Policies and Procedures
Effective January 23rd, 2013
30025 Alicia Parkway, Suite # 187
Laguna Niguel, CA 92677
CODE OF ETHICS
The NV3 Club (from time to time hereinafter referred to as the “Company”) has made a commitment to provide products and services of the finest quality backed with impeccable service. In turn, the Company expects Club Members (from time to time hereinafter referred to as “you”, “your” and “Member”) to reflect that image in their relationships with Consumers and other Members. As an NV3 Member you are generally free to operate your business as you see fit but it is to our mutual, long-term advantage if you accord to the highest standards of integrity and fair practice in your role as a Member. The Code of Ethics, therefore, states:
AS AN NV3 MEMBER:
-I will conduct my business in an honest, ethical manner at all times.
- I will make no representations about the benefits and savings associated with Company products or services other than those contained in officially-approved corporate literature and videos.
- I will provide support and encouragement to my customers to ensure that their experience with the Company is a successful one. I understand that it is important to provide follow-up service and support to my team.
- I will motivate and actively work with Team Members in my team to help them build their Company business.
- I will refrain from exaggerating my personal income or the income potential in general and will stress to potential Members the level of effort required to succeed in the business.
- I will not abuse the goodwill of my association with the Company to further and promote other business interests (particularly those which may be competitive to the Company) without the prior written consent of the Company.
- I will not make disparaging remarks about other products, services, Members, or companies; likewise, I will not willfully denigrate the activities or personalities of fellow Members.
- I will abide by all of the Company’s Policies and Procedures as included herein, or as may be amended from time to time.
Any violation of the above ethics is subject to disciplinary action up to and including termination of Membership.
REQUIREMENTS TO BECOME A MEMBER
Those applying to become Members must meet certain criteria prior to qualifying. Additionally, to become a successful Member, it is highly recommended that all applicants have a personal computer, email, and a major credit card.
All applicants must be the age of majority within the state in which he/she resides. Applicant must then submit the Member Application, which must be fully completed, including the applicant’s social security number (SSN), individual taxpayer identification number (TIN) or business FEIN number. For all non-US applicants this includes the SIN or INTL number. This also includes the acceptance of the Member Agreement and associated Policies & Procedures.
Applications are accepted as soon as they are submitted and entered into the Company’s database and if they are otherwise in compliance with the standards set forth in the Member Application. Once their application has been accepted, the Member will immediately be issued a Replicated Website, a unique Member ID #, and may immediately begin to sell Company products and refer other individuals to become NV3 Club Members.
If Company determines that any information contained in the Member’s application is inaccurate or untruthful, Company reserves the right to terminate the Membership in violation and seize all commissions which have yet to be paid to it.
When a Member’s income for a given year exceeds $600.00, he/she will be required to sign and submit a paper “hard copy” application, if one is not already on file, and to complete, sign and submit a Form W-9.
Individuals who are married may each have their own Memberships.
An individual Member may change to a business entity Member by notifying the Company.
Company reserves the right to accept or reject anyone as a Member.
Because Members are independent contractors, they may promote their business in any legal and ethical manner, and may market without Company approval, provided that (1) they do not use the corporate name, logo or trademarks; and (2) they use official Company Advertisements and Marketing Materials.
Notwithstanding, any Member advertisement which utilizes the Company name, logo or trademarks, must also clearly state, in close proximity to the Company name, logo or trademarks, the words “Member.” Members shall not answer their phone, nor carry on phone or email discussions, in any manner that would give callers reason to believe that they have reached, or are talking to, the Corporate Offices of the Company.
Only an official Company website, as provided by the Company to the Member, shall be used by the Member to carry on his/her business selling Company products. The Company website shall not be altered, nor linked to other websites which may contain information or statements regarding Company products which in themselves would be a violation of these Policies and Procedures. The Company strictly prohibits Members from utilizing other web sites to advertise or promote the products or opportunity, other than the official Member-provided Company site.
