Exclusive Non-Profit Publishing & Distribution Agreement
AGREEMENT MADE this the (insert date), between
Treehouse Publishing Group
represented by Annmarie Wanegar, Founder
(Referred to as the “Publisher” with creatives referred to as “author” and/or “illustrator”)
and
(Insert Non-Profit Name)
represented by an authorized representative (Insert Name)
(Referred to as Non-Profit).
WHEREAS the Non-Profit wishes respectively to have an “exclusive” children’s book created and published by the Publisher AND this book (referred to as the “Work”) will be provisionally titled:
(Insert Tentative Book Title)
Final Notes and Time Line to be submitted to the Publisher by the Non-Profit not later than the Due Date of: (Insert Date)
NOW, THEREFORE, they mutually agree as follows:
Creation of Content: The Publisher and Non-Profit will collaborate as follows: Editorialize and organize the story’s content, review, revise and approve all grammar and punctuation, create and approve the necessary art/illustrations for the Work, create and approve the art/illustrations/design for any merchandising opportunities that may arise for this Work.
Scope of Project: The project scope is only an estimate, as the project may change AND changes may change cost estimates associated with the project. As this agreement provides, the Nonprofit is contracting the
services of the Book Creator to create a storybook meeting these criteria:
General Details:
| Final Book Dimensions | |
| Number of Pages | |
| Type of Binding | |
| Writing | |
| Illustration | |
| Intended Audience |
Book Topic / Concept:
Timeline to Completion
It is understood by both parties that publishing an exclusive storybook requires commitment, time,
Consideration and communication. There will be creation, followed by revision, followed by editing.
While they are only estimates, the following benchmarks will help all parties stay on track to meet the
preferred deadline. The final product will contain content that is agreed upon and approved by the
authorized representatives of both the Publisher and the Non-Profit.
Estimated Benchmarks / Time Line:
Print and Distribution Rights
The Non-Profit grants to the Publisher, during the term of copyright, including renewals and extensions thereof; exclusive right in the English language, throughout the world, to:
- a) Subsidiary Rights and Licenses:
The Publisher and Non-Profit will collaborate, throughout the USA and the world, within applicable marketplaces and by mutually agreed upon means, to sell or license the rights in the Work indicated upon such terms as the Publisher deems advisable. Any rights to be granted to a third party by either party will NOT be granted without discussion and mutual consent, including but not limited to:
- bookclub rights;
- textbook rights;
- anthology rights;
- first serial rights (i.e., the publication of condensations, excerpts, digests, serializations,
- and extracts in newspapers and periodicals before first publication in book form);
- second serial rights (i.e., the publication of condensations, excerpts, digests, serializations,
- and extracts in newspapers and periodicals after first publication in book form);
- selection rights, (such as a catalogue that produces its own edition of the work);
- abridgment/condensation rights;
- large print rights;
- mass-market paperback rights;
- trade (quality) paperback rights;
- foreign language rights;
- British Commonwealth rights;
- merchandising and commercial rights;
- audio rights (i.e., the right to use or adapt the Work or any portion thereof as a basis for audio through any method of recording or transmission now known or hereafter devised, including, without limitation, copying or recording by phonographic, magnetic, laser, electronic, or any other means and whether on phonograph records, audio cassettes, audio discs, or any other human or machine-readable audio medium and the broadcast or transmission thereof, now known or which may be devised in the future);
- online database (via time-sharing access equipment or direct downloading);
- CD-ROM optical discs in all forms now or to be utilized; including ebooks, audiovisual or animated presentations
- all other forms, formats, platforms, and standards now in use or which may in the future be in use during the term of this agreement and its option terms; and
- picture, dramatic, television, radio, and allied rights.
- b) Exclusive right to license in all foreign languages and all countries, the rights granted in subparagraphs (a) and (b) above;
- c) The right of first refusal as to any sequel, revision, or republication of the work. During the period of this agreement, and for five (5) years thereafter, except in the case of termination in accordance with paragraph 17 herein, the Non-Profit shall not submit any sequel, revision, or republication of the Work to other publishers, nor seek offers from nor negotiate with others, with respect thereto until first offering said work to the Publisher. After submission of the said proposed sequel, revision, or republication, the Publisher shall have thirty (30) days to determine whether to publish the said next work; if so, the parties shall negotiate in good faith the terms of the publishing agreement. If the parties are unable to reach an agreement before the thirty (30) days shall expire, then the Non-Profit shall be free to offer the said sequel, revision, or republication to others, but only on terms more favorable than those offered by the Publisher. The Non-Profit shall notify the Publisher in writing of such offer, and all particulars, within seven (7) days of the receipt of said offer, and the Publisher shall have the right for thirty (30) days to match the said offer of any other publisher.
