Definitions

HOMEWORK ASSIGNMENT #1 – How we read a contract so that we can understand what is being said ? It has everything to do with knowing the language of the music business. It is not a foreign language. You are probably familiar with many of the words. HOW the words are USED IN THE MUSIC BUSINESS is very important.

In the following sentences you will find a word underlined and highlighted in yellow. What does that word mean as it is used in the the music business? Check the dictionary if you want, BUT DOES YOUR CHOICE MAKE SENSE?

1. ACCOUNT - All statements of accounts rendered by Company to you shall be binding upon you unless specific objection in writing is given to Company.

2. ADMINISTER - Joe Music Pub Inc., has the sole, exclusive and worldwide right, to administer Your rights in your musical Compositions, to grant licenses to others for any and all uses of the Compositions.

3. ASSIGN - Manager may assign , or otherwise transfer, this agreement or any or all of Manager's rights hereunder, in whole or in part, to any person,(s) corporation or other entity.

4. AUDIT - You agree to make available to Company any records and reports prepared by You pertaining to any audit of your distributor’s sales records.

5. AUTHORIZE - You agree that The Record Company if it so desires may authorize the manufacture of albums, singles, videotapes, and other formats of recordings.

6. AUTOMATICALLY . - Our option to extend the contract will be exercised by Us, automatically, unless we give You written notice otherwise.

7. BINDING - All statements and accounts rendered by Us to You will be binding upon You and not subject to any objection unless such objection is given within one (1) year.

8. COMMITMENT - During the First Contract Period of this Agreement, Your Minimum Recording Commitment will be to record and deliver six Master recordings.

9. COMPLY- You will comply with all rules and regulations governing the use of each recording studio utilized hereunder.

10. CONSENT - Without Company's prior written consent , You will not alter the Trademark under which You render professional services.

11. CONTEXT - As used in the context of the music business, the expression "Master" means the final completed version of a sound recording.

12. DEEMED - No Album consisting of Your "live" performances will be deemed to be in fulfillment of any of Your Minimum Recording Commitment obligation.

13. DERIVATIVE - Writer warrants and represents that the music, lyrics, and title of the musical composition is not a derivative of or derived from another existing composition.

14. DISTRIBUTE - You hereby grant to The Record Company the exclusive right to manufacture, distribute, and sell sound recordings and videograms in the territory.

15. ENCUMBER - You hereby warrant and represent that no other contracts exist which may encumber Company’s rights to use your name on all Company’s brand products.

16. ENJOIN - Owner shall not be entitled to enjoin , restrain or interfere with the distribution or exhibition of the motion picture or photoplay.

17. ENTITLED- Publisher shall be entitled to deduct the cost of postage and recording demos in calculating or paying any amounts to Writer.

18. EXCLUSIVE - During the term of this agreement, You will furnish Your services as a recording Artist to The Record Company on an exclusive basis.

19. EXERCISED - An additional option period of one year may be exercised at the sole discretion of Company, if Company gives Licensor written notice within thirty (30) days.

20. EXTENSION - You warrant that the material recorded will be available to The Record Company for the full duration of the license period including any extension to the term.

21. GRANT - You hereby grant to The Record Company the right to make duplicate DVD’s of your performances recorded hereunder. .

22. INDEMNIFY - You will indemnify Company from any and all claims, demands, losses, damages, liabilities, costs and expenses arising out of any breach of any warranty in the Agreement by You.

23. INJUNCTION - You hereby expressly agree that The Record Company will be entitled to seek an injunction in any Court which has jurisdiction over the Agreement.

24 . IRREVOCABLE- Manager’s power of attorney is hereby acknowledged by Artist to be irrevocable during the term of this agreement.

25. LIABILITY - You will reimburse ANYCO upon demand for any payment made by ANYCO at any time after the date hereof in respect of any claim of liability or loss.

26. LICENSE - Producer and Artist hereby grant a license , exclusively to ANYCO Records, to manufacture, distribute and sell sound recordings.

27. OBLIGATION- Subject to Your compliance with any obligation hereunder we will pay you a royalty of ten (10%) of the suggested retail list price for every record sold.

28. OPTION - Artist hereby irrevocably grants to Manager an option , if he exercises same in a timely manner, to extend the Term of the Agreement for five additional years.

29. PERPETUITY - You hereby grant and assign to ANYCO all rights of every kind unconditionally, exclusively, and in perpetuity , throughout the Territory.

30. PUBLISH – Joes Music Publisher Inc is hereby granted the sole and exclusive right, throughout the world, to publish and exploit the musical compositions in any media.

31. REIMBURSE - You will reimburse ANYCO upon demand for any payment made by ANYCO at any time after the date hereof

32. REPRODUCE You hereby grant and assign to the Big Bad Record Company Inc., all rights of any nature in the Master sound recording, which includes without limitation, the right to record, reproduce, broadcast and transmit.

33. RESPONSIBLE - Artist shall be solely responsible for payment of all necessary commissions to booking agents or similar agencies.

34. RETAIL - "Retail Price" will mean the recommended retail price in the country of sale

35. REVERT - At the expiration or termination of this agreement, all rights of any kind or nature licensed to Company by owner hereunder shall revert to owner.

36. STATUTE - The statutory mechanical royalty payable to You shall be that amount set by statute , order or regulation of the country in which the sound recording is sold.

37. SUSPEND - In the event the Group refuses to record a new album, Manager shall have the right, at its election, to suspend this Agreement by written notice to Artist.

38. SYNCHRONIZE - Licensor grants Licensee the right to synchronize the Composition with images in the Motion Picture.

39. TERMINATE - In the event that any one such period of suspension exceeds six (6) months, ANYCO will be entitled by notice in writing to terminate this Agreement.

40. TIMELY- Delivery of the sound recording requires timely submitting to the Label, in writing, complete label copy, liner notes and credits in regards to the recording.

41. TRANSFER - Manager may assign, or otherwise transfer , this agreement or any or all of Manager's rights to any person, partnership or corporation.

42. VAGUE- In the event that any term hereunder is disputed as vague , then such dispute shall be submitted to an arbitrator at the American Arbitration Association.

43. WARRANT - I hereby warrant that every song I deliver to Company will be completely original.

44. WHOLESALE - With respect to videograms sold by Company, Company will pay You a royalty of ten (10%) percent of the wholesale price of such videograms.

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