Document:

U.S. Geothermal Inc.: Exhibit 10.1  - Filed by newsfilecorp.com

SUBSCRIPTION AGREEMENT FOR UNITS

TO:    U.S. Geothermal Inc. (the
“Company”)

The undersigned (the “Investor”) hereby subscribes for
and agrees to purchase the number of Units of the Company (the “Units”)
set forth below at a price of US$0.37 per Unit, for the total aggregate
subscription price set forth below (the “Aggregate Subscription Price”),
upon and subject to the terms and conditions set forth in this agreement (the
“Subscription Agreement”). Attached as Annex I and Annex II to this
Subscription Agreement is a summary of the terms and conditions of the sale of
the Units and the representations, warranties and covenants hereby made by the
Investor (on its own behalf and, if applicable, on behalf of the others for whom
it is contracting hereunder) and the Company, all of which Annex I and Annex II
forms part of and is hereby incorporated by reference into this Subscription
Agreement (collectively, the “Terms and Conditions”).

	  	 	Number of
      Units:                       
      [•]
	  	 	No. of Warrant
      Shares:            
      [•]
	 	 	 
	
      By: 
	
       
	 	Aggregate Subscription
      Price:          
      US$[•]
		
      (Authorized Signature)  
	 	Per Unit Subscription
      Price:               US$0.37
    
	 	 	 	 
	
      (Official Capacity or Title – please print) 
	 	 The relationship between the Investor and the
      registered 
	
      
	 	holder listed: 
	
      (Please print name of individual whose signature appears
      
	 	 
	
      above) 
	 	 
	  	 	 
	(Investor’s Address) 	 	 
	  	 	 
	  	 	(Name of DTC Participant (broker-dealer at which
      the account 
	  	 	or accounts to be credited with the Shares are
      maintained) 
	 	 	 
	  	 	 
	(Telephone Number) 	 	(DTC Participant Number) 
	 	 	 
	(E-mail Address) 	 	(Name of Account at DTC Participant being credited
      with the 
	  	 	Shares) 
	 	 	 
	Business Identification Number or Social Insurance
      Number of 	 	(Account Number at DTC Participant being credited
      with the 
	the registered holder (as applicable) 	 	Shares) 
	 	 	 
	  	 	 
	Register the Shares and Warrants as set forth
      below: 	 	Deliver the Warrants as set forth
      below: 
	 	 	 
	(Name) 	 	(Name) 
	  	 	 
	(Account reference, if applicable) 	 	(Account reference, if applicable) 
	 	 	 
	(Address) 	 	(Contact Name) 
	 	 	 
	  	 	(Address) 

ACCEPTANCE: U.S. Geothermal Inc. hereby accepts the
subscription as set forth above upon and subject to the terms and conditions
contained in this Subscription Agreement.

__________________, 2012

	U.S. GEOTHERMAL INC. 	 	 
	 	 	 
	By: ___________________________	 	 

This Signature Page is the first page of a Subscription
Agreement comprised of 12 pages (not including Exhibit A).

ANNEX I

TERMS AND CONDITIONS OF SUBSCRIPTION FOR 
UNITS OF U.S.
GEOTHERMAL INC.

     The Investor hereby confirms its
agreement with U.S. Geothermal Inc., a Delaware corporation, as follows:

     1. This Subscription Agreement,
including the Additional Terms and Conditions For Purchase of Units attached
hereto as Annex II (collectively, (this “Subscription Agreement”)
is made as of the date set forth on the Signature Page hereto between the
Company and the Investor.

     2. The Company has authorized the
sale and issuance to certain investors of up to an aggregate of 11,960,792 units
of the Company (the “Units”), subject to adjustment by the Company’s
Board of Directors, or a committee thereof, with each Unit consisting of (i) one
share of common stock of the Company, par value US$0.001 per share (the
“Common Shares”), and (ii) one-half of one common share purchase warrant
(a “Warrant” and, collectively, the “Warrants”). Each whole
Warrant will entitle the holder to purchase one (1) Common Share at an exercise
price of US$0.50 per Common Share (subject to adjustment) and is exercisable for
a period of sixty (60) months from the Closing Date (as defined in Annex II to
this Subscription Agreement). The certificate representing the Warrants shall be
in substantially the form of Exhibit A attached hereto (the “Warrant
Certificate”). The aggregate of up to 11,960,792 Common Shares comprising
the Units proposed to be sold is hereinafter referred to as the “Shares.”
The Units will not be issued or certificated. The Shares and the Warrants are
immediately separable and will be issued separately. The Common Shares issuable
upon exercise of the Warrants are referred to herein as the “Warrant
Shares” and, together with the Units, the Shares and the Warrants, are
referred to herein as the “Securities”).

     3. The offer and sale of the
Units (the “Offering”) are being made pursuant to (1) the Company’s
effective Registration Statement including a base prospectus (the “Base
Prospectus”) on Form S-3 (File No. 333-170202) (which, together with all
amendments or supplements thereto is referred to herein as the
“Registration Statement”) filed by the Company with the U.S.
Securities and Exchange Commission (the “Commission”), (2) if applicable,
certain “free writing prospectuses” (as that term is defined in Rule 405 under
the U.S. Securities Act of 1933, as amended (the “Securities Act”)), that
have been or will be filed with the Commission and delivered to the Investor on
or prior to the date hereof (each, an “Issuer Free Writing Prospectus”),
and (3) a Prospectus Supplement (the “Prospectus Supplement” and together
with the Base Prospectus, the “Prospectus”) containing certain
supplemental information regarding the Units and the terms of the Offering that
has been or will be filed with the Commission and delivered to the Investor (or
made available to the Investor by the filing by the Company of an electronic
version thereof with the Commission).

     4. The Company and the Investor
agree that the Investor will purchase from the Company and the Company will
issue and sell to the Investor the Units set forth on the Signature Page hereto
for the aggregate purchase price set forth on the Signature Page. The Units
shall be purchased pursuant to the Additional Terms and Conditions for Purchase
of Units attached hereto as Annex II and incorporated herein by this
reference as if fully set forth herein. The Investor acknowledges that the
Offering is not being underwritten by the placement agent (the “Placement
Agent”) named in the Prospectus Supplement.

     5. The manner of settlement of
the Shares included in the Units purchased by the Investor shall be as
follows:

2

     Delivery by crediting the account
of the Investor’s prime broker (as specified by such Investor on Exhibit A
annexed hereto) with The Depository Trust Company (“DTC”) through its
Deposit/Withdrawal At Custodian (“DWAC”) system, whereby the Investor’s
prime broker shall initiate a DWAC transaction on the Closing Date using its DTC
participant identification number, and released by Computershare Trust Company,
N.A., the Company’s transfer agent (the “Transfer Agent”), to the
Investor at the Company’s direction. No later than one (1) business day after
the execution of this Subscription Agreement by the Investor and the Company,
the Investor shall:

	 	(I) 	
      DIRECT THE BROKER-DEALER AT WHICH THE ACCOUNT OR
      ACCOUNTS TO BE CREDITED WITH THE SHARES ARE MAINTAINED TO SET UP A DWAC
      INSTRUCTING THE TRANSFER AGENT TO CREDIT SUCH ACCOUNT OR ACCOUNTS WITH THE
      SHARES, AND

	 	 	 
	 	(II) 	
      REMIT BY WIRE TRANSFER THE AMOUNT OF FUNDS EQUAL TO
      THE AGGREGATE PURCHASE PRICE FOR THE UNITS BEING PURCHASED BY THE INVESTOR
      TO THE FOLLOWING ACCOUNT:

[Note: Wire instructions will be provided
separately.]

IT IS THE INVESTOR’S RESPONSIBILITY TO (A) MAKE THE
NECESSARY WIRE TRANSFER OR CONFIRM THE PROPER ACCOUNT
BALANCE IN A TIMELY MANNER AND (B) ARRANGE FOR SETTLEMENT
BY WAY OF DWAC IN A TIMELY MANNER. IF THE INVESTOR DOES NOT
DELIVER THE AGGREGATE PURCHASE PRICE FOR THE UNITS OR DOES
NOT MAKE PROPER ARRANGEMENTS FOR SETTLEMENT IN A TIMELY
MANNER, THE SHARES AND WARRANTS MAY NOT BE DELIVERED AT
CLOSING TO THE INVESTOR OR THE INVESTOR MAY BE EXCLUDED FROM
THE CLOSING ALTOGETHER. IF THE INVESTOR IS EXCLUDED FROM
THE CLOSING THEN ALL FUNDS FORWARDED TO THE COMPANY BY THE
INVESTOR WILL BE RETURNED WITHOUT INTEREST WITHIN ONE WEEK
AFTER THE CLOSING.

For purposes of this Subscription Agreement, “business
day” means any day which is not Saturday or Sunday or a legal holiday in the
City of New York, New York.

     6. The executed Warrants shall be
delivered in accordance with the terms thereof.

     7. The Investor represents that,
except as set forth below, (a) it has had no position, office or other material
relationship within the past three years with the Company or persons known to it
to be affiliates of the Company, (b) it is not a member of the Financial
Industry Regulatory Authority, Inc. 

(“FINRA”) or an Associated Person (as such term is
defined under the FINRA’s NASD Membership and Registration Rules Section 1011)
as of the Closing, and (c) neither the Investor nor any group of Investors (as
identified in a public filing made with the Commission) of which the Investor is
a part in connection with the Offering, acquired, or obtained the right to
acquire, twenty percent (20%) or more of the Common Shares (or securities
convertible into or exercisable for Common Shares) or the voting power of the
Company on a post-Closing basis. Exceptions: 

3

     (If no exceptions, write “none.”
If left blank, response will be deemed to be “none.”)

     8. The Investor represents that
it has received (or otherwise had made available to it by the filing by the
Company of an electronic version thereof with the Commission) the Base
Prospectus contained as part of the Company’s Registration Statement filed on
November 24, 2010 and declared effective on December 1, 2010, the documents
incorporated by reference therein and any Issuer Free Writing Prospectus
(collectively, the “Disclosure Package”), prior to or in connection with
the receipt of this Subscription Agreement.

     9. No offer by the Investor to
buy Units will be accepted and no part of the purchase price will be delivered
to the Company until the Investor has received the Disclosure Package and the
Company has accepted such offer by countersigning a copy of this Subscription
Agreement, and any such offer may be withdrawn or revoked, without obligation or
commitment of any kind, at any time prior to the Company (or the Placement Agent
on behalf of the Company) sending (orally, in writing or by electronic mail)
notice of its acceptance of such offer. An indication of interest will involve
no obligation or commitment of any kind until the Investor has been delivered
the Disclosure Package and this Subscription Agreement is accepted and
countersigned by or on behalf of the Company.

4

ANNEX II

ADDITIONAL TERMS AND CONDITIONS FOR PURCHASE OF UNITS

     1. Authorization and
Sale of the Units. Subject to the terms and conditions of this Subscription
Agreement, the Company has authorized the sale of the Units.

     2. Agreement to Sell and
Purchase the Units; Placement Agent.

               2.1
At the Closing (as defined in Section 3.1), the Company will sell to the
Investor, and the Investor will purchase from the Company, upon the terms and
conditions set forth herein, the number of Units set forth on the signature page
of the Subscription Agreement to which these Additional Terms and Conditions for
Purchase of Units are attached as Annex II (the “Signature Page”)
for the aggregate purchase price therefor set forth on the Signature Page.

               2.2
The Company proposes to enter into substantially this same form of Subscription
Agreement with each investor that was solicited (collectively, the “Other
Investors”) and expects to complete sales of Units to them. The Investor and
the Other Investors are hereinafter sometimes collectively referred to as the
“Investors”.

               2.3
The Investor acknowledges that the Company intends to pay Kuhns Brothers
Securities Corporation (the “Placement Agent”) a cash fee equal to 6.0%
of the gross proceeds received by the Company for the Offering.

               2.4
The Company confirms that neither it nor any other person acting on its behalf
has provided the Investor or their agents or counsel with any information that
constitutes or could reasonably be expected to constitute material, nonpublic
information, except as will be disclosed in the Prospectus and/or in any Current
Report on Form 8-K filed or to be filed by the Company with the Commission. The
Company understands and confirms that the Investor will rely on the foregoing
representations in effecting transactions in securities of the Company.

     3. Closings and Delivery
of the Units and Funds.

               3.1
Closing. The completion of the purchase and sale of the Units (the
“Closing”) will occur at a place and time (the “Closing Date”) to
be specified by the Company and the Placement Agent, and of which the Investors
will be notified in advance by the Placement Agent in accordance with Rule
15c6-l promulgated under the U.S. Securities Exchange Act of 1934, as amended
(the “Exchange Act”). Under Rule 15c6-1 under the Exchange Act, trades in
the secondary market generally are required to settle in three business days,
unless the parties to any such trade expressly agree otherwise. The Closing Date
may not occur within three business days of the execution of this Subscription
Agreement. Accordingly, Investors who wish to trade Shares on any day prior to
three business days before delivery should consult their own advisors and may be
required to specify alternative settlement arrangements to prevent a failed
settlement. At the Closing, (a) the Company shall cause the Transfer Agent to
deliver to the Investor the number of Shares set forth on the Signature Page
registered in the name of the Investor or, if so indicated on the Signature Page
in the name of a nominee designated by the Investor, (b) the Company shall cause
to be delivered to the Investor one Warrant Certificate representing the right
to purchase the number of Warrant Shares set forth on the Signature Page, and
(c) the aggregate purchase price for the Units being purchased by the Investor
will be delivered by or on behalf of the Investor to the Company.

5

               3.2
Conditions to the Obligations of the Parties. 

                         (a)
Conditions to the Company’s Obligations. The Company’s obligation to
issue and sell the Units to the Investor shall be subject to: (i) the receipt by
the Company of the aggregate purchase price for the Units being purchased
hereunder as set forth on the Signature Page; (ii) the accuracy of the
representations and warranties made by the Investor and the fulfillment of those
undertakings of the Investor to be fulfilled prior to the Closing Date; and
(iii) approval of the NYSE MKT LLC and the Toronto Stock Exchange (the
“TSX”) to list the Shares and Warrant Shares.

                         (b)
Conditions to the Investor’s Obligations. The Investor’s obligation to
purchase the Units will be subject to the accuracy of the representations and
warranties made by the Company and the fulfillment of those undertakings of the
Company to be fulfilled prior to the Closing Date. The Investor’s obligations
are expressly not conditioned on the purchase by any or all of the Other
Investors of the Units that they have agreed to purchase from the Company.

               3.3
Delivery of Funds. Delivery by Electronic Book-Entry at The Depository
Trust Company. No later than one (1) business day after the execution
of this Subscription Agreement by the Investor and the
Company, the Investor shall remit by wire transfer the amount of
funds equal to the aggregate purchase price for the Units being purchased by the
Investor to the following account designated by the Company:

                    
[Note: Wire instructions will be provided separately.]

               3.4
Delivery of Shares. Delivery by Electronic Book-Entry at The
Depository Trust Company. No later than one (1) business day after the
execution of this Subscription Agreement by the Investor
and the Company, the Investor shall direct the broker-dealer at
which the account or accounts to be credited with the Shares being purchased by
such Investor are maintained, which broker/dealer shall be a DTC participant, to
set up a DWAC instructing the Transfer Agent to credit such account or accounts
with the Shares. Such DWAC instruction shall indicate the settlement date for
the deposit of the Shares, which date shall be provided to the Investor by the
Placement Agent. Upon the closing of the Offering, the Company shall direct the
Transfer Agent to credit the Investor’s account or accounts with the Shares
pursuant to the information contained in the DWAC.

     4. Representations,
Warranties and Covenants of the Investor.

          The
Investor acknowledges, represents and warrants to, and agrees with, the Company
and the Placement Agent that: 

               4.1
The Investor (a) is knowledgeable, sophisticated and experienced in making, and
is qualified to make decisions with respect to, investments in securities
presenting an investment decision like that involved in the purchase of the
Units, including investments in securities issued by the Company and investments
in comparable companies, and has requested, received, reviewed and considered
all information it deemed relevant in making an informed decision to purchase
the Units, (b) the Investor has answered all questions on the Signature Page and
on Page 3 of this Subscription Agreement for use in preparation of the
Prospectus Supplement and the answers thereto are true and correct as of the
date hereof and will be true and correct as of the Closing Date and (c) the
Investor, in connection with its decision to purchase the number of Units set
forth on the Signature Page, is relying only upon the Disclosure Package and the
documents incorporated by reference therein.

               4.2
(a) Other than the Company’s application to the TSX to list the Shares and
Warrant Shares, no action has been or will be taken in any jurisdiction outside
the United States by the Company or the Placement Agent that would permit an
offering of the Securities, or possession or distribution of offering materials in connection with the issue
of the Securities, in any jurisdiction outside the United States where action
for that purpose is required, (b) the Investor will comply with all applicable
laws and regulations in each jurisdiction in which it purchases, offers, sells
or delivers Securities or has in its possession or distributes any offering
material, in all cases at its own expense, and (c) the Placement Agent is not
authorized to make and has not made any representation, disclosure or use of any
information in connection with the issue, placement, purchase and sale of the
Securities, except as set forth or incorporated by reference in the
Prospectus.

6

               4.3
(a) The Investor has full right, power, authority and capacity to enter into
this Subscription Agreement and to consummate the transactions contemplated
hereby and has taken all necessary action to authorize the execution, delivery
and performance of this Subscription Agreement, and (b) this Subscription
Agreement constitutes a valid and binding obligation of the Investor enforceable
against the Investor in accordance with its terms, except as enforceability may
be limited by applicable bankruptcy, insolvency, reorganization, moratorium or
similar laws affecting creditors’ and contracting parties’ rights generally and
except as enforceability may be subject to general principles of equity
(regardless of whether such enforceability is considered in a proceeding in
equity or at law) and except as to the enforceability of any rights to
indemnification or contribution that may be violative of the public policy
underlying any law, rule or regulation (including any federal or state
securities law, rule or regulation).

               4.4
The Investor understands that nothing in this Subscription Agreement, the
Prospectus, the Disclosure Package or any other materials presented to the
Investor in connection with the purchase and sale of the Units constitutes
legal, tax or investment advice. The Investor has consulted such legal, tax and
investment advisors and made such investigation as it, in its sole discretion,
has deemed necessary or appropriate in connection with its purchase of Units.
The Investor also understands that there is no established public trading market
for the Warrants being offered in the Offering, and that the Company does not
expect such a market to develop. In addition, the Company does not intend to
apply for listing of the Warrants on any securities exchange. The Investor
understands that without an active market, the liquidity of the Warrants will be
limited.

