I am still of the opinion that the OP should be figuring out how to say yes.
The Jody dilemma is likely something that can be resolved by simply communicating with everyone and figuring out what your friend wants. As someone pointed out, he's already fired. Stop the battles you're having in your imagination and talk you the gent.
The contract dilemma.. Never sign a contract that's handed to you. Take it home, get out the highlighter markers (red/yellow/green). Read though and go to work figuring out the parts to keep, toss, change. Maybe ping your attorney for a read through (1h of time usually). Change the contract to your liking and hand it back to the band.