Members may not use automatic telephone dialing systems to call prospects for business purposes. Members are not allowed to mention specific names of other businesses, products, people, or celebrities, etc. in marketing or advertising or in any way state or imply that any of the foregoing are associated or affiliated with the Company.
Company expressly reserves the right to alter or amend wholesale prices, product availability and/or formulation, policies and procedures, and the compensation plan. Such amendments are automatically incorporated as part of the agreement between Company and the Member when published in official Company literature or on the official Company website.
3. ANNUAL MEMBERSHIP FEE
A Member is required to renew its Membership Agreement on the anniversary of the date he or she became A Member. The automatic membership renewal fee is $30.00. The term of the Member Agreement shall be one (1) year from the date of its acceptance by NV3 Club (subject to prior cancellation or reclassification for inactivity after ninety (60) days. A Member may renew the Member Agreement each year by paying an annual renewal fee equal to $30 on or before the anniversary date of the Agreement. If the Renewal Fee is not paid within thirty (30) days after the expiration of the current Term, the Agreement will be cancelled.
For the convenience of its Members, the Company has set up an optional auto-ship program. Reoccurring auto ship orders must be scheduled between the first (1st) and twenty-fifth (25th) of each month. Manual orders may be placed on any given day of any given month. All manual orders placed on the last day of any given month must be placed by 11:59PM PST for a Member to qualify for commissions for that month. Any changes to a Member’s auto ship must be submitted forty-eight (48) hours prior to auto ship date.
5. CHARGE BACKS
The Company may, in its sole and absolute discretion, immediately terminate Members responsible for credit card charge-backs. All commissions will be reversed from Member and entire Shared Team as a result of credit card charge-backs. If commissions have been paid to a Member and subsequent returns on products or services occur which cause refunds to be issued to the purchaser, the commissions overpaid will be charged back against the Member’s next check, or first check with available commissions to cover the refunds.
6. CHARGE BACKS
All commissions are paid on the tenth (10th) calendar day of each month (or the next business day thereafter if such date is not a business day) for the previous calendar month’s total commissions resulting from all Retail Rewards, Personal Rewards, and Team Rewards. All commissions earned from Retail Rewards, Personal Rewards, and Team Rewards will be paid retroactively based on the rank a Member has obtained by 11:59PM PST on the last day of each calendar month. A New Club Member cannot qualify for Team Rewards for the calendar month that they join the Company; new Club Members may only qualify for commissions generated from Retail Rewards and Personal Rewards.
In order to receive Personal Rewards during any calendar month, you must have either retailed or auto-shipped a minimum order of $100 in products.
In order to receive Team Rewards, you must be an Executive Member. An Executive Member is anyone who is on the Monthly Auto-Ship and/or who retails a minimum of $100 in products each month, and who has personally referred at least three (3) Associate Members who do the same thing.
7. COMMISSION PROCESSING FEES
There is a three dollar ($3.00) processing fee each time a commission or bonus is processed and transferred into A Member’s Paylution account. This fee will be automatically deducted from each commission or bonus paid.
Please note Paylution charges separate processing fees of one dollar ($1.00) per month for maintenance, and fifty cents ($0.50) per cash-out.
8. COMMISSION ISSUES
All commission disputes or errors generated by the Company’s computerized systems must be communicated and addressed in writing or by email to the Company administrative and support staff no later than 30 days after the respective commission payment. It is the responsibility of the Member to supply all essential supporting documentation.
A Member who cancels this agreement or is terminated shall receive full commissions and bonus for the last full pay period in which he/she was active prior to cancellation or termination less any amount(s) due the Company.
