STATEMENT OF POLICIES And PROCEDURES Effective July31th, 2013 Table of Contents SECTION 1 - CORPORATE MISSION STATEMENT 5 SECTION 2 - INTRODUCTION 5 2.1. - Policies and Compensation Plan Incorporated into IBO Agreement 5 2.2. - Changes to the Agreement 5 2.3. - Policies and Provisions Severable 5 2.4. - Waiver 5 SECTION 3 - BECOMING AN IBO 5 3.1. - Requirements to Become an IBO 5 3.2. - IBO Benefits 6 3.3. - Term and Renewal of Your WAKEUPNOW Business 6 3.4. - Compensation Plan 6 SECTION 4 - OPERATING A WAKEUPNOW BUSINESS 14 4.1. - IBO Created Marketing Methods and Tools 14 4.2. - Advertising 15 4.2.1. - General 15 4.2.2. - Trademarks and Copyrights 15 4.2.3. - Media and Media Inquiries 16 4.2.4. - Unsolicited Email 16 4.2.5. - Unsolicited Faxes 16 4.2.6. - Telephone Directory Listings 17 4.3. - Online Conduct 172 4.3.1. - IBO Web Sites 17 4.3.2. - WAKEUPNOW Replicated Websites 17 4.3.3. - Registered External Website Content 18 4.3.4. - WAKEUPNOW IBO Disclosure 18 4.3.5. - Registered External Websites Must Exclusively Promote WAKEUPNOW 18 4.3.6. - Registered External Website Termination 18 4.3.7. - Team Websites 18 4.3.8. - Domain Names, email Addresses and Online Aliases 19 4.3.9. - WAKEUPNOW Hotlinks 19 4.3.10. - Monetizing Registered External Websites 19 4.3.11. - Online Classifieds 19 4.3.12. - eBay / Online Auctions 20 4.3.13. - Online Retailing 20 4.3.14. - Banner Advertising 20 4.3.15. - Spam Linking 20 4.3.16. - Digital Media Submission (YouTube, iTunes, PhotoBucket etc.) 20 4.3.17. - Sponsored Links / Pay-Per-Click (PPC) Ads 20 4.3.18. - Domain Names and Email Addresses 21 4.3.19. - Social Media 21 4.3.20. - IBOs Are Responsible for Postings 22 4.4. - Business Entities 23 4.4.1. - Changes to a Business Entity 24 4.4.2. - Non Profit Entity 24 4.5. - Change of Sponsor 25 4.5.1. - Misplacement 25 4.5.2. - Cancellation and Re-application 25 4.6. - Waiver of Claims 26 4.7. - Unauthorized Claims and Actions 26 4.7.1. - Indemnification 26 4.7.2. - Product Claims 26 4.7.3. - Income Claims 26 4.7.4. - Income Disclosure Statement 26 4.8. - Commercial Outlets 28 4.9. - Trade Shows, Expositions and Other Sales Forums 28 4.10. - Conflicts of Interest 28 4.10.1. - Non-solicitation 28 4.10.2. - Right to refuse use of Image 29 4.10.3. - IBO Participation in Other Network Marketing Programs 29 4.10.4. - Confidential Information 29 4.11. - Targeting Other Direct Sellers 30 4.12. - Commission Invoicing 30 4.13. - Governmental Approval or Endorsement 30 4.14. - Income Taxes 31 4.15. - Independent Contractor Status 31 4.16. - Insurance 31 4.17. - International Marketing 31 4.18. - Excess Inventory and Bonus Buying 31 4.19. - Adherence to Laws and Ordinances 32 4.20. - One WAKEUPNOW Business Per IBO and Per Household 32 4.21. - Actions of Household Members or Affiliated Parties 33 4.22. - Requests for Records 333 4.23. - Sale, Transfer or Assignment of WAKEUPNOW Business 33 4.23.1. - Assignment of Open IBO Position 34 4.24. - Separation of a WAKEUPNOW Business 34 4.25. - Sponsoring Online 35 4.26. - Succession 35 4.26.1. - Transfer Upon Death of an IBO 36 4.26.2. - Transfer Upon Incapacitation of an IBO 36 4.27. - Telemarketing Techniques 36 4.28. - IBO Marketing Suite 37 4.29. - Compression 37 SECTION 5 - RESPONSIBILITIES OF IBOS 37 5.1. - Change of Address, Telephone E-Mail Addresses, and Text Numbers 37 5.2. - Continuing Development Obligations 37 5.2.1. - Ongoing Training 37 5.2.2. - Increased Training Responsibilities 38 5.2.3. - Ongoing Sales Responsibilities 38 5.3. - Negative Comments 38 5.4. - Providing Documentation to Applicants 38 SECTION 6 - SALES REQUIREMENTS 38 6.1. - Product Sales 38 6.2. - No Territory Restrictions 39 6.3. - Sales Receipts 39 SECTION 7 - BONUSES AND COMMISSIONS 39 7.1. - Bonus and Commission Qualifications and Accrual 39 7.2. - Payment of Commissions 39 7.3. - Adjustment to Bonuses and Commissions 40 7.3.1. - Adjustments for Returned Products and Services 40 7.4. - Reports 40 SECTION 8 - PRODUCT GUARANTEES, RETURNS AND INVENTORY REPURCHASE41 8.1. - Order Cancellation and Satisfaction Guarantee 41 8.2. - Return of Inventory and Sales Aids by IBOs Upon Cancellation 42 8.3. - Commission Recapture for Returned Products and Chargebacks 42 8.4. - Montana Residents 42 SECTION 9 - DISPUTE RESOLUTION AND DISCIPLINARY PROCEEDINGS 43 