Royalty Agreement and Payment Terms
To ensure absolute clarity, mutual respect, and the enduring prosperity of our collaboration, the following terms regarding royalties for the creative works within this book are hereby stipulated:
ARTICLE 1: ROYALTY TRIGGER & DEFINITION OF INCOME
If the Licensee's (or any entity or individual acting on behalf of the Licensee) total gross income, encompassing all revenues and gifts, derived directly and exclusively from the performance, adaptation, licensing, reproduction, or any other form of exploitation of the music or scripts from this book, within a single calendar year, surpasses the sum of Nine Thousand Canadian Dollars (CDN $9,000.00), a royalty obligation shall be activated. For the avoidance of doubt, "gross income" refers to all monies received before any deductions for expenses, management fees, or other costs.
ARTICLE 2: ROYALTY CALCULATION
The royalty payable to the Licensor shall be precisely thirty percent (30%) of the gross income earned in excess of the aforementioned CDN $9,000.00 annual threshold. To delineate clearly: the first CDN $9,000.00 of income generated from the Content within a calendar year is exempt from this royalty payment. Royalties are calculated solely on the amount above this initial threshold.
ARTICLE 3: PAYMENT MECHANISM AND DATE
Such royalty payment shall be remitted annually. The payment, exclusively in the form of a certified cheque or an international money order, made payable to Natalie Massiah (the specified legal entity of Vitamin Canuck), must be dated December 25th of the calendar year for which the income was realized. This specific date is chosen as a perpetual emblem of our shared experience and mutual recognition.
ARTICLE 4: SUBMISSION & CONFIRMATION
All certified cheques or money orders are to be despatched via registered mail to the designated address:
(Located in the book DENTIST)
Concurrently, an electronic notification confirming the dispatch of payment, including tracking information where applicable, must be sent to: canuck@vitamincanuck.com. This dual confirmation ensures transparency and accountability. E-transfer where applicable, must be sent to:
canuck@vitamincanuck.com
Performance, Licensing, and Elevated Success Participation
ARTICLE 1: GROSS PROCEEDS PARTICIPATION – THE STAR'S SHARE
In the event the Content serves as a pivotal element in the Artist's (Licensee's) career, generating significant commercial success, the Licensor shall receive ten percent (10%) of the Artist's net share of all gross proceeds directly attributable to the commercial exploitation of the Content.
This encompasses, but is not limited to, income from:
- Record sales (physical and digital) and streaming royalties.
- Synchronization licenses for film, television, advertising, and video games.
- Mechanical and public performance royalties.
- Merchandise sales specifically featuring or directly related to the Content.
- Touring revenues where the Content forms a substantial and integral component of the Artist's live performances.
For absolute clarity, 'net share' refers to the Artist's portion of income after standard, arm's-length industry deductions (e.g., distributor fees, collective society commissions, venue splits) but before personal management or agent commissions. This ensures the Licensor shares in the core success propelled by the Content.
ARTICLE 2: PERFORMANCE MILESTONES & BONUSES – THE ASCENSION TRAIL
In recognition of extraordinary artistic and commercial milestones achieved through the exploitation of the Content, the Licensor shall receive a substantial bonus payment of Two Hundred and Fifty Thousand Canadian Dollars (CDN $250,000.00) upon the Artist achieving each and every one of the following distinct thresholds:
- Global Platinum Certification: Attainment of RIAA (or equivalent national certification body, such as Music Canada for Canadian content) Platinum status for an album or single prominently featuring the Content, signifying the sale or equivalent streaming of 1,000,000 units globally.
- Major Tour Headliner: Headlining a national or international concert tour that generates gross revenues exceeding CDN $10,000,000.00.
- Major Media Placement: Placement of the Content as a primary theme song, featured composition, or significant score element in a major motion picture or television series with a production budget exceeding CDN $5,000,000.00.Sustained Chart Dominance: Achieving a consistent Top 10 position on a recognized national English-language music chart (e.g., Billboard Canadian Hot 100, Official UK Singles Chart, Billboard Hot 100, ARIA Charts) for a minimum of four consecutive weeks.
