The Social Pool Network
POLICIES AND PROCEDURES
TABLE OF CONTENTS
The Social Pool Network (hereinafter referred to as “TSPN” or the “Company”) has developed the following guidelines to assist in the success of the Company and any of its Members regardless of title, distinction, or definition (hereinafter referred to as “Affiliates”). These Policies and Procedures will help provide the following benefits:
- Protect the rights of all Affiliates by providing a framework within which each Affiliate may work in an ethical, effective and secure manner.
- Provide an equal and level playing field of opportunity to all TSPN Affiliates.
- Define the contractual relationship between TSPN and its Affiliates.
- Inform Affiliates regarding compliance issues and regulatory requirements. TSPN requires that all Affiliates understand and abide by these Policies and Procedures as we work together in promoting the TSPN products and opportunity.
These Policies and Procedures, in their present form and as amended at the sole discretion of TSPN are incorporated into, and form an integral part of, all TSPN Affiliate Agreements. Throughout these Policies, when the term “Agreement” is used, it collectively refers to all TSPN Affiliate Applications and Agreements, these Policies and Procedures, Terms and Conditions, the TSPN Compensation Plan, and the TSPN Business Entity Form. These documents are incorporated by reference into all TSPN Affiliate Agreements. It is the responsibility of each Affiliate to read, understand, adhere to, and ensure that he or she is aware of and operating under the most current version of these Policies and Procedures. When enrolling a new Affiliate, it is the responsibility of the Sponsor and the applicant to provide and read the most current version of these Policies and Procedures and the TSPN Compensation Plan prior to his or her execution of any Affiliate Agreement. If the Affiliate continues to Enroll and/or accept Rebates, Commissions or Bonuses from TSPN, such actions shall be deemed acceptance of these Policies and Procedures.
TSPN is a company that markets products through Affiliates. It is important that all Affiliates understand that their success is dependent upon the integrity of all men and women who market TSPN products. To clearly define the relationship that exists between Affiliates and TSPN, and to explicitly set standards for acceptable business conduct, TSPN has established the Agreement. TSPN Affiliates are required to comply with all of the Terms and Conditions set forth in the Agreement, as well as all federal, state, and local laws governing their business and their conduct. It is very important that all Affiliates read and abide by the Agreement. Please review the information in this manual carefully. It explains and governs the relationship between Affiliates and the Company. Any questions regarding any policy or rule should be directed to TSPN.
Because federal, state, and local laws, as well as the business environment periodically change, TSPN reserves the right to amend the Agreement (including the AFFILIATE Enrollment Form, Terms and Conditions, Policies and Procedures and TSPN Compensation Plan) and its prices in its sole and absolute discretion. The Company shall provide or make available to all Affiliates a complete copy of the amended provisions by one or more of the following methods: (1) posting on the Company’s official web site; (2) electronic mail (e-mail); (3) fax-on-demand; (4) voice mail system broadcast; (5) inclusion in Company periodicals; (6) inclusion in product orders; or (7) special mailings. The most current and only definitive version will be located at www.TSPNpool.com. It is the responsibility of all Affiliates to regularly review www.TSPNpool.com for the most recently published amendment. Unless otherwise provided, amendments shall be effective upon publication on the Company’s website. If the Affiliate continues to Enroll and/or accept Rebates, Commissions or Bonuses from TSPN, such actions shall be deemed acceptance of the amendments.
TSPN shall not be responsible for delays or failures in performance of its obligations when performance is made commercially impracticable due to circumstances beyond its reasonable control. This includes, without limitation, strikes, labor difficulties, riot, war, fire, death, curtailment of a party’s source of supply, or government decrees or orders.
If any provision of the Agreement, in its current form or as may be amended, is found to be invalid or unenforceable for any reason, only the invalid portion(s) of the provision shall be severed and the remaining terms and provisions shall remain in full force and effect and shall be construed as if such invalid or unenforceable provision never comprised a part of the Agreement.
