LITERARY CONTRACT

QCorp Literary and Screen Agency

Definitions:
 

1. The parties of this contract are Jennifer Bestseller, hereafter known as the Author, and QCorp Literary and Screen Agency, hereafter known as the Agent. This agreement shall hereafter be known as the Contract.
 

2. The literary works covered by the Contract are all the fiction and non-fiction works written by the Author, individually or with co-authors, including but not limited to novels, biographies, magazine articles, screen plays and other written works, also fiction and non-fiction derived or associated with same, and shall hereafter be known collectively as the Author's Works. Specifically excluded from the definition of Author's Works are works less than five thousand (5,000) words.
 

3. All monies and financial remuneration derived from the Author's Works shall hereafter be known as Proceeds.
 

Purpose of Contract:
 

4. By means of the Contract the Author grants the Agent sole and exclusive rights to act on the Author's behalf, in all matters, for the purpose of securing publication of the Author's Works.
 

5. The exclusive rights described in paragraph 4 shall include initial contact with potential publishers, the receiving and reviewing of all offers to publish the Author's Works, negotiation of all contracts and agreements associated with the Author's Works, and receiving of all Proceeds.
 

6. The exclusive rights described in paragraph 4 and defined further in paragraph 5 shall include all ancillary rights such as, but not limited to, British rights, foreign rights, first and second serial rights, book club rights, paperback / hardback / tradeback rights, commercial rights, and performance rights. Generally, exclusive rights include all rights derived from or associated with publication or potential publication of the Author's Works, including personal appearances for which compensation is received and which have been specifically arranged by the publisher or the Agent.
 

Agent's Commission and Author Payment:
 

7. All Proceeds from the Author's Works shall be paid directly to the Agent and in the name of and to the order of the Agent.
 

8. The Author agrees to pay a commission of ten per cent (10%) of all gross Proceeds to the Agent.
 

9. The Agent agrees to pass onto the Author all Proceeds, minus the Agent's commission defined in paragraph 8 and costs as defined in paragraph 11 below, within seven calendar days of the date the Agent is in receipt of such Proceeds.
 

10. All Proceeds received by the Agent shall be deposited in an escrow account separate from the Agent's general business accounts.
 

Author's Expenses:
 

11. The Agent shall bear all ordinary expenses such as duplication of the Author's Works, postage, telephone calls, and related expenses pursuant to the Contract. All such expenses shall be recorded and itemized monthly. The Author shall reimburse the Agent for these expenses up to a limit of two hundred dollars ($200). Such expenses owed to the Agent shall be collected from the Author out of the Proceeds and shall be in addition to the commission set forth in paragraph 8. Unless the Agent is successful in procuring, on the Author's behalf, Proceeds, no payment is due from the Author to the Agent.
 

12. Any expenses not deemed ordinary by the Agent shall be exempted from the provisions of paragraph 11 and shall be reimbursed to the Agent by the Author. In all such cases the Agent must secure written permission of the Author before incurring such expenses. Written permission shall specify the nature of the expense, the amount of the expense, and the terms of payment.
 

Term and Termination of Contract:
 

13. The initial term of the Contract shall be six (6) months from the Effective Date of Contract stipulated below and shall continue thereafter until terminated in accordance with paragraph 14.
 

14. Termination of the Contract by the Author or the Agent must be in writing and shall be effective three months from the date of such written notice, provided the effective date of the termination is no earlier than six (6) months from the Effective Date of the Contract.
 

15. Any contracts or written agreements relating to the Author's Works entered into by the Agent on behalf of the Author during the lifetime of this Contract shall remain under the terms of this Contract whether or not this Contract has been terminated by the Author or the Agent or whether this Contract is currently in force.
 

Sub-agents:
 

16. Sub-agents, whose commissions shall be in addition to the Agent's commission, can be engaged by the Agent only with the written permission of the Author.
 

Examination of the Agent's Books:
 

17. The Author shall have the right to examine the Agent's records, financial and otherwise, in all matters whatsoever relating to the Contract. This examination shall be no earlier than two (2) normal business days after a written request has been made to the Agent by the Author. Such an examination shall be done during normal business hours of the day.
 

Modification or Assignment of the Contract:
 

18. This Contract cannot be altered, modified, changed, assigned or transferred without the written permission of both the Agent and the Author.
 

Author’s Warranty:

19.  The Author Warrants that the Author’s Works do not infringe upon any existing copyright, are original and do not contain any libelous material.  Furthermore, the Author shall hold the Agency blameless and indemnifies the Agency with respect to any legal and other matters arising out of the aforementioned Warrants.

Disputes:
 

20. This contract shall be governed by and interpreted in accordance with the laws of the State of Oregon. All disputes arising out of this contract which cannot be resolved by the parties shall be decided by arbitration if the parties can mutually agree upon an arbitrator. The decision of the arbitrator shall be binding on the parties.
 

21. Should the parties not agree upon an arbitrator the dispute maybe submitted to the civil court of the State of Oregon. Neither party shall file an action in civil court without first giving notice of the demand for arbitration to the other party in writing.
 

Effective Date of Contract: 18 July 1996
 

------------------------------- Author
 

Jennifer Bestseller
 

------------------------------- Agent
 

William C. Brown, QCorp