RECORD COMPANY) and [INSERT YOUR
NAMES HERE] (referred to as both: you and Artist).

The following shall constitute the terms of the Agreement between you and
RECORD COMPANY, in respect of your exclusive recording services. Recording or record
shall mean all forms of recording and reproduction by which sound may be
recorded, now known or which may hereafter become known, manufactured or sold
whether embodying sound alone or sound synchronized with visual images, e.g.
"sight and sound" devices:

1. Territory: The Universe.

2. Term: The Term of this Agreement shall commence upon the date hereof and
continue until in perpetuity.

3. Delivery Commitment: Artist shall record, produce, and deliver the
Master(s) to RECORD COMPANY. The Master(s) shall be satisfactory to RECORD COMPANY in all respects,
and shall be delivered to RECORD COMPANY upon the date designated (August 15, 2001).

4. Creative: You have full musical control regarding the Master required to
be delivered hereunder. We shall have the right to choose a mastering
facility to master the master, and assign a graphic artist to prepare artwork
for packaging. The copyright of the artwork prepared solely by RECORD COMPANY will be
owned by RECORD COMPANY. Notwithstanding the foregoing, for the term only, Artist will
have the right in the territory to use this art at no cost on merchandise,

5. Ownership: The master(s) shall be our property for the Territory free from
any claims whatsoever by you or any person deriving any rights or interests
from you: (a) To manufacture, advertise, sell, lease, license, distribute, or
promote, in any or all fields of use by any method now or hereafter known,
records embodying the master(s) subject hereto, all upon such terms and
conditions as we may elect, or at our discretion, to refrain therefrom; (b)
To use, reproduce, print and publish, and to permit others to use, reproduce,
print and publish, your name (including any professional name heretofore or
hereafter adopted by you), approved photographs, approved portrait, approved
likeness, and approved biographical material concerning you for advertising
and trade purposes solely in connection with exploiting the master(s). (c) To
obtain copyrights and renewals thereof in sound recordings of the master(s)
subject hereto (as distinguished from the musical composition embodied
thereon) in our name as owner and "employer-for-hire" of such sound recording
(if any such master is determined not to be a "work made for hire" it will be
deemed transferred to us by this Agreement together with all rights in it);
(d) To perform the records publicly and to permit public performances thereof
by means of radio broadcast, television or any other method now or hereafter

6. Recording Costs: You shall be solely responsible for and shall pay all
recording costs incurred in the production of masters subject to this

7. Royalties: Conditioned upon your full and faithful performance of each and
all of the material terms of this Agreement, RECORD COMPANY shall pay you the following
royalties: (a) Basic Album Rate: 50% of the net profit for the Albums to be
delivered hereunder. Net profit will be defined as the total of monies
received for royalty bearing records sold and not returned minus any
recording and mastering costs, marketing and promotion costs, applicable
advertising costs, video costs, or other costs deemed applicable pursuant to
the Agreement. We will not include any internal overhead or salaries as
expenses of the project. (b) Proration: As to compilation records not
consisting entirely of masters delivered under this Agreement, we shall pay
you an all-inclusive fifteen (15) cents per song used per royalty bearing
album sold. We shall couple no more than 2 songs from this Album with the
songs of other artists without your consent, which may be withheld in your
sole discretion. (c) Non-Royalty Records: No royalties shall be payable in
respect of: (I) recordings given away or sold at less than 50% below stated
wholesale prices for promotional purposes; (ii) recordings sold as scrap,
salvage, overstock, or "cutouts", but not prior to 18 months following our
initial United States release of a full-priced record embodying such masters;
and (iii) recordings sold below cost. No royalties shall be payable on any
sales by our licensee until payment or credit therefor against advances
previously taken has been received by us in the United States. (d) Product
sold to you for your resale: We hereby agree to sell to you, for your resale
at live concerts only, a reasonable number of copies of any of your records
distributed by us embodying masters delivered hereunder at a price equal to
our lowest possible price. You shall be responsible for any obligation
including, but not limited to: (i) To yourself and any other recording
artists who perform on masters embodied thereon. (ii) To the producer of
masters embodied thereon. (iii) To the copyright proprietors of musical
compositions embodied thereon. (e) RECORD COMPANY will pay Artist 50% of any
advances/royalties from licensing masters to other labels, etc, within 30
days of RECORD COMPANY receiving this money. (f) Artist is responsible for collection of
all third party mechanical and performance royalties.


8. Accountings: Statements as to royalties payable under this Agreement shall
be sent by us to you at your address not less than two times annually on 6
month intervals following the initial release of the Album. Concurrently with
the rendition of each statement, we shall pay you the net royalties shown to
be due by such statement (if any), after first deducting all advances made to
you, all recording costs (if any) paid by us and all payments made by us on
your behalf. All payments pursuant to this Paragraph 8 shall be made to the
order of you. We shall be entitled to maintain a single account with respect
to all recordings subject to this Agreement. In computing the number of
records sold hereunder, we shall have the right to deduct returns and credits
of any nature. We shall have the right to withhold a portion of your
royalties as a reserve, which for Albums in any configuration shall be deemed
to be 25% of the Albums shipped during a given accounting period. At the end
of each accounting period, we shall credit your royalty account with the
royalty reserve withheld the month previous. At such time as a reserve is
liquidated, it shall be deemed to be a sale in the period in which it was
liquidated. If we make an overpayment of royalties for any reason, or if we
make a payment of royalties in respect of records subsequently returned, you
will reimburse us for the same, or alternatively; we may recoup such
overpayment from any monies becoming payable to you pursuant to this
Agreement. You shall be deemed to have consented to all accountings rendered
by us under this Agreement and said accountings shall be binding upon you and
shall not be subject to any objection by you for any reason unless specific
objection, in writing, stating the basis thereof, is given to us within 2
years after the date rendered, and after such written objection, unless suit
is instituted within 1 year after the date upon which we notify you that we
deny the validity of the objection. You shall have the right at your sole
cost and expense to appoint a Certified Public Accountant, or an attorney
suitably experienced in such audits, to examine our books as same pertain to
the recordings subject hereto, provided that any such examination shall be
for a reasonable duration, shall take place at our office during normal
business hours on reasonable written notice and shall not occur more than once
in any calendar year, and/or more than once for any particular statement.
You shall not have the right to examine our general ledger, manufacturing
records, or any documentation pertaining to other artists.

