Creator Merchandise Fee Calculations

Within 14 days after the end of each calendar month, Famecast shall compute for each such calendar month a Product’s Net Revenue and Creator’s Creator Fee based thereon, in all cases determining the same in reliance on the books and records that Famecast maintains (such amounts being the “Monthly Net Revenue” and “Monthly Creator Fee”).  Famecast shall deliver a copy of such computations to Creator for Creator’s review and approval promptly after their completion.  Creator shall have seven days to raise specific objections to such computations, failing which such computations will be deemed accepted and approved for all purposes of this agreement.  Promptly after any such objections are raised, Famecast and Creator will, in good faith, use their reasonable efforts to satisfactorily address and resolve such objections, including through mutually agreed equitable adjustments to the Monthly Net Revenue and/or Monthly Creator Fee computations.  

Within 45 days after the end of each calendar month, Famecast will pay, in immediately available funds, 95% of the undisputed Monthly Creator Fee for such month, the balance being the “Monthly Retention Amount”.  

Within 30 days after the end of each calendar quarter, Famecast shall compute for each such calendar quarter a Product’s Net Revenue and Creator’s Creator Fee based thereon, in all cases determining the same in reliance on the books and records that Famecast maintains (such amounts being the “Quarterly Net Revenue” and “Quarterly Creator Fee”).  Famecast shall deliver a copy of such computations to Creator for Creator’s review and approval promptly after their completion.  Creator shall have 14 days to raise specific objections to such computations, failing which such computations will be deemed accepted and approved for all purposes of this agreement.  Promptly after any such objections are raised, Famecast and Creator will, in good faith, use their reasonable efforts to satisfactorily address and resolve such objections, including through mutually agreed equitable adjustments to the Quarterly Net Revenue and/or Quarterly Creator Fee computations.  

If the Quarterly Creator Fee for a calendar quarter exceeds the Monthly Creator Fees paid by Famecast to Creator in respect of such calendar quarter, then the undisputed portion of such excess (after reducing the same for any outstanding Quarterly Overpayment Amounts) shall be paid by Famecast to Creator within 60 days after the date on which Creator submits Creator’s specific objections, and the undisputed balance of such excess, if any (after all such objections are resolved and after reducing such balance by any portion of a Quarterly Overpayment Amount still outstanding)(the “Quarterly Balance Payment”), shall be paid by Famecast to Creator within 30 days after the date on which Famecast and Creator address and resolve all such objections, and upon Creator’s receipt and acceptance of such Quarterly Balance Payment, Creator will be deemed to have relinquished all of Creator’s right, title and interest to, in and under the applicable Monthly Retention Amounts.

If (A) the sum of the Monthly Creator Fees for such calendar quarter exceeds (B) the sum of (i) the Quarterly Creator Fee plus (ii) the sum of the Monthly Retention Amounts for such calendar quarter (the excess for any such calendar quarter being the “Quarterly Overpayment Amount”), then any amounts owed to Creator in respect of the following calendar quarters shall be reduced by an aggregate amount not to exceed the sum of all such Quarterly Overpayment Amounts, notwithstanding anything to the contrary in this agreement. 

For purposes of this agreement, “Net Revenue” shall mean, during any specified period:

(a) the total gross revenues (calculated in accordance to US GAAP) collected by Famecast in connection with the sale of Products through the Creator’s use of the Platform during the period in question, 

minus 

(b) the sum of 

  • the aggregate costs charged to Creator by Famecast for the Products sold by Creator through the Platform, such costs to be determined (on a sale by sale basis) at the time an order is placed by reference to the Product pricing sheet that can be found on Exhibit 1 of the Famecast Creator Merchandise Master Agreement (on file for the Creator), plus
  • the costs associated with or arising from returned Products, chargebacks, fraud, uninsured losses, Product recalls, and/or warranty claims thereon (including the costs of replacement Products on an “as-delivered” basis), plus 
  • logistics and freight fees, plus 
  • transactions fees, plus
  • payment processing fees, plus
  • any marketing and advertising costs that have been pre-agreed
  • any applicable taxes including but limited to VAT

in each case, during the period in question. 

Creator Merchandise Fee Calculations via @famecastmedia
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