POLICIES & PROCEDURES
Revised 10-29-13
Policies & Procedures_EN_20131030
Table of Contents
POLICIES & PROCEDURES ...............................................................................................................1
1.0
INTRODUCTION ...........................................................................................................................4
1.1
Mutual Commitment Statement..................................................................................................4
1.2
Zurvita Policies and Compensation Plan Inclusions ..................................................................6
1.3
Purpose of Policies .....................................................................................................................6
1.4
Changes, Amendments, and Modifications ................................................................................7
1.5
Delays .........................................................................................................................................7
1.6
Effective Date .............................................................................................................................8
2.0
BASIC PRINCIPLES .....................................................................................................................8
2.1
Becoming A Zurvita Independent Consultant ............................................................................8
2.2
New Independent Consultant Enrollment...................................................................................8
2.3
Rights Granted ............................................................................................................................9
2.4
Identification Numbers ...............................................................................................................9
2.5
Renewals and Expiration of the Independent Consultant Agreement ........................................9
2.6
Business Entities .......................................................................................................................10
2.7
Independent Business Relationship; Indemnification for Actions ...........................................10
2.8
Insurance ...................................................................................................................................11
2.9
Errors or Questions ...................................................................................................................11
3.0
ZURVITA'S INDEPENDENT CONSULTANT RESPONSIBILITIES .....................................12
3.1
Correct Addresses .....................................................................................................................12
3.2
Training and Leadership ...........................................................................................................12
3.3
Constructive Criticism; Ethics ..................................................................................................13
3.4
Reporting Policy Violation .......................................................................................................14
3.5
Sponsorship ..............................................................................................................................14
3.6
Cross-line Sponsoring Prohibition............................................................................................15
3.7
Adherence to the Zurvita Compensation Plan ..........................................................................15
3.8
Adherence to Laws and Ordinances .........................................................................................16
3.9
Compliance with Applicable Income Tax Laws ......................................................................16
3.10
One Zurvita Business per Independent Consultant ..................................................................16
3.11
Actions of Household Members or Affiliated Parties ..............................................................17
3.12
Solicitation for Other Companies or Products .........................................................................17
3.13
Presentation of the Zurvita Opportunity...................................................................................18
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3.14
4.0
Sales Requirements are governed by the Compensation Plan .................................................19
ORDERING .................................................................................................................................20
4.1
General Order Policies..............................................................................................................20
4.2
Insufficient Funds .....................................................................................................................21
4.3
Sales Tax Obligation ................................................................................................................21
5.0
PAYMENT OF COMMISSIONS & BONUSES ........................................................................21
5.1
Bonus and Commission Qualifications ....................................................................................21
5.2
Computation of Commissions and Discrepancies ....................................................................22
5.3
Adjustments to Bonuses and Commissions for Returned Products. ........................................22
6.0
6.1
CREDIT CARD TRANSACTIONS ............................................................................................22
7.0
Chargebacks ..............................................................................................................................22
7.1
SATISFACTION GUARANTEED AND RETURN OF SALES AIDS .....................................23
8.0
Customer Return Refund ..........................................................................................................23
PRIVACY POLICY .....................................................................................................................24
8.1
Introduction ..............................................................................................................................24
8.2
Expectation of Privacy..............................................................................................................24
8.3
Employee Access to Information .............................................................................................25
8.4
Restrictions on the Disclosure of Account Information ...........................................................25
9.0
PROPRIETARY INFORMATION AND TRADE SECRETS ...................................................25
9.1
Business Reports, Lists, and Proprietary Information ..............................................................25
9.2
Obligation of Confidentiality....................................................................................................25
9.3
Breach and Remedies ...............................................................................................................26
9.4
Return of Materials ...................................................................................................................26
10.0
ADVERTISING, PROMOTIONAL MATERIAL, USE OF COMPANY NAMES AND
TRADEMARKS ..........................................................................................................................26
10.1
Labeling, Packaging, and Displaying Products - Zero Tolerance ...........................................26
10.2
Use of Company Names and Protected Materials ..................................................................27
10.3
Faxes and E-mail - Limitations...............................................................................................29
10.4
Internet and Third-Party Website Restrictions .......................................................................30
10.5
Advertising and Promotional Materials ..................................................................................31
10.6
Social Media, Website and Internet ........................................................................................32
10.7
Testimonial Permission ..........................................................................................................34
10.8
Telemarketing - Limitations ...................................................................................................34
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11.0
11.1
INTERNATIONAL MARKETING ............................................................................................36
12.0
International Marketing Policy................................................................................................36
CHANGES TO AN INDEPENDENT CONSULTANT BUSINESS..........................................36
12.1
Modification of the Independent Consultant Agreement ........................................................36
12.2
Change Sponsor for Active Independent Consultants .............................................................36
12.3
Change Sponsor or Placement for Inactive Independent Consultants .....................................37
12.4
Change Organizations ..............................................................................................................38
12.5
Unethical Sponsoring...............................................................................................................38
12.6
Sell, Assign or Delegate Ownership ........................................................................................38
12.7
Separating a Zurvita Business .................................................................................................39
12.8
Succession................................................................................................................................40
12.9
Resignation/Voluntary Cancellation ........................................................................................41
12.10 Dynamic Compression & Roll-Up ...........................................................................................42
12.11 Effect of Cancellation...............................................................................................................42
13.0
DISCIPLINARY SANCTIONS ...................................................................................................42
13.1 Imposition of Disciplinary Action - Purpose ............................................................................42
13.2 Consequences and Remedies of Breach ....................................................................................43
14.0
DISPUTE RESOLUTION ...........................................................................................................43
14.1 Grievances .................................................................................................................................43
14.2 Suspension and Termination Process ........................................................................................45
14.3 Arbitration .................................................................................................................................46
14.3 Severability................................................................................................................................47
14.4 Waiver .......................................................................................................................................47
14.5 Successors and Claims ..............................................................................................................48
15.0
GOVERNING LAW ....................................................................................................................48
16.0
MONTANA RESIDENTS ...........................................................................................................48
17.0
LOUISIANA RESIDENTS ..........................................................................................................48
18.0
ZURVITA GLOSSARY OF TERMS ..........................................................................................48
1.0 INTRODUCTION
1.1
Mutual Commitment Statement
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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.
B.
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.
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.
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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.
2.
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;
All Federal, state, provincial, territorial, and local laws governing his or her
Zurvita business;
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C.
3.
These Policies and Procedures
4.
Compensation plan
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: 713-464-5002
By Email: Compliance@Zurvita.com
1.4
A.
Changes, Amendments, and Modifications
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 (e-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.
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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.
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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.
2.4
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
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
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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
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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
A.
2.9
A.
Insurance
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.
Errors or Questions
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
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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, voice-mail, e-mail, 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.
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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.
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4.
D.
3.4
A.
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.
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.
Reporting Policy Violation
An Independent Consultant who observes a policy violation by another Independent Consultant
should submit a written and signed letter or e-mail 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
A.
Sponsorship
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.
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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.
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D.
3.8
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.
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.
3.10
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.
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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.
3.11
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.
3.12
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.
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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.
3.13
A.
Presentation of the Zurvita Opportunity
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.
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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.”
3.14
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
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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 email 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.
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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.
C.
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.
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.
B.
C.
