Compensation Terms Sheet
Alpha User Points System: Merchants who upload a work of music for sale through the Clean Hip Hop website are compensated for each sale of their work in accordance with Clean Hip Hop’s implementation of the Alpha User Points system through PayPal. The Alpha User Points System is a referral user points system, which enables merchants to accumulate user points for each sale and to then convert those accumulated user points into electronic payments once certain conditions are met. A description of how this process works through our website is set forth below.
User Points: Subject to the limitations specified herein, for each cent ($0.01) paid by a user for a work of music through our website, the merchant selling the work of music will be credited with one (1) User Point, up to a maximum number of User Points equal to eighty-five percent (85%) of the total sale amount. For example, if a merchant sells a work of music for one dollar ($1.00) through our site, the merchant will be credited with eighty-five (85) User Points for the sale.
No fractional User Points will be credited. So, in the event that eighty-five percent (85%) of the amount paid by a user for a work of music results in amount containing a fraction of a cent, the fraction shall be rounded down to the nearest whole cent amount in crediting User Points. For example, if a merchant sells a work of music for $0.95, eighty-five percent of the sale amount would be equal to $0.80 and ¾ cents. Since no fractional User Points are credited, the number of User Points that will be credited to the merchant’s account for this sale will be 80.
Accumulation of User Points: User Points will continue to accumulate as a credit to the merchant’s account with each sale until such time as they are converted into an electronic distribution of funds under the terms stated herein. An electronic record of the amount of User Points credited to a merchant will be maintained through our website and will be available for review by the merchant through their account.
Converting User Points to Electronic Funds: A merchant may convert User Points to electronic funds after the merchant has accumulated at least 2,500 User Points in the merchant’s account. Once this minimum threshold for accumulated User Points is achieved a link icon will be posted on the merchant’s account under the PayPal icon. To convert the accumulated User Points to electronic funds, the merchant merely needs to click on this link icon and follow the PayPal directions on the linked page(s). Funds will then be transferred to the merchant’s PayPal account within 72 hours.
Website Administration Fee: Our website’s fee for enabling and administering a sale of a merchant’s work of music through our website is fifteen percent (15%) of each sale amount. In the event that fifteen percent (15%) of the sale amount results in amount containing a fraction of a cent, the fraction shall be rounded up to the nearest whole cent amount in crediting our portion of the sale amount as our administration fee.