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Affiliates Commission Income Statement (“Commission Income Statement")

Last Updated: October 10, 2023

These Associates Program policies (“Program Policies“) are incorporated by reference in the Affiliate Program Operating Agreement, and capitalized terms used in these Program Policies and not otherwise defined here will have the definitions provided in the Agreement. The rights and obligations of the parties under Sections 3 and 6 of the Associate’s Program Participation Requirements will survive the termination of the Agreement. For the avoidance of doubt and without limitation for purposes of Section 6(a) of the Agreement, any violation of the Associate’s Program Participation Requirements will be deemed a material breach of the Agreement.

  1. Qualifying Purchases and Qualifying Revenue

We will pay Standard Commission Income described in Section 3 of this Commission Income Statement in connection with “Qualifying Purchases,” which (subject to the exclusions described in this Commission Income Statement) occur when:

(a) a customer clicks through a Special Link on your Site to the Kalox Sites and

(b) during a single session, which is measured as beginning when a customer clicks through that Special Link and ending upon the first to occur of the following: (x) 24 hours elapse from that click, (y) the customer places an order for a Product, other than a digital product (as determined in our sole discretion; for example, a Kalox ticket download or items sold under the name “Kalox Stars Agency,” “Kalox Books,” or “Kalox Magazines”) (a “Digital Product”), or (z) the customer clicks through a Special Link to the Kalox Site that is not your Special Link (a “Session”), any of the following happens:

  1. The customer purchases a Product by adding a Product to their shopping cart and completing the order for that Product no later than 89 days after their initial click-through of the Special Link or
  2. Concerning Digital Products, the customer purchases such a Product by streaming or downloading it from the Kalox Site and

(c) The product is shipped to, streamed, downloaded, and paid for by the customer.

For each Qualifying Purchase, the corresponding “Qualifying Revenue” is equal to the amount we receive from that Qualifying Purchase, less any shipping charges, gift-wrapping fees, handling fees, taxes (e.g., sales tax and GST), service charges, credits, rebates, credit card processing fees, and bad debt.

  1. Disqualified Purchases

Notwithstanding the preceding, Qualifying Purchases are disqualified whenever they occur in connection with a violation of this Kalox Affiliate Program Commission Income Statement or any other terms, conditions, specifications, statements, and policies that we may issue from time to time that apply to the Affiliate Program, including the most up-to-date version of the Agreement (collectively, the “Program Documents“).

Further, the following purchases that would otherwise be Qualified Purchases are disqualified and excluded from the Affiliate Program:

(a) any Product purchased after the termination of your Agreement,

(b) any Product order where a cancellation, return, or refund has been initiated,

(c) any Product purchased by a customer who is referred to the Kalox Site through any advertisement that you purchased through participation in bidding or auctions on keywords, search terms, or other identifiers that include the word “Kalox or Kalox Store” or any other Kalox Names (see a non-exhaustive list of our trademarks via the links below, or variations or misspellings of any of those words (e.g., “Kalos,” “Kalus,” and “Kalux”) (all, a “Prohibited Paid Search Placement“),

(d) any Product purchased by a customer who is referred to the Kalox Site by a link that is generated or displayed on a search engine (including Google, Yahoo, Bing, or any other search portal, sponsored advertising service, or other search or referral service, or any site that participates in such search engine’s network) (a “Search Engine“),

(e) any Product purchased by a customer who is referred to the Kalox Site by a link that sends users indirectly to the Kalox Site via an intermediate site without requiring the customer to click on a link or take some other affirmative action on that intermediate site (a “Redirecting Link“),

(f) any Product purchased by a customer where such customer does not comply with the terms and conditions applicable to the Kalox Sites,

(g) any Product purchase that is not correctly tracked or reported because the links from your site to the relevant Kalox Sites are not correctly formatted,

(h) any Product purchased through a Special Link in a Mobile Application that was not an Approved Mobile Application.

(i) any Product subject to a Bounty Event (as defined in Section 4(a) of this Commission Income Statement, with the corresponding related Special Commission Income),

(j) any Product purchased as a subscription unless otherwise provided in the Agreement, and

(k) any pre-release or pre-order Product unavailable on a Product listing page.

  1. Standard Commission Income

Subject to the limitations described in this Commission Income Statement and compliance with the Agreement, we will pay you the standard commission income. Commission Income is calculated as a percentage of Qualifying Revenue.

  1. Special Commission Income or Promotions

From time to time, we may run general, special programs or promotions that may provide all or some Affiliate Marketers the opportunity to earn additional or alternative commission income (“Special Commission Income“). To avoid doubt (and notwithstanding any time described in this section), Kalox reserves the right to discontinue or modify all or part of any particular program or promotion at any time. Unless stated otherwise, all such special programs or promotions (even those that do not involve purchases of Products) are subject to disqualifying exclusions substantially similar to those identified in Section 2 of this Commission Income Statement. Any restriction under the Program Documents applicable to a Product purchase will also apply on a substantially similar basis as restrictions for special programs or promotions.

  1. Commission Income Limitations

Occasionally, we may limit Affiliates’ opportunity to earn Standard Commission Income or Special Commission Income. To avoid doubt (and notwithstanding any period), Kalox reserves the right to discontinue or modify all or part of any limitation at any time.

  1. Commission Income Reporting and Payment

We will use commercially reasonable efforts to accurately and comprehensively track Qualifying Purchases for our internal tracking and creating and distributing our reports summarizing Standard Commission Income and Special Commission Income earned by you during that month.

You may elect to receive payment in a currency other than the default currency for the Kalox Store Site. If you choose to do so, you agree that the conversion rate will be determined per Kalox’s operating standards.

Payment by Direct Deposit. We will directly deposit the commission income you earn into the bank account you designate once you have provided us with the name of your bank, the account number, and the name of the primary account holder as it appears on the account. Other requested identifying information (such as the ABA, IBAN, or BIC number, if applicable). We reserve the right to hold commission income until the total amount due to you reaches the minimum payment threshold of NLe100 (“Minimum Payment“).

Suppose there has been no substantial activity on your account for at least three (3) years. In that case, we will have the right, with seven days written notice, to withhold the accrued commission income for your inactive account up to a maximum closure withholding of an amount equal to the Minimum Payment for payment by a gift card. Further, any unpaid accrued commission income in your account may be subject to escheatment under applicable law or become extinct by the applicable statute of limitation.

Payments made to you, as reduced by all deductions or withholdings described in the Agreement, will constitute full payment and settlement to you of amounts payable under the Agreement.

If any excess payment has been made to you for any reason, we reserve the right to adjust or offset the same against any subsequent commission income payable to you under the Agreement.

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