9. CONFIDENTIAL INFORMATION
The Company may, in its sole and absolute discretion, provide Members with information developed, compiled, maintained and/or otherwise acquired by the Company (including, without limitation, information concerning the Associate’s team) (“Confidential Information”). Such Confidential Information constitutes commercially advantageous, unique and proprietary trade secrets of the Company, which it keeps as proprietary and confidential. During the term of the Agreement between Member and the Company, the Company grants to Member a personal, non-exclusive, non-transferable and revocable right to use such Confidential Information to facilitate Member’s business as contemplated under the Agreement. Member acknowledges the substantial value of the Confidential Information to the Company and agrees to maintain all Confidential Information in strictest confidence and to use it only as authorized by the Company and as provided in the Agreement. Member will not disclose such information to any third party directly or indirectly, nor use the information to compete with the Company directly or indirectly. Member will only use the Confidential Information for the operation of the Member’s business pursuant to the Agreement. Upon the termination of the Agreement, Member shall promptly return any and all Confidential Information (and any and all copies thereof) to the Company. Further, Member shall permanently destroy any electronic copies of any such Confidential Information and, upon the Company’s request, will certify to the Company that such destruction is complete. The foregoing will survive the termination of the Agreement. The Company would not provide the above Confidential Information to the Member but for Member’s agreement to this provision.
10. GOVERNING LAWS
These policies and procedures are reasonably related to the laws of the State of California and shall be governed in all respects thereby. The parties agree that jurisdiction and venue shall be in Orange County, California.
11. MEMBER CHANGE OF ADDRESS
Members shall be responsible for immediately reporting any change of their contact information to the Company. Any changes that need to be made to personal information can be made through the Personal Back Office that the Company provides to all of its Members, or by contacting Customer Service.
12. INDIVIDUAL TAXES
Each Member is responsible for reporting and paying his/her taxes at the federal, state and local levels.
At the end of the calendar year, all Members earning $600 or more in commissions and or value of prizes during the calendar year will be issued a Form 1099, in accordance with Internal Revenue Service and Regulations.
Most homeowners policies, or automobile insurance policies, do not cover any losses associated with your business, such as to theft or damage to products or equipment either in your home office or when attending to business outside the home. The same holds true concerning business related injuries. Members are advised to check with their insurance providers to determine their specific coverage. Sometimes a “rider” can be placed on the policy to protect you in business related actions. The Company does not provide insurance for any of its Members.
- Members may use the Company web site.
- Members wishing to establish a domain name, web site, replicated site name, social networking presence (including, but not limited to, such sites as Facebook, My Space, etc.) or any other form of Internet identification which includes in whole or in part any the Company name or trademark or products or events or anything to do with the Company in any way, is strictly prohibited without the prior written consent of the Company.
15. INVALIDITY OF ANY PARAGRAPH
Should any portion of these Policies and Procedures, of the Member Application and Agreement, or any other instruments referred to herein or issued by the Company be declared invalid by a court of competent jurisdiction, the balance of such rules, applications, or instruments shall remain in full force and effect.
16. NETWORKING COOPERATION
It is to the advantage of the Members, as well as the Company, for Members to proactively cooperate with each other for the mutual success of the entire Company organization. Company supports an environment of teamwork and cooperation. No Member may disparage any other Member or offer individual bonuses/incentives in order to entice a prospective Member to join.
17. NOTICE OF CANCELLATION
You must give your Customer two copies of an official NV3 Club sales receipt (one to keep and one to send). The sales receipt should be dated and show your name and address. The receipt must be in the same language used in the sales presentation. The following cancellation notice must appear on the sales receipt and must be given verbally by you when making a retail sale to a Customer. You must comply with its terms.
NOTICE OF CANCELLATION
[ENTER DATE OF TRANSACTION] _________________________
You may CANCEL this transaction, without any Penalty or Obligation, within THREE BUSINESS DAYS from the above date.
If you cancel, any property traded in, any payments made by you under the contract or sale, and any negotiable instrument executed by you will be returned within 10 BUSINESS DAYS following receipt by the seller of your CANCELLATION NOTICE, and any security interest arising out of the transaction will be cancelled
If you cancel, you must make available to the seller, at your residence, any goods delivered to you under this contract or sale, or you may, if you wish, comply with the instructions of the seller regarding how to return shipment of the goods at the seller’s expense and risk.