THESE CHECKS WILL BE SENT TO: [insert address here]
AND WRITTEN OUT TO: [insert name here]

9. Controlled Compositions: (a) All Musical compositions or material recorded
pursuant to this Agreement which are written or composed in whole or in part
by you or any producer of the masters, or which are owned or controlled,
directly or indirectly, in whole or in part, by you or any producer of the
masters (herein called "Controlled Compositions") shall be and are hereby
licensed to us: (a) For the universe, (b) We shall have the non-exclusive
right to issue synchronization rights (or any other publishing rights) of
Controlled Compositions. You shall advise any publisher you may become (or
are) involved with the provisions of this subparagraph. For the purpose of
this subparagraph, we shall not have the right to synchronize any master for
"x-rated" or political uses, or any advertisements. In the event we procure
any such synchronization pursuant to this subparagraph, 50% of the publishing
monies we receive shall be credited to your account. If you procure such
synchronization, 100% of the publishing monies we receive shall be credited
to your account.

10. Warranties and Representations: We warrant that we have the right to
enter into this Agreement. You warrant and represent that you are under no
disability, restriction, or prohibition, whether contractual or otherwise,
with respect to your right to execute this Agreement and perform its terms
and conditions. You further warrant and represent that we shall not be
required to make any payments of any nature for, or in connection with, the
rendition of your services or the acquisition, exercise or exploitation of
rights by us pursuant to this Agreement, except as specifically provided
herein. You warrant and represent that no materials provided by you
hereunder, or any use thereof in accordance with this Agreement, will violate
any law or infringe upon or violate the rights of any third party.
"Materials" shall include: (i) all musical compositions and other material
contained on the masters subject hereto, including but not limited to
so-called "samples" of copyrighted material or recordings belonging to any
person, firm, or corporation, (ii) each name used by you, in connection with
masters recorded hereunder, and (iii) all other materials, ideas, other
intellectual properties or elements furnished or selected by you and
contained in or used in connection with any masters recorded hereunder or the
packaging, sale, distribution, advertising, publicizing or other exploitation

11. Indemnity: You agree to and do hereby indemnify, save and hold us
harmless from any and all loss and damage (including court costs and
reasonable attorneys' fees) arising out of, connected with or as a result of
any inconsistency with, failure of, or breach or threatened breach by you of
any warranty, representation, agreement, undertaking, or covenant contained
in this Agreement including, without limitation, any claim by any third party
in connection with the foregoing.

12. Assignment: We shall have the right without your consent to assign this
Agreement and any benefits derived therefrom in whole or in part. Not
withstanding the foregoing, we shall not assign this Agreement during the
term without your consent.

13. Entire Agreement: This Agreement sets forth the entire Agreement between
the parties with respect to the subject matter hereof. No modification,
amendment, waiver, termination, or discharge of this Agreement shall be
binding unless confirmed by a written instrument signed by an officer of ours
and by you. A waiver of any term or condition of this Agreement in any
instance shall not be deemed or construed as a waiver of such term or
condition for the future, or of any subsequent breach thereof. All of our
rights and remedies in this Agreement shall be cumulative and none of them
shall be in limitation of any other remedy or right available to us. Should
any provision of this Agreement be adjudicated by a court of competent
jurisdiction as void, invalid or inoperative, such decision shall not affect
any other provision hereof, and the remainder of this Agreement shall be
effective as though such void, invalid or inoperative provision had not been
contained herein.

14. Approvals or Consents: Except as otherwise expressly set forth in this
Agreement, wherever in this Agreement your approval or consent is required,
such approval or consent shall not be unreasonably withheld. We may require
you to formally give or withhold such approval or consent by giving you
written notice, requesting same and by furnishing you with the information or
material in respect of which approval or consent is sought. You shall give us
written notice of approval or disapproval with 10 days after receipt of such
notice. In the event of disapproval or no consent, the reasons therefor

shall be stated.

15. Choice of Law: This Agreement shall be deemed to have been made in the
State of Michigan and its validity, construction, performance, and breach
shall be governed by the laws of the State of Michigan applicable to
Agreements made and to be wholly performed therein. You agree to submit to
the jurisdiction of the Federal or State courts located in either Oakland
County or Lansing in any action which may arise out of this Agreement and
said courts shall have exclusive jurisdiction over all disputes between us
and you pertaining to this Agreement and all matters related thereto.

16. Legal Counsel: You specifically acknowledge that you have been advised by
your own independent legal counsel concerning the interpretation and legal
effect of this agreement.

IN WITNESS WHEREOF, the parties hereto have executed this agreement on or
about the day and year first above written.

Very truly yours,





[insert your name AND social security number here]


[insert your name AND social security number here]


[insert your name AND social security number here]



How do I say this? As a person who wrote such contracts, negotiated such contracts on both ends, I can tell you this:


The language is boilerplate but you don't want to get screwed.


I am a law school graduate. What I offer is mere information, not to be construed as forming an attorney client relationship.

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