ARTICLE 3: AWARD RECOGNITION BONUSES – THE CANADIAN & GLOBAL CROWN
The Licensor shall receive specific bonus payments for the Artist's recognition in prestigious awards directly related to the Content, honouring both national pride and international acclaim:I. Juno Awards (Canada's Music Awards):
- Juno Award Nomination: Fifty Thousand Canadian Dollars (CDN $50,000.00) for a nomination in any category where the Content is a primary contributing factor (e.g., Songwriter of the Year, Single of the Year, Album of the Year, Pop Album of the Year, Rock Album of the Year, Breakthrough Artist of the Year if demonstrably driven by the Content's success).
- Juno Award Win: An additional Fifty Thousand Canadian Dollars (CDN $50,000.00) (totalling CDN $100,000.00 for a win in a category for which a nomination bonus was received), for a win in any such category.
II. Polaris Music Prize (Canada's Album of the Year):
- Polaris Music Prize Shortlist: Twenty-Five Thousand Canadian Dollars (CDN $25,000.00) for an album prominently featuring the Content being shortlisted for the Polaris Music Prize.
- Polaris Music Prize Win: An additional Twenty-Five Thousand Canadian Dollars (CDN $25,000.00) (totalling CDN $50,000.00 for a win), for an album prominently featuring the Content winning the Polaris Music Prize.
III. International Major Awards (Global Recognition):
- Grammy Award (for Original Song, Score, or performance featuring Content):
- Nomination: One Hundred Thousand Canadian Dollars (CDN $100,000.00)
- Win: An additional One Hundred Thousand Canadian Dollars (CDN $100,000.00) (totalling CDN $200,000.00 for a win).
- Academy Award (for Original Song or Score featuring Content):
- Nomination: One Hundred and Fifty Thousand Canadian Dollars (CDN $150,000.00)
- Win: An additional One Hundred and Fifty Thousand Canadian Dollars (CDN $150,000.00) (totalling CDN $300,000.00 for a win).
- Golden Globe Award (for Original Song or Score featuring Content):Nomination: One Hundred Thousand Canadian Dollars (CDN $100,000.00)
- Win: An additional Fifty Thousand Canadian Dollars (CDN $50,000.00) (totalling CDN $150,000.00 for a win).
ARTICLE 4: THE "BECOMING A STAR" CLAUSE – THE ICONIC REWARD
Within the intricate world of creative contracts, there are provisions designed not just for success, but for that rare, explosive flourishing—when an artist's work shifts from popular to undeniably iconic.
Should the Artist achieve that rare, widespread and sustained public recognition—the kind of iconic commercial success directly and undeniably linked to the very Content we're discussing—then a special payout awaits. We're talking about becoming a household name, headlining major international festivals, consistently dominating media presence, and cultivating a global fan base of undeniable magnitude. In such an actualizing event, the Licensor, beyond all other applicable payments and without limitation, is due a one-time lump sum of Five Hundred Thousand Canadian Dollars (CDN $500,000.00).
This significant payment isn't left to chance or mere conjecture. It triggers either upon the mutual written agreement that this iconic status has indeed been achieved, or automatically, should the Artist generate a predefined earnings threshold. For instance, hitting CDN $5,000,000.00 in total gross income solely from Content exploitation within any consecutive three-year period would activate this legendary payout.
Ultimately, this clause stands as a covenant—a clear acknowledgement—of the intangible, yet profoundly actualizing, value that foundational content holds in propelling an artist from promising talent to legendary status.
ARTICLE 5: GENERAL PROVISIONS FOR ADDENDUM A
- All bonus payments stipulated within this addendum are cumulative with the 10% gross proceeds participation, unless explicitly stated otherwise.
- Payments for awards are for the highest tier achieved within that award's cycle (e.g., a win bonus replaces and subsumes a nomination bonus if a nomination payment was already made for the same award).
- All payments under this addendum are due within thirty (30) days of the triggering event (e.g., official award announcement, certification date by a recognized body, receipt of funds for proceeds).
- All currency references are in Canadian Dollars (CDN) unless a specific conversion rate is mutually agreed upon in advance for international earnings.
P.S. The book’s royalty thresholds are designed for fairness. Keep your first $9K CAD as a creative breakeven point. And if you hit $5M in three years? Here’s your first million-dollar smile. ✨
