Legal Question in Entertainment Law in North Carolina

clauses in contract

This clause seems unfair. Shouldn�t the figures be closer to a two-year fix with lower percentage payments?

�Notwithstanding anything to the contrary above, Company�s participation in your Gross Compensation earned, received or credited after the Term in connection with you services and activities rendered, or products created after the Term pursuant to contracts or agreements (oral or written) entered into or substantially negotiated prior to or during the Term, including any all renewals, extensions, modifications, substitutions, and additions thereto, shall continue for a period of four (4) years following the expiration or termination of the Term hereof (the �Post Term Period�), and shall be at the following applicable percentages:

Post-term Years Company�s Participation

1 15%

2 101/2 %

3 7%

4 5%


Asked on 8/03/02, 11:33 am

1 Answer from Attorneys
Adam Hirshfield Adam E. Hirshfield, Esq., PLLC

Re: clauses in contract

Is this Veeda again?

Sunset clauses are negotiable. You have to do what you feel is right. However, what you've been offered is a lot more reasonable than other sunset clauses I've seen. I've also seen sunset clauses that allowed for lower post term percentages.

You should really seek advice of counsel on this.

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Answered on 8/03/02, 4:45 pm


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