Specialty Alliance
Corporation
REPRESENTATIVE AGREEMENT
(for Calnique)

THIS AGREEMENT ("Agreement")
is made between the applying Affiliate ("REP"),
and Specialty Alliance Corporation ("OWNER").
WHEREAS, OWNER wishes to expand its distribution
into new markets and into new distribution channels within
the United States via this Agreement with REP;
WHEREAS, REP wishes to represent OWNER's
Product to various vendees and has the knowledge, resources,
contacts, and willingness to do so;
NOW, THEREFORE, in consideration of
the promises contained herein, the parties agree as follows:
1. DEFINITION.
1.1. "Affiliate"
shall refer to any person or organization that elects to earn
Commission(s) marketing Product.
1.2. "Affiliate
Profit Sharing" shall mean a 10% portion of Net
Company Profits paid to qualified Affiliates. The sum is calculated
monthly by dividing the total number of Affiliates qualified
by 10% Net Company Profits.
1.3. "Commission(s)"
shall mean the monies paid to REP for Sales earned.
1.4. Fixed
Rate shall mean a flat rate purchase price for Wholesale
License Agreements offered by OWNER to REP.
1.5. "Matching
Bonus" shall mean the $8.00 bonus paid to REP when a
sponsored Affiliate sells a Non-Owned License Agreement.
1.6 Net Company Profits shall
mean the total of OWNERS monthly operating expenses subtracted
from OWNERS monthly gross revenues.
1.7. "Net Profit"
shall mean the excess revenue from a Sale of an Owned License
Agreement.
1.8. "Non-Owned
License Agreement" shall mean a License Agreement owned
by OWNER.
1.9. "Owned
License Agreement" shall mean a License Agreement owned
by REP.
1.10. "Product"
shall mean the Calnique Custom Calendar and Wholesale License
Agreements for retail sale.
1.11. "Registered
User" shall refer to any individual or organization that
purchases at Retail the Calnique Custom Calendar.
1.12. "Sale"
shall mean the selling of a Calnique Custom Calendar
License Agreement at Retail, or Wholesale License Agreements.
1.13. "Sponsor" shall mean the
person or business who referred REP to OWNER.
1.14. "Tier
One" shall mean any Sales made by REP.
1.15. "Tier
Two" shall mean any Sales made by Affiliates sponsored
by REP.
1.16. "Wholesale
Volume" shall mean the dollar amount of Wholesale License
Agreements purchased on REP's Tier One and Tier Two.
2. SELLING RIGHTS.
OWNER offers to REP, and REP accepts from OWNER, the right
to represent OWNER's Product to any United States Citizen
18 years or older, or any legal entity within the United States.
OWNER reserves the right to refuse anyone, for any reason from
becoming an Affiliate.
3. SPAMMING AND
EMAIL. OWNER does not condone unsolicited bulk emailing
or the spamming of newsgroups with the REP's assigned Identification
Number. OWNER is not with an Internet Service Provider that
will tolerate this. If REP sends unsolicited emails or emails
addresses REP has bought or harvested, REP's Affiliate status
will be immediately terminated and all Commissions owing REP
for that month will be forfeited.
4. ENGAGEMENT
AND DUTIES. The parties to this Agreement expressly agree
and acknowledge that REP is an independent contractor for
OWNER, and that this Agreement does not create a joint venture
or partnership relationship, or any other relationship, between
the parties.
5. FULFILLMENT.
Upon REP's Sale, it shall be OWNER's sole responsibility to
make deliverable in a reasonable time frame the Product and
to perform all other necessary and related functions to the
Sale. OWNER shall hold REP harmless and indemnify REP for
any action brought against REP as a result of OWNER' failure
to deliver Product, or service the Sale.
6. PRICING AND
TERMS.
6.1. It shall be OWNER's sole responsibility to execute the
pricing and terms of Product. OWNER shall notify REP in writing
of any change in the price of the Product no less than seven
calendar days before the new price goes into effect.
6.2. Pricing:
6.2.1.1. $24.00 - Retail
6.2.1.2. 1-24 License Agreements - $15.00 each.