               4.5
The Investor will maintain the confidentiality of all information acquired as a
result of the transactions contemplated hereby prior to the public disclosure of
that information by the Company in accordance with Section 14 of this
Annex II.

               4.6
Since the time at which the Placement Agent first contacted such Investor about
the Offering, the Investor has not disclosed any information regarding the
Offering to any third parties (other than its legal, accounting and other
advisors in connection with the Offering) and has not engaged in any purchases
or sales of the securities of the Company (including, without limitation, any
Short Sales (as defined herein) involving the Company’s securities). The
Investor covenants that it will not engage in any purchases or sales of the
securities of the Company (including Short Sales) prior to the time that the
transactions contemplated by this Subscription Agreement are publicly disclosed.
The Investor agrees that it will not use any of the Securities acquired pursuant
to this Subscription Agreement to cover any short position in the Common Shares
if doing so would be in violation of applicable securities laws. For purposes
hereof, “Short Sales” include, without limitation, all “short sales” as defined
in Rule 200 promulgated under Regulation SHO under the Exchange Act, whether or
not against the box, and all types of direct and indirect share pledges, forward
sales contracts, options, puts, calls, short sales, swaps, “put equivalent
positions” (as defined in Rule 16a-1(h) under the Exchange Act) and similar
arrangements (including on a total return basis), and sales and other
transactions through non-U.S. broker dealers or foreign regulated brokers.

7

               4.7
The Investor represents and warrants that it is a resident of the jurisdiction
set out on the Signature Page of this Subscription Agreement, which
address is the residence, registered office or place of business of the
Investor, and that such Investor (i) is not a resident of Canada nor is it
purchasing the Units for the account or benefit of a Canadian resident; (ii) was
not offered the Units in Canada, and (iii) did not execute or deliver this
Subscription Agreement in Canada. In addition, the Investor understands and
acknowledges that (a) no securities commission or similar regulatory authority
in Canada has reviewed or passed on the merits of the Securities, (b) there is
no government or other insurance covering the Securities, (c) there are risks
associated with the purchase of the Securities, (d) there are restrictions on
the Investor’s ability to resell the Securities in Canada and it is the
responsibility of the Investor to find out what those restrictions are and to
comply with them before selling the Securities, and (e) the Securities will not
be freely tradeable in Canada for a period of four (4) months and one (1) day
from Closing, and as a result, the Securities may not be sold, transferred or
otherwise disposed of to a Canadian resident during this period, nor may the
Investor enter into any discussions, negotiations or agreements within Canada
with respect to the sale, transfer or disposition of any of the Securities for a
period of four (4) months and one (1) day from Closing.

               4.8
The Investor agrees that at no time within four (4) months and one (1) day after
the Closing Date will it (i) sell, transfer or otherwise dispose of any
Securities to a Canadian resident or, (ii) enter into any discussions,
negotiations or agreements within Canada with respect to the sale, transfer or
disposition of any Securities. 

     5. Representations,
Warranties and Covenants of the Company.

         The Company
represents and warrants to, and agrees with, the Investor that: 

               5.1
The Company and each of its subsidiaries is an entity duly incorporated or
otherwise organized, validly existing and in good standing under the laws of the
jurisdiction of its incorporation or organization, with the requisite power and
authority to own and use its properties and assets and to carry on its business
as currently conducted and as described in the Disclosure Package. Neither the
Company nor any of its subsidiaries is in violation or default of any of the
provisions of its respective certificate or articles of incorporation, bylaws or
other organizational or charter documents. The Company and each of its
subsidiaries is duly qualified to conduct business and is in good standing as a
foreign corporation or other entity in each jurisdiction in which the nature of
the business conducted or property owned by it makes such qualification
necessary and no proceeding has been instituted in any such jurisdiction
revoking, limiting or curtailing or seeking to revoke, limit or curtail such
power and authority or qualification.

               5.2
Neither the Company nor any of its subsidiaries is a party to any actions, suits
or proceedings which could materially affect its business or financial
condition, and no such actions, suits or proceedings have been threatened or, to
the Company’s knowledge, are pending, except as disclosed in the Disclosure
Package.

               5.3
The Company is the beneficial owner of the properties, business and assets or
the interests in the properties, business and assets disclosed in the Disclosure
Package, all material agreements by which the Company holds an interest in a
property, business or asset are in good standing according to their terms except
as disclosed in the Disclosure Package or where any such default would not have
a material adverse effect on the Company, and there has not been any breach of
the applicable laws of the jurisdictions in which such properties, business and
assets are situated which would have a material adverse effect on such
properties, business and assets.

8

               5.4
The Company has the requisite corporate power and authority to enter into and to
consummate the transactions contemplated by this Subscription Agreement and
otherwise to carry out its obligations hereunder. The execution and delivery of this
Subscription Agreement by the Company and the consummation by it of the
transactions contemplated hereby have been duly authorized by all necessary
action on the part of the Company and no further action is required by the
Company, the Company’s Board of Directors or the Company’s shareholders in
connection therewith. This Subscription Agreement has been (or upon delivery
will have been) duly executed by the Company and, when delivered in accordance
with the terms hereof, will constitute the valid and binding obligation of the
Company enforceable against the Company in accordance with its terms.

               5.5
The execution, delivery and performance by the Company of this Subscription
Agreement, the issuance and sale of the Units to the Investor and the
consummation by it of the transactions contemplated hereby will not (i) conflict
with or violate any provision of the Company’s or any subsidiary’s certificate
or articles of incorporation, bylaws or other organizational or charter
documents, or (ii) result in the creation of any lien upon any of the properties
or assets of the Company or any subsidiary, or give to others any rights of
termination, amendment, acceleration or cancellation (with or without notice,
lapse of time or both) of or conflict with, or constitute a default (or an event
that with notice or lapse of time or both would become a default) under, any
agreement, credit facility, debt or other instrument (evidencing a Company or
subsidiary debt or otherwise) or other understanding to which the Company or any
subsidiary is a party or by which any property or asset of the Company or any
subsidiary is bound or affected, or (iii) conflict with or result in a violation
of any law, rule, regulation, order, judgment, injunction, decree or other
restriction of any court or governmental authority to which the Company or a
subsidiary is subject (including federal and state securities laws and
regulations), or by which any property or asset of the Company or a subsidiary
is bound or affected.

               5.6
The Company has properly prepared and filed all tax returns and all taxes
payable have been paid except where the Company is contesting in good faith any
re-assessments of its taxes payable thereunder.

               5.7
Except as disclosed in the Disclosure Package and except for options granted in
the ordinary course under the Company’s stock option and incentive plans, there
are no outstanding options, warrants or other securities exercisable to purchase
or convertible or exchangeable into Common Shares.

               5.8
The Company is not required to obtain any consent, waiver, authorization or
order of, give any notice to, or make any filing or registration with, any court
or other federal, state, local or other governmental authority or any other
person or entity (including, without limitation, any shareholder of the
Company), in connection with the execution, delivery and performance by the
Company of this Subscription Agreement and the consummation of the transactions
contemplated hereby, including the sale and issuance of the Units to the
Investor, other than the approval of the Toronto Stock Exchange and the NYSE MKT
LLC and the filing with the Commission of the Prospectus Supplement, or such
other consents or various waivers which have already been obtained.

               5.9
The Shares are duly authorized and, when issued and paid for in accordance with
this Subscription Agreement, will be duly and validly issued, fully paid and
non-assessable, free and clear of all liens. Upon the Closing, the Warrant
Shares will have been duly allotted and reserved for issuance and, when issued
upon the due exercise of the Warrants, will be duly issued as fully paid and
non-assessable Common Shares. The Company has reserved from its duly authorized
capital the maximum number of Common Shares issuable pursuant to this
Subscription Agreement. The Registration Statement conforms with the
requirements of the Securities Act, including the Base Prospectus, and such
amendments and supplements thereto as may have been required as of the date of
this Subscription Agreement. The Registration Statement is effective in respect
of the Units under the Securities Act and no stop order preventing or suspending
the effectiveness of the Registration Statement or suspending or preventing the use of the Prospectus has been issued by the
Commission and no proceedings for that purpose have been instituted or, to the
knowledge of the Company, are threatened by the Commission. The Company has
filed or will file the Prospectus Supplement with the Commission within the time
required by the rules and regulations of the Commission. At the time the
Registration Statement and any amendments thereto became effective and at the
date of this Subscription Agreement, the Registration Statement (including
documents incorporated by reference therein) and any amendments thereto filed as
of the applicable time, conformed and will conform in all material respects to
the requirements of the Securities Act and did not and will not contain any
untrue statement of a material fact or omit to state any material fact required
to be stated therein or necessary to make the statements therein not misleading;
and the Prospectus (including any documents incorporated by reference therein)
and any amendments or supplements thereto, at the time the Prospectus or any
amendment or supplement thereto was issued and at the Closing Date, conformed
and will conform in all material respects to the requirements of the Securities
Act and did not and will not contain any untrue statement of any material fact
or omit to state a material fact necessary in order to make the statements
therein, in light of the circumstances under which they were made, not
misleading.

9

               5.10
The Company has filed all reports, schedules, forms, statements and other
documents required to be filed by the Company under the Exchange Act, including
pursuant to Section 13(a) or 15(d) thereof, for the two years preceding the date
hereof (the foregoing materials, including the exhibits thereto and documents
incorporated by reference therein, together with the Prospectus and any
Prospectus Supplement, being collectively referred to herein as the “SEC
Reports”). The financial statements of the Company included in the SEC
Reports comply in all material respects with applicable accounting requirements
and the rules and regulations of the Commission with respect thereto as in
effect at the time of filing. Such financial statements have been prepared in
accordance with United States generally accepted accounting principles applied
on a consistent basis during the periods involved (“GAAP”), except as may
be otherwise specified in such financial statements or the notes thereto and
except to the extent that unaudited financial statements may not contain all
footnotes required by GAAP, and such statements fairly present in all material
respects the financial position of the Company on a consolidated basis as of and
for the dates thereof and the results of operations and cash flows for the
periods then ended, subject, in the case of unaudited statements, to normal,
immaterial, year-end audit adjustments.

               5.11
The Common Shares are registered pursuant to Section 12(b) of the Exchange Act,
and the Company has taken no action designed to, or that to its knowledge is
likely to have the effect of, terminating the registration of the Common Shares
under the Exchange Act nor has the Company received any notification that the
Commission is contemplating terminating such registration. The Common Shares are
listed on the Toronto Stock Exchange under the symbol “GTH” and NYSE MKT LLC
under the symbol “HTM”.

               5.12
The Company and the Company’s Board of Directors have taken all necessary
action, if any, in order to render inapplicable any control share acquisition,
business combination, poison pill (including any distribution under a rights
agreement) or other similar anti-takeover provision under the Company’s
certificate of incorporation (or similar charter documents) or the laws of its
jurisdiction of incorporation that is or could become applicable to the Investor
as a result of the transactions contemplated hereby and the Company and the
Investor fulfilling their obligations or exercising their rights under this
Subscription Agreement, including, without limitation, as a result of the
Company’s issuance of the Units and the Investor’s ownership of the Units.

               5.13
The Company acknowledges and agrees that the Investor is acting solely in the
capacity of an arm’s length purchaser with respect to this Subscription
Agreement and the transactions contemplated hereby. The Company further
acknowledges that the Investor is not acting as a financial advisor or fiduciary of the Company (or in any similar
capacity) with respect to this Subscription Agreement and the transactions
contemplated hereby and any advice given by the Investor or any of its
representatives or agents in connection with this Subscription Agreement and the
transactions contemplated hereby is merely incidental to the Investor’s purchase
of the Units. The Company further represents to the Investor that the Company’s
decision to enter into this Subscription Agreement has been based solely on the
independent evaluation of the transactions contemplated hereby by the Company
and its representatives.

10

               5.14
The Company has not, and to its knowledge no one acting on its behalf has,
taken, directly or indirectly, any action designed to cause or to result in the
stabilization or manipulation of the price of any security of the Company to
facilitate the sale or resale of any of the Shares.

     6. Survival of
Representations, Warranties and Agreements. Notwithstanding any
investigation made by any party to this Subscription Agreement or by the
Placement Agent, all covenants, agreements, representations and warranties made
by the Company and the Investor herein will survive the execution of this
Subscription Agreement, the delivery to the Investor of the Shares and Warrants
being purchased and the payment therefor. The Placement Agent shall be a third
party beneficiary with respect to the representations, warranties and agreements
of the Investor in Section 4 hereof.

     7. Notices. All
notices, requests, consents and other communications hereunder will be in
writing, will be mailed (a) if within the domestic United States by first-class
registered or certified airmail, or nationally recognized overnight express
courier, postage prepaid, or by facsimile or (b) if delivered from outside the
United States, by International Federal Express or facsimile, and will be deemed
given (i) if delivered by first-class registered or certified mail domestic,
three business days after so mailed, (ii) if delivered by nationally recognized
overnight carrier, one business day after so mailed, (iii) if delivered by
International Federal Express, two business days after so mailed and (iv) if
delivered by facsimile, upon electronic confirmation of receipt and will be
delivered and addressed as follows:

if to the Company, to:

U.S. Geothermal Inc. 
1505 Tyrell
Lane 
Boise, Idaho 83706 
Attention: Daniel J Kunz, Chief Executive
Officer 
Facsimile: (208) 424-1030

with copies to:

Dorsey & Whitney LLP 
Columbia
Center 
701 Fifth Avenue, Suite 6100 
Seattle, Washington 98104

Attention: Christopher J. Barry

                  
Kimberley R. Anderson 
Facsimile: (206) 903-8820

if to the Investor, at its address on
the Signature Page hereto, or at such other address or addresses as may have
been furnished to the Company in writing.

     8. Changes. This
Subscription Agreement may not be modified or amended except pursuant to an instrument in writing signed by the Company and the
Investor.

11

     9. Headings. The
headings of the various sections of this Subscription Agreement have been
inserted for convenience of reference only and will not be deemed to be part of
this Subscription Agreement.

     10. Severability.
In case any provision contained in this Subscription Agreement should be
invalid, illegal or unenforceable in any respect, the validity, legality and
enforceability of the remaining provisions contained herein will not in any way
be affected or impaired thereby.

     11. Governing Law.
This Subscription Agreement will be governed by, and construed in accordance
with, the internal laws of the State of New York, without giving effect to the
principles of conflicts of law that would require the application of the laws of
any other jurisdiction.

     12. Counterparts.
This Subscription Agreement may be executed in two or more counterparts,
each of which will constitute an original, but all of which, when taken
together, will constitute but one instrument, and will become effective when one
or more counterparts have been signed by each party hereto and delivered to the
other parties. The Company and the Investor acknowledge and agree that the
Company shall deliver its counterpart to the Investor along with the Prospectus
Supplement (or the filing by the Company of an electronic version thereof with
the Commission).

     13. Confirmation of
Sale. The Investor acknowledges and agrees that such Investor’s receipt of
the Company’s signed counterpart to this Subscription Agreement, together with
the Prospectus Supplement (or the filing by the Company of an electronic version
thereof with the Commission) shall constitute written confirmation of the
Company’s sale of Units to such Investor.

     14. Press Release.
The Company and the Investor agree that the Company shall (a) prior to the
opening of the financial markets in New York City on the business day
immediately after the date hereof or as soon thereafter as possible issue a
press release announcing the Offering and disclosing all material information
regarding the Offering and (b) as promptly as practicable thereafter, file a
Current Report on Form 8-K with the Commission including, but not limited to, a
form of this Subscription Agreement and a form of the Warrant Certificate.

12

EXHIBIT A

U.S. GEOTHERMAL INC.

FORM OF WARRANT CERTIFICATE

(See attached)

U.S. GEOTHERMAL INC.

	NO. • 	• WARRANTS 

Date of Issuance: December [•], 2012 (the “Issuance
Date”)

COMMON SHARE PURCHASE WARRANTS

THIS IS TO CERTIFY THAT for value received [•], the
registered holder hereof or its permitted assigns (the “Holder”), is
entitled, subject to the terms set forth below, for each whole warrant
represented by this certificate (this “Warrant Certificate”) to purchase,
at any time or times on or after the Issuance Date up to and including 5:00 p.m.
(New York time) on December [•], 2017 (the “Time of Expiry”), one fully
paid and non-assessable common share (“Common Share”) in the capital of
U.S. Geothermal Inc. (the “Company”) (such common share, a “Warrant
Share” and collectively, the “Warrant Shares”) at a price per share
of US$0.50 (the “Exercise Price”), subject to adjustment as hereinafter
referred to. The warrants represented by this Warrant Certificate are the
warrants to purchase Common Shares (the “Warrants”) issued pursuant to
(i) that certain Subscription Agreement, dated as of December [•], 2012, by
and between the Company and the Holder (the “Subscription Agreement”) and
(ii) the Company’s Registration Statement on Form S-3 (File number 333-170202)
including the exhibits thereto, as amended at the date of this Warrant
Certificate, the Prospectus contained therein filed with the Securities and
Exchange Commission (the “Commission”), effective December 1, 2010, and a
Prospectus Supplement containing certain supplemental information regarding the
securities sold pursuant to the Subscription Agreement that has been or will be
filed with the Commission.

1.   Exercise of Warrants.

1.1 Election to Purchase.

     The rights evidenced by this
Warrant Certificate may be exercised by the Holder on any day on or after the
Issuance Date, in whole or in part, up to and including the Time of Expiry in
accordance with the provisions hereof. The exercise may be effected by providing
to the Company at 1505 Tyrell Lane, Boise, Idaho 83706 (or such other address as
may be notified in writing by the Company) (i) this Warrant Certificate and a
duly completed and executed Subscription Form in substantially the form attached
as Exhibit “1” hereto (“Subscription Form”) and (ii) (A) payment of the
Exercise Price by a certified cheque, bank draft or money order payable at par
to the order of the Company, or by wire or electronic funds transfer to an
account designated by the Company, in each case in the amount of the aggregate
Exercise Price for the number of Warrant Shares specified in the Subscription
Form (the “Aggregate Exercise Price”) or (B) provided the conditions for
cashless exercise set forth in Section 1.5 are satisfied, by notifying the
Company that the Warrants are being exercised pursuant to a Cashless Exercise
(as defined in Section 1.5) . A duly completed and executed Subscription Form
shall be deemed to be delivered only upon personal delivery thereof to, or if
sent by mail or other means of transmission upon actual receipt thereof by, the
Company. If the Holder subscribes for a lesser number of Common Shares than may
be subscribed for pursuant to this Warrant Certificate, the Holder shall be
entitled to receive, without charge to the Holder, a new warrant certificate in
respect of the balance of the Warrants referred to in any
surrendered warrant certificate but not exercised pursuant to the Subscription
Form. On or before the first (1st) business day following the date on
which the Company has received each of this Warrant Certificate, the duly
completed and executed Subscription Form and the Aggregate Exercise Price (or
notice of a Cashless Exercise) (collectively, the “Exercise Delivery
Documents”), the Company shall transmit by facsimile or electronic mail an
acknowledgment of confirmation of receipt of the Exercise Delivery Documents to
the Holder and to the Company’s transfer agent (the “Transfer Agent”).
For purposes of this Warrant Certificate, “business day” means any day
which is not Saturday or Sunday or a legal holiday in the City of New York, New
York.

