These Policies and Procedures, together with the IR Application Agreement, constitute the entire understanding and agreement between the Company and each IR. The Policies and Procedures of the Company contained herein should be carefully reviewed by each IR. The Company requires that each IR comply with all applicable statutes, laws, regulations and ordinances as set forth. The Company further reserves the right to employ such measures, as it deems necessary, to ensure compliance with these Policies and Procedures.
IR ELIGIBILITY REQUIREMENTS:
Any individual who is of legal age, a resident of the United States,
or any country where the Company has established a legal presence,
is eligible to become an IR of the Company. IRs are to have a
valid Social Security Number, or a Federal Employer Identification
Number, which must be evidenced on each IR Application Agreement.
APPLICATION PROCEDURE:
To apply for status as an IR, a completed “Independent Representative
Application Agreement” (hereinafter referred to as “Application
Agreement”) is required. The completed Application Agreement
should be legible, accurate and
personally signed by the applicant, or their authorized agent.
Application Agreements should be mailed to the Company’s
Processing Center at the following address:
BETA SOURCE PROCESSING CENTER
160 WHITEFORD WAY
LEXINGTON, SOUTH CAROLINA 29072
Upon acceptance by the Company of an individual’s Application Agreement, the IR will thereafter be entered into the Company’s computer file.
IR APPLICATION AGREEMENT:
An IR should notify the Company of any corrections or omissions
to their Application Agreement within two (2) weeks of the date
shown thereon. The Company does not accept responsibility for
the loss of commissions, bonuses, or other payments due to an
IR as a result of errors or delays in receiving Application Agreements
and/or amendments thereto.
The placement of an IR, and/or the sponsor
of an IR, cannot be amended once the Application Agreement has
been submitted to the Company. It shall be expressly understood
by each IR that they shall not sign an Application
Agreement on behalf of another individual. It is further understood
by each IR that a valid Social Security Number, or Federal Employer
Identification Number, is to be on each Application Agreement.
Providing false and/or invalid information by an IR will result
in their termination.
PARTNERSHIPS AND CORPORATIONS:
To become an IR partnership or corporation, or to change the status
of an existing IR partnership or corporation, the Company must
be notified in writing. The individual submitting notification
to the Company must be authorized to enter into binding contracts
on behalf of the entry. Written notice must accompany the Application
Agreement and shall include the following:
VOLUNTARY CANCELLATION:
An IR has the right to terminate their status, at any time, by
submitting written notice to the Company. Voluntary termination
is effective upon receipt of such notice by the Company. An Application
Agreement deposit is refundable within thirty (30) days (or longer
where required by state law) of termination and may be obtained
by submitting a written request to the Company.
An IR may not reapply for status within the Company for a period of six (6) months. Should an IR reapply for status within the Company, the IR claims no right to prior bonuses and/or a position in any former line of descent. Upon reapplication, an IR will be placed in a re-entry position, regardless of their prior downline position.
RIGHTS OF AN IR:
Upon the terms and conditions of the Policies and Procedures,
the Business Presentation Guide, the Company’s Compensation
Plan and Application Agreement, the Company grants to an IR a
nonexclusive right to promote and sell the Company’s products
only in countries wherein the Company conducts business.
PRODUCT RETURN POLICY:
Upon registration, an IR may return to the Company any literature
and/or products , in resalable condition, within one (1) year
of the date of purchase (or longer, where required by state law).
Upon acceptance, which the Company deems resalable, a refund of
ninety percent (90%) of its value will be issued to the former
IR.
Procedures for returning literature and/or products shall be as follows:
1. The IR must call the Company to obtain
a “Return Authorization Number” (RAN);
2. The RAN is to appear on each package returned to the Company;
3. All returned products are to be mailed to the Company’s
headquarters located in Lexington, South Carolina; and
4. All shipping and handling expenses incurred shall be the sole
responsibility of the IR.1.
It shall be expressly understood that the Company will not issue refunds for products previously sold by an IR; nor shall the Company issue a refund to an IR for products purchased in the name of another IR.
RENEWAL OF IR STATUS:
The Company requires each IR to renew their status on an annual
basis. The date for renewal shall be December 31st of each year.
A renewal application form must be submitted to the Company by
each IR. The requisite fee for renewal shall be Twenty-Five Dollars
and NO/100 ($25.00) per IR.
IR Application Agreements received by
the Company after September 30th are not subject to the December
31st
renewal deadline. The renewal date for Application Agreements
received after September 30th shall be December 31st of the following
calendar year.
Federal Employer Identification Number
of the partnership or corporation;
The Social Security Number of each partner and/or shareholder;
and
Percent of ownership for each individual partner.
