These ACX Royalty Payment Terms and Procedures for Rights Holders and Producers, Royalty Share Deals (Audible Exclusive Distribution Rights) ("Royalty Terms") set forth the terms by which Audible will calculate and pay royalty payments to Rights Holder and Producer in connection with Audible's distribution of the Audiobook based on Rights Holder's Book ("Royalties"), as set forth in the ACX Production Standard Terms entered into by Rights Holder and Producer with respect to the production of the Audiobook by Producer. Audible will calculate and pay to Rights Holder the portion of such Royalties that are owed to Rights Holder. Audible will also, on Rights Holder's behalf, calculate and pay to Producer the portion of such Royalties that are owed to Producer. These Royalty Terms form a part of the ACX Production Standard Terms. Capitalized terms used in these Royalty Terms but not defined have the meaning assigned to such terms in the ACX Production Standard Terms.
Audible will pay Royalties only on Audible Net Sales Receipts (as defined below) that Audible receives from sales of the Audiobook.
Audible will calculate Royalties using the Royalty Rate below. Audible will calculate and report all Royalties based solely on sales of the Audiobook, without combining such sales with sales of other audiobooks produced through ACX.
Royalty Rates for Rights Holders and Producers, Royalty Share Deals (Audible Exclusive Distribution Rights)
Audible will pay the Rights Holder 20% of all A La Carte Net Sales Receipts and 20% of all Member Net Sales Receipts from sales of the Audiobook and Audible will pay the Producer 20% of A La Carte Net Sales Receipts and 20% of all Membership Net Sales Receipts from sales of the Audiobook.
During the Distribution Period, Audible will pay the Rights Holder and the Producer the Royalty set above. For purposes of this agreement, Audible Net Sales Receipts consist of: (i) A La Carte Net Sales Receipts (as defined below) for all a la carte sales of the Audiobook, and (ii) Membership Net Sales Receipts (as defined below) for all sales of the Audiobook to customers who are members of one of Audible's membership programs, in each case, during the immediately preceding monthly period. No Royalty will be paid on the transmission or distribution of downloads or other copies of the Audiobook distributed for free for purposes of review, sample, advertising, publicity or promotion, provided that free copies distributed by Audible or its sub-distributors do not exceed the greater of 100 copies or five percent (5%) of the total number of Audiobooks sold by Audible or its sub-distributors during the applicable accounting period.
Royalty Statements and Payments. Audible will provide Rights Holder and Producer a statement of Royalties, together with a check in the amount of any Royalty due, on a calendar monthly net 30 day basis, commencing with the first full month after the Audiobook is first offered for sale by Audible. Audible will provide Rights Holder and Producer separate statements and separate checks. If the Royalties owed to Rights Holder or Producer for any accounting period are less than $10, Audible will have the right to withhold making a payment and carry such payment forward to the next monthly reporting period. Any ACX royalty statements Audible provides Rights Holder or Producer, as applicable, will be considered final and incontestable 3 months from the date the statements are provided by Audible if Rights Holder or Producer does not object to the statements within that period of time.