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I don't think there was an agreement between SY and Geffen to let SY "sign" artists to the label. As far as Nirvana getting signed it was just SY saying to Geffen "hey, check this band out, they would be a good band to sign" and Geffen deciding on their own to sign them. Not because they were contractually obligated to sign a band because SY said to. Correct me if I'm wrong, though.
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