Affiliate Agreement. between. Karatbars International GmbH Königstraße 52 D Stuttgart
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1 Affiliate Agreement between Karatbars International GmbH Königstraße 52 D Stuttgart Represented by President of the Board Pietro Fazio tel (0) support@karatbars.com HRB , District Court Amtsgericht Stuttgart Tax No. USt.-ID: Address for correspondence and operations: Karatbars International GmbH Herein after referred to as the Advertiser / Merchant Name: Ms / Mr: and Date of Birth:... Address:... ID-No:... Tax-No: Affiliate Contract No: Herein referred to as the Affiliate This Agreement regulates the basic principles of cooperation between the contractual parties named, as a result of detailed and personal negotiations. Furthermore, an integral part of the Agreement is the attached addendum. Marketing Plan The marketing plan, and the attached addendum includes the definitive particulars of the valid remuneration regulations. The Affiliate confirms to have taken note, explicitly audited, understood and accepted the mentioned attached addendum. The Affiliate declares explicitly to accept and approve this agreement inclusive of the mentioned addendum, without exceptions.
2 1. Introduction The Merchant distributes precious metals, and Sells Goods and services, around the world. The Affiliate receives the right to recommend products and services, as an independent contractor (self-employed), Affiliate for the Merchant, in reference to sales transactions of precious metals and other Goods, in accordance with the respective national laws and subject to the provisions stated herein. 2. Obligations and Position of the Affiliate The Affiliate shall be solely responsible to ensure that: they have fulfilled all statutory and regulatory requirements, in order to be allowed to recommend (i.e. act as a middleman ) and receive compensation on resultant sales, as their part of the business transactions in precious metals, and other goods and services, in their respective country. The Affiliate shall register their trade with the responsible authorities and with their locally responsible tax office independently, and provide evidence for all authorizations to the Merchant. As long as the Affiliate has not fulfilled KYC requirements, they may not commence their activity. The Affiliate shall be solely responsible for the fulfilment of all legal obligations, including obligations under all applicable: trade laws, tax laws, labor laws, competition laws, and other statutory obligations, without exception. They shall duly inform the financial authorities about any earned commissions, and shall pay requisite taxes on them. The Affiliate shall not be employed with the Merchant under labor law. They shall be an independent contractor, and shall perform the due diligence of a prudent business person in their own business. Furthermore, they shall behave in an ethical manner and comply with the national laws regarding fair competition, and accepted business practices, as laid out in the in-house (Merchants) terms & conditions, regulations and directives, of the Merchant for business conduct. The Affiliate shall always ascertain their actions do not violate any laws, or regulatory requirements. If the Affiliate should act solely on behalf of the merchant as an Independent Contractor, they shall be obliged to file any petitions, deemed necessary for exemption from social insurance at the appropriate Institutions. The Affiliate shall always protect the interests of the Merchant and do all within their power to ensure that the Merchants reputation is not damaged or diminished. The Affiliate shall consistently review Merchants training and education webinars and materials, and then pass-on the knowledge gained therein, to their subordinate referral affiliates. 3. Affiliate s Rights The Affiliate shall have the right to only recommend the sale of such products of the Merchant that are released for sale in writing by the Merchant, and in accordance with the respective national law.
3 They shall be entitled to carry out advertising efforts; however, they shall submit to the Merchants Compliance Office for pre-approval, any presentation with external impact that concerns or impacts the Merchant. The Affiliate shall not be permitted to issue any statements on behalf the Merchant. Such statements shall not be binding for the Merchant, but possibly for the Affiliate who is solely responsible. The Affiliate shall not have any power of representation for the Merchant. They shall be liable for their own statements and shall release the Merchant from all consequences of unauthorized statements, if necessary. Moreover, the Affiliate shall not be permitted to accept any money on behalf of the Merchant. Customers cannot make payments to the Affiliate with the effect of discharging an obligation. The Affiliate shall not have any authority to collect monies on behalf of the Merchant. The Affiliate will NOT be eligible to make a refund on business packages once a purchase has been completed. As an affiliate the purchase is considered a Business to Business transaction and cannot be refunded. If for some reason a country is closed due to its local laws and regulations restricting the delivery of our products, the affiliate will be eligible to receive a refund. If the purchase was however made via a credit card, the refund will only be made 6 months after the purchase of that product. The product can also be picked up at our corporate office upon request. 4. Affiliate s Information Obligation The Affiliate, and their Down-Line Affiliates, shall be obliged to always stay informed about the current products of the Merchant,the terms and conditions as well as compliance guidelines which include the system and all data and facts important to the customers, through the posted information in back-office area of their Karatbars website. Affiliates shall inform the customers about the Karatbars products in a truthful and professional manner, and make their Karatbars website address and its information available to them. Affiliates may only use the content of the Karatbars website, and of the official documents, to the customers and may not under any circumstance change the official content. 5. Affiliate s Duties The Affiliate shall always protect the interests of the Merchant to the best of their knowledge and ability. The Affiliate shall recommend the products authorized by the Merchant. Upon the acceptance of the sales contract, which has been personally recommended by the affiliate, the affiliate shall receive remuneration in accordance with the remuneration plan / marketing plan within the addendum, whereas there has been no violation of the terms and conditions or compliance regulations prescribed herein.
