POLICIES & PROCEDURES
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- Darleen Bradford
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1 POLICIES & PROCEDURES Revised Policies & Procedures_EN_
2 Table of Contents POLICIES & PROCEDURES INTRODUCTION Mutual Commitment Statement Zurvita Policies and Compensation Plan Inclusions Purpose of Policies Changes, Amendments, and Modifications Delays Effective Date BASIC PRINCIPLES Becoming A Zurvita Independent Consultant New Independent Consultant Enrollment Rights Granted Identification Numbers Renewals and Expiration of the Independent Consultant Agreement Business Entities Independent Business Relationship; Indemnification for Actions Insurance Errors or Questions ZURVITA'S INDEPENDENT CONSULTANT RESPONSIBILITIES Correct Addresses Training and Leadership Constructive Criticism; Ethics Reporting Policy Violation Sponsorship Cross-line Sponsoring Prohibition Adherence to the Zurvita Compensation Plan Adherence to Laws and Ordinances Compliance with Applicable Income Tax Laws One Zurvita Business per Independent Consultant Actions of Household Members or Affiliated Parties Solicitation for Other Companies or Products Presentation of the Zurvita Opportunity Policies & Procedures_EN_ Page 2
3 3.14 Sales Requirements are governed by the Compensation Plan ORDERING General Order Policies Insufficient Funds Sales Tax Obligation PAYMENT OF COMMISSIONS & BONUSES Bonus and Commission Qualifications Computation of Commissions and Discrepancies Adjustments to Bonuses and Commissions for Returned Products CREDIT CARD TRANSACTIONS Chargebacks SATISFACTION GUARANTEED AND RETURN OF SALES AIDS Customer Return Refund PRIVACY POLICY Introduction Expectation of Privacy Employee Access to Information Restrictions on the Disclosure of Account Information PROPRIETARY INFORMATION AND TRADE SECRETS Business Reports, Lists, and Proprietary Information Obligation of Confidentiality Breach and Remedies Return of Materials ADVERTISING, PROMOTIONAL MATERIAL, USE OF COMPANY NAMES AND TRADEMARKS Labeling, Packaging, and Displaying Products - Zero Tolerance Use of Company Names and Protected Materials Faxes and - Limitations Internet and Third-Party Website Restrictions Advertising and Promotional Materials Social Media, Website and Internet Testimonial Permission Telemarketing - Limitations Policies & Procedures_EN_ Page 3
4 11.0 INTERNATIONAL MARKETING International Marketing Policy CHANGES TO AN INDEPENDENT CONSULTANT BUSINESS Modification of the Independent Consultant Agreement Change Sponsor for Active Independent Consultants Change Sponsor or Placement for Inactive Independent Consultants Change Organizations Unethical Sponsoring Sell, Assign or Delegate Ownership Separating a Zurvita Business Succession Resignation/Voluntary Cancellation Dynamic Compression & Roll-Up Effect of Cancellation DISCIPLINARY SANCTIONS Imposition of Disciplinary Action - Purpose Consequences and Remedies of Breach DISPUTE RESOLUTION Grievances Suspension and Termination Process Arbitration Severability Waiver Successors and Claims GOVERNING LAW MONTANA RESIDENTS LOUISIANA RESIDENTS ZURVITA GLOSSARY OF TERMS INTRODUCTION 1.1 Mutual Commitment Statement Policies & Procedures_EN_ Page 4
5 Zurvita Inc. ( Zurvita ) is a direct selling company marketing wellness products to customers through Independent Consultants. Zurvita recognizes that in order to develop a long-term and mutually rewarding relationship with its business owners ( Independent Consultants ) and customers, Zurvita and the Independent Consultants must acknowledge and respect the true nature of the relationship. A. In the spirit of mutual respect and understanding, Zurvita is committed to: 1. Provide prompt, professional and courteous service and communications to all of its Independent Consultants and customers; 2. Provide the highest quality products, at fair and reasonable prices; 3. Exchange or refund the purchase price of any product as provided in our Customer Return Policy as referred to in Section 6.1; 4. Deliver orders promptly and accurately; 5. Pay commissions accurately and on a timely basis; 6. Expedite orders if an error or unreasonable delay occurs; 7. Roll out new products and programs with Independent Consultant input; 8. Implement changes in the Compensation Plan or Policies and Procedures that affect the Independent Consultant with input from the Independent Consultants; 9. Support, protect and defend the integrity of the Zurvita Business Opportunity; 10. Offer Independent Consultants an opportunity to grow with Zurvita with such growth guided by the principles of Servant Leadership. B. In return, Zurvita expects that its Independent Consultants will: 1. Conduct themselves in a professional, honest, and considerate manner; 2. Present Zurvita corporate and product information in an accurate and professional manner; 3. Present the Compensation Plan and Return Policy in a complete and accurate manner; 4. Not make exaggerated income and product claims. An Independent Consultant shall never imply that any of the Zurvita products are designed to prevent, treat, cure or mitigate any diseases. Health claims related to various diseases will not be acceptable. Policies & Procedures_EN_ Page 5
