Sample Producer Contract (Royalty-Bearing, Collaborative Agreement)

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PRODUCER CONTRACT

AGREEMENT made as of May _, 2015, by and between ________ LLC (the Company) with
its principal offices at _______, New York ____ and ______ ______ (the Producer) with a residence at
__________________ .
The parties hereby agree as follows:
1.
PRIOR RECORDINGS: The parties acknowledge that Producer has produced various audio
recordings for Company in connection with various recording artists (the Prior Recordings). The Prior
Recordings are listed in Schedule A attached hereto. This Agreement will set forth the terms that apply to
the Prior Recordings and any other Recordings produced by the Producer at the request of the Company
(the Recordings).
This agreement was designed to cover recordings that the producer had previously made for the label as
well as future recordings.

2.
DUTIES: During the term of this Agreement, Producer agrees to produce and mix the
Recordings. Producer shall perform his duties on a non-exclusive basis.
The last sentence means that the producer may accept work form other labels or artists.
3.
TERM: The term of this Agreement shall commence as of the date hereof and shall continue until
either party terminates the Agreement upon thirty (30) days notice.
4.
RECORDING PROCEDURE: Recording sessions for the Recordings shall be conducted by
Producer for Company and at such times and places as shall be designated by mutual decision of
Company and Producer. All individuals rendering services in connection with the production of the
Recordings shall be subject to Companys approval. Each Recording shall embody the performance by
an artist of a single musical composition designated by the Company. Each Recording and final mix shall
be subject to Companys approval as technically and commercially satisfactory for the manufacture,
broadcast and sale of phonorecords, and, upon Companys request, Producer shall re-record any musical
composition or other selection until a Recording is technically and commercially satisfactory to
Company. The Recordings shall be, at Companys election, maintained at a recording studio or other
location designated by Company, in Companys name and subject to its control.
6.

COMPENSATION:

(a)
As complete and exclusive consideration for the services and rights provided by Producer
hereunder, the Company shall pay Producer five percent (5%) of Net Profits, as defined herein from
exploitation of the Recordings. Net Profits shall be defined as follows: Gross Income as defined below
minus Expenses as defined below.
(b)
Gross Income shall be any and all income monies received by Company from the exploitation of
the Recordings including from sale, license, assignment, lease, or rental of the Recordings or any other
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use thereof including sale or license of phonorecords in any media now known or hereinafter developed
throughout the world for as long as company receives income from such exploitation.

(c)
Expenses shall mean any actual recording costs paid by Company, except the royalty
payable to Producer hereunder, including without limitation fees to session musicians,
engineers, mixing, mastering, sample and clearance costs.
Basically, the producer will receive 5% of gross income from the exploitation of his recordings
minus production costs.
7.

GRANT OF RIGHTS

(a)
All Recordings recorded hereunder, from the inception of recording thereof, and all Records
manufactured there from, together with the performances embodied thereon, shall be the sole property of
Company throughout the universe, free from any claims whatsoever by you, the Artist, or any other
Person; and Company shall have the exclusive right to copyright such Recordings in its name as the
owner and author thereof and to secure any and all renewals and extensions of such copyrights. The
product of all persons rendering services in connection with the recording of such Recordings, including
Producer shall be deemed work made for hire for Company. If such product is determined not to be a
work made for hire then Producer hereby assigns all rights, including without limitation the copyright
in the recordings, to Company.
(b)
Without limiting the generality of the foregoing, Company and any person authorized by
Company shall have the unlimited exclusive right, throughout the universe, to manufacture records by any
method now or hereafter known, be it physical or digital, derived from the Recordings made hereunder,
and to sell, market, transfer or otherwise deal in the same under any trademarks, trade names and labels,
or to refrain from such manufacture, sale and dealing. Such rights shall exist for the duration of the
copyrights in such records.
(c)
Company and Distributor have the exclusive right to distribute the Artists recordings directly to
consumers by means of any and all media, including, without limitation, by means of electronic
transmissions.
Note that although this is a work for hire provision it applies only to the recording not to the underlying
musical composition. So if the producer contributes to creating the song, by for instance, composing the
beat, he retains his ownership of that part of the musical composition contained in the recording. In
Paragraph 11Producer grants the label the right to use his contribution to the song in the Recording, but
retains the right to receive a royalty for that use.