- d) To use or license others to use the approved name, likeness, and biography of the Non-Profit, the work and the title of the work, in whole or in part, or any adaptation thereof as the basis for trademark or trade name for other products or for any other commercial use in connection with such other products.
- e) The Publisher retains all rights to the art/illustrations created for the Work and all merchandise for the purpose of marketing its publishing/illustration services, to appear in the Publisher’s portfolio and on the Publisher’s website for the life of the art/illustrations. This right is not limited to the term of this contract.
- f) The Publisher, on behalf of the artist, retains the right to be compensated in the form of a 10% royalty for any book/merchandise/product on which the art/illustrations of this Work appears “for a financial gain” AND that was not produced by the Publisher AND for which the Publisher did not give expressed written permission. You must receive the Publisher’s expressed written permission before using any art/illustration from this work for reproduction or resale. This right is not limited to the term of the contract. This royalty is void only if the Non-Profit outright purchases the art from the illustrator and/or publisher upon expiration or cancellation of this agreement.
The Publisher and the Non-Profit MUST both give written consent for all means of distribution.
The Publisher and the Non-Profit MUST both give written consent for all marketing content.
There MUST be a mention of BOTH the Publisher and the Non-Profit by name in all approved distribution channels and marketing content.
Copy & Copyrights
Delivery of Satisfactory Copy (applies if manuscript provided by Non-Profit) — The Publisher requires receipt of an acceptable rough draft manuscript during the Non-Profit’s application process. The Author agrees to deliver ONE complete copy (never send originals) of the revised manuscript of the Work in the English language, together with any necessary permissions and all photographs, sketched ideas and notes regarding art/illustration suggestions necessary to the completion of the Work not later than the due date provided on Page one.
Delivery of Satisfactory Notes & References – The Publisher requires receipt of story timeline, content notes and photo references by the submission due date. Delays should be communicated, if required.
Permission to Develop Content (applies if the manuscript will be created by Publisher’s writing team) – The Non-Profit grants permission to the Publisher to share content timeline, notes and references with their writing and illustrating team for the sole purpose of creating the Work. Non-Profit understands that all members of the Publisher’s team are required to sign and are bound by a confidentiality agreement in order to protect all data related to the Work.
- Permission for Copyrighted Material: If the Non-Profit wishes for the Publisher to incorporate into the work any copyrighted material, the Non-Profit is required to procure, at their expense, written permission to reprint it. This includes but is not limited to reprint the use of photos of people, places or objects.
- Non-Profit’s Warranties and Indemnities: The Non-Profit warrants that they are the sole owner of all the rights they have granted to the Publisher; that the Non-Profit has not previously assigned, pledged, or otherwise encumbered the same; that the Non-Profit has full power to enter into this agreement; that except for the material obtained pursuant to Paragraph 1, the work is original, has not been published before in the form submitted by the Non-Profit, and is not in the public domain; that it does not violate any right of privacy; and that it does not infringe upon any statutory or common-law copyright.
The Non-Profit agrees to indemnify and hold the Publisher harmless from and against all loss, cost, expense or liability (including reasonable attorney fees) attributable to such defense or settlement of any claim, action, or proceeding that is based on copyright infringement, plagiarism or fraud. The Publisher shall have no liability for any damage sustained by the Non-Profit as a result of any claim, action or proceeding that is based on copyright infringement, plagiarism or fraud.
In the event of any claim, action, or proceeding based upon an alleged violation of any of these warranties, (I) the Publisher shall have the right to defend the same through counsel of its own choosing, and (ii) no settlement shall be effected without the prior written consent of the Non-Profit, which consent shall not unreasonably be withheld, and (iii) the Non-Profit shall hold harmless the Publisher, any seller of the work, and any licensee of a subsidiary right in work, against any damages finally sustained. If such claim, action, or proceeding is successfully defended or settled, the Non-Profit will be responsible for all reasonable fees including legal/counsel fees attributable to such defense or settlement of any claim, action, or proceeding that is based on copyright infringement, plagiarism or fraud.