The Company never gives up its right to insist on compliance with the Agreement and with the applicable laws governing the conduct of a business. No failure of TSPN to exercise any right or power under the Agreement or to insist upon strict compliance by an Affiliate with any obligation or provision of the Agreement, and no custom or practice of the parties at variance with the terms of the Agreement, shall constitute a waiver of TSPN’s right to demand exact compliance with the Agreement. Waiver by TSPN can be affected only in writing by an authorized officer of the Company. TSPN’s waiver of any particular breach by an Affiliate shall not affect or impair TSPN’s rights with respect to any subsequent breach, nor shall it affect in any way the rights or obligations of any other Affiliate(s); Nor shall any delay or omission by TSPN to exercise any right arising from a breach affect or impair TSPN’s rights as to that or any subsequent breach. The existence of any claim or cause of action of an Affiliate against TSPN shall not constitute a defense to TSPN’s enforcement of any term or provision of the Agreement.
RULES OF CONDUCT
Each Affiliate promises to:
To become a TSPN Affiliate, each applicant must:
3.1.4 – Register as a TSPN Affiliate.
In addition to registering online or with a paper hard copy Affiliate Application and Agreement, a potential new Affiliate may call TSPN customer service during regular business hours to receive a temporary Affiliate Number (AFFILIATE Number) and temporary authorization for a new Affiliate. The caller must be able to provide all necessary Affiliate Agreement information over the telephone.
The new Affiliate’s Affiliate Number and authorization will be valid for 30 days, pending receipt of the completed and signed original Affiliate Application and Agreement by TSPN. Once the original Affiliate Application and Agreement is received by TSPN, the new Affiliate Agreement will be extended to one full year from the date on which the Affiliate Number was issued. If the new Affiliate Application and Agreement is not received within the temporary 30-day time period, the temporary authorization shall expire, the Affiliate Number will be canceled, and the Affiliate Application and Agreement will be automatically terminated. An applicant may also register by faxing a properly completed Affiliate Application and Agreement to TSPN.
The term of the Affiliate Agreement is one year from the date of its acceptance by TSPN. A renewal fee of $49.00 will be required and billed each successive year on the yearly anniversary date of the Affiliate Agreement. Once the annual renewal fee has been collected, the Agreement will be renewed provided the Affiliate is in good standing and the Agreement has not been cancelled as provided herein.
Affiliates must adhere to the terms of the TSPN Compensation Plan as set forth in official TSPN materials. Affiliates shall not offer the TSPN opportunity through, or in combination with, any other system, program, or method of marketing other than that specifically set forth in official TSPN literature. Affiliates shall not require or encourage other current or prospective Affiliates to participate in TSPN in any manner that varies from the program as set forth in official TSPN materials. Affiliates shall not require or encourage other current or prospective Affiliates to execute any agreement or contract other than official TSPN agreements and contracts in order to become a TSPN Affiliate. Similarly, Affiliates shall not require or encourage other current or prospective Affiliates to make any purchase from, or payment to, any individual or other entity to participate in the TSPN Compensation Plan other than those purchases or payments identified as recommended or required in official TSPN literature.
A corporation, limited liability company, partnership or trust (collectively referred to in this section as a “Business Entity”) may apply to be a TSPN Affiliate by submitting a copy of its organizational documents to TSPN, along with a properly completed registration form. If an Affiliate enrolls online, all required documents and registration forms must be submitted to TSPN within 30 days of the online enrollment. (If not received within the 30-day period, the Affiliate Agreement shall automatically terminate.) A TSPN business may change its status under the same sponsor from an individual to a partnership, corporation or trust or from one type of entity to another by requesting a Name Change Request Form from the TSPN Compliance Department. The Registration form must be signed by all of the shareholders, partners, trustees, members or owners. Members of the entity are jointly and severally liable for any indebtedness or other obligation to TSPN.
