Michelle Vitale

December 9th, 2015

MUSC 388Dr. Nepkie
Deal Memo #2

Vitale Recording Agency

123 Main Street
Oneonta, New York 13820
Singer Songwriter
1 Higgins Hall
Oneonta, New York 13820
Dear Mr. Songwriter:
I am interested in establishing a record deal with you. These are my recommendations:
1. TERM:
The term of the agreement will begin as soon as both parties have signed an agreement.
The term shall extend for the initial period of six (6) years or four (4) extended play
albums, whichever is longer. Each album must contain at minimum ten (10) original
works.
2. EXCLUSIVITY:
Vitale Recording Agency shall engage your exclusive services for the duration of the
term of contract, for making all recordings.1
3. RECORDING COMMITMENT:
Contract Period:
Recording Commitment:
Initial Period
Six (6) years or four (4) albums
First Option Period
Two (2) albums
Second Option Period
One (1) album2
4. SELECTION OF PRODUCER:
As the artist, Mr. Songwriter will make requests or recommendations for a producer for
the works created under the contract. Vitale Recording Agency, however, has the power
to make the final selection of a producer.3

1 Halloran, Mark E. The Musician's Business and Legal Guide. Upper Saddle River, NJ: Pearson Prentice
Hall, 2008. 286. Print.
2 Halloran, Mark E. The Musician's Business and Legal Guide. Upper Saddle River, NJ: Pearson Prentice
Hall, 2008. 288. Print.
3 Halloran, Mark E. The Musician's Business and Legal Guide. Upper Saddle River, NJ: Pearson Prentice
Hall, 2008. 289. Print.

5. RELEASE OBLIGATIONS:
Songwriters first four (4) albums fall under contract. If the first four (4) albums are
released before the 6 year mark, then Songwriter is obligated to stay under contract with
Vitale Recording Agency until the sixth year is completed.4
6. INTERNET EXPLOITATION RIGHTS (Streaming, downloading, et cetera):
a. Vitale Recording Agency will pay twelve percent (12%) of retail price of
purchased Internet exploitations (i.e. Amazon, iTunes, Bandcamp, etc.)5
b. Vitale Recording Agency will pay $0.005 per song streamed via Internet radio and
streaming services (i.e. Spotify, Pandora, IHeartRadio, iTunes Radio, etc.)6
7. BUDGET:
The artist will receive a $50,000 recoupable advance credited into his account for
recording costs.7
8. ROYALTIES:
Vitale Recording Agency will pay twelve percent (12%) of the net retail price of all
purchased albums.8
9. OWNERSHIP OF MASTERS:
While under contract, Vitale Recording Agency will own and control all master
recordings created by Songwriter during the contract. When the contract expires,
Songwriter will have the opportunity to purchase the sound recordings of her works, for
an amount to be determined at a later date.9
4 Original idea
5 Halloran, Mark E. The Musician's Business and Legal Guide. Upper Saddle River, NJ: Pearson Prentice
Hall, 2008. 165. Print. / Original Idea
6 http://musicindustryblog.wordpress.com/2012/12/12/how-much-streaming-is-really-worth-to-artists-aconsumption-analysis/
7 Halloran, Mark E. The Musician's Business and Legal Guide. Upper Saddle River, NJ: Pearson Prentice
Hall, 2008. 164. Print
8 Halloran, Mark E. The Musician's Business and Legal Guide. Upper Saddle River, NJ: Pearson Prentice
Hall, 2008. 308. Print. / Original Idea
9 Original idea

10. PROVISIONS FOR RECOUPMENT:

All monetary recoupments (i.e. recording and merchandise advances) will be taken out of
the artists royalties made from musical sales (i.e. physical albums/singles, digital
albums/singles, sheet music, radio use, streaming downloads, and synchronization
rights.10
11. CROSS-COLLATERALIZATION:
Vitale Recording Agency has the right to take twenty percent (20%) of merchandise
royalties (i.e. clothing, accessories, games, etc.) until all advances made to the artists
account have been recouped.11
12. EXCERSIZE OF RIGHTS LIMITATIONS:
a. Synchronization rights may go through the artists personal publisher, however,
Vitale Recording Agency must approve of the deal prior to use. Vitale Recording
Agency will receive twenty five percent (25%) of profits made from
synchronization licensing.
b. All foreign sales will go through Vitale Recording Agencys subpublisher. Vitale
Recording Agency will receive ten percent (10%) of all foreign sale profits, on an
at source basis.
c. Deals pertaining to commercial use of sound recordings may be made through the
artists personal publisher, however, Vitale Recording Agency must approve of the
deal prior to the use. Vitale Recording Agency will receive twenty three percent
(23%) of profits made from these synchronization licenses.12
13. MERCHANDISING:
Songwriter will receive a $15,000 advance, prior to each tour, for merchandise. This
advance will be recouped from sales of merchandise and other tour profits. Once
recouped, the artist will receive thirty-five percent (35%) of the net profit from
merchandise and other tour profits.13

10 Halloran, Mark E. The Musician's Business and Legal Guide. Upper Saddle River, NJ: Pearson
Prentice Hall, 2008. 302. Print. / Original Idea
11 Original idea
12 Halloran, Mark E. The Musician's Business and Legal Guide. Upper Saddle River, NJ: Pearson
Prentice Hall, 2008. 165. Print. / Original Idea
13 Original idea

These parties have agreed to the terms and conditions within this deal memo as of the day
and year stated below:
VITALE RECORDING AGENCY
X:______________________

SINGER A. SONGWRITER
X:_______________________
SOCIAL SECURITY #:________

DATE:___________________