1.
You shall deliver to us the sound recordings set forth on
Schedule A attached hereto (the "Recordings") for
sale by us in the form of compact discs that we shall manufacture
and sell (each a "CD"). You will also provide us
with other material related to the Recordings, such as CD
artwork, liner notes, credits and illustrations (the "Materials"),
for our use in connection with the manufacture and sale of
CDs hereunder.
2. You hereby grant to us a non-exclusive,
worldwide license to offer the Recordings to the public for
purchase on the Site in the form of CDs. In connection therewith,
we shall have the right to publicly perform, publicly display,
broadcast, encode, reproduce, and transmit the Recordings
on the Site, including without limitation, making the Recordings
available in the form of audio streams. You hereby grant to
us the right to utilize any trademarks, trade names or service
marks embodied in the Recordings or the Materials and the
name and likeness of any individual whose performance is embodied
thereon in connection with the promotion, distribution, reproduction
and performance of the Recordings, including without limitation,
on merchandise, such as t-shirts, hats, posters or other items
("Merchandise") manufactured by us. The Recordings
may be included on compilation CDs embodying the Recordings
and the recordings of other artists and on promotional CDs
which are distributed at no cost.
3. We shall be responsible for the manufacture
and delivery of each CD embodying Recordings purchased on
the Site and for Merchandise, if any, embodying the Materials.
4. The selling price for the CDs and the
Merchandise, if any, shall be determined by us according to
our pricing guidelines.
5. We shall pay to you fifty (50%) percent
of the Net Revenue we receive from the sale of CDs and Merchandise.
For purposes hereof, "Net Revenue" shall mean gross
revenue actually received by us from such sales less manufacturing
costs, mechanical royalties, performance society fees, sales,
use, value added or similar taxes, shipping and returns.
6. You shall be responsible for providing
us with all information (publisher names, addresses, etc.)
and mechanical licenses in order to allow us to pay all mechanical
royalties due with respect to the sale of the CDs hereunder.
To the extent any musical compositions embodied on the CDs
are owned or controlled by you, directly or indirectly, you
hereby confirm that such musical compositions are licensed
for the United States and Canada for inclusion on the CDs
at seventy-five (75%) percent of the statutory mechanical
royalty rate or the prevailing industry rate, respectively.
We shall pay all mechanical royalty fees due with respect
to the sale of CD's
hereunder, provided you have complied with this paragraph
6. In the event you fail to provide us with the necessary
information in order to make such mechanical royalty payments,
you hereby indemnify us from all claims which may be brought
in connection therewith.
7. As between you and us, you retain ownership
of the copyrights and all other rights in the intellectual
property furnished by you for use hereunder, subject only
to the non-exclusive rights granted to us under this Agreement.
You are free to grant similar rights to others during and
after the term of this Agreement.
8. Within sixty (60) days of the close
of each quarter during which we have received any Net Revenues
with respect to your CDs or Merchandise, we will send you
a check in the appropriate amount, except if the amount we
owe you is less than fifty dollars ($50.00), in which case
we will hold the money until the total amount we owe you at
the end of any particular quarter is greater than fifty dollars
($50.00). We may deduct from any amount payable hereunder
such portion thereof as may be required to be deducted under
any applicable statute, regulation, treaty or other law in
connection with taxation or otherwise and you shall promptly
execute and deliver to us such forms or other documents as
may be required in connection therewith. If at any time we
make quarterly payments, you have not provided us with all
information reasonably requested, including but not limited
to legal name, tax identification information and complete
mailing address, then we shall hold any sums due to you until
the end of the first quarterly period during which you have
provided us with all such missing information. We agree to
keep accurate books and records covering all transactions
related to this Agreement. During the one-year period following
your receipt of payment, you may, at your expense and upon
reasonable notice, inspect our records related to that payment
at our offices or at a location specified by us, provided
that your inspection must not unreasonably interfere with
our business. If your inspection reveals that we have underpaid
you, we will promptly correct the deficiency. It is understood
that we include certain advertising on multiple pages and
sections of the Site; no portion of the sums received by us
from the sale of such advertising shall be included in the
calculation of any sums payable to you hereunder.