A person who is recognized as a minor in his/her state of residence may not be a TSPN Affiliate. Affiliates shall not enroll or recruit minors into the TSPN program. Minors who are at least sixteen years old may enroll as a TSPN Affiliate if the parent or guardian of the minor also enrolls as the minor’s co-applicant.
4.4 - One TSPN Business per Affiliate and Spouse and Two per Household
Husbands and wives or common-law couples (collectively “spouses”) may operate or have an ownership interest, legal or equitable, as a sole proprietorship, partner, shareholder, trustee, member, owner, or beneficiary in only one TSPN business. Dependent children, 18 or over, living at the same address may own one TSPN business.
If any member of an Affiliate’s immediate household engages in any activity which, if performed by the Affiliate, would violate any provision of the Agreement, such activity will be deemed a violation by the Affiliate and TSPN may take disciplinary action pursuant to the Policies and Procedures against the Affiliate. Similarly, if any individual associated in any way with a corporation, partnership, limited liability company, trust or other entity (collectively “affiliated individual”) violates the Agreement, such action(s) will be deemed a violation by the entity, and TSPN may take disciplinary action against the entity.
Affiliates are independent contractors, and are not purchasers of a franchise or a business opportunity. The agreement between TSPN and its Affiliates does not create an employer/employee relationship, agency, partnership, or joint venture between the Company and the Affiliate. TSPN may, at its discretion, require notarized documents before implementing any changes to a TSPN business. Please allow thirty (30) days after the receipt of the request by TSPN for processing.
All active Affiliates in good standing have the right to sponsor and place others into TSPN’s genealogical placement tree. Each prospective Affiliate has the ultimate right to choose his or her own Sponsor and Placement. If two Affiliates claim to be the Sponsor and/or Placement (immediate upline) of the same new Affiliate, the Company shall presume that the choice of the new Affiliate shall be controlling.
Each Affiliate must immediately notify TSPN of all changes to the information contained on his or her Affiliate Application and Agreement. Affiliates may modify their existing Affiliate Agreement (i.e., change Social Security number to Federal I.D. number, or change the form of ownership from an individual proprietorship to a business entity owned by the Affiliate) by submitting a written request for a Name Change Request Form, a properly executed Affiliate Application and Agreement, and appropriate supporting documentation.
When adding a co-applicant (either an individual or a business entity) to an existing TSPN business, the Company requires a written request as well as a properly completed Affiliate Application and Agreement containing the applicant and co-applicant’s Social Security Numbers and signatures. To prevent the circumvention of Section 4.9 (regarding transfers and assignments of a TSPN business), the original applicant must remain as a party to the original Affiliate Application and Agreement. If the original Affiliate wants to terminate his or her relationship with the Company, he or she must transfer or assign his or her business in accordance with Section 4.9. If this process is not followed, the business may be canceled by TSPN upon the withdrawal of the original Affiliate. All bonus and commission earnings will be sent to the address of record of the original Affiliate if applicable. Please note that the modifications permitted within the scope of this paragraph do not include a change of sponsor/placement. Changes of sponsor/placement are addressed in Section 4.7.3, below. There is a $25.00 fee for each change requested, which must be included with the written request and the completed Affiliate Application and Agreement.
To protect the integrity of all marketing organizations and safeguard the hard work of all Affiliates, TSPN strongly discourages changes in placement. Maintaining the integrity of placement is critical for the success of every Affiliate and marketing organization. Accordingly, the transfer of a TSPN business from one Sponsor to another is rarely permitted. Requests for a change must be submitted by contacting the Compliance Department, and must include the reason for the change. If the change is approved, only one change will be allowed per Placement and Sponsor. Transfers will only be considered in the following two (2) circumstances:
22.214.171.124 - A Sponsor may conditionally place a new Affiliate within their organization. The Sponsor may withdraw his original placement of a new Affiliate as long as the request occurs within 90 days of the original placement. If a new Affiliate has been placed and a request to withdraw the placement occurs, the new Affiliate may only be placed one additional time. Requests for a change must be submitted by contacting the Compliance Department, and must include the reason for the change.
