Violations of any of the policies or procedures set forth in this
document shall result in disciplinary action, which may include the termination
of the offending Independent Representative’s contract by EMERATEL.
1.0 INTRODUCTION
1.1 Purpose of Policies and Procedures
The following Policies and Procedures have been created for EMERATEL’s
Independent Representatives, (hereinafter referred to as “IR”), a guide as to
how to operate a successful network marketing business. EMERATEL is a network
marketing company that offers various products and services to customers. EMERATEL
abides by the Direct Selling Association’s (DSA) Code of Ethics. We are an
honest company that encourages integrity and discourages our IRs from engaging
in any deceptive, unlawful, or unethical customer or recruiting practices.
a. IRs must represent EMERATEL with integrity and not do anything that may
damage or negatively affect the Company’s reputation
b. IRs must truthfully identify themselves, the Company, its products, and its
purpose, to all
Prospective customers, prospective and existing IRs.
c. IRs must present EMERATEL products and services accurately.
d. IRs must not make representation or projections about actual or possible
earnings.
e. IRs must not make statements, promises, or offer testimonials that might
mislead customers or prospects.
1.2 Compensation Plan/Policies and Procedures Incorporated into IR Agreement
It is the IR's responsibility to ensure that they are operating under the most
recent version of these Policies and Procedures. They must also supply any new
IRs enrolling in their downline with the most recent version of these Policies
and Procedures, as well as the EMERATEL compensation plan prior to said
applicant signing the IR Agreement If an IR has questions regarding any policy
or rule, they agree to contact someone in their upline or EMERATEL Rep Services
for help. Throughout these Policies and Procedures, when the term “IR
Agreement” is used, it refers to incorporation of the entire Agreement EMERATEL
IR Application, the Policies and Procedures and the EMERATEL Compensation Plan
into and as a part of the Independent Representative Agreement.
1.3 Changes to the IR Agreement
Amendments to the IR Agreement shall be effective upon notice to EMERATEL
Representatives by one or more of the following methods: (1) posting on the
Company’s official website; (2) electronic mail (email); (3) video email; (4)
inclusion in Company publications; (5) inclusion in commissions or bonus
checks; or (6) special mailings.
1.4 Delays/ lack of ability to Perform
EMERATEL shall not be responsible for delays or failures in performance of its
obligations when performance is made commercially impossible due to
circumstances beyond its reasonable control. These include, without limitation:
fire, death, strikes, labor difficulties, riot, war, curtailment of a party’s
source of supply, or government decrees or orders.
2.0
INDEPENDENT REPRESENTATIVE PROCEDURES
2.1 Requirements for Becoming an IR
To become an EMERATEL IR, each applicant must:
a. Be recognized as being of legal age in his or her state or province of
residence
b. Reside in the United States, Canada, or other country that EMERATEL has
authorized distributorships to be sold or declared is open for business
c. Have a valid Social Security, Social Insurance or Federal Tax ID number
d. Submit a properly completed and signed IR Application and Agreement with
registration fee to EMERATEL (originals or by the online sign up process)
Status as an EMERATEL IR becomes effective when the IR Application and
registration fees have been processed by EMERATEL. Until an IR’s enrollment is
effective, the IR is not eligible to earn commissions
2.2 Online IR Registration
An IR is required to register online via www.EMERATEL.biz or through the same
site with the extension representing the upline’s invitation to join. The IR
must complete this process, which includes reading, understanding and agreeing
to the Policies and Procedures set forth herein, to obtain a valid Rep
Identification Number. The IR must agree to these Policies and Procedures as
part of the application process.
2.3 IR Privileges
Once an IR's Application and IR Agreement have been accepted by EMERATEL, the
benefits of the Compensation Plan and the IR Agreement become available to the
new IR. These benefits include the right to:
a. Participate in the EMERATEL Compensation Plan (receive bonuses and
commissions when eligible),
b. Sponsor other individuals as Customers or IRs into the EMERATEL business and
thereby, build an organization and advance through the EMERATEL leadership
positions as described in the EMERATEL Compensation Plan,
c. Participate in EMERATEL-sponsored support, service, training, motivational
and recognition functions, upon payment of appropriate charges, if applicable,
and;
d. Receive periodic EMERATEL literature and other EMERATEL communications as an
Active IR,
e. Participate in promotional and incentive programs and contests sponsored by EMERATEL
for its IRs,
f. Retail EMERATEL products or services, which are described in the EMERATEL
product literature website and earn income as described in the EMERATEL
Compensation Plan,
g. Purchase EMERATEL products and services at the IR price.
2.4 ID Requirements
All IRs are required to provide a valid Social Security, Social Insurance, or a
Federal Employer Identification number belonging to themselves to EMERATEL on
the IR Application and Agreement. Upon enrollment, EMERATEL will provide an IR
Identification Number to the IR by which he or she will be identified. This
number will be used to place orders, and track commissions and bonuses.
2.5 Business Entities and Joint Applicant Restrictions
A Business Entity may apply to become an EMERATEL IR by submitting a completed Business
Entity IR Application and Agreement and Supplemental Business Entity
Application with its tax identification number, signed by the person having
authority to bind the business. The Business Entity must also provide a W-9 tax
form and copies of their business documents corresponding to their business
type referenced as follows:
a. Partnership And Limited Liability Partnerships: Partnership Agreement and
Certificate of Limited Liability Partnership filed with the appropriate
authority in that state or province (if applicable).
b. Limited Liability Companies: Limited-Liability Company Charter and/or
Operating Agreement filed with appropriate authority associated with that state
or province.
c. Corporations: Corporate Charter and/or Articles of Incorporation with the
appropriate authority associated with that state or province.
d. Trusts: Trust Agreement.
e. Proprietorship doing business under an assumed name (DBA): Certificate of
Fictitious Name, if required by state or province where the business is
located.
f. Charitable/ Nonprofit Organizations: Organization’s Corporate Charter,
Articles of Incorporation, Articles of Association, Constitution or other
enabling document and Federal government’s acknowledgement of tax exempt
status.
Members of the Business Entity are jointly and severally liable for any
indebtedness or other obligations to EMERATEL.
