Pricing Page

1. Royalty Options. Subject to the limitations set forth in this Pricing Page, for each Digital Book, you may choose, in accordance with our then-current procedures, either the 35% Royalty Option or the 70% Royalty Option, each described below.

a. 35% Royalty Option.

i. The Royalty for the Digital Book will be equal to 35% of the applicable List Price for the Digital Book.

ii. For any Digital Book for which you select the 35% Royalty Option, at all times that the Digital Book is available for sale through the Program, you must adjust the List Price as required to ensure that the List Price, plus any applicable VAT, does not exceed the lowest of: (a) the lowest suggested retail price or equivalent price for any digital or physical edition of the Digital Book; (b) the lowest price at which you list or offer any digital or physical edition of the Digital Book on any website or other sales channel; and (c) any maximum List Price we provide from time to time in the Program Policies.

b. 70% Royalty Option.

i. The 70% Royalty Option is only applicable to sales to United States customers, so if you choose this option, the Royalty on sales to non-United States customers will be as provided under the 35% Royalty Option.

ii. The Royalty will be equal to 70% of the amount equal to the applicable List Price for the Digital Book less the Delivery Costs (as defined below) for the Digital Book. But if we sell the Digital Book at a price below the List Price to match the price at which a third party sells any digital or physical edition of the Digital Book or to match the price at which we sell any physical edition of the Digital Book, the Royalty will be equal to 70% of the amount equal to the price at which we sell the Digital Book less the Delivery Costs for the Digital Book. Our determinations regarding price-matching are final and non-reviewable. If you object to our price-matching determination with regard to one of your books, your sole and exclusive remedy is to switch your Royalty option for future sales of the Digital Book to the 35% Royalty Option as described below.

iii. The Delivery Costs for a Digital Book will be equal to $0.15 multiplied by our determination of the number of megabytes your Digital Book file contains, once uploaded by you and converted by us into our then-current Digital Book format. One megabyte equals 1024 kilobytes. One kilobyte equals 1024 bytes. We will round file sizes up to the nearest kilobyte. The minimum Delivery Cost for a Digital Book will be $0.01 regardless of file size.

iv. Example: If your book has a file size of 0.400 megabytes and a List Price of $8.99, the Delivery Cost will be $0.06 (0.400 MB x $0.15 = $0.06), and your Royalty will be $6.25 (($8.99 – $0.06) x 70% = $6.25).

v. For any Digital Book for which you select the 70% Royalty Option, at all times that the Digital Book is available for sale through the Program, you must adjust the List Price as required to ensure that the List Price does not exceed the lowest of: (a) the lowest suggested retail price or equivalent price for any digital edition of the Digital Book; (b) the lowest price at which you list or offer any digital edition of the Digital Book on any website or other sales channel; (c) 20% below the lowest suggested retail price or equivalent price for any physical edition of the Digital Book; (d) 20% below the lowest price at which you list or offer any physical edition of the Digital Book on any website or other sales channel; and (e) any maximum List Price we provide from time to time in the Program Policies.

vi. The 70% Royalty Option is not available for Digital Books that consist primarily of public domain content, and by selecting the 70% Royalty Option for a Digital Book, you confirm that it does not consist primarily of public domain content. If you select the 70% Royalty Option for a Digital Book that we determine consists primarily of public domain content, we will be entitled to change the Digital Book to the 35% Royalty Option retroactively and to pay you Royalties and adjust your previously reported or paid Royalties based on the 35% Royalty Option.

vii. If you select the 70% Royalty Option for a Digital Book, you must make it available to us for distribution in each territory for which you have appropriate distribution rights, and you must comply with any other restrictions or requirements we may provide from time to time for the 70% Royalty Option in the Program Policies.

viii. If at any time your Digital Book does not meet the requirements for the 70% Royalty Option, the Royalty for the Digital Book will be as provided in the 35% Royalty Option.

ix. Any new feature incorporated into the Program will apply to all Digital Books distributed under the 70% Option even if we make the feature optional for other Digital Books.

2. Changing your Royalty Option. You may change your choice of Royalty option for future sales of a Digital Book at any time through our then-current procedures. It may take up to 48 hours for your change to be effective.

3. List Price Requirements. To be accepted in the Program, your Digital Book’s List Price must meet the List Price requirements.