Certainly! Below is a **royalty agreement** template for an **artist’s work** on a **film project**. This agreement sets out the terms for compensation based on royalties from the project’s success.

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**ROYALTY AGREEMENT**

This Royalty Agreement (the “Agreement”) is entered into as of [Date], by and between:

**Artist/Creator:**
[Artist’s Full Legal Name]
[Address]
[Phone Number]
[Email Address]
(Hereinafter referred to as the “Artist”)

AND

**Producer/Company:**
[Producer’s Full Legal Name or Production Company Name]
[Address]
[Phone Number]
[Email Address]
(Hereinafter referred to as the “Producer”)

Collectively referred to as the “Parties.”

**RECITALS:**

WHEREAS, the Producer has engaged the Artist to contribute their services to the project titled “[Project/Work Title]” (the “Project”);

WHEREAS, the Parties wish to outline the terms under which the Artist will receive royalties for their work on the Project;

NOW, THEREFORE, the Parties agree as follows:

### 1. **GRANT OF RIGHTS**

The Artist hereby grants the Producer the right to use the Artist’s contributions to the Project, including but not limited to [list specifics of the work, e.g., “original music composition,” “performance in the film,” “written script,” etc.], for the purposes of distribution, exhibition, and commercialization, including sales, licensing, and promotional activities related to the Project.

### 2. **ROYALTY PAYMENTS**

The Producer agrees to pay the Artist royalties based on the net revenue derived from the exploitation of the Project, subject to the terms outlined in this Agreement.

– **Royalty Rate**: The Artist shall receive [percentage] of the net receipts from the following revenue streams:
– **Sales**: [Percentage]% of net receipts from the sale of DVDs, Blu-rays, and digital downloads.
– **Licensing**: [Percentage]% of net receipts from any licensing agreements for use in television, streaming platforms, or other media.
– **Merchandising**: [Percentage]% of net receipts from merchandising related to the Project, including but not limited to apparel, posters, and branded goods.
– **Public Performance**: [Percentage]% of net receipts from public performances, including screenings, television broadcasts, or streaming services.

### 3. **DEFINITION OF NET RECEIPTS**

For purposes of this Agreement, “net receipts” shall mean the gross revenue received by the Producer from the applicable exploitation of the Project, less the following direct and reasonable expenses:
– Distribution fees,
– Marketing and promotional costs directly associated with the commercialization of the Project,
– Royalties due to third-party rights holders, if applicable,
– Taxes, including VAT, sales tax, or any other applicable tax related to the distribution of the Project.

The Producer shall provide the Artist with an itemized statement of net receipts within [X days] following the end of each fiscal quarter, along with the corresponding royalty payment.

### 4. **PAYMENT SCHEDULE**

Royalty payments shall be made by the Producer to the Artist on a quarterly basis, with the first payment due no later than [insert date]. Payments shall be made to the Artist via [bank transfer, check, PayPal, etc.] to the account designated by the Artist.

### 5. **AUDIT RIGHTS**

The Artist or their designated representative shall have the right to audit the Producer’s financial records related to the Project at any reasonable time, provided that such audit is conducted no more than once per year. The Producer agrees to provide the Artist with access to all records and documentation necessary to verify the accuracy of royalty payments.

If the audit reveals an underpayment of royalties exceeding [X]% of the total amount due, the Producer shall reimburse the Artist for the cost of the audit, in addition to the underpaid royalties, within [X] days.

### 6. **TERM OF AGREEMENT**

The royalty payments outlined in this Agreement shall continue for the duration of the exploitation of the Project, including any sequels, spin-offs, remakes, or other derivative works, as long as such exploitation generates revenue. The Parties acknowledge that the rights granted to the Producer are perpetual.

### 7. **EXCLUSIVITY AND RESTRICTIONS**

This Agreement does not grant the Artist any exclusive rights to the Project. The Producer may license, sell, or otherwise exploit the Project and its components in any manner, provided that the Artist’s royalties are paid as outlined in this Agreement.

The Artist shall not enter into any agreements with third parties that would conflict with the Producer’s rights under this Agreement without the prior written consent of the Producer.

### 8. **REPRESENTATIONS AND WARRANTIES**

– **Artist’s Warranty**: The Artist warrants that they are the sole creator and owner of the work provided for the Project, and that the work does not infringe upon the intellectual property rights of any third party.
– **Producer’s Warranty**: The Producer warrants that they have the legal right to enter into this Agreement and to grant the Artist the rights outlined herein.

### 9. **TERMINATION**

This Agreement may be terminated by either Party upon material breach by the other Party. In the event of termination, the Producer shall pay any royalties due to the Artist for revenue generated up to the date of termination.

### 10. **GOVERNING LAW AND DISPUTE RESOLUTION**

This Agreement shall be governed by and construed in accordance with the laws of the State of [State/Country]. Any disputes arising under or in connection with this Agreement shall be resolved through binding arbitration in [City], under the rules of [Arbitration Association], and judgment on the award rendered by the arbitrator may be entered in any court of competent jurisdiction.

### 11. **ENTIRE AGREEMENT**

This Agreement constitutes the entire understanding between the Parties with respect to the subject matter hereof and supersedes all prior agreements or understandings, whether written or oral. Any amendments to this Agreement must be made in writing and executed by both Parties.

**IN WITNESS WHEREOF**, the Parties have executed this Agreement as of the date first written above.

**Artist**
Signature: ___________________________
Printed Name: ________________________
Date: ________________________________

**Producer**
Signature: ___________________________
Printed Name: ________________________
Date: ________________________________

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### Key Terms of the Royalty Agreement:

1. **Royalty Structure**: The agreement specifies the percentage of revenue the Artist will receive from different exploitation streams (sales, licensing, merchandising, etc.).
2. **Net Receipts Definition**: It defines what constitutes net receipts and what expenses will be deducted before calculating the Artist’s royalties.
3. **Payment and Audit Rights**: The Artist has the right to review the Producer’s financial records to ensure accurate royalty payments, providing transparency in financial dealings.
4. **Exclusivity and Termination**: The contract includes terms for non-exclusivity, audit rights, and termination due to material breach.

This **royalty agreement** ensures that the Artist is compensated fairly for their contribution to the project, with clear and enforceable terms governing the use and payment of royalties. It also offers protections for both the Artist and the Producer by setting forth detailed expectations and procedures.