- 2 -

1.2 Exercise.

      The Company shall, as soon as
possible following the date of receipt of the Exercise Delivery Documents (the
“Exercise Date”) and in accordance with Section 1.3, issue as of the
Exercise Date that number of Warrant Shares specified in the Subscription Form
as fully paid and non-assessable Common Shares in the capital of the Company.
The Company shall pay any and all transfer taxes which may be payable with
respect to the issuance and delivery of Warrant Shares upon exercise of the
Warrants.

1.3 Share Delivery.

      As promptly as practicable after
the Exercise Date and, in any event, within three (3) business days of the
Exercise Date (the “Share Delivery Date”), the Company shall, (i) credit
such aggregate number of Warrant Shares to which the Holder is entitled pursuant
to such exercise to the Holder’s or its designee’s balance account with The
Depository Trust Company (“DTC”) through its Deposit/Withdrawal At
Custodian system, or (ii) issue and dispatch by overnight courier to the address
as specified in the Subscription Form, or, if not so specified in the
Subscription Form, cause to be held for collection by the Holder at the address
of the Company as set out in subsection 1.1 (or at such additional place as may
be decided by the Company from time to time and notified to the Holder),
certificates, registered in the Company’s share register in the name of the
Holder or its designee, for the number of Warrant Shares to which the Holder is
entitled pursuant to such exercise. Subject to applicable laws, upon delivery of
the Exercise Delivery Documents, the Holder or its designee, as applicable,
shall be deemed for all corporate purposes to have become the holder of record
of the Warrant Shares with respect to which the Warrants have been exercised,
irrespective of the date such Warrant Shares are credited to the Holder’s or its
designee’s DTC account or the date of delivery of the certificates evidencing
such Warrant Shares, as the case may be.

1.4 Company’s Failure to Timely Deliver Securities.

       If, upon the Holder’s
exercise of the Warrants, the Company shall fail for any reason or for no
reason, within three (3) trading days of receipt of the Exercise Delivery
Documents in compliance with the terms of this Section 1, to issue to the
Holder a certificate for the number of Warrant Shares to which the Holder is
entitled and register such Warrant Shares on the Company’s share register, or to
credit the Holder’s balance account with DTC for such number of Warrant Shares
to which the Holder is entitled, and if on or after such third (3rd)
business day the Holder purchases (in an open market transaction or otherwise)
Common Shares to deliver in satisfaction of a sale by the Holder of Warrant Shares issuable
upon such exercise that the Holder anticipated receiving from the Company (a
“Buy-In”), then the Company shall, within three (3) business days after
the Holder’s written request and in the Holder’s discretion, either (i) pay cash
to the Holder in an amount equal to the Holder’s total purchase price (including
brokerage commissions, if any) for the Common Shares so purchased (the
“Buy-In Price”), at which point the Company’s obligation to deliver such
certificate or to credit such balance account (and to issue such Warrant Shares)
shall terminate, or (ii) promptly honor its obligation to deliver to the Holder
a certificate or certificates representing such Warrant Shares, or to credit the
Holder’s balance account with DTC for such Warrant Shares, and pay cash to the
Holder in an amount equal to the excess (if any) of the Buy-In Price over the
product of (A) such number of Common Shares, times (B) the Closing Bid Price (as
defined below) on the date of exercise.

- 3 -

     As used in this Warrant
Certificate, “Closing Bid Price” means, for any security as of any date,
the last closing bid price for such security on the Principal Market (as defined
in Section 2.1), as reported by Bloomberg, or, if the Principal Market begins to
operate on an extended hours basis and does not designate the closing bid price,
then the last bid price of such security prior to 4:00:00 p.m., New York Time,
as reported by Bloomberg, or, if the Principal Market is not the principal
securities exchange or trading market for such security, the last closing bid
price or last trade price, respectively, of such security on the principal
securities exchange or trading market where such security is listed or traded as
reported by Bloomberg, or if the foregoing do not apply, the average of the bid
prices, or the ask prices, respectively, of any market makers for such security
as reported in the “pink sheets” by OTC Pink (formerly the National Quotation
Bureau, Inc.). If the Closing Bid Price cannot be calculated for a security on a
particular date on any of the foregoing bases, the Closing Bid Price of such
security on such date shall be the fair market value as mutually determined by
the Company and the Holder. All such determinations to be appropriately adjusted
for any share dividend, share split, share combination or other similar
transaction during the applicable calculation period. 

1.5 Cashless Exercise Under Certain Circumstances. 

      Notwithstanding anything
contained herein to the contrary, if, at any time following the Issuance Date, a
registration statement under the United States Securities Act of 1933, as
amended, including any amendments or supplements thereto, registering the
Warrant Shares (a “Registration Statement”) is not effective thereunder,
prior to the Time of Expiry, and for so long as a Registration Statement is not
effective, any holder of any Warrant must exercise the Warrants in whole or in
part on a “cashless basis” and, in lieu of making the cash payment otherwise
contemplated to be made to the Company upon such exercise in payment of the
Aggregate Exercise Price, receive upon such exercise the “Net Number” of Warrant
Shares determined according to the following formula (a “Cashless
Exercise”):

Net Number = (A x B) - (A x
C) 
                                     
B

For purposes of the foregoing
formula:

A = the total number of Warrant Shares
with respect to which the Warrants are then being exercised.

- 4 -

B = the Weighted Average Price (as
defined below) of the Common Shares (as reported by Bloomberg) for the five
consecutive trading days ending on the date immediately preceding the Exercise
Date.

C = the Exercise Price then in effect
for the applicable Warrant Shares at the time of such exercise.

     As used in this Warrant
Certificate, “Weighted Average Price” means, for any security as of any
date, the dollar volume-weighted average price for such security on the
Principal Market during the period beginning at 9:30:01 a.m., New York City
time, and ending at 4:00:00 p.m., New York City time, as reported by Bloomberg
through its “Volume at Price” function or, if the foregoing does not apply, the
dollar volume-weighted average price of such security in the over-the-counter
market on the electronic bulletin board for such security during the period
beginning at 9:30:01 a.m., New York City time, and ending at 4:00:00 p.m., New
York City time, as reported by Bloomberg, or, if no dollar volume-weighted
average price is reported for such security by Bloomberg for such hours, the
average of the highest closing bid price and the lowest closing ask price of any
of the market makers for such security as reported in the “pink sheets” by OTC
Pink. If the Weighted Average Price cannot be calculated for such security on
such date on any of the foregoing bases, the Weighted Average Price of such
security on such date shall be the fair market value as mutually determined by
the Company and the Holder. All such determinations shall be appropriately
adjusted for any share dividend, share split or other similar transaction during
such period.

     For the avoidance of doubt, in
the event that these Warrants may not be exercised for cash pursuant to Section
1.1 hereof due to the lack of a then effective and current Registration
Statement registering the Warrant Shares with the Commission and an exemption
from registration or qualification under applicable federal and state securities
laws is not otherwise available for such exercise, the sole method of exercise
available to a Holder shall be a “cashless exercise” pursuant to Section 1.5
hereof. Notwithstanding anything contained herein to the contrary, in no event
shall the Holder be entitled to demand a “net cash settlement” of these
Warrants. 

1.6 Beneficial Ownership.

      The Company shall not effect the
exercise of the Warrants, and the Holder shall not have the right to exercise
the Warrants, to the extent that after giving effect to such exercise, such
person (together with such person’s affiliates (as such term is defined in the
Securities Exchange Act of 1934, as amended (the “Exchange Act”))) would
beneficially own in excess of 9.99% of the Common Shares outstanding immediately
after giving effect to such exercise. For purposes of the foregoing sentence,
the aggregate number of Common Shares beneficially owned by such person and its
affiliates shall include the number of Warrant Shares issuable upon exercise of
the Warrants with respect to which the determination of such sentence is being
made, but shall exclude Warrant Shares which would be issuable upon (i) exercise
of the remaining, unexercised portion of the Warrants beneficially owned by such
person and its affiliates and (ii) exercise or conversion of the unexercised or
unconverted portion of any other securities of the Company beneficially owned by
such person and its affiliates (including, without limitation, any convertible
notes or convertible preferred shares or warrants) subject to a limitation on
conversion or exercise analogous to the limitation contained
herein. Except as set forth in the preceding sentence, for purposes of this
paragraph, beneficial ownership shall be calculated in accordance with Section
13(d) of the Exchange Act. For purposes of this Warrant Certificate, in
determining the number of outstanding Common Shares, the Holder may rely on the
number of outstanding Common Shares as reflected in the most recent of (1) the
Company’s most recent Annual Report on Form 10-K, the Company’s most recent
Quarterly Report on Form 10-Q, or other public filing by the Company with the
Commission, as the case may be, (2) a more recent public announcement by the
Company, or (3) any other notice by the Company or the Transfer Agent setting
forth the number of Common Shares outstanding. In any case, the number of
outstanding Common Shares shall be determined after giving effect to the
conversion or exercise of securities of the Company, including the Warrants, by
the Holder and its affiliates since the date as of which such number of
outstanding Common Shares was reported. The provisions of this paragraph shall
be construed, corrected and implemented in a manner so as to effectuate the
intended beneficial ownership limitation herein contained.

- 5 -

1.7 Fractional Warrant Share.

      Fractional Warrant Shares shall
not be issued upon the exercise of any Warrants. As to any fraction of a share
which the Holder would otherwise be entitled to purchase upon such exercise, the
Company shall, at its election, either pay a cash adjustment in respect of such
final fraction in an amount equal to such fraction multiplied by the Exercise
Price or round up to the next whole Warrant Share.

2.   Anti-Dilution Protection.

2.1 Definitions.

      For the purposes of Section 2
the words and terms defined below shall have the respective meanings specified
therefor in this subsection 2.1:

	 	(i) 	
      “Adjustment Period” means the period commencing on
      the Issuance Date and ending at the Time of Expiry;

	 	 	 
	 	(ii) 	
      “Current Market Price per Common Share”, at any
      date, means the volume weighted average price per Common Share at which
      the Common Shares have traded (each, a “Trading Day”) on the NYSE
      MKT LLC (or if the Common Shares are not then listed on the NYSE MKT LLC,
      the recognized stock exchange on which the Common Shares are listed on
      which the greatest volume of Common Shares were traded during the period
      referenced below or, if the Common Shares are not so listed on any
      recognized stock exchange, then on the over-the-counter market on which
      the Common Shares are traded as selected by action of the directors acting
      reasonably for such purpose) (the “Principal Market”), during the
      five (5) most recent Trading Days ending on the third Trading Day before
      such date on which there has occurred at least one trade of at least one
      board lot of Common Shares prior to such date, such weighted average price
      to be determined by dividing the aggregate sale price of all Common
      Shares sold in board lots on such exchange or market, as the
      case may be, during the said five (5) Trading Days, by the number of
  Common Shares so sold;

- 6 -

	 	(iii) 	
      “Dividends Paid in the Ordinary Course” means any
      dividend declared payable on the Common Shares (whether in cash,
      securities, property or assets) in any fiscal year of the Company to the
      extent that such dividends do not exceed, in the aggregate, the greater
      of: (i) the aggregate value of dividends declared payable by the Company
      on the Common Shares in its immediately preceding fiscal year; (ii) the
      arithmetic mean of the aggregate value of dividends declared payable by
      the Company on the Common Shares in its three immediately preceding fiscal
      years; and (iii) 100% of the aggregate consolidated net income of the
      Company, before extraordinary items, for its immediately preceding fiscal
      year (such consolidated net income to be computed in accordance with
      United States generally accepted accounting principles);

	 	 	 
	 	(iv) 	
      “director” means a director of the Company for the
      time being and reference herein to an “action by the directors”
      means an action by the directors of the Company as a board or, whenever
      duly empowered, an action by a committee of directors;

	 	 	 
	 	(v) 	
      “recognized stock exchange” means a stock exchange
      or quotation system recognized by the Commission; and

	 	 	 
	 	(vi) 	
      “TSX” means the Toronto Stock
  Exchange.

2.2 Adjustments.

      The Exercise Price and the
number of Warrant Shares shall, while any Warrants are still outstanding and
unexercised, be subject to adjustment from time to time upon the occurrence of
any of the events and in the manner provided as follows:

	 	(a) 	
      If and whenever during the Adjustment Period, the Company
      shall:

	 	 	 	 
	 		(i) 	
      declare a dividend or make a distribution on its Common
      Shares payable in Common Shares (or securities exchangeable for or
      convertible into Common Shares), other than Dividends Paid in the Ordinary
      Course; or

	 	 	 	 
	 		(ii) 	
      subdivide or change its outstanding Common Shares into a
      greater number of Common Shares; or

	 	 	 	 
	 		(iii) 	
      reduce, combine or consolidate its outstanding Common
      Shares into a lesser number or Common Shares,

(any of such events in paragraphs (i),
(ii) or (iii) above being called a “Share Reorganization”), then
effective immediately after the record date or effective date, as the case may
be, at which the holders of Common Shares are determined for the purposes of the
Share Reorganization, the Exercise Price shall be adjusted to a price determined by multiplying the applicable
      Exercise Price in effect on such effective date or record date by a
      fraction, the numerator of which shall be the number of Common Shares
      outstanding on such effective date or record date before giving effect to
      such Share Reorganization and the denominator of which shall be the number
      of Common Shares outstanding immediately after giving effect to such Share
      Reorganization (including, in the case where securities exchangeable for
      or convertible into Common Shares are distributed, the number of
      additional Common Shares that would have been outstanding had such
      securities been exchanged for or converted into Common Shares immediately
after giving effect to such Share Reorganization).

- 7 -

	 	(b) 	
      If and whenever during the Adjustment Period the Company
      shall fix a record date for the payment, issue or distribution to all or
      substantially all of the holders of the Common Shares of (i) a dividend,
      (ii) cash or assets (including evidences of the Company’s indebtedness),
      or (iii) rights or other securities (including without limitation,
      securities convertible into or exchangeable for Common Shares), and such
      payment, issue or distribution does not constitute a Dividend Paid in the
      Ordinary Course or a Share Reorganization (any of such non-excluded events
      being herein called a “Special Distribution”), the Exercise Price
      shall be adjusted as determined by action of the directors (whose
      determination shall be conclusive) effective immediately after such record
      date by an amount that is no greater than the difference between (x) the
      volume weighted average trading price of the Common Shares on the
      Principal Market for the five (5) most recent Trading Days ending
      immediately prior to the Trading Day the Common Shares begin trading on an
      “ex-distribution” basis, and (y) the volume weighted average trading price
      of the Common Shares on the Principal Market for the five (5) most recent
      Trading Days beginning immediately after the Trading Day the Common Shares
      commence trading on an “ex-distribution” basis.

	 	 	 
	 		
      Such adjustment shall be made successively whenever such
      a record date is fixed. To the extent that such payment, issuance or
      distribution is not so made or any rights, options or warrants so
      distributed are not exercised, the Exercise Price shall be readjusted
      effective immediately to the Exercise Price which would then be in effect
      based upon such payment, issuance or distribution actually made, or based
      on the Common Shares or securities exchangeable or convertible for Common
      Shares actually delivered upon the exercise of any rights, options or
      warrants as the case may be but subject to any other adjustment required
  hereunder by reason of any event arising after the record date.

- 8 -

	 	(c) 	If and whenever at any time during the Adjustment Period
      there shall be a reorganization, reclassification or other change of
      Common Shares at any time outstanding or change of the Common Shares into
      other shares or into other securities (other than a Share Reorganization),
      or a consolidation, amalgamation, arrangement or merger of the Company
      with or into any other company or other entity, or a transfer of all or
      substantially all of the undertaking or assets of the Company to another
      company or entity, in each case in which the holders
      of Common Shares are entitled to receive shares, other
      securities or property, including cash, (any of such events being herein
      called a “Capital Reorganization”), any Holder who exercises his
      right to subscribe for and purchase Warrant Shares pursuant to the
      exercise of the Warrants after the effective date of such Capital
      Reorganization shall be entitled to receive, and shall accept for the same
      aggregate consideration in lieu of the number of Warrant Shares to which
      such Holder was theretofore entitled upon such exercise, the aggregate
      number of shares, other securities or other property, including cash,
      which such Holder would have received as a result of such Capital
      Reorganization had he exercised his right to acquire Warrant Shares
      immediately prior to the effective date or record date, as the case may
      be, of the Capital Reorganization and had he been the holder of such
      Warrant Shares on such effective date or record date, as the case may be,
      subject to adjustment thereafter in accordance with provisions the same,
      as nearly as may be possible, as those contained in subsection 2.2(b). If
      determined appropriate by the directors, acting reasonably, and subject to
      any required prior approval of the NYSE MKT LLC, TSX and any other stock
      exchange or market on which the Common Shares may be listed or traded,
      appropriate adjustments shall be made as a result of any such Capital
      Reorganization in the application of the provisions set forth in this
      subsection 2.2, with respect to the rights and interests thereafter of a
      Holder to the end that the provisions set forth in this subsection 2.2
      shall thereafter correspondingly be made applicable as nearly as may
      reasonably be in relation to any shares, other securities or other
      property, including cash, thereafter deliverable upon the exercise of any
      Warrant. Any such adjustments shall be made by and set forth in an
      agreement supplemental hereto approved by action by the directors, acting
      reasonably, and shall for all purposes be conclusively deemed to be
      appropriate adjustments.

	 	(d) 	
      If and whenever at any time during the Adjustment Period
      there shall occur a Share Reorganization which results in an adjustment to
      the Exercise Price pursuant to subsection 2.2(a), the number of Warrants
      Shares purchaseable (at the adjusted Exercise Price) shall be adjusted
      contemporaneously with the adjustment of the Exercise Price by multiplying
      the number of Warrant Shares theretofore purchaseable on the exercise
      thereof by a fraction, the numerator of which shall be the applicable
      Exercise Price in effect immediately prior to such adjustment and the
      denominator of which shall be the applicable Exercise Price resulting from
      such adjustment.

