AFFILIATE OPERATING AGREEMENT
This Agreement contains the complete terms and conditions that
apply to your participation as an affiliate in the Affiliate
Network of ENCORE SOFTWARE, INC., and the establishment of links from your
affiliate web site to our web site.
-
Enrollment in the Affiliate Network
To begin
the enrollment process, you will submit a complete Affiliate
Network application. We will evaluate your application in
good faith and will notify you of your acceptance or
rejection in a timely manner. We may reject your application
if we determine (in our sole discretion) that your site is
unsuitable for the Affiliate Network for any reason,
including, but not limited to, inclusion of content that is
in any way unlawful, harmful, threatening, defamatory,
obscene, harassing, or racially, ethnically, or otherwise
objectionable.
If we reject your application, you are welcome to reapply
to the Affiliate Network at any time.
- Promotion of Our Affiliate Relationship
As an
Affiliate Site, we will make available to you links (each of
these links sometimes being referred to herein as "links"
or, individually, as a "link"), which, subject to the terms
and conditions hereof, you may display as often and in as
many areas on your site as you desire. The links will serve
to identify your site as a member of our Affiliate Network
and will establish a link from your site to ours.
- Agreements Regarding links:
In utilizing our
links, you agree that you will cooperate fully with us in
order to establish and maintain such links, as the case may
be. You also agree that you will display in your site only
those graphic images (indicating a link) that are provided
by us, and you will substitute such images with any new
images provided by us from time to time throughout the term
of this Agreement. All Affiliate Sites shall display such
graphic images prominently in relevant sections of their
site. All links may be modified and/or expanded from time to
time throughout the term of this Agreement pursuant to the
mutual agreement of the parties hereto. Each link connecting
users of your site to the pertinent area of our site will in
no way alter the look, feel or functionality of our site. In
addition, we encourage (but do not require) you to include a
link to the home page of our site.
- Our Responsibilities
We will be responsible
for providing all information necessary to allow you to make
appropriate links from your site to our site. We will be
solely responsible for processing every order placed by a
customer following a special link from your site, for
tracking the volume and amount of sales generated by your
site, and for providing information to Affiliate Sites
regarding sales statistics. We will be responsible for order
entry, payment processing, shipping, cancellations, returns,
and related customer service.
- Other Responsibilities and Opportunities of Affiliate
Sites
- If you qualify and agree to participate as an
Affiliate Site, you shall display links prominently
throughout your site as you see fit and with our consent.
- Compliance with the Agreement: We have the right in
our sole discretion to monitor your site at any time and
from time to time to determine if you are in compliance
with the terms of this Agreement.
- Commission Determination
The purchase price
of products will count toward the total sales during the
calendar quarter in which such products are sold. Only
products that are sold by us (to users of your site linked
to our site), shipped to a customer, and for which we have
received full payment will qualify for a commission.
Commission rates will vary based upon the volume of sales
made on your site:
- Subject to Section 7(b) hereof, Commission rates will
be a percentage as per agreement of the aggregate amount
actually paid to us by users of your site who purchase
products utilizing the links between our site and your
site, excluding amounts collected by us for sales taxes,
duties, gift-wrapping, shipping, handling, and similar
charges, amounts due to credit card fraud and bad debt,
and credits for returned goods, rebates and discounts
("Net Sales").
- Commission Payment
- Subject to clause (b) below, based on Net Sale
following link received by us in connection with sales of
products purchased by your users through a Link to our
site, we will send a commission fee check for the
applicable commission fee (less any taxes required to be
withheld under applicable law) and a statement of activity
to you approximately sixty (60) days after the end of each
calendar quarter.
- If during the first quarter of this Agreement, or
during any quarter following the payment of commission to
you, your commissions earned do not exceed fifty dollars
($50), then you shall not be entitled to receive any
commissions during the applicable quarter. Thereafter, you
will be paid commissions at the end of the quarter during
which your aggregate commissions earned during such
successive period exceed fifty($50). At such time, you
will be paid all commissions you would have otherwise been
entitled to had your commissions exceeded fifty($50).
- Reports of Sales
You will be given a password
and have the ability to enter a password-protected site to
receive your sales statistics on a daily basis.
- Your Responsibilities
You are solely
responsible for ensuring that reviews, product descriptions,
and articles on your site comply with all applicable
copyright and other laws. You must have express permission
to use another party's copyrighted or other proprietary
material. We will not be responsible if you use another
party's copyrighted or other proprietary material in
violation of the law.
- Policies and Pricing
Customers who buy
products through the Affiliate Network will be deemed to be
customers of ENCORE SOFTWARE, INC. Accordingly, all of our rules,
policies, and operating procedures concerning customer
orders, customer service, and product sales will apply to
those customers. We may change our policies and operating
procedures at any time. For example, we will determine the
prices to be charged for products sold under the Affiliate
Network in accordance with our own pricing policies. Product
prices and availability may vary from time to time. We will
use commercially reasonable efforts to present accurate
information, but we cannot guarantee the availability or
price of any product.