If any such claim, action, or proceeding is instituted, the Publisher shall promptly notify the Non-Profit, who shall fully cooperate and shall have the right but not the obligation to participate in the defense thereof, and the Publisher may withhold royalty/commission payments of reasonable amounts due the Non-Profit under this or any other agreement between the parties. The Publisher shall withhold royalty/commission payments only if there is a question of copyright infringement in play.
Such payments shall be released within one year if there is no action pending. These warranties and indemnities shall survive the termination of this agreement.
- Conflicting Publication: The Non-Profit agrees that until termination of this agreement, she/he will not, without the written permission of the Publisher, publish or permit to be published any book that is directly competitive with the work nor to publish this title with any other publisher or to market it through any other publicized channel. The Non-Profit agrees that the Work will be solely published through this Publisher for wholesale, retail and merchandising.
- Date, Style, and Price of Publication: The Publisher shall publish the Work and market it in such style and manner, under such imprint and at such price as it deems suitable. The Publisher shall not be responsible for delays caused by any circumstance beyond its control. In no event shall the Publisher be obligated to publish a work which, in its opinion, violates the common-law, statutory copyright, is deemed immoral in content, violates the right of privacy of any person or contains libelous or obscene matter
- Proofreading and Non-Profit’s Corrections: The Non-Profit agrees to read, revise, correct, and return all proofs of the Work promptly. The Non-Profit agrees to abide by any attached Art/Illustration/Content/Revision Instructions so that the creation process will run smoothly and efficiently.
- General Copyright: Written word and Art/Illustrations are automatically protected by US law when created in the USA. According to law the copyright of the written work is retained in the name of the author and art by its artist in the United States. If the Non-Profit wants to further copyright the Work he or she must do so at his/her own expense. All books are rendered to recognize the Publisher, Author and Artist by name BUT also to state that the storybook is produced for the Non-Profit by name.
Compensation
ROYALTY PAYMENTS: The Publisher shall pay to the Non-Profit a royalty on every book copy/ merchandise sold by the Publisher and paid for, less actual returns and a reasonable reserve that is held back for processing returns. [note: typical reserves can be up to 20 percent of monies owed]
CONSUMER BOOK SALES: To the Non-Profit the Publisher will pay 35% of the net selling price of each book copy. The final net selling price is defined as the amount of money earned from the sale of the book after costs of shipping and reduction of any coupon or discount offered. Bear in mind that the Publisher has absorbed the cost of creation and production for your title. The publisher does need to pay the writer, illustrator, printing costs and marketing cost associated with this Work.
BULK BOOK BUYING: The best profits on your book(s) are made by the Non-Profit purchasing copies at cost plus shipping rates and then reselling directly to supporters in person, at public events or fundraisers. On bulk purchases: Non-profits understand that the Publisher WILL quote the printing and shipping costs for any bulk copies needed. In the printing industry, the more copies you purchase the lower the cost per copy will be. The Non-profit will be solely responsible for the marketing and sale of bulk copies. The Publisher will not pay royalty on bulk copies, as 100% of the proceeds collected by the Non-profit will remain with the non-profit. In the event of the non-profit purchasing bulk copies, the Publisher agrees to NOT sell individual book copies. However, the Publisher is still permitted to market gift set options that pair the book with the merchandise.
CONSUMER MERCHANDISE SALES: To the Non-Profit the publisher will pay 15% of the net retail selling price. For wholesale orders: 15% of the wholesale price paid by any reseller. Bear in mind that the Publisher has paid the costs of goods for the merchandise, production, marketing, freight. Most traditional publishers do not even offer a merchandising option. At this time “merchandise” can only be shipped to US destinations.
INTERNET SALES: To the Non-Profit the publisher will pay all NET proceeds of the Amazon selling price for book sales. Amazon, BandN.com and other online retailers have fees that vary for sales, the net proceeds on these sales are defined as the sale price less any seller fees and shipping costs. The Publisher manages and processes these sales for the Non-Profit, no action is required on your part.
ONLINE PAYMENT PROCESSING: When books are purchased using any credit card method, the credit card fee is defined as part of the “cost-plus shipping” equation that determines your profit.
