Chapter 9: We Hereby Agree
4. Notwithstanding paragraph 3 hereinabove, it is conceived that each project will be part of a half-hour presentation, hopefully for T.V. but perhaps just for Kid inc.'s regular film market. Animator will participate in the development and production of whatever additional material is required to "flesh out" productions to a thirty (30) minute length (write, direct, or both) and no additional fees will be paid to Animator for these additional services. However, Animator shall receive a royalty of five percent (5%) of Kid inc.'s gross receipts determined on a per capita basis for material produced by You and included in the completed work. The amount of royalty shall be determined on the basis of running time.
5. Animator will be consulted on the development of a television show (currently called "XX"), and other matters, and will bill Kid inc. at the rate of [several] dollars ($0000) for an aggregate week's time, when no production work for You will necessarily accrue. Billing will be when accumulated times equals one week, and no invoice shall exceed [several] dollars ($0000).
6. Animator shall be given the first right to personally perform any required re-working of the work, including any corrections, additions, deletions, changes, reediting, or sound remixing required by Kid inc. on projects directed by Animator under the terms of this contract. Animator may release this first right in individual cases to Kid inc. in writing. Not withstanding the above, if Animator's best efforts to re-work the film do not meet with the approval of Kid inc., Kid inc. shall, at its sole discretion, have the final right to make said corrections and Animator shall furnish necessary components in Animator's possession to Kid inc.
7. Animator may be asked to participate in promotional efforts such as workshops, speeches, writing for publication, etc. For such services, Animator shall be paid a fee of [several] dollars ($0000) per day, including bona fide travel time, plus expenses.
8. Within 60 days after each February 28th and August 31st, Kid inc. shall furnish Animator with a statement setting forth Kid inc.'s gross receipts from exploitation of the Projects, together with a cheque in payment of the royalty [commission] due Animator. For the purpose of verifying the accuracy of such statement, Animator or animator's representative may examine Kid inc.'s books at any reasonable time insofar as they pertain to Kid inc.'s receipts from transactions concerning the Projects.
9. It is understood and agreed that Kid inc. clearly owns everything that is made in conjunction with Projects which are written, animated, and/or directed by Animator, including, but not limited to: storyboards, backgrounds, cels, cut-outs, puppets, art work, and/or other pre-print materials whether in the possession of Kid inc. or not. The materials referenced to therein are only those created by Animator and under the control or in the possession of Animator.
10. All notices, statements and payments due Animator under this agreement will be sent to Animator at the name and address first above written.
11. This agreement will be binding upon and inure to the benefit of the successors or assigns of Animator and the successors or assigns of Kid inc. Kid inc. may assign this agreement in whole or in part. Animator may assign any net sums due or to become due Animator hereunder, but Animator may not assign any other rights or obligations hereunder.
12. This agreement constitutes the whole agreement between the parties and may not be modified except by the written consent of both parties. Nothing in this agreement shall be construed to create the relationship of employer and employee between the parties.
13. This agreement will be governed by and construed in accordance with the laws of the [a particular State], United States of America, and shall be valid in all countries of the world.
ACCEPTED AND AGREED
Joe Animator KID FOOD, INC.
The circumstances and elements of every project are different, but this contract framework can be adapted to fit most actual undertakings.
The first paragraph states the names and addresses of the principals, and the shortened name each shall be referred to in the body of the contract.
Paragraphs 1. and 2. state the nature of the employer's business and the expected contribution of the employee.
Paragraph 3. sets your minimum fees for each type of project contemplated, as well as any royalty figure you can negotiate. (Whether you want your percentages to be called "royalties" or "commissions" will depend on tax considerations. In some instances the difference in term could be crucial, especially if you are resident in a foreign country. The IRS gives you a large deduction for "earned income," (commissions), but not for royalties! Check it out!)