6 5. Make reasonable efforts to support and train Independent Consultants and customers in their down-line; 6. Not engage in cross-line sponsoring, unhealthy competition or unethical business practices; 7. Provide positive guidance and training to Independent Consultants and customers in their down-line while exercising caution to avoid interference with other down-lines. 8. Support, protect, and defend the integrity of the Zurvita Business Opportunity; 9. Accurately complete and submit the Independent Consultant agreement and any requested supporting documentation in a timely manner. 1.2 Zurvita Policies and Compensation Plan Inclusions A. Throughout these Policies, when the term Agreement is used, it collectively refers to the: Zurvita Independent Agreement Terms of Agreement These Policies and Procedures The Zurvita Compensation Plan. B. It is the responsibility of the sponsoring Independent Consultant to provide the most current version of these Policies and Procedures (available on the Zurvita Website) and the Zurvita Compensation Plan to each applicant prior to his or her execution of an Independent Consultant agreement. 1.3 Purpose of Policies A. Zurvita is a direct sales company that markets products through independent business owners referred to as Independent Consultants. To clearly define the relationship that exists between Independent Consultants and Zurvita, and to explicitly set a standard for acceptable business conduct, Zurvita has established these Policies and Procedures. B. Zurvita Independent Consultants are required to comply with: 1. All of the Terms of Agreement set forth in the Independent Consultant Agreement, which Zurvita may amend in its sole discretion in the cooperative spirit of the Zurvita culture; 2. All Federal, state, provincial, territorial, and local laws governing his or her Zurvita business; Policies & Procedures_EN_ Page 6
7 3. These Policies and Procedures 4. Compensation plan C. Zurvita Independent Consultants must review the information in these Policies and Procedures carefully. Should an Independent Consultant have any questions regarding a policy or rule, the Independent Consultant is encouraged to seek an answer from his or her sponsor or any other upline Independent Consultant. If further clarification is needed the Independent Consultant may contact Zurvita Consultant Services: By phone: By Compliance@Zurvita.com 1.4 Changes, Amendments, and Modifications A. Because federal, state, and local laws, as well as the business environment, periodically change, Zurvita reserves the right to amend the Agreement and the prices in its Zurvita Product Price listed on the official website in its sole and absolute discretion. Notification of amendments shall appear in Official Zurvita materials. B. Any such amendment, change, or modification shall be effective immediately upon notice by one of the following methods: 1. Posting on the official Zurvita Website 2. Electronic mail ( ) 3. In writing through the Zurvita newsletters or other Zurvita communication channels C. Once an Independent Consultant accepts their commissions, this indicates acceptance of the changes, amendments and modifications. 1.5 Delays Zurvita shall not be responsible for delays or failures in performance of its obligations when such failure is due to circumstances beyond its reasonable control. This includes, without limitation, strikes, labor difficulties, transportation difficulties, riot, war, fire, and weather, curtailment of a source of supply, or government decrees or orders. Policies & Procedures_EN_ Page 7
8 1.6 Effective Date These Policies and Procedures shall become effective as of October 31, 2013 and, at such time, shall automatically supersede any prior Policies and Procedures (the old Policies and Procedures ), and, on that date, the old Policies and Procedures shall cease to have any force or effect. 2.0 BASIC PRINCIPLES 2.1 Becoming A Zurvita Independent Consultant A. To become an Independent Consultant, an applicant must comply with the following requirements: 1. Be of the age of majority (not a minor) in his or her state of residence or have written permission by the applicant's legal guardian and at the discretion of Zurvita minor applicants must submit a completed Zurvita Minor Application Form. 2. Reside or have a valid address in the United States, a U.S. territory, or Canada 3. Have a valid Social Security Number, Federal Tax ID Number, Taxpayer Identification Number (TIN) or Social Insurance Number (SIN) 4. Submit a properly completed and executed Independent Consultant Agreement to Zurvita either online or on a paper application 5. Not be a Zurvita employee 2.2 New Independent Consultant Enrollment A. A potential new Independent Consultant may self-enroll on the sponsor s website. In such event, instead of a physically signed Independent Consultant Agreement, Zurvita will accept the web enrollment and Independent Consultant Agreement by accepting the electronic signature stating the new Independent Consultant has accepted the terms and conditions of such Independent Consultant Agreement. Please note that such electronic signature constitutes a legally binding agreement between the Independent Consultant and Zurvita. B. Zurvita reserves the right to require signed paperwork for any account, regardless of origin. C. If requested the signed Independent Consultant Agreement must be received by Zurvita within 14 days of enrollment. Policies & Procedures_EN_ Page 8
9 D. Signed documents, including but not limited to Independent Consultant agreements, are legally binding contracts, which must not be altered, tampered with or changed in any manner after they have been signed. False or misleading information, forged signatures or alterations to any document, including business registration forms, made after a document has been signed may lead to sanctions, up to and including involuntary termination of the Independent Consultant s position. E. Zurvita reserves the right at, it's sole discretion, to limit the number of accounts paid for by any one Consultant. F. Customer centered services and products are offered through Zurvita. The Company's program is built upon retail sales of product and services to the ultimate customer. Independent Consultants must fulfill published personal and down-line retails sales requirements to qualify for bonuses, overrides or advancements. 2.3 Rights Granted A. Zurvita hereby grants to the Independent Consultant a non-exclusive right, based upon the terms and conditions contained in the Independent Consultant Agreement and these Policies and Procedures, to: 1. Purchase Zurvita products 2. Promote and sell Zurvita products 3. Sponsor new Independent Consultants and customers in the United States, and in countries where Zurvita may become established after the effective date of these Policies and Procedures 2.4 Identification Numbers A. Each Independent Consultant is required to provide his or her Social Security Number, or Federal Tax Identification Number, if located in the United States or any of its territories, to Zurvita on the Independent Consultant Agreement. Zurvita reserves the right to withhold commission payments from any Independent Consultant who fails to provide such information or who provides false information. B. Upon enrollment, Zurvita will provide a Zurvita Identification Number to the Independent Consultant. This number will be used to place orders, structure organizations, and track commissions and bonuses. 2.5 Renewals and Expiration of the Independent Consultant Agreement Policies & Procedures_EN_ Page 9
