The exit clause is perhaps the most important clause in the band agreement. It stipulates the conditions under which a band member may leave the band, and outlines the actions that can be taken when a band member must be terminated, and for what reasons this may be done. It prevents long, drawn-out arguments over these particularly sensitive issues of band life and prevents one member’s departure from creating problems, or even a collapse, for the whole band.
The purposes of the exit clause are:
To facilitate the departure of band members in as clean and professional a manner as possible;
To ensure that the departure of a band member does not jeopardize the band financially, structurally, perceptually or with regard to intellectual property issues;
To ensure that the information the media and public receives from the band and the departing band member is uniform and consistent;
To ensure that a replacement can be brought in smoothly, trained in the songs that the former band member played on that instrument, and with no legal roadblocks to recruitment left in place by the departing band member.
A good band agreement will have a thorough exit clause that meets these goals and resolves any issues arising from them, and will typically contain the following stipulations:
1. Media Release on Exit
A media release must be developed on the exit of any band member. This is a joint public statement which can be sent to media, or on a smaller scale, placed on the band website so that loyal fans have a unified view, and not opposing views, of what occurred between the exiting band member and the rest of the band.
2. Payment Withholdings
Any payments/settlements owed to the departing band member will not be paid until they have worked with the band to craft and publish a media release, under the agreement that they will not make statements that contradict the release.
3. Completion of contracted performances
No band member intending to exit the band will put contracted performances in jeopardy. This one is a HUGELY IMPORTANT one. Imagine it: you’ve just scraped up the huge amount of cash it takes to put on your own tour, and one of the band members wants to leave. They’ve not only sent you broke with no means to recoup that money, but hung you and the band out to dry. The condition must be that the member will give sufficient notice to the band and complete any remaining contracted performances. If this is disregarded, there are grounds for legal action and the band will collect damages.
The band can also use their discretion to determine whether the exiting band member is reasonable in wishing to leave before the completion of contracted performances.
4. Transfer of professional relationships
If the exiting band member is the holder of professional relationships directly affecting the band, the exiting band member must transfer this relationship to the band before leaving, without damaging or defaming the relationship between the band and the professional.
5. “Negative position”
The exiting band member should not leave the band in a negative position that could allow the band to sue the exiting band member.
6. One month’s notice
The exiting band member must officially notify the band at a meeting one month before exiting. This condition is superseded by (3) Completion of contracted performances, so if there are contracted performances a month and a half from the official notification, the exiting band member must attend them. Again, the band can use their discretion to determine whether the exiting band member is reasonable in wishing to leave before the official exit date set in the meeting.
7. Successor recruitment
Depending on the way in which the band member leaves, they may be expected to assist in recruiting a replacement and teaching the band’s repertoire to them. The exiting band member must do as best they can within their skills to document any musical notation or tablature for their instrument, or obtain help to do so.
The second clause, regarding the withholding of payments, can be modified to stipulate that all exit conditions must be met before payments are issued, but otherwise, the consequence is often legal action.
Having a band agreement with a strong exit clauses is one of the best things you can do for the longevity and success of your band. Get to it!
Read more about the Band Agreement in the Establishing Your Band series.