An Affiliate may change marketing organizations by voluntarily canceling his or her TSPN business and remaining inactive (i.e., no purchases of TSPN products, no enrolling, no attendance at any TSPN functions, no participation in any other form of Affiliate activity or operation of any other TSPN business) for two (2) full calendar months. Following the two month period of inactivity, the former Affiliate may reapply under a new Sponsor. TSPN will consider waiving the two month waiting period under exceptional circumstances. Such requests for waiver must be submitted to TSPN in writing.
When a vacancy occurs in a Marketing Organization due to the termination of a TSPN business, each Affiliate in the first level immediately below the terminated Affiliate on the date of the cancellation will be moved to the first level (“front line”) of the terminated Affiliate’s Placement (compresses up one level within the Placement Tree).
Although a TSPN business is a privately owned, independently operated business, the sale, transfer or assignment of a TSPN business is subject to certain limitations. If an Affiliate wishes to sell his or her TSPN business, the following criteria must be met:
TSPN Affiliates sometimes operate their TSPN businesses as spouse partnerships, regular partnerships, corporations, limited liability companies, or trusts. At such time as a marriage ends, or a business entity dissolves, arrangements must be made to ensure that any separation or division of the business is accomplished so as not to adversely affect the interests and income of other businesses up or down the line of Placement. If the separating parties fail to provide for the best interests of other Affiliates and the Company, TSPN will involuntarily terminate the Affiliate Agreement and roll up their entire organization pursuant to Section 4.8.
Under no circumstances will the Downline of divorcing spouses or a dissolving business entity be divided. Similarly, under no circumstances will TSPN split commission and bonus checks between divorcing spouses or members of dissolving entities. TSPN will recognize only one Downline and will issue only one commission check per TSPN business per commission cycle. Commission earnings shall always be issued to the same individual or entity. In the event that parties to a divorce or dissolution proceeding are unable to resolve a dispute over the disposition of commissions and ownership of the business, commissions will continue to be paid to the primary member on the account.
If a former spouse or a former entity affiliate has completely relinquished all rights in their original TSPN business, they are thereafter free to enroll under any Sponsor of their choosing. In such case, however, the former spouse or partner shall have no rights to any Affiliates in their former organization. They must develop the new business in the same manner as would any other new Affiliate.
Upon the death or incapacitation of an Affiliate, his or her business may be passed to his or her heirs. Appropriate legal documentation must be submitted to the Company to ensure the transfer is proper. Accordingly, an Affiliate should consult an attorney to assist him or her in the preparation of a will or other testamentary instrument. Whenever a TSPN business is transferred by a will or other testamentary process, the legal successor in interest acquires the right to collect all financial distributions (as defined in Section 12) of the deceased Affiliate’s marketing organization, provided the following qualifications are met. The successor(s) must:
To effect a testamentary transfer of a TSPN business, the successor must provide the following to TSPN:
If the Successor is already a TSPN Distributor, the Company may grant exception to the One Distributor per Household rule upon written request from the Successor.
To effect a transfer of a TSPN business because of incapacity, a legally appointed representative must provide the following to TSPN: (1) a notarized copy of an appointment as trustee or other legally appointed representative; (2) a notarized copy of the trust document or other documentation establishing the trustee’s right to administer the TSPN business; and (3) a completed Affiliate Agreement executed by the trustee.
If an Affiliate has questions about or believes any errors have been made regarding commissions, bonuses, Downline Activity Reports, or charges, the Affiliate must notify TSPN in writing within 60 days of the date of the purported error or incident in question. TSPN will not be responsible for any errors, omissions or problems not reported to the Company within 60 days.
