Unless otherwise expressly agreed to in the terms of a Funding Offer and Letter of Direction, during the Term of a Funding Offer, any money received by Indify and/or a distributor collaborating with Indify related to that Release will be distributed as follows (subject to any deductions submitted by the Investor or team member and agreed upon by the Artist):
- First, to the Investor and Artist in proportion to the Splits designated by the Investor in the Funding Offer (and Letter of Direction, if applicable) before recoupment until the Investor has recouped 100% of the Advance; however, please note that the Investor has the right to designate its Split before recoupment in its discretion for any percentage between (and including) 0% and 100%.
- Second, to the Investor and Artist in proportion to the Splits designated by the Investor in the Funding Offer (and Letter of Direction, if applicable) after recoupment. As payment for rendering the Services, Indify will receive 15% of the money apportioned to the Investor's Split after recoupment.*
Artists are responsible for ensuring that the payout terms in a Funding Offer and/or Agreement are accurately reflected in a Letter of Direction, including any agreed-upon payments to Indify. By executing an Indify Offer (and a Letter of Direction, if applicable) through Indify, you acknowledge and agree that the above Splits percentages are based on 100% of all streaming income grossed from the exploitations of the Releases subject to the Indify Offer, also known as Gross Income in the Offer Glossary. Pre-approved deductions from such Gross Income shall only include the standard most-favored nation (MFN) fees retained by digital service providers (such as Apple, Spotify, Amazon, YouTube, Tidal) and at most a 10% distribution fee by any third party entity (such as distributors and record labels). All other reductions payable to distributors, indie labels or major record labels shall be subject to mutual approval.
*Additional payments to Indify for rendering the Services may be set forth in the applicable Funding Offer and/or set out in a Letter of Direction. For clarity, such additional payments to Indify (and details on who pays Indify, if any) may vary from Offer to Offer but will always be subject to agreement first by Artist and Investor. Artist agrees to work with Indify in selecting a distributor. In some instances, Investor may have a preferred distributor, and use of the preferred distributor will be subject to Indify’s discretionary approval. Upon approval, Artist shall execute a Letter of Direction and be responsible for confirming the accuracy and flow of earnings; however, if the preferred distributor does not execute a Letter of Direction, Artist shall be responsible for ensuring that accurate payments are made in accordance with the designated Splits as set forth in the Funding Agreement, and the Investor acknowledges that it is aware of the risks, which include the risk of inaccurate earnings or payments.
An example detailing Splits and how money may be earned and paid out to the parties via the Services is shown below.