3.0
OPERATING AN EMERATEL™ DISTRIBUTORSHIP
3.1 Compliance to the EMERATEL™ Compensation Plan
a. IRs must adhere to the terms of the EMERATEL Compensation Plan as set forth
in official EMERATEL website or literature.
b. IRs shall not offer the EMERATEL IR opportunity through, or in combination
with, any other system, program or method of marketing other than that
specifically set forth in official EMERATEL literature or website.
c. IRs shall not encourage or require other current or prospective IRs or
customers to participate in EMERATEL in any manner other than it is set forth
in official EMERATEL literature or website.
d. IRs shall not encourage or require other current or prospective IRs or
customers to complete any agreement or contract other than official EMERATEL
agreements and contracts in order to become an EMERATEL IR.
e. IRs shall not encourage or require other current or prospective IRs or
customers to make any purchase from, or payment to, any individual or other
entity to participate in the EMERATEL Compensation Plan other than those
purchases or payments identified as recommended or required in official EMERATEL
literature or website.
f. IRs shall not provide any form of financial incentive (such as sales
contests, gift with purchase, etc.) to existing or prospective IRs or customers
in their downline organizations.
3.2 Legal Adherences
a. All active IRs in good standing have the right to sponsor and enroll others
into EMERATEL as part of their downline organization. If two IRs claim to be
the Sponsor of the same new IR or Customer, the Company shall regard the first
application received by the Company as the valid upline. The payment of any
financial compensation of incentive to a prospective customer or IR to induce
such individual to enroll under an IR is prohibited. This includes, without
limitation, the payment of any application fees or charges on behalf of a
customer or prospective IR.
b. Because of critical tax and legal considerations, EMERATEL must limit the
resale of EMERATEL products and services to prospective customers and IRs
located within the US and Canada. Moreover, allowing a few IRs to conduct
business in markets not yet opened by EMERATEL would violate the concept of
affording every IR the equal opportunity to expand internationally.
Accordingly, IRs are authorized to sell EMERATEL products and services, and
enroll customers or IRs only in the US and Canada. EMERATEL products or sales
aids cannot be shipped into or sold in any other country. IRs may sell, give,
transfer, or distribute EMERATEL products or sales aids only in countries that EMERATEL
has opened and declared to be authorized countries. In addition, no IR may, in
any unauthorized country: (a) conduct sales, enrollment, or training meetings;
(b) enroll or attempt to enroll potential customers or IRs; or (c) conduct any
other activity for the purpose of selling EMERATEL products, establishing a
marketing organization, or promoting the EMERATEL opportunity
c. IRs shall comply with all Federal, State or Province, and local laws and
regulations in the conduct of their business. Many states, local municipalities
and countries have laws regulating home-based businesses. IR's are responsible
for abiding by any of these local laws.
4.0 RESPONSIBILITIES OF AN INDEPENDENT REPRESENTATIVE
4.1 Continuing Development Obligations
Ongoing Training
Any IR who sponsors another IR into EMERATEL must provide assistance and
training to ensure that their downline IRs are properly operating their EMERATEL
businesses. IRs must maintain contact and communication with the IRs in their
downline organizations. Examples of such contact and communication may include,
but are not limited to: written correspondence, personal meetings, telephone
contact, voicemail, electronic mail, and the accompaniment of downline IRs to EMERATEL
meetings, training sessions, and other functions. Upline IRs are also
responsible to motivate and train new IRs in EMERATEL product knowledge,
effective sales techniques, the EMERATEL Compensation Plan, and compliance with
Company Policies and Procedures. Communication with and training of downline
IRs must not, however, violate EMERATEL's Privacy Policy as outlined on the
Company’s website, www.EMERATEL.com.
4.2 Non- Disparagement
EMERATEL wants to provide its IRs with the best products, compensation plan,
and service in the industry. Accordingly, we value your constructive criticisms
and comments. All such comments should be submitted in writing to the Rep
Services Department at the following address:
Rep Services Department
1673 Richmond St, Suite 314
London, Ontario,
Canada
N6G 2N3
While EMERATEL welcomes constructive input, negative comments and remarks made
in the field by IRs about the Company, its products, its service or
compensation plan serve no purpose other than to sour the enthusiasm of other EMERATEL
IRs. For this reason, and to set the proper example for their downline, IRs
must not disparage, demean, or make negative remarks about EMERATEL, other EMERATEL
IRs, EMERATEL’s products, EMERATEL's services, the EMERATEL Compensation Plan, or
EMERATEL’s directors, officers, associates or employees.
4.3 Providing Current Documentation to Applicants
IRs must provide the most current version of the Policies and Procedures and
the EMERATEL Compensation Plan to individuals whom they are sponsoring to
become IRs before the applicant signs an IR Agreement. IRs will be kept
up-to-date with changes, additions or amendments in these Policies and
Procedures via postings on the EMERATEL Website as well as other forms of hard
copy and/or electronic communications from EMERATEL.
4.4 Reporting Policy Violations
IRs observing a policy violation by another IR should submit a written report
of the violation directly to the attention of the EMERATEL Compliance
Department at the following address:
EMERATEL Compliance Department
1673 Richmond St, Suite 314
London, Ontario
Canada
N6G 2N3
Details of the incidents such as dates, number of occurrences, persons
involved, and any supporting documentation should be included in the report.
The report must be signed by the submitting IR, and include his or her EMERATEL
Identification Number, address and telephone number.
5.0 ADVERTISING AND MARKETING
5.1 General
EMERATEL has carefully designed its products, product images, Compensation Plan
and promotional materials to ensure that each aspect of EMERATEL is fair and
truthful and complies with the legal requirements of federal and state laws.
Therefore, IRs shall safeguard and promote the good reputation of EMERATEL, its
products and services, through marketing and promotion that is consistent with
the public's interest and avoids discourteous, deceptive, misleading, unethical
or immoral conduct or practices.
IRs may only use the promotional and support materials produced by EMERATEL
unless other marketing materials have been approved by EMERATEL in writing
before publication or use. This includes, but is not limited to: emails to
potential customers, direct mail pieces, brochures, advertisements, door
hangers, flyers, scripts, pop-up advertisements, websites, broadcast
media-television, radio, internet broadcasts, point-of-sale materials, or any
materials of any nature that bear EMERATEL’s trademarked name.
IRs must submit any proposed IR-produced advertising or promotional materials
along with an IR Advertising & Promotion Approval Request Form to the
Company for approval. Unless the IR receives specific written approval to use
the material, the request shall be deemed denied. The Request Form can be
downloaded from the EMERATEL Corporate website at www.EMERATEL.com. The IR
Advertising & Promotion Approval Request Form must be sent with the
proposed advertising content and may be delivered by e-mail, fax, or post:
EMERATEL Compliance
1673 Richmond St, Suite 314
London, Ontario Canada N6G 2N3
Fax: (866) 533-7484
email: compliance@EMERATEL.com
Submitted IR marketing materials must list their Representative name and
indicate that it is an “EMERATEL Independent Representative” advertisement.
Contact information listed on the marketing piece should clearly be identified
as the IR’s phone number and not be portrayed as a Corporate EMERATEL number or
that of one of EMERATEL's third party providers, if any.