10 A. If the Independent Consultant allows his or her agreement to expire due to nonpayment of annual renewal fee or does not meet the volume requirements, the Independent Consultant will lose any and all rights to his or her down-line organization unless the Independent Consultant re-activates within 60 days following the expiration of the agreement. B. If the former Independent Consultant re-activates within the 60-day time limit, the Independent Consultant will resume the rank and position held immediately prior to the expiration of the Independent Consultant Agreement. However, such Independent Consultant s paid as level will not be restored unless he or she qualifies at that payout level in the new month. The Independent Consultant is not eligible to receive commissions for the time period that the Independent Consultant s position was expired. C. The down-line of the expired Independent Consultant will roll-up to the immediate upline sponsor after the 60 days. D. Independent Consultants must renew their status annually. The annual renewal fee is $25 due on the anniversary date of acceptance of the Independent Consultant Agreement. Zurvita may charge a renewal fee and/or require that Independent Consultant execute a new Independent Consultant Agreement upon renewal. Independent Consultants not renewing by the renewal date shall be deemed to have voluntarily terminated their Independent Consultant relationship with the Company. If an Independent Consultant has $1,000 of personal group volume in an anniversary year (every 12 months) their annual renewal fee is waived. 2.6 Business Entities A. A corporation, partnership, LLC, or trust (collectively referred to as a Business Entity ) may apply to be a Zurvita Independent Consultant. This Independent Consultant business and position will remain temporary until the proper documents are submitted. The entity must submit one of the following documents: Certificate of Incorporation, Articles of Organization, Partnership Agreement or appropriate trust documents. Zurvita must receive these documents within 14 days from the date the Independent Consultant Agreement was signed. In the event that the proper documentation is not submitted, Zurvita will hold commissions until the paperwork has been submitted. B. A Zurvita Independent Consultant may change its status under the same sponsor from an individual to a partnership, LLC, corporation, trust or from one type of business entity to another. C. An Independent Consultant may operate or have an ownership interest, legal or equitable, as a sole proprietorship, partner, shareholder, trustee, or beneficiary, in only one Zurvita business 2.7 Independent Business Relationship; Indemnification for Actions Policies & Procedures_EN_ Page 10
11 A. The Zurvita Independent Consultant is an independent contractor, and not a purchaser of a franchise or business opportunity. Therefore, each Independent Consultant s success depends on his or her independent efforts. B. The agreement between Zurvita and its Independent Consultants does not create an employer/employee relationship, agency, partnership, or joint venture between Zurvita and the Independent Consultant. C. A Zurvita Independent Consultant shall not be treated as an employee of Zurvita for any purposes, including, without limitation, for Federal, state, or provincial tax purposes. All Independent Consultants are responsible for paying local, state, provincial, and Federal taxes due from all compensation earned as an Independent Consultant of Zurvita. Any other compensation received by Independent Consultants from Zurvita will be governed by applicable U.S. or Canadian tax laws (or the tax laws of any other applicable jurisdiction). The Independent Consultant has no express or implied authority to bind Zurvita to any obligation or to make any commitments by or on behalf of Zurvita. D. The Zurvita Independent Consultant is fully responsible for all of his or her verbal and written communications made regarding Zurvita products, services, and the compensation plan that are not expressly contained within official Zurvita materials. Independent Consultants shall indemnify and hold harmless Zurvita, its directors, officers, employees, and agents from any and against all liability including judgments, civil penalties, refunds, attorney fees and court costs incurred by Zurvita as a result of the Independent Consultant s unauthorized representations or actions. This Provision shall survive the termination of the Zurvita Independent Consultant Agreement. 2.8 Insurance A. Zurvita encourages Independent Consultants to consider insurance coverage for their business. A homeowner s insurance policy does not cover business related injuries, or the theft of, or damage to inventory or business equipment. Zurvita Independent Consultants need to contact their insurance agent to make certain their business property is protected. In most instances, this may be accomplished with a Business Pursuit endorsement to an existing homeowner s policy. 2.9 Errors or Questions A. If an Independent Consultant has questions about, or believes any errors have been made regarding commissions, bonuses, business reports, orders, or charges, Zurvita encourages the Independent Consultant to bring it to our attention so we may address the potential error immediately. The Independent Consultant must notify Zurvita in writing within 30 days of the date of the error or incident in question. Zurvita reserves the right at its sole discretion to Policies & Procedures_EN_ Page 11
