TERMS OF AGREEMENT:

This agreement is entered into by Terrance Schemansky (3000 Records) and all participating persons (participants) on a CD to be released by 3000 Records with each participating musician's, artist's, and band's original music.

I. 3000 Records will not be held responsible for: Lost copies of any music material (D.A.T, CD, CD-R, cassette, or other forms of media) in the mail.

II. Participants will initially be allowed to purchase up to 3000 copies of the CD at wholesale prices plus shipping expenses. Participants may request permission to purchase more than 3000 copies of the CD. Should permission be granted, the artist will pay the wholesale price plus shipping expenses along with standard royalties of $.0755 to each song owner on the CD. Every participant on the CD will be notified of requests for more than 3000 copies.

III. 3000 Records will be permitted to sell an equal amount of CDs as each participant (initially up to 3000 CDs). Further pressings of the CD will entitle each artist on the CD to standard royalties of $.0755 per CD. Each participating artist will be notified of further pressings. 3000 Records shall be permitted to seek and receive sponsorship from other companies in order to receive financial support if necessary

IV. Each participant will reserve their space by filling out the Participation Form and submitting the completed Participation Form to 3000 Records through the 3000 Records web site. Failure to provide music for the CD or pay the complete balance for any money owed will result in losing the reserved space on the CD.

V. Each Band will keep full rights to their own music on the CD. Neither 3000 Records nor any musicians appearing on the CD has the right to reprint or reissue the CD in it's contents without consent of 3000 Records, each musician, artist, band, and song owner with music on the CD. Participants and song owners with music to be on the CD have all necessary consents, authorization and licensing to permit 3000 Records to include the song(s), names, and related information on the CD.

VI. Music material sent to 3000 Records will be returned to participants once the CD is pressed on request for a $5 handling free.

VII. Important: 3000 Records along with all participating artists and bands may sell their copies at the price they choose, or give their copies away. Participating artists and bands agree that the recommended selling price of this CD shall be between $10.99 and $15

VIII. Important: 3000 Records along with all participating musicians, artists, and bands agree that this CD may be sold at the price decided by the CD owners. $5 is the recommended sale price. No royalties shall be paid.

This agreement may be amended by mutual written agreement of the parties involved. Every artist, and song owner of music to be on the CD has read, understands, and agrees to these terms.