	 	 	 
	 	(e) 	
      In case the Company during the Adjustment Period shall
      take any action affecting the Common Shares, other than action described
      above in this subsection 2.2 which in the opinion of the directors, acting
      reasonably, would materially adversely affect the rights of the Holder,
      the Exercise Price or the number of Warrant Shares shall be adjusted in
      such manner, if any, and at such time, by action by the directors, acting
      reasonably, as they may determine to be equitable in the circumstances,
      but subject in all cases to any necessary regulatory
  approval.

- 9 -

2.3 Rules.

      For the purposes of subsection
2.2 hereof, any adjustment shall be made successively whenever an event referred
to therein shall occur, subject to the following provisions:

	 	(a) 	
      subject to subsection 2.3(b), as to any fraction of a
      Common Share which the Holder would otherwise be entitled upon the
      occurrence of the adjustment(s) described above, the Company shall, at its
      election, either pay a cash adjustment in respect of such final fraction
      in an amount equal to such fraction multiplied by the then applicable
      Exercise Price or round up to the next whole share;

	 	 	 	 
	 	(b) 	
      no adjustment to an Exercise Price shall be required
      unless such adjustment would result in a change of at least 1% in the
      prevailing Exercise Price and no adjustment in the number of Warrant
      Shares will be required to be made unless the cumulative effect of such
      adjustment or adjustments would change the number of Warrant Shares by at
      least one Warrant Share and, for greater clarity, any adjustment which,
      except for the qualification of this section, would otherwise have been
      required to be made shall be carried forward and taken into account in any
      subsequent adjustment; provided, however, that in no event shall the
      Company be obligated to issue fractional Warrant Shares or fractional
      interests in Warrant Shares upon exercise of a Warrant;

	 	 	 	 
	 	(c) 	
      if a dispute shall at any time arise with respect to
      adjustments to the Exercise Price or the number of Warrant Shares
      purchasable pursuant to the exercise rights represented by a Warrant, such
      disputes shall be conclusively determined by the Company’s auditors or, if
      they are unable or unwilling to act, by such other firm of independent
      chartered accountants as may be selected by action by the directors and
      any such determination, shall be conclusive evidence of the correctness of
      any adjustments made;

	 	 	 	 
	 	(d) 	
      if the Company shall set a record date to determine the
      holders of its Common Shares for the purpose of entitling them to receive
      any dividend or distribution or any subscription or purchase rights,
      options or warrants and shall thereafter and before the distribution to
      such shareholders of any such dividend, distribution or subscription or
      purchase rights legally abandon its plan to pay or deliver such dividend,
      distribution or subscription or purchase rights, then no adjustment in the
      Exercise Price or the number of Warrant Shares shall be required by reason
      of the setting of such record date; and

	 	 	 	 
	 	(e) 	
      in any case in which this Warrant Certificate requires
      that an adjustment become effective immediately after a record date for an
      event referred to in subsection 2.2 hereof, the Company may defer, until
      the occurrence of such event:

	 	 	 	 
	 		(i) 	
      issuing to the Holder, to the extent that the Warrants
      are exercised after such record date and before the occurrence of such
      event, the additional Warrant Shares issuable upon such exercise by reason
      of the adjustment required by such event; and

- 10 -

	 	 	(ii) 	
      delivering to the Holder any distribution declared with
      respect to such additional Warrant Shares after such record date and
      before such event;

provided, however, that the Company
delivers to the Holder an appropriate instrument evidencing the right of the
Holder, upon the occurrence of the event requiring the adjustment, to an
adjustment in the Exercise Price and/or the number of Warrant Shares.

2.4 Taking of Actions.

      As a condition precedent to the
taking of any action which would require an adjustment pursuant to Section 2.2
hereof, the Company shall take any action that may, in the opinion of counsel,
be necessary in order that the Company may validly and legally issue as fully
paid and non-assessable all of the Common Shares which the Holder is entitled to
receive in accordance with the provisions of this Warrant Certificate.

2.5 Notice.

      At least seven days prior to the
effective date or record date, as the case may be, of any event that requires or
that may require an adjustment in any of the exercise rights of the Holder under
this Warrant Certificate, including the number of Warrant Shares, the Company
shall deliver to the Holder a certificate of the Company specifying the
particulars of such event and, if determinable, the required adjustment and the
computation of such adjustment. In case any adjustment for which a certificate
has been given is not then determinable, the Company shall promptly after such
adjustment is determinable deliver to the Holder hereof a certificate of the
Company showing how such adjustment was computed. The Company hereby covenants
and agrees that the register of transfers and share transfer books for the
Common Shares shall be open during normal business hours for inspection by the
Holder, and that the Company will not take any action which might deprive the
Holder of the opportunity of exercising the rights of subscription contained in
this Warrant Certificate, during such seven day period.

3.  Shares to be Reserved.

     The Company will at all times
take all action necessary to reserve and keep available out of its authorized
Common Shares, solely for the purpose of issue upon the exercise of the
Warrants, 100% of the number of Warrant Shares as are then issuable upon the
exercise of the Warrants (without regard to any limitations on exercise). The
Company covenants and agrees that all Warrant Shares that are so issuable will,
upon issuance in accordance with the terms of this Warrant Certificate and
applicable laws, be duly authorized, fully paid and non-assessable. The Company
will take such actions as may be reasonably necessary and as are within its
power to ensure that all such Warrant Shares may be so issued without violation
of any applicable laws or the applicable requirements of any stock exchange upon
which the Common Shares of the Company may be listed.

- 11 -

4.  Noncircumvention. 

     The Company hereby covenants and
agrees that the Company will not, by amendment of its Certificate of
Incorporation or through any reorganization, transfer of assets, consolidation,
merger, scheme of arrangement, dissolution, issue or sale of securities, or any
other voluntary action, avoid or seek to avoid the observance or performance of
any of the terms of this Warrant Certificate, and will at all times in good
faith comply with all the provisions of this Warrant Certificate and take all
actions consistent with effectuating the purposes of this Warrant Certificate.
Without limiting the generality of the foregoing, the Company shall take all
such actions as may be necessary or appropriate in order that the Company may
validly and legally issue fully paid and nonassessable Common Shares upon the
exercise of the Warrants.

5.  Warrant Holder Not Deemed a
Shareholder. 

     Except as otherwise specifically
provided herein, the Holder, solely in such person’s capacity as a holder of the
Warrants, shall not be entitled to vote or receive dividends or be deemed the
holder of share capital of the Company for any purpose, nor shall anything
contained in this Warrant Certificate be construed to confer upon the Holder,
solely in such person’s capacity as the Holder of the Warrants, any of the
rights of a shareholder of the Company or any right to vote, give or withhold
consent to any corporate action (whether any reorganization, issue of shares,
reclassification of share capital, consolidation, merger, conveyance or
otherwise), receive notice of meetings, receive dividends or subscription
rights, or otherwise, prior to the issuance to the Holder of the Warrant Shares
which such person is then entitled to receive upon the due exercise of a
Warrant. In addition, nothing contained in this Warrant Certificate shall be
construed as imposing any liabilities on the Holder to purchase any securities
(upon exercise of a Warrant or otherwise) or as a shareholder of the Company,
whether such liabilities are asserted by the Company or by creditors of the
Company.

6.  The Register. 

     The Company shall keep: 

	 	(a) 	
      at the principal office of the Company, a register of
      holders of the Warrants represented by this Warrant Certificate or any
      portion thereof in which shall be entered in alphabetical order the names
      and addresses of the holders and particulars of the Warrants held by them;
      and

	 	 	 
	 	(b) 	
      at the principal office of the Company, a register of
      transfers in which all transfers of the Warrants represented by this
      Warrant Certificate or any portion thereof and the date and other
      particulars of each transfer shall be entered.

7.  Transfer of Warrants. 

     Subject to the following
provisions of this Section 7 and applicable laws, the Warrants evidenced hereby
and/or any portion of the rights to subscribe for and purchase Warrant Shares
hereunder may be transferred by the Holder. No transfer of the Warrants
evidenced hereby or any portion of the rights hereunder will be valid unless
duly entered on the appropriate register of transfers, upon the surrender to the Company of this Warrant
Certificate accompanied by a duly completed Transfer Form in substantially the
form attached as Exhibit “2” hereto executed by the registered Holder or its
executors, administrators or other legal representatives or its attorney duly
appointed by an instrument in writing in form and execution satisfactory to the
Company, and, upon compliance with all applicable securities laws and such other
reasonable requirements as the Company may prescribe, such transfer will be duly
recorded by the Company on the applicable registers. If less than all of the
Warrants represented by this Warrant Certificate are transferred, the Holder
shall receive a new Warrant Certificate representing the portion of such
Warrants that were not transferred, registered in the name of the Holder.

- 12 -

     The Warrants may not be sold,
transferred or otherwise disposed of to a Canadian resident for a period of four
(4) months and one (1) day from the Issuance Date, nor may the Holder enter into
any discussions, negotiations or agreements within Canada with respect to the
sale, transfer or disposition of any of the Warrants for a period of four (4)
months and one (1) day from the Issuance Date.

8.  Replacement.

     Upon receipt of evidence
satisfactory to the Company of the loss, theft, destruction or mutilation of
this Warrant Certificate and, if requested by the Company, upon delivery of an
indemnity and/or surety bond in amount and form satisfactory to the Company (or,
in the case of mutilation, upon surrender of this Warrant Certificate), the
Company shall issue and deliver to the Holder a replacement certificate
containing the same legends, terms and conditions as this Warrant
Certificate.

9.  Expiry Date.

     The Warrants shall expire and all
rights to purchase Warrant Shares hereunder shall cease and become null and void
at 5:00 p.m. (New York time) on December [•], 2017.

10. Time.

      Time shall be of the essence of
this Warrant Certificate.

11. Business Day.

      In the event that any day on or
before which any action is required or permitted to be taken hereunder is not a
business day, such action shall be required or permitted to be taken on or
before the requisite time on the next succeeding day that is a business day.

12. Notices.

      Whenever notice is required or
permitted to be given under this Warrant Certificate, unless otherwise provided
herein, such notice will be in writing, will be mailed (a) if within the
domestic United States by first-class registered or certified airmail, or
nationally recognized overnight express courier, postage prepaid, or by
facsimile or (b) if delivered from outside the United States, by International
Federal Express or facsimile, and will be deemed given (i) if delivered by
first-class registered or certified mail domestic, three business days after so
mailed, (ii) if delivered by nationally recognized overnight carrier,
one business day after so mailed, (iii) if delivered by International Federal
Express, two business days after so mailed and (iv) if delivered by facsimile,
upon electronic confirmation of receipt and will be delivered and addressed as
follows:

- 13 -

if to the Company, to:

	 	U.S. Geothermal Inc. 
	 	1505 Tyrell Lane 
	 	Boise, Idaho 83706 
	 	Attention: Daniel J. Kunz, Chief Executive
      Officer 
	 	Facsimile: (208) 424-1030 

with copies to:

	 	Dorsey & Whitney LLP 
	 	Columbia Center 
	 	701 Fifth Avenue, Suite 6100 
	 	Seattle, Washington 98104 
	 	Attention: Christopher J. Barry 
	 	           
                     Kimberley R.
      Anderson 
	 	Facsimile: (206) 903-8820 

if to the Holder, at its address
appearing on the register hereinbefore mentioned, or at such other address or
addresses as may have been furnished to the Company in writing.

13. Amendment and Waiver. 

      These Warrants are part of a
series of warrants to purchase Common Shares of the Company issued on the
Issuance Date (collectively, the “2012 Warrants”). Except as otherwise
provided herein, the provisions of these Warrants may be amended and the Company
may take any action herein prohibited, or omit to perform any act herein
required to be performed by it, only if the Company has obtained the written
consent of the holders of a majority of the 2012 Warrants then outstanding.

14. Governing Law.

      This Warrant Certificate shall
be governed by and construed and enforced in accordance with the internal laws
of the State of New York, without giving effect to the principles of conflicts
of law that would require the application of the laws of any other
jurisdiction.

15. Successor.

      The Company shall not enter into
any transaction whereby all or substantially all of its undertaking, property
and assets would become the property of any other company (herein called a
“Successor Company”) whether by way of reorganization, reconstruction,
consolidation, amalgamation, merger, transfer, sale, disposition or otherwise,
unless prior to or contemporaneously with the consummation of such transaction the
Company and the Successor Company shall have executed such instruments and done
such things as the Company, acting reasonably, considers to be necessary or
advisable to establish that upon the consummation of such transaction:

- 14 -

	 	(a) 	
      the Successor Company will have assumed all the covenants
      and obligations of the Company under this Warrant Certificate,
  and

	 	 	 
	 	(b) 	
      this Warrant Certificate will be a valid and binding
      obligation of the Successor Company entitling the Holder, as against the
      Successor Company, to all the rights of the Holder under this Warrant
      Certificate (without limitation reflecting any adjustments to which the
      Holder may be entitled as a result of such transaction pursuant to
      Sections 2.2 and 2.3).

     Whenever the conditions of this
Section 15 shall have been duly observed and performed, the Successor Company
shall possess, and from time to time may exercise, each and every right and
power of the Company under this Warrant Certificate in the name of the Company
or otherwise and any act or proceeding by any provision hereof required to be
done or performed by any director or officer of the Company may be done and
performed with like force and effect by the like directors or officers of the
Successor Company.

16. General.

      This Warrant Certificate is not
valid for any purpose whatsoever unless and until it has been signed by or on
behalf of the Company. The holding of the Warrants evidenced by this Warrant
Certificate shall not be construed as conferring upon the Holder any right or
interest whatsoever as a shareholder of the Company nor entitle the holder
hereof to any right or interest in respect thereof except as expressly provided
in this Warrant Certificate.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

- 15 -

     IN WITNESS WHEREOF the
Company has caused this Warrant Certificate to be executed by its duly
authorized officer.

     DATED as of the ___ day of
________________, 2012.

	 	U.S. GEOTHERMAL INC. 
	 	  
	 	  
	 	Name: 
	 	Title: 

EXHIBIT 1

Subscription Form

     The undersigned Holder hereby
irrevocably elects to exercise the number of Warrants of U.S. Geothermal Inc.
(the “Company”) set out below for the number of Warrant Shares as set
forth below, evidenced by the attached certificate representing Warrants issued
by the Company (the “Warrant Certificate”). Capitalized terms used herein
and not otherwise defined shall have the respective meanings set forth in the
Warrant Certificate:

     1. Form of Exercise Price. The
Holder intends that payment of the Exercise Price shall be made as:

	(A) 	
      ________     a “Cash
      Exercise” with respect to:

	 	 	 
		(i) 	
      Number of Warrants to be exercised:
      ______________________________

	 	 	 
		(ii) 	
      Number of Warrant Shares to be
      acquired:______________________________

	 	 	 
		(iii) 	
      Exercise Price per
      Warrant:______________________________

	 	 	 
		
      ; and/or

	 	 	 
	(B) 	
      ________     a “Cashless
      Exercise” with respect to:

	 	 	 
		(i) 	
      Number of Warrants to be
      exercised:______________________________

	 	 	 
		(ii) 	
      Number of Warrant Shares to be
      acquired:______________________________

     2. Payment of Exercise Price. In
the event that the Holder has elected a Cash Exercise with respect to some or
all of the Warrant Shares to be issued pursuant hereto, the Holder shall pay the
Aggregate Exercise Price in the sum of US$ ___________________[1(A)(ii)
multiplied by 1(A)(iii) above)] to the Company in accordance with the terms of
the Warrant Certificate.

     3. Delivery of Warrant Shares.
The Holder directs Warrant Shares to be registered and issued as directed below
and the Company shall deliver to the Holder such Warrant Shares in accordance
with the terms of the Warrant Certificate.

     4. The Holder acknowledges that
the Warrants are exercisable only in accordance with applicable laws.

Please check one of the following options and complete
the Required Information below:

Option 1 

	[ ] 	
      Please deliver the Warrant Shares by crediting the
      account of the Holder’s broker (as specified by such Holder below) with
      The Depository Trust Company (“DTC”) through its Deposit/Withdrawal
      At Custodian (“DWAC”) system, whereby the Holder’s broker will
      initiate a DWAC transaction using its DTC participant identification
      number.

OR

Option 2

	[ ] 	
      Please deliver a stock certificate evidencing the Warrant
      Shares registered in the name of the registered holder specified by the
      Holder below to the address specified by the Holder
  below.

Required Information:

	1. 	The exact name that your Warrant Shares are to    	 
	  	be registered in. You may use a nominee name if    	 
	  	appropriate: 	 
	  	  	 
	2. 	The relationship between the Holder and the 	 
	 	registered holder listed in response to item
      1  	 
	  	above: 	 
	  	  	 
	3. 	The mailing address of the registered holder
      listed 	 
	  	in response to item 1 above: 	 
	  	  	 
	4. 	The Social Security Number or Tax
      Identification 	 
	  	Number of the registered holder listed in
      response 	 
	  	to item 1 above: 	 
	  	
    
	 
	5. 	
    Name of DTC Participant (broker-dealer at which 
	 
		
       the account or accounts to be credited with
      the  
	 
	  	
      Warrant Shares are maintained) (Option 1 only):
      
	 
	  	
    
	 
	6. 	
    DTC Participant Number (Option 1 only): 
	 
	  	
    
	 
	7. 	
    Name of Account(s) at DTC Participant being 
	 
	  	
      credited with the Warrant Shares (Option 1 only):
      
	 
	  	
    
	 
	8. 	
    Account Number(s) at DTC Participant being 
	 
	  	credited with the Warrant Shares (Option 1
      only): 	 

DATED this_______ day of____________ , 20_____.

	 	 
	 	(Signature of registered Holder) 
	 	 
	 	 
	 	(Name of registered Holder)

EXHIBIT 2

Transfer Form

FOR VALUE RECEIVED, the undersigned hereby sells, transfers and
assigns to___________________ , whose address is ________________________________________Warrants
represented by the within Warrant Certificate and appoints U.S. Geothermal Inc.
attorney to transfer the said Warrants on its books with full power of
substitution in the premises.

DATED this______ day of___________ , 20_____.

