This is a contract between the Artist/Band and the Record Company.
This form states the term of the contract, the number of recordings that are expected to be recorded by the Artist/Band, the rights of the Record Company(to sell, advertise, use the artist/band's name, etc.). This contract also states the duties of the artist, the amount of royalties that will be paid to the Artist/Band, when royalties will be paid and how often. This is a good agreement for Independent labels as well as established labels.