To ensure timely delivery of support materials and commission checks, it is critically important that TSPN’s files are current. Physical street addresses are required to receive mail from TSPN (NO P.O. Boxes). Affiliates planning to move should send any change of address or telephone number to TSPN. If an Affiliate is presently on the Autoship program, the Autoship will automatically be updated to the new address. If more than one change of address notice or Autoship Agreement has been submitted to TSPN, the most recent one will supersede previous notices or Agreements. Please allow thirty (30) days after the receipt of the notice or Agreement by TSPN for processing.
The Affiliate who enrolls a new Affiliate (the “Sponsor”) must perform a bona fide assistance and training function to ensure that his or her downline is properly operating his or her TSPN business (This is in the sponsor’s best financial interest). Affiliates must have ongoing contact and communication with the Affiliates in their Downline Organization. Examples of such contact and communication may include, but are not limited to: newsletters, written correspondence, personal meetings, telephone contact, voice mail, electronic mail, and the accompaniment of downline Affiliates to TSPN meetings, training sessions, and other functions. Upline Affiliates (the “Placements”) are also responsible to motivate and train new Affiliates in TSPN product knowledge, effective sales techniques, the TSPN Compensation Plan, and compliance with Company Policies and Procedures. Communication with and the training of downline Affiliates must not, however, violate Section 8.1 (regarding the development of Affiliate-produced sales aids and promotional materials). Affiliates must monitor the Affiliates in their Downline Organization to ensure that downline Affiliates do not make improper product or business claims, or engage in any illegal or inappropriate conduct. Upon request by TSPN, every Affiliate should be able to provide documented evidence to TSPN of his or her ongoing fulfillment of the responsibilities of a Sponsor.
As Affiliates progress through the various levels of leadership, they will become more experienced in sales techniques, product knowledge, and understanding of the TSPN program. They will be called upon to share this knowledge with lesser-experienced Affiliates within their organization.
TSPN wants to provide its Affiliates 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 TSPN. Affiliates should not disparage, demean, or make negative remarks about TSPN, other TSPN Affiliates, TSPN’s products, the Compensation Plan, or TSPN’s directors, officers, or employees.
Verbal abuse in any form will not be tolerated by TSPN and is grounds for termination. Any Affiliate who believes they have been abused should report the alleged abuse immediately to Compliance@TSPNpool.com in writing. If the abuse is proven, the Affiliate who endured the abuse may request a change of Placement and Placement.
Any retaliation to an Affiliate, who has demonstrated verbal abuse with documented proof and has requested a transfer of Placement away from a perpetrator of same, is grounds for immediate termination of the Affiliate who was the perpetrator. Also, any false allegations towards another Affiliate are grounds for immediate termination.
A Sponsor must provide the most current version of the Policies and Procedures and the Compensation Plan to the individual(s) whom he or she is enrolling to become an Affiliate before the applicant signs any Affiliate Agreement. Additional copies of Policies and Procedures can be found on the TSPN website.
Affiliates observing a policy violation by another Affiliate should submit a written report of the violation directly to the attention of the TSPN Compliance Department. Details of the incidents such as dates, number of occurrences, persons involved, and any supporting documentation should be included in the report.
No claims may be made or implied that any Affiliate has advantages with or special privileges with the Company or is in any way exempt from the same obligations and requirements of every other TSPN Affiliate.
Affiliates may participate in other direct selling or network marketing or multilevel marketing ventures (collectively “network marketing ventures”), and Affiliates may engage in selling activities related to non-TSPN products and services if they desire to do so. If an Affiliate elects to participate in another network marketing venture, in order to avoid conflicts of interest and loyalties, Affiliates must adhere to the following:
During the term of this Agreement, an Affiliate shall not engage in any actual or attempted recruitment or enrollment of TSPN Affiliates for other network marketing business ventures, either directly or through a third party. This includes, but is not limited to, presenting or assisting in the presentation of another network marketing venture to any TSPN Affiliate, or implicitly or explicitly encouraging any TSPN Affiliate to join other network marketing business ventures.