6.2.1.3. 25-49 License Agreements - $14.00 each.
6.2.1.4. 50-99 License Agreements - $13.00 each.
6.2.1.5. 100+ License Agreements - $12.00 each.
6.3. REP is entitled
from OWNER a fixed rate of purchase for Wholesale License
Agreements provided the following have been met:
6.3.1.1. 25 Cumulative License Agreement Purchases: Fixed Rate- $14.00 each Wholesale
License Agreement
6.3.1.2. 50 Cumulative License Agreement Purchases: Fixed Rate- $13.00 each Wholesale
License Agreement
6.3.1.3. 100 Cumulative License Agreement Purchases: Fixed Rate- $12.00 each Wholesale
License Agreement
6.4. REP agrees to
and understands ten (10) Retail Sales are required to qualify
for Affiliate Profit Sharing.
6.5. REP agrees to and understands REPs
Sponsor may not be changed at any time.
7. PAYMENT.
7.1. Within three
(3) calendar days after OWNER receives payment from any Sale,
OWNER shall remit to REP's in house account the agreed upon
Sales Commissions as found in the Commission Schedule in Section
8.2. REP may request payment as found in Section 7.5.
7.2. Commission Schedule:
7.2.1. Retail Sale
7.2.1.1. REP shall receive from OWNER $8.00 for every Non-Owned
License Agreement sale. Or,
7.2.1.2. REP shall receive from OWNER a Net Profit from each
sale of Owned License Agreements. This is calculated by subtracting
the purchase price in Section 6.2 from twenty-four dollars
($24.00).
7.2.2. Wholesale
Volume
7.2.2.1. REP shall receive from OWNER 25% Commissions from
Wholesale License purchases on REP's Tier One.
7.2.2.2. REP shall receive from OWNER 25% Commissions from
Wholesale License purchases on REP's Tier Two.
7.2.3. Affiliate
Profit Sharing (Effective September 1, 2003)
7.2.3.1. REP shall receive from OWNER 10% Net Company Profits
divided by the total number of Affiliates qualified for Affiliate
Profit Sharing.
7.2.3.2. REP shall receive from OWNER Affiliate Profit Sharing
for the life of this Agreement provided the qualifications
in Section 6.4 have been met.
7.2.4. Matching Bonus
7.2.4.1. REP shall receive from OWNER $8.00 for every Non-Owned
License Agreement sale made by an Affiliate sponsored by REP.
7.3. Adjustments
to Payment. OWNER may deduct from its payments to REP any
Commissions that were previously paid to REP but were subsequently
refunded for a Sale. OWNER shall substantiate any deduction
to be made with written copies of the refunded invoices and
a receipt from the Sale acknowledging the refund, which such
supporting documentation shall be supplied to REP at the time
the refund or adjustment to payment is claimed. Failure to
provide such supporting documentation shall constitute a waiver
of any right in OWNER to make any deduction to the funds to
be paid to REP.
7.4. Refunds. Refunds
for any Retail sale or Wholesale License Agreement(s) may
be requested for thirty days following purchase, provided
the terms of this Agreement have not been violated by REP.
Refunds are calculated by subtracting earned sales Commissions
from monies invested. Therefore, REP understands and agrees
refunds are reviewed on an individual basis and only pro-rates
in some cases are given.
7.5. Form of Payment.
All payments to REP shall be drawn on OWNER company checks
and shall be delivered to REP via: (a) U.S. Postal Service;
or (b) hand delivery; or (c) nationally recognized overnight
delivery service. REP may utilize the Request-A-Check
utility once per calendar month free of charge to receive
a Commission check. REP agrees to and understands there is a $10,000.00 limit per check request and a $3.00
check processing fee will apply to any check requests following
the one free issued check per calendar month.