9.1. - Disciplinary Sanctions 43 9.2. - Grievances and Complaints 43 9.3. - Mediation 44 9.4. - Arbitration 44 9.5. - Governing Law, Jurisdiction and Venue 45 9.5.1. - Louisiana Residents 45 9.6. - Damage Limitation 45 SECTION 10 - PAYMENT AND SHIPPING 45 10.1. - NSF / Declined Credit / Debit Card Transactions 46 10.2. - Restrictions on Third Party Use of Credit Cards / Fraud Policy 46 10.3. - Sales Taxes 46 10.4. - Chargeback / Cost Recovery Policy and Procedure 46 SECTION 11 - INACTIVITY, RECLASSIFICATION, AND CANCELLATION 484 11.1. - Effect of Cancellation 48 11.2. - Cancellation Due to Inactivity 48 11.2.1. - Failure to Pay Website Fees 48 11.2.2. - Failure to Meet CV Quota 48 11.2.3. - Reclassification Following Cancellation Due to Inactivity 48 11.3. - Involuntary Cancellation 48 11.4. - Voluntary Cancellation 49 11.5. - Non-renewal 49 11.6. - Cancellation Due to Credit Card Chargeback 49 SECTION 12 - DEFINITIONS 495 SECTION 1 - CORPORATE MISSION STATEMENT For people who want to improve their finances, WAKEUPNOW makes it simple, easy, and fun to save, manage, and make money using new technologies that combine the tools, rewards, education and compensation improving lives one person at a time. SECTION 2 - INTRODUCTION 2.1. - Policies and Compensation Plan Incorporated into IBO Agreement These Policies and Procedures, in their present form and as amended at the sole discretion of WAKEUPNOW, Inc. (hereafter “WAKEUPNOW” or the “Company”), are incorporated into, and form an integral part of, the WAKEUPNOW IBO Application and Agreement. Throughout these Policies, when the term “Agreement” is used, it collectively refers to the WAKEUPNOW IBO Application and Agreement, these Policies and Procedures, the WAKEUPNOW Compensation Plan, and the WAKEUPNOW Business Entity Addendum (applicable only to business entities that apply to become an IBO). These documents are incorporated by reference into the WAKEUPNOW IBO Agreement (all in their current form and as amended by WAKEUPNOW). 2.2. - Changes to the Agreement WAKEUPNOW reserves the right to amend the Agreement and its prices in its sole and absolute discretion. By executing the Agreement, an IBO agrees to abide by all amendments or modifications that WAKEUPNOW makes. Amendments shall be effective 30 days after publication of notice and posting the amended provisions, but amended policies shall not apply retroactively to conduct that occurred prior to the effective date of the amendment. Notification of amendments shall be published by posting the on the IBOs’ TeamOffice. The continuation of an IBOs WAKEUPNOW business or an IBOs acceptance of bonuses or commissions constitutes acceptance of all amendments. 2.3. - Policies and Provisions Severable If any provision of the Agreement, in its current form or as may be amended, is found to be invalid, or unenforceable for any reason, only the invalid portion(s) of the provision shall be severed and the remaining terms and provisions shall remain in full force and effect. The severed provision, or portion thereof, shall be reformed to reflect the purpose of the provision as closely as possible. 2.4. - Waiver The Company never gives up its right to insist on compliance with the Agreement and with the applicable laws governing the conduct of a business. No failure of WAKEUPNOW to exercise any right or power under the Agreement or to insist upon strict compliance by an IBO with any obligation or provision of the Agreement, and no custom or practice of the parties at variance with the terms of the Agreement, shall constitute a waiver of WAKEUPNOW’s right to demand exact compliance with the Agreement. The existence of any claim or cause of action of an IBO against WAKEUPNOW shall not constitute a defense to WAKEUPNOW’s enforcement of any term or provision of the Agreement. SECTION 3 - BECOMING AN IBO 3.1. - Requirements to Become an IBO To become a WAKEUPNOW IBO, each applicant must: Submit a WAKEUPNOW IBO Application and Agreement; and agree to terms and conditions;6 Be the age of majority in his/her state of residence; Reside in the United States or U.S. Territories or country that WAKEUPNOW has officially announced is open for business; U.S. IBOs must provide WAKEUPNOW with his / her valid Social Security. All IBOs that wish to register as a business entity must provide both the social security number of all partners involved and the federal tax number associated with the business; Subscribe to an IBO Marketing Suite on a monthly basis (Optional in North Dakota.) 