A good termination clause is most important in a life-of-copyright contract. Ideally, it will ensure that the book is taken off the market, and the writer can demand rights reversion, once sales fall below a specific minimum level. For a small press–depending on average sales–that might be fewer than 10 copies sold in two (or four, if the royalties are paid quarterly) consecutive royalty periods. This prevents the publisher from holding on to the rights for a book that isn’t selling.

For a publisher (as opposed to a self-publishing service, where terminate-at-will clauses are essential), I don’t think that allowing authors to terminate a contract early serves either the author’s or the publisher’s interest. It’s much better to simply have a reasonable grant term (7 years is too long, in my opinion; 3 or 5 years would be better), or, if it’s a life-of-copyright contract, a detailed reversion clause as described above that kicks in once the book has ceased to sell in significant numbers. I’m especially opposed to contracts that let the author terminate early, but impose some sort of kill fee or purchase requirement.

What would you recomment?

Another issue for publishers:
Example:
Author wants to terminate the 7 year contract early.
the Contract is 3 years old.
Company has 250 Hard Cover and 100 Paper Backs in stock.
The agreement states that the author may purchase at a 60% discount.

What would be a fare settlement for both the author and publisher?

Thank you in advance.
Bruce