12 address such errors, omissions or problems not reported within 30 days shall be deemed waived by the Independent Consultant. 3.0 ZURVITA'S INDENDENT CONSULTANT RESPONSIBILITIES 3.1 Correct Addresses A. It is the responsibility of the Independent Consultant or customer to make sure that Zurvita has the correct shipping address before any orders are shipped. B. An Independent Consultant or customer will need to allow up to 30 days for processing after the notice of address change has been received by Zurvita. C. An Independent Consultant or customer may be assessed a shipping fee for returned shipments due to an incorrect shipping address. 3.2 Training and Leadership A. Any Zurvita Independent Consultant who sponsors another Independent Consultant into Zurvita must perform an authentic assistance and training function to ensure his or her downline is properly operating his or her Zurvita business. Sponsoring Independent Consultants should have ongoing contact and communication with the Independent Consultants in their down-line organizations. Examples of communication may include but are not limited to: newsletters, written correspondence, telephone contact, team calls, voic , , personal meetings, accompaniment of down-line Independent Consultants to Zurvita meetings and training sessions and any other related functions. B. A sponsoring Zurvita Independent Consultant should monitor the Independent Consultants in his or her down-line organizations to ensure that down-line Independent Consultants do not make improper product or business claims, or engage in any illegal or inappropriate conduct. Upon request, such Independent Consultant should be able to provide documented support to Zurvita of his or her ongoing fulfillment of the responsibilities of a sponsor. C. Upline Independent Consultants are encouraged to motivate and train new Independent Consultants about Zurvita s products effective sales techniques, the Zurvita Compensation Plan and compliance with company Policies and Procedures. D. Zurvita's program is built upon retail sales of product to the ultimate consumer. Marketing product is a required activity in Zurvita and must be emphasized in all recruiting presentations. Independent Consultants must fulfill published personal and down-line retail sales requirements to qualify for bonuses, overrides or advancements. Policies & Procedures_EN_ Page 12
13 E. We emphasize and encourage all Independent Consultants to sell Zurvita s products to customers. F. Zurvita Independent Consultants that have not reached the rank of Regional Consultant are not permitted to create marketing tools and are required to use only company provided tools Independent Consultants who have achieved the rank of Regional Consultant or above, must submit all written sales aids, promotional materials, advertisements, websites and other literature to the Company for Company s authorization prior to use. Unless the Independent Consultant receives specific written authorization to use the material, the request shall be deemed denied. All Independent Consultants shall safeguard and promote the good reputation of Zurvita and its products. The marketing and promotion of Zurvita, the Zurvita opportunity, the Compensation Plan, and Zurvita products shall be consistent with the public interest, and must avoid all discourteous, deceptive, misleading, unethical or immoral conduct or practices. 3.3 Constructive Criticism; Ethics A. Zurvita desires to provide its Independent Consultants with the best products and Compensation Plan in the industry. Accordingly, Zurvita values constructive criticism and encourages the submission of written comments addressed to Zurvita Compliance department that specifically relates to Compliance. Other issues relating to customer service may be directed at customerservice@zurvita.com B. Negative and disparaging comments about Zurvita, its products or Compensation Plan, by Independent Consultants made to Zurvita, in the field or at Zurvita meetings or events, or disruptive behavior at Zurvita meetings or events, serve no purpose other than to dampen the enthusiasm of other Zurvita Independent Consultants. Zurvita Independent Consultants must not belittle Zurvita, other Zurvita Independent Consultants, Zurvita products, the Compensation Plan, or Zurvita directors, officers, or employees. Such conduct represents a material breach of these Policies and Procedures and may be subject to sanctions as deemed appropriate by Zurvita including involuntary termination. C. Zurvita endorses the following Code of Ethics: 1. A Zurvita Independent Consultant must show fairness, tolerance, and respect to all people associated with Zurvita, regardless of race, gender, social class or religion, thereby fostering a positive atmosphere of teamwork, good morale and community spirit. 2. An Independent Consultant shall strive to resolve business issues, including situations with upline and down-line Independent Consultants, by emphasizing tact, sensitivity, good will and taking care not to create additional problems. 3. Zurvita Independent Consultants must be honest, responsible, professional and conduct themselves with integrity. Policies & Procedures_EN_ Page 13