5.2 IR Websites
Our website policy allows IRs to utilize the internet as a business tool while
ensuring that the IR's website does not (a) violate any trademark laws, (b)
misuse any Proprietary Mark, or (c) violate any multi-level marketing laws, such
as income testimonials/claims and/or claims that include comparative pricing
analysis or comparative income analysis. This policy does not restrict IRs from
having their own personally-created websites that highlight themselves or
summarize their business endeavors; however, such websites may not market EMERATEL
in ANY manner other than providing a link to the IRs “EMERATEL IR Personal
Website.”
5.3 Domain Names and Email Addresses
IRs may not use or attempt to register any of EMERATEL’s copyrights, trade
names, trademarks, service names, service marks, product names, the Company’s
name, or any derivative thereof (“Proprietary Marks”) for any Internet domain
name without EMERATEL’s prior written permission. In addition, the
incorporation of any of EMERATEL'S Proprietary Marks, or the Company’s name
into any Internet domain name is also prohibited.
IRs may not incorporate "EMERATEL" into any domain name in any manner
whatsoever (e.g. myEMERATELbusiness.com, etc.).
Additionally, such website names can potentially create trademark liability for
both you the IR and EMERATEL. Any IR who has a questionable domain name
registered should immediately contact EMERATEL and either abandon or transfer
such domain name to EMERATEL.
5.4 Using a Search Engine to Register IR Personal Websites
If approved in advance by EMERATEL IR’s may register their IR Personal Website
with Internet search engines using the search names ”EMERATELIR.“ These
searches must link to the EMERATEL IR’s Personal Website only.
EMERATEL IRs may not use any other term that violates any other proprietary
right held by another to register their IR Personal Website in a search engine.
5.5 Banner Advertising and Links
From time to time, EMERATEL creates online advertising tools available for purchase
to IRs. These tools may be used by EMERATEL IRs to promote EMERATEL products
and services. IRs placing banner ads on other websites that link to the IR’s EMERATEL
Personal Website shall display their name and designation as an EMERATEL
Independent Representative clearly on the banner ad.
5.6 Online and Electronic Subscription-Based Recruiting Tools
IR's primary sales focus shall be on the sale of EMERATEL products and
services. Accordingly, IRs shan’t offer to sell or distribute for a fee
electronic, online, or Internet-based IR recruiting websites, flash
presentations, lead generators, etc.
5.7 Proprietary Marks
No person or entity, including IRs, may use EMERATEL's Proprietary Marks
without the Company’s prior written permission. IRs shall not photocopy or
otherwise reproduce EMERATEL’s promotional material. IRs may not produce for
sale or distribution any recorded Company events or speeches without written
permission from EMERATEL, nor may IRs reproduce for sale or for personal use
any recording of Company-produced audio or video tape presentations. The name
of EMERATEL and other names as may be adopted by EMERATEL are proprietary to EMERATEL.
As such, these marks are of great value to EMERATEL and are supplied to IRs for
their use only in an expressly authorized manner. Use of the EMERATEL name on
any item not produced by the Company is prohibited except as follows: IR Name
with a designation of “EMERATEL Independent Representative.”
5.8 Telephone Usages
a. Telephone Directories
IRs shall not place telephone directory display ads using EMERATEL’s name or
logo. IRs may list themselves as an “Independent EMERATEL Representative” in
the white or yellow pages under their own name. However, IRs cannot list their
phone numbers in any online or printed telephone directory in a manner that
would lead the consumer into believing that they are calling the corporate offices
of EMERATEL.
b. Answering the Telephone
IRs may not answer the telephone by saying “EMERATEL”, “EMERATEL Incorporated,”
or any other manner that would lead a caller to believe that he or she has
reached corporate offices of EMERATEL or one of EMERATEL’s third party
providers, if any.
5.9 Deceptive Recruiting Practices
IRs shall not market the EMERATEL business in a manner that would give a
prospective IR the impression that they are entering into an employment
arrangement or that they will make a significant amount of money with little to
no effort.
The following provides guidance with regard to recruitment advertising by IRs.
(PLEASE NOTE: ALL marketing and advertisements must be first approved through EMERATEL’s
Corporate Marketing Department at marketing@EMERATEL.com with the use of
an Advertising and Promotional Approval Request Form).
Recruitment advertisements may appear ONLY in the DISTRIBUTORSHIP/FRANCHISE
column of a newspaper or on a website where other distributorships are also
posted or segregated. The advertisement must make it clear that the
position is not for employment, but that the advertiser is seeking Independent
Representatives for a network marketing opportunity. The words “business opportunity”
may not appear for any reason in any promotional material. “Business
opportunity” as defined by federal and state law is not being offered to any
IR.
Additionally, since income depends upon the individual IR’s commitment and
success as an EMERATEL IR, any income representations, including
representations that it is “easy” to earn money with little or no effort, are
strictly prohibited from any advertisements as they are considered “deceptive
advertising” by both certain states agencies and the Federal Trade Commission.
Misrepresentation to a prospective IR that they are eligible to earn
commissions from customer gathering prior to the effective date of their
enrollment is a Deceptive Recruiting Practice.
Engaging in luring prospects into the EMERATEL business with expressed or
implied employment offers or representations of earnings will be in violation
of EMERATEL Policies and Procedures. IRs who engages in these will be
terminated and shall receive no further commissions or payments of any kind
from and after the date of termination.
EMERATEL IRs are prohibited from advertising/marketing in the following
mediums:
a. Help wanted sections of newspapers, including the “sales” and “marketing”
employment opportunity sections
b. Internet sites devoted to employment opportunities
c. Job fairs where only “employers” are represented
d. Newspapers strictly devoted to employment offerings
5.10 Media and Media Inquiries
IRs must not attempt to respond to media inquiries regarding EMERATEL, its officers,
employees, IRs, products or services, or their Independent EMERATEL business.
All inquiries by the media must be immediately referred to EMERATEL’s Marketing
Department. This policy is designed to maintain an appropriate public image as
well as assure that accurate and consistent information is provided to the
public.
5.11 Trade Shows, Expositions and Other Sales Forums
IRs may display and/or sell EMERATEL products at trade shows and professional
expositions. However, IRs must submit a request to the EMERATEL Marketing
Department in writing for booth signage approval before submitting a deposit to
the event promoter.
5.12 Translation of EMERATEL™ Materials
EMERATEL appreciates the diversity of our IR base and is aware of the need for
various language translations of our materials. IRs who wish to reproduce EMERATEL
marketing literature in a foreign language for purposes of legitimately
pursuing objectives of the IR position must follow the guidelines established
in Section 5 and, specifically, Paragraph 5.1, including the requirement to
submit an IR Advertising & Promotion Approval Request Form. EMERATEL
reserves the right to withhold approval at the Company’s sole discretion. A
lack of response from EMERATEL is deemed a denied request. In the event that EMERATEL
approves the material for release, it then becomes the sole and exclusive
property of EMERATEL.