- Publicity
You shall not create, publish,
distribute, or permit any written material that makes
reference to us without first submitting such material to us
and receiving our written consent, which we agree shall not
be unreasonably withheld.
- Licenses and Use of the ENCORE SOFTWARE, INC. Logos
and Trademarks
- WE GRANT YOU A NON-EXCLUSIVE, NON-TRANSFERABLE,
REVOCABLE RIGHT TO (i) ACCESS OUR SITE THROUGH THE LINKS
SOLELY IN ACCORDANCE WITH THE TERMS OF THIS AGREEMENT AND
(ii) SOLELY IN CONNECTION WITH SUCH LINKS, TO USE OUR
LOGOS, TRADE NAMES, TRADEMARKS, AND SIMILAR IDENTIFYING
MATERIAL RELATING TO US (COLLECTIVELY, THE "LICENSED
MATERIALS"), FOR THE SOLE PURPOSE OF SELLING SOFTWARE ON
YOUR SITE FOR ENCORE SOFTWARE, INC., YOU MAY NOT ALTER, MODIFY, OR
CHANGE THE LICENSED MATERIALS IN ANY WAY. YOU ARE ONLY
ENTITLED TO USE THE LICENSED MATERIALS TO THE EXTENT THAT
YOU ARE A MEMBER IN GOOD STANDING OF THE AFFILIATES
NETWORK.
- You shall not make any specific use of any Licensed
Materials for purposes other than selling software on your
site for ENCORE SOFTWARE, INC., without first submitting a sample
of such to us and obtaining the prior written consent of
your ENCORE SOFTWARE, INC. account executive, which shall not be
unreasonably withheld. You agree not to use the Licensed
Materials in any manner that is disparaging or that
otherwise portrays us in a negative light. We reserve all
of our rights in the Licensed Materials and of our other
proprietary rights. We may revoke your license at any
time, by giving you written notice.
- You grant to us a non-exclusive license to utilize
your names, titles, and logos as set forth on Exhibit A
hereto, as the same may be amended from time to time (the
"Affiliate Trademarks"), to advertise, market, promote,
and publicize in any manner our rights hereunder;
provided, however, that we shall not be required to so
advertise, market, promote, or publicize. This license
shall terminate upon the effective date of the expiration
or termination of this Agreement.
- Obligations Regarding Your Site
- You will be solely responsible for the development,
operation, and maintenance of your site and for all
materials that appear on your site. Such responsibilities
include, but are not limited to, the technical operation
of your site and all related equipment; creating and
posting reviews, descriptions, and references on your site
and linking those descriptions to our catalog; the
accuracy and propriety of materials posted on your site
(including, but not limited to, all software related
materials); ensuring that materials posted on your site do
not violate or infringe upon the rights of any third party
and are not libelous or otherwise illegal.
- We disclaim all liability for all such matters.
Further, you will indemnify and hold us harmless from all
claims, damages, and expenses (including, without
limitation, attorneys' fees) relating to the development,
operation, maintenance, and contents of your site.
- Term of the Agreement
The term of this
Agreement will begin upon our acceptance of your Affiliate
Network application and will end when terminated by either
party. Either you or we may terminate this Agreement at any
time, with or without cause, by giving the other party
written notice of termination. You are only eligible to earn
commission fees on sales occurring during the term, and fees
earned through the date of termination will remain payable
only if the related book orders are not cancelled or
returned. We may withhold your final payment for a
reasonable time to ensure that the correct amount is paid.
- Modification
We may modify any of the terms
and conditions contained in this Agreement, at any time in
our sole discretion. A change notice will be posted
publicly. Modifications may include, but are not limited to,
changes in the scope of available commission fees,
commission schedules, payment procedures, and Affiliate
Network rules. If any modification is unacceptable to you,
your only recourse is to terminate this agreement. Your
continued participation in the Affiliate Network following
our posting of a change notice or new agreement on our site
will constitute binding acceptance of the change.
- Relationship of Parties
You and ENCORE SOFTWARE, INC.
are independent contractors, and nothing in this Agreement
will create any partnership, joint venture, agency,
franchise, sales representative, or employment relationship
between the parties. You will have no authority to make or
accept any offers or representations on our behalf. You will
not make any statement, whether on your site or otherwise,
that reasonably would contradict anything in this Section.
- Disclaimers
We make no express or implied
warranties or representations with respect to the Affiliate
Network or any software sold through the Affiliate Network
(including, without limitation, warranties of fitness,
merchantability, noninfringement, or any implied warranties
arising out of course of performance, dealing, or trade
usage). In addition, we make no representation that the
operation of our site will be uninterrupted or error free,
and we will not be liable for the consequences of any
interruptions or errors.