If you do make the goods available to the seller and the seller does not pick them up within 20 days of the date of your CANCELLATION NOTICE, you may retain or dispose of the goods without any further obligation. If you fail to make the goods available to the seller, or if you agree to return the goods to the seller and fail to do so, then you remain liable for the performance of all obligations under the contract.
To cancel this transaction, mail or deliver a signed and dated copy of this CANCELLATION NOTICE, or any other written notice, or send telegram to:
Name of Member:
Address of Member’s place of business:
NO LATER THAN MIDNIGHT OF _____________________
I hereby cancel this transaction.
18. NOTICES FROM / TO COMPANY
As part of this Member Agreement, Company reserves the right to routinely communicate updates and notifications to its Members including, but not limited to, postal mail, electronic mail (or email), SMS text messages, and voice-broadcasts. Members may, at any time, elect to opt-out of any of the Company's correspondence channels.
All notices to the Company should be sent to the Corporate Offices at:
30025 Alicia Parkway, Suite # 187
Laguna Niguel, CA 92677
Attention: Customer Service
Customer Service Hours: 9AM – 5PM PST, Monday – Friday
19. NUMBER OF MEMBERSHIPS A PERSON CAN OWN
A Member is only allowed to own an interest in one (1) personal membership under an individual Social Security Number (SSN), and one (1) business membership under a business FEIN number, unless otherwise qualified for or allowed for under the Compensation Plan.
All orders must be paid as stated in the policy set forth herein entitled “Method of Payment.” All forms of payment are to be made payable to the Company in U.S. Dollars. Funds must clear the Company’s bank before any shipment will be made. Missing or incomplete order information may result in Member’s order not being processed and returned to Member.
21. PERSONAL BACK OFFICE
As part of the enrollment package, each Member is provided with access to a Personal Back Office, which is a personal website that provides the Member with information, data, forms, training videos and other materials necessary to operate the Member’s business, including, without limitation, the ability to track the Member’s sales revenues, order Company products and manage Member’s team. The Member may not allow anyone to access the Personal Back Office other than the Member. The Member is solely responsible for protecting his/her/its password to the Personal Back Office and the Company is not liable for damages to the Member (including, without limitation, lost revenues, liability for Company product orders, etc.) as a result of unauthorized uses of Member’s Personal Back Office. Upon the termination of the Agreement for any reason, the Member’s Personal Back Office will be closed and the Member shall no longer have access to the Personal Back Office. The Personal Back Office is the sole and exclusive property of the Company and the Member merely has the right to use the Personal Back Office during the term of the Agreement.
22. PRODUCT AND INCOME CLAIMS
Members shall not make false nor fraudulent representations about the Company, its products, services, compensation plan or earnings potential. This includes the showing of checks, statement of earnings, or potential earnings. One Member’s earnings may not be typical of another’s earnings; therefore, no income claims are allowable. In addition, Members shall not make any claims for or about Company products which are not supported by facts contained in official Company literature or on the Company website.
23. PRODUCT ORDERING, DELIVERY AND PAYMENT METHODS
Members are not required to maintain a supply of product inventory for resale. All orders may be placed on-line using a Company website. The retail customer can use any major credit or debit card. Products are sent from Company directly to the customer as soon as their payment has been authorized. Company provides the Member access to on-line reports that summarize the Member’s sales activity and commissions.
24. PROPRIETARY NATURE OF TEAM REPORTS
Company may from time to time supply data processing information and reports to Members concerning their teams. The Member agrees that such information is proprietary and confidential to the Company, and is transmitted to the Member in confidence for his/her internal use while managing their business.
The Member agrees that -he/she will not disclose such information to any third party directly or indirectly, nor use the information to compete with Company directly or indirectly. The Member and Company agree that, but for this agreement of confidentiality and nondisclosure, Company would not provide the above confidential information to the Member.
25. PURCHASING REQUIREMENT
- No person or entity is required to purchase the Company's products or sales aids in order to become a Member.
