AMERICAN GUILD OF MUSICAL ARTISTS

AND

SAN FRANCISCO OPERA

We are pleased to inform you that AGMA and San Francisco Opera have amicably resolved the issues regarding payment of health and pension benefits to principal artists in a way that benefits the greatest number of principal artists and ensures the continuity of a harmonious relationship.

As you know, this issue has been in dispute for the past year and AGMA and SFO have been able to resolve this matter as follows:

1. Starting in fall 2008, SFO will pay both the health contributions and retirement benefit contributions as specified in the CBA on top of negotiated fees. SFO will issue notices to artists upon arrival in San Francisco for their engagement with a revised fee breakdown for contracts already issued. Copies of these revised breakdowns will be sent to AGMA and the artists' managers.

2. For performances prior to August 1, 2008 (either retroactively or at the time of performance), SFO will pay the health contribution specified in the CBA on top of the negotiated fees with retirement benefits contributions still withheld from overscale.

We thank the many artists and managers whose input has helped AGMA and SFO resolve this matter. This settlement could not have been accomplished without a shared deep respect by SFO and AGMA for the principal singers and the tremendous gifts that they bring to our art form and the stage of the San Francisco Opera.

AGMA and SFO are also pleased to announce that the side letter allowing expanded media activity was ratified by the Executive Council of the AGMA board.

Both SFO and AGMA thank you for your support.