Legal Contracts

Health and Retirement Contribution Conditions for SAG-AFTRA Producers

General Information

Audible currently has an agreement in place with the Screen Actors Guild-American Federation of Television and Radio Artists (“SAG-AFTRA”) that allows Producers who are SAG-AFTRA members or who opt to participate in SAG-AFTRA Health and Retirement and who will personally perform narration services for an eligible audiobook production project on ACX to accept an Offer for the project subject to contributions to the Producer’s AFTRA Health and Retirement account (“SAG-AFTRA H&R”). In these cases, a portion of the Producer’s payments under the applicable ACX Audiobook Production Agreement will be sent directly to SAG-AFTRA to fund the Producer’s AFTRA H&R, as discussed below.

These Health and Retirement Contribution Conditions for SAG-AFTRA Producers (“SAG-AFTRA Contribution Conditions”) set forth (a) the types of deals on ACX that are eligible for contributions to a Producer’s AFTRA H&R and therefore qualify as “SAG-AFTRA Eligible Deals” (as defined below), (b) the amount of a Producer’s earnings that are eligible for contribution to the Producer’s AFTRA H&R under an SAG-AFTRA Eligible Deal, (c) the terms Producers must comply with in order for a Rights Holder or Audible to be required to direct contributions to a Producer’s AFTRA H&R, and (d) how Audible or a Rights Holder must direct contributions to a Producer’s AFTRA H&R.

All Rights Holders and Producers who enter into an ACX Audiobook Production Agreement for a SAG-AFTRA Eligible Deal that the Producer has accepted subject to AFTRA H&R contributions agree to abide by these SAG-AFTRA Contribution Conditions. Capitalized terms used in these SAG-AFTRA Contribution Conditions, but not defined herein, will have the meanings given to such terms in the ACX Glossary of Terms

SAG-AFTRA Eligible Deals

Only certain ACX deals are eligible for contributions to a Producer’s AFTRA H&R, as follows (“SAG-AFTRA Eligible Deals”):

  • Eligible Royalty Share Deals. From time to time, Audible may, in its discretion, offer Stipends or Advances for certain titles to certain Producers. For Royalty Share Deals, only deals where Audible pays an Advance or Stipend will be eligible for contributions to the Producer’s AFTRA H&R. Specifically, Audible must pay a Stipend or Advance of (a) $100 or more per finished hour, or (b) $1000 or more for an audiobook that is estimated to be 10 hours or more when finished, based on the word count for the title provided by the Rights Holder in the title’s Title Profile or by Audible, in the case of titles posted to ACX by Audible. In the event a finished audiobook that is estimated to be 10 hours or more is less than 10 hours when finished, the Stipend or Advance will be calculated at a rate of $100 per finished hour and the applicable title will still qualify for contributions to the Producer’s SAG-AFTRA H&R.

Each Stipend or Advance will be subject to its own terms and conditions, which Audible will make available at the time of the offer.

Eligible Pay for Production Deals. For a Producer’s earnings under a Pay for Production Deal to be eligible for contributions to the Producer’s AFTRA H&R, the Producer’s hourly rate must be $225 or more (inclusive of AFTRA H&R). No AFTRA H&R contribution will be made if the per finished hour rate is lower than $225.

How SAG-AFTRA H&R Contributions are Paid to SAG-AFTRA

For SAG-AFTRA Eligible Deals, the appropriate contributions to the Producer’s AFTRA H&R will be made as follows:

  • ELIGIBLE ROYALTY SHARE DEALS: Payments by Audible
  • If a Producer accepts a Royalty Share Deal that is an SAG-AFTRA Eligible Deal by clicking the “Accept with AFTRA H&R” button, Audible will send the appropriate contribution to the Producer’s AFTRA H&R as follows:

    1. Audible will pay an additional amount equal to 12.5% of the Producer’s Stipend or Advance and send it to SAG-AFTRA to fund the Producer’s AFTRA H&R after the Rights Holder, or Audible, as applicable, approves the finished audiobook; and
    2. Audible will deduct 11.111% from the Producer’s ongoing Royalties under the ACX Audiobook Production Agreement and send such amount directly to SAG-AFTRA to fund the Producer’s AFTRA H&R, with the remaining 88.889% of ongoing Royalties, less applicable tax withholdings, being sent directly to the Producer.
  • ELIGIBLE PAY FOR PRODUCTION DEALS: Payments by Audible or by Rights Holder
    • Payment Allocation

    Because the Producer’s responsibilities under an ACX Audiobook Production Agreement encompass activities beyond narration services covered by SAG-AFTRA, in an SAG-AFTRA Eligible Pay for Production Deal, for rates above $225 per finished hour, AFTRA H&R will only be deducted with respect to the portion of the Producer’s rate per finished hour that applies to the Producer’s narration services. This portion of the Producer’s hourly rate is the “AFTRA H&R Calculation Rate” and is set forth below in the following table.

