These Translated Book Royalty Payment Terms and Procedures for Babelcube Exclusive Distribution Rights ("Royalty Terms") set forth the terms by which Babelcube will calculate and pay royalty payments owed to Rights Holder and Translator in connection with Babelcube’s distribution of the Translated Book ("Royalties"). The Translator royalties cover all Translators involved, including all members of the Translator Team, if there is one. These Royalty Terms form a part of the Babelcube Standard Agreement for Translation and Distribution ("Agreement"). Capitalized terms used in these Royalty Terms but not defined have the meaning assigned to them in the Agreement.
Babelcube will pay Royalties to Rights Holder and Translators only on Babelcube Net Sales Receipts (as defined below) it receives from sales of the Translated Book. Babelcube has the right to withhold any taxes on the royalty payments it deems required by law to be withheld and remitted to a relevant tax authority. Withholding tax will be deducted from Royalties. Babelcube will calculate Royalties using the variable Royalty Rate below.
Net Sales Receipts means the monetary amount received by Babelcube from sales of each unit sold by Babelcube and Babelcube’s subdistributors, less any cash incentives, promotional discounts, sales or use taxes, excise taxes, value-added taxes, duties, distribution fees, and returns ("Net Sales Receipts").
Royalty Rates The percentage royalty rate that Babelcube will use to calculate Royalties ("Royalty Rate") will depend on the US Dollar value of Net Sales Receipts of the Translated Book received by Babelcube. The Royalty Rate will vary based on the cumulative US Dollar value of Net Sales Receipts as provided in the following chart, and will change as more units are sold.