Management Agreements and Related Issues (Part 2) - Page 4


© Kent Newsome
Page 4
Set forth below is a more favorable compensation provision, which I have used on numerous occasions:

After deducting the Excluded Earnings (as such term is defined below), Artist agrees to pay Manager, promptly on receipt of same by Artist, a fee equal to ______________ percent (___%) percent of Artist's gross earnings during the term or any renewal of this Agreement from all shows, programs, endorsements, radio shows, television shows, motion pictures, clothing, concessions, publications, books, advertisements, transcriptions, recordings, personal appearances and any other benefits or services. After the expiration or termination of this Agreement, Manager shall continue to receive compensation as if this Agreement were in full force and effect for a period of three (3) years after the expiration or termination of this Agreement on the same terms as above for so long as Artist receives any revenues or benefits, all as fully set forth above, and from any show, personal appearances, advertisements, endorsements, recordings, programs, television shows, or radio shows which were scheduled, presented, auditioned for, contracted for, or commenced during the term or any renewal of this Agreement. The term "Excluded Income" shall mean all royalties, bonuses, or advances against future earnings from Artist's personal songwriting or music publishing interests, recording costs or other expenses advanced and recoupable by any record company, fees and royalties paid to producers approved by Manager, funds advanced by record companies for tour support and actually spent for such purpose or recoupable by the record company, reasonable cost of collection and sums actually paid to opening acts.

H. Manager Affiliates.

1. Sample Provision.

(a) The parties hereby acknowledge that from time to time during the Term, Manager or other persons or entities (i) that are owned and/or controlled by Manager, or (ii) that own and/or control Manager, or (iii) that are in common ownership and/or control with Manager ("Manager's Affiliates"), may package an entertainment program in which Artist is engaged as an artist, or may act as the entrepreneur or promoter of an entertainment program in which Artist is engaged as an artist, or may engage Artist in connection with the recording and/or production of Recordings, or as a songwriter, composer, arranger or otherwise in connection with the creation of literary or musical works. Any such activity on the part of Manager or Manager=s Affiliates shall not (i) constitute a breach of this Agreement or of Manager's fiduciary obligations and duties to Artist, or (ii) in any way affect Manager's right to its Manager's Fee hereunder in all instances not covered by the exceptions hereinafter set forth.

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