9. Our customers and licensees shall not
be required to make any payments (other than mechanical royalty
payments) in respect of the authorized use of your Material,
including, without limitation, payments to you, third parties
claiming through you or otherwise, music publishers, performance
rights societies, persons who contributed to or appear in
your Material, your licensors, unions or guilds; you have
the full right and power to enter into and perform this Agreement,
and have secured all third-party consents, licenses and permissions
necessary to enter into and perform this Agreement; the Recordings
do not contain "samples" of any third party's sound
recording or musical composition and neither the Recordings
nor the Material will infringe on any third party's copyright,
patent, trademark, trade secret or other proprietary rights,
rights of publicity or privacy, or moral rights; neither the
Recordings nor the Material violate any law, statute, ordinance
or regulation; neither the Recordings nor the Material are
defamatory, trade libelous, pornographic or obscene; neither
the Recordings nor the Material contain any viruses or other
programming routines that detrimentally interfere with computer
systems or data; all factual assertions that you have made
and will make to us are true and complete; and you are of
legal age of consent in all applicable jurisdictions and,
in any event, are at least eighteen (18) years of age. You
agree to indemnify and hold us, our licensees and customers
harmless from any and all damages and costs, including reasonable
attorneys fees, arising out of or related to your breach or
alleged breach of the representations and warranties described
herein. You agree to execute and deliver documents to us,
upon our reasonable request, that evidence or effectuate our
rights under this Agreement.
10. The term of this Agreement shall be
one (1) year from the date hereof. Upon termination of this
Agreement, all of our license rights terminate, except that
we retain those rights necessary for us to sell any CDs or
Merchandise which we have produced prior to the date of termination.
Subject to the foregoing, we shall use reasonable efforts
to discontinue public access to the Recordings and Material
promptly upon termination; however, due to your participation
in certain promotions, the Recordings and Material may remain
accessible to the public for up to ninety (90) days following
termination. We may terminate this Agreement at any time by
so notifying you; and the Agreement will terminate upon your
actual receipt of such notice or three (3) days after we have
sent a notice of termination to your address set forth herein,
whichever is sooner.
11. Upon receipt of notice, we will act
expeditiously to remove or disable access to any Recordings
or Material claimed to be infringing or claimed to be the
subject of infringing activity, and we will act expeditiously
to remove or disable access to any reference or link to Recordings
or Material or activity that is claiming to be infringing.
Notwithstanding anything contained in this Agreement, you
expressly consent to our disclosure of your personally identifiable
and all other personal information in the event that you or
the Recordings or Material are the subject matter of any such
infringement claim.
12. OUR SERVICES HEREUNDER ARE PROVIDED
ON AN "AS IS" AND "AS AVAILABLE" BASIS
WITHOUT WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED,
INCLUDING BUT NOT LIMITED TO WARRANTIES OF MERCHANTABILITY,
FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT, OR OTHERWISE.
WITHOUT LIMITATION, WE DISCLAIM ANY AND ALL WARRANTIES REGARDING
THE SECURITY, RELIABILITY, TIMELINESS AND PERFORMANCE OF THE
SITE. WE MAKE NO WARRANTY, EXPRESS OR IMPLIED, THAT THE SITE
WILL BE UNINTERRUPTED, TIMELY OR ERROR-FREE.
13. WE WILL NOT BE LIABLE FOR ANY CONSEQUENTIAL,
INDIRECT, EXEMPLARY, SPECIAL OR INCIDENTAL DAMAGES ARISING
FROM OR RELATING TO THIS AGREEMENT.
14. We reserve the right, in our sole discretion,
to change, modify, add or remove all or part of this Agreement.
Notice of any amendments and/or modifications shall be sent
to you at least five (5) days prior to their effective date.
In the event that you do not consent to any such amendments
and/or modifications, your sole recourse shall be to terminate
this Agreement, as provided above.
15. The Agreement sets forth the entire
understanding and agreement of the parties as to this Agreement's
subject matter. You agree not to resell, assign, otherwise
transfer, or delegate your rights or obligations under the
Agreement without our prior express written authorization.
Notices or communications under this Agreement shall be sent
in writing and shall be deemed delivered upon receipt to the
party to whom such communication is directed, at the addresses
set forth above. The agreement shall be governed by and construed
in accordance with the laws of the State of Maryland without
regard to that State's conflict-of-law provisions. The State
and Federal courts shall be the exclusive forum and venue
to resolve any and all disputes arising out of or relating
to this Agreement. Failure to exercise or enforce any right
or provision of this Agreement shall not constitute a waiver
of such right or provision. You agree that we and you are
independent contractors under this Agreement, and nothing
herein shall be construed to create a partnership, joint venture
or agency relationship. This Agreement shall be binding upon
and inure to the benefit of the parties hereto and their respective
heirs, successors and assigns. Each provision of this Agreement
shall be severable from every other provision of this Agreement
for the purpose of determining the legal enforceability of
any specific
provision.
IN WITNESS WHEREOF, the parties hereto
have executed this agreement as of the day and date first
hereinabove written.
We do not pay internet radio royalties
NET WEB RECORDS. SUBSCRIBER
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