Sub PopSub Pop Exclusive Recording Agreement1. This contract is for an exclusive recording agreement between Kurt Cobain, Chris Novoselic, Chad Channing, Jason Everman, from here on known as "artist" and SUB POP LTD., from here on known as label.

2. Artist agrees to record exclusively for the label under the conditions outlined in this recording agreement. Any adjustments and/or changes in this agreement shall be made solely between the label and the artist.

3. Artist agrees to record exclusively for the label for the duration of an initial one year term and two option years. This agreement shall be exercised by the conditions outlined further in this contract.

     3a. The initial one year term shall begin on Jan 1st, 1989 and shall end on Dec 31, 1989. The first option year, if all obligations agreed to by both artist and label in this contract are met, shall begin on Jan 1st 1990 and shall end on Dec 31st 1991. The third option year, if all obligations agreed to by both artist and label in this contract are met, shall begin __________ and shall end __________.
     3b. During the initial one year term and for each option year thereafter, artist will record and complete one normal album length master tape per term. "term", for the purposes of this contract, refers to the singular initial one year term and to each singular option year thereafter.
     3c. This contract is for 3 complete album length master tapes to be recorded by the artist for the label under the conditions provided for in this contract. That is: one complete album length master tape will be recorded and completed during the initial option year. One complete album length master tape will be recorded and completed during each option year, no earlier-no later.

4. Label agrees to provide artist with the following recoupable advances per term:
For the initial one year term, the label agrees to provide artist with a six hundred dollar advance, recoupable against royalties. (i.e. sales royalties)
For the first option year, the label agrees to provide artist with a twelve thousand dollar advance, recoupable against sales royalties.
For the second option year, the label agrees to provide artist with a twenty four thousand dollar advance, recoupable against sales royalties.
For the third option year, the label agrees to provide artist with a -------------- advance, recoupable against royalties.