3.2. - IBO Benefits Once an IBO Application and Agreement has been accepted by WAKEUPNOW, the benefits of the Compensation Plan and the IBO Agreement are available to the new IBO. These benefits include the right to: Sell WAKEUPNOW products and services; IBOs may Participate in the WAKEUPNOW Compensation Plan (receive bonuses and commissions, if eligible); IBOs may enroll and sponsor other individuals as IBOs into the WAKEUPNOW business and thereby, build a marketing organization and progress through the WAKEUPNOW Compensation Plan; Receive periodic WAKEUPNOW literature and other WAKEUPNOW communications; Participate in WAKEUPNOW sponsored support, service, training, motivational and recognition functions, upon payment of appropriate charges, if applicable; and Participate in promotional and incentive contests and programs sponsored by WAKEUPNOW for its IBOs. 3.3. - Term and Renewal of Your WAKEUPNOW Business The term of the IBO Agreement is month-to-month, and is automatically renewed upon the payment of the monthly IBO Marketing Suite fee. Should an IBO fail to pay his / her monthly IBO Marketing Suite fee, the IBO business will not be eligible for commissions or bonuses for that month or any other month until website fee is paid. If the IBO fails to pay his / her website fee for three consecutive months, the IBOs Agreement may be permanently cancelled. The automatic renewal of an IBOs Marketing Suite fee shall not be a basis for placing a business on suspension or cancelling an IBOs business for disciplinary reasons. 3.4. - Compensation Plan Requirements to Earn Commissions WakeUpNow pays three types of commission: Team Payouts, Retail Payouts, and Supplemental Payouts. All Payouts are calculated using the following criteria each month. 1. Are you a qualified Independent Business Owner (IBO)? 2. Do you meet the structural requirement to qualify for any particular payout? 3. Do you meet the volume and other requirements for any particular payout? Qualified Independent Business Owner You must participate in the programs as an Independent Business Owner (IBO) in order to be eligible to receive commissions. By qualifying each month, you will maintain uninterrupted eligibility. To qualify each month you must:7 1. Be enrolled as an IBO. This requires agreeing to abide by the Policies and Procedures, accepting the Terms and Conditions, and providing accurate information required to send you payment, such as valid contact information and your Social Security Number. 2. Generate 90 Personal Volume (PV). PV is generated by selling WakeUpNow products. Subscribing yourself is an acceptable method of generating PV. However, no product purchase is mandatory. 3. IBO Marketing Suite. IBOs pay a small fee monthly for WakeUpNow’s Marketing Suite. This set of tools includes a marketing website and account management features available to IBO’s from within the HUB. Relationship Types: Two Structures Enroller vs. Sponsor. Commissions are derived from two types of relationships between IBOs that are created whenever a new customer subscribes, enrollment and sponsorship. All Payouts are calculated based on these two relationships. Enroller When someone subscribes to WakeUpNow via your marketing website your IBO number is automatically submitted as their enroller. Sponsor By default your IBO number is also automatically submitted as the sponsor when IBOs sign up via your marketing website. If you would like to give subscribers the option to choose another IBO as their sponsor, you can turn on this feature of your website. You can also turn on Waiting Room feature that temporarily allows subscribers to sign up without creating a sponsor relationship. The Waiting Room allows you a short time to place subscribers where you choose within your organization. Subscribers are automatically sponsored to you if they are left in your Waiting Room three days after the end of the month. Both the sponsor sign up field option and the Waiting Room are features you can access within the admin tools available in the HUB.8 Commission Types Commission payments are based on the requirements met at the