4 Furthermore, the Affiliate shall be obliged to recommend further customers and Down-Line Affiliates. If their referral results in the successful completion of precious metal or other goods and services sales transactions, the Affiliate and Down-Line Affiliates shall also receive remuneration, according to that defined in the remuneration and marketing plan & addendum. The Affiliate shall not have any territorial protection and shall not have to comply with any territorial protection of other Affiliates. All Affiliate marketing must adhere to the corporate compliance regulations. 6. Express Prohibitions The Affiliate shall not be permitted, without the Merchant s express consent, or permit others within their influence and control: - to make public statements including statements to the press or media in regard to the Merchant, merchants business model, company policy, operating procedures or other internal knowledge, - to use the Karatbars logo or the trademarked name of Karatbars International GmbH on letterheads, domain names or advertisement without permission. Violations will result in the revocation of the affiliate status without notice. - to provide information or make promises that differ from the contents of Karatbars documents as expressed on the official Karatbars website and marketing brochures, - to use material other than the original x Merchant brochures and Karatbars preprinted forms, - to sell original Karatbars documents or pass them on to unauthorized persons, - to use any software in the name of Karatbars International GmbH,- to accept any money from customers - to assign any claims against the Merchant to any third parties. 7. Confidentiality The Affiliate shall be obliged to comprehensive protection of customers personal data as well as comply with all regulations under the data protection laws. Any violation of their confidentiality obligation shall not only render the Affiliate liable to pay damages, but shall possibly also render them liable to termination as an affiliate and/or possible civil prosecution. All named contents, especially working documents such as pre-printed forms, brochures, training and business documents and/.or agreements including the present agreement shall be subject to copyright protection. The Affiliate may neither use the contents outside the affiliate business relationship nor pass them on to third parties, have them passed on to third parties or copy or reproduce items, in whole or in part form. The obligations of the Affiliate, described in section 1, shall survive the termination of this agreement without limitation. If this agreement is terminated, or if the Affiliate no longer requires any documents of any kind from the present business relationship, they must discontinue to use proprietary items immediately. This shall especially apply to brochures, pre-printed forms and training documents. Any supposed right of retention of the Affiliate, regardless of the reasons, shall be excluded.
5 8. Claim for Remuneration Accrual of any amount of any claim for remuneration of the Affiliate against the Merchant shall be specified in the attachment, namely in the remuneration regulations and particulars of the marketing plan. The Affiliate shall not have any claims for payment against the customer, and may not demand any remuneration from them.
6 Each payment of remuneration to the Affiliate shall require that the customer has paid for an amount of precious metal and that the Affiliate has not violated any provisions hereof. Claims for remuneration from Affiliate against the Merchant are subjected to the nonassignment clause. Due claims are transferred by death of the Affiliate to their heirs, on the basis of testation or intestacy rules. 9. Accounting The Affiliate shall be remunerated, and accounted for, according to the valid Marketing Plan and addendum herewith. The Affiliate can view their accounts via their personal x back-office data online. Any objections shall be made within 10 working days. Thereafter, the account shall be deemed as acknowledged and accepted. Payments of remuneration shall be made as specified in the affiliate plan exclusively via a debit card to the account indicated by the Affiliate with the effect of discharging an obligation in the credit memo procedure. As soon as the Affiliate obtains the right to commission equaled to at least 35 euro, the Merchant shall provide them with a debit card. Their card s account shall be debited with a charge of 20 euro for the card. 10. Value-Added Tax Commission for mediatory Remunerations for recommendation of the sale of pure gold in Germany shall be exempted from VAT and shall always be paid net, (excluding) VAT. If the Affiliate is required to pay VAT in their country, this tax shall be paid from their paid remuneration. If the Affiliate desires pay-out to them of the value-added tax, they shall fulfill the required statutory requirements of the respective country, and provide evidence for this to the Merchant. In this case, the Affiliate shall be obliged to prepare an (lawful) invoice for the Merchant that shows the value-added tax. All requirements and conditions of the responsible financial authorities in the respective country shall be clarified by the Affiliate and communicated to the Merchant, as well as any possible Customs Duties or other Governmental (national or provincial) fees or taxes. If the Affiliate fails to provide corresponding notifications to the Merchant, they shall be liable for any resulting charges or damage themselves, and shall release the Merchant from all claims Commission for Packages and Sales Goods: Federal Republic of Germany The commission for acting as a middleman in the sale of goods covered by VAT in Germany shall be gross and include VAT, which the Affiliate should pay to a relevant federal tax revenue office Other countries of the Community and third-party states
