(c) 360 Revenue (Gross Income Participation): Company shall be entitled to twenty percent (20%) of gross income actually received by or for Artist from Ancillary Income sources, including without limitation touring, live performances, merchandise, endorsements/sponsorships/brand deals, appearances, and music publishing-related income, during the Term. Artist shall remit Company's 20% share within thirty (30) days of Artist's receipt of such funds, together with reasonable documentation of the gross amounts received.
(d) Recoupment: All Recoupable Costs paid, advanced, or incurred by Company on Artist's behalf and approved in writing (including via the PoManOS platform workflow or email confirmation) shall be 100% recoupable from Artist's share of Net Profits and any other monies payable to Artist under this Agreement, to the extent permitted by law.
6. RECOUPABLE COSTS; STUDIO AND PRODUCTION TERMS
(a) Recoupable Costs (Definition): "Recoupable Costs" include, without limitation, amounts paid, advanced, or incurred by Company in connection with Artist and/or the Masters that are approved in writing, including: recording costs; production costs; mixing/mastering; artwork and graphic design; content creation; third-party musicians/engineers; marketing, advertising, and promotion; public relations; distribution and delivery fees; licensing and registration fees; and any other reasonable out-of-pocket administrative or operational costs incurred by Company for Artist.
(b) Standard Company Rates (If Provided by Company): Where Company provides professional services directly, the following standard rates apply and may be treated as Recoupable Costs if approved in writing as part of an advance/budget:
- Studio Time: $50.00 per hour.
- Music Video Production: $300.00 per project.
- Artist Development/Voice Lessons: $75.00 per hour.
(c) Payment Timing / Default Treatment: Unless otherwise agreed in writing, professional service fees are due at the time of service and are not deemed recoupable advances. Any exception (i.e., treating fees as recoupable) must be specifically authorized in writing by the CEO of Po Man Records.
7. ARTIST OBLIGATIONS
Artist agrees to: (a) Utilize the PoManOS dashboard for all professional management and reporting and provide accurate, timely information necessary for Company to perform the Administration Services. (b) Maintain professional conduct, comply with applicable laws and venue/platform rules, and avoid conduct that materially damages the reputation of Po Man Records / PoManOS or interferes with Company's ability to market and administer Artist's career. (c) Reasonably participate in promotion and marketing efforts for releases and Artist-branded offerings (including social media posts, announcements, basic press/marketing coordination, and content capture as reasonably requested). (d) Deliver "Mix-Ready" stems (or such other delivery specifications reasonably required by Company or DSPs) for any tracks utilizing the AI-Powered Mixing Console.
8. ACCOUNTING
Company shall provide Artist with access to a digital accounting dashboard via the PoManOS platform. Company shall provide royalty statements and revenue reports and issue payouts on a semi-annual basis (twice per year), provided that the earned balance exceeds the minimum threshold of $50.00. Artist has the right to audit Company's books and records pertaining to this Agreement once per year upon thirty (30) days' written notice.
9. REPRESENTATIONS AND WARRANTIES
Artist represents and warrants that: (a) Artist is at least 18 years of age and has the full right and power to enter into this Agreement. (b) The Masters and Compositions are original and do not infringe upon the rights of any third party. (c) Artist is not under any prior professional or legal obligations that would conflict with this Agreement.
10. TERMINATION
Upon expiration or termination of this Agreement, Company shall cease distribution of the Masters within sixty (60) days, subject to the "Sell-Off Period" of six (6) months for physical merchandise. Any unrecouped balances shall remain due and payable from any trailing royalties.
11. MISCELLANEOUS
(a) Governing Law: This Agreement shall be governed by the laws of the State of New York.
(b) Relationship: Nothing herein shall be construed to create a partnership or joint venture between the parties.
(c) Entire Agreement: This document constitutes the entire agreement between the parties and supersedes all prior discussions or casual correspondence.