14 4. Zurvita Independent Consultants shall not make disparaging, negative, untrue or misleading statements about Zurvita, other Independent Consultants, Zurvita employees, products, sales and marketing campaigns, or the Compensation Plan, or make statements that unreasonably offend, mislead or coerce others. D. Zurvita may take appropriate action against an Independent Consultant if it determines, in its sole discretion, that an Independent Consultant s conduct is detrimental, disruptive, or injurious to Zurvita or to other Independent Consultants. 3.4 Reporting Policy Violation A. An Independent Consultant who observes a policy violation by another Independent Consultant should submit a written and signed letter or of the violation directly to the Zurvita Corporate office, Compliance Department at Compliance@Zurvita.com. The letter shall set forth the details of the incident as follows: 1. The nature of the violation 2. Specific facts to support the allegations 3. Dates 4. Number of occurrences 5. Persons involved 6. Supporting documentation B. Once the matter has been presented to Zurvita, it will be researched thoroughly by the Compliance Department and appropriate action will be taken if required. C. This section refers to the general reporting of policy violations as observed by other Independent Consultants for the mutual effort to support, protect, and defend the integrity of the Zurvita business and opportunity. If an Independent Consultant has a grievance or complaint against another Independent Consultant which directly relates to his or her Zurvita business, the procedures set forth in these policies must be followed. 3.5 Sponsorship A. The sponsor is the person who introduces an Independent Consultant or customer to Zurvita, helps them complete their enrollment, and supports and trains those in their down-line. Policies & Procedures_EN_ Page 14
15 B. Zurvita recognizes the sponsor as the name(s) shown on the first: 1. Physically signed Zurvita Independent Consultant agreement on file or 2. Electronically signed Independent Consultant agreement from a website or a Zurvita Independent Consultant s website. C. Zurvita recognizes that each new prospect has the right to ultimately choose his or her own sponsor, but Zurvita will not allow Independent Consultants to engage in unethical sponsoring activities. D. All active Independent Consultants in good standing have the right to sponsor and enroll others into Zurvita. 3.6 Cross-line Sponsoring Prohibition A. Cross-line sponsoring is defined as the enrollment into a different line of sponsorship of an individual, or business entity that already has a signed the Independent Consultant Agreement. Actual or attempted cross sponsoring is not allowed. If cross sponsoring is suspected, a fair and honest investigation will be opened by Zurvita. If cross-line sponsoring is verified, actions will be deemed by Zurvita once the investigation has been concluded. Zurvita may restore the cross sponsored person with their entire down-line back to the original sponsor. B. The use of a spouse s or relative s name, trade names, assumed names, DBA names, corporation, partnership, trust, Federal ID numbers, or fictitious ID numbers to evade or circumvent this policy is not permitted. 3.7 Adherence to the Zurvita Compensation Plan A. An Independent Consultant must adhere to the terms of the Zurvita Compensation Plan as set forth in these Policies and Procedures as well as in official Zurvita literature. Deviation from the Compensation Plan is prohibited. B. An Independent Consultant shall not offer the Zurvita opportunity through, or in combination with, any other system, program, co-ops, or method of marketing other than that specifically set forth in official Zurvita literature. C. An Independent Consultant shall not require or encourage a current or prospective customer or Independent Consultant to participate in Zurvita in any manner that varies from the Compensation Plan as set forth in official Zurvita literature. Policies & Procedures_EN_ Page 15
16 D. An Independent Consultant shall not require or encourage a current or prospective customer or Independent Consultant to make a purchase from or payment to any individual or other entity as a condition to participating in the Zurvita Compensation Plan, other than such purchases or payments required to naturally build their business. 3.8 Adherence to Laws and Ordinances A. Many cities and counties have laws regulating certain home-based businesses. In most cases, these ordinances do not apply to Independent Consultants because of the nature of the business. However, Independent Consultants must check their local laws and obey the laws that do apply to them. B. A Zurvita Independent Consultant shall comply with all Federal, state, and local laws and regulations in them conduct of his or her Zurvita business. 3.9 Compliance with Applicable Income Tax Laws A. Zurvita will automatically provide a complete 1099 Miscellaneous Income Tax form (nonemployee compensation) to each US Independent Consultant whose earnings for the year is at least $600 or who has purchased more than $5,000 of Zurvita products for resale or who received trips, prizes or awards valued at $600 or more. If earnings and purchases are less than stated above, IRS forms will be sent only at the request of the Independent Consultant, and a minimum charge of $20 may be assessed by Zurvita. Canadian T-4 s will be sent to Independent Consultants who earn more than $500 or who received trips, prizes, or awards valued at $500 or more. Zurvita Independent Consultants are responsible for the payment of taxes on these trips, prizes, or awards provided to them by Zurvita. B. An Independent Consultant accepts sole responsibility for and agrees to pay all Federal, state, provincial and local taxes on any income generated as an Independent Consultant, and further agrees to indemnify Zurvita from any failure to pay such tax amounts when due. C. If an Independent Consultant s business is tax exempt, the Federal Tax Identification number must be provided to Zurvita in writing. D. Zurvita encourages all Independent Consultants to consult with a tax advisor for additional information for their business and to pay quarterly taxes as required by the IRS One Zurvita Business per Independent Consultant A. An Independent Consultant may operate or have an ownership interest, legal or equitable, as a sole proprietorship, partner, shareholder, trustee, or beneficiary, in only one Zurvita business. No individual may have, operate or receive compensation from more than one Zurvita business. Policies & Procedures_EN_ Page 16
