Non-Exclusive Lease Agreement

The following shall constitute an Agreement ("Agreement") on this the ___ day of ____, 2009 between __________ (hereinafter referred to as "Producer") and __________ (hereinafter referred to as "Artist"). The terms of this Agreement are as follows:

1. ENGAGEMENT: The Agreement is in regards to the Producer’s musical composition (hereinafter referred to as the “Said Title.”): __________

2. COPYRIGHTS AND OWNERSHIP OF MASTERS: Producer shall be considered the author of the Said Title recorded on the Master hereunder which is written or composed by Producer, in whole or in part, alone or in collaboration with Artist or with others. Producer shall retain full copyright and ownership of Masters as author of Said Title. The Said Title would be leased on a non-exclusive basis; therefore, the Producer reserves the right to continue leasing and/or selling the Said Title without prior written consent from the Artist. The Producer does not grant the Artist the right to lease or sell the Said Title. Appropriate credit as an author of the Said Title shall be given to Producer for publishing purposes. Artist shall have the right to incorporate lyrics with the Said Title created hereunder to create a new song (herein referred to as “New Song”) and Artist shall have the right to give the New Song a new title and register the New Song for copyright, providing Producer the copyright credit in the musical composition in the New Song as set forth in this Agreement. Artist shall retain full copyright and ownership of Masters as author of any and all lyrics that are incorporated with Said Title. As such owner and author of said lyrics, Artist reserves the right to incorporate said lyrics, in whole or in part, with another musical composition without prior written consent from Producer. Producer and Artist shall share ownership of the copyright and Master recording created under this Agreement as follows:

Producer - 50%, Artist - 50%

Neither party will publish the New Song without the prior written consent of the other party. In the event of such publication, such compensation shall be accorded to each party based on the above stated percentages. Both parties agree that all copyright and ownership of the Said Title and Master shall not be transferable, unless otherwise agreed upon in writing.

3. PAYMENT: Artist agrees to pay Producer _________ for the Production Fee of the Said Title. This Production Fee is non-recoupable and is to be paid to the Producer without a hitch. One ____________ (the posted Non-Exclusive rate is 10% of the "Production Fee") is due upon signing this agreement. The __________ balance is due upon signing a record deal with a major record label. In the event that the Artist does not sign a record deal within one year from the date of this agreement, the Artist may no longer shop the New Song to record labels or production companies and the balance will not have to be paid to the Producer. The Artist may use the Said Title for only one profitable commercial recording or broadcast purpose and the New Song must be made available to the public within one year from the date of this agreement. For each additional commercial or broadcast recording, the Artist agrees to pay the Producer another ______________ (total "Production Fee"), to be paid in full, immediately upon request. The interest rate will be 10% compounded weekly until paid in full. In the event that the Artist signs a record deal, the Artist must have the New Song placed on a subsequent LP. The Artist must also allow the Producer to produce one or more additional tracks on a subsequent LP. If the New Song is used on an album sold by the Artist, the Producer will be entitled to back-end producer royalties. Back-end payments must be made to the Producer every three months after the record release date. The record release date is the day the record is available for digital download or the day the compact discs are estimated to arrive at the Artist’s residence; whichever day comes first. Failure to accurately report physical sales will result in the Producer receiving a payment of the difference owed with a 10% fee added to the total amount. The interest rate will be 10% compounded weekly until paid in full. If the New Song is used on an album sold by the Artist for a major record label, the Producer will be entitled to back-end producer royalties with an advance against producer royalties in the amount of Five Thousand Dollars ($5,000.00). The advance is a down payment or deposit on those royalties that are paid to the Producer by the Artist, production company or record label. The advance is due upon signing with a major record label. The advance is recoupable against the amount of back-end producer royalties that the Producer is owed by the record label. The total producer royalties (of all Producers) will be 3% of the album. The Producer’s royalty will be calculated on a pro rata basis, in proportion to the number of Producer tracks compared to the total number of tracks comprised on the album. The Producer shall receive 3% of every digital sale of the New Song. The Producer will receive royalties retroactively based on all records sold, including those that were sold before the point recording costs were recouped. The “all-in” amount given to the Artist by the Record Label is an “all-in” fund. The Producer’s recoupable advance is only a small portion of that fund. The Artist is responsible for recouping that fund and the Producer is only responsible for recouping the Producer advance, which is the defined portion of the “all-in” fund. Records of sales of any records featuring the New Song must be presented to Producer upon request. All payments must be made to the Producer by check, money order or in cash. Once the Artist purchases the rights to use the Said Title, the Producer will give the Artist a compact disc (CD) or digital versatile disc (DVD) containing the complete Said Title in .wav format and each track that comprises the Said Title, broken into separate individual .wav files. All payments to the Producer are non-refundable.