 In the presence of: Signature of Holder guaranteed
by:

	 	 	 
	 	 	(Signature of registered Holder hereof) 
	 	 	 
	 	 	 
	 	 	(Name of registered Holder hereof)
  

		NOTICE: 	
      The signature to this Transfer Form must correspond
      with the name as it appears on the face of the Warrant
      Certificate, without alteration or enlargement or any change
      whatsoever, and must be guaranteed by a bank or trust company.
      Officers of corporations and those acting in a fiduciary or
      other representative capacity should file proper evidence of
      authority to assign the foregoing Warrants.fs1ex10i_wallyworld.htm

Exhibit 10.1

 

Amazon Payments, Inc. Customer Agreement

 

Updated November 8, 2012

 

By registering for one or more accounts or using the products and services (collectively, the "Service") provided by Amazon Payments, Inc. ("we" "us" or "our"), the applicant (if registering as an individual) or the business employing the applicant (if registering as a business) ("you" or "your") accepts this agreement (the "Agreement"). You may not use or access the Service unless you agree to this Agreement.

 

General Terms

 

1. Application; Policies and Specific Terms; Precedence

 

1.1 Application of Agreement. This Agreement applies whether (a) you access the Service using any service, website or application (collectively, "Application") of a third party or one owned or controlled by us or any entity controlled by, in control of, or under common control with us (an "Affiliate"), or (b) you send or receive payments or you initiate payments on behalf of other customers through an Application.

 

1.2 Agreement Structure. This Agreement incorporates, and you accept and agree to, the following: (a) Section 1 through Section 11 of these terms (the "General Terms"), (b) the policies, notices, procedures, Specifications (described below), FAQs, guides, and guidelines that are provided or made available to you, appear on our website located at www.amazonpayments.com (such site, and any successor site, the "Site") or the websites for sellers located at https://sellercentral.amazon.com/ (such site, and any successor site, "Seller Central") or are referenced in this Agreement (collectively, the "Policies"), and (c) the specific account terms that apply to the accounts available through the Service (the "Specific Terms").

 

1.3 Precedence. In the event of any conflicts between the Policies and these General Terms or the Specific Terms, the General Terms or Specific Terms will prevail unless a Policy expressly states that it supersedes the General Terms or the Specific Terms. In the event of any conflict between the General Terms and the Specific Terms, the Specific Terms will prevail.

 

1.4 Amendment. We may modify this Agreement, the Specifications, the Amazon Payments Materials (described below), or the Service at any time. We will post any modification to this Agreement to the Site. Except as specified in the Specific Terms, the modification will become effective upon the earlier of posting it to our Site or otherwise communicating it to you, and you will be deemed to accept the modification if you use the Site or the Service after it has been posted. If you do not accept a change to this this Agreement, the Specifications, the Amazon Payments Materials, or the Service, your sole remedy is to contact us and close your account. Except as expressly provided above, no modification or amendment of this Agreement will be binding on us unless set forth in a writing signed by us.

 

  

1

  

 

2. Registration

 

2.1 Eligibility. To use the Service, (a) you must have an e-mail account and create a payment account with us (a "Payment Account") by providing complete and accurate registration information, (b) if the applicant is registering as an individual, the applicant must be at least 18 years old, or if the applicant is registering on behalf of a business, the applicant must be duly authorized to enter into this Agreement on behalf of the business, and (c) you must be (i) a permanent U.S. resident (which does not include holders of U.S. visas), (ii) a U.S. citizen, or (iii) a business entity authorized to do business and having a physical presence in the United States. However, you may open a Personal Account with limited functionality even if you are not a permanent U.S. resident (which does not include holders of U.S. visas) or a U.S. citizen. We may refuse at any time and for any reason to provide the Service to anyone.

 

2.2 Creating Accounts. Your Payment Account is linked to your Amazon Account (described below). To create a new Payment Account, you must register using your existing Amazon Account or complete the registration process for new users by entering all required information. If you register using your Amazon Account, the information in your Amazon Account will be used to complete the registration information for your Payment Account. You may be required to provide additional information. If you do not have an existing Amazon Account when you register for the Service, a new Amazon Account will be automatically and concurrently established in your name with the same e-mail address and password you provide to us. An "Amazon Account" is any customer account (a) that you have established with certain websites owned or controlled by Affiliates of Amazon.com, Inc. or operated by Affiliates of Amazon.com, Inc. on behalf of third parties (the "Amazon Network Sites"), and (b) whose username, password, or other login credentials permit access to the Amazon Network Sites.

 

2.3 Verification. We may at any time require you to provide information to verify your identity before we permit you to access some or all of the features of the Service. That information may include without limitation your social security number or employer identification number, a valid U.S. credit card, a valid checking, savings or other ACH-enabled bank account at a financial institution in the United States that has been verified by the process outlined on our Site (your "Bank Account"), or other financial, business or personal information. We may make, directly or through third parties, inquiries to validate information that you provide to us. You authorize us to obtain from time to time one or more of your consumer credit reports to establish, update, or renew your Payment Account with us or in the event of a dispute relating to this Agreement or the activity under your Payment Account. You are solely responsible for taking appropriate steps to verify the identity of other users of the Service with whom you transact. You must update all Payment Account information promptly upon any change.

 

2.4 Your E-mail Address. Your e-mail address and a password that you select will be used to access the Site and, if applicable, Seller Central and for communications with you (as further described in Section 11.1). You may be required to verify your e-mail address depending on features of the Service that you would like to use. You also may be prompted to answer several security questions or be issued access keys or credentials that may be used to enable access to the Service and authorize transactions. Your password and access keys or credentials are your "Credentials." You are responsible for maintaining the secrecy and security of your Credentials and for any use of or action taken under your Credentials. You should not disclose your Credentials to any third party (other than third parties authorized by you to use your account). If your Credentials are compromised, you must change your Credentials immediately and notify us immediately.

 

  

2

  

 

3. Your Payment Account

 

3.1 Account Types. Three types of Payment Accounts are available through the Service: Personal Accounts, Business Accounts, and Seller Accounts. Specific Terms applicable to each of these Payment Accounts are provided in addition to these General Terms.

 

3.2 Account Balances. If you are a permanent U.S. resident (which does not include holders of U.S. visas), a U.S. citizen, or a business entity authorized to do business and having a physical presence in the United States, you may hold monetary balances that you load or receive from other users in your Payment Account (your "Balance") subject to the terms of this Agreement. You are not required to maintain a Balance to use the Service. When you carry a Balance, you appoint us as your agent with respect to your Balance, which will be co-mingled and held with funds belonging to other users in one or more accounts at Wells Fargo Bank, N.A. (or such successor bank as we may determine from time to time) on your behalf and for the benefit of you and other users holding balances (each a "Pooled Account"). U.S. dollar balances held in the Pooled Account are eligible for FDIC pass-through insurance, meaning that your Balance may be FDIC insured up to $250,000 (or such other amount as determined by applicable law*). We have sole discretion over the establishment and maintenance of any Pooled Account. We will hold your Balance separate from our corporate funds, will not use your Balance for our corporate purposes, will not voluntarily make your Balance available to our creditors in the event of bankruptcy or for any other purpose, and will not knowingly permit our creditors to attach your Balance. You will not receive interest or any other earnings on your Balance. You irrevocably assign to us all rights and legal interests to any interest or other earnings that accrue or are attributable to your Balance in a Pooled Account.

 

*From December 31, 2010, through December 31, 2012, the FDIC will fully insure all funds in non-interest bearing transaction accounts. This temporary unlimited coverage is in addition to and separate from the coverage of at least $250,000 available to depositors on interest bearing accounts under the FDIC's general deposit insurance rules.

 

3.3 Reserve. We may require that you maintain a minimum balance in your Payment Account or establish a separate reserve account (a "Reserve") to secure the performance of your payment obligations under this Agreement. The Reserve will be in an amount we determine to cover our risk from providing the Service to you (including without limitation anticipated Chargebacks or credit risk) or the amount designated by our Processor (described below). The Reserve may be established upon your initial use of the Service and may be raised, lowered or removed from time to time. You agree that we may fund the Reserve from your Balance, funds sent by you upon our request, or funds due to you under this Agreement. You grant us a security interest in and lien on all funds held in any Reserve, and you also authorize us to make any withdrawals or debits from the Reserve, without prior notice to you, to collect amounts that you owe us, our Affiliates, or other customers. You will execute any additional documentation required for us to perfect our security interest in any funds in the Reserve. This security interest survives for as long as we hold funds in your Reserve. You irrevocably assign to us all rights and legal interests to any interest or other earnings that accrue or are attributable to your Reserve.

 

  

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3.4 Account Limits; Availability of Funds. Your Payment Account may be subject to certain limits, which may affect your ability to send, receive, or withdraw funds. Any limits may be modified at any time. These limits may be affected by several factors, including without limitation our assessment of the risk associated with your Payment Account, the amount of pending or potential Chargebacks, the information you provide, our ability to verify your account information, and requirements of law. In addition to account limits, we may restrict transactions to or from your Payments Account or limit access to funds in your Payment Account in an amount and for a period of time we deem necessary to protect us or other users including without limitation if (a) we are subject to financial risk, (b) you have violated any term of this Agreement, (c) you have pending Chargebacks or we believe you may have Chargebacks, (d) any dispute exists involving your Payment Account or transaction conducted in connection with your Payment Account, (e) needed to protect the security of our systems, or (f) required by law or court order or if otherwise requested by law enforcement or any governmental entity. We may inspect your Payment Account for any reason.

 

3.5 Buyer Dispute Program. When you sell goods or services using our Service, you will cooperate with us to resolve complaints submitted through our Buyer Dispute Program. You will respond to our inquiries and deliver to us any information requested by us regarding any disputed sales transactions within 5 business days of our request. The Buyer Dispute Program includes our "A-to-z Guarantee," which applies only to claims involving the sale of physical goods. If we receive a claim under the A-to-z Guarantee (or any substantially consistent offer) concerning one of your transactions, you will deliver to us within 5 business days: (a) proof of delivery of the applicable goods, (b) the applicable transaction identification number, and (c) a description of the applicable goods. If the claim is not caused by Card (described below) fraud for which we are responsible under the Specific Terms or our failure to make the applicable transaction information available as it was received by us, or if you fail to comply with the immediately preceding sentence, then you owe us the amount of the customer purchase (including without limitation the purchase price, all associated shipping and handling charges and all taxes) and all Network (described below), bank or other payment processing, re-presentment and other fees associated with the original purchase and any Chargeback or refund. If you (as a buyer or seller) are involved in a dispute with another user involving the sale of physical goods under our A-to-z Guarantee, you release us (and our agents and employees) from any and all claims, demands, and damages (actual and consequential) in any way connected with the dispute and the transaction.

 

3.6 Account History. When a deposit, payment, or withdrawal is authorized to or from your Payment Account, we will update your account activity on the Site or Seller Central (as applicable) and provide you a transaction confirmation. The confirmation will serve as your receipt. Except as required by law, you are solely responsible for (a) compiling and retaining permanent records of all transactions and other data associated with your Payment Account and your use of the Service and (b) reconciling and monitoring all payment activity to and from your Payment Account and all transactional information associated with your Payment Account.

 

  

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3.7 Unauthorized Account Activity. If you believe that there is an error or unauthorized transaction or activity associated with your Payment Account, you should contact us immediately.

 

3.8 Compliance with Law and Specifications. You will at all times adhere to all law applicable to your use of the Service. Without limiting the foregoing, you may not act as a payment intermediary, aggregator or service bureau or otherwise resell the Service on behalf of any third party, including without limitation the handling, processing, and transmission of funds for any third party. Please review our Acceptable Use Policy for a list of prohibited activities. You will comply with any technical and operational specifications provided or made available by us from time to time with respect to the Service (the "Specifications").

 

 

3.9 Dormant Accounts. If there is no activity (as determined by us) in your Payment Account for the period of time set forth in the applicable unclaimed property laws and you have a Balance or funds due to you in connection with your Seller Account ("Seller Account Funds"), we will notify you by sending an e-mail to your registered e-mail address and give you the option of keeping your Payment Account open and maintaining the Balance or Seller Account Funds or using the Balance or Seller Account Funds as permitted by this Agreement. We may also provide notice via U.S. mail. If you do not respond to our notice(s) within the time period specified in the notice(s), we will automatically close your Payment Account and send your Balance or Seller Account Funds to your state of residency, as determined from your primary address. If your address is unknown or registered in a foreign country, your funds will be sent to the state of Delaware.

 

4. Your Payment Transactions

 

4.1 Our Role. Except for our limited role in processing payments that you authorize or initiate, we are not involved in any underlying transaction between you, any other user, or any service providers enrolled in the Amazon Flexible Payments Service ("Provider"). We are not a bank and do not offer banking services. We may use the services of one or more third parties to provide the Service and process your transactions (each a "Processor"). Except for qualifying transactions under our Payment Protection Policy described in the Specific Terms for Seller Accounts and Business Accounts, we do not guaranty payment on behalf of any user. We are not a selling agent in connection with any sale by you of goods or services to any person. We have no control over the quality, fitness, safety, reliability, legality, or any other aspect of any good or service that you may purchase or sell using the Service or any Provider's Application that you may use to access the Service.

 

4.2 Your Authorization. Subject to this Agreement, you authorize us to hold, receive and disburse funds in accordance with your payment instructions, whether provided to us directly or through a Provider's Application, and whether to us in our own capacity or in our capacity as payment processor acting on behalf of sellers of goods or services and other third parties that have appointed us as agent for the limited purpose of receiving payments. Your authorization permits us (a) to debit or credit your Balance, a Bank Account, any credit card, debit card, or other payment cards that we accept ("Cards"), or any other payment method we accept, or (b) to process payment transactions that you authorize by generating a paper draft or an electronic funds transfer. Your authorizations will remain in full force and effect while you maintain your Payment Account with us and for any Bank Account.

 

  

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4.3 Transaction Limits. We may delay, suspend or reject a transaction for any Payment Account for any reason, including without limitation if we suspect the transaction subjects us to financial or security risk or is unauthorized, fraudulent, suspicious, unlawful, in violation of the terms of this Agreement, subject to dispute (including without limitation a dispute under our Buyer Dispute Program) or Chargeback, or otherwise unusual.

 

4.4 Chargebacks. The amount of a transaction may be charged back or reversed to your Payment Account (a "Chargeback") if the transaction (a) is disputed by the sender, (b) is reversed for any reason, (c) was not authorized or we have any reason to believe that the transaction was not authorized, or (d) is allegedly unlawful, suspicious, or in violation of the terms of this Agreement. You owe us and will immediately pay us the amount of any Chargeback and any associated fees, fines, or penalties listed in the Fee Schedule or assessed by our Processor, processing financial institutions, or MasterCard, Visa, American Express, Discover, and other payment card networks, associations, or companies ("Networks"). You agree to assist us when requested, at your expense, to investigate any of your transactions processed through the Service. For Chargebacks associated with Cards, we will work with you to contest the Chargeback with the Network or issuing banks should you choose to contest the Chargeback. We will request necessary information from you to contest the Chargeback. Your failure to timely assist us in investigating a transaction, including without limitation providing necessary documentation within 5 days of our request, may result in an irreversible Chargeback.

 

4.5 Receiving Payments. Subject to this Agreement, we will deposit to your Payment Account the amounts actually received by us for transactions submitted through the Service (less any applicable fees or other amounts we may collect under this Agreement). Unless we, in our sole discretion, elect to deposit funds earlier, funds for any given transaction will not be deposited until we have received or sent the funds and we or the designated financial institutions have accepted the transaction or funds.

 

5. Payment Terms

 

5.1 Our Fees. You agree to pay the applicable fees listed on our Fee Schedule ("Fees") whenever you use our Service. We reserve the right to change our Fees at any time, including without limitation if we determine you are incurring excessive Chargebacks. All Balances and all fees, charges, and payments collected or paid through the Service are denominated in U.S. currency. All Fees are charged at the time we process a transaction.

 

  

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5.2 Set-off and Collection Rights. Without limiting our other rights, we may set-off or deduct any amount you owe us or our Affiliates from your Balance, any proceeds due to you, your Bank Account, and/or other payment instrument registered with us. If we are unable or do not wish in our sole discretion to set-off any amount you owe us or our Affiliates, you will immediately pay us, upon demand, such amount. You also agree to pay all costs and expenses associated with collection in addition to the amount collected, including without limitation any applicable interest, attorneys' fees, court costs, collection agency fees, and other legal expenses.

 

5.3 Processing Errors. If there is an error in the processing of any transaction, you authorize us to debit or credit your Payment Account or Bank Account, as applicable, to correct such error. If we are unable to debit the Bank Account you select for any reason, you authorize us to resubmit the debit, plus any applicable fees, to any other Bank Account or payment instrument that you have on file with us.

 

5.4 Taxes. You are responsible for determining any and all taxes and duties assessed, incurred, or required to be collected, paid, or withheld for any reason in connection with any request for or performance of the Service, your use of the Site or Seller Central, the sale or purchase of any products or services for a transaction, or otherwise in connection with any action, inaction, or omission by you or any affiliate of yours, or any of your or their respective employees, agents, contractors, or representatives ("Taxes"). You also are responsible for collecting, withholding, reporting, and remitting correct Taxes to the appropriate tax authority. We may provide you a means for you to determine and apply taxes to your transactions, but we and our Affiliates are not obligated to determine whether Taxes apply and are not responsible for calculating, collecting, reporting, or remitting any Taxes to any tax authority arising from any transaction. Information about you and your transactions using the Service may be reported to the Internal Revenue Service as provided in our policy on IRS Reporting Regulations on Third-Party Payment Transactions.

 

6. Term and Termination

 

6.1 Your Rights. Unless otherwise agreed in writing by you, you may terminate this Agreement by closing your Payment Account at any time. You may not close your Payment Account as a means of evading withdrawal restrictions.

 

6.2 Suspension or Termination by Us. We may suspend this Agreement or terminate this Agreement and close your Payment Account for any reason at any time upon notice to you.

 

6.3 Effect of Termination. We will not be liable to you for compensation, reimbursement, or damages of any kind in connection with any termination or suspension of the Service. Upon termination of this Agreement for any reason: (a) we may elect to cancel any pending transactions, (b) you will remain liable for all fees, charges, and other payment obligations that have been incurred through the date of termination, (c) subject to the terms of this Agreement, any funds that we are holding in custody for you at the time of termination, less any amounts you owe us, may be withdrawn if all withdrawal-related authentication requirements have been fulfilled, (d) all license or other rights granted to either party under this Agreement will immediately terminate, (e) you will return or destroy and cease use of all Amazon Payments Materials and Trademarks (described below), and (f) your access to the Site and Seller Central will be terminated, and we will have no obligation to you to store, retain, report, or otherwise provide any copies of, or access to, any records, documents or other information in connection with your Payment Account or the Service. In addition to any payment obligations under this Agreement, the following sections of this Agreement survive and remain in effect in accordance with their terms upon the termination of this Agreement: 3.3 (with respect to any existing Reserve), 3.4, 3.9, 4.4, 5.2, 5.3, 5.4, 6.3, 7, 8.3, 9.2, 10, 11, and, as applicable, P6, B11, and S8.