6.0 PROHIBITED ADVERTISING PRACTICES AND IR ACTIVITIES
EMERATEL Independent Representatives are prohibited from engaging in any
illegal, fraudulent, misleading, or other deceptive or disruptive practices,
including but not limited to the following:
6.1 Cold Marketing
“Cold marketing” is defined as any promotional activity that is geared towards
random individuals who have no personal, business, social or acquaintance
relationship(s) with the promoter. EMERATEL is a Network Marketing company that
is focused solely on relationship marketing, or “warm marketing” techniques.
Since cold marketing is either highly regulated or prohibited by State and
Federal law, EMERATEL discourages IRs from engaging in any “cold marketing”
techniques to acquire customers or recruit IRs.
An EMERATEL IR using cold marketing techniques is responsible for complying
with any applicable laws, limitations or regulations that govern such
techniques. Any promotional material materials used in conjunction with a cold
marketing effort must be EMERATEL produced materials or materials submitted to EMERATEL’s
Marketing Department for written pre-approval.
a. Unsolicited E-mails or “Spamming”
EMERATEL prohibits the use of “spamming” defined as the use of “unsolicited”
e-mail messages or broadcasts using or marketing the EMERATEL name. In the
event that EMERATEL, at the Company’s sole discretion, suspects an IR of
‘spamming’ and/or of sending unsolicited e-mail messages using EMERATEL’s name
anywhere in the body, headers, or content of the message, including but not
limited to embedding the EMERATEL name in html links, EMERATEL will begin an
investigation. Regardless of the result of that investigation, the suspected IR
will pay $100 per hour for all hours of EMERATEL time involved in the
investigation, plus all attorney and legal fees, fines and costs imposed by any
governmental regulatory authority, and all damages to EMERATEL’s reputation as
incurred as a result of any violation.
b. Unsolicited Faxes “Blast Faxing”
Federal regulations and the laws of several states prohibit the use of “unsolicited
faxes” whether sent via computer or fax machine. IRs may not use or transmit
unsolicited faxes.
The term “unsolicited fax(s)” refers to the transmission via telephone or
computer facsimile of any material to any person or entity without that
person's or entity’s prior express invitation or permission or, to any person
or entity with whom the IR does not have an established business or
personal relationship.
The term “established business or personal relationship” refers to a prior or
existing relationship formed by a voluntary two way communication between an IR
and a person or entity, on the basis of: (a) an inquiry, application, purchase
or transaction by the person regarding products offered by such IR; or (b) a
personal or familial relationship that has not been previously terminated by
either party.
All fax communications must contain the IR's name, ID number, address,
telephone number, fax number, email address and a means for the recipient to
“opt-out” of any further faxes. “Opt-out” instructions similar to the following
must be used: “If you do not wish to receive future offers from us and to be
removed from our list, simply call us at 1-800-xxx-xxxx or send us a fax with
your name and fax number to (xxx) xxx-xxxx.” IRs must submit proposed fax
communications to the Company for approval as provided in Section 5.1.
c. Telemarketing Practices
EMERATEL prohibits the use of telemarketing by EMERATEL IRs. EMERATEL defines
“telemarketing” and “cold calling” as the act of calling any individual with
whom an EMERATEL IR has not had a prior personal or business relationship
within the last eighteen months. Additionally, “speed dial” (random or auto
dialing) including the use of any automated telephone solicitation equipment or
"boiler-room telemarketing operations in connection with the marketing or
promotion of EMERATEL, its products or the opportunity, is strictly prohibited.
The federal governments and many states currently have “Do Not Call Registries”
(DNCR) which allow consumers to add their name to such registries in order to
alert telemarketers not to call. The Federal Government will apply fines to
violators in excess of $10,000. These registries apply to all telemarketers.
EMERATEL prohibits EMERATEL IR’s use of lists provided by any lead generation
program to conduct cold calling.
EMERATEL has the right to terminate any and all IRs violating this clause. EMERATEL
has the right to fine violating IRs in excess of $10,000 per incident. Any and
all fines, costs, damages and attorney fees incurred by EMERATEL due to
violation of this covenant shall be borne by IR.
6.2 Altering Documents
All EMERATEL forms (online and hard copy) must be completed by the prospective
IR or customer, respectively. IRs shall not complete such forms on behalf of
their prospective IRs or customers. EMERATEL has a zero tolerance policy for
IRs who forge signatures or alter documents such as IR Application and
Agreements, LOAs, electronic LOAs, Credit Card Authorization forms, Monitoring
Service Contracts, etc. (Please note: Even when a friend or relative asks an EMERATEL
IR to sign a document on their behalf, the document may not be legally
binding).
6.3 Re-Packaging and Re-Labeling
EMERATEL products must be sold in their original containers only. IRs may not
re-package, re-label, refill or alter in any way the labels on any EMERATEL
products, information, materials or programs.
6.4 “Bonus Buying”
An IR shall not provide a false or invalid Social Security number, Social
Insurance Number or Federal Employer Identification Number on an IR Application
and Agreement. ”Bonus Buying” also includes:
a. The enrollment of individuals or entities without the knowledge of and/or
execution of an Independent Representative Application and Agreement by such
individuals or entities;
b. The fraudulent enrollment of an individual or entity as an IR or Customer;
c. The enrollment of non-existent individuals or entities as IRs or Customers
(“phantoms”);
d. The use of a credit card or any other form of payment by or on behalf of an
IR or Customer when the IR or Customer is not the account holder of such credit
card;
e. Purchasing EMERATEL merchandise or services on behalf of another IR or
Customer, or under another IRs or Customer’s I.D. number, to qualify for
commissions or bonuses.
6.5 “Slamming”
“Slamming” is defined as the switching or transfer of a third party’s telephone
carrier service to another telecom carrier without authorization. Slamming is
illegal and prohibited. If an IR “slams” any third party, he or she will be
terminated.
In addition to the sanctions set forth by these Policies and Procedures, the IR
will be liable to EMERATEL for any fines EMERATEL incurs as a result of a
complaint including fees imposed by any governmental agencies, any fee or
charges associated with returning the third party to its original carrier,
reimbursement of the outstanding charges of the slammed third party, and any
attorney’s fees incurred by EMERATEL.
6.6 Improper Completions of LOA’s
Improper completion of an LOA or an E-LOA or pretending to be someone else on
the telephone may result (in EMERATEL's sole discretion) in the same sanctions
and disciplinary actions as an intentional slam, as outlined in section 6.6 of
these Policies and Procedures.