4. NAMES & LIKENESS: Producer grants the Artist the world wide right in perpetuity to use and to permit others to use Producer's name (both legal and professional, and whether presently or hereafter used by the Producer) and likeness concerning the Producer for purposes of trade and otherwise without restriction in connection with the Master recorded hereunder, the Records derived therefrom. Producer requires written permission from Artist anytime the Artist would like to use other identification and biographical material concerning the Producer for purposes of trade and otherwise without restriction in connection with the Master recorded hereunder, the Records derived therefrom. Artist grants the Producer the world wide right in perpetuity to use and to permit others to use Artist's name (both legal and professional, and whether presently or hereafter used by the Artist) and likeness concerning the Artist for purposes of trade and otherwise without restriction in connection with the Master recorded hereunder, the Records derived therefrom. Artist requires written permission from Producer anytime the Producer would like to use other identification and biographical material concerning the Artist for purposes of trade and otherwise without restriction in connection with the Master recorded hereunder, the Records derived therefrom.

5. CREDIT: Artist shall give Producer appropriate production credit for the Said Title on all compact discs, records and cassette labels or any other record configuration manufactured which is now known or created in the future that embodies the Master created hereunder and on all tags for downloadable files, cover liner notes, as well as any website or links that the Artist shall post the Master. The Artist shall give Producer appropriate production credit for the Said Title all advertisements that are larger than a half page, all billboards and all singles. Such credit shall be in substantial form: "Produced by __________". The Artist agrees to credit Producer verbally on the recording of the New Songs indicated by Producer.

6. MECHANICAL, SYNCHRONIZATION, PUBLIC PERFORMANCE LICENSING AND ROYALTIES: (a) Producer grants to Artist the non-exclusive right, privilege and license, to use the Said Title, in the manufacture and sale of sound-recordings in all forms, whether now or hereafter devised or discovered ("Records") throughout the world ("Territory"), for one sellable album to be recorded within one year of this agreement. (b) Producer grants Artist the right, privilege and license to perform publicly Said Title with the only royalty or payment owed to Producer being paid directly from the Artist’s designated performing rights organization. All performance royalties payable to Producer shall be paid and calculated by the designated performing rights organization in accordance with their rules and regulations and payable on the same basis in which royalties are calculated and payable to Artist. Producer agrees that the only royalties received from public performances will be those that are issued through the performing rights organization and excludes any revenue received from tours, shows, DVD’s, and live performances. (c) Each party shall register the New Song with their affiliated performing rights organization and appropriate credit will be given to Producer and Artist in accordance with the percentages set forth in this Agreement. Each party will provide the other with written confirmation that the song has been registered. In the event of publication through the Producer’s publishing company, the Artist’s publishing company, an individual, or other company, each party shall receive Fifty percent (50%) of any compensation received for such publication. Prior written consent to publish the New Song shall be obtained from the other party before any Synchronization Licenses, Master Use Licenses, or any other licenses can be executed, such consent not to be unreasonably withheld. (d) This license shall continue in effect for the life of the copyright on the Said Title and New Song.

7. The Artist is responsible for clearing the sample used in the Said Title.  (All sampled beats are indicated by the word "Sampled" written in parenthesis after the title of the instrumental.)

8. DEFINITIONS: (a) "Record(s)” shall mean and include without limitation all forms of recording and record reproduction by which sound may be fixed, embodied, or recorded by any method now known or later developed, for any and all public or commercial uses including magnetic recording tape, compact disc, laser disc, film, electronic video tapes or recordings, digital distribution and any other medium or device now known or later developed. (b) "Master" shall mean every recording of sound, whether or not coupled with a visual image, by any method and on any substance or material, whether now or hereafter known, which is used or useful in the recording production and/or manufacture of Records.

9. WARRANTIES AND INDEMNITY: Producer warrants it is the sole owner of the Said Title on the Master and/or has been granted all rights associated with the recording of the music embodied on the Masters and hereby have the right to grant the terms of this Agreement. The songs and performances embodied in the Recordings, and any use thereof by Artist will not violate or infringe upon the rights of any third party. Producer warrants he has secured all proper licenses for the right to perform and record all or any part of the performances or recording embodied on the Master for the use of a song or recording appearing in the Master from a "sample", an "interpolation" or a "replay". If Producer has not secured such right, then Producer has notified Artist and Artist has agreed in a separate writing to secure such rights. Producer agrees to indemnify and hold harmless Artist, its officers, agents, employees, attorneys and assignees, from and against any and all claims, damages, liabilities, costs and expenses including but not limited to attorney's fees, arising from any infringement of copyright that may arise from Said Titles. As such, Artist also agrees to indemnify and hold harmless Producer from and against any and all claims, damages, liabilities, costs and expenses including but not limited to attorney’s fees, arising from any infringement of copyright, slander or libel that may arise from Artist’s lyrics.

10. 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 upon either party unless confirmed by a written instrument signed by either party or their agent.

11. ASSIGNMENT: This agreement is not assignable by either party without first the written consent of the other party, such consent not to be unreasonably withheld, and shall be binding upon the heirs, legal representatives, successors and assigns of the parties hereto.

12. SEVERABILITY CLAUSE: If any portions of this contract are invalidated by a court of law, the remainder of the contract is deemed valid.

13. JURISDICTION: This agreement shall be construed in accordance with the laws of the State of Nevada. Any dispute arising under this Agreement shall be filed in any court, federal or state, of competent jurisdiction in the County of Clark, State of Nevada.

This contract is valid if you purchased your instrumental in July, 2009.  B.Bizz Entertainment reserves the right to amend this contract at a later date.

 

   
 
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