This is a sample recording agreement between a record company and a recording artist.
This agreement sets forth all of the necessary terms, such as: the term or product,
recording funds, artist royalties, mechanical royalties, creative control, videos,
company’s rights, independent promotion and release. This agreement can be used by
recording artists or record companies that want to enter into an agreement for the
creation and production of a musical composition or album.
___________ [Instruction: Insert Name of Recording Company]
___________ [Instruction: Insert Address 1]
___________ [Instruction: Insert Address 2]
___________ [Instruction: Insert Date]
___________ [Instruction: Insert Name of Artist(s)]
___________ [Instruction: Insert Address 1]
___________ [Instruction: Insert Address 2]
RE: ___________ [Instruction: Insert Name of Recording Company] -w-
___________ [Instruction: Insert Professional Name of Artist] – Exclusive Recording
Agreement
Gentlepersons:
This letter shall confirm the material terms of the exclusive recording agreement reached
between you and ___________ [Instruction: Insert Name of Recording Company]
(“Company”) with respect to the exclusive services of ___________ [Instruction: Insert Name
of Artist(s)] (individually and collectively p/k/a “___________” [Instruction: Insert
Professional Name of Artist], and henceforth referred to herein as “Artist”) as a recording artist.
Artist hereby represents and warrants that during the term of this agreement Artist will furnish to
Company the exclusive recording services of Artist in the Territory. Artist and Company
acknowledge that it is the parties’ mutual intent to enter into a more formal agreement (the
“Long Form Agreement”) at a later date.
All capitalized terms used herein shall have the same meaning attributed to such terms in the
Long Form Agreement. Company and Artist hereby agree to negotiate in good faith each of the
terms of the Long Form Agreement that are not specifically set forth herein, provided that
Company shall have no obligation to deviate from the terms set forth in the Long Form
Agreement to the extent that such terms are customary for a new artist of Artist’s stature on
Company’s label, and provided further, that the terms of the Long Form Agreement (as modified
and supplemented by the terms hereof) shall remain in full force and effect until such time as the
Artist and Company execute the Long Form Agreement.
1. Territory. Universe
2. Term/Product. ___________ [Instruction: Number of Contract Periods] consecutive
contract periods (each a “Contract Period”), with one (1) long play album (“LP”) during the
initial Contract Period and, at Company’s option, one (1) LP during each option Contract Period,
for a total of six ___________ [Instruction: Number of Contract Periods] LPs (the
”Committed LP(s)”). Options shall be exercised in accordance with the terms of Company’s
standard Long Form Agreement
3. All-in Recording Funds.
A. In connection with the delivery of Committed LPs hereunder, Company shall pay Artist
the following “All-in Recording Funds” (i.e. inclusive of all Advances and fees payable to Artist,
producers, and any other third parties, and of all recording costs in connection with such Album):
LP # All-in Recording Fund
1-2 $___________ [Instruction:
Insert Amount]
3-4 $___________ [Instruction:
Insert Amount
5-6 $___________ [Instruction:
Insert Amount
B. Company will be responsible for administering all recording costs, subject to a budget to
be approved by Company. Company agrees to approve a realistic and legitimate budget for any
particular Committed LP that does not exceed eighty-five percent (85%) of the then-remaining
applicable All-in Recording Fund for such LP.
C. ___________ percent (__%) [Instruction: Insert Percent] of the All-in Recording Fund
for each Committed LP shall be paid promptly following Company’s approval of the budget,
producers, studios, and compositions to be recorded, and commencement of recording of the LP.
The remainder of the All-in Recording Fund shall be paid promptly after delivery of the LP
concerned (less all recording costs).
4. Artist Royalties. Company will accrue royalties to Artist’s royalty account, at the rate set
forth below, and calculated in accordance with the applicable provisions contained in the Long
Form Agreement. Such royalties shall be based on United States Normal Retail Channel
(“USNRC”) sales of Records consisting entirely of Masters recorded hereunder. Royalties will
accrue on one hundred percent (100%) of records sold, paid for, and not returned. Company will
have the right to withhold reasonable reserves against returns. Royalties will not be payable on
“Free Goods”. Company’s policy on Free Goods will be as set forth in the Long Form
Agreement.
A. USNRC sales of top line Records (the “Base Rate”): ___________ percent
(__%)[Instruction: Insert Percent]of manufacturer’s suggested retail price (“MSRP”).
B. Ex-U.S. top line sales:
Territory Rate