These ACX Royalty Payment Terms and Procedures for Rights Holders, Pay-for-Production Deals (Audible Exclusive Distribution Rights) ("Royalty Terms") set forth the terms by which Audible will calculate and pay royalty payments owed to Rights Holder in connection with Audible's distribution of any Audiobook based on Rights Holder's Book("Royalties"), as set forth in the Book Posting Agreement that Rights Holder agreed to when posting the applicable Book on ACX. These Royalty Terms form a part of the ACX Book Posting Agreement. Capitalized terms used in these Royalty Terms but not defined have the meaning assigned to such terms in the ACX Book Posting Agreement.
Audible will pay Royalties to Rights Holder only on Audible Net Sales Receipts (as defined below) it 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.
Audible will pay the Rights Holder 40% of all A La Carte Net Sales Receipts and 40% of all Member Net Sales Receipts from sales of the Audiobook.
During the Distribution Period, Audible will pay the Rights Holder 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.