Terms of service.

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Licensing Contract for Merchandise 

AGREEMENT made as of this day, between you, the Artist, and Surge (hereinafter referred to as the “Licensee”), respect to the use of a certain image created by the Licensee (hereinafter referred to as the “Image”) for manufactured products (hereinafter referred to as the “Licensed Products”).

WHEREAS, the Licensee has created the Image that the Artist wishes to license for purposes of manufacture and sale; and

WHEREAS, the Licensee wishes to use the Image to create a certain product or products for manufacture and sale; and

WHEREAS, both parties want to achieve the best possible quality to generate maximum sales;

NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants hereinafter set forth and other valuable consideration, the parties hereto agree as follows:

1.      Grant of Merchandising Rights. The Artist hereby agrees to give the Licensee full exclusive rights to merchandise with his name/ personal brand and all other entities. The Licensee will be responsible for running the e-commerce store, packaging and shipping products, and all other customer support.

2.      Ownership of Copyright.  The creator of said image for merchandise will retain all copyrights in and to the image. Whether the Licensee or Artist/ Artist team creates the image the rights will be dispersed equally so.

3.      Advance and Royalties. The Licensee further agrees to pay the Artist respective chosen

percent of the Net Sales of the Licensed Products. “Net Sales” as used herein shall mean sales to customers less prepaid freight and credits for lawful and customary volume rebates, cost of product, actual returns, and allowances.

4.      Payments and Statements of Account. Royalty payments shall be paid monthly on the first day of each month, and the Licensee shall with each payment furnish the Artist with a monthly statement of account showing the kinds and quantities of all Licensed Products sold, the prices received therefor, and all deductions for freight, volume rebates, returns, and allowances. The Artist shall have the right to terminate this Agreement upon thirty days notice if the Licensee fails to make any payment required of it and does not cure this default within said thirty days, whereupon all rights granted herein shall revert immediately to the Artist.

5.      Inspection of Books and Records. Artist shall have the right to inspect the Licensee’s books and records concerning sales of the Licensed Products upon prior written notice.

6.      Fees and Product Costs. The Artist agrees to pay website and manufacturing fees on the first of every month. After a certain amount of sales have been made the Licensee will automatically deduct the fee from the Artists profit. Products will be paid for using money from sales, after the customer purchases said products. The Artist agrees to pay in Licensee’s domain cost. Domain will be agreed upon between both parties.

7.      Website. The Licensee will make regular updates to the website for an optimal customer viewing experience. At any time, the Artist may request website change or updates.

8.      Samples. The Artist shall have the right to purchase samples of the Licensed Products at the Licensee’s manufacturing cost at any time for personal use.

9.      Quality of Reproductions. The Artist shall have the right to approve the quality of the reproduction of the Image on the Licensed Products, and the Artist agrees not to withhold approval unreasonably.

10.   Promotion. The Licensee and Artist shall use its best efforts to promote, distribute, and sell the Licensed Products.

11.   Duration. After initial signature date this contract is good for 6 Months. After expiration semi-annual reviews and renewal opportunities will be eligible. If no changes are necessary, a resign will occur.

12.   Termination Clause. Both parties can freely terminate this contract with written email given 60 days’ notice. If so both the Artist and Licensee must fulfill all responsibilities previously stated until 60th day.

13.   Assignment. Neither party shall assign rights or obligations under this Agreement, except that the Artist may assign the right to receive money due hereunder.

14.   Nature of Contract. Nothing herein shall be construed to constitute the parties hereto joint venturers, nor shall any similar relationship be deemed to exist between them.

15.   Addresses. All notices, demands, payments, royalty payments, and statements shall be sent to the Artist at selected location

16.   Modifications in Writing. This Agreement constitutes the full understanding between the parties hereto and shall not be modified, amended, or changed in any way except by a written agreement signed by both parties hereto.