Dear Affiliates
We have no intention of shortchanging our affiliate relationships. We are putting down our position in a systematic manner here to try and address affiliate concerns.
•Empire Online Ltd. (EOL) had a contractual relationship with PartyGaming, which entitled Empire Online Limited (EOL) to a share of the revenues generated by players who played on the PartyGaming system via Empirepoker.com and/or Aceclub.com.
•When PartyGaming agreed to acquire the assets of Empirepoker.com and Aceclub.com from EOL, we agreed to terminate that contractual relationship between PartyGaming and EOL.
•Anyone who was an affiliate of EOL or one of its companies and who sent players to Empirepoker.com and/or Aceclub.com had a contractual relationship with EOL and not with PartyGaming or any of its companies, to be paid by EOL for such players on whichever terms were agreed upon by EOL and the affiliate. PartyGaming is not a party to such agreements nor is privy to them.
•PartyGaming paid for the player revenues from 14 February onwards as part of the overall consideration of $250M. It would not be fair or appropriate for PartyGaming to be compelled to pay additional money to Empire affiliates for obligations owed by EOL or it would effectively be paying twice for acquiring the same players. Therefore, EOL and PartyGaming agreed that EOL would remain liable for its obligations to its affiliates.
•The outcome is that if any affiliate of EOL is owed any money up to the date EOL terminated its contractual relationship with it, it must look to EOL to meet that liability. It cannot look to PartyGaming. We are providing the necessary information to EOL to enable them to calculate those liabilities and we have no reason to believe that they will not meet their liabilities to their affiliates.
•To continue as an affiliate for empirepoker.com or aceclub.com from 15 February 2006 onwards, you will need to enter into a new agreement with PartyGaming. You can do this by contacting your existing Affiliate Manager at PartyPartners or write to us at [email protected], we will be happy to set this up for you.
Affiliate Team
Party Partners