The Galaxy Project Contest

Contract

Agreement dated this day of September, 2011 between:

RosettaBooks LLC, a Delaware limited liability company with offices at 200 West 57th Street, Suite 904, New York, NY 10019 ("Publisher") and xxxxxxxxxxxxxxxxxxxxx ("Rightsholder") regarding a [novella, novelette] titled xxxxxxxxx (the "Work").

1. The Work was selected by the judges as the winner of The Galaxy Contest for 2011. The Work will be part of a collection of e-books the Publisher intends to publish of novellas and novelettes all originally published in Galaxy Magazine in the 1950's and 1960's. The Rightsholder warrants and represents that the Work has not previously been published.

2. The Rightsholder grants the Publisher the right to publish, transmit, distribute, sell and produce (collectively "Distribute") "e-books" in any form or format and through any platform of distribution now known. The Rightsholder reserves the rights to "enhanced e-books", apps and the like. The Publisher will design and digitize the Work at Publisher's expense.

3. The grant of rights in this agreement shall be exclusive for publication of the Work in a single title format for the full term hereof. The Rightsholder withholds the right to publish the Work in e-books in either anthologies or collections in which the Work is one among a number of pieces.

4. The term of this agreement shall be seven years from the date of this agreement. However, if the Work is not so published within twelve months from the date of execution of this agreement, all rights to the Work shall revert to the Rightsholder and this agreement will be null and void. In addition, if at any time following initial publication of the Work Publisher shall fail to keep the Work generally available for sale for a period of three (3) months or more in the aggregate, all rights to the Work shall revert to the Rightsholder and this Agreement will be null and void. After seven years, this agreement shall automatically renew for one year additional periods unless terminated in writing by either the Publisher or the Rightsholder.

5. Without limitation, the Publisher shall have the following rights:

A. To Distribute the Work in the English language worldwide.

B. To use the name, approved likeness, biography and autograph of the Rightsholder to advertise, promote, market and publicize the exploitation of the Work and the activities of the Publisher.

C. To advertise, promote, market and publicize the Work in any and all media including, without limitation, in the electronic and print media.

D. To Distribute the Work as a whole; provided, however, that Publisher will not change the text of the Work without the consent of the Rightsholder.

E. To Distribute the Work by any and all means, including, without limitation, by subscriptions or direct sales and into any and all markets including, without limitation, the educational market.

F. To Distribute the Work on any commercial basis it elects.

G. To Distribute portions of the Work (not to exceed 1,000 words in connection with any use) on a free or no-charge basis in order to promote the sale or exploitation of the Work.

H. The Publisher will prepare an electronic jacket at its expense and submit it for approval by the Rightsholder. The jacket may utilize artwork which originally appeared on the covers of Galaxy Magazine so that the e-book line has a uniform look and feel. The look and feel of the jacket will be similar to the jacket publicized in connection with the contest.

6. Promptly following execution of this agreement, the Rightsholder will provide (if they wish) to the Publisher materials such as testimonials, awards and critical commentary relating to the Rightsholder and/or the Work for use in enhancing the electronic edition of the Work and for advertising, promotion and publicity of same. The Publisher may add to the e-book edition of the work a Foreword or Introduction of the Publisher's choice at the Publisher's expense.

7. A. The Rightsholder warrants and represents that it is the sole owner of the rights conveyed in this agreement, that such rights are not in the public domain, that such rights are free and clear of any encumbrances that would affect the exercise by the Publisher of the rights granted to it hereunder, that neither the titles nor the content contained therein infringes or will infringe on the legal rights of any third party, that the Rightsholder has the full power and authority to enter into and fully perform the terms of this agreement and that the exercise by Publisher of the rights herein granted will not conflict with any rights of any third party.

B. The Publisher warrants that it is free to enter into and fully perform the terms of this agreement. The Publisher shall indemnify Rightsholder from and against any third party claims relating to any content contributed to the Work by Publisher, or otherwise used by Publisher in connection therewith (including, without limitation, the electronic jacket for the Work).

8. The Publisher will take commercially reasonable steps to assure that the security of the electronic editions of the Work referred to herein are consistent with industry standards. Publisher's editions of the Work shall be protected with DRM software.

9. The Publisher will include a copyright notice in the electronic editions for the content of the Work as follows:

© 2011 [Author's name]

Publisher shall own all right, title and interest in and to any content that it creates or causes to be created that is used in connection with the electronic edition and the digitizing and the augmentation of the Work.

10. All rights not licensed to the Publisher under this agreement are reserved by the Rightsholder including, without limitation, any printed editions of the Work and any audio, television, motion picture and dramatic rights relating to the Work; provided, however, that the Publisher may advertise, promote, market and publicize the rights granted to it hereunder by any of the foregoing means.

11. As the sole and entire compensation payable to the Rightsholder for the rights granted to the Publisher hereunder and the representations, warranties and agreements of the Rightsholder herein contained, the Publisher shall pay to the Rightsholder the following:

An advance of $1,000 payable on signing against:

A royalty of fifty per cent (50%) based upon Publisher's Net Receipts for the first 2,500 units sold and sixty per cent (60%) based upon Publisher's Net Receipts thereafter. Net Receipts shall mean the amount actually received by the Publisher from the sale of the electronic editions of the Work, net of the following items: discounts, fees or commissions to third parties which sell the Work through websites or other distribution channels.

12. Not later than sixty (60) days following the end of each six-month period during the term hereof ending on June 30th and December 31st, the Publisher will forward to the Rightsholder a statement showing the computation of Net Receipts and simultaneously with the rendition of each such statement the Publisher will pay to the Rightsholder the amount shown to be due thereon. For the avoidance of doubt, Publisher shall continue to provide such statements and payments to the extent of Net Receipts realized following termination of this Agreement.

13. Upon reasonable notice to the Publisher and not more frequently than once during each year of the Term and the one-year period following the Term, the Rightsholder shall have the right to examine the books and records maintained by the Publisher which relate to sales of the Work to verify accountings at the place where such books and records customarily are kept the Publisher will pay the discrepancy. If there is an error of more than five per cent against the Rightsholder, the Publisher shall pay the cost of the audit, but in no event more than the amount of the discrepancy.

14. Agency clause

15. All matters relating to the distribution, presentation, format, sale, marketing, exploitation, license and pricing of the Work hereunder shall be solely and exclusively within the discretion of the Publisher.

16. Neither the Rightsholder nor the Publisher shall have the right to assign this agreement, except that the Publisher may assign this agreement and/or any of its rights hereunder to a related or affiliated entity or to an entity that acquires all or substantially all of its assets.

17. This agreement contains the sole and entire understanding between the parties with respect to its subject matter, may not be altered, modified or amended except in writing signed by the party to be charged, shall be governed by and construed in accordance with the laws of the State of New York and may be executed in counterparts. The state and federal courts located in New York County shall have exclusive jurisdiction of any dispute between the parties relating in any way to this agreement.



IN WITNESS WHEREOF the parties have executed this agreement as of the date and year first above set forth.

ROSETTABOOKS LLC


Arthur Klebanoff, CEO




By:_____________________ ___ Author Soc Sec #__________________

If Paymaster, Agent's Federal ID # ___________________________




Return to Contest Homepage