SOUNDGARDEN
MISCELLANY

THE SUB POP CONTRACT, 1987

Taken 'From the Collection of Susan Silver Management' that appears in the Rock n' Roll Museum in Cleveland, Ohio. According to Vikki Anselmo, who copied down Items 1-8 below by hand: "Handwritten (with spelling errors) on 4 pages of ripped out loose-leaf paper, is the original contract between Soundgarden and Sub-Pop Records (1987). I assume it's a draft of the contract because the page with the binding signatures was not included in the display. It took me an hour to hand write 75% of the contract on two R-n-R Museum programs." Item 9 to the end of the contract was copied by Steve Russell Jr.

1. This contract is made between Jonathan F. Poneman and Bruce Pavitt, acting as Sub-Pop Records (hereinafter referred to as "Sub-Pop") and Chris C., Matt, Hiro & Kim (hereinafter referred to as "Soundgarden") Sub-Pop hereby employs Soundgarden to render personal services for Sub-Pop, or in Sub-Pop's behalf, for the purpose of recording and/or making phonograph records.

2. Sub-Pop reserves the right, at their election, to suspend the operation of this contract if, by reason of sickness, injury, accident or refusal to work, fails to perform hereunder in accordance with the provisions hereof, or if due to any other cause not entirely within Sub-Pop's control or which we cannot by reasonable diligence have avoided, we are materially hampered in the recording, manufacturing, distribution or sale of records, or our normal business operations become commercially impractical. Such suspension shall be upon written notice to you and shall last for the duration of any such contingency. At Sub-Pop's election, a period of time equal to the duration of such suspension shall be added at the end of the then current period of the term hereof, and such period and the term hereof shall be accordingly extended.

3. Sub-Pop agrees to loan Soundgarden three thousand dollars for the production and manufacture of phonograph records (see #5). This money shall be redeemed at a royalty rate of %100 until the $3,000 loan is paid in full to Sub-Pop. From that point on, all profits derived from the sale of aforementioned Soundgarden record shall be split evenly between Soundgarden and Sub-Pop.

4. Sub-Pop reserves the right to use and to allow others to use Soundgarden's name and likeness, and biographical material concerning Soundgarden, for advertising and purpose of trade, and otherwise without restriction, in connection ith services performed.

5. For the purposes of this contract the terms "records" or "phono records" shall include all forms of recordings manufactured or sold primarily for use as home entertainment. (tapes, CDs, etc.)

6. Sub-Pop shall authorize and supervise all art work and promotion with regards to aforementioned Soundgarden record. To this end, Sub-Pop shall provide $1,000.00 for promotion of aforementioned Soundgarden record.

All money used for production, manufacturing, promotion and distribution will, hereafter, be referred to as advance. Advance money for maxi 12" will be itemized as follows:

  1) recording    $2,000
  2) art design   $500
  3) shipping     $250
  4) promotion    $1,500
  5) manufacture  $3,500 (for 2000 units)
Items 1-4 are recoupable once, manufacturing costs will be recalculated and accounted for as they're accrued. Manufacturing costs will be deductedfrom the gross sales and will be adjusted according to fluctuations in manufacturing costs. Sub-Pop retains the sole right to determine how many pressings will occur. After manufacturing costs are deducted, Sup-Pop will pay Soundgarden 20% of the remaining net profits. This will be determined on a wholesale cost of $4 per unit. Unit cost may be adjusted according to manufacturing cost fluctuations. Sub-Pop will owe no money on cutouts or promos.

7. Sub-Pop reserves exclusive rights over the music featured on any Sub-Pop release, for three years from actual release date.

8. After that three year period, Soundgarden is free to use the songs in any other recording project, the actual masters, mixes and recordings of these songs and the use thereof shall remain exclusively Sub-Pop's for commercial purposes for 10 years from the actual release date. Sub-Pop retains the right to manufacture ay record in its catalogue for an indefinite period of time.

9. Shall provide information as to where and how the record is being distributed and marketed and at what cost. Royalty checks will be paid on a quarterly annual basis, providing there is royalty to be paid (refer to #3). After two years, statements and royalties will be made on a semi-annual basis.

10. "Cut outs" and other records sold at a loss or under production costs, will not be subject to royalties. All money made by these records will go to Sub-Pop to recoup losses incurred.

Items 1-4 are costs that are recoupable once manufacturing costs will be recalculated and accounted for as they're accrued. Manufacturing costs will be deducted from the gross sales on the maxi 12" and will be adjusted accordingly to fluctuations of manufacturing costs. Sub-Pop retains the sole right to determine how many pressings of the maxi 12" will occur.

After manufacturing costs are deducted Sub Pop will pay Soundgarden 20% of the remaining net profits. This will be determined on a wholesale cost of $4.00 per unit. Unit costs maybe adjusted according to manufacturing cost fluctuations. Sub Pop will owe no money on cut-outs or promo copies.