Dear sir / madam,
Thank you for your draft contract. There are a number of points in the agreement I would like to give further consideration. For convenience I shall refer to your clause numbers.
Referring to clause 1, 'the warranty sampling', I do not agree with your idea of taking samples of my client to the Primex studios. I think this is an exploitation of my client and I strongly oppose this idea. The contract is between me and you and any third party is not welcome not unless it is with me and my client's consent. I would like to request you to discuss the matter with me before coming to a conclusion.
Regarding clause 2, 'the controlled composition clause', my client is not willing to take the 30% offer of the total sum of sales that your record company is offering. Again this is a strong violation of his rights and such a move is unwelcomed. I would like us to abide by the law and at least come to the legally allowed percentage of 50%.
Concerning clause 3, 'the transfer of ownership', according to the document that you have sent to me, my client is not given a chance to foot the bill for production. This means that he will not have any right over his music, at least for the better part of his life. That is not his wish and I would like you to reconsider the clause.
And to clause 4, 'the length of the term clause', you have stated that there is an automatic renewal of the term. This does not take into account the opinion of the musician. I would wish that the contract were left open so that it will be upon the musician's wish to terminate of extend the contract.
On clause 5 which is the 'key man clause', you have not stated that my client's choice of your records is because of the offer that you extended to us. This puts my client at risk of getting stuck in the records if by any chance the offer stopped and you are no longer working in the studio. I would like you to include that crucial aspect in the contract.
Concerning clause 6, 'delivery/ acceptance clause' you have not stated the material that you will give us. Please specify that commercial/ radio ready material will be the end product at the end of the contract.
In clause 7,'returns, reserves and other standard deductions' the document you sent me defines that net sales is 65% of gross sales, less returns, credits and reserves against anticipated returns and credits. This differs from the legal value of 85%. I would want you to rectify the section.
In clause 8, 'cross - collaterization clause' I wanted you to expound further on the statement you had made earlier during our encounter where you stated that each album was limited to its own gains and payments of a specific album could not be met by sales of another, yet the collaterization clause is totally opposite to that.
Regarding clause 9, 'the coupling clause', it seems that the provisions of the clause cannot be enjoyed since you have stated that the record can place my client in any combination it wishes. Therefore, I would like you to harmonize the contradicting situations.
With reference to the tenth clause, 'reserve limits, accounting and audits clause, it seems that there is a problem because you have stated that you will make payments to my client once in every one and a half years. This goes contrary to the specifications of the clause and I would request you to reconsider the payment system.
I trust you will give consideration to these concerns, and I look forward to hearing from you in the near future.