17 Individuals of the same family unit may each enter into or have an interest in their own separate Zurvita businesses. A family unit is defined as spouses and dependent children living at or doing business at the same address. B. The Company does not encourage husbands and wives to sponsor each other. However, this will be allowed with the following stipulation; the spouse must be signed up directly to their spouse and enrolled front line. They cannot be placed somewhere else in the down-line. C. Should a husband/wife Independent Consultant divorce, they jointly should notify the Company as to how the position is to be managed thereafter. The Company will continue to pay commissions in the same manner as before the divorce until it receives written notice signed by both parties or a court decree which specifies how future commissions should be paid Actions of Household Members or Affiliated Parties If any member of an Independent Consultant s immediate household engages in any activity which, if performed by the Independent Consultant, would violate any provision of the Agreement, such activity will be deemed unethical. Zurvita will proceed with a fair and honest investigation to ensure correct practices in regard to the Policies and Procedures and may take disciplinary action pursuant to these Policies and Procedures against the Independent Consultant. Similarly, if any individual associated in any way with a corporation, partnership, LLC, trust or other entity (collectively Business Entity ) violates the Agreement, such action(s) will be deemed a violation by the Business Entity, and Zurvita may take disciplinary action against the Business Entity. Likewise, if a Independent Consultant enrolls in Zurvita as a Business Entity, each Affiliated Party of the Business Entity shall be personally and individually bound to, and must comply with, the terms and conditions of the Agreement Solicitation for Other Companies or Products A. A Zurvita Independent Consultant may participate in other direct sales, multilevel, network marketing or relationship marketing business ventures or marketing opportunities. However, during the term of this Agreement and for one year thereafter, a Zurvita Independent Consultant must refrain from sponsoring or recruiting a Zurvita Independent Consultant or customer for any other direct sales or network marketing business. B. The term recruit above means actual or attempted solicitation, enrollment, encouragement, or effort to influence in any other way (either directly or through a third party), another Independent Consultant or customer to enroll or participate in any direct sales or network marketing opportunity. This conduct represents recruiting even if the Independent Consultant s actions are in response to an inquiry made by another Independent Consultant or customer. Policies & Procedures_EN_ Page 17
18 C. During the term of this Agreement and for a period of six months thereafter, any Zurvita Independent Consultant must not sell, or entice others to sell, any competing products including training materials, to Zurvita customers or Independent Consultants. Any product or service in the same category as a Zurvita product is deemed to be competing (i.e., any competing product regardless of differences in cost or quality.) D. A Zurvita Independent Consultant may not offer any non-zurvita opportunity at any Zurvita related meeting, seminar or convention, or immediately following a Zurvita event. E. A violation of any of the provisions in this section shall constitute unreasonable and unwarranted contractual interference between Zurvita and its Independent Consultants and would inflict irreparable harm on Zurvita. In such event, Zurvita may, at its sole discretion, impose any sanction it deems necessary and appropriate against such Independent Consultant or such Independent Consultant s positions including termination, or seek immediate injunctive relief without the necessity of posting a bond Presentation of the Zurvita Opportunity A. In presenting the Zurvita opportunity to potential customers and Independent Consultants, an Independent Consultant is required to comply with the following provisions: 1. An Independent Consultant shall not misquote or omit any significant material fact about the Compensation Plan. 2. An Independent Consultant shall make it clear that the Compensation Plan is based upon sales of Zurvita products. 3. An Independent Consultant shall make it clear that success can be achieved only through substantial independent efforts. 4. A Zurvita Independent Consultant shall not make unauthorized income projections, claims, or guarantees while presenting or discussing the Zurvita opportunity or Compensation Plan to prospective Independent Consultants or customers. 5. An Independent Consultant may not make any claims regarding any products offered by Zurvita, except those contained in official Zurvita literature. 6. When discussing or promoting Zurvita products, Independent Consultants may make only those representations found in literature published by Zurvita. You may also state that the products are safe when used as directed on the product labels. You may not state that any Zurvita product has been authorized by the U.S. Food and Drug Administration. The Independent Consultant agrees not to sell any unsealed product or dispense any products in self-created packaging. Policies & Procedures_EN_ Page 18
19 7. Statements suggesting that Zurvita products can be used to treat or remedy any illness, disease or medical condition are prohibited and shall be grounds for suspension or termination of your Independent Consultant position, at the sole discretion of Zurvita. 8. An Independent Consultant may not use official Zurvita material to promote the Zurvita business opportunity in any country where Zurvita has not opened that country officially for business. 