IRs should verify information required on the LOA against each new customer’s
actual telephone bill to ensure that the customer’s name and phone number match
and the person signing the LOA and ensure they have the authority to switch
telephone service providers. The person listed on the existing phone bill is
the only person with the authority to complete and sign the LOA.
6.7 “Cross-Sponsoring”
“Cross-sponsoring” is the enrollment of an individual or entity that already is
or has been within the preceding twelve (12) calendar months, a Customer or IR
with EMERATEL as a member of a different line of sponsorship. The use of
another’s name, trade names, DBAs, assumed names, corporations, partnerships,
trusts, federal ID numbers, or fictitious ID numbers to circumvent this policy
is prohibited. IRs shall not demean, discredit or defame other EMERATEL IRs in
an attempt to entice another IR to become part of their personal marketing
organization.
6.8 Unauthorized Claims and Actions
a. Indemnification
An IR is responsible for all of his or her verbal and written statements made
regarding EMERATEL products, services, and the Compensation Plan, which are not
expressly contained in official EMERATEL materials. IRs shall indemnify EMERATEL
and EMERATEL’s directors, officers, employees, shareholders, members and
agents, and hold them harmless from any and all liability including judgments,
civil penalties, refunds, attorney fees, court costs, or lost business incurred
by EMERATEL as a result of the IRs unauthorized actions or representations.
This provision shall survive the termination of the IR Agreement.
b. Income Claims
Government agencies have created laws and regulations that regulate or prohibit
certain types of income claims and testimonials made by persons engaged in
network marketing unless appropriate disclosures are also made
contemporaneously with the income claim or earnings representation. While IRs
may believe it beneficial to provide copies of checks or to disclose the
earnings of themselves or others, such approaches have legal consequences that
may negatively impact EMERATEL as well as the IR. Income claims, income or
lifestyle testimonials and income projections by EMERATEL Independent
Representatives are strictly prohibited.
c. Business Presentation and the Compensation Plan
EMERATEL has carefully constructed legal disclaimers on all corporate produced
marketing materials that use income charts or illustrations as a tool to
explain EMERATEL’s Compensation Plan. Since IRs do not have the data necessary
to comply with the disclosure and disclaimer requirements when making income
claims, an IR may only use EMERATEL corporate produced Business Presentations,
Marketing Materials and other Business Tools.
d. Governmental Approval or Endorsement
IRs shall not represent or imply that EMERATEL or its Compensation Plan have
been "approved," "endorsed" or otherwise sanctioned by any
government agency.
6.9 Conflicts of Interest
a. Cross Recruiting
EMERATEL IRs are free to participate in other multi-level or network marketing
business ventures or marketing opportunities (collectively “network marketing”)
so long as the business does not involve products or services that directly
compete with products or services offered by EMERATEL. However, during the term
of the IR Agreement and for a period of six months thereafter, IRs may not
recruit other EMERATEL IRs or Customers for any other network marketing
business. The term “recruit” means actual or attempted solicitation,
enrollment, encouragement, or effort to influence in any way, either directly
or through a third party, another EMERATEL IR or Customer to enroll or
participate in another multi-level marketing, network marketing or direct sales
opportunity. This constitutes recruiting even if the IR’s actions are in
response to an inquiry made by another IR or Customer.
b. Sales of Competing Products and Services
EMERATEL IRs must not sell, or attempt to sell, any competing products or
services to EMERATEL Customers or IRs. Any product or service in the same
generic category as a EMERATEL product or service is deemed to be a competing
product regardless of differences in cost, quality, appearance, scope or range
of service, or component parts. Violations may result in termination of IR
status.
c. Co- mingling of Sales of Unauthorized Products and Services with EMERATEL™
Products and Services
IRs may not display EMERATEL products or services with any other products or
services in a way that might confuse or mislead a prospective customer or IR
into believing there is a relationship between the EMERATEL and non-EMERATEL
products or services. IRs may not offer the EMERATEL opportunity, products or
services to prospective or existing Customers or IRs in conjunction with any
non-EMERATEL program, opportunity, products or services at any EMERATEL-related
meeting, seminar or convention, or immediately following such event.
d. EMERATEL Third-Party Service Providers
If /when an EMERATEL IR becomes an agent or dealer of an EMERATEL third-party
service provider without EMERATEL's express written approval, the IR is subject
to immediate termination of IR status by EMERATEL. Following termination and
for a period of six (6) months thereafter, a former IR may not recruit or
solicit any Customer or IR of EMERATEL, or influence or induce any Customer or
IR to alter their business relationship with EMERATEL, or make any statements
or comments of a slanderous or disparaging nature to third parties regarding EMERATEL
or its officers, directors, personnel, products or services. Any reports
generated during their EMERATEL IR status, including but not limited to
Customer Reports, are confidential and constitute proprietary information and
business trade secrets belonging to EMERATEL. Any use or disclosure of any such
confidential information by a former IR to a third party and/or competitor of EMERATEL,
would place EMERATEL at a competitive disadvantage and would do damage,
monetary or otherwise, to EMERATEL and constitute improper appropriation and/or
use of such information and trade secrets of EMERATEL. Such actions by a former
IR will cause irreparable damage and EMERATEL shall be entitled, in addition to
any other right or remedy, to a temporary, preliminary and permanent injunction,
without the necessity of proving the inadequacy of monetary damages or the
posting of any bond or security, enjoining or restraining the former IR from
any such violation. Violations will be considered on a case-by-case basis.
e. Other Business Relationships
An IR shall not use their EMERATEL relationship with either their downline or
other IR’s within EMERATEL to market other goods, services or sales aids that
have not been approved in writing by the Company. This includes solicitations
for investments; Violations may result in terminations of IR status.
7.0 INDEPENDENT REPRESENTATIVE EARNINGS
7.1 Qualifications for Eligibility
The EMERATEL Compensation Plan is based upon the sale of products and services
to end customers. IRs must fulfill personal and downline organization sales
requirements set forth in the EMERATEL Compensation Plan to be eligible for bonuses,
commissions and advancement to higher levels of achievement. An IR must be
active and in compliance with the EMERATEL IR Agreement and Compensation Plan
to qualify for bonuses and commissions and promotional incentives.
7.2 Special Promotions and Incentives
EMERATEL runs special limited-time promotions and incentives that are designed
to complement EMERATEL’s existing Compensation Plan. Such promotions and
incentives are incorporated into or replace certain portions of the
Compensation Plan for a declared timeframe. To participate in EMERATEL
promotions and incentives the EMERATEL IR must be active and compliance with
the IR Agreement and Compensation Plan. Should an EMERATEL IR violate the
Policies and Procedures, he will not be eligible to participate in promotion
and associated earnings would be forfeited.