8. WARRANTY.
OWNER warrants that it has not entered into, and during the
term of this Agreement will not enter into, any agreement
expressly or impliedly inconsistent with the rights granted
to REP by this Agreement. OWNER makes no warranties regarding
the Merchantability of the Product and hereby expressly disclaims
same. REP makes no warranties regarding its ability to represent
the Product. REP shall make no warranties relating to any
Product, nor shall REP represent to any Sale or any third
party that any warranty relating to any Product is made by
OWNER. Additionally, OWNER makes no express or implied warranties
or representations with respect to the REP's potential to
earn income from the Affiliate Program. Nor shall REP make
express or implied warranties or representations that any
warranty relating to income potential exists to any third
party. In addition, OWNER makes no representation that the
operation of any portion of OWNER's website will be uninterrupted
or error-free, and OWNER will not be liable for the consequences
of any interruptions or errors.
9. TERM. This
Agreement is effective from the date of acceptance by the
REP. The Agreement shall continue indefinitely unless terminated
by either party as set forth herein.
10. ENFORCEMENT.
OWNER agrees to make all relevant information available to
REP for the purpose of verifying REP Sales of the Product.
OWNER shall provide REP with a Sales Ledger for all sales
executed by OWNER. The Sales Ledger shall include no less
than the following information:
a) Transaction ID
b) Transaction Date
c) Transaction Description
d) Transaction Total
e) Account Balance
REP shall be entitled to verify the information
provided by OWNER pursuant to this paragraph in the same manner
as inspection of books and records are provided for under
any applicable statute.
11. TERMINATION.
11.1. Termination
by REP. REP may terminate this Agreement if:
a) OWNER fails to
pay REP as defined in this Agreement; or
b) OWNER fails to
service the Sales in a timely and efficient manner; or
c) There is any other
material breach of this Agreement.
11.2. Termination
by OWNER. OWNER may terminate this Agreement if:
a) REP fails to represent
the Product in an ethical manner as outlined by this Agreement,
and
b) in any way violates
the companies Spam policy, Or
c) there is any other
material breach of this Agreement.
11.3. Notice of termination shall be made
by certified mail and shall take effect three (3) days after
confirmation and acceptance of notice by the defaulting party.
12. EFFECT OF
TERMINATION. OWNER obligation to pay REP all monies earned
pursuant to this Agreement shall survive the Termination of
this Agreement. If this Agreement is terminated, REP shall
immediately cease all representations of the Product and shall
return all Product and other related material in its possession,
if any, to OWNER.
13. CONFIDENTIALITY.
REP and OWNER acknowledge that any information (including
Registration Key Codes) obtained regarding the operation of
the other or its products, services, policies, methods, prices,
this Agreement, or any aspect of its business is confidential
and shall not be revealed or disclosed to any
person, company, or other entity without the express written
consent of the other party.
14. TAXES. U.S.
law requires OWNER to collect tax information from REP's who are
U.S. citizens or U.S. corporations. OWNER is obligated to have
this information on file in order to pay sales commissions to REP.
International Affiliates are required to file their own taxes according
to the specific laws governing their Country or Province.
15. INDEPENDENCE.
Nothing in the Agreement shall be construed as creating a
partnership or joint venture between the parties or making
REP an employee of OWNER. REP is an independent contractor
and shall conduct its business at its own cost and expense.
REP shall have no authority to make unauthorized representations
or warranties on behalf of OWNER, and REP shall control the
method of means used to market the Products as outlined and
provided in the Lounge at the company website. REP must be
18 years or older and a United States citizen. OWNER will
provide REP with a 10-99 Misc. Tax statement each year a sales
Commission is earned and this Agreement remains in effect.
16. ARBITRATION. Any dispute, controversy,
or claim arising out of or relating to this Agreement, or
the breach, termination or invalidity thereof, shall be submitted
to binding arbitration by the American Arbitration Association
(the "AAA") pursuant to its rules regarding commercial
disputes. The arbitrator shall be selected by the AAA and
shall be certified by the AAA as having a familiarity with
Software Sales and Affiliate Programs and the legal issues
related thereto. The arbitration shall be conducted in the
City of Richmond, VA and all proceedings shall be conducted
in the English language. The arbitrator may proceed to an
award notwithstanding the failure of the other party to participate
in the proceedings. The prevailing party shall be entitled
to an award of reasonable attorney fees incurred in connection
with arbitration in such amount as may be determined by the
arbitrator. The award of the arbitrator shall be the sole
and exclusive remedy of the parties and shall be enforceable
in any court of competent jurisdiction. Notwithstanding the
forgoing, the parties shall be entitled to seek injunctive
relief and\or specific performance from any court of competent
jurisdiction.