WHOLESALE & ALLIANCE OPPORTUNITIES: Both the Publisher and Non-Profit agree to communicate any “Offers” and/or “Opportunities” for wholesale, bulk and retail selling options to one another for consideration and collaboration so that an informed joint decision may be made on each offer individually.
NON-ROYALTY COPIES
- No Royalty Copies: No royalty shall be paid on sample copies, copies donated to charities, or copies traded for additional advertising or marketing exposure. No royalty will be paid on free or “at cost plus shipping” copies sent to book review agencies, bloggers, as samples to aid sales efforts.
- Non-Profit Copies: On publication, the Publisher will make available copies to the Non-Profit at cost plus shipping. No royalties will be paid by the Publisher to the Non-Profit for any copies issued at cost plus shipping rates because we did not collect any profits.
- If the Non-Profit requests for FREE copies to be sent out to any person or place, the Non-Profit shall pay for those copies at “cost plus shipping” rates.
REPORTS & PAYOUTS:
The Publisher shall render quarterly statements to the Non-Profit and shall mail such statements during the month following, together with checks in payment of the amounts due.
First Quarter: Jan 1 – Mar 31 …….…. Mailed by April 30
Second Quarter: April 1 – June 30.…. Mailed by July 30
Third Quarter: July 1 – Sept 30 …….. Mailed by Oct 31
Fourth Quarter: Oct 1 – Dec 31 ….…. Mailed by Jan 31
If you prefer to be paid via PayPal or another electronic method, fees for the use of that method will be deducted from your royalty earnings. Should the Non-Profit receive an overpayment of royalty arising from copies reported sold but subsequently returned, the Publisher may deduct such overpayment from any further sums due to the Non-Profit. Upon written request, the Non-Profit may examine or cause to be examined through certified public accountants or other qualified representatives the books of account of the Publisher insofar as they relate to the sale or licensing of the Work at the sole cost of the Non-Profit. If there is a discrepancy of more than ten percent (10 percent), the cost of the audit will be borne by the Publisher.
Note: Wholesale, “at cost” and some retail prices are subject to change by the production printer and/or the reseller. Experiencing minor fluctuations in price and profit per book sale is not highly unusual or cause for investigation. The Publisher maintains an open-door policy about statements or earnings and generally any questions you may have can be put to rest through simple communication.
MARKETING EFFORTS:
- Marketing Contributions – The Publisher shall implement appropriate and authorized marketing strategies to help sell the Work. These marketing strategies will be outlined in the monthly “Offer Packets” provided by email. Only approved strategies will be implemented. All advertising/marketing for the title that is provided by the Publisher will include mention of the non-profit and that proceeds benefit their cause.
- Non-Profit Marketing Contribution Requirements – “It takes a village to raise up an unknown book title”. All our Non-Profits pitch selling their book title(s). The Publisher is happy to provide you with print-ready files for anything you need to market your book(s) including but not limited to: social media banners and imaging, print-ready vinyl banner signage for public events, etc.… If you need help printing things like banner, brochures, etc.… the Publisher has a wholesale account for that and is happy to allow the Non-Profit to purchase at cost through that account.
- Credit Where Credit is Due – All advertising, marketing and publicity (whether online, in print, radio, anywhere, including product selling pages on websites) mentioning the book WILL contain “created and published by Treehouse Toons, www.treehousetoons.com” In addition to the Non-Profit’s information. Credit shall be given to the author of the written content AND the illustrator of the images in all advertising in some way (whether it is through a clear image of the cover which stated their names, or by mention within context of an article or advertisement).
- Non-Profit will work with its volunteers to share social media graphics and posts provided by the Publisher and/or create their own to share the Work. Some of the best sales results happen with this method.
- The Publisher and the Non-Profit will use printed and digital marketing tools provided by the Publisher to introduce the book title to the public, sponsors and any wholesale/resale contacts.
- The Publisher will create an animated book trailer and flipbook to be used as marketing tools.
Upfront Fees
Because we offer a buyout for our publishing contracts, we do require you to purchase your ISBN for your Non-Profit title. This is because the ISBN needs to remain with your title “forever”, it is basically your book’s social security number that identifies it in the book world anywhere and everywhere it goes. The cost for us to acquire and register an ISBN number and title registration which includes the release of the title in a book sale newsletter to libraries and schools is:
$299.00 – this is the only fee you will pay for publication of your book. You are not asked to pay the writer or artist – who bring your storybook to life. The only other fee you will ever be required to pay is the buyout fee in the event that you wish to take your book to a different publishing house. We register the ISBN for the title and the Non-Profit.
