This isn't a recording contract. You're buying a promotion service
and CD manufacturing.

Check just what that $1-per-CD covers. CDs packaged and wrapped, ready
for sale? Or something else? How does that compare with the cost of
production if you bought direct?

Are you really hoping this CD makes it big? Or will it provide a
moderate but steady income on sale after gigs etc?

After the year is up, who retains ownership of the product?