17. REMEDIES FOR
BREACH.
17.1. Injunctive
Relief. Notwithstanding paragraph 16 above, in the event of
a breach of this Agreement, the non-breaching party shall
be entitled to obtain temporary, permanent, and\or final injunctive
relief on an ex-party basis barring the breaching party from
any violation of this Agreement, upon application, with or
without notice, to a court of competent jurisdiction, regardless
of proof, or a lack thereof, of actual damages.
17.2. Damages. The
parties acknowledge and agree that any breach of this Agreement
shall, in addition to and not to the exclusion of the other
remedies set forth herein, subject the breaching party to
liability for compensatory and punitive damages in favor of
the non-breaching party. Expressly excluded from this paragraph
are the provisions of this Agreement regarding arbitration
and jurisdiction.
17.3. No Limitation of Remedies. The remedies
expressly provided for in this Agreement shall not limit or
waive, in any way whatsoever, the parties other rights and
remedies under applicable law, but shall be cumulative and
in addition to such other rights and remedies. Expressly excluded
from this paragraph are the provisions of this Agreement regarding
arbitration and jurisdiction.
18. MISCELLANEOUS
TERMS.
18.1. Waivers. Except
as otherwise expressly set forth herein, no modification,
amendment, or waiver of any of the provisions contained in
this Agreement or any future representations, promises, or
conditions in connection with the subject matter of this Agreement
shall be binding upon any party to this Agreement unless made
in writing and signed by such party or by a duly authorized
officer or agent of such party. No alteration, modification
or impairment will be implied by reason of any previous waiver,
extension of time, delay or omission in exercise of rights
or other indulgence, and shall not operate as such or be construed
as a waiver by the non-breaching party of any subsequent breach
of this Agreement.
18.2. Amendments;
Supplements. Except as otherwise expressly set forth herein,
this Agreement may be amended or supplemented at any time
by the Specialty Alliance Corporation, and by remaining
and participating as a REP, REP acknowledges full acceptance
of the revisions.
18.3. Entire Agreement.
This Agreement constitutes the entire Agreement between the
parties hereto with respect to the subject matter hereof and
supersedes all prior Agreements and understandings, oral and
written, between the parties hereto with respect to the subject
matter hereof. No representation, warranty, promise, inducement
or statement of intention has been made by any party which
is not embodied in this Agreement, and no party shall be bound
by, or be liable for, any alleged representation, warranty,
promise, inducement or statement of intention not embodied
herein or therein. The parties acknowledge and confirm that
each has read, studied, understands, accepts and agrees to
comply with all the terms, conditions, obligations, restrictions
and liabilities of this Agreement.
18.4. Binding Effect;
Benefits. This Agreement shall inure to the benefit of and
be binding upon the parties hereto and their respective permitted
successors, heirs, legal representatives, and assigns. Notwithstanding
anything contained in this Agreement to the contrary, nothing
in this Agreement, expressed or implied, is intended to confer
on any person, other than the parties hereto or their respective
permitted successors, heirs, legal representatives, and assigns,
any rights, remedies, obligations or liabilities under this
Agreement.
18.5. Assignability.
Neither this Agreement nor any of the parties' rights hereunder
shall be assignable without the prior written consent of the
non-assigning party.
18.6. Notices. Any
notice or the delivery of any item to be delivered by a party
hereto shall be delivered personally; by U.S. mail, return
receipt requested; or by a next-day courier delivery service,
i.e., Federal Express, Airborne, UPS, etc.; or facsimile.