9. In an effort to conduct best business practices, Zurvita has developed the Income Disclosure Statement ( IDS ). The Zurvita IDS is designed to convey truthful, timely, and comprehensive information regarding the income that Zurvita Independent Consultants earn. In order to accomplish this objective, a copy of the IDS must be presented to all prospective Independent Consultants. A copy or link to the IDS must be presented to a prospective Independent Consultant anytime the Compensation Plan is presented or discussed, or any type of income claim or earnings representation is made. The terms income claim and/or earnings representation (collectively income claim ) include: (1) statements of average earnings, (2) statements of non-average earnings, (3) statements of earnings ranges, (4) income testimonials, (5) lifestyle claims, and (6) hypothetical claims. Examples of statements of non-average earnings include, Our number one Independent Consultant earned over a million dollars last year or Our average ranking Independent Consultant makes five thousand per month. An example of a statement of earnings ranges is The monthly income for our higher ranking Independent Consultants is ten thousand dollars on the low end to thirty thousand dollars a month on the high end Sales Requirements Are Governed by the Compensation Plan A. Zurvita Independent Consultants may purchase Zurvita products and then re-sell them. Zurvita will provide suggested selling prices. There are no exclusive territories granted to anyone. No franchise fees are applicable to a Zurvita business. B. The Zurvita program is built on sales to end users. Zurvita encourages its Independent Consultants to only purchase inventory that they and their family will personally consume, will be used as a sales tool, or will be resold to others for their ultimate consumption. Independent Consultants must never attempt to influence any other Independent Consultant to buy more products than they can reasonably use or sell to retail customers in a month. C. Each Zurvita Independent Consultant commits to personally use, sell, or use in business building at least 70% of every order placed with the Company prior to placing another order, and must be able to certify to such if demanded by the Company. Purchasing product solely for Policies & Procedures_EN_ Page 19
20 the purpose of collecting bonuses or achieving rank is prohibited. Zurvita retains the right to limit the amount of purchases you may make if, in our sole judgment, we believe those purchases are being made solely for qualification purposes instead of for consumption or resale. D. Federal and state regulatory agencies do not endorse direct selling programs. Therefore, Independent Consultants may not represent that the Company's program has been authorized or endorsed by any governmental agency. 4.0 ORDERING 4.1 General Order Policies A. Bonus buying is strictly and absolutely prohibited. Bonus buying includes: (a) the enrollment of individuals or entities without the knowledge of and/or execution of an Agreement by such individuals or entities; (b) the fraudulent enrollment of an individual or entity as an Independent Consultant or customer; (c) the enrollment or attempted enrollment of non-existent individuals or entities as Independent Consultant or customers ( phantoms );; (d) purchasing Zurvita products or services on behalf of another Independent Consultant or customer, or under another Independent Consultant s or customer s ID number, to qualify for commissions or bonuses; (e) purchasing excessive amounts of goods that cannot reasonably be used or resold in a month; and/or (f) any other mechanism or artifice to qualify for rank advancement, incentives, prizes, commissions, or bonuses that is not driven by bona fide product purchases by end user consumers. An Independent Consultant shall not use another Independent Consultant s or customer s credit card or debit checking account to enroll in Zurvita or purchase products or services without the account holder s written permission. Such documentation must be kept by the Independent Consultant indefinitely in case Zurvita needs to reference this. B. Regarding an order with an invalid or incorrect payment, Zurvita will attempt to contact the Independent Consultant or customer by phone, mail or in order to obtain another form of payment. If these attempts are unsuccessful after 10 business days, the order will be canceled. C. Prices are subject to change without notice. D. An Independent Consultant or customer who is a recipient of a damaged or incorrect order must notify Zurvita within 30 calendar days from receipt of the order and follow the procedures as set forth in these Policies. E. The optional monthly recurring Independent Consultant fee including website will automatically be deducted from the credit card provided during the online application process, at the time the Independent Consultant joins the Company and optionally makes a product purchase. Policies & Procedures_EN_ Page 20
21 4.2 Insufficient Funds A. Any outstanding balance owed to Zurvita by an Independent Consultant or customer of the Independent Consultant from NSF (non-sufficient funds) insufficient fund fees (ACH) will be withheld by Zurvita from an Independent Consultant s future bonuses and commissions. B. If a credit card order or automatic debit is declined Zurvita, will send out an automatic notice advising of the declined payment. If the third attempt is unsuccessful, the account will be suspended until contacted to update information. 4.3 Sales Tax Obligation A. The Independent Consultant shall comply with all state and local taxes and regulations governing the sale of Zurvita products. B. Zurvita will collect and remit sales tax on Independent Consultant orders unless an Independent Consultant furnishes Zurvita with the appropriate Resale Tax Certificate form. When orders are placed with Zurvita, sales tax is prepaid based upon the suggested retail price. Zurvita will remit the sales tax to the appropriate state and local jurisdictions. The Independent Consultant may recover the sales tax when he or she makes a sale. Zurvita Independent Consultants are responsible for any additional sales taxes due on products marked up and sold at a higher price. C. Zurvita encourages each Independent Consultant to consult with a tax advisor for additional information for his or her business. 5.0 PAYMENT OF COMMISSIONS & BONUSES 5.1 Bonus and Commission Qualifications A. An Independent Consultant must be active and in compliance with Zurvita Policies and Procedures including the Compensation Plan, to qualify for bonuses and commissions. So long as an Independent Consultant complies with the Terms of the Agreement, Zurvita shall pay commissions to such Independent Consultant in accordance with the Compensation Plan. B. Zurvita will not issue commissions to an Independent Consultant without the receipt of an electronic application and acceptance of the Independent Consultant agreement. C. Zurvita reserves the right to postpone commission payments until such time the cumulative amount meets or exceeds $20. Policies & Procedures_EN_ Page 21