d.
Company and any Person authorized by Company each shall have the exclusive right throughout
the universe, and may grant to others the right, to reproduce, print, publish, or disseminate in any medium
the Artists name, portraits, pictures, likenesses and biographical material concerning you, as news or
information, or for the purposes of trade, or for advertising purposes in connection with Records
hereunder. During the Term of this Agreement, neither you nor the Artist shall not authorize any Party
other than Company to use the Artists name or likeness in connection with the advertising or sale of
Records. As used in this Agreement, name shall include, without limitation, any professional names.

8.
ACCOUNTING AND PAYMENT: Company shall account to Producer on a semi-annual basis
starting December 31, 2015 and continue so long as Net Profits are earned, by furnishing statements and
any payments due to Producer after deduction of permissible Expenses. Each such accounting statement
shall include a description of any transaction subject to this Agreement including identification of any
third party, the amount paid and the nature of the products and/or services for which payment was made.
Each such accounting statement shall cover all relevant transactions for the immediately preceding semiannual period.
9.

AUDIT:

(a)
Producer shall have the right, at any time, to give Company written notice of Producers intention
to examine Company's books and records with respect to each royalty statement. Such examination shall
occur no more than once each year and be commenced no sooner than one (1) month and no later than
three (3) months after the date of such notice, at Producers sole cost and expense, by any certified public
accountant or attorney designated by Producer, provided that he or she is not then engaged in an
outstanding examination of Company's books and records on behalf of a person other than Producer. Such
examination shall be made during Company's usual business hours at the place where Company maintains
the books and records which relate to Producer, and which are necessary to verify the accuracy of the
statement or statements specified in Producers notice to Company. Company shall have no obligation to
produce such books and records more than once.
(b)
Unless Producer provides a notice to examine Companys books and records within six (6)
months of receipt by Producer of any royalty statement, each such statement rendered to Producer shall be
final, conclusive and binding on Producer and shall constitute an account stated. Producer shall be
foreclosed from maintaining any action, claim or proceeding against Company in any forum or tribunal
with respect to any statement or accounting rendered hereunder unless such action, claim or proceeding is
commenced against Company in a court of competent jurisdiction within one (1) year after the date that
such statement or accounting is received by Producer.
(c)
Producer acknowledges that Company's books and records contain confidential trade information.
Neither Producer nor Producers representatives will communicate to others, or use on behalf of any other
person, any facts or information obtained as a result of such examination of Company's books and
records, except as may be required by law or judicial decree.
10.
NAME AND LIKENESS: Producer hereby grants to Company the right to issue and authorize
publicity concerning Producer and to use his name, voice and likeness and approved biographical data in
connection with the distribution, exhibition, advertising, and exploitation of the Recordings.
11.

CONTROLLED COMPOSITIONS

(a) Producer represents and warrants that each Controlled Composition (as defined below) is
original and does not infringe upon or violate the rights of any other person and that Producer has the full
and unencumbered right, power and authority to grant to Company all of the rights herein granted to
Company. Producer hereby indemnifies Company against any loss, damage or expense (including
reasonable attorneys' fees) in respect of any third party claims, demands, liens or encumbrances.
Controlled Composition shall mean a musical composition embodied in a Recording recorded or
released hereunder, which musical composition (i) is written or composed, in whole or in part, by
Producer or (ii) is owned or controlled, in whole or in part, directly or indirectly, by Producer.