Delivery by U.S. mail shall be deemed to have been made three
calendar days from the postmark on the item mailed. Delivery
by next-day courier delivery service shall-be-deemed to have
been made when such deliveries are actually received at the
addresses set forth above. Any party may change its address
for purposes of this paragraph by giving the other party written
notice of the new address in the manner set forth herein above.
Notwithstanding the provisions of this paragraph, service
of process must be made as required by applicable Virginia
law.
18.7. Severability.
The validity, legality or enforceability of the remainder
of the provisions in any of this Agreement will not be affected
even if one or more of the provisions of this Agreement will
be held to be invalid, illegal or unenforceable in any respect.
If any portion of this Agreement is held to be unreasonable,
arbitrary or against public policy by any court or tribunal,
the applicable portion of the Agreement shall still be enforced.
Any determination of invalidity, illegality or non-enforceability
shall be given as limited a construction as possible under
applicable law, and the remainder of the Agreement shall be
construed as expansively as possible under applicable law.
18.8. Governing Law;
Jurisdiction. This Agreement has been negotiated in the State
of Virginia, and all questions with respect to this Agreement,
its interpretation, rights and liabilities of the parties
will be governed by the laws of the State of Virginia, regardless
of the choice of laws provisions of any other jurisdiction.
The parties hereto agree that the exclusive venue for purposes
of arbitrating or litigating any dispute arising under this
Agreement shall be in the City of Richmond, and neither party
shall contest jurisdiction or venue in Richmond, Virginia
on grounds of forum non convenience, lack of in personal jurisdiction,
or for any other reason. Notwithstanding the remainder of
this paragraph, issues relating to copyright and trademark
shall be construed in accordance with and will be governed
by the laws of the United States and any applicable international
conventions or treaties.
18.9. Arbitration
and\or Litigation; Attorney's Fees\Costs. In the event any
arbitration and\or litigation should arise between the parties
hereto to interpret or enforce the terms of this Agreement,
or if any legal or equitable action or any arbitration or
other formal proceeding is brought to enforce or interpret
the terms of this Agreement, the non-prevailing party shall
pay the reasonable expenses including, attorney's fees, court
costs or arbitrator's costs, and any other relief deemed appropriate
by a court of competent jurisdiction, of the prevailing party
in connection therewith, including appeals regardless of which
party initiates the appeal, plus interest at the highest rate
allowed by law.
18.10. Return of
Information. Any information exchanged by the parties relating
to their businesses, which such information is in tangible
or machine-readable form shall, upon request, be returned
to the other party within 7 calendar days after the termination
or expiration of this Agreement or the conclusion of the work
to which the requested information relates.
18.11. Representation
by Counsel. The parties hereto expressly stipulate and agree
that each has had an adequate opportunity to have this Agreement
reviewed by counsel of their choice and that they and their
counsel are satisfied with the content and subject matter
of this Agreement.
18.12. Time of the Essence. The parties
hereto expressly stipulate and agree that time is of the essence
with respect to all provisions of this Agreement.
19. RULES OF CONSTRUCTION.
19.1. Headings. The
section headings in this Agreement are inserted only as a
matter of convenience, and in no way define, limit, or extend
or interpret the scope of this Agreement or of any particular
section.
19.2. Tense and Case.
Throughout this Agreement, as the context may require, references
to any word used in one tense or case shall include all other
appropriate tenses or cases. Whenever the context so requires,
the masculine gender shall include the feminine or neutral
gender, and singular number shall include the plural number,
and vice versa.
19.3. Drafting. This
Agreement shall not be construed against either party hereto
on grounds of vagueness or for any other reason whatsoever,
and the parties hereby expressly agree that this Agreement
was drafted mutually by each of them.
19.4. Incorporation of Recitals. That portion
of this Agreement entitled "Recitals" is incorporated
into the body of the Agreement as if fully set forth hereunder,
and the representations therein are binding on both parties.
When becoming an Affiliate, you must agree to the terms and conditions
presented above. You must understand that these terms contain certain important
information about your rights and obligations and your relationship with
the Specialty Alliance Corporation. You also agree that submitting an
Affiliate Registration constitutes your electronic signature accepting these
terms in lieu of a physically signed document.
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