This is a contract written between the "author" and the "publishing house". The contract outlines how much "royalties" or extra credit the "author" will earn, up to 100%.
The students use this document to help them "feel" the negotiation process. The ultimately come to an agreement as to how much royalties or extra credit they will give to the author for signing with them as opposed to another publishing house in the class.
This activity allows the students to practice negotiating skills, interview skills, and problem-solving skills.