The following is the text of correspondence from Col. Parker to Elvis, dated January 2, 1967, in which he details amendments to their management contract, which had been previously discussed by phone.
January 2, 1967
Mr. Elvis Presley
3764 Highway 51 South
As per our understanding on the telephone a few weeks ago here is the amended agreement pertaining to our existing management agreement. The following will be effective as of this date, January 2, 1967:
The regular 25% management commission on existing contracts, their renewals, and new contracts that may be negotiated and completed, will remain the same on all the flat payments.
As of this date on all existing contracts except the music firms contracts, all overages on royalties other than the guaranteed payments now in effect, and profit participations on any contracts now in existence and their renewals, will be 50% to Elvis Presley and 50% to All Star Shows on all overages and profits. All expense payments will be 50% to Elvis Presley and 50% to All Star Shows.
If any agency commissions are to be paid on any contracts this commission will be deducted before division of royalties and profits is made.
The merchandising agreement will remain the same as now in existence.
Regular music firm payments will remain the same as in the past.