Key Man Clause
Contract provision that allows artists to terminate agreements if specific essential personnel leave the management company, label, or agency.
Definition
Key man clauses protect artists by tying contracts to specific individuals whose expertise or relationships were crucial to the original deal. If these key personnel leave the company, artists can exit their agreements without penalty.
These clauses recognize that artist relationships are often built with specific individuals rather than companies, ensuring artists aren't bound to organizations that no longer provide the expected level of service or expertise.
Why It Matters
Key man provisions prevent artists from being stuck with ineffective representation when the people they actually work with leave for other companies. This protection is especially important in long-term management and label agreements.
Negotiating key man clauses provides artists with exit strategies that maintain their ability to work with trusted industry professionals, even when those individuals change company affiliations during contract terms.
Examples in Practice
Management agreements often include key man clauses tied to specific managers, allowing artists to follow their representatives if they start new companies or join different management firms.
Record label deals may include key man provisions for A&R representatives who signed the artist, recognizing that these relationships are crucial for ongoing artistic development and label support.
Booking agency contracts sometimes feature key man clauses for specific agents who understand the artist's market and have established venue relationships essential for effective touring coordination.