close of the month. Commissions are typically paid on the 15th of the month following, or the next U.S business day. Team Payouts Team Payouts are tied to your rank, which is based on the size and structure of your sponsorship structure. The three rank levels at WakeUpNow are Director, Founder and Executive. Director Bonus To reach the first Director level rank of Director 1 (D1) you must be a qualified IBO and sponsor one qualified IBO. To reach the rank of Director 2 (D2) you must be a qualified IBO and sponsor two qualified IBOs. Director 3 To reach Director 3 (D3), must be a qualified IBO and directly enroll and sponsor three qualified IBOs that have each achieved 90 Personal Volume. As a Director 3, you qualify to receive your first commission, the Director Bonus. The Director Bonus is $100 per month that you are a Director 3. Founder Bonus The first Founder rank is Founder 3 (F3). To reach the rank of Founder 3, you must be a qualified IBO and sponsor three lines with at least four qualified IBOs in each. Founder 3’s will no longer receive a Director Bonus, but instead receives the next level Team Payout, the Founder Bonus, which starts at $600/mo. Increasing your Founder Bonus As you add D3’s in your lines, or increase your Group Volume (GV), your Founder Bonus grows. For every D3 you add in your organization from the 4th to the 11th your Found Bonus will grow by $50. The 9 Founder Bonus maxes out at $1000 per month. Another way you can increase your Founder Bonus as an F3 is to increase your GV. GV is the Commissionable Volume (CV) generated by your entire organization downline from you. Line Maximum The Founder Bonus above $600 is subject to a Line Maximum of 50%. The Line Maximum is the highest GV that can be counted from any one line in your organization. The Line Maximum also applies to D3’s, meaning that no more than 50% of your D3s used to qualify for an increased Founder Bonus can come from any one line. Founder 4 – Founder 7 You can progress through the Founder ranks by adding lines with at least one D3 in them, and increasing your GV. To reach the rank of Founder 4 (F4), you need to be a qualified IBO with a minimum of 4 lines with a D3 in each and GV of 10,000 or more with a 50% line maximum. F4’s earn a Founder Bonus of $2,000 per month. To reach the rank of Founder 5 (F5), you need to be a qualified IBO with a minimum of 5 lines with a D3 in each and GV of 20,000 or more with a 45% line maximum. F5’s earn a Founder Bonus of $4,000 per month. To reach the rank of Founder 6 (F6), you need to be a qualified IBO with a minimum of 6 lines with a D3 in each and GV of 40,000 or more with a 40% line maximum, F6’s earn a Founder Bonus of $6,000 per month. To reach the rank of Founder 7 (F7), you need to be a qualified IBO with a minimum of 7 lines with a D3 in each and GV of 80,000 or more with a 40% line maximum. F7’s earn a Founder Bonus of $10,000 per month. Executive Executive ranks require you to be qualified with 180 PV and that your GV reaches each level with a 35% line maximum. The Executive ranks and corresponding GV requirements are as follows: Executive 120,000 Pearl 160,000 Ruby 240,000 Emerald 320,000 Sapphire 480,000 Diamond 640,000 Global Executive 1,000,000 Leadership Overrides The Leadership Overrides are comprised of two reserves. Up to 5% of total company CV is set aside in the Founder Override reserve, and up to 7.5% of CV is set aside in the Executive Override reserve. Two things are required to qualify, Rank and Retail Customers. Founder Override Up to 5% of the total worldwide company CV is reserved for IBOs from F4-F7, up to the maximum. The actual payout of the Founder Override is calculated by dividing the total Founder Override reserve each month by the number of shares issued. The Founder Override then pays the corresponding amount per share to each IBO who has shares and is eligible, up the maximum. Executive Override10 Up to an additional 7.5% of total worldwide company CV is reserved for IBOs in the Executive Ranks. Executive ranks receive shares in the Executive Override reserve as well as 10 shares in the Founder Override reserve. The actual payout of the Executive Override is calculated similarly by dividing the tot
Posted on: Wed, 21 Aug 2013 03:14:53 +0000
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