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.
For Rights Holders residing in the United States, Audible will provide Rights Holder a statement of Royalties, together with a check or direct deposit 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. For Rights Holders residing in the United Kingdom, Canada, or the Republic of Ireland, Audible will provide Rights Holder a statement of Royalties together with a direct deposit in the amount of any Royalty due, on a monthly net 30 day basis, commencing with the first full month after the Audiobook is first offered for sale by Audible provided, however, that payments to Rights Holders residing in Canada or the Republic of Ireland with respect to Audiobooks first offered for sale by Audible in June of 2017 will commence not later than August 31, 2017. All payments made by Audible will be inclusive of any applicable VAT or equivalent applicable sales tax. Audible may deduct or withhold any taxes that Audible may be legally obligated to deduct or withhold from any amounts payable to Rights Holders and Producers, and payments as reduced by such deductions or withholdings will constitute full payment and settlement to such Rights Holders and Producers. You will provide Audible with any forms, documents, or certifications as may be required for Audible to satisfy any information reporting or withholding tax obligations with respect to any payments. Rights Holders and Producers are solely responsible for their own compliance with all applicable tax laws, including but not limited to the Canadian Excise Tax Act, and the payment of any applicable taxes. If the Royalties owed to Rights Holder for any accounting period are less than $50, Audible will have the right to withhold making a payment and carry such payment forward to the next reporting period. Any ACX royalty statements Audible provides Rights Holder will be considered final and incontestable 3 months from the date the statements are provided by Audible if Rights Holder does not object to the statements within that period of time.