Discontinuance of Publication
The Publisher will keep the work available in print for the duration of this contract, except whereas a problem or discrepancy is found within the publication that requires its immediate discontinuance. The Publisher will make written notice to the Non-Profit in any of the following situations:
- To request renewal of this agreement when it nears expiration. It is understood that in the absence of a request for cancellation this agreement automatically renews so that your title does not accidentally become an “out of print title” through error.
- To notify the Non-Profit of cancellation of this agreement due to a discrepancy found within the work.
- To notify the Non-Profit of suspension of the Work pending a complaint of copyright infringement or other legal action.
Discontinuance Due to Discrepancy or Legal Action – The Publisher considers these to be very serious offenses in the literary world. The Non-Profit understands that if a claim of discrepancy (facts are inaccurate or proper permissions not granted for the use of the content) or copyright infringement (the content, title, etc. are not your own idea) is found to be truthful, the Author is not entitled to any refund of payments made to the Publisher for the creation or publication of the work. Any royalties held on account may be forwarded to the true creator of the content as part of the reconciliation of the matter.
Cancellation Buyout Clause
The Non-Profit may cancel this publishing agreement, with written notice of not less than 60 days. At the time of cancellation, if the book has been published and available for sale for not less than 12 months – the Non-Profit has the option of purchasing the print-ready files and all rights to the Work through this buyout clause for a one-time payment of $0000.00 If the non-profit wishes to cancel this publishing contract before the publishing date or ay anytime within 12-months or less of the publishing date – the non-profit is required to buy out this agreement for the price of $0000.00 – this fee must be paid to reimburse the Publisher for the cost of creation for this title in order for the cancellation to be valid. Upon receipt of this payment with written notification of intent by the non-profit, all print-ready and publishable files of the title will be prepared and turned over to the Non-Profit for publication by another source.
Purchase of Overstock upon Cancellation of Agreement
If the work is under contract for publication or on sale in any book edition in the United States in quantities sufficient for distribution in the trade, it shall be considered to be in print. A work shall not be deemed in print by reason of a license granted by the Publisher for the reproduction of single copies of the work. If the Publisher should determine that there is not sufficient sale for the work to enable it to continue its publication and sale profitably, the Publisher may dispose of the copies remaining on hand as it deems best. In such event, the Non-Profit shall have the right, within two (2) weeks of the forwarding of a written notice from the Publisher, to a single purchase of copies at cost plus shipping.
- Non-Publisher’s Property — Except for loss or damage due to its own negligence, the Publisher shall not be responsible for loss or damage to any property of the Non-Profit.
- Bankruptcy and Liquidation — If (a) a petition in bankruptcy is filed by the Publisher, or (b) a petition in bankruptcy is filed against the Publisher and such petition is finally sustained, or (c) a petition for the arrangement is filed by the Publisher or a petition for reorganization is filed by or against the Publisher, and an order is entered the liquidation of the Publisher directly as in bankruptcy, or (d) the Publisher makes an assignment for the benefit of creditors, or (e) the Publisher liquidates its business for any cause whatever, the Non-Profit may, subject to any orders or rulings from a Court of competent jurisdiction, terminate this agreement by written notice and thereupon all rights granted by the Non-Profit hereunder shall revert to the Non-Profit and the Publisher shall willingly and in a timely manner turn over all print-ready and production files for the Work to the Non-Profit.
- Sums Due and Owing — Any sums due and owing from the Non-Profit to the Publisher, whether or not arising out of this agreement, may be deducted from any sum due or to become due from the Publisher to the Non-Profit pursuant to this agreement. This also includes sums for services not contained in this Contract but are as a result of requests by the Publisher.
- Law Applicable — This agreement, including all rights and liability of the parties, shall be governed by the laws of the County of Fentress County, in the state of Tennessee, in the country of the United States of America.
- Assignment — This agreement shall be binding upon the heirs, executors, administrators, and assigns of the Non-Profit, and upon the successors and assigns of the Publisher.
