Highlights of Dorchester Contract Amendment

E-BOOK AND TRADE ROYALTIES (Section F)
E-BOOK (F.2.g.) – Until the Work has earned out, Publisher shall pay royalties to Author for Publisher’s sales of the Work in electronic form at a royalty rate equal to twenty five percent (25%) of net receipts, and a royalty rate of thirty five percent (35%) of net receipts thereafter. These royalty rates shall be applied on all statements calculated after the signing of this amendment; previously contracted royalty rate(s) shall apply and remain unchanged for any prior statements. “Earned out” is defined as the Author having accrued total royalties at least equal to the advance paid to Author in anticipation of future sales, such total royalties accrued at appropriate rates from sales of the Work in whatever form, including collected monies for the disposition of rights. “Net receipts” are defined as one hundred percent (100%) of all amounts actually collected by Publisher from its customers, distributors and agents, on account of the reproduction, distribution, or display of E-Books.

TRADE PAPERBACK (F.2.) – On trade paperback copies sold in the English language above Publisher’s cost, Publisher shall pay to Author the higher of the following two rates: 1) the originally contracted rate for mass-market paperbacks, or 2) a royalty rate of seven and one half percent (7.5%) of the retail cover price. No royalty shall be paid on copies sold or distributed below Publisher’s cost.

ACCOUNTING FOR ROYALTIES

RESERVES AGAINST RETURNS (Section G)
1. No later than sixty (60) days after the next due date specified in the original contract for the Work, Publisher shall furnish Author with a statement of royalties due in accordance with the terms of paragraph F. Subsequent thereto, Publisher shall provide Author with a like statement no later than sixty (60) days after the close of any following 6-month period during which royalties become due.

Concurrently with each such statement, Publisher shall remit to Author any royalty or other payment due Author hereunder for the respective period covered by such statement, save when the balance to the credit of the Author at the end of any statement period shall be less than twenty-five dollars ($25.00), at which point no payment shall be rendered and the amount due shall be carried forward. Any statements rendered hereunder shall be final and binding upon the Author unless objected to in writing, setting forth specific objections thereto and the basis for such objections, within three (3) years after the date the statement was rendered.

2. At the time of each statement, Publisher shall withhold from royalties due on non-electronic copies a reserve for future returns based on copies shipped, whichever sum is greatest: 50% of the copies shipped within the past 6-month period, 20% of the copies shipped within the past 12-month period, 15% of the copies shipped within the past 18-month period, 3% of the copies shipped within the past 24-month period.

PAYMENT, PROTECTION AGAINST BREACH
Time will be of the essence with respect to the payment of all monies due and the rendering of accounts by the Publisher to the Author under this Agreement. Should the Publisher fail to pay monies due, including but not limited to any and all advances and royalties, or to deliver statements as agreed (unless such failure is due to a good-faith dispute between the Author and the Publisher) within the times provided for in the paragraphs above, Author shall be entitled at anytime thereafter to give the Publisher a
written demand by registered mail demanding the statement and/or payment then overdue. If the Publisher fails to provide the statement or payment then overdue within forty-five (45) days of such demand, then the Author shall have the right to give notice in writing by registered mail that this Agreement be canceled and demand that all rights in the Work granted herein shall revert to the Author forthwith, without prejudice to monies due to the Author from the Publisher.

AUTHOR EXAMINATION OF ACCOUNTING
The Author may upon written notice examine the Publisher’s records insofar as they relate to the Works for the period of three years immediately preceding such examination. Such examination must take place during normal business hours under such conditions as the Publisher may reasonably prescribe.

If an error is discovered as a result of any such examination, the party in whose favor the error was made shall promptly pay the other the amount of the error. Any such examination shall be at the Author’s expense unless errors of accounting in the Publisher’s favor amounting to 5% or more of the total sum paid to the Author under this Agreement are found, in which event the Publisher shall contribute to the cost of the examination up to the amount of the error determined as a result of the examination. Any
mutually agreed underpayments discovered in the course of an audit will be paid within thirty (30) days of discovery and agreement.

REPRINTING (Section J)
In any six (6) month accounting period subsequent to the eighteen (18) month statement, if NEITHER: a print edition of the Work in volume form other than through on-demand services is available for sale in the United States in a full-length English language edition through regular trade channels and/or the Publisher’s order department, such edition under the imprint of Publisher or a licensee, published or licensed by Publisher, NOR: the Work is under option or contract for equivalent publication by a third party in the English language, THEN: if fewer than two hundred fifty (250) copies of the Work in ondemandprint and electronic formats have been distributed, Author shall have the right to make written demand on Publisher to provide within six (6) months after receipt by Publisher of such written demand,
one of the following, at Publisher’s option: (1) adequate stock to meet the then normal print demand for the Work; (2) arrangement of a reprint or book-club edition to be published within twelve (12) months of its receipt of Author’s written demand; or (3) arrangement of a promotion for its print-on-demand and electronic formats generating at least two hundred fifty (250) copies in sales within the next full six (6) month accounting period. If the Publisher fails to provide any of the above three options, then the Author
shall have the right to give notice in writing by registered mail that this Agreement be canceled and demand that all rights in the Work granted herein shall revert to the Author forthwith, without prejudice to monies due to the Author from the Publisher.
______________________________
Author Date
______________________________
Author’s Agent Date
______________________________
Authorized Agent Date
of Dorchester Publishing Co., Inc.

Share

Leave a Reply

Your email address will not be published. Required fields are marked *

25 − 24 =