TSPN does not encourage Affiliates to target the sales force of another direct sales company to sell TSPN products or to become Affiliates for TSPN, nor does TSPN encourage Affiliates to solicit or entice members of the sales force of another direct sales company to violate the terms of their contract with such other company.
Actual or attempted Cross Placement is strictly prohibited. “Cross Placement” is defined as the enrollment of an individual or entity which already has a current Affiliate Agreement on file with TSPN, or which has had such an agreement within the preceding two (2) calendar months, within a different line of Placement. The use of a spouse’s or relative’s name, trade names, DBAs, assumed names, corporations, partnerships, trusts, federal ID numbers, or fictitious ID numbers to circumvent this policy is prohibited.
Affiliates shall not demean, discredit or defame other TSPN Affiliates in an attempt to entice another Affiliate to become part of the first Affiliate’s marketing organization. This policy shall not prohibit the transfer of a TSPN business in accordance with Section 4.9.
If Cross Placement is discovered, it must be brought to the Company’s attention immediately. TSPN may take action against the Affiliate who changed organizations and/or those Affiliates who encouraged or participated in the Cross Placement. TSPN may also move all or part of the offending Affiliate’s downline to his or her original downline organization if the Company deems it equitable and feasible to do so. However, TSPN is under no obligation to move the Cross-Placement Affiliate’s downline organization, and the ultimate disposition of the organization remains within the sole discretion of TSPN. Affiliates waive all claims and causes of action against TSPN arising from or relating to the disposition of the Cross-Placement Affiliate’s downline organization.
Affiliates must not manipulate enrollments of new applicants and purchases of products. All Affiliate Applications and Agreements, and product orders must be sent to TSPN within 48 hours from the time they are signed by an Affiliate.
“Stacking” is strictly prohibited. The term “stacking” includes: (a) the failure to transmit to TSPN or the holding of any Affiliate Application and Agreement in excess of two business days after its execution; (b) violating the two businesses per household rule; and/or (c) enrolling fictitious individuals or entities into the TSPN Compensation Plan.
Downline Activity Reports are available for Affiliate access and viewing at the TSPN official web site. Affiliate access to their Downline Activity Reports is password protected. All Downline Activity Reports and the information contained therein are confidential and constitute proprietary information and business trade secrets and are owned exclusively by TSPN. Downline Activity Reports are provided to Affiliates in the strictest of confidence and are made available to Affiliates for the sole purpose of assisting Affiliates in working with their respective Downline Organizations in the development of their TSPN business. Affiliates should use their Downline Activity Reports to assist, motivate, and train their downline Affiliates. The Affiliate(s) and TSPN agree that, but for this agreement of confidentiality and nondisclosure, TSPN would not provide Downline Activity Reports to the Affiliate. An Affiliate shall not, on his or her own behalf, or on behalf of any other person, partnership, association, corporation or other entity:
TSPN will allow an Affiliate to create or purchase third party websites to enhance their business. An Affiliate may use such a website provided the website is in strict compliance with Section 8.3 below. TSPN has a policy of not giving any of these third party companies or websites direct access to the information that we collect during the enrollment process or anytime that an Affiliate is registered as an Affiliate with TSPN.
Affiliate agrees that TSPN may send unsolicited TSPN messages to other Affiliates, whether in the form of e-mails, faxes or telephone calls or some other format, whether recorded or in-person, at any time provided that the message is connected with the business of TSPN.