    Per Finished Hourly Rate AFTRA H&R Calculation Rate
    $225.00 $225.00
    $250.00 $225.00
    $275.00 $225.00
    $300.00 $225.00
    $325.00 $250.00
    $350.00 $275.00
    $375.00 $300.00
    $400.00 $325.00
    $425.00 $350.00
    $425.01+ Rate - $75.00
    (i.e., $350.01+)

    1. Payments by Audible

    If a Producer accepts a Pay for Production Deal that is a SAG-AFTRA Eligible Deal by clicking the “Accept with AFTRA H&R” button, and the deal applies to a title posted to ACX by Audible as Rights Holder, Audible will take 11.111% out of the Producer’s “AFTRA H&R Calculation Fee,” which is the relevant AFTRA H&R Calculation Rate in the chart set forth above, multiplied by the number of hours for which the Producer is paid, and send it directly to SAG-AFTRA to fund the Producer’s AFTRA H&R. Audible will send the remaining 88.889% of the Producer’s AFTRA H&R Calculation Fee, plus the difference between the Producer’s Pay For Production Fee and AFTRA H&R Calculation Fee, less applicable tax withholdings, to the Producer.

    1. Payments by the Rights Holder, via a Paymaster

    If a Producer accepts a Pay for Production Deal that is an SAG-AFTRA Eligible Deal by clicking the “Accept with AFTRA H&R” button and the deal applies to a title posted to ACX by a Rights Holder, the Rights Holder will direct the full amount of the Producer’s Pay for Production Fee to a paymaster designated by the Producer (the “Paymaster”). The Paymaster will then take 11.111% out of the Producer’s AFTRA H&R Calculation Fee and send it directly to SAG-AFTRA to fund the Producer’s AFTRA H&R. The Paymaster will send the remaining monies (specifically, 88.889% of the AFTRA H&R Calculation Fee, plus the difference between the Producer’s Pay For Production Fee and AFTRA H&R Calculation Fee), less the Paymaster’s standard fee and applicable tax withholdings, to the Producer. (The standard fee for the Paymaster is anticipated to be 5% of the total Pay For Production Fee, but the actual Paymaster fee is subject to change.)

    Acceptance of SAG-AFTRA Eligible Deals by Producers

    In order for a Producer to accept an Offer for an SAG-AFTRA Eligible Deal subject to contributions to the Producer’s AFTRA H&R, the Producer must (a) be a member of SAG-AFTRA or opt to participate in AFTRA Health and Retirement, (b) plan to personally perform narration services for the audiobook (instead of subcontracting a narrator), and (c) accept the Offer by clicking the “Accept with AFTRA H&R” button on the Production Offer Page.

    Conditions for Contributions to a Producer’s AFTRA H&R

    Once a Producer has properly accepted an SAG-AFTRA Eligible Royalty Share Deal, in order for a Producer to receive AFTRA H&R contributions: (a) the Producer must personally perform the narration services for the audiobook; (b) the Rights Holder or Audible, as applicable, must approve the finished audiobook; (c) Audible must receive any invoice required under the terms and conditions of the Advance or Stipend, as applicable; (d) the Producer must comply with these SAG-AFTRA Contribution Conditions, as determined by Audible; (e) the Producer must comply with all terms and conditions applicable to the Stipend offer or Advance offer that applies to the deal, as determined by Audible; (f) the Producer must not be found by Audible to have engaged in any fraudulent activity with respect to any SAG-AFTRA Eligible Deal, these SAG-AFTRA Contribution Conditions, or any other offer or service made available through ACX; and (g) the ACX Audiobook Production Agreement between the Producer and the Rights Holder or Audible, as applicable, must not be terminated.

    Once a Producer has properly accepted a SAG-AFTRA Eligible Pay for Production Deal, in order for a Producer to receive AFTRA H&R contributions: (a) the Producer must personally perform the narration services for the audiobook; (b) the Rights Holder or Audible, as applicable, must approve the finished audiobook; (c) the Producer must not be found by Audible to have engaged in any fraudulent activity with respect to any SAG-AFTRA Eligible Deal, these SAG-AFTRA Contribution Conditions, or any other offer or service made available through ACX; and (d) the ACX Audiobook Production Agreement between the Producer and the Rights Holder or Audible, as applicable, must not be terminated for any reason.

    In any case, if the required conditions are not met for any SAG-AFTRA Eligible Deal, the Producer will not be entitled to SAG-AFTRA H&R contributions, even though the applicable deal is a SAG-AFTRA Eligible Deal, and neither Audible nor a Rights Holder will be obligated to make contributions to the Producer’s AFTRA H&R.

    Other Terms

    Audible reserves the right to modify these SAG-AFTRA Contribution Conditions at any time, including the terms and threshold payment amounts that are required for a Pay for Production Deal or Royalty Share Deal to qualify as a SAG-AFTRA Eligible Deal. Changes to these SAG-AFTRA Contribution Conditions will not affect any SAG-AFTRA Eligible Deal a Rights Holder or Producer entered into prior to the effective date of such changes and, in such case, the version of these SAG-AFTRA Contribution Conditions in effect at the time the Rights Holder or Producer entered into the applicable SAG-AFTRA Eligible Deal will apply.

    Audible may discontinue the applicability of AFTRA H&R payments to qualifying ACX deals at any time. In this case, Audible will provide a notice on the site. The discontinuance of AFTRA H&R payments through ACX will not affect any SAG-AFTRA Eligible Deal a Rights Holder or Producer has entered into prior to the effective date of the discontinuance.