 

  

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7. Privacy and Confidentiality

 

7.1 Limits on Your Use of Information. In connection with the Service, you agree not to ask for or require any user to provide any Card, bank account, or other information related to a payment method. To facilitate the transactions between our users, you may have access to certain personal information, including without limitation names of customers or recipients, e-mail addresses, shipping addresses and other personally identifiable information of users (collectively, "Personal Information"). You will not, and will cause your affiliates not to, directly or indirectly: (a) use any Personal Information in any way inconsistent with your privacy policy or applicable law, (b) contact a person that has ordered your goods or services that have not yet been delivered with the intent to collect any amounts in connection with the order or to influence the person to make an alternative purchase, (c) disparage us, our Affiliates, or any of their or our respective products or services, or (d) target communications of any kind on the basis of the intended recipient being a user of our Service or customer of ours or our Affiliates. Subject to the foregoing, you may disclose and use Personal Information as necessary to complete the transaction, to provide customer service and for marketing purposes, provided that you post and maintain a privacy policy outlining your handling and use of Personal Information that complies with applicable law, and you provide customers the opportunity to opt-out or opt-in (as required by applicable law) of receiving any marketing communications (whether by you or any third party other than us and our Affiliates). You may disclose Personal Information to a third party if you ensure that every recipient uses the information only for the purposes for which it was disclosed and complies with the restrictions applicable to you related to that information (including without limitation under this Agreement and your privacy policy). You are liable to us for any misuse or breach of such restrictions by such recipient. The terms of this Section 7.1 do not prevent you from using information that you collect independently from the Service or information that you acquire without reference to Personal Information for any purpose, even if such information is identical to Personal Information; provided that, you may not target communications on the basis of the intended recipient being a user of our Service or customer of ours or our Affiliates.

 

7.2 Confidential Information. You may receive information relating to us or our Affiliates or to the Service that is not known to the general public ("Confidential Information"). You agree that: (a) all Confidential Information will remain our exclusive property, (b) you will use Confidential Information only as is reasonably necessary for your participation in the Service, and (c) you will not otherwise disclose Confidential Information to any other person.

 

  

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8. License

 

8.1 Amazon Payments Materials.

 

8.1.1 Limited Use. During the term of this Agreement, you may use the Amazon Payments Materials only for your internal purposes and solely as necessary for your use of the Service.

 

8.1.2 Restrictions. You may not, and may not attempt to, directly or indirectly: (a) transfer, sublicense, loan, sell, assign, lease, rent, act as a service bureau, distribute or grant rights to any person or entity in the Service or the Amazon Payments Materials, (b) remove, obscure, or alter any notice of any Trademark, or other intellectual property or proprietary right appearing on or contained within the Service or on any Amazon Payments Materials, (c) modify, alter, tamper with, repair, or otherwise create derivative works of any software included in the Amazon Payments Materials; provided that, the foregoing shall not prevent you from making derivatives of software that is designated by us as "sample code" or is otherwise made available by us on the Site in accordance with separate license terms accompanying such software expressly permitting the creation of derivatives, or (d) reverse engineer, disassemble, or decompile the Amazon Payments Materials or the Service or apply any other process or procedure to derive the source code of any software included in the Amazon Payments Materials or as part of the Service.

 

8.1.3 Definition. "Amazon Payments Materials" include any software (including without limitation developer tools, sample source code, and code libraries), data, materials, content and printed and electronic documentation (including without limitation the Specifications and any integration guides) developed and provided by or made available by us or our Affiliates to you in connection with the Service. Amazon Payments Materials do not include any software, data or other materials specifically made available by us or our Affiliates under separate license terms or that were created by a third party, including without limitation software provided under an open source license.

 

8.2 Trademarks. "Amazon Payments", "Checkout by Amazon", "Pay Now", "Amazon Flexible Payments Service", the "a" Design, and other related designs, graphics, logos, page headers, button icons, scripts, and service names are trademarks, registered trademarks, or trade dress of Amazon.com, Inc. or its Affiliates in the U.S. and/or other countries (collectively, "Trademarks"). You may not use the Trademarks except as expressly permitted herein. All other trademarks not owned by us that appear on the Site or Seller Central or in connection with the Service are the property of their respective owners, who may or may not be affiliated with, connected to, or sponsored by us.

 

8.3 Reservations. Other than the limited use and access rights and licenses expressly set forth in this Agreement, we and our Affiliates reserve all right, title and interest (including without limitation all intellectual property and proprietary rights) in and to the Service, the Amazon Payments Materials, the Trademarks, and any other technology, software and intellectual property that we provide, make available or use to provide the Service, the Site, Seller Central, or the Amazon Payments Materials. Except for the limited use and access rights and licenses described in this Agreement, you do not, by virtue of this Agreement, acquire any ownership interest or rights in the Service, the Site, Seller Central, the Amazon Payments Materials, the Trademarks, or such other technology, software, or intellectual property provided or made available by us or our Affiliates.

 

  

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8.4 Press Releases. You must not issue any press release or make any public statement related to the Service, or except as expressly provided in this Agreement, use our or any of our Affiliates' names or Trademarks in any way without our prior written permission.

 

9. Representations and Warranties

 

9.1 By You. You represent and warrant to us that: (a) you are eligible to register and use the Service and have the right, power, and ability to enter into and perform under this Agreement and grant the rights, licenses, and authorizations you grant under this Agreement, (b) the name identified by you when you registered is your name or business name under which you sell goods and services, (c) you will use the Service only to transact on your own account and not on behalf of any other person or entity, (d) you will fulfill all of your obligations to each user for which you submit a transaction and will resolve any consumer dispute or complaint directly with the purchaser and, if applicable, the Buyer Dispute Program, (e) you and all transactions initiated by you will comply with all law applicable to you, and (f) you will not use the Service, directly or indirectly, for any fraudulent undertaking or in any manner so as to interfere with the use of the Service.

 

9.2 Disclaimer. The Site, Seller Central, the Amazon Payments Materials and the Service are provided on an "as-is" basis. To the fullest extent permitted by applicable law, we and our Affiliates disclaim, and make no, representations or warranties of any kind, express or implied, regarding the Site, Seller Central, the Amazon Payments Materials, the Service, or any Application, including without limitation (a) any implied warranties of merchantability, satisfactory quality, fitness for a particular purpose, title or non-infringement, (b) that the Site, Seller Central, the Amazon Payments Materials, the Service, or any Application will meet your requirements, will always be available, accessible, uninterrupted, timely, secure, or operate without error or will contain any particular features or functionality, or (c) any implied warranty arising from course of dealing or trade usage.

 

10. Limitation of Liability

 

10.1 No Indirect or Consequential Damages. To the fullest extent permitted by applicable law, we and our Affiliates (and our and their respective employees, directors, agents, and representatives) will not be liable for any indirect, incidental, punitive, or consequential damages arising out of or in connection with this Agreement, the Site, Seller Central, the Amazon Payments Materials, the Service (including without limitation the inability to use the Service), or any Application using our Service.

 

  

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10.2 No Liability for Transactions or Delays. In addition, and without limiting the foregoing, to the fullest extent permitted by applicable law, we and our Affiliates (and our and their respective employees, directors, agents and representatives) will not be liable for (a) any damages arising out of or in connection with any services, products, purchases, or transactions entered into through the Service, or (b) delay by us or our Affiliates (or our or their respective employees, directors, agents, and representatives) in performing our obligations under this Agreement, regardless of whether the failure or delay is caused by an event or condition beyond our control.

 

10.3 Limited Aggregate Liability. In addition, and without limiting the foregoing, to the fullest extent permitted by applicable law, in no event will the aggregate liability of us or our Affiliates (and our and their respective employees, directors, agents and representatives) arising out of or in connection with this Agreement or the transactions contemplated hereby, whether in contract, tort (including negligence, product liability, or other theory), warranty, or otherwise, exceed the amount of fees earned by us in connection with your use of the Service during the three-month period immediately preceding the event giving rise to the claim for liability.

 

10.4 Maximum Effect. The laws of certain states or other jurisdictions do not allow limitations on implied warranties, or the exclusion or limitation of certain damages. If these laws apply, some or all of the above disclaimers, exclusions, or limitations may not apply to you, and you may have rights in addition to those contained in this Agreement. Our and our Affiliates' (and our and their respective employees, directors, agents and representatives) liability is limited to the greatest extent permitted by law.

 

11. General Provisions

 

11.1 Electronic Notices and Your Consent. We primarily communicate with you via the Site, Seller Central, and the e-mail address we have on file for you. By registering for the Service and accepting the terms of this Agreement, you affirmatively consent to receive notices electronically from us (your "Consent"). You agree that we may provide all communications and transactions related to the Service and your Payment Account, including without limitation agreements related to the Service, amendments or changes to such agreements, or any Policies, disclosures, notices, transaction information, statements, policies (including without limitation notices about our Privacy Notice), responses to claims, and other customer communications that we may be required to provide to you by law (collectively, "Communications") in electronic format. Communications may be posted to the Site or Seller Central or sent by e-mail to the e-mail address we have on file for you, and all such Communications will be deemed to be in "writing" and received by you when sent to you. You are responsible for printing, storing, and maintaining your own records of such Communications. You must send notices to us at the designated e-mail address(es) on the Site or through the submission forms on the Site. We reserve the right to discontinue or modify how we provide Communications. We will give you prior notice of any change. Your continued Consent is required to use your Payment Account. To withdraw your Consent, you will need to close your Payment Account.

 

  

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11.1.1 Requirements. To access, view, and retain Communications, you must have a computer with a JavaScript enabled Internet browser that supports 128-bit encryption (such as Microsoft Internet Explorer v5 or later) and access to a personal, active e-mail account. You are responsible for any costs or fees associated with these requirements, including without limitation charges for telecommunications services. We will give you prior notice if we make a change to the requirements for receiving Communications.

 

11.1.2 Updating Your Information. It is your responsibility to ensure that your e-mail address is accurate and remains current. To ensure that we are able to provide you with important Communications, you must update us with any change in your e-mail address. The scope of this Consent applies to the e-mail address that we currently have on file for you.

 

11.1.3 Requesting Paper Copies. Communications will not be distributed in paper unless you contact us and request a paper version of a particular document. We reserve the right to charge you a handling fee for any notices that we physically mail to you at your request or because your e-mail address fails.

 

11.2 Governing Law; Venue. The Service, the Site, and Seller Central are arranged, sponsored, and managed by us and our Affiliates in the State of Washington, USA. By visiting the Site or Seller Central or using the Service, you agree that the Federal Arbitration Act, applicable federal law, and the laws of the State of Washington, without regard to principles of conflict of laws, will govern this Agreement and any dispute of any sort that might arise between you and us or any of our Affiliates.

 

11.3 Disputes. Any dispute or claim relating in any way to your visit to the Site or Seller Central or to products or services sold or distributed by us or through the Site or Seller Central (including without limitation the Service) will be resolved by binding arbitration, rather than in court, except that you may assert claims in small claims court if your claims qualify. The Federal Arbitration Act and federal arbitration law apply to this agreement. There is no judge or jury in arbitration, and court review of an arbitration award is limited. However, an arbitrator can award on an individual basis the same damages and relief as a court (including injunctive and declaratory relief or statutory damages), and must follow the terms of this Agreement as a court would. To begin an arbitration proceeding, you must send a letter requesting arbitration and describing your claim to our registered agent Corporation Service Company, 300 Deschutes Way SW, Suite 304, Tumwater, WA 98051. The arbitration will be conducted by the American Arbitration Association (AAA) under its rules, including the AAA’s Supplementary Procedures for Consumer-Related Disputes. The AAA’s rules are available at www.adr.org or by calling 1-800-778-7879. Payment of all filing, administration and arbitrator fees will be governed by the AAA’s rules. We will reimburse those fees for claims totaling less than $10,000 unless the arbitrator determines the claims are frivolous. Likewise, we will not to seek attorneys' fees and costs in arbitration unless the arbitrator determines the claims are frivolous. You may choose to have the arbitration conducted by telephone, based on written submissions, or in person in the county where you live or at another mutually agreed location. You and we each agree that any dispute resolution proceedings will be conducted only on an individual basis and not in a class, consolidated, or representative action. If for any reason a claim proceeds in court rather than in arbitration you and we each waive any right to a jury trial. You and we also both agree that you or we may bring suit in court to enjoin infringement or other misuse of intellectual property rights.

 

  

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11.4 Assignment. You may not assign or transfer any rights, obligations, or privileges that you have under this Agreement without our prior written consent. Subject to the foregoing, this Agreement will be binding on each party's successors and permitted assigns. Any assignment or transfer in violation of this section will be deemed null and void.

 

11.5 No Waiver. We will not be considered to have waived any of our rights or remedies, or portion of them, unless the waiver is in writing and signed by us. Our failure to enforce the strict performance of any provision of this Agreement will not constitute a waiver of our right to subsequently enforce such provision or any other provisions of this Agreement.

 

11.6 No Agency. Nothing in this Agreement is intended to or creates any type of joint venture, employee-employer, creditor-debtor, escrow, partnership, or any fiduciary relationship between you, us or our Affiliates. Further, except as expressly provided for the limited purpose of processing payments in accordance with the Specific Terms for Business Accounts and Seller Accounts: (a) neither party shall be deemed to be an agent or representative of the other by virtue of this Agreement, (b) neither party is authorized to, or will attempt to, create or assume any obligation or liability, express or implied, in the name of or otherwise on behalf of the other party, and (c) without limiting the generality of the foregoing, neither party will enter into any contract, agreement, or other commitment, make any warranty or guaranty, or incur any obligation or liability in the name or otherwise on behalf of the other party.

 

11.7 Severability. If any portion of this Agreement is held by a court of competent jurisdiction to be invalid or unenforceable, the remaining portions of this Agreement will remain in full force and effect and, upon our request, the court will construe any invalid or unenforceable portions in a manner that most closely reflects the effect and intent of the original language. If such construction is not possible, the invalid or unenforceable portion will be severed from this Agreement and the rest of the Agreement remains in full force and effect.

 

11.8 Entire Agreement. This Agreement constitutes the entire agreement of the parties with respect to the subject matter of this Agreement and supersedes and cancels all prior and contemporaneous agreements, claims, representations, and understandings of the parties in connection with the subject matter of this Agreement.

 

  

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11.9 Cumulative Remedies. All of our rights and remedies are cumulative, not alternative, and the exercise of any right or remedy by us will not eliminate or limit our ability to exercise any other right or remedy, except to the extent required by law.

 

Personal Accounts

 

P1 Eligibility; Creating Accounts. Personal Accounts are intended for use by individuals and your Personal Account information may be accessed through the Site. If you have an Amazon Account and initiate the process to establish a Personal Account, we will automatically set up a Personal Account linked to your Amazon Account. Your Personal Account permits you to access the information in your Amazon Account to make purchases wherever Amazon Payments is accepted. Personal Accounts also are eligible to hold a Balance, make or send payments from Cards, Bank Accounts or your Balance, and receive payments from other users. Payments may be made using Applications that we provide, or Providers may enable access to the Service for the purpose of initiating transactions that are authorized by other users through their Applications. Personal Accounts may not receive Card payments. Some features may be limited based on where you are located and what we know about you. If you are not a permanent U.S. resident (which does not include holders of U.S. visas) or U.S. citizen, you may use a Personal Account only to register and access Cards for making purchases. Our collection, use, and disclosure of information associated with the Service are disclosed in our Privacy Notice.

 

P2 Account History. You may receive a separate receipt from a seller if the transaction involves the sale of goods or services. For preauthorized payments (as described in Section P3.4 below), you will receive an e-mail confirmation when a transaction authorized by this payment type is completed. For transactions below $1.00, you will receive a daily receipt for all such transactions initiated that day. You should print or otherwise store a copy of these for your records. Summaries of your account activity, including monthly statements, are available in the "Your Account" area of our Site. Our liability and your rights for erroneous or unauthorized transactions or activity associated with your Personal Account are governed by our Unauthorized Transactions Policy.

 

P3 Making Payments.

 

P3.1 General. You may make payments to any person who has a valid e-mail address and a Payment Account or establishes one with us. Unregistered users may not access funds sent to them until and unless (a) they create a Personal Account or Business Account and verify their e-mail address and (b) we verify their identity in accordance with Section 2.3. If an intended recipient does not have a Personal Account or Business Account, he or she will be notified that a payment request has been initiated and prompted to create an account by visiting our Site. When you send a payment, you remain the owner of those funds until that payment is accepted by the recipient. We hold those funds on your behalf, but you will not be able to disburse or send those funds to any other user unless the initial transaction is cancelled or rejected. If a payment is denied or unclaimed by the recipient, the funds will be returned to the sender (less applicable fees). We are not liable to any person for any damages associated with any unaccepted payment. Any time you send funds you are doing so at your own risk.

 

  

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P3.2 Payment Methods.

 

P3.2.1 Types. You may register eligible payment methods in your Payment Account. Any payment method you register will automatically appear in your Amazon Account. If your available Balance is greater than the amount you wish to send, we will use your Balance as the default payment method unless otherwise specified. We may restrict the available payment method to manage risk or based on the type of transaction. Not all payment methods may be available to you when you wish to make a payment.

 

P3.2.2 1-Click Payments. If 1-Click is enabled for your Amazon Account, you may make payments using Amazon 1-Click. If you click the "Buy now with 1-Click button" on any product page, your order will be automatically charged to the default payment method on your account and shipped to the default address. If you wish to change your 1-Click settings, visit "Your Account" on Amazon.com and access your 1-Click settings.

 

P3.2.3 Bank Accounts. You may send a payment or fund a Balance electronically by transferring money from your Bank Account. Funds transfers from your Bank Account or that of a third party usually take at least three to four business days to complete. You may be charged a return fee for any ACH debit transfer request that is rejected by the holding financial institution for any reason (a "Return Fee"). Return Fees are listed in the Fee Schedule and may vary based on the jurisdiction in which you are located. Your location is determined by the primary address that is associated with your Payment Account. You authorize us to debit your Payment Account or to make an electronic fund transfer (or an equivalent bank draft) from your Bank Account to collect such return fee. We do not accept cash, money orders, or wire transfers.

 

P3.2.4 Cards. You may use registered Cards to pay for goods or services. You may be required to verify that you control the Card accounts that you register prior to using the Cards for transactions or to obtain additional payment privileges. You may not use your Card to make payments to yourself or to add money to your account. If you use your Card to send payments for transactions that do not involve the sale of goods or services, you may be charged a cash advance or other fee directly by your Card issuer. We are not responsible for these fees.

 

P3.3 Payment Authorizations. Our Service permits you to authorize payments to sellers directly or to third-party services that enable transactions with sellers. The actual payment will not be completed until the seller or service provider processes your payment authorization with us. A seller or service provider may delay in processing your authorization. The payment authorization will be held with us until the transaction is completed.

 

P3.4 Preauthorized Payments. The Service may permit you to preauthorize sellers to charge your Payment Account using recurring payments or multiple payments. A "recurring payment" is a payment that occurs at regular intervals for fixed amounts over a specified time period. Variable amounts are not permitted with a recurring payment. A "multiple payment" is a payment authorization given to a recipient by a sender to charge the sender's Payment Account up to a maximum amount over a specified time period. Multiple payments may be used only for non-recurring, multiple payments. You may cancel or stop either type of standing payment authorization at any time by logging into the "Your Account" portion of our Site and canceling the payment listed in "Account Settings."

 

  

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P4 Withdrawals. You may withdraw funds via ACH to your Bank Account (subject to withdrawal limits). You also may purchase an Amazon.com gift card and have the funds transferred to your gift card account at the amazon.com website. Amazon.com gift card purchases are subject to additional terms and conditions as specified on the Site. You may request a physical check in the event that you do not have an ACH-enabled account. Check requests will be subject to a processing fee as disclosed in our Fee Schedule and an identity verification process.

 

P5 Buyer Responsibilities.

 

P5.1 Return of Refunded Merchandise. If you receive a refund for a purchase but you fail to return the product to the seller, we may charge you for the product consistent with the original order. Subject to our obligations under the A-to-z Guarantee, we do not issue refunds if a product or service turns out not to meet your expectations or if the seller does not fulfill its commitments, and we have no obligation to resolve any disputes related to any transaction.

 

P5.2 Buyer Dispute Program. If you are a buyer and you are unhappy with any goods or services that you have purchased using our Service, you should contact the seller directly first. If you are unable to resolve the matter with the seller, you may use the Buyer Dispute Program to file a complaint against the seller. If your dispute involves the sale of physical goods, you may submit a claim under our A-to-z Guarantee.

 

P5.3 Purchases through Amazon.com. We may enable you to make purchases of products sold through the amazon.com website using the Service. Such purchases are subject to Amazon.com's standard terms.

 

P5.4 Use of Provider Application. If you use our Service through a Provider's Application, you are only responsible for the Fees associated with transactions that you authorize through that Application and for which the Provider notifies you that you are responsible when you register for or use the Application.

 

P6 Indemnity. You will indemnify and hold harmless us and our Affiliates (and their respective employees, directors, agents, and representatives) from and against any and all claims, costs, losses, damages, judgments, Tax assessments, penalties, interest, and expenses (including without limitation reasonable attorneys' fees) arising out of any claim, action, audit, investigation, inquiry, or other proceeding instituted by a person or entity that arises out of or relates to: (a) any actual or alleged breach of your representations, warranties, or obligations set forth in this Agreement, including without limitation any violation of our Policies or Network Rules, (b) your wrongful or improper use of the Service, and (c) any transaction submitted by you through the Service.

 

P7 Amendment. We will send notice of any change to your Personal Account that involves an increase in fees or liability for you under this Agreement, or that results in fewer types of transactions or stricter limits on the frequency or dollar amount of transactions ("Material Change") to the email address under your profile, and that Material Change will be effective 30 days from the earlier of posting it to our Site or otherwise communicating it to you. You will be deemed to accept any Material Change if you use the Site or Service after the 30-day notice period. We may make Material Changes without prior notice if immediate changes are necessary for security reasons.

 

  

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Business Accounts

 

B1 Eligibility; Creating Accounts. Business Accounts are only for commercial and business use and may be accessed through the Site. A Business Account has the same features of a Personal Account but also is eligible to receive Card payments for the sale of goods and services. Payments may be made using Applications that we provide, or Providers may enable access to the Service for the purpose of initiating transactions that are authorized by other users through their Applications. If your transaction volume exceeds $100,000 per year or you are deemed to be a commercial entity under the Network Rules, the Networks and our Processor(s) require that you agree to the additional terms and conditions between you and the Processor(s) under the Credit Card Association Agreement below. You are the seller of record for any sales you conduct using the Service.

 

B2 Account History. You may receive a separate receipt from a seller if the transaction involves the sale of goods or services. For preauthorized payments (as described in Section B3.4 below), you will receive an e-mail confirmation when a transaction authorized by this payments type is completed. For transactions below $1.00, you will receive a daily receipt for all such transactions initiated that day. You should print or otherwise store a copy of these for your records. Summaries of your account activity, including monthly statements, are available in the "Your Account" area of our Site.

 

B3 Making Payments.

 

B3.1 General. You may make payments to any person who has a valid e-mail address and a Payment Account or establishes one with us. Unregistered users may not access funds sent to them until and unless they create a Personal Account or Business Account and verify their e-mail address. If an intended recipient does not have a Personal Account or Business Account, he or she will be notified that a payment request has been initiated and prompted to create an account by visiting our Site. When you send a payment, you remain the owner of those funds until that payment is accepted by the recipient. We hold those funds on your behalf, but you will not be able to disburse or send those funds to any other user unless the initial transaction is cancelled or rejected. If a payment is denied or unclaimed by the recipient, the funds will be returned to the sender (less applicable fees). We are not liable to any person for any damages associated with any unaccepted payment. Any time you send funds you are doing so at your own risk.

 

  

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B3.2 Payment Methods.

 

B3.2.1 Types. You may register eligible payment methods in your Payment Account. Any payment method you register will automatically appear in your Amazon Account. If your available Balance is greater than the amount you wish to send, we will use your Balance as the default payment method unless otherwise specified. We may restrict the available payment method to manage risk or based on the type of transaction. Not all payment methods may be available to you when you wish to make a payment.

 

B3.2.2 1-Click Payments. If 1-Click is enabled for your Amazon Account, you may make payments using Amazon 1-Click. If you click the "Buy now with 1-Click button" on any product page, your order will be automatically charged to the default payment method on your account and shipped to the default address. If you wish to change your 1-Click settings, visit "Your Account" on Amazon.com and access your 1-Click settings.

 

B3.2.3 Bank Accounts. You may send a payment or fund a Balance electronically by transferring money from your Bank Account. Funds transfers from your Bank Account or that of a third party usually take at least three to four business days to complete. You may be charged a return fee for any ACH debit transfer request that is rejected by the holding financial institution for any reason (a "Return Fee"). Return Fees are listed in the Fee Schedule and may vary based on the jurisdiction in which you are located. Your location is determined by the primary address that is associated with your Payment Account. You authorize us to debit your Payment Account or to make an electronic fund transfer (or an equivalent bank draft) from your Bank Account to collect such return fee. We do not accept cash, money orders, or wire transfers.

 

B3.2.4 Cards. You may use registered Cards to pay for goods or services. You may be required to verify that you control the Card accounts that you register prior to using the Cards for transactions or to obtain additional payment privileges. You may not use your Card to make payments to yourself or to add money to your account. If you use your Card to send payments for transactions that do not involve the sale of goods or services, you may be charged a cash advance or other fee directly by your Card issuer. We are not responsible for these fees.

 

B3.3 Payment Authorizations. Our Service permits you to authorize payments to sellers directly or to third-party services that enable transactions with sellers. The actual payment will not be completed until the seller or service provider processes your payment authorization with us. A seller or service provider may delay in processing your authorization. The payment authorization will be held with us until the transaction is completed.

 

B3.4 Preauthorized Payments. The Service may permit you to preauthorize sellers to charge your Payment Account using recurring payments or multiple payments. A "recurring payment" is a payment that occurs at regular intervals for fixed amounts over a specified time period. Variable amounts are not permitted with a recurring payment. A "multiple payment" is a payment authorization given to a recipient by a sender to charge the sender's Payment Account up to a maximum amount over a specified time period. Multiple payments may be used only for non-recurring, multiple payments. You may cancel or stop either type of standing payment authorization at any time by logging into the "Your Account" portion of our Site and canceling the payment listed in "Account Settings."

 

  

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B4 Receiving Payments.

 

B4.1 Payment Processing Agency Appointment. You hereby appoint us as your payment processing agent for the limited purpose of receiving payments on your behalf from users that authorize payments to you directly or to third-party services that enable transactions with you. Users will receive a receipt upon payment that will indicate that payment has been made on the applicable date. Our obligation to remit funds collected by us on your behalf shall be limited to funds that we have actually received and that are not subject to Chargeback or reversal, and we shall have no obligation to pursue any collection action against any user. Receipt of funds from users by us on your behalf in connection with Service transactions shall be deemed receipt of funds from users by you and will satisfy the obligations owed to you by users in the amount of the applicable payment by the user, even if we fail to remit such funds received from users.

 

B4.2 Accepting Cards. You will comply with our Card processing policies, procedures, and instructions as published on our Site or provided to you from time to time. As a condition of accepting Cards using the Service, you agree to follow all applicable rules and regulations of the Networks, as amended from time to time, that are provided to you or are generally available to the public (including merchant rules posted on usa.visa.com, www.mastercard.com, www.americanexpress.com, and www.discover.com) ("Network Rules"). We may remove or add Cards or other payment methods that we accept at any time without prior notice. Except as permitted by Network Rules or applicable law, you will not (a) establish limits below which you will not accept a Card, (b) assess a surcharge for the use of a Card in connection with any transaction, or (c) dispense cash on any Card transaction. We may elect only to process Cards that receive an authorization from the applicable Network or Card issuer. An authorization does not guarantee that such transaction will be collectible or that the cardholder is actually authorized to use the Card or that the transaction will not be subject to Chargeback.

 

B4.3 Order Processing. Subject to the terms of this Agreement, we will process all payments and refunds for your transactions submitted through the Service. You are responsible for all information regarding goods or services that you sell, including without limitation any product names or descriptions, UPC or product codes, product notices or disclaimers, prices, product availability or status, shipping and handling charges and tax rates (collectively, "Product Information") and for providing accurate and complete Product Information to customers. You will route all order-related payments through us and not make offline adjustment requests. For each order that you send to us, the Product Information must be the same as what was presented to the purchaser when placing the order. Our, or one of our Affiliates', name will appear on the customer's Card statement (which may also display, at our option, your name). We will determine the time at which we process payments and refunds for your transactions.

 

B4.4 Delivery Errors and Nonconformities; Product Recalls. You are responsible for any non-delivery, misdelivery, theft or other mistake or act in connection with the fulfillment and delivery of your goods or services, except to the extent caused by (a) Card fraud for which we are responsible under Section B6, or (b) our failure to make available to you transaction information as it was received by us. You are also responsible for any non-conformity or defect in, or any public or private recall of, any of your goods or services. You will notify us promptly as soon as you have knowledge of any public or private recalls of your goods or services.

 

  

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B4.5 Refunds and Returns.

 

B4.5.1 Your Obligations. You will accept and process returns of, and provide refunds and adjustments for, your goods or services in accordance with this Agreement and your policies posted on your website at the time of the applicable sale, and you will calculate and refund any associated taxes required to be refunded. You will route all refund (and adjustment) payments through us. We or our designated Affiliate will credit the applicable account, and you will reimburse us for all amounts so refunded. We have no obligation to accept any returns of any of your goods or services.

 

B4.5.2 Card Refunds. Unless otherwise permitted by Network Rules, you will (a) maintain a fair policy for the return or cancellation of merchandise or services and adjustment of Card sales, (b) disclose your return or cancellation policy to your customers at the time of purchase, (c) not give cash refunds to a customer in connection with a Card sale, unless required by law, and (d) not accept cash or any other consideration for preparing a refund to be deposited to a customer's account in connection with a Card sale. The amount of the refund/adjustment cannot exceed the amount shown as the total on the original sales data except by the exact amount required to reimburse the customer for postage that the customer paid to return merchandise. If you accept returns and are making an uneven exchange of merchandise (e.g., the sales price is not the same), you must issue a credit for the total amount of the merchandise being returned and complete a new sale for any new merchandise.

 

B4.6 Customer Service. Unless provided otherwise elsewhere in this Agreement, you will be solely responsible for all customer service issues relating to your goods or services, order fulfillment, order cancellation by you or the customer, returns, refunds and adjustments, and feedback concerning experiences with your personnel, policies or processes. In performing customer service, you will always present yourself as a separate entity from us. As between you and us, we will be solely responsible for all customer service issues relating to any Payment Account, payment, Card processing, debiting or crediting, and Buyer Dispute Program.

 

B5 Withdrawals. You may withdraw funds via ACH to your Bank Account (subject to withdrawal limits). You also may purchase an Amazon.com gift card and have the funds transferred to your gift card account at the amazon.com website. Amazon.com gift card purchases are subject to additional terms and conditions as specified on the Site. You may request a physical check in the event that you do not have an ACH-enabled account. Check requests will be subject to a processing fee as disclosed in our Fee Schedule and an identity verification process.

 

B6 Payment Protection Policy. We will not hold you liable for a Chargeback if you and the transaction meet all the following requirements: (a) the transaction is for the sale of physical goods (e.g., books, DVDs, etc.) and not for intangible goods (e.g., services, digital content, or cash equivalents or stored value instruments such as gift cards), (b) the Chargeback (whether for transactions involving Cards or reversals on bank account transfers) is disputed and classified as "Unauthorized Payment" and not any other way (e.g., "significantly not as described," "merchandise is defective," or "non-receipt of merchandise"), (c) you provide all requested information within the time limit specified by us, including without limitation valid proof of delivery, and (d) you have not violated the terms of this Agreement.

 

  

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B7 Buyer Responsibilities.

 

B7.1 Return of Refunded Merchandise. If you receive a refund for a purchase but you fail to return the product to the seller, we may charge you for the product consistent with the original order. Subject to our obligations under the A-to-z Guarantee, we do not issue refunds if a product or service turns out not to meet your expectations or if the seller does not fulfill its commitments, and we have no obligation to resolve any disputes related to any transaction.

 

B7.2 Responsibilities under Buyer Dispute Program. If you are a buyer and you are unhappy with any goods or services that you have purchased using our Service, you should contact the seller directly first. If you are unable to resolve the matter with the seller, you may use the Buyer Dispute Program to file a complaint against the seller. If your dispute involves the sale of physical goods, you may submit a claim under our A-to-z Guarantee.

 

B7.3 Purchases through Amazon.com. We may enable you to make purchases of products sold through the amazon.com website using the Service. Such purchases are subject to Amazon.com's standard terms.

 

B7.4 Use of Provider Application. If you use our Service through a Provider's Application, you are only responsible for the Fees associated with transactions that you authorize through that Application and for which the Provider notifies you that you are responsible when you register for or use the Application.

 

B8 Provider Responsibilities. If you are a Provider, you are responsible for the Fees associated with any transactions processed through your Application unless you or your Application (a) indicate that a user should be charged the applicable fees, (b) notify the user of the applicable Fees, and (c) obtain an authorization from the user. Providers are not permitted to hold funds on behalf of other users.

 

B9 Use of Trademarks. Subject to the terms of this Agreement and provided your Business Account is in good-standing, we grant you a non-exclusive, non-transferable, non-assignable, non-sublicenseable, revocable license to use the Trademarks on your websites, solely in connection with the Service and solely in accordance with our trademark guidelines and such other documentation as we may make available from time to time; provided the names of those domains and subdomains do not contain any of our Trademarks or any other trademark of Amazon or its Affiliates, or any confusingly similar trademark ("Trademark License"). We may add, substitute, or remove Trademarks from time to time, and you agree that you will add, substitute, or remove any Trademarks, as we reasonably request, as promptly as reasonably possible. You acknowledge that we and our Affiliates are the sole owners of the Trademarks, and you agree to do nothing inconsistent with that ownership. Your use of the Trademarks and all goodwill arising out of your use of the Trademarks will inure to the sole benefit of us and our Affiliates, and will not create for you any right, title, or interest in the Trademarks. You may not use the Trademarks in connection with any product or service other than the Service, or in any manner that is likely to (a) cause consumer confusion, (b) dilute the value of any Trademark, (c) impair our ownership or rights in the Trademarks, or (d) disparage or discredit us or our Affiliates. You may not modify or alter any Trademark, nor shall you combine any Trademark with any other trademark, word, symbol, letter, or design. You may not use any of our Trademarks or any other trademark of Amazon.com, Inc. or its Affiliates, or any confusingly similar trademark, in the name of any domain name or subdomain. You must use or display the Trademarks in a manner consistent with the level of quality historically associated with our Trademarks, and you must undertake any steps as we may reasonably request to assist us in monitoring the quality of any of your products or services for which the Trademarks are used. We have the right to monitor your use of the Trademarks and the right to take all action we deem necessary to ensure that the products or services for which you use the Trademarks are not diluting the value of any Trademark. We may revoke this Trademark License at any time in our sole discretion. We and our Affiliates may use your name, logo, service name, or trademarks as designated by you solely as necessary to provide the Service in accordance with our Specifications and other Policies (including without limitation in co-branded web pages used to process orders). We and our Affiliates may use your name or logo on any platform to identify you as a participating merchant.

 

  

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B10 Additional Representations and Warranties. You represent and warrant to us that: (a) any sales transaction submitted by you will represent a bona fide sale by you as described on your website or Application, (b) any sales transactions submitted by you and all Product Information will accurately describe the goods and/or services sold and delivered to a purchaser, (c) you will accurately and in compliance with applicable law describe your use of Personal Information and your use of the Service in your privacy policy, (d) except in the ordinary course of business, no sales transaction submitted by you through the Service will represent a sale to any principal, partner, proprietor, or owner of you, and (e) you will not and will not authorize any other party to use any Public Software in any manner that requires, pursuant to the license applicable to such Public Software, that the Service or any Amazon Payments Materials be disclosed, licensed, distributed or otherwise made available to anyone. "Public Software" means any software, documentation or other material that contains, or is derived (in whole or in part) from, any software, documentation or other material that is distributed as free software, open source software (e.g., Linux) or similar licensing or distribution models, including, but not limited to software, documentation or other material licensed or distributed under any of the following licenses or distribution models, or licenses or distribution models similar to any of the following: (i) the GNU General Public License (GPL); Lesser/Library GPL (LGPL), or Free Documentation License; (ii) The Artistic License (e.g., PERL); (iii) the Mozilla Public License; (iv) the Netscape Public License; (v) the Sun Community Source License (SCSL); (vi) the Sun Industry Standards License (SISL); (vii) the BSD License; and (viii) the Apache License.