All Affiliates shall safeguard and promote the good reputation of TSPN and its products. The marketing and promotion of TSPN, the TSPN opportunity, the Compensation Plan, and TSPN products shall be consistent with the public interest, and must avoid all discourteous, deceptive, misleading, unethical or immoral conduct or practices. To promote both the products and the tremendous opportunity TSPN offers, Affiliates are encouraged to use the sales aids and support materials offered by TSPN. The Company has carefully designed its products, product labels, Compensation Plan, and promotional materials to ensure that the presentation of each aspect of TSPN is fair, truthful, substantiated, and complies with the vast and complex legal requirements of federal and state laws.
In the event that an Affiliate produces supplemental marketing material(s) of any kind, including but not limited to advertisements of any media type, flyers, brochures, CDs, audio recordings, posters, or banners, TSPN requires that a request be submitted to the Company’s Compliance Department for approval before it can be used or made public. Unless the Affiliate receives specific written approval to use such materials, the request shall be deemed denied. Also, TSPN reserves the right, at is discretion, to edit or discontinue previously approved Affiliate material(s).
TSPN further reserves the right to rescind approval for any sales tools, promotional materials, advertisements or other literature, and Affiliates waive all claims for damages or remuneration arising from or relating to such rescission.
An Affiliate may not make any claims stating that documents or materials that they have written or produced have been given approval from the TSPN Compliance Department, or that they are “compliance approved” even if they have received approval through the Compliance department for their marketing materials. As these compliance policies are vital to the long-term stability of TSPN and the preservation of the opportunity for all, violations of these policies will be strictly enforced. Failure to obtain approval for supplemental marketing materials of any kind and/or failure to implement the policies in any material may result in any of the actions set forth in Section 14.1, including, without limitation, the following:
TSPN is uniquely positioned in the marketplace by its special relationship with many preeminent marketing, PR and business professionals. In the interest of preserving these relationships for the benefit of all Affiliates and the Company, Affiliates must: (i) adhere strictly to the Company’s advertising policies, and (ii) refrain from any contact with any associate or employee of the Company’s Board of Directors, Advisory Board or other consultant to or advisor of the Company, without the express written consent of the Company.
If an Affiliate desires to utilize an Internet web page to promote his or her business, he or she may do so through the Company’s replicated web site program, using official TSPN templates. This program permits Affiliates to advertise on the Internet and to choose from among a variety of home page designs that can be personalized with the Affiliate’s message and the Affiliate’s contact information. These web sites seamlessly link directly to the official TSPN web site, giving the Affiliate a professional and Company-approved presence on the Internet. No Affiliate may independently design a web site that uses the name, logos, or product descriptions of TSPN or otherwise promotes (directly or indirectly) TSPN products or the TSPN opportunity, without the express written consent of TSPN. An Affiliate shall not use “blind” ads on the internet that make product or income claims which are ultimately associated with TSPN products, the TSPN opportunity, or the TSPN Compensation Plan.
If Affiliates receive TSPN’s consent to develop their own web pages, they shall agree to: (A) Use the text of the Company’s official web site; and (B) Not supplement the content of his or her web site with text from any source other than the Company. Affiliates who develop or publish their own web sites must register their site(s) with the Company and receive written approval from the Company prior to the site(s) public availability.
All other content must receive written approval from the Company prior to a site(s) public availability. For additional guidelines, please use the following list of requirements, which is designed to guide you in properly creating your TSPN marketing material. Any advertising or promotional material must contain this exact verbiage: “TSPN Affiliate.”
Affiliates may not use or attempt to register “TSPN” or any other product or individual name connected with the Company for use in any Internet domain name. Affiliates may not incorporate or attempt to incorporate such names, or any derivative thereof, into any electronic mail address. In addition, Affiliates may not incorporate such terms, or any derivative of any of the foregoing into any domain name, email addresses, user name, team names, telephone numbers or any other address or title. Additionally, Affiliates must comply with the terms and conditions set forth by each search engine or online advertising network. An Affiliate may purchase keywords for business purposes only, not personal, household or family purposes. Costs associated with search engine or online advertising are the sole responsibility of the Affiliate. An Affiliate must own the Internet property that they are advertising and cannