Producer Agreement
Service:
Advance:
Royalty:
Producer shall perform all services in connection with the Master(s) as are customarily performed by producers in the recording industry. The Master(s) shall be commercially and technically satisfactory to both Company and Distributor for the manufacture and sale of records.
Company shall pay or shall cause Distributor to pay Lender a recoupable advance of Eighty Thousand Dollars ($80,000.00) (the “Advance”). The Advance will be paid as follows: (a) Fifty Percent (50%) upon the later of (i) Producer’s commencement of services hereunder and (ii) the complete execution of this Agreement; and (b) the balance upon the later of (i) Producer’s delivery and Company’s and Distributor’s acceptance of the Master(s) as technically and commercially satisfactory in Company’s/Distributor’s sole discretion, such delivery elements including, but not be limited to, session files and releases, mixes, radio edits, sample clearances, and all documentation reasonably required by us and/or Distributor to perfect our rights in and to the Master(s) as sole owner and copyright holder thereof, to timely comply with applicable law, all union requirements (including providing such unions with the appropriate credit for all performers on the Master(s), identifying their performances) and our obligations to Distributor, and (ii) the complete execution of this Agreement.
Company shall pay or shall instruct and cause Distributor to pay to Lender the following “Base Rate” in connection with the Masters a royalty in the amount of One Percent (1%) PPD as defined in the “Producer Royalty Provisions”, attached as Schedule 2 and made a part hereof, and pursuant to the irrevocable letter of direction annexed hereto and incorporated by reference herein as Exhibit B on top-line USNRC Net Sales of Records (as defined in the Recording Agreement, the relevant provisions of which [including without limitation, royalty calculation, accounting, audit and controlled composition provisions and all relevant definitions] are attached hereto as Exhibit A [the “Recording Agreement Extracts”]) (“Producer’s Royalty”). Producer’s Royalty shall be calculated, 2 determined, adjusted reduced on the same basis (without regard to sales based escalations or Artist’s overall recoupment status) as Distributor calculates, determines, adjusts, reduces and pro-rates Artist’s royalties under the Recording Agreement, and payment of Producer’s Royalty shall be subject to the terms and conditions as embodied in the Producer Royalty Provisions and the Recording Agreement Extracts, as applicable.