22 5.2 Computation of Commissions and Discrepancies A. In order to qualify to receive commissions and bonuses, an Independent Consultant must be in good standing and comply with the Terms of the Agreement and these Policies and Procedures. Commissions, over rides, and achievement levels are calculated each month. Bonuses are paid out weekly on the following Friday. B. A Zurvita Independent Consultant must review his or her monthly statement and bonus reports promptly and report any discrepancies within 30 days of receipt. C. For additional information on payment of commissions, please review the official Zurvita Compensation Plan. 5.3 Adjustments to Bonuses and Commissions for Returned Products A. An Independent Consultant receives bonuses and commissions based on the actual sales of products to end consumers and to Independent Consultants through product purchases. When a product is returned to Zurvita for a refund from the end consumer or by an Independent Consultant, the bonuses and commissions attributable to the returned product will be deducted from the Independent Consultant who received bonuses or commissions on such sales. Deductions will occur in the month in which the refund is given and continue every pay period thereafter until the commission is recovered. B. In the event that an Independent Consultant terminates his or her position, and the amounts of the bonuses or commissions attributable to the returned products have not yet been fully recovered by Zurvita, the remainder of the outstanding balance may be offset against any other amounts that may be owed by Zurvita to the terminated Independent Consultant. 6.0 Credit Card Transactions 6.1 Chargebacks When a bank forcibly reverses a credit card transaction, returning funds to the cardholder, it is known as a chargeback. Chargebacks are usually issued when fraudulent purchases have been made on a person's credit card. When Zurvita receives notice of a chargeback notice, the account in which the service was purchased is immediately blocked, and all related services in the account are terminated. In the interest of caution, Zurvita considers chargebacks to be the result of fraud and suspends all accounts until the issue is addressed. When a Consultant receives an advanced commission on any Zurvita product, they are subject to a clawback of any unearned commissions if the membership receives a refund at Policies & Procedures_EN_ Page 22
23 Company's discretion. Chargeback's will be deducted from any future commissions until chargeback's are relieved. Bonuses received by Consultants are subject to a 100% chargeback due to fraudulent business or unethical activity. 7.0 SATISFACTION GUARANTEED AND RETURN OF SALES AIDS Zurvita offers a 1 year refund policy for all Independent Consultants. If an Independent Consultant purchased a product and is not satisfied, the Independent Consultant may return all resalable items in exchange for a 90% refund on all Zurvita products with the exception of Builder's Paks, Quick Start Paks which are refunded at 70% of the wholesale value due to deep discounts associated with those bundles. If an Independent Consultant chooses to return resalable inventory, he or she is entitled to a refund if neither them nor us have terminated the Agreement and the products were purchased within twelve months and remain in resalable condition. Due to handling charges, 10% shall be deducted from the purchase price. Shipping charges incurred will not be refunded. Upon cancellation of the Agreement, the Independent Consultant may return all sales aids purchased within one (1) year from the date of cancellation for a refund if he or she is unable to sell or use the merchandise. An Independent Consultant may only return sales aids he or she personally purchased from the Company under his or her Z-Number, and which are in resalable condition. Upon receipt of the products and sales aids, the Independent Consultant will be reimbursed ninety percent (90%) of the net cost of the original purchase price(s), less shipping charges. If the purchases were made through a credit card, the refund will be credited back to the same account. The Company shall deduct from the reimbursement paid to the Independent Consultant any commissions, bonuses, rebates or other incentives received by the Independent Consultant which were associated with the merchandise that is returned. 7.1 Customer Return Refund All first-time orders of Zeal Wellness Canisters (both Preferred and Retail customers) come with a 30-day money back guarantee. This does not include the Zeal Weight Management Products (Zeal Burn, Zeal Cleanse, Zeal Advanced Formula Protein Shakes, and Zeal Weight Management Program). You must refund a Preferred or Retail customer s money immediately if asked to do so. (This does not include shipping and handling costs). Failure to do so may result in the suspension or termination of your Independent Consultant status, at the sole discretion of Zurvita. When you refund your customer, you will receive a replacement for the wellness product from Zurvita if you return the unused portion of the product along with a copy of the Retail Sales Receipt. Retail Customer Product Return forms are available in the Z-Center or from Consultant Services. You must request your replacement product within 30 days of the date you gave the refund to your Preferred or Retail customer. If a Preferred or Retail customer calls the corporate office to request a refund, Policies & Procedures_EN_ Page 23
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