Stereotype Co

Merch Collaboration Agreement

Agreement Overview

This agreement is between Stereotype Co (Producer) and you (Artist) for a merchandise collaboration.

Key Terms & Conditions

1. Royalty Payment and Pricing

  • 1-4 sales/month: 20%
  • 5-9 sales/month: 25%
  • 10+ sales/month: 30%
  • Royalties calculated on final sale price
  • Products priced based on materials, labor, and difficulty

2. Sales and Payments

  • All items made to order
  • Monthly royalties paid within 10 days after month end (post-preorder period)

3. Term and Termination

  • Initial term: 1 year from contract date, automatically renews for additional 1-year periods
  • Either party may terminate with 30 days written notice
  • Outstanding royalties paid within 30 days of termination

4. Independent Contractor Status

Artist is not an employee. No benefits provided. Artist responsible for own taxes.

5. Preorder Period

  • First 90 days are preorder phase
  • Minimum 25 sales required to continue product
  • Under 20 sales may result in retirement of item

6. Exclusivity

Design cannot be sold with or promote any other clothing brand or service.

7. Payment Methods & Tax

  • Payments via PayPal or Zelle
  • W-9 required if earnings exceed $600/year

8. Promotion Requirements

  • Active social media promotion (Instagram, Twitter, TikTok, Facebook)
  • Feature in newsletter during preorder/launch
  • Promotion at live events, concerts, shows

9. Wholesale Orders

Artist can purchase items at wholesale pricing using code NOCOMMISSION. No commission is paid on any item sold using that code.

10. Giveaways

1 giveaway item provided for every 20 items sold. Artist may use commission towards giveaways.

11. Legacy & Commitment

Stereotype Co has collaborated with artists for 17 years. We do limited collaborations each year. Your energy and commitment are essential. We want to create something meaningful you can be proud of. If you don't plan on committing for minimum 6 months, please let us know before we go all in.

By signing below, you acknowledge that you have read, understand, and agree to ALL terms in this Merch Collaboration Agreement.

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