- Representations and Warranties
You hereby
represent and warrant to us as follows:
- This Agreement has been duly and validly executed and
delivered by you and constitutes your legal, valid, and
binding obligation, enforceable against you in accordance
with its terms.
- The execution, delivery, and performance by you of
this Agreement and the consummation by you of the
transactions contemplated hereby will not, with or without
the giving of notice, the lapse of time, or both, conflict
with or violate (i) any provision of law, rule, or
regulation to which you are subject, (ii) any order,
judgment, or decree applicable to you or binding upon your
assets or properties, (iii) any provision of your by-laws
or certificate of incorporation, or (iv) any agreement or
other instrument applicable to you or binding upon your
assets or properties.
- You are the sole and exclusive owner of the Affiliate
Trademarks and have the right and power to grant to us the
license to use your trademarks in the manner contemplated
herein, and such grant does not and will not (i) breach,
conflict with, or constitute a default under any agreement
or other instrument applicable to you or binding upon your
assets or properties, or (ii) infringe upon any trademark,
trade name, service mark, copyright, or other proprietary
right of any other person or entity.
- No consent, approval, or authorization of, or
exemption by, or filing with, any governmental authority
or any third party is required to be obtained or made by
you in connection with the execution, delivery, and
performance of this Agreement or the taking by you of any
other action contemplated hereby.
- There is no pending or, to the best of your knowledge,
threatened claim, action, or proceeding against you, or
any affiliate of yours, with respect to the execution,
delivery or consummation of this Agreement, or with
respect to your trademarks, and, to the best of your
knowledge, there is no basis for any such claim, action,
or proceeding.
- Indemnification
You hereby agree to indemnify
and hold harmless ENCORE SOFTWARE, INC. and its subsidiaries and
affiliates, and their directors, officers, employees,
agents, shareholders, partners, members, and other owners,
against any and all claims, actions, demands, liabilities,
losses, damages, judgments, settlements, costs, and expenses
(including reasonable attorneys' fees) (any or all of the
foregoing hereinafter referred to as "Losses") insofar as
such Losses (or actions in respect thereof) arise out of or
are based on (i) any claim that our use of the Affiliate
Trademarks infringes on any trademark, trade name, service
mark, copyright, license, intellectual property, or other
proprietary right of any third party, (ii) any
misrepresentation of a representation or warranty or breach
of a covenant and agreement made by you herein, or (iii) any
claim related to your site, including, without limitation,
content therein not attributable to us.
- Independent Investigation
YOU ACKNOWLEDGE
THAT YOU HAVE READ THIS AGREEMENT AND AGREE TO ALL ITS TERMS
AND CONDITIONS. YOU UNDERSTAND THAT WE MAY AT ANY TIME
(DIRECTLY OR INDIRECTLY) SOLICIT CUSTOMER REFERRALS ON TERMS
THAT MAY DIFFER FROM THOSE CONTAINED IN THIS AGREEMENT OR
OPERATE WEB SITES THAT ARE SIMILAR TO OR COMPETE WITH YOUR
WEB SITE. YOU HAVE INDEPENDENTLY EVALUATED THE DESIRABILITY
OF PARTICIPATING IN THE AFFILIATE NETWORK AND ARE NOT
RELYING ON ANY REPRESENTATION, GUARANTEE, OR STATEMENT OTHER
THAN AS SET FORTH IN THIS AGREEMENT.
- Governing Law
This Agreement will be governed
by the laws of the United States and the State of
California, without reference to rules governing choice of
laws. Any action relating to this Agreement must be brought
in the federal or state courts located in California, and
you irrevocably consent to the jurisdiction of such courts.
You may not assign this Agreement, by operation of law or
otherwise, without our prior written consent. Subject to
that restriction, this Agreement will be binding on, inure
to the benefit of, and enforceable against the parties and
their respective successors and assigns. Our failure to
enforce your strict performance of any provision of this
Agreement will not constitute a waiver of our right to
subsequently enforce such a provision or any other provision
of this Agreement.
- Change Notice
ENCORE SOFTWARE, INC. has introduced products
for sale on the ENCORE SOFTWARE, INC. site. You now have the opportunity to
earn commissions on these items when such products are
purchased by your users through a link to our site. Any
commissions earned on products will be paid by us in the
same manner and under the same conditions as commissions are
currently paid to you pursuant to the ENCORE SOFTWARE, INC. Affiliate
Network Agreement, and this change notice is subject to the
ENCORE SOFTWARE, INC. Affiliate Network Agreement, which will be amended at
a future date to include these changes. All commission rates
are percentages of Net Sales, as defined in the ENCORE SOFTWARE, INC.
Affiliate Network Agreement.