(i) Producer hereby grants to Company the right to distribute any Recording embodying
a Controlled Composition. Company shall pay Producer a mechanical royalty of three quarters () of the
current statutory royalty rate in effect at the time of release of the Recording embodying the Controlled
Composition at issue, pro-rated by Producers percentage of ownership in the musical composition.
Under this provision, the Producer grants the label the right to use his contribution to the musical
Composition. In return he receives a royalty of stat, that is the statutory rate of 9.1 cents, or
1.75 cents per minute or fraction thereof for songs over five minutes. But this royalty is pro-rated
depending on his percentage of ownership. Suppose the Producer contributed the beat and the artist
created the lyrics. They may enter into a deal that each owns 50% of the song. In this case the producers
mechanical royalty would be 50% x x 9.1 cents for songs less than 5 minutes in duration. If the record
sold a million copies, his mechanical would be $34,125 (50% x x 9.1 cents x one million dollars).
12.
LEGAL COUNSEL: Company hereby acknowledges that he has sought and received legal advice
from independent counsel or that he has voluntarily waived his right to independent counsel with respect
to the terms and provision contained in this Agreement.
13.
INDEPENDENT CONTRACTOR: Producer and Company shall have the relationship of
independent contractors. Nothing herein shall be construed to place Producer and Company in the
relationship of principal and agent, employer and employee, master and servant, partners, or joint
venturers, and neither party shall have expressly or by implications, represented themselves as having any
authority to make contracts in the name of, or binding on, each other, or to obligate the other in any
manner.
14.
NOTICES: Notices, reports, accountings or other communication which the Producer or the
Company may be required or desire to send to the other, must be delivered EITHER by
certified mail, return receipt requested to the parties at the addresses first written above or
other address to be designated by Producer or Company.
electronic mail at the following addresses:
(i) for Company: ___________@___.com
(ii) for Producer: ___________@___.com
15.
ASSIGNMENT: Producer may not assign this Agreement. Company may assign its right or any
of its rights hereunder to any person, firm, or corporation including a corporation in which the Producer is
a principal, provided that (i) Producer shall remain responsible for any payments required to be made
under this Agreement, and (ii) the assignee has the necessary cash on hand to make any payments
required under this Agreement.
16.
ENTIRE UNDERSTANDING: This Agreement constitutes the entire understanding between
the parties with reference to this matter, and supersedes all prior agreements, written or oral. This
Agreement cannot be modified except by written instrument signed by the parties.
17.
GOVERNING LAW: This Agreement is made, and is to be construed under the laws of the
State of New York with respect to contracts to be executed and performed in this State, and the courts of
New York State shall have exclusive jurisdiction thereto.

18.
ENFORCEMENT: If any provision of this Agreement shall be found invalid or
unenforceable, then such provision shall not invalidate or in any way affect the enforceability of the
remainder of this Agreement.
19.
WARRANTIES AND REPRESENTATIONS: Producer hereby agrees that he has the right to
enter into this Agreement. He further warrants that no material contributed by him to the Recordings shall
violate any rights of any third party, and more specifically that he shall not use any samples of any other
copyright work without the express prior written permission of the Company.
20.
INDEMNIFICATION: Producer hereby agrees to and does indemnify, save, and hold Company
harmless from all damages, liabilities, costs, losses and expenses (including legal costs and reasonable
attorneys fees) arising out of or connected with any claim, demand, or action by a third party which is
inconsistent with any of the warranties, representations, or covenants made by Producer in this
Agreement. Producer agrees to reimburse Company, on demand, for any payment made by Company or
Companys designee(s) at any time with respect to any such damage, liability, cost, loss or expense to
which the foregoing indemnity applies.
ACCECTED AND AGREED:
[NAME OF COMPANY]
__________________________
Authorized Signatory
Accepted and Agreed
__________________________
Name
SS#

SCHEDULE A
Reference is made to the Producer Contract made as of May _, 2015, by and between _________ LLC
(hereinafter referred to as Company) with its principal offices at _________, New York ______ and
__________ (hereinafter referred to as Producer) with a residence at _________________
Prior Recordings:
______________featuring _________
______________featuring _________
______________featuring _________
______________featuring _________
______________featuring _________
______________featuring _________
______________featuring _________
______________featuring _________

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