7 The commission in other member states of the European Union and other non- European countries shall be paid net to the affiliate, and any fees due shall be paid by them. 11. Merchant s Obligations The Merchant shall maintain a website that provides general information on: the company, its programs, and its products or services, and that is updated on an ongoing basis. The Affiliate shall also receive all necessary information and forms via the links available there and through their personal back-office affiliate access. The Merchant shall thus provide the Affiliate with all necessary sales and training documents as well as pre-printed contract forms online, in a back-office section from which they can download the required documents. If the Affiliate desires to receive supporting material in writing in physical form, they can purchase it according to the price list on the website. For further inquiries, the Merchant shall maintain a customer and affiliate support center that assists and supports the Affiliate in several world languages, in the event of uncertainties. The Merchant offers regular training options on the internet (i.e. webinars, etc) in order to keep the Affiliate updated in all areas of their activities. The Merchant shall inform the Affiliate immediately about any product change, in regard to the sales or accounting system, as well as about news that could be interesting or important for the Affiliate. The Merchant has their own software accounting system via which the Affiliate s claims for remuneration are calculated on a daily basis. The Merchant shall pay any due remuneration once a month / weekly, out to the Affiliate according to the respective applicable remuneration regulations in the current marketing plan. In doing so, they shall consider the structure of the Affiliate s Down-Line Affiliates organization established by the Affiliate, and comply with the underlying organization integrity and continuity protections. 12. Merchant s Authorities The Affiliate shall permit the Merchant to contact them at any reasonable time. The Merchant shall be authorized to give instructions to the Affiliate, if this is necessary for successful business. In all other cases, the Affiliate shall not be bound by instructions. The Merchant shall furthermore be authorized to update the remuneration regulations and the marketing plan provided in the addendum, upon prior announcement. These addendum specific details or aspects shall be subject to alteration, as deemed necessary. Upon introduction of new regulations, the prior regulations shall no longer be valid, unless otherwise provided by the Merchant. Agreements already concluded shall have the right of continuance of fulfilment, in accordance with the regulations applicable at the time of conclusion of the agreement. The Merchant is authorized, to determine a legal successor.
8 13. Duration of Agreement / Termination The agreement shall be continued, as written, for an indefinite period of time. It may only be terminated by either of the contractual parties, within a time-span of 6 weeks notice, prior to the end of the quarter. It may also only be terminated for good cause by any of the contractual parties in writing according to the respective national regulations. Good cause shall e.g. be if the Affiliate turns out to be unreliable, especially if claims are made against the Merchant because of them, or if the Merchant is given a written warning due to the Affiliate s infringement. The Merchant shall also be entitled to terminate, without notice, if the Affiliate has committed serious breaches of contract that could impair rights or reputation of the Merchant, of another Affiliate or of a customer. This shall especially include violations of confidentiality or data protection obligations, and the prohibition of collection and enticement, if the Affiliate has provided incorrect contract details or has incurred a penalty. Furthermore, the Merchant shall be entitled to a right of termination without notice if the Affiliate continues any breaches of contract despite the Merchant written warning or fails to comply with the Merchant instructions. 14. Data Protection In general the Merchant shall gather only the data, which is necessary to provide services or perform the Agreement, which may require the Affiliate s personal data to be submitted to any entities responsible for providing given services or performing the Agreement. It may refer to transport companies or other service providers. The Merchant shall not provide any data gathered in a broad sweeping (i.e. Spidercollector) manner, unless they are obliged by court or applicable laws. The Merchant s employees have been required to agree to keep confidence, in writing. The Affiliate shall agree to: be provided with a newsletter, participate in incentive competitions, have their financial reliability (KYC) and age evaluated in order to make payment or perform payment methods. Following the Agreement expiration the Affiliate s data shall be blocked and they shall be deleted as of the expiry of the time limit that results from tax, legal and commercial regulations. If the Affiliate subscribed to a newsletter by providing their , this address may be also used for marketing purposes exceeding the performance hereof. At any time the Affiliate shall receive free-of-charge information on their recorded personal data for any reason. The Affiliate may at any time: block the recorded data, correct it, or have it deleted. Moreover, the Affiliate shall have the right to recall at any time their consent to record their data, without any specified reason, to the address provided in the legal note. The Merchant shall be obliged to provide at any time the
9 Affiliate with any information, which is necessary, in accordance with their business conduction. 15. Contractual Language Contractual languages shall be German / English. Any correspondence in another language shall be translated into German / English at the Affiliate s expense, risk and responsibility. The Merchant shall not be responsible for translation errors. 16. General Terms and Conditions Karatbars International GmbH shall not use any General Terms and Conditions. Any General Terms and Conditions of the Affiliate shall not be recognized by Karatbars International and shall not be applicable. 17. Mediation Place of Jurisdiction Where disputes arise between the parties on the basis of the contractual relationship, they shall be amicably settled via an acknowledged mediator in Germany. If mediation fails regardless of the reasons, any disputes shall be resolved in German courts according to German law. The Place of legal jurisdiction shall be Stuttgart. 18. Written Form Changes or supplements to this agreement shall be made in writing. If an Affiliate fails to notify of substantial changes, such as change of name or address, any statements made by Karatbars International GmbH to the names and addresses included in this agreement shall be deemed as served upon mailing. 19. Severability Clause Should any provision of this agreement or its attachments be or become ineffective or infeasible in whole or in part, it shall be replaced by a relevant statutory provision. This shall not affect the remaining provisions of this agreement which shall remain effective without the need to conclude a new agreement. Date and place Date and place Partner Affiliate Karatbars International GmbH
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