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Contract #3

Contract #3 -- Similar to contract #2 which seems to be common in the e-publishing industry. Stock in the company, however is the option of the publisher. This is NOT common. Addresses, contact information and identities have been omitted.


Editor Agreement


This agreement is entered into this ________ day of May _______, by and between ********, an Internet based publisher (hereinafter referred to as "Publisher") and ********* (hereinafter referred to as "Editor").

This contract is entered into in good faith, and signatures from all parties named herein indicate acceptance and agreement to the terms described herein. This contract shall be considered legal and binding in all countries.

I. Editor's Warranties

A. The Editor hereby represents and warrants to the Publisher that he/she agrees to edit, to the best of his/her ability, any and all manuscripts     given to him/her by (publisher) for the express purpose of editing and preparing the manuscript for publication. Editor also warrants that the editor of said manuscript shall be done in a timely fashion (a maximum of thirty (30) days for each manuscript) unless special circumstances arise that may prevent such a time frame and are approved by the Publisher.

B. For purposes of this contract, "edit" or "editing" includes the correction of spelling, grammatical errors, as well as minor revisions for content clarity and story continuity. It is understood that all submissions have been proof read for major spelling and grammatical errors by the Author. No substantial changes will be made to the manuscript without Author's approval. The meaning of the work will not be materially altered.

II. Royalties

A. The Publisher agrees to pay the Editor a royalty of five percent (5%) of the retail download price for each copy of the Work, electronic or POD, sold from the publisher's website, regardless of format or version.

B. The Publisher agrees to pay the Editor a royalty of five percent (5%) of the gross proceeds received by ****** from third party sales outlets, including on-line booksellers and special format distributors.

C. The Publisher agrees to issue to the Editor two (2) shares of stock in the company on the first year anniversary of this signed contract, provided the Editor has edited at least six (6) manuscripts for them during that time. Said shares will not be issued if the Editor cancels this contract before the one-year contractual date. Should the Editor renew the contract for another period, the Editor will receive an additional share of stock for each additional year the Editor works for the publisher provided the Editor edits at least six (6) manuscripts for the publisher in the renewal year, said share being vested upon the annual anniversary date. The Editor shall retain full ownership of all stock earned, regardless of date of renewed contract termination.

D. Royalties shall be calculated and paid no later than forty-five (45) days following the end of each calendar quarter for sales during that quarter. Royalties shall be paid by check, drawn on the company's bank of business. Individual arrangements, mutually agreed upon by the Publisher and the Author, shall be made for payment of royalties to Editor if he/she resides outside the USA.

E. No royalty shall be paid on paper or digital copies distributed for review, advertising, publicity, promotional purposes, samples, or other similar purposes, or on copies sold below or at cost, or provided free to the Author, for the Author's personal or resale use.

III. Term of Contract

A. The Contract shall expire one (1) year from the date of this signed contract, and may be renewed by mutual consent of the Editor and the Publisher.

B. Upon breach of contract, the Contract may be terminated by either party with a 30-day written notice. Notification of breach and intention to terminate the Contract is to be delivered by certified mail or other receipted delivery service. If breaching party corrects the breach within the 30 days, the Contract shall continue to remain in place until its natural expiration.

IV. Miscellaneous

A. Audit - The Editor may, with reasonable notice, assign and designate a representative to examine the Publisher's records as they relate to the Editor. Such examination shall be at the Editor's expense unless errors are found in excess of 5% of royalties in the Editor's favor; in which case, the Publisher shall then defray all usual, customary, and reasonable charges for such audit. The Publisher shall pay the Editor any sums due within thirty (30) days.

B. Severability - If any part of this Contract is determined by a Court to be unenforceable, the rest of the Contract is still considered to be in force.

C. Entire Agreement - This Contract hereby constitutes the entire agreement between the Editor and the Publisher, and may not be altered, terminated, or amended except in writing executed by all parties named herein.

                                     Governing Law - This Contract shall be governed by the laws of the State of **********, USA, and shall be considered legal and binding in all countries.



____________________________________                                       ______________
Signature of Editor                                                                                   Date



Editor address:
Phone number:
Fax and/or email:


____________________________________                                       _______________
Signature of Publisher                                                                              Date