7.3 Payments to IRs
EMERATEL pays commissions weekly which is described in more detail in EMERATEL’s
Compensation Plan. EMERATEL will notify its Reps if it changes its payment
schedule. As long as an IR abides by these Policies and Procedures and remains
an active EMERATEL IR, they will be compensated for all customers that are
personally acquired or are acquired through their downline for as long as they
are EMERATEL customers. The compensation for these customers is outlined in the
EMERATEL marketing plan which I understand may, from time to time, undergo
enhancements.
The minimum amount for which EMERATEL will issue a check is twenty dollars ($20.00).
The Company will accrue the commissions and bonuses until they total the
minimum requirement. Earnings statements are not mailed with checks but may be
obtained through EMERATEL’s IR back office or upon request (see “Reports”).
There are two methods of earnings payments an IR can select. The default method
of payment is EMERATEL’s electronic ACH-Direct Deposit program (i.e. direct
payment into the IR’s bank account). In the event the IR requires a printed
check delivered via post, a four dollar ($4.00) handling fee is deducted from
the amount due the IR as an EMERATEL handling fee. For the default payment
method, the IR must submit the appropriate ACH-Direct Deposit application and
agree to the separate terms and conditions for this program. Information on EMERATEL’s
electronic payment option is available in EMERATEL’s IR back office.
7.4 Adjustment to IR Payments
7.4.1 Processing Fees and Other Deductions
EMERATEL reserves the right to deduct IR charges from bonus and commission
payments including, but not limited to: payment set-up fees, reissued check
fees, paper reporting and statement fees, opted-in renewal fees and any other
miscellaneous EMERATEL purchases and postage billed to account.
7.4.2 Clawback Bonuses
Clawback bonuses and commission paid to IRs shall be returned to EMERATEL in
the following instances:
a. When a product is returned for a refund;
b. When a service contract with a specific term is cancelled early;
c. When a non-term service contract is cancelled within ninety (90) days of its
activation date;
d. When a Downline IR cancels his IR Agreement. EMERATEL shall deduct the
clawbacks from the IR's earnings until recovered.
7.4.2 Unclaimed Income and Credits
IRs must deposit or cash commission and bonus checks within ninety (90) days of
the date of the check. A check that remains un-cashed after 90 days will be
void. The IR may have the check reissued for up to nine (9) months at a cost of
fifteen dollars ($15.00) that shall be deducted from the balance owed to the
IR.
7.5 Reports
7.5.1 Generating Reports
The term “report” includes, but is not limited to Earnings Reports, Downline
Reports and Customer Reports. These reports are all available to IRs on demand
through their personal EMERATEL back office. IRs’ access to the back office is
password protected. The information contained in reports is confidential and
constitute proprietary information and business trade secrets belonging to EMERATEL.
Reports are generated for IRs in strictest confidence and are made available to
IRs for the sole purpose of assisting IRs in working with their respective
downline organizations in the development of their EMERATEL business. IRs
should use such reports to assist, motivate, and train their downline IRs. Upon
demand by the Company, the IR will return the original and all copies of
reports to the Company.
An IR is prohibited from:
a. Disclosing any information contained in any Report to a third party;
b. Disclosing the password or other access code to his or her private back
office account;
c. Using the information to compete with EMERATEL or for any purpose other than
promoting his or her EMERATEL business;
d. Recruiting or soliciting any IR or Customer of EMERATEL listed on any
report, or in any manner attempting to influence or induce any IR to alter
their business relationship with EMERATEL.
7.5.2 Request for Reports or Records
EMERATEL provides its IRs secure access to his or her back office so that IRs
can gather information and generate reports on demand. It is the IRs
responsibility to train and utilize this tool for their EMERATEL business.
Should an IR request paper or faxed copies of reports or other records, a fee
of one dollar ($1.00) per page per copy (with a minimum fee of five dollars
($5.00) per request) shall be assessed. EMERATEL shall deduct such fees from
the IR's account. A request for reports or records must be submitted in writing
to EMERATEL Rep Support via email, fax or mail.
7.5.3 Reports Disclaimer
All information provided by EMERATEL in an IR's back office is believed to be
accurate and reliable. Nevertheless, due to many factors beyond EMERATEL's
control, the information is not guaranteed by EMERATEL or any persons creating
or transmitting the information. ALL INFORMATION CONTAINED IN THE REPORTS IS
PROVIDED "AS IS" WITHOUT WARRANTIES, EXPRESS OR IMPLIED, OR
REPRESENTATIONS OF ANY KIND WHATSOEVER. IN PARTICULAR BUT WITHOUT LIMITATION,
THERE SHALL BE NO IMPLIED OR EXPRESSED WARRANTIES OF MERCHANTABILITY, FITNESS
FOR A PARTICULAR PURPOSE, OR NON-INFRINGEMENT.TO THE FULLEST EXTENT PERMISSIBLE
UNDER APPLICABLE LAW, EMERATEL AND/OR OTHER PERSONS CREATING OR TRANSMITTING
THE INFORMATION WILL IN NO EVENT BE LIABLE TO ANY INDEPENDENT REPRESENTATIVE OR
ANYONE ELSE FOR ANY DIRECT, INDIRECT, CONSEQUENTIAL, INCIDENTAL, SPECIAL OR
PUNITIVE DAMAGES THAT ARISE OUT OF THE USE OF OR ACCESS TO REPORT INFORMATION
(INCLUDING BUT NOT LIMITED TO LOST PROFITS, BONUSES, OR COMMISSIONS, LOSS OF
OPPORTUNITY, AND DAMAGES THAT MAY RESULT FROM INACCURACY, INCOMPLETENESS,
INCONVENIENCE, DELAY, OR LOSS OF THE USE OF THE INFORMATION), EVEN IF EMERATEL
OR OTHER PERSONS CREATING OR TRANSMITTING THE INFORMATION SHALL HAVE BEEN
ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. TO THE FULLEST EXTENT PERMITTED BY
LAW, EMERATEL OR OTHER PERSONS CREATING OR TRANSMITTING THE INFORMATION SHALL
HAVE NO RESPONSIBILITY OR LIABILITY TO YOU OR ANYONE ELSE UNDER ANY TORT,
CONTRACT, NEGLIGENCE, STRICT LIABILITY, PRODUCTS LIABILITY OR OTHER THEORY WITH
RESPECT TO ANY SUBJECT MATTER OF THE IR AGREEMENT OR TERMS AND CONDITIONS
RELATED THERETO.