- Any and all purchases are made at the sole and absolute discretion of the Member with the exception of an enrollment fee that is at Company cost. This sum is not a service or franchise fee, but rather is strictly to offset actual costs incurred by the Company.
- Member should make clear in each business presentation that absolutely no inventory purchase is required to market Company products. It should be stressed that Member can build his/her/its business only by selling Company products on commission-only basis.
- The one and only objective of the Compensation and Bonus Plans is to promote the use of Company products to satisfied customers. The sale of wholesale products is not the goal - but rather, usage of products by the consumer is our goal.
- This program is about acquiring retail customers and personally referred Club Members for the NV3 Club.
26. REFUND POLICY / RETURN OF PRODUCTS
If A Member or Retail Customer is not 100% satisfied with the Company’s products, they may return the products to the Company or keep them and receive a full refund (less applicable tax shipping and handling) so long as the following criteria are met: (a) if, at the time of the return, the Member Agreement has not been terminated by either the Member or the Company; (b) the return is made within 30 days from the date of the original product purchase. The Company may also charge back to the Member's Shared Team any commissions or bonuses received or paid on the product that is refunded by the Member. Additionally, Montana Members who cancel within fifteen (15) days after the date they began participation in the Program, such Members are entitled to a full refund of any consideration given to participate.
To receive a refund in full, you must comply with the following:
1. Contact Customer Service by by email at email@example.com between the hours of 9AM – 5PM PST, Monday – Friday. Company’s Customer Service Office is closed on Saturdays, Sundays and all United States legal holidays with the refund request.
Any other refunds may be made at the sole discretion of the Company.
2. All returns must be authorized by NV3 Club via email to the Company at firstname.lastname@example.org.
3. Return Requests must be made within 30 days of order shipment date.
4. There will be no product exchanges allowed once a product has been shipped. If a Member wishes to return shipped product and order new product in its place, they must comply with the Return Policy as outlined above and will be subjected to cover the entire cost of shipping plus a 10% re-stocking fee. Members have the entire calendar month to access their Back Office in order to manage their autoship, and are notified 48 hours in advance of their order being shipped if any product changes are desired.
27. PERSONALIZED REPLICATED WEBSITE
As part of A Member's enrollment package, the Company creates a Replicated Website for each Member, which is a webpage that is substantially similar to www.nv3club.com, but customized in certain respects to identify to the specific Member. The purpose of the Replicated Website is to provide a portal through which the Member and his/her/its customers may order Company product at retail pricing. The Company determines the Member's compensation based upon the sales generated through the Member's Replicated Website and through the Member's team. Upon the termination of the Agreement for any reason, the Member's Replicated Website will be deleted and the Member shall no longer be entitled to a Replicated Website. The Replicated Website is the sole and exclusive property of the Company and the Member merely has the right to use and enjoy the benefits of the Replicated Website during the term of the Agreement.
28. REPRESENTATIONS BY MEMBERS
Members are independent contractors, fully responsible for their own business procedures and are not to be considered purchasers of a franchise or employees of the Company. The agreement between the Company and its Members does not create an employer/employee relationship, agency, partnership or joint venture between the Company and the Members.
Members must not represent themselves in any way, orally or in writing, as being an agent or employee of the Company. Members have no authority to bind the Company to any obligations. Each Member shall hold Company harmless for any claims, damages or liabilities arising out of the Member’s own business practice. Company will take aggressive action to ensure that Members who violate this policy are immediately terminated.
Members are responsible for any expenses which result from their business operations, including, but not limited to, advertising, taxes, fees, legal costs and shipping expenses.
Members may not use the Company name on any written or electronic forms or documents (e.g. stationery, bank checks, business signs, email) without stating “ Member” in close proximity to the name Company. Company reserves the right to review any and all usage of its name on any written or electronic forms or documents (e.g. stationery, bank checks, business signs, email) and modify, if necessary, the Member’s usage of the name.
29. RESIGNATION OF CLUB MEMBER
Members have the right to terminate their agreement at any time and for any reason, or without reason, and without penalty, by giving written or email notice to the Company at its principal place of business.
30. RETAIL REWARDS
Company products may only be sold by authorized Members. Members may sell only to retail customers for their personal use, retail customers may not resell to other consumers. Members should explain to customers that if they wish to sell Company products to others, they should elect to become an authorized Member.
The sale of Company products to retail customers is the foundation of the Company.
31. SALES TAX
All products may be subject to sales tax in the state, county and city that levies such a tax and in which a sale occurs. Company will tax Member purchases in accordance with the rules and regulations of the jurisdiction. All tax dollars paid to the Company by the Member will be remitted by the Company directly to the corresponding jurisdiction.
32. SANCTIONS AND ENFORCEMENT ACTION
Any Member who violates these Policies and Procedures jeopardizes the integrity and standing of all Members.
33. TERMINATION BY INACTIVITY
After 60 days of consecutive inactivity, a Member will be removed from the Shared Team Structure
34. TERMINATION OF MEMBERSHIP
Company reserves the right to terminate any Member at any time, or suspend said Member for a probationary period, when it is determined that the Member has violated the provisions of the Policies and Procedures as they now exist or may be amended, or the provisions of applicable laws and standards of fair dealing.
35. UNAUTHORIZED PURCHASES
Company will immediately terminate any Member who fraudulently attempts to create bogus sales transactions for purposes of meeting sales commission goals, or for any other reason. Offenders shall also be subject to possible legal action.
36. UNETHICAL BEHAVIOR OR ACTIVITY
Members will be immediately terminated, if, at the sole discretion of Company, they are determined to be carrying out unprofessional or unethical marketing efforts or practices while representing the Company.
The Company reserves the right to use its sole judgment in deciding whether certain Member's activities are inappropriate. Examples of inappropriate activities include, without limitation:
- Using the Company sales reports for other than the Member's performance of services pursuant to this Agreement.
- Making claims in violation of the Agreement (including, without limitation, these Policies & Procedures).
- Writing bad checks and credit card charge-backs to the Company and/or other Members.
- Any conduct that discredits the Company, its products, its Members or violates the law.
- Violation of any other provision of the Agreement (including, without limitation, these Policies & Procedures).
The company does not waiver on the requirement for each Member to comply with all of the terms and conditions of the Member Agreement and these Policies and Procedures.
Welcome to the NV3 Club, we look forward to a long and successful relationship.
- ACTIVE – Any Club Member who retails, purchases, or is on the autoship for $100 in products during a calendar month.
- AGREEMENT - The agreement between each Member and the Company collectively consists of the Member's Agreement, Policies & Procedures, and the Company's Rewards Program as posted on www.nv3club.com and as may be amended and/or restated by the Company in its sole and absolute discretion from time to time.
- ASSOCIATE MEMBER- Any Member who has paid the $30 Annual Membership Fee and who Purchases or Retails a minimum of $100 in products each month. Associates receive a personalized Replicated Website, are able to purchase Company Products at the Wholesale price, and are placed into the Shared Team Program.
- RETAIL CUSTOMER– Anyone who purchases NV3 Club products at the retail price.
- EXECUTIVE MEMBER- An Executive is any Associate Member who is on the Monthly Auto-Ship and/or who retails a minimum of $100 in products each month, and who has personally referred 3 people who do the same thing.
- MEMBER- Anyone who has paid the $30 Annual Membership Fee. Members can purchase NV3 Club products at the wholesale price. Members receive a personalized Replicated Website and are able to purchase Company Products at the Wholesale price. Members cannot participate in the Rewards Program.
- OVERLAP– A Club Member who is placed within your shared team by Members from the sides or above you. You can be paid $2.50 per month on the product purchases of each Overlap Member.
- SHARED TEAM PROGRAM– This consists of the structure which the NV3 Club bases its Retail, Personal, and Team Rewards on. There can be 65, 518 Associate Members within each individual Shared Team.