HAIL Tip Sheet 14: Sample Clauses

Recording Deals

Here are some sample clauses that you can compare against the checklist. THEY DO NOT REPRESENT IN ANY WAY A TYPICAL DEAL - NO TWO DEALS ARE THE SAME AND DEPEND ON A WIDE VARIETY OF FACTORS.

This exercise is merely to show you the various types of clauses that your lawyer will look out for when negotiating your deal.

Checklist item	Sample clause that you might find in an agreement
Seek independent professional legal advice	This document contains an important agreement which is likely to affect your career on a long term basis. Before signing it, you should take independent legal advice from a lawyer experienced and familiar in management agreements, so that you understand its contents and are certain that you wish to be bound by it.
Check how long you are committed for. (The Term)	The Term of this agreement shall commence on the date hereof and continue for a period of two years and thereafter for a further period of three years at the option of the Manager, such option to be exercised if at all by notice in writing in that behalf at any time prior to the expiry of the initial two year period. If the Manager has not procured for the Artist the signing of a long term recording contract (with reasonably acceptable terms) with a major commercial record company within six months after the signing date of this agreement then the Artist should be entitled to terminate this agreement forthwith.
Make sure you specify exactly what the manager gets a share of and the extent of how they will be representing you.	In consideration of the Manager fulfilling all his obligations hereunder, the Artist agreed to pay the Manager 20% of the Net Income of the Artist received during the period of this agreement, within the Territory arising from contracts procured by the Manager during the period of this agreement. Net Income shall mean the gross income derived from the Activities (Personal appearances, making of recordings, writing of compositions, exploiting name and image, producing other recordings, public appearance) after deducting all agents fees, the cost of lighting and staging and all recording costs payable or recoupable from the artist and fees or royalties payable to the producer.
Seek to limit this if you have a variety of incomes already happening, (for example acting, teaching, producing, and so on).	The above clause limits the activities to performance related activities, but this includes acting, so you would have to pay management commission on that too.
Check whether your manager is entitled to a continued commission after they cease to manage you.	Commission will be payable to the Manager on Net Income received by the Artists AFTER the expiry of this agreement, in respect of the Artist’s then Recording and Publishing agreements, upon royalties paid in the two first (half yearly) accountings.
Consider a limit on the amount of money your manager can spend on your behalf (the expenses) and consider joint signatures between members of the group/act and the manager, if you have any serious doubts.	All traveling, accommodation and other expenses incurred by the Manager will be its own liability, except for all ordinary business expenses, and also where the Artist agrees that all reasonable costs being undertaken abroad will be chargeable to the Artist.