EXHIBIT 10.2
PRESSING AND DISTRIBUTION LICENSE MADE THIS DAY 9/1/08
BY AND BETWEEN
Famous Records, Corp. (THE RECORD LABEL)
0000, XXXXX XXXXX XXXXX, #000, XXXXX XXXXXXX, XX 00000
AND
1 A-Chord Records (THE PRODUCTION COMPANY)
000 XXXXXXX XXXXXX X.X., XXXX XXX, XX 00000
WITNESSETH
THE FOLLOWING WHEN EXECUTED BY BOTH PARTIES HERETO SHALL CONSTITUTE THE
AGREEMENT BETWEEN US.
PRODUCT
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1. The production company shall supply the record label with the finished
"Master" recordings as listed on schedule "A" attached hereto for
distribution on an exclusive basis during the term & on terms & conditions
as hereafter set forth.
2. The production company warrants & represents to submit masters which they
have sole and unquestionable rights and indemnifies the record label
against any legal action directly resulting on any infringement of
copyrights owned by a third party and is responsible for paying all artist
& production costs & royalties that may accrue.
3. The record label agrees to have an album commercially released within 6
months following all finished product submitted and accepted. Failure to do
so results in the automatic termination of this agreement, which will be
null, & void and the masters may be returned to the production company on
reimbursement of any expenses made by the Record Label. The production
company will have its logo printed on each record label as well as on the
inlay cards of CDs and all advertising material.
PRESSING/PROMOTION/DISTRIBUTION
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4. The record label will pay for labels, pressings and CDs including shipping,
artwork & printing on behalf of the production company as well as the
payment of any mechanical & copyright royalties.
5a. The production company agrees to help promote each record released to the
best of its ability. The record label promises, at its own discretion, to
pay for promotion, agreed to by the production company or artist, of at
least $25,000 which will be recoupable from payments received from the
record label's distributor.
5b. The production company must give written consent to costs exceeding $25,000
prior to any further promotion done on its behalf.
5c. A number of promotional copies of vinyl and CDs will be allocated to the
production company and charged against royalties at cost. Quantities will
be agreed between p/c and label and will be dependent on initial demand of
commercial product. Promotional copies will be made available within 60
days of receipt of the finished masters and complete label & booklet
information.
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5d. If & when a video is required, the production company will liaise with the
record label to arrange to have the video shot at the most reasonable cost,
in regard to company & location. Any financial outlay or costs entailed by
the record label will be recouped against record sales. The production
company will be able to approve the editing of the "final" video.
5. The record label warrants & represents that it has the ability & shall and
use all reasonable efforts to market the p/c's recordings throughout the
United States to all record stores and other non traditional outlets
through their distributor (and also by way of exports & sub licensing to
countries throughout the world ).
6. The record label will also take care of all "digital" & download sales.
ROYALTIES
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7. On all overseas sub-licensing agreements & export sales, the production
company will receive 50% (fifty-percent) of all advances & royalties
derived after the deduction of any initial costs.
8. On all domestic sales the production company will receive 60% (sixty
percent) of the total receipts after any additional recording,
manufacturing or promotional costs (as set out in clause 10a.)
9. Statements for all sales (records shipped & paid for) will be sent
quarterly on receipt of payments from our distributor with payments for
royalties due, as set out in the record label's current Distribution
Agreement either with XXXX Entertainment or FONTANA / UNIVERSAL
Distribution, depending who we use.
10a Royalties are paid & calculated after any manufacturing costs and for any
other recoupable costs borne by the record label which may include any or
all other following:- Art-work designs, corrections or additions to same,
film, printing of stickers, posters, labels, booklets, tray cards or any
other promotional paraphernalia. Mastering, metalwork & stampers.
Additional recording costs, shipping costs and mailers and any other "out
of pocket" expenses directly used on behalf of the production company.
Recording costs shall be deemed to mean any cost of studio time,
production, re-mixing, equalizing, pre-mastering and any other costs
incurred customarily recognized in the music industry. Any mechanical &
copyright royalties paid by the record label. Any cash advances made
directly to or on behalf of any Artist not related to the cost of
promotion.
10b The production company is bound by any of the provisions contained in the
XXXX or XXXXXXX Distribution Agreement & any subsequent domestic or foreign
distribution agreements entered into by the record label but only with the
prior knowledge & agreement by the production company who may elect not to
participate in such Agreement after receiving a copy to review & requests
in writing to be excluded from such agreement.
TERM
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11. The term of this agreement shall be for 5 yrs. (Five years) from the
official release date of each CD or DVD released, with a six month
"sell-off" period, after which time the masters will revert back to the
production company, unless this agreement is extended by mutual consent
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PROPERTY RIGHTS
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12a. During the term of this Agreement, all masters shall remain the sole and
exclusive joint property of the production company & the record label and
may be made available for sale in all formats including internet sales by
way of commercial software, by digitally loading-down or by ways not yet
technically possible and may be licensed to any third party for any term
covered in this agreement.
12b. The record label retains the right of first refusal on any follow-up album
to be recorded by any artist or named group subject to this agreement
TERRITORY
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13. The territory is for the world.
ARTISTS
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14. All artists and producers subject to this agreement are listed on SCHEDULE
A below.
15. The production company or his representative retains the right to audit the
company books regarding sales, expenses & royalty statements by giving 7
days written notice to the company.
16. This agreement shall be construed as to the laws of Florida.
Read, agreed and accepted by:
/s/ XXXXXXX XXXXXXX /s/ XXXXXX X.XXXXXX XX.
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XXXXXXX XXXXXXX- (PRESIDENT) XXXXXX X.XXXXXX XX.
FAMOUS RECORDS, CORP 1 A-CHORD RECORDS
---SCHEDULE---
ARTIST TITLE(S)
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T/B/D T/B/D
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