Distribution Agreement (Non-Exclusive)

Agreement:

The artist, addressed below, enters into agreement with the distributor, to conduct business under contract for the purposes of distributing the artist's music to sell and promote within the network owned and controlled by the distributor, the distributor's subsidiaries, its affiliates and other distribution entities whose services have been enlisted by the distributor. This is an agreement of NON-EXCLUSIVITY. The artist hereby retains the legal and creative rights to their music. The artist is NOT considered an employee of the distributor. The artist and distributor agree that the relationship between the two parties is that of independent contractors. The distributor reserved the right to make changes to all or part of this agreement. The artist will be notified of these changes through the primary contact information. A current copy of these terms will be posted at the distributor web site.

Artist:

Distributor:

McCortEntertainment.net

1701 Sylvan Dr

Arlington, TX 76012

Part 1: Term

This agreement shall remain until the artist chooses to terminate distribution of their material with the distributor. Termination of this agreement can be initiated at any time by the artist with no penalty or other obligation. The distributor also retains this right to termination of the agreement. In the event that the distributor decides to cancel this agreement, the distributor will give notice of this termination giving reason and allow 30 days after such notice is given before termination goes into effect. Upon the request to terminate, or the cancellation of the account, the distributor will also issue confirmation documentation to be signed by the artist.

Part 2: Assignment

The distributor is granted rights to keep on file, all "acoustic fingerprints" of compositions submitted and all materials related to these compositions submitted by the artist. The artist grants to the distributor, the rights to sell and distribute the musical compositions submitted by the artist, as the distributor sees fit to maximize the sales of this artist's music within the network established by the distributor. The artist grants the distributor the rights to use their image, any logos, and names (to be referred to as identifiers) for the purposes of promotion and distribution. The artist grants the distributor permission to use these identifiers for advertisement and promotion. The artist retains all legal and creative rights to the compositions submitted. The artist does grant the distributor rights to use the compositions for promotional purposes to include advertisements and release to broadcasters directly associated with the distributor as well as other sales affiliates.

The artist acknowledges that the distributor, in order to maximize promotion potential, does not require associated broadcast entities to pay mechanical royalties to play the artist's music during their standard broadcasts. Therefore the artist agrees to forgo royalty payments of this kind, and shall consider it a part of the cost of promotions. In return, the distributor guarantees these broadcasters will take the necessary steps to prevent the general public from obtaining copies of the compositions without proper monetary compensation. If any broadcaster includes any of these compositions in a tangible format for the public, the broadcaster shall either modify the composition to allow no more than ninety (90) seconds of the material or shall pay the selling price of the composition, multiplied by the number of downloads, to the distributor and artist. The broadcaster will not be allowed to distribute any material for profit that includes compositions of the artist, segments thereof, or the sale of the compositions themselves without contractual agreement with the artist for mechanical royalties. The artist retains the right to pursue any violation of this by the affiliate, outside of the bounds of this agreement.

The artist will be granted the right to opt out of any broadcasting source or affiliate the distributor has an agreement with. These entities shall be presented to the artist, along with fee schedules, for a ten (10) day period prior to the release of submitted compositions in which the artist may opt out of any affiliate. If the offered affiliates are not opted out of within the ten days the artist's material will be released and may opt out at a later time. The artist may inquire of the distributor at any time for a listing of affiliates the artist is distributed to and may request removal from any. These affiliates shall abide by the terms of this agreement.

Part 3: Warranty

The artist warrants that they have the right to enter into this agreement and that the compositions submitted are original and as the sole author and composer, the artist has not borrowed, paraphrased, or otherwise used any other copyrighted material for themselves. The artist also guarantees that entering this agreement they are not in violation of any other agreement with any other publisher, productions company, or recording label.

Part 3.2

In the case that the compositions submitted are not the artist's (ie: a cover of another artist's composition) the artist agrees to abide by all compulsory licensing laws and royalty payment standards. The artist also agrees to indemnify the distributor from responsibility in this matter and agrees to abide by the laws established.

