Code Red…We have a copy of Warn#R Br@s Merch Deal
We’ve obtained a copy of the coveted merch deal from Warn#R Br@s that they are presenting to potential victims. Thanks to our in-house MOLE for this. Band name and Merch Company name has been altered.
Band X
Warn#R Br@s Merchandise Proposal
May 5, 2008
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Territory: The Universe, Infinity, Black Hole
Term: One hundred (100) years from signature of deal memo, Or until the moment of death of last surviving member.
Rights: Exclusive Tour, Retail, Licensing, Internet sales, Sales to friends, monkeys, relatives, or any member of the human race.
Royalty Rates:
Retail - 0.115% of the wholesale selling price up to $4,999,999
Escalating to 0.116% when sales achieve $5,000,000 and up
Internet - 0.115% of selling price
Licensing - “ 100% of net receipts* (way better than any other company)
TOUR ROYALTIES
Tour: 11.145% of Net Profit
For the avoidance of all doubt, “Net Profit” shall be defined as gross sales of merchandise at concert engagements reduced by state sales and similar taxes, hall/vending fee’s, cost of goods sold, Warn#R Br@s merchandise manager salary and per diem, Warn#R Br@s merchandise manager expensive lodging and transportation, freight, security, food and shelter for all Warn#R Br@s employees and their families worldwide and all other bona-fide direct overhead expenses. Band X shall have no approval rights over expenditures and will be penalized monetarily for any inquiries. Band X shall have approval over Warn#R Br@s road staff that Warn#R Br@s hires for touring, providing that person is under 5 feet tall. However, Warn#R Br@s has no obligation to hire short road crew.
Artwork: Warn#R Br@s will give Band X a $5.00 artwork allowance for the creation of artwork for merchandise use. After the $5.00 allowance has been fulfilled Warn#R Br@s will charge Band X back for any fees incurred with a 29.99% interest rate, compounding daily.
Accounting: Sometime within 3 years of the end of each calendar quarter. Accounting periods are defined as each calendar quarter plus 1080 days.
Approvals:
1.) Warn#R Br@s will have full approval over artwork and concept of the entire merchandise line, including type, color and sizes of any wearable garment, size of printed logos on any product, however Band X may have the option to determine where they want their merchandise shipped to.
2.) Band X will have partial approval over artwork and concept of the entire merchandise line. However, Warn#R Br@s reserves the right to a full veto of any band wishes or directions.
Options**
*Warn#R Br@s has been out of the licencing business since Jan 1, 1976
** Warn#R Br@s will determine which option is best for Band X
All other forms per Warn#R Br@s incredibly long contract. No terms are negotiable
Approved: Warn#R Br@s Approved: Band X
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May 30th, 2008 at 11:29 am
Hey man, if I where them I would make the term until the executors of each band member’s estate die, to give them more time to recoup. They can always let the band negotiate it back to terminate on the death of the last surviving band member (as currently drafted) so then band feels like they’ve won something.