 

B11 Indemnity. You will indemnify, defend, and hold harmless us and our Affiliates (and our and their respective employees, directors, agents, and representatives) from and against any and all claims, costs, actions, suits, or demands and any related losses, damages, judgments, Tax assessments, penalties, interest, and expenses (including without limitation reasonable attorneys' fees) arising out of any claim, action, audit, investigation, inquiry, or other proceeding instituted by a person or entity that arises out of or relates to (a) any actual or alleged breach of your representations, warranties, or obligations set forth in this Agreement, (b) any actual or alleged infringement, misappropriation, or violation of any third-party rights or applicable law by your trademarks used in connection with the Service or your website or Application using the Service, (c) your use of the Service, (d) any transaction submitted by you through the Service, and (e) if you are a Provider, your Application and any transactions that you submit to our Service either for yourself or on behalf of another users.

 

  

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Seller Accounts

 

S1 Eligibility; Creating Accounts. Seller Accounts are only for commercial and business use for the sale of goods and approved services using Checkout by Amazon and any other products designated by us. Seller Accounts may not send payments to any other user. Seller Accounts will not be linked to any Personal Account or Business Account that you open, so you will need to access them separately. Seller Accounts may not send funds to other accounts. If your transaction volume exceeds $100,000 per year or you are deemed to be a commercial entity under the Network Rules, the Networks and our Processor(s) require that you agree to the additional terms and conditions between you and the Processor(s) under the Credit Card Association Agreement below. You are the seller of record for any sales you conduct using the Service.

 

S2 Account History. Summaries of account activity are available in Seller Central.

 

S3 Receiving Payments.

 

S3.1 Payment Processing Agency Appointment. You hereby appoint us as your payment processing agent for the limited purpose of receiving payments on your behalf from users that authorize payments to you directly or to third-party services that enable transactions with you. Users will receive a receipt upon payment that will indicate that payment has been made on the applicable date. Our obligation to remit funds collected by us on your behalf shall be limited to funds that we have actually received and that are not subject to Chargeback or reversal, and we shall have no obligation to pursue any collection action against any user. Receipt of funds from users by us on your behalf in connection with Service transactions shall be deemed receipt of funds from users by you and will satisfy the obligations owed to you by users in the amount of the applicable payment by the user, even if we fail to remit such funds received from users.

 

S3.2 Accepting Cards. You will comply with our Card processing policies, procedures, and instructions as published on our Site or Seller Central or provided to you from time to time. As a condition of accepting Cards using the Service, you agree to follow all applicable rules and regulations of the Networks, as amended from time to time, that are provided to you or are generally available to the public (including merchant rules posted on usa.visa.com, www.mastercard.com, www.americanexpress.com, and www.discover.com) ("Network Rules"). We may remove or add Cards or other payment methods that we accept at any time without prior notice. Except as permitted by Network Rules or applicable law, you will not (a) establish limits below which you will not accept a Card, (b) assess a surcharge for the use of a Card in connection with any transaction, or (c) dispense cash on any Card transaction. We will only process Cards that receive an authorization from the applicable Network or Card issuer. An authorization does not guarantee that such transaction will be collectible or that the cardholder is actually authorized to use the Card or that the transaction will not be subject to Chargeback.

 

  

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S3.3 Order Processing. Subject to the terms of this Agreement, we will process all payments and refunds for your transactions submitted through the Service. You are responsible for all information regarding goods or services that you sell, including without limitation any product names or descriptions, UPC or product codes, product notices or disclaimers, prices, product availability or status, shipping and handling charges and tax rates (collectively, "Product Information") and for providing accurate and complete Product Information to customers. You will route all order-related payments through us and not make offline adjustment requests. For each order that you send to us, the Product Information must be the same as what was presented to the purchaser when placing the order. Our, or one of our Affiliates', name will appear on the customer's Card statement (which may also display, at our option, your name). We will determine the time at which we process payments and refunds for your transactions.

 

S3.4 Delivery Errors and Nonconformities; Product Recalls. You are responsible for any non-delivery, misdelivery, theft or other mistake or act in connection with the fulfillment and delivery of your goods or services, except to the extent caused by (a) Card fraud for which we are responsible under Section S5, or (b) our failure to make available to you transaction information as it was received by us. You are also responsible for any non-conformity or defect in, or any public or private recall of, any of your goods or services. You will notify us promptly as soon as you have knowledge of any public or private recalls of your goods or services.

 

S3.5 Refunds and Returns.

 

S3.5.1 Your Obligations. You will accept and process returns of, and provide refunds and adjustments for, your goods or services in accordance with this Agreement and your policies posted on your website at the time of the applicable sale, and you will calculate and refund any associated taxes required to be refunded. You will route all refund (and adjustment) payments through us. We or our designated Affiliate will credit the applicable account, and you will reimburse us for all amounts so refunded. We have no obligation to accept any returns of any of your goods or services.

 

S3.5.2 Card Refunds. Unless otherwise permitted by Network Rules, you will (a) maintain a fair policy for the return or cancellation of merchandise or services and adjustment of Card sales, (b) disclose your return or cancellation policy to your customers at the time of purchase, (c) not give cash refunds to a customer in connection with a Card sale, unless required by law, and (d) not accept cash or any other consideration for preparing a refund to be deposited to a customer's account in connection with a Card sale. The amount of the refund/adjustment cannot exceed the amount shown as the total on the original sales data except by the exact amount required to reimburse the customer for postage that the customer paid to return merchandise. If you accept returns and are making an uneven exchange of merchandise (e.g., the sales price is not the same), you must issue a credit for the total amount of the merchandise being returned and complete a new sale for any new merchandise.

 

  

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S3.6 Customer Service. Unless provided otherwise elsewhere in this Agreement, you will be solely responsible for all customer service issues relating to your goods or services, order fulfillment, order cancellation by you or customer, returns, refunds and adjustments, and feedback concerning experiences with your personnel, policies or processes. In performing customer service, you will always present yourself as a separate entity from us. As between you and us, we will be solely responsible for all customer service issues relating to any Payment Account, payment, Card processing, debiting or crediting, and Buyer Dispute Program.

 

S3.7 Amazon.com Associates Program. Our Service may permit you to advertise products offered on Amazon.com through the Amazon.com Associates Program and receive referral fees for eligible products. To use this service feature, you are required to register with the Amazon.com Associates Program and use your Amazon.com Associates ID. You will not be able to select individual items. Your participation in the Amazon.com Associate Program, including the payment of any referral fees, is subject solely to the terms and conditions governing the Amazon.com Associates Program, including the Associates Operating Agreement.

 

S4 Withdrawals. Subject to restrictions described in this Agreement, we will automatically disburse to your Bank Account funds for a transaction submitted to us 14 days after the first business day on which the transaction is completed and to the extent we have received payment (less any fees due). Payments will be made only to a Bank Account.

 

S5 Payment Protection Policy. We will not hold you liable for Chargebacks if you and the transactions meet all the following requirements: (a) the transaction must be for the sale of physical goods (e.g., books, DVDs, etc.) and not for intangible goods (e.g., services, digital content, or cash equivalents such as gift cards), (b) Chargebacks (whether for transactions involving Cards or reversals on bank account transfers) are disputed and classified as "Unauthorized Payment" and not any other way (e.g., "significantly not as described," "merchandise is defective," or "non-receipt of merchandise"), (c) you must provide all requested information within the time limit specified by us, including without limitation valid proof of delivery, and (d) you have not violated the terms of this Agreement.

 

  

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S6 Use of Trademarks. Subject to the terms of this Agreement and provided your Seller Account is in good-standing, we grant you a non-exclusive, non-transferable, non-assignable, non-sublicenseable, revocable license to use the Trademarks on your website, solely in connection with the Service and solely in accordance with our trademark guidelines and such other documentation as we may make available from time to time; provided the names of those domains and subdomains do not contain any of our Trademarks or any other trademark of Amazon or its Affiliates, or any confusingly similar trademark ("Trademark License"). We may add, substitute, or remove Trademarks from time to time, and you agree that you will add, substitute, or remove any Trademarks, as we reasonably request, as promptly as reasonably possible. You acknowledge that we and our Affiliates are the sole owners of the Trademarks, and you agree to do nothing inconsistent with that ownership. Your use of the Trademarks and all goodwill arising out of your use of the Trademarks will inure to the sole benefit of us and our Affiliates, and will not create for you any right, title, or interest in the Trademarks. You may not use the Trademarks in connection with any product or service other than the Service, or in any manner that is likely to (a) cause consumer confusion, (b) dilute the value of any Trademark, (c) impair our ownership or rights in the Trademarks, or (d) disparage or discredit us or our Affiliates. You may not modify or alter any Trademark, nor shall you combine any Trademark with any other trademark, word, symbol, letter, or design. You may not use any of our Trademarks or any other trademark of Amazon.com, Inc. or its Affiliates, or any confusingly similar trademark, in the name of any domain name or subdomain. You must use or display the Trademarks in a manner consistent with the level of quality historically associated with our Trademarks, and you must undertake any steps as we may reasonably request to assist us in monitoring the quality of any of your products or services for which the Trademarks are used. We have the right to monitor your use of the Trademarks and the right to take all action we deem necessary to ensure that the products or services for which you use the Trademarks are not diluting the value of any Trademark. We may revoke this Trademark License at any time in our sole discretion. We and our Affiliates may use your name, logo, service name, or trademarks as designated by you solely as necessary to provide the Service in accordance with our Specifications and other Policies (including without limitation in co-branded web pages used to process orders). We and our Affiliates may use your name or logo on any platform to identify you as a participating merchant.

 

S7 Additional Representations and Warranties. You represent and warrant to us that: (a) any sales transaction submitted by you will represent a bona fide sale by you as described on your website or application, (b) any sales transactions and all Product Information submitted by you will accurately describe the goods and/or services sold and delivered to a purchaser, (c) you will accurately describe your use of Personal Information and your use of the Service in your privacy policy, (d) except in the ordinary course of business, no sales transaction submitted by you through the Service will represent a sale to any principal, partner, proprietor, or owner of you, and (e) you will not and will not authorize any other party to use any Public Software in any manner that requires, pursuant to the license applicable to such Public Software, that the Service or any Amazon Payments Materials be disclosed, licensed, distributed or otherwise made available to anyone. "Public Software" means any software, documentation or other material that contains, or is derived (in whole or in part) from, any software, documentation or other material that is distributed as free software, open source software (e.g., Linux) or similar licensing or distribution models, including, but not limited to software, documentation or other material licensed or distributed under any of the following licenses or distribution models, or licenses or distribution models similar to any of the following: (i) the GNU General Public License (GPL); Lesser/Library GPL (LGPL), or Free Documentation License; (ii) The Artistic License (e.g., PERL); (iii) the Mozilla Public License; (iv) the Netscape Public License; (v) the Sun Community Source License (SCSL); (vi) the Sun Industry Standards License (SISL); (vii) the BSD License; and (viii) the Apache License.

 

  

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S8 Indemnity. You will indemnify, defend, and hold harmless us and our Affiliates (and our and their respective employees, directors, agents, and representatives) from and against any and all claims, costs, actions, suits, or demands and any related losses, damages, judgments, Tax assessments, penalties, interest, and expenses (including without limitation reasonable attorneys' fees) arising out of any claim, action, audit, investigation, inquiry, or other proceeding instituted by a person or entity that arises out of or relates to (a) any actual or alleged breach of your representations, warranties, or obligations set forth in this Agreement, (b) any actual or alleged infringement, misappropriation, or violation of any third-party rights or applicable law by your trademarks used in connection with the Service or your website or Application using the Service, (c) your use of the Service, and (d) any transaction submitted by you through the Service.

 

S9 Amendment. In addition to posting modifications to the Site, we may post modifications relating to Seller Accounts at Seller Central, and the modification will become effective upon the earlier of posting it to our Site, Seller Central, or otherwise communicating it to you, and you will be deemed to accept the modification if you use the Site, Seller Central, or Service after it has been posted.

 

The following agreement only applies to you if you have a Business Account or Seller Account and your transaction volume exceeds $100,000 per year or you are deemed to be a commercial entity under the Network Rules.

 

CREDIT CARD ASSOCIATION AGREEMENT

 

This Credit Card Association Agreement is a separate agreement between you ("you") and one or more providers of settlement and processing services ("Processor") used by Amazon Payments, Inc. ("Amazon Payments") to provide payment processing services to you. It applies to payment transactions that involve credit cards, debit cards, and other evidence of an account that both bear a logo of MasterCard International Incorporation, Visa U.S.A., Inc., or Visa International (the "Associations") and are issued by an Association member (each, a "Card"). The Associations require that you enter into this separate agreement with the Processor to use Amazon Payments services. For purposes of this Credit Card Association Agreement, "Processor" includes Paymentech L.P. and/or any other payment processing provider that Amazon Payments notifies you is processing Card transactions for you.

 

By registering for and using your Account with Amazon Payments, you agree to the terms and conditions of this Credit Card Association Agreement and all incorporated agreements, documents, or policies.

 

A. Relationship to User Agreement. Processor's Card processing services are part of the services made available to you as a "commercial entity" defined by the Associations' Rules (described below) and as a holder of the Payment Account pursuant to your User Agreement with Amazon Payments. The terms of this Credit Card Association Agreement are separate and in addition to the terms of the User Agreement. With respect to Card transactions processed by Processor, you agree to adhere to the applicable terms and conditions of the User Agreement and all associated policies of Amazon Payments.

 

  

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B. Term; Termination. This Credit Card Association Agreement is effective as of date you were approved for an Account and continues so long as you maintain an Account. This Credit Card Association Agreement will terminate immediately upon the termination or expiration of the User Agreement or if your Account is closed. Processor may terminate this Credit Card Association Agreement or otherwise suspend its processing services to you if (a) you breach any term or condition of this Credit Card Association Agreement or the User Agreement related to the processing of Cards, including without limitation the violation of Association Rules (described below), or (b) the agreement between Processor and Amazon Payments regarding the Processor's payment processing services for Cards transactions terminates or expires. Sections D through H will survive any termination of this Credit Card Association Agreement.

 

C. Associations. The Associations require that you will comply with all bylaws, rules, and regulations of the Associations, as may be applicable to you and your Card transactions and as are in effect from time to time ("Association Rules"). You understand that Processor may be required to modify this Credit Card Association Agreement in order to comply with requirements imposed by the Association Rules. You may use the logos of the Associations only in the manner authorized by the Associations and to indicate that Cards of the Associations are accepted as methods of payment using the Amazon Payments service.

 

D. Cardholder Data. As a part of Amazon Payments' services you may not have access to certain information associated with Cards being processed, including without limitation account number, expiration date, and the card verification value (CVV2/CVC2) (collectively, "Cardholder Data"). You will not solicit, collect, store, or disclose Cardholder Data except as expressly permitted by Amazon Payments, Processors, the Association Rules, and applicable law. If you are given access to Cardholder Data, you must exercise reasonable care to prevent disclosure of Cardholder Data, other than to your agents and contractors for the purpose of assisting you in completing a Card transaction, or to the applicable Association, or as specifically required by law. You may not use any Card or Cardholder Data other than for the sole purpose of completing the transaction authorized by the customer for which the information was provided to you, or as specifically allowed by Association Rules, or required by law. To the extent you have access to Cardholder Data, Association Rules require you to comply with all security standards and guidelines that may be published from time to time by the Associations, including without limitation the PCI Data Security Standard and Visa U.S.A. Cardholder Information Security Program (collectively, the "Security Guidelines"). Your failure to comply with these Security Guidelines may result in fines and/or penalties being levied against you or against us because of you actions by the Associations.

 

E. Indemnification. You agree to indemnify and hold harmless Processor against all claims, actions, demands, losses, liabilities, damages, and expenses arising from or related to (a) any breach of any obligation under this Credit Card Association Agreement or the User Agreement (related to Card transactions processed by Processor), including without limitation any violation of Association Rules; (b) any misrepresentation or fraud by you in applying for or maintaining an Account, your submission of Card transactions for processing, or the operation of your business; or (c) your provision or sale of goods or services to cardholders for Cards transactions processed by Processor.

 

  

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F. Warranty Disclaimer. Processor makes no representations or warranties, whether express or implied, regarding any service provided directly or indirectly to you, including without limitation, any warranties of merchantability, fitness for a particular purpose, title or non-infringement or implied warranties arising from a course dealing or trade usage.

 

G. Limitation of Liability. To the extent allowed by law, Processor and its affiliates, directors, officers, and employees will not be liable for any indirect, incidental, punitive, or consequential damages arising out of or related to this Credit Card Association Agreement or Processor's payment services, including without limitation any inability, delay, or errors in using the services.

 

H. General Provisions. This Credit Card Association Agreement will be binding upon and will inure to the benefit of the parties' respective representatives, successors, and assigns. This Credit Card Association Agreement may not be amended except by Processor upon notice to you, and your continued use of Amazon Payments' services after such notice constitutes your acceptance of such amendment. The failure of a party to this Credit Card Association Agreement to object to or to take affirmative action with respect to any conduct of the other party that is in violation of the terms of this Credit Card Association Agreement will not be construed as a waiver thereof, or as waiver of any future breach or subsequent wrongful conduct. If any term or condition of this Credit Card Association Agreement should be held invalid by a court, arbitrator, or tribunal of competent jurisdiction in any respect, such invalidity will not affect the validity of any other term or condition hereof. If any term or condition of this Credit Card Association Agreement should be held to be unreasonable as to time, scope, or otherwise by such a court, arbitrator, or tribunal, it will be construed by limiting or reducing it to the minimum extent so as to be enforceable under then applicable law. As between you and Paymentech, this Credit Card Association Agreement will be governed by and construed in accordance with the laws of the State of Texas, without regard to its choice of law rules. This Credit Card Association Agreement and all referenced documents constitute the entire understanding between you and Processor and supersede any and all agreements or understanding, whether in writing or otherwise, relating specifically to the subject matter hereof.

 

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