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.
Zurvita will not issue commissions to an Independent Consultant without the receipt of an electronic
application and acceptance of the Independent Consultant agreement.
Zurvita reserves the right to postpone commission payments until such time the cumulative
amount meets or exceeds $20.
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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
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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,
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Zurvita will notify the appropriate Independent Consultant. If the Independent Consultant fails to refund
the Preferred or Retail customer within seven days, the Independent Consultant may be suspended or
terminated at the sole discretion of Zurvita.
A.
All returns by an Independent Consultant, must be made as follows:
1.
Obtain RMA (Return Merchandise Authorization number) from Zurvita.
2.
Ship items to the address provided by Zurvita Consultant Services when you are given
your RMA.
3.
Provide a copy of the invoice with the returned products or service. Such invoice must
reference the RMA and include the reason for the return.
4.
Ship back product in box exactly as it was delivered.
B.
All returns must be shipped to Zurvita pre-paid, as Zurvita does not accept shipping collect
packages. Zurvita recommends shipping returned product by UPS or FedEx with tracking, as
risk of loss in shipping the returned product shall be borne solely by the customer, or
Independent Consultant. If returned product is not received at Zurvita Distribution Center, it is
the responsibility of the customer, or Independent Consultant to trace the shipment and no
credit will be applied.
C.
The return of $500 or more of products accompanied by a request for a refund within a
calendar year, by an Independent Consultant, may constitute grounds for involuntary
termination.
8.0
PRIVACY POLICY
8.1
Introduction
This Privacy Policy is to ensure that all customers and Independent Consultants understand and
adhere to the basic principles of confidentiality.
8.2
A.
Expectation of Privacy
Zurvita recognizes and respects the importance its customers and Independent Distributors
place on the privacy of their financial and personal information. Zurvita will make reasonable
efforts to safeguard the privacy of, and maintain the confidentiality of its customers’, and Independent Consultants’ financial and account information and nonpublic personal information.
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B.
By entering into the online Zurvita Independent Consultant Agreement, an Independent
Consultant authorizes Zurvita to disclose his or her name and contact information to upline
Independent Consultants solely for activities related to the furtherance of the Zurvita business.
An Independent Consultant hereby agrees to maintain the confidentiality and security of such
information and to use it solely for the purpose of supporting and servicing his or her down-line
organization and conducting the Zurvita business.
C.
Zurvita may use Independent Consultants name for recognition purposes. If an Independent
Consultant would prefer the Company not to use their name, they must notify the Company in
writing. This information would include rank recognition and income levels achieved.
8.3
Employee Access to Information
Zurvita limits the number of employees who have access to customer’s and Independent
Consultants’ nonpublic personal information.
8.4
A.
Restrictions on the Disclosure of Account Information
Zurvita will not share non-public personal information or financial information about current or
former customers or Independent Consultants with third parties, except as permitted or required
by laws and regulations, court orders, or to serve the customers’, or Independent Consultants’ interests or to enforce its rights or obligations under these Policies and Procedures, or
Independent Consultant’s Agreement or with written permission from the account holder on file.
9.0
PROPRIETARY INFORMATION AND TRADE SECRETS
9.1
Business Reports, Lists, and Proprietary Information
A.
9.2
By completing and executing the Zurvita Independent Consultant Agreement, the Independent
Consultant acknowledges that Business Reports, lists of customer and Independent Consultant
names and contact information and any other information, which contain financial, scientific or
other information both written or otherwise circulated by Zurvita pertaining to the business of
Zurvita (collectively, “Reports”), are confidential and proprietary information and trade secrets belonging to Zurvita.
Obligation of Confidentiality
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A.
9.3
A.
9.4
A.
During the term of the Zurvita Independent Consultant Agreement and for a period of 1 year
after the termination or expiration of the Independent Consultant Agreement between the
Independent Consultant and Zurvita, the Independent Consultant shall not:
1.
Use the information in the reports to compete with Zurvita or for any purpose other than
promoting his or her Zurvita business
2.
Use or disclose to any person or entity any confidential information contained in the
reports, including the replication of the genealogy in another network marketing
company.
Breach and Remedies
The Independent Consultant acknowledges that such proprietary information is of such
character as to render it unique and that disclosure or use thereof in violation of this provision
will result in irreparable damage to Zurvita and to independent Zurvita businesses. Zurvita and
its Independent Consultants will be entitled to injunctive relief or to recover damages against
any Independent Consultant who violates this provision in any action to enforce its rights under
this section. The prevailing party shall be entitled to an award of attorney’s fees and expenses.
Return of Materials
Upon demand by Zurvita, any current or former Independent Consultant will return the original
and all copies of all “reports” to Zurvita together with any Zurvita confidential information in
such person’s possession.
10.0 ADVERTISING, PROMOTIONAL MATERIAL, USE OF COMPANY
NAMES AND TRADEMARKS
10.1
Labeling, Packaging, and Displaying Products - Zero Tolerance
A.
A Zurvita Independent Consultant may not re-label, re-package, refill, or alter labels of any
Zurvita product, or service, information, materials or programs in any way. Zurvita products
must only be sold in their original containers from Zurvita. Such re-labeling or re-packaging
violates Federal and State laws, which may result in criminal or civil penalties or liability.
B.
A Zurvita Independent Consultant shall not cause any Zurvita product or any Zurvita trade
name to be sold or displayed in retail establishments at the sole discretion of the Company and
except as following:
1.
The Independent Consultant must complete an Event Request Form when any
Business Opportunity Meeting has over 200 participants. Form to be provided by
Zurvita, documenting and communicating with corporate where products are being sold
at large Business Opportunity Meeting.
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2.
Examples of acceptable venues are where professional services are the primary
source of revenue, they are privately owned, and the product sales are secondary (e.g.,
doctor’s offices, clinics, health clubs, spas, gyms and beauty salons). Big box stores or
franchises may not represent the Zurvita product line.
3.
Selling or promoting of Zurvita products in mall kiosks, grocery stores, discount
establishments are strictly prohibited.
4.
The Independent Consultant is responsible to manage all products sold or displayed.
5.
Products must be offered at the Zurvita suggested retail and preferred customer pricing.
6.
The Independent Consultant must provide each customer with a Zurvita Sales Retail
Receipt (available in the Consultant Z-Center) at the time of sale.
7.
Products sold in any type of retail establishment must be displayed separately.
8.
Fairs, home shows, trade shows and other seasonal or annual events are not considered
to be traditional “retail establishments” and may be authorized on a case by case basis
by submitting the Event Request Form.
9.
C.
D.
Authorization to sell or display Zurvita products in any of the above situations, can be
revoked at any time at the discretion of Zurvita.
Zurvita reserves the right to refuse authorization to participate at any function that it does not
deem a suitable forum for the promotion of its products, or the Zurvita opportunity.
Trade Shows: Company products and opportunity may be displayed at trade shows by
Independent Consultants. Company products and opportunity are the only products and/or
opportunity that may be offered in the trade show booth. Only Company produced marketing
materials may be displayed or distributed.
No Independent Consultant may sell or promote the Company's products or business
opportunity at flea markets, swap meets, mall kiosks or garage sales, without prior Company
authorization. You must therefore submit an Event Request Form to the Zurvita Compliance
Department for authorization to sell or display products at these events. Event Request Forms
may be found in the Z-Center and submitted to Compliance at Compliance@Zurvita.com.