Part 3.3

The artist indemnifies the distributor against financial loss and attorneys fees if a copyright infringement suit or similar action is adjudicated as meritorious, or where a copyright infringement has been settled with the writer's consent.

Part 4: Payment Structure and Schedule

All royalties and fees will be assessed on a "per receipt" basis. Any receipt reflecting a sale of up to $1.29, usually reflecting a single composition sale of the artist, will be assessed by schedule A. Any receipt reflecting a sale of a minimum of $1.29 or more, usually reflecting multiple composition sales of the artist, including whole album or EP sales, will be assessed by schedule B.

Schedule A:

Single composition sale - a fee of 39% of the sale price of the song will be charged by the distributor.

The artist will be paid the remaining 61% of the composition sale price.

Schedule B:

Multiple composition sales - a fee of 33% of the sale price of the song will be charged by the distributor.

The artist will be paid the remaining 67% of the composition sale price.

In the event that a single composition of the artist appears on a receipt of multiple compositions, the remainder being of other artists and titles, then the artist in this agreement will be paid at the rate set in Schedule B.

All receipts will be assessed and totaled at the end of each calendar month. Fees and royalties will be paid to each artist based on sales within this calendar month from all sources. All payments will be made five (5) days after the end of each month. The distributor will also provide a monthly report to the artist of all sales for that artist. This report will be sent to the primary contact in the case of a multi member band.

Part 4.2: Method of Payment

The distributor shall offer two payment methods as standard. The artist will be allowed to choose either a paper check issued from the authorized financial institution of the distributor, or the artist may choose to have their fees transferred via PayPal account. Again, in the case of a multi member band, these payments will be made to the primary contact and is the responsibility of this contact to make proper payments to the other members. The artist absolves the distributor of any responsibility in disputes of individual members regarding proper compensation and share of profits.

Part 5: Right to Audit

The distributor grants the right to the artist, if they choose, to examine the sales records of the distributor and any other related financial documents that report sales from all sources utilized by the distributor to sell and exploit the compositions submitted. This shall include the statements given by all affiliates engaged in the sales of the artist's compositions. The artist may choose to enlist the services of an outside qualified accountant to review these records but will be themselves responsible for all costs incurred.

If error is found and the artist is owed any overdue fees, the distributor shall pay these fees in full and will be allowed by the artist thirty (30) days to do so.

Part 6: Reversion and Right to Archive

In the event that the artist leaves this agreement or the distributor cancels said agreement, the distributor shall remove the compositions of the artist from the active sales catalog. The artist grants right to the distributor to archive and keep on file all "acoustic fingerprints" of the compositions and the digital archive of all material associated with the artist and their music that has been submitted to the distributor. Upon leaving this agreement, the artist will be offered the option to continue to allow affiliates of the distributor continued broadcast rights under the same conditions stated in this agreement.

Upon termination of this agreement the distributor will pay all final fees due the artist within thirty (30) days of the agreed final day of active sales of the artist's compositions and are removed from the online catalog.

Part 7: Composition Pricing:

The distributor, unless otherwise requested by the artist, establishes that the selling price per composition at the current industry standard of ($0.99). The artist may at any time request to change any or all composition prices within the distributor's catalog. Information for this process will be emailed to the artist in the "Confirmation of Service" email from the distributor.

Part 8: Arbitration

The parties agree to submit all disputes to the American Arbitration Association, or equivalent service, and be bound by and perform any award rendered in such arbitration.

McCort Entertainment reserve the right to refuse distribution of any materials deemed to be malicious in intent toward any peoples or government throughout the world. The distributors do not support any political, racial, religious or personal agendas especially those inciting violence. The opinions of the artist do not reflect that of distributors. McCort Entertainment is an equal opportunity distributor and will not refuse service based on race, ethnicity, religious preference, or gender except those deemed to be malicious in intent.

Artist interested in distributing and promoting through our services should contact our distribution department through the email listed on this page. Interested artists need to include artist or group name, primary contact, primary contact's phone numbers and an email, the genre of music and a short description of the band and members. All requests will receive an introductory email with a copy of the agreement and signature pages as well as song submission and Artist Relations contact information.

-revised 05/2009

-terms and agreements subject to change