IR BUSINESS RELATIONSHIP:
It is expressly understood that IRs are independent contractors.
It is further understood that the agreement between the Company
and an IR does not create an employer/employee relationship, agency,
partnership or joint venture.
Each IR is responsible for determining his/her own business activity, including all methods of sale and operation, provided those methods are in compliance with the Policies and Procedures contained herein.
It is agreed that the company is entitled to use the name, and/or likeness of, an IR for promotional purchases.
An IR is not permitted to make representations other than those contained in the Company’s promotional materials, nor to hold themselves as an employee or agent of the Company. An IR has no legal right, or authority to bind the Company to any obligation.
Additionally, as a self-employed individual, the IR agrees to pay all local, state and federal income taxes, as required by law. The Company shall submit to the Internal Revenue Service a Form 1099 for each IR whose earnings for the year are Six Hundred Dollars and No/100 ($600.00) or greater. The Company shall also submit to the Internal Revenue Service a Form 1099 for each IR who purchases Five Thousand Dollars and No/100 ($5000.00) or greater of Company products for retail sale.
The Company shall hold each IR responsible for any verbal and/or written statements made by an IR regarding the Company’s products and/or marketing program which are not contained in the current Application Agreement and/or advertising and promotional materials provided by the Company.
Each IR shall indemnify and hold harmless the Company from any and all liability, including, but not limited to, judgements, civil penalties, refunds, attorney’s fees, court costs or lost business incurred by the Company, as a direct result of an IR’s unauthorized representations.
CODE OF ETHICS:
An IR agrees to conduct their business according to the code of
ethics as herein set out. This code of ethics is designed to ensure
the highest standard of integrity and professionalism within the
Company’s network of IRs. The Company’s code of ethics
serves to protect the image of each IR, as well as the overall
image of the Company.
In dealing with customers and other IRs of the Company, the IR agrees to conduct him/herself with the highest standards of honesty, integrity and fairness.
An IR will present the Company’s products knowledgably, without making misrepresentations or misleading claims, and in accordance with information contained in the Company’s literature. Further, an IR agrees to strictly adhere to the Company’s Business Presentation Guide.
An IR shall fulfill all obligations associated with sponsorship of an IR, including, but not limited to , training, motivation and support. Further, an IR shall avoid making disparaging and/or derogatory statements about the Company, or any IR of the Company.
An IR shall abide by the Company’s Policies and Procedures, as well as applicable statutes, laws, regulations and ordinances.
REPRESENTATION OF COMPANY PRODUCTS AND
PROGRAMS:
Each IR shall truthfully and fairly describe the Company’s
programs and products in all discussions with customers, potential
sponsorships and other IRs of the Company. Representation of the
Company’s programs and products include, but are not limited
to , the following:
a. That there is no fee required to become an IR of the Company;
b. That an IR is entitled to purchase the Company’s products at wholesale cost, whereby an IR can retail those products to customers for profit; and
c. That a forty-nine Dollar and 95/100 ($49.95) refundable kit deposit must accompany each IR
d. Application Agreement submitted for
processing (except in states where the deposit has been waived)
for those IRs participating in the networking plan.
a. A Business Presentation Guide has been designed to assist IRs in the lawful presentation of the opportunity the Company offers. Any variation in script, training and/or corporate materials contained in said Guide is strictly prohibited and may result in legal action against an IR and/or the Company. Should the Company become aware that an IR has violated this policy, the IR is subject to termination.
b. The Company shall periodically conduct a review of an IRs business presentation and training sessions. The use of recording devices may be employed when a review is conducted.
c. An IR will not misstate, and/or omit, any significant fact about the Company’s program.
d. Each prospective IR shall receive a complete presentation of the Company’s products prior to any discussion concerning the position of the prospective IR. Additionally, each prospective IR shall receive a copy of the current Policies and Procedures, as well as a copy of the Compensation Plan, along with their Application Agreement.
a. The primary emphasis of the Company’s program is the sales of the Company’s products to ultimate customers.
b. Prospective IRs shall understand that neither sponsorship by an IR, nor the purchase of the Company’s Sales Kit, results in commissions or bonuses.
c. An IR may not purchase the Company’s products to resell for the purpose of qualifying for commissions and/or bonuses.
d. Each IR agrees to sell and/or distribute seventy percent (70%) of the Company’s wholesale products, which they purchase, to individuals not associated with the Company prior to reordering product. Each IR shall maintain a minimum of one (1) retail customer monthly.
e. Each IR is required to keep accurate records of all transactions conducted for a minimum of two (2) years. Said records shall be, upon request, made available to the Company for review.
The use of verbal and/or written projections to a potential IR, of guaranteed and/or projected income is strictly prohibited. Only company published actual commission figures may be utilized in discussions with prospective IRs. Further, the Company strictly prohibits the use of copies of checks, statements of earned income and/or charts evidencing income projections.
TRANSFER OF OWNERSHIP:
IR positions in the Company can be inherited
or bequeathed to a rightful heir. Successors in interest must
complete and Application Agreement and comply with the Company’s
Policies and Procedures. The position of an IR cannot be assigned
or transferred , during the lifetime an IR, without the written
consent of the Company.
The Company shall approve the sale or transfer of an IRs business.
The Company reserves the right to review all terms of the sale
or transfer. Upon review, the Company may require additional terms
or conditions to the sale, prior to approval by the Company of
any proposed sale.
In order to effectuate the sale, or transfer, of an IRs business,
the IR must do the following:
1. Written notice of a sale or transfer must be submitted by the IR to the Company by way of a completed “Beta Source Independent Representative Positions Sale/Transfer” form. Said form shall be submitted to the Company’s headquarters, along with a check payable to BETA SOURCE, INC. in the amount of Ninety-Nine Dollars and No/100 ($99.00) which represents the requisite sale/transfer fee. The Company reserves the right to return to an IR any incomplete notice of sale/transfer or any notice which does not have the requisite fee necessary to process the sale/transfer.
2. In the sale/transfer by an IR to an individual, said individual (*hereinafter referred to as “Buyer”) shall certify to the following:
a. That said Buyer maintains no position within the Company as an IR nor does the Buyer hold any financial interest in a position of another IR within the Company.
b. That said Buyer has not been an IR of the Company, nor has the Buyer held any interest in the Company within the previous six (6) months.
c. That said Buyer has been provided
with adequate training and materials with which to conduct their
business.
3. In the event the Company determines
that a sale/transfer occurred in an effort to circumvent compliance
with the Applications Agreement, Policies and Procedures or the
Compensation Plan, the sale/transfer shall be declared null and
void.
Each IR shall expressly understand that the Company reserves the
right to deny the sale or transfer of a position within the Company.
CHARGES TO THIRD PARTIES:
An IR may not make charges or requests for fees for services and/or
literature of another IR, prospective IR or customer.
An IR may require that other IRs attending his/her presentation contribute not more than Five Dollars and No/100 ($5.00) toward the meeting expenses; guests however may not be charged.
Should an IR determine that it is necessary to charge and/or request a fee from another IR, prospective IR or customer, a written request should be submitted to the Company for approval.
AUDIO/VIDEO RECORDING OF PRESENTATIONS
OR TRAINING SESSIONS:
An IR is strictly prohibited from recording, by way of an audio
and/or video device, any Company business presentation or training
session. IRs may use audio and video presentation and training
materials provided but the Company. Violation of this policy may
result in termination of an IR.
SPONSORSHIP POLICIES:
Each IR shall expressly understand that a “sponsor”
shall be that individual named on the Application Agreement postmarked
at the earliest date. The Company reserves the right to review
sponsoring practices. A change in sponsor shall not be permitted
at any time. It is expressly understood by each IR that the Company
will not mediate any dispute concerning sponsorship designations.
In the event of a dispute, the Company reserves the right to determine
sponsorship and/or position within the binary matrix.
Each IR acknowledges their responsibility in supporting any individual they sponsor. That sponsor support shall include, but is not limited to, training, supervisory and/or management responsibilities associated with such business relationship (i.e. telephone contact, voice mail, electronic mail, newsletters, training sessions and accompanying those individuals to Company functions).
The Company prohibits cross-group sponsoring. Cross-group sponsoring is defined as the enrollment of an individual who (or entity that) already has current Application Agreement on file with the Company, or who has had such an agreement within the preceding six (6) calendar months, within a different line of sponsorship. Any IR who has participated in cross-group sponsoring shall be returned to their original sponsor.
An IR may not use a trade name, “doing business as” name, assumed name, spousal name, corporation, partnership, trust, Federal Employer Identification Number or other fictitious identification to circumvent this policy.
An IR shall not demean, discredit or invalidate another IR in an attempt to entice that IR to become a part of his/her business organization.
CROSS-RECRUITING:
It is expressly understood by each IR that they shall not sponsor,
or cause to be sponsored, any IR of the Company into any other
network marketing, or multilevel organization with the exception
of those IRs which they personally sponsored.
GOVERNING LAW:
This agreement is governed under the laws of the State of South
Carolina. These Policies and Procedures were created as a guideline
for the Company and its IRs and serve to protect the rights of
both parties. The parties agree that jurisdiction and venue shall
lie in the City of Lexington, State of South Carolina.