10.2
A.
Use of Company Names and Protected Materials
A Zurvita Independent Consultant must safeguard and promote the good reputation of Zurvita
and the products it markets. The marketing and promotion of Zurvita, the Zurvita opportunity,
the Compensation Plan, and Zurvita products will be consistent with the public interest, and
must avoid all discourteous, deceptive, misleading, unethical or immoral conduct and practices.
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B.
All promotional materials supplied or created by Zurvita must be used in their original form
and cannot be changed, amended or altered except with prior written authorization from the
Zurvita Compliance Department.
C.
The name of Zurvita, each of its product names and other names that have been adopted by
Zurvita in connection with its business are proprietary trade names, trademarks and service
marks of Zurvita. An Independent Consultant logo will be provided. As such, these marks are
of great value to Zurvita and are supplied to Independent Consultants for their use only in an
expressly authorized manner.
D.
A Zurvita Independent Consultant’s use of the name “Zurvita,” "Zeal," Zeal for Life," "Zeal for
Life Challenge," and all product names are restricted to protect Zurvita proprietary rights,
ensuring that the Zurvita protected names will not be lost or compromised by unauthorized use.
Use of the Zurvita name on any item not produced by Zurvita is prohibited except as follows:
1.
E.
[Independent Consultant’s name] Zurvita Independent Consultant
Further procedures relating to the use of the Zurvita name are as follows:
1.
All stationery (i.e. letterhead, envelopes, and business cards) bearing the Zurvita name
or logo intended for use by the Independent Consultant must be authorized in writing by
the Zurvita Compliance Department and have the Independent Consultant's logo
present.
2.
Zurvita Independent Consultants may list “Zurvita Independent Consultant or
Independent Consultant” in the white pages of the telephone directory or online under
his or her own name.
3.
Zurvita Independent Consultants may not use the name Zurvita in answering his or her
telephone, creating a voice message or using an answering service, such as to give the
impression to the caller that they have reached the corporate office. They may state,
“Zurvita Independent Consultant,”
F.
Certain photos and graphic images used by Zurvita in its advertising, packaging, and websites
are the result of paid contracts with outside vendors that do not extend to Independent
Consultants.
G.
Any inquiries by the media are to be referred immediately to the Compliance Department.
Independent Consultants are prohibited from granting radio, television, newspaper, tabloid,
Internet, or magazine interviews, or using public appearances, public speaking engagements, or
making any type of statement to the public media to publicize the Company, its products or
their Zurvita businesses, without the express prior (7 days) written authorization from the
Company. This policy is to assure accuracy and consistent public image.
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H.
A Zurvita Independent Consultant shall not appear on or make use of television or radio, or
make use of any other media to promote or discuss Zurvita or its programs, products without
prior written permission from the Zurvita Compliance Department.
I.
An Independent Consultant may not produce for sale or distribution any Company event or
speech, nor may an Independent Consultant reproduce Zurvita audio or video clips for sale or
for personal use without prior written permission from the Zurvita Compliance Department.
J.
Zurvita reserves the right to rescind its prior authorization of any sales aid or promotional
material to comply with changing laws and regulations and may request the removal from the
marketplace of such materials without financial obligation to the affected Independent
Consultant.
K.
An Independent Consultant shall not promote non-Zurvita products in conjunction with Zurvita
products on the same Websites or same advertisement without prior authorization from Zurvita
Compliance.
L.
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.
10.3
A.
Faxes and E-mail - Limitations
Except as provided in this section, an Independent Consultant may not use or transmit
unsolicited faxes, e-mail, mass e-mail distribution, or “spamming” that advertises or promotes the operation of his or her Zurvita business. The exceptions are:
1.
Faxes or e-mailing any person who has given prior permission or invitation.
2.
Faxing or e-mailing any person with whom the Independent Consultant has established
a prior business or personal relationship.
B.
In all states where prohibited by law, an Independent Consultant may not transmit, or cause to
be transmitted through a third party, (by telephone, facsimile, computer or other device), an
unsolicited advertisement to any equipment, which has the capacity to transcribe text or images
from an electronic signal received over a regular telephone line, cable line, ISDN, T1 or any
other signal carrying device, except as set forth in this section. No phone burners or auto dialers
are permitted.
C.
All faxes e-mail or computer broadcasted documents subject to this provision shall include
each of the following:
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D.
10.4
1.
A clear and obvious identification that the fax or e-mail message is an advertisement or
solicitation. The words “advertisement” or “solicitation” should appear in the subject
line of the message.
2.
A clear return path or routing information.
3.
The use of legal and proper domain name.
4.
A clear and obvious notice of the opportunity to decline to receive further commercial
facsimile or e-mail messages from the sender.
5.
Unsubscribe or opt-out instructions should be the very first text in the body of the
message box in the same size text as the majority of the message.
6.
The true and correct name of the sender, valid senders fax or e-mail address, and a valid
sender physical address.
7.
The date and time of the transmission.
8.
Upon notification by recipient of his or her request not to receive further faxed or emailed documents, a Zurvita Independent Consultant shall not transmit any further
documents to that recipient.
All e-mail or computer broadcasted documents subject to this provision shall not include any of
the following:
1.
Use of any third party domain name without permission.
2.
Sexually explicit materials.
Internet and Third-Party Website Restrictions
A.
An Independent Consultant who is a Regional Consultant or above, may use third-party sites
that contain materials copied from corporate sources (such as Zurvita brochures, CDs, videos,
tapes, events, presentations, and corporate Websites) or create his or her own Zurvita material
as long as it is authorized prior to use by Zurvita.
B.
This policy ensures brand consistency, allows customers and Independent Consultants to stay
up-to-date with changing products and information, facilitates enrollment under the correct
Sponsor, and assists in compliance with government regulations.
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C.
A Zurvita Independent Consultant may not sell Zurvita products or offer the Business
Opportunity using “on-line auctions,” or other sales platforms such as eBay, Craig's list, Amazon and any other auction website that goes against the spirit of our Policies and
Procedures.
D.
If any member of an Independent Consultant’s friends, neighbors, co-workers, or extended
family engages in any activity which, if performed by the Independent Consultant, would
violate any provision of the Agreement, such activity will be deemed unethical.
E.
An Independent Consultant may not use or attempt to register any of Zurvita's trade names,
trademarks, service names, service marks, product names, URLs, advertising phrases, the
Company’s name or any derivative thereof, for any purpose including, but not limited to,
Internet domain names (URL), third party Websites, email addresses, Web pages, or blogs.
10.5
Advertising and Promotional Materials
A.
You may not advertise any Zurvita products at a price LESS than the highest company
published. No special enticement advertising is allowed. This includes but is not limited to
offers of free entry, free shipping, or other such offers that grant advantages beyond those
available through the Company.
B.
Advertising and all forms of communications must adhere to principles of honesty and
integrity.
C.
All advertising, including but not limited to print, Internet, television, radio, etc., are subject to
prior written authorization by the Zurvita Compliance Department.
D. All requests for authorizations with respect to advertising must be directed to the Zurvita
Compliance Department via the authorization review process found in the Z-Center.
E.
Zurvita authorization is not required to place blind ads that do not mention Zurvita, its
employees, any of its products, services designs, symbols, programs, and trademarked,
copyrighted, or otherwise protected materials.
F.
An Independent Consultant who is currently paid at the Regional Consultant or higher rank
may create his or her own ads or promotional materials including the development of
commercials, infomercials and third party Websites. However, all such materials, and any
subsequent changes thereto shall be submitted to the Zurvita Compliance Department for
authorization.
G.
Zurvita reserves the right to rescind its prior authorization of submitted advertising or
promotional materials in order to comply with changing laws and regulations, and may require
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the removal of such advertisements from the market place without obligation to the affected
Independent Consultant. If this is to occur, Zurvita is not financially liable for reimbursement to
consultant for marketing material costs.
H.
Each Independent Consultant agrees not to use any written, printed, recorded or any other
material in advertising, promoting or describing any product of Zurvita or Zurvita business
which has not been supplied by the Company, unless such material has been submitted to
Zurvita and authorized in writing by the Company before being disseminated, published or
displayed. Such material can be submitted to “Compliance” through the Consultant’s Z-Center.
I.
Each Independent Consultant agrees to indemnify the Company and hold it harmless from any
and all liability including judgments, civil penalties, refund, attorney fees, court costs or lost
business incurred by the Company as a result of an Independent Consultant's unauthorized
representation concerning the Company of its products or services or use of its trademarks,
service marks or copyrights.
10.6
Social Media, Website and Internet
Social Media is any type of online media that invites, expedites or permits conversation,
comment, rating, and/or user generated content, as opposed to traditional media, which delivers
content but does not allow readers/viewers/listeners to participate in the creation or
development of content, or the comment or response to content. Examples of Social Media
include, but are not limited to, blogs, chat rooms, Facebook, MySpace, Twitter, LinkedIn,
Delicious, Pinterest, YouTube and any not named.
It is each Consultant's responsibility to follow the social media site’s terms of use. If the social
media site does not allow its site to be used for commercial activity, you must abide by the
site’s terms of use.
A.
Zurvita will maintain an official Zurvita Facebook Fan Page (in addition one for Zeal for Life),
and will monitor posts daily. Independent Consultants may not use the name Zurvita, Zeal, Zeal
for Life, Zeal Weight Management, and Zeal for Life Challenge in the title of a Facebook page.
Zurvita reserves the right to request the title of any Facebook page to be changed in the event it
infringes on the Zurvita trade name and copyright.
B.
Independent Consultants may not advertise or promote their Zurvita business or the Company’s products or marketing plan or use the Company’s name in any electronic media or transmission, including on the Internet (such as eBay, Amazon, Craigslist, Twitter, etc.) except
via a Consultant Website unless media or transmission is authorized by Company.
Independent Consultants may not have a third party act as a go between to sell product on
eBay, Amazon, Craigslist or other online sales websites.
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C.
No Independent Consultant may use “blind” ads on the Internet making product or income claims which are ultimately associated with Company products or services or the Company's
business plans.
D.
Independent Consultants may not use the trademarks of the Company or any derivative or
abbreviation thereof as a domain name or email address.
E.
The Company maintains an official corporate website. Independent Consultants are allowed to
advertise on the Internet through an authorized Company program which allows Independent
Consultants to personalize with the Independent Consultant's message and the Independent
Consultant's contact information (the “Consultant Website”) through the Brand Store.
F.
The Consultant Websites link directly to the Company website giving the Independent
Consultant a professional and Company-authorized presence on the Internet. Only these
authorized Consultant
G.
Websites may be used by Independent Consultants in connection with their Zurvita business or
unless Consultant Website is authorized by Zurvita.
H.
When using the Consultant Websites and the Internet, Independent Consultants must abide by
the guidelines set forth by the Company, including, but not limited to the following,
Independent Consultant shall:
1.
Not make offers or solicitations in the name of research, surveys or informal
communication, when the real intent is to sell products or sponsor Independent
Consultants;
2.
Whether or not they collect personal information from individual consumers, disclose to
the consumer in a prominent place on the Consultant Website how the consumer
information will be used;
3.
Provide individual consumers with an opportunity to prohibit the dissemination of
personal information collected on-line, and if any consumer requests that his/her
personal information not be shared, the Independent Consultant shall refrain from
sharing such information;
4.
Provide individual customers the option to terminate any further communication
between the Independent Consultant and the customer and if any customer requests that
an Independent Consultant cease communication, the Independent Consultant shall
immediately stop communicating upon such request;
5.
Abide by all laws and regulations regarding electronic communications;
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6.
7.
Not distribute content by use of distribution lists or to any person who has not given
specific permission to be included in such a process; spamming or distribution of chain
letters or junk mail is not allowed; and
Not distribute content that is unlawful, harassing, libelous, slanderous, abusive,
threatening, harmful, vulgar, obscene or otherwise objectionable material or which
could give rise to civil liability or otherwise violate any applicable local, state, national
or international law or regulation.
I.
When using the Consultant Website, Independent Consultants shall not defame, abuse, harass,
stalk, threaten or otherwise violate the legal rights (such as rights of privacy and publicity) of
others. Independent Consultants shall not publish, post, upload, distribute, or communicate any
inappropriate, profane, defamatory, infringing, obscene, indecent or unlawful topic, name,
material or information. All communications shall respect the rights, opinions and sensitivities
of others. Subjects not in support of the operation of an Independent Consultant’s Zurvita business, such as religious, political or social commentary should be avoided.
J.
Independent Consultants may not advertise on classified ad websites, for example, Monster,
Craig's list or Yahoo Jobs.
10.7
A.
Testimonial Permission
By executing online the Zurvita Independent Consultant Agreement, an Independent
Consultant gives Zurvita permission to use his or her testimonial or image and likeness in
corporate sales materials, including but not limited to print media, electronic media, audio and
video. In consideration of being allowed to participate in the Zurvita Business Opportunity, an
Independent Consultant waives any right to be compensated for the use of his or her testimonial
or image and likeness even though Zurvita may be paid for items or sales materials containing
such image and likeness.
In some cases, an Independent Consultant’s testimonial may appear in another Independent Consultant’s advertising materials. If an Independent Consultant does not wish to participate in
Zurvita sales and marketing materials, he or she should provide a written notice to the Zurvita
Compliance Department to ensure that his or her testimonial or image and likeness will not be
used in any corporate materials, corporate recognition pieces, advertising or recordings of
annual events.
10.8
A.
Telemarketing - Limitations
A Zurvita Independent Consultant must not engage in boiler room telemarketing
techniques in relation to the operation of the Independent Consultant’s Zurvita business. The
term “telemarketing” means the placing of one or more telephone calls to an individual or
entity unknown to them, to induce the purchase of Zurvita products, or to recruit them for the
Zurvita opportunity.
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B.
The Federal Trade Commission (“FTC”) and the Federal Communications Commission (“FCC”) each have laws that restrict telemarketing practices. Both Federal agencies, as well as a number of states,
have “do not call” regulations as part of their telemarketing laws of which Zurvita Independent Consultants are required to abide by.
C.
While an Independent Consultant may not consider himself or herself a “telemarketer” in the traditional sense, these regulations broadly define the term “telemarketer” and “telemarketing” so that the unintentional action of calling someone whose telephone number is listed on the
Federal “Do Not Call” registry could cause the Independent Consultant to violate the law. These regulations must not be taken lightly, as they carry significant penalties (up to $11,000
per violation).
D.
“Cold calls” or “state-to-state calls” made to prospective customers, or Independent Consultants that promote either Zurvita products or the Zurvita opportunity is considered
telemarketing and is prohibited.
E.
Exceptions to Telemarketing Regulations
A Zurvita Independent Consultant may place telephone calls to prospective customers, or
Independent Consultants under the following limited situations:
F.
1.
If the Independent Consultant has an established business relationship with the prospect.
2.
If the Independent Consultant receives written and signed permission from the prospect
authorizing the Independent Consultant to call. The authorization must specify the
telephone number(s) that the Independent Consultant is authorized to call.
3.
If the call is to family members, personal friends, and acquaintances. However, if an
Independent Consultant makes a habit of collecting excessive business cards from
everyone he/she meets and subsequently calls them, the FTC may consider this a form
of telemarketing that is not subject to this exemption.
4.
Zurvita Independent Consultants engaged in calling “acquaintances,” must make such
calls on an occasional basis only and not as a routine practice.
An Independent Consultant shall not use automatic telephone dialing systems in the operation
of his or her Zurvita businesses. The use of the Company's name or copyrighted materials may not be
made with automatic calling devices or “boiler room” operations either to solicit Independent Consultants or retail customers.
G.
Failure to abide by Zurvita policies or regulations as set forth by the FTC and FCC regarding
telemarketing may lead to consequences against the Independent Consultant’s position, up to and including termination of the position.
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H.
By executing the Independent Consultant agreement or by accepting commissions , other
payments or awards from Zurvita, an Independent Consultant gives permission to Zurvita and
other Independent Consultants to contact them as permitted under the Federal Do Not Call
regulations.
I.
In the event an Independent Consultant violates this section, Zurvita reserves the right to
institute legal proceedings to obtain monetary or equitable relief.
11.0 INTERNATIONAL MARKETING
11.1
International Marketing Policy
A.
A Zurvita Independent Consultant is authorized to sell Zurvita products, to customers,
Independent Consultants only in the countries in which Zurvita is authorized to conduct
business, according to the Policies and Procedures of each country. Zurvita Independent
Consultants may not sell products in any country where Zurvita products have not received
applicable government authorization or approval.
B.
An Independent Consultant may not, in any unauthorized country, conduct sales, enrollment or
training meetings, enroll or attempt to enroll potential customers, or Independent Consultants,
nor conduct any other activity for the purpose of selling Zurvita products, establishing a sales
organization, or promoting the Zurvita business opportunity.
12.0 CHANGES TO AN INDEPENDENT CONSULTANT BUSINESS
12.1
A.
12.2
A.
Modification of the Independent Consultant Agreement
A Zurvita Independent Consultant may modify his or her existing Independent Consultant
Agreement (i.e., change a social security number to a Federal ID number, add a Spouse or
partner to the account, or change the form of ownership from an individual to a business owned
by the Independent Consultant) by submitting a written request, accompanied by a new
Independent Consultant Agreement and the requested documentation completed with fresh
signatures (not a “crossed out” or “white-out” version of the first agreement), and any appropriate supporting documentation.
Change Sponsor for Active Independent Consultants
Maintaining the integrity of the organizational structure is mandatory for the success of Zurvita
and our Independent Consultants. Zurvita discourages any change of sponsor. The company
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reserves the right to review any submitted complaints and make a formal decision in the event
of a request for change of sponsor or placement.
In the unusual event that a change of sponsorship is approved, an Independent Consultant must
comply with following procedures:
1.
Submit a written request via fax or email to Compliance
2.
Submit a Zurvita Independent Consultant agreement showing the correct Sponsor and
Placement, and any appropriate supporting documentation
3.
If a Consultant is requesting their downline transfer with them, they must submit a
written request to Zurvita, accompanied by signed letters of approval from all eight
(8) immediate upline Consultants. Zurvita will review this request on a case by case
basis.
E.
Based on a case by case basis and upon authorization, the Independent Consultant’s down-line,
if any, will transfer with the Independent Consultant.
F.
After the first 60 days from initial enrollment, Zurvita will honor the Sponsor/Placement as
shown:
G.
12.3
A.
B.
D.
1.
On the most recently signed Independent Consultant agreement on file or
2.
Self-enrolled on the Website (i.e., electronically signed Web agreement).
3.
If for any reason after the 60 days, Independent Consultants must send in a corporate
request and we will then consider authorization based on the merits of the request.
Zurvita retains the right to approve or deny any requests to change Sponsor or Placement, and
to correct any errors related thereto at any time and in whatever manner it deems necessary.
Change Sponsor or Placement for Inactive Independent Consultants
Once the Independent Consultant has been out of the business for six months by resigning, the
Independent Consultant is eligible to re-enroll in Zurvita under the Sponsor/Placement of their
choice.
Such Independent Consultant does not retain former rank, down-line, or rights to commissions
from his or her former organizations.
Zurvita reserves the right to correct Sponsor or Placement errors at any time and in whatever
manner it deems necessary.
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12.4
Change Organizations
A.
If a Zurvita Independent Consultant wishes to transfer organizations, he or she must submit a
letter of resignation to the Zurvita Consultant Services Department and remain inactive from
Zurvita for 6 months from the receipt of the letter before being eligible to re-enroll under a
different Sponsor/Placement.
B.
Zurvita retains the right to approve or deny any request to re-enroll after an Independent
Consultant’s resignation.
C.
If re-enrollment is authorized, the former Independent Consultant will be issued a new Zurvita
ID number and will be required to submit a new Independent Consultant agreement. The
Independent Consultant will not be entitled to keep any former rank, down-line, or rights
to commissions from any prior organization.
D.
Transfers may not be done outside of the original organization unless prior authorization is
granted from Zurvita.
12.5
Unethical Sponsoring
A.
Unethical sponsoring activities include, but are not limited to, enticing, bidding or engaging in
unhealthy competition in trying to acquire a prospect or new Independent Consultant from
another Independent Consultant or influencing another Independent Consultant to transfer to a
different sponsor.
B.
Allegations of unethical sponsoring must be reported in writing to the Zurvita Compliance
Department within the first 30 days of enrollment. If the reports are substantiated, Zurvita may
transfer the Independent Consultant or the Independent Consultant’s down-line to another
sponsor, Placement or organization without authorization from the current Upline Sponsor or
Placement Independent Consultants. Zurvita remains the final authority in such cases.
12.6
Sell, Assign or Delegate Ownership
A.
In order to preserve the integrity of the hierarchical structure, it is necessary for Zurvita to place
restrictions on the transfer, assignment, or sale of a position.
B.
A Zurvita Independent Consultant may not sell or assign his or her rights or delegate his or her
position as an Independent Consultant without prior written authorization by Zurvita, which
authorization will not be unreasonably withheld. Any attempted sale, assignment, or delegation
without such authorization may be voided at the discretion of Zurvita.
C.
Should the sale be authorized by Zurvita, the Buyer assumes the position of the Seller at the
current qualified title, but at the current “paid as” rank, at the time of the sale and acquires the seller’s down-line.
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D.
To request corporate authorization for a sale or transfer of a Zurvita position, the following
items must be submitted to the Zurvita Compliance Department:
1.
2.
3.
4.
5.
Consultant Account Transfer Form properly completed, with the requisite
signatures.
A copy of the Sales Agreement signed and dated by both Buyer and Seller.
A Zurvita Independent Consultant Agreement completed and signed by the
Buyer.
Payment of the $100 administration fee.
Any additional supporting documentation requested by Zurvita.
E.
The sale of the position must be offered to the upline of equal for a right of first refusal.
F.
The purchaser will be subject to the non-compete rules of the seller. If the seller cross recruits
or competes with Zurvita, Zurvita has the right to terminate the position. If the seller violates
the Policies and Procedures the buyer may be held accountable.
G.
Any debt obligations that either Seller or Buyer may have with Zurvita must be satisfied prior
to the approval of the sale or transfer by Zurvita.
H.
A Zurvita Independent Consultant who sells his or her position is not eligible to re-enroll as a
Zurvita Independent Consultant in any organization for 6 full calendar months following the
date of the sale except as otherwise expressly set forth in these Policies and Procedures.
I.
In the event a Zurvita Independent Consultant requests to gift their position to someone else, a
Consultant Account Transfer Form must be submitted.
12.7
A.
Separating a Zurvita Business
Pending a divorce or dissolution of a partnership or other business entity, the parties must adopt
one of the following methods of operation:
1.
2.
One of the parties may, with the written consent of the other(s), operate the Zurvita
business whereby the relinquishing Spouse, shareholders, partners, members or trustees
authorize Zurvita to deal directly and solely with the other Spouse, non-relinquishing
shareholder, partner, member or trustee.
The parties may continue to operate the Zurvita business jointly on a “business as
usual” basis, whereupon all compensation paid by Zurvita will be paid in the name
designated by the Independent Consultants or in the name of the entity to be divided, as
the parties may independently agree between them. If no name is stipulated, Zurvita
will pay compensation to the name on record and in such event, the Independent
Consultant named on the account shall indemnify Zurvita from any claims from the
other business owner or the other Spouse with respect to such payment.
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B.
C.
12.8
A.
B.
Zurvita recognizes only one Down-line organization and will issue commissions per one Zurvita
business per commission cycle. Under no circumstances will the Down-line of an
organization be divided, nor will Zurvita split commissions and bonuses. 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.
If a relinquishing Spouse, partner or owner of the business has completely relinquished
(“Relinquishing Party”), in writing, all rights to the original Zurvita business, he or she may
immediately thereafter re-enroll under the Sponsor and Placement of his or her choice. In such
cases, however, the Relinquishing Party shall have no rights to, and shall not solicit, any
Independent Consultant or active customer in the former organization, and must develop a new
business in the same manner as any other new Zurvita Independent Consultant. An Independent
Consultant in the Relinquishing Party’s former Down-line who wishes to transfer to the
Relinquishing Party’s new organization or to any other organization, must comply with the requirements.
Succession
Upon the death or incapacity of an Independent Consultant, the Independent Consultant’s business may be passed on to his or her legal successors in interest (successor). Whenever a
Zurvita business is transferred by will or other testamentary process, the successor acquires the
right to collect all bonuses and commissions of the deceased Independent Consultant’s sales organization. The successor must:
1.
Complete and sign a new Zurvita Independent Consultant agreement
2.
Comply with the terms and provisions of the Independent Consultant agreement
Bonuses and commissions of a Zurvita business transferred based on this section will be
paid to the successor. The successor must provide Zurvita with an “address of record” to which all bonuses and commissions will be sent. Commissions will be based on the
current performance of the position, not the highest rank or volume achieved.
C.
If the business is bequeathed to joint devisees (successor), they must form a business entity and
acquire a Federal taxpayer identification number. Zurvita will issue all bonuses and
commissions and one 1099 Miscellaneous Income Tax form to the business entity only.
D.
Appropriate legal documentation must be submitted to Zurvita Compliance Department to
ensure the transfer is done properly. To affect a testamentary transfer of a Zurvita business, the
successor must provide the following to Zurvita Compliance department:
1.
A certified copy of the death certificate; and
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2.
E.
A notarized copy of the will or other appropriate legal documentation establishing the
successor’s right to the Zurvita business.
To complete a transfer of the Zurvita business because of incapacity, the successor must
provide the following to the Zurvita Compliance department:
1.
A notarized copy of an appointment as trustee;
2.
A notarized copy of the trust document or other appropriate legal documentation
establishing the trustee’s right to administer the Zurvita business; and
3.
A completed Independent Consultant agreement executed by the trustee.
F.
If the successor is already an existing Independent Consultant, Zurvita will allow such
Independent Consultant to keep his or her own position plus the inherited position active for up
to 6 months. By the end of the 6 month period, the Independent Consultant must have
compressed (if appropriate), sold or otherwise transferred either the existing position or the
inherited position.
G.
If the successor wishes to terminate the Zurvita position, he or she must submit a notarized
statement stating the desire to terminate the position, along with a certified copy of the death
certificate, appointment as trustee, or other appropriate legal documentation or let the position
go inactive.
H.
Upon written request, Zurvita may grant a 1 month bereavement waiver and pay out at the last
“paid as” rank.
12.9
A.
Resignation/Voluntary Cancellation
An Independent Consultant may immediately terminate his or her position by submitting a
written notice or email to the Zurvita Compliance Department billing@zurvita.com . The
written notice must include the following:
1.
2.
3.
4.
5.
B.
The Independent Consultant’s intent to resign
Date of resignation
Zurvita Identification Number
Reason for resigning
Signature.
A Zurvita Independent Consultant may not use resignation as a way to immediately change
Sponsor and Placement. Instead, the Independent Consultant who has voluntarily resigned is
not eligible to reapply for a position or have any financial interest in a Zurvita business for 6
months from the receipt of the written notice of resignation.
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12.10 Dynamic Compression & Roll-Up
At the end of the month if an Independent Consultant drops below $70 Personal Business Volume, that
Consultant will receive an email stating they will not be paid overrides and will only be paid
commission on personal sales. If that Independent Consultant remains below $70 Personal BV for the
following month, the organization is dynamically compressed upline for commission purposes only for
the monthly commission pay period. The first month the Consultant reaches $70 PBV, the compression
will be lifted and will be paid according to their qualified rank with no compression. *Inactive
Consultants will have their organization compressed for commission purposes but not have their
organization roll up unless they choose to cancel.
A Roll Up of downline occurs when a Consultant chooses to cancel their account status or when a
Consultant has been terminated. Roll up will also take place when a Consultant fails to pay (if required)
their $25 annual renewal fee. If any of these circumstances arise, all frontline Consultants to the
terminated or cancelled Consultant will have their Placed Enroller changed to their next active upline
Consultant.
The Zurvita Independent Consultant who is involuntarily terminated by Zurvita may not reapply for a position, either under his or her present name or any other name or entity, without
the express written consent of an officer of Zurvita, following a review by the Zurvita Peer
Review Panel. In any event, such Independent Consultant may not re-apply for a position for 12
months from the date of termination.
12.11 Effect of Cancellation
A.
Following an Independent Consultant’s cancellation for inactivity or voluntary or involuntary termination (collectively, a “cancellation”) such Independent Consultant:
1. Shall have no right, title, claim or interest to any commission or bonus from the sales
generated by the Independent Consultant’s former organization or any other payments
in association with the Independent Consultant’s former position.
2. Effectively waives any and all claims to property rights or any interest in or to the
Independent Consultant’s former down-line organization.
3. Shall receive commissions and bonuses only for the last full pay period in which he or
she was active prior to cancellation, less any amounts withheld during an investigation
preceding an involuntary cancellation, and less any other amounts owed to Zurvita.
13.0 DISCIPLINARY SANCTIONS
13.1
Imposition of Disciplinary Action - Purpose
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A.
13.2
A.
It is the spirit of Zurvita that integrity and fairness should pervade among its Independent
Consultants, thereby providing everyone with an equal opportunity to build a successful
business. Therefore, Zurvita reserves the right to impose disciplinary sanctions at any time,
when it has determined that an Independent Consultant has violated the agreement or any of
these Policies and Procedures or the Compensation Plan as they may be amended from time to
time by Zurvita.
Consequences and Remedies of Breach
Disciplinary actions may include one or more of the following:
1. Monitoring an Independent Consultant’s conduct over a specified period of time to assure
compliance
2. Issuance of a written warning or requiring the Independent Consultant to take immediate
corrective action
3. Imposition of a fine (which may be imposed immediately or withheld from future
commissions) or the withholding of commission checks (a Commission Hold) until the matter
causing the Commission Hold is resolved or until Zurvita receives adequate additional
assurances from the Independent Consultant to ensure future compliance;
4. Suspension from participation in Company or Independent Consultant events, rewards, or
recognition
5. Suspension of the Zurvita Independent Consultant agreement and position for one or more pay
periods
6. Involuntary termination of the Independent Consultant’s agreement and position
7. Any other measure which Zurvita deems feasible and appropriate to justly resolve injuries
caused by the Independent Consultant’s policy violation or contractual breach; OR
8. Legal proceedings for monetary or equitable relief.
14.0 DISPUTE RESOLUTION
14.1
A.
Grievances
If a Zurvita Independent Consultant has a grievance or complaint against another Independent
Consultant regarding any practice or conduct relating to their respective Zurvita businesses, he
or she is encouraged to resolve the issue directly with the other party. If an agreement cannot be
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reached, it must be reported directly to the Zurvita Compliance Department as outlined below
in this Section.
B.
The Zurvita Compliance Department and/or Peer Review Panel will be the final authority on
settling such grievance or complaint and its written decision shall be final and binding on the
Independent Consultants involved.
C.
Zurvita will confine its involvement to disputes regarding Zurvita business matters only.
Zurvita will not decide issues that involve personality conflicts or unprofessional conduct by or
between Independent Consultants outside the context of a Zurvita business. These issues go
beyond the scope of Zurvita and may not be used to justify a Sponsor or Placement change or a
transfer to another Zurvita organization.
D.
Zurvita does not consider, enforce, or mediate third party agreements between Independent
Consultants, nor does it provide names, funding, or advice for obtaining outside legal counsel.
E.
Process for Grievances:
1.
The Zurvita Independent Consultant should submit a written letter or email of complaint
directly to the Zurvita Compliance Department. The email or letter shall set forth the
details of the incident as follows:
a.
b.
c.
d.
e.
f.
2.
The nature of the violation;
Specific facts to support the allegations;
Dates;
Number of occurrences;
Persons involved; and
Supporting documentation.
Upon receipt of the written complaint, the Zurvita Peer Review Panel and/or
Compliance Department will conduct an investigation according to the following
procedures:
a.
b.
c.
The Compliance Department will send an acknowledgment of receipt to the
complaining Independent Consultant;
The Compliance Department will provide a verbal or written notice of the
allegation to the Independent Consultant under investigation. If a written notice
is sent to the Independent Consultant, he or she will have 15 business days from
the date of the notification letter to present all information relating to the
incident for review by Zurvita
The Compliance Department will thoroughly investigate the complaint, consider
all the submitted information it deems relevant, including information from
collateral sources. Due to the unique nature of each situation, determinations of
the appropriate remedy will be on a case by case basis, and the length of time to
reach a resolution will vary.
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d.
F.
14.2
During the course of the investigation, the Compliance Department will only
provide periodic updates simply stating that the investigation is ongoing. No
other information will be released during this time. Independent Consultant
calls, letters, and requests for “progress reports” during the course of the investigation will not be answered or returned.
Zurvita will make a final decision and timely notify the Zurvita Independent Consultants
involved.
Suspension and Termination Process
Zurvita reserves the right to warn, suspend or terminate an Independent Consultant’s position for, but not limited to, the following reasons;
1. Violation of any terms or conditions of the Independent Consultant agreement
2. Violation of any provision in these Policies and Procedures
3. Violation of any provision in the Compensation Plan
4. Violation of any applicable law, ordinance, or regulation regarding the Zurvita business
5. Engaging in unethical business practices or violating standards of fair dealing; or
6. Returning over $500 worth of products and sales tools for a refund within a 12 month
period.
The Zurvita Independent Consultant who is involuntarily terminated by Zurvita may not reapply for a position, either under his or her present name or any other name or entity, without
the express written consent of an officer of Zurvita, following a review by the Zurvita Peer
Review Panel. In any event, such Independent Consultant may not re-apply for a position for 12
months from the date of termination.
The Independent Consultant Agreement may be canceled with our without cause by either
party upon a thirty (30) day prior written notice to the other party.
a. The Company reserves the right to warn, suspend or terminate (as necessary) any
Independent Consultant at any time for cause when it is determined that the
Independent Consultant has violated the provisions of the Independent Consultant
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Agreement, including the provisions of these Policies and Procedures. Such involuntary
termination shall be made by the Company at its sole discretion.
b. If an Independent Consultant discredits the name of Zurvita, it may be found to be
cause.
c. If an Independent Consultant misrepresents Zurvita by making claims contrary to
Zurvita literature, either product or income claims, it may be found to be cause.
d. Other material cause, at the sole discretion of Zurvita.
When a decision is made to suspend or terminate an Independent Consultant, Zurvita will
inform the Independent Consultant in writing that their position may be suspended or
terminated immediately, effective of the date of the written notification or other specified date.
Upon an involuntary termination, the Company shall notify the Independent Consultant by
email and U.S. standard mail at the latest Independent Consultant’s address listed with the
Company. In the event of a termination, the terminated Independent Consultant agrees to
immediately cease representing him/herself as an Independent Consultant of Zurvita.
The Independent Consultant will have fourteen (14) days from the date of the mailing of the
notification letter or email in which to respond to and thereby appeal in writing the suspension
or termination. The Independent Consultant’s written appeal must be received or postmarked within fourteen (14) days of the suspension/termination letter. If the appeal is not received or
postmarked within the fourteen (14) day period, this failure to respond in a timely fashion will
be considered acceptance of the suspension/termination.
If the Independent Consultant does file a timely appeal of termination, Zurvita and a review
panel of five will review its decision, along with any other information it may deem relevant,
reconsider any other appropriate action, and notify the Independent Consultant of its decision.
The decision will be final and subject to no further review. In the event the
suspension/termination is not rescinded, suspension/termination will be effective as of the date
of the original designated suspension/termination date. If the Independent Consultant takes
exception with the final outcome following the peer review process, the Consultant must
proceed to mandatory arbitration as specified in Section 14.2.
14.3
A.
Arbitration
Any controversy or claim arising out of or relating to the Zurvita Independent Consultant
agreement unresolved by way of the Zurvita peer review process, the Independent
Consultant’s business or any dispute between Zurvita and the Independent Consultant,
shall be settled by binding and confidential arbitration administered by the American
Arbitration Association under its commercial arbitration rules, and judgment on the
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award rendered by the arbitrator may be entered in any court having jurisdiction
thereof. Any such arbitration shall be held in Houston, Texas. There shall be one arbitrator,
who shall have expertise in business law transactions and who shall be knowledgeable in the
direct selling industry, selected from a panel provided by the American Arbitration Association.
B.
The prevailing party in any such arbitration shall be entitled to receive from the losing party, all
costs and expenses of arbitration, including reasonable attorney’s fees and filing fees. The decision of the arbitrator shall be final and binding on the parties and may, if necessary, be
reduced to judgment in any court of competent jurisdiction.
C.
This agreement to arbitration shall survive any termination or expiration of the Independent
Consultant agreement.
D.
Nothing in these Policies and Procedures shall prevent Zurvita from applying for or obtaining
from any court having jurisdiction a writ of attachment, a temporary injunction, preliminary
injunction, permanent injunction, or other relief available to safeguard and protect Zurvita
interests or its Confidential Information prior to, during or following the filing of an arbitration
or other proceeding, or pending the rendition of a decision or award in connection with any
arbitration or other proceeding.
E.
NO CLASS ACTION, OR OTHER REPRESENTATIVE ACTION OR PRIVATE
ATTORNEY GENERAL ACTION OR JOINDER OR CONSOLIDATION OF ANY
CLAIM WITH A CLAIM OF ANOTHER PERSON OR CLASS OF CLAIMANTS
SHALL BE ALLOWABLE.
F.
These Policies and Procedures and any arbitration involving an Independent Consultant and
Zurvita shall be governed by and construed in accordance with the laws of the state of Texas,
without reference to its principles of conflict of laws.
14.3
A.
14.4
A.
Severability
If any provision of these Policies and Procedures is found to be invalid, or unenforceable for
any reason, only the invalid provision shall be severed. The remaining terms and provisions
hereof shall remain in full force and shall be construed as if such invalid or unenforceable
provision never had comprised a part of these Policies and Procedures.
Waiver
Only an officer of Zurvita can, in writing, affect a waiver of the Zurvita Policies and
Procedures. Zurvita's waiver of any particular breach by an Independent Consultant shall not
affect Zurvita’s rights with respect to any subsequent breach, nor shall it affect the rights or
obligations of any other Independent Consultant.
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B.
14.5
The existence of any claim or cause of action of an Independent Consultant against Zurvita
shall not constitute a defense to Zurvita's enforcement of any term or provision of these Policies
and Procedures.
Successors and Claims
The agreement shall be binding upon and inure to the benefit of the parties and their respective
successors and assigns.
15.0 GOVERNING LAW
These Policies and Procedures shall be governed by and construed in accordance with the Laws
of the State of Texas and the exclusive jurisdiction of the United States courts.
16.0
MONTANA RESIDENTS
A Montana resident may cancel his or her Consultant Agreement within 15 days from the date
of enrollment and receive a 100% refund for all fees paid and products or services purchased
prior to the date of cancellation.
17.0 LOUISIANA RESIDENTS
Notwithstanding the foregoing, residents of the State of Louisiana shall be entitled to bring an
action against Zurvita in their home forum and pursuant to Louisiana law.
18.0 ZURVITA GLOSSARY OF TERMS
ACTIVE INDEPENDENT CONSULTANT: An Independent Consultant who has either an active
website or personal business volume. Active Independent Consultants in good standing have the right
to sponsor and enroll others into Zurvita.
AGREEMENT: The contract between the Company and each Independent Consultant; includes the
Consultant Agreement, the Zurvita Policies and Procedures, and the Zurvita Compensation Plan, all in
their current form and as amended by Zurvita in its sole discretion. These documents are collectively
referred to as the “Agreement.”
CANCEL: The termination of an Independent Consultant’s business. Cancellation may be either voluntary, involuntary, or through non-renewal.
COMMISSION QUALIFIED: An Independent Consultant who has satisfied the minimum volume
requirements, as set forth in the Compensation Plan.
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COMPENSATION PLAN: The guidelines and referenced literature for describing how Independent
Distributors can generate commissions and bonuses.
CROSS-LINE SPONSORING: The enrollment into a different line of sponsorship of an individual, or
business entity that already has a signed the Independent Consultant Agreement.
CUSTOMER: A customer who purchases Zurvita products and does not engage in building a business
or retailing product.
EXPIRED: When an Independent Consultant no longer has an active status.
INDEPENDENT CONSULTANT: An individual who purchases product, generates retail sales and
business building commissions.
LINE OF SPONSORSHIP (LOS): A report generated by Zurvita that provides critical data relating to
the identities of Independent Distributors, sales information, and enrollment activity of each
Independent Consultant’s organization. This report contains confidential and trade secret information which is proprietary to Zurvita.
ORGANIZATION: The customers and Independent Distributors placed below a particular
Independent Consultant.
OFFICIAL ZURVITA MATERIAL: Literature, audio or video tapes, and other materials developed,
printed, published, and distributed by Zurvita to Independent Distributors.
PLACEMENT: Your position inside your Sponsor’s organization.
PERSONAL BUSINESS VOLUME: The volume that an Independent Consultant generates with the
sale of products.
RECRUIT: For purposes of Zurvita’s Conflict of Interest Policy, the term “Recruit” means the actual or attempted solicitation, enrollment, encouragement, or effort to influence in any other way, either
directly, indirectly, or through a third party, another Zurvita Independent Consultant or customer to
enroll or participate in another multilevel marketing, network marketing, or direct sales opportunity.
RESALABLE: Products shall be deemed “resalable” if each of the following elements is satisfied: 1) They are unopened and unused
2) Original packaging and labelling has not been altered or damaged
3) They are in a condition such that it is a commercially reasonable practice within the trade to
sell the merchandise at full price, and
4) The product contains current Zurvita labelling. Any merchandise that is clearly identified at
the time of sale as nonreturnable, discontinued, or as a seasonal item, shall not be resalable.
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SOLICITATION: An Independent Consultant that entices other Zurvita members to non-Zurvita
programs.
SPONSOR: An Independent Consultant who enrolls a customer, Retailer, or another Independent
Consultant into the Company, and is listed as the Sponsor on the Independent Consultant Agreement.
The act of enrolling others and training them to become Independent Distributors is called
“sponsoring.”
TERMINATED: Independent Consultants not renewing by the renewal date shall be deemed to have
voluntarily terminated their Independent Consultant relationship with the Company.
UP-LINE: This term refers to the Independent Consultants above a particular Independent Consultant
in a sponsorship line up to the Company. It is the line of sponsors that links any particular Independent
Consultant to the Company.
Zurvita
800 Gessner Road
Suite 110
Houston, TX 77024
Consultant/Customer Services:
Phone: 713-464-5002
Email: consultantservices@zurvita.com
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