- Complete Agreement and Modification — This agreement constitutes the complete understanding of the parties. No modification or waiver of any provision shall be valid unless in writing and signed by both parties.
- 21. Dispute Resolution: Any controversy or claim arising out of or relating to this agreement shall be submitted in Tennessee USA, for mediation through a local mediation organization before the parties resort to arbitration, litigation, or some other more costly dispute-resolution procedure.
Expiration, Renewal or Cancellation of Agreement
This agreement shall be the only binding agreement between the Author and the Publisher and shall apply only the Work mentioned. Any additions to or subtractions from this agreement shall require an addendum in writing and signed by both parties in order to be considered valid. This agreement shall expire on (insert date). Upon its expiration both parties agree to abide by all non-expiring conditions within this agreement. Furthermore, the Publisher agrees to give copies of the Work that are required for publication by any other means over to the Author within 30 days of the expiration of this agreement. Renewal of this agreement may be requested in writing by either party to the other. This should be done not less than 15 days before the natural expiration date of this agreement. Cancellation of this agreement can be requested in writing by either party. This request must be made in writing and requires 90-days’ notice. If the Non-Profit cancels this agreement, the Non-Profit is responsible for purchasing any printed overstock of the Work that is being stored in our warehouse at cost plus shipping rates.
Contingency Clause
This contract is contingent upon the signing of the Amendment to the April 6, 2020 contract for the first title in the series Paws of Honor, for the book titled: How I Became A Hero. The Amendment is required for both contracts to operate smoothly together moving forward, since How I Became A Hero’s strategies will overlap with the 2nd title (in this contract).
IN WITNESS WHEREOF, the parties have duly executed this agreement:
Treehouse Publishing Group | 136 Eastwind Lane, Jamestown Tennessee 38556. | www.TreehouseToons.com
(A merger of Chapel Hill Studio and Farm Dog Books, with all contracts from both entities remaining valid and transferable to Treehouse Publishing Group and its authorized representatives.)
Signature: _________________________________________________________ Dated: ______________________
Non-Profit Name: _______________________________________________________________________________
Authorized Representative Name (printed): _________________________________________________________
Address: _______________________________________________________________________________________
Email: _________________________________________________________ Phone: _________________________
Website: ____________________________________________________________________
Signature: _________________________________________________________ Dated: ______________________
My Notes:
- Check for typos, grammar, make sure everything is clearly stated.
- One page 2 – Make sure that within distribution rights – the publisher and non-profit need to get approval in writing from each other for all means of distribution.
- All marketing content must be approved by both the non-profit and the publisher.
- Approved distribution channels and all marketing, press, etc…. must include mention of the publisher and non-profit BOTH by name.
On page 4
- Section 2 makes the non-profit responsible for infringement of copyright if someone files suit. Its this way because the non-profit is providing a timeline and notes as to the content of the story, and they have control of it -reviewing it and asking us to modify it as THEY see fit, which puts us at risk if they rely (without us knowing) on a similar or competitive book title as reference when coming up with their story. The story is supposed to be their own but we have no way of knowing where they truly draw their idea from.
** We have a client who don’t like the framing of this part of “rough” agreement and I honestly don’t care if we lose the client I need us to be insulated because we are not choosing the content. So, maybe modify how its worded but make sure its clear that the non-profit is providing the story’s framework and informing /controlling the content.
- Further down in Section 2 – There is a clause about not releasing royalty payments for one year that applies to “IF” there is litigation around plagiarism. It needs to be clear that this is only if there is a question of a copyright infringement in play.
- Page 7, Section 18 – This needs to clarify that sums for services that are not contained in the agreement but that are the result of requests by the non-profit are due and payable even though they are not detailed in this agreement. What we are talking about here is things like — additional illustrations requested for a t-shirt design, or an additional animated book trailer design, things like this. Lets make this clear.
Special Note
This client really screwed us last year because we are trusting. We had a simple 2 pages contract. We lost about 40% of what should have been our own revenue because they asked for things we delivered in good faith and then they refused to pay for them and said they were not part of the agreement.
They also breached the contract in several ways. I’m not even sure I want to continue doing the book series for them because of what happened so I need a strong effective contract that protects us. If they don’t like the contract they can pound sand.
If you find anything in the contract you think is unreasonable or over-kill please let me know. Your suggestions are welcome.
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