7.6 Payment Errors
If an IR has questions about or believes errors have been made regarding
commissions, bonuses, reports, or charges, the IR must notify EMERATEL Rep
Support in writing (via email, fax or mail) within sixty (60) days of the date
of the purported error or incident in question. EMERATEL is not responsible for
any errors, omissions, or problems not reported to the Company 60 days.
8.0 PAYMENT AND SHIPPING
8.1 Deposits
No monies should be paid to or accepted by an IR for a sale to a personal
customer except at the time of product delivery. All payments shall be made to
the Company, not the IR. IRs should not accept monies from retail customers to
be held for deposit in anticipation of future deliveries or accept monies for
the Advance Payment Option.
8.2 Insufficient Funds
It is the responsibility of each IR to ensure that there are sufficient funds
or credit available in their account to cover their purchases. EMERATEL will
not contact IRs in regard to orders canceled due to insufficient funds or
credit.
8.3 Returned Checks
All checks returned by an IR's bank for non-sufficient funds (NSF) will be
re-submitted for payment. A twenty-five dollar ($25.00) returned check fee will
be charged to the IR's account. If a returned check is received from a customer
or an IR, all future orders must be paid by Credit Card, money order or
cashier’s check. Any outstanding balance owed to EMERATEL by an IR for NSF
checks and returned check fees will be withheld from subsequent bonus and
commission checks.
9.0 RETURN OF INVENTORY
9.0 Inventory Returns
An IR may only return products and sales aids purchased through EMERATEL that
are in unused or resalable condition for up to twelve (12) months from the date
of purchase. The IR is responsible for all costs associated with the return of
the merchandise to EMERATEL. The IR will be reimbursed 90% of the net cost of
the original purchase price. 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 IR any commissions, bonuses, rebates or
other incentives received by the IR which were associated with the merchandise
that is returned.
10.0 CHANGES TO AN EMERATEL BUSINESS
10.1 General
Each IR must immediately notify EMERATEL of all changes to the information
contained on his or her IR Application and Agreement.
10.2 Changes to IR Contact Information
IRs may modify their existing personal information on file with EMERATEL by
making changes electronically through their EMERATEL back office. To ensure
timely delivery of products, support materials, and commission checks, it is
important that EMERATEL’s records are current. IRs planning to move should
notify EMERATEL’s Corporate Offices of their new address and telephone numbers
either electronically through the EMERATEL IR's back office or by faxing or
emailing the Rep Support Department. To guarantee proper delivery, two (2)
weeks advance notice of changes must be provided.
10.3 Adding Co-Applicants to an Organization
If an IR wishes to add a co-applicant other than his or her spouse, to his or
her existing EMERATEL business, the IR and co-applicant must first form a
Business Entity (partnership, corporation, or limited liability company) and
submit a Request for Approval of Transfer of IR Business form. The parties must
also submit a completed Business Entity IR Application and Agreement and
Supplemental Business Entity Application under the name of the Business Entity
with its tax identification number, signed by the person having authority to
bind the business and the supporting entity documents as provided in Section
2.6. If the co-applicant is the IR’s spouse, the parties need only submit a
written request and a new IR Application and Agreement including the spouse.
The original applicant must remain a party to the business entity and the
original IR Application and Agreement. If the original IR wants to terminate
their relationship with the Company, they must sell the business in accordance
with Section 10.7. If this process is not followed, the business shall be
canceled upon the withdrawal of the original IR. All bonus and commission
checks will be sent to the address of record of the original IR. Please note
that the modifications permitted within the scope of this paragraph do not include
a change of sponsorship.
10.4 Change of Sponsor
To protect the integrity of our Marketing Organizations and safeguard the hard
work of our IRs, EMERATEL prohibits changes in sponsorship. Maintaining the
integrity of sponsorship is critical for the success of every IR and marketing
organization. Accordingly, the transfer of an EMERATEL business from one
sponsor to another is not permitted nor is transfer of a customer from one
sponsor to another. IRs shall not participate in the purchase, sale or transfer
of any customer between IRs. EMERATEL may, at the Company’s sole discretion,
consider changes of sponsorship in rare, conditional cases where a change of
sponsorship is warranted. EMERATEL has the right to charge an administrative
fee that must be paid as a condition to approval transfer.
10.5 Cancellation and Re-application
An IR may legitimately change organizations by voluntarily canceling his or her
EMERATEL business and remaining inactive for six (6) calendar months. Following
the six month period of inactivity, the former IR may reapply under a new
sponsor.
10.6 Roll-up ("Compression") of Downline Organization
In order to maintain integrity of sales and marketing processes, there will be
no ‘roll-ups’ or ‘compression’ on downline organizations at any time.
10.7 Sale, Transfer or Assignment of an EMERATEL Distributorship
The sale, transfer or assignment of an EMERATEL business is subject to certain
limitations. The following criteria must be met:
a. Protection of the existing line of sponsorship must always be maintained so
that the EMERATEL business continues to be operated in that line of
sponsorship. No changes in a line of sponsorship can result from the sale or
transfer of an EMERATEL business.
b. The buyer or transferee must become a qualified EMERATEL IR as part of the
Sale, Transfer or Assignment of the EMERATEL Distributorship.
c. The buyer or transferee must not have been a qualified active EMERATEL IR in
the preceding twelve months
d. Before the sale, transfer or assignment can be finalized and approved by EMERATEL,
all debt obligations of the selling IR to EMERATEL must be satisfied.
e. The selling IR must be in good standing with EMERATEL.
f. A Business Entity must provide to EMERATEL's satisfaction a corporate
resolution authorizing and approving the transaction by the officers,
directors, members or partners holding an ownership interest, legal or
equitable, in the Business Entity, through a Corporate Resolution authorizing
and approving the transaction.
Prior to selling an EMERATEL business, the selling IR must notify EMERATEL’s
Compliance Department of their intent to sell the EMERATEL business:
EMERATEL Compliance
1673 Richmond St, Suite 314
London, Ontario Canada N6G 2N3
Email:
compliance@EMERATEL.com
10.8 Succession
Upon the death or incapacitation of an IR, their business may be passed to
their heirs. Appropriate legal documentation must be provided to the Company to
ensure the transfer is a correct one. Accordingly, an IR should consult an
attorney to assist in the preparation of a will or other testamentary
instrument. Whenever an EMERATEL business is transferred by a will or other
testamentary process, the beneficiary acquires the right to collect all bonuses
and commissions of the deceased IRs marketing organization provided the
following qualifications are met.
The successor(s) must:
a. Execute an IR Agreement (no registration fee will be required);
b. Comply with terms and provisions of the IR Agreement; and
c. Meet all of the qualifications for the deceased IR's status.
Bonus and commission checks of an EMERATEL business transferred pursuant to
this section will be paid in a single check jointly to the devisees. The
devisees must provide EMERATEL with social security number and an address of
record to which all bonus and commission checks will be sent. If the interest
in the business bequeathed is corporation or other legal entity, and devisees
are not current owners, they must form a business entity and acquire a new
federal taxpayer Identification number. EMERATEL will issue all bonus and
commission checks and one IRS Form 1099 to the business entity.
10.9 Transfer Upon the Death or Incapacitation of an IR
To effect transfer of an EMERATEL business because of death or incapacitation,
the successor must provide proper documentation from the Court handling the
estate or guardianship to EMERATEL and sign a new IR Agreement for the
successor.
10.10 Separation of an EMERATEL Distributorship
Should an EMERATEL IR Business Entity or a husband and wife co-applicant IR
business dissolve, arrangements must be made to assure the dissolution does not
adversely affect the interests and income of other EMERATEL businesses. If the
separating parties fail to provide for the best interests of other IRs and the
Company, EMERATEL may terminate the IR Agreement.
While the dissolution is pending, the parties must temporarily adopt one of the
following methods of operation:
a. All the parties may give written consent to one of the parties to operate
the business and authorize EMERATEL to deal directly with that person; or
b. The parties may continue to operate the EMERATEL business jointly as it was
previously carried out.
The downline organization of divorcing spouses or a dissolving business entity
shall not be divided. EMERATEL will not split earnings checks between divorcing
spouses or members of dissolving entities. EMERATEL will recognize only one
downline organization and will issue only one check per EMERATEL business.
Earnings checks shall always be issued to the same individual or entity. If the
parties to a divorce or business entity dissolution are unable to resolve a
dispute over the disposition of commissions and ownership of the business,
commissions and payments shall be made to the IR of record until a court order
or written agreement is received by EMERATEL. If a former spouse or former
entity affiliate has relinquished their rights in their EMERATEL business in
writing to the company, they are thereafter free to enroll under any sponsor of
their choosing. A business entity and/or its members must wait six (6) months
before applying whereas a former spouse may enroll immediately. The former
spouse or partner who does not receive the business shall have no rights to any
IRs in their former organization or to any former retail customers. They must
develop the new business in the same way as would any other new IR.
11.0 INDEPENDENT REPRESENTATIVE RENEWAL, INACTIVITY, AND CANCELLATION
11.1 Renewal of an EMERATEL™ Distributorship
The term of the IR Agreement lasts one year from the date of its acceptance by EMERATEL.
IRs must renew their IR Agreement each year by paying an annual renewal fee on
or before the anniversary date of their IR Agreement. If the renewal fee is not
paid within thirty (30) days after the expiration of the current term of the IR
Agreement, the IR Agreement will be terminated.
11.2 Termination of IR Agreement
a. Effect of Termination
Following the expiration or cancellation of an IR’s Agreement, the former IR
shall have no right, title, claim or interest to the marketing organization
which they operated, or any commission or bonus from the sales generated by the
organization. This includes the right to sell EMERATEL products and services
and the right to receive future commissions, bonuses, or other income resulting
from the sales and other activities of the IR’s former downline organization.
An IR whose IR Agreement is canceled shall receive commissions and bonuses only
for the last full pay period they were active prior to cancellation (less any
amounts withheld during an investigation preceding an involuntary termination).
In the event of termination, IRs waive all rights they have, including but not
limited to property rights, to their former downline organization and to any
bonuses, commissions or other remuneration derived from the sales and other
activities of his or her former downline organization. A former IR shall not
portray himself/herself to be an EMERATEL IR.
b. Involuntary Termination
An IR’s violation of any of the terms of the IR Agreement, including any
amendments that may be made by EMERATEL in its sole discretion, may result in
any of the sanctions listed in Section 12.1, including the involuntary
cancellation of his or her IR Agreement. Termination shall be effective on the
date on which written notice is mailed, to the IR’s last known address, or when
the IR receives actual notice of cancellation, whichever occurs first.
c. Voluntary Termination
An IR participating in the EMERATEL Compensation Plan may cancel at any time by
written notice to the Company at its principal business address. The written
notice must include the IR’s signature, printed name, address, and Rep ID
Number. The IR shall receive a full refund if cancellation is within ten (10)
days of initial sign up. Product returns may occur within the terms stated by
Section 9. The IR is responsible for all costs associated with the return of
any sales products to EMERATEL.
12.0 DISCIPLINARY PROCEEDINGS AND DISPUTE RESOLUTION
12.1 Disciplinary Sanctions
Violation of the IR Agreement, these Policies and Procedures, or any illegal,
fraudulent, deceptive or unethical business conduct by an IR may result, at EMERATEL's
discretion, in one or more of the following corrective measures:
a. Requirement that the IR take immediate corrective measures,
b. Issuance of a written warning or admonition,
c. Loss of rights to one or more bonus and commission checks,
d. Imposition of a fine, which may be paid by withholding bonus and commission
checks,
e. Withholding from an IR all or part of the IR’s bonuses and commissions
during the period that EMERATEL is investigating any conduct which allegedly
violates the IR Agreement. If an IR’s business is canceled for disciplinary
reasons; the IR will not be entitled to recover any commissions withheld during
the investigation period,
f. Suspension of the individual's IR Agreement for one or more pay periods,
g. Involuntary termination of the IR Agreement,
h. Institution of legal proceedings for monetary damages and/or equitable
relief,
i. Any other measure provided in the IR Agreement or which EMERATEL deems
practicable to equitably resolve injuries caused by the IR's policy violation
or contractual breach
12.2 Grievances and Complaints
If an IR has a grievance or complaint with another IR respecting their EMERATEL
businesses, the complaining IR should first report the problem to their sponsor
who should review the matter and try to resolve it with the other party's
upline sponsor. If the matter cannot be resolved, it must be reported in
writing to the Legal Compliance Department at the Company at compliance@EMERATEL.com.
The Legal Compliance Department will assist in the resolution of the grievance.
13.0 WAIVER
13.1 Waiver
Failure by EMERATEL to exercise any right or power under the IR Agreement or to
insist upon strict compliance by an IR with any obligation or provision of the
IR Agreement, or any custom or practice of the parties at variance with the
terms of the IR Agreement, shall not constitute a waiver of EMERATEL’s right to
demand compliance with the IR Agreement. Delay or omission by EMERATEL to
exercise any right arising from a breach shall not impair EMERATEL’s rights as
to any consequent breach. The existence of any claim or cause of action of an
IR against EMERATEL shall not constitute a defense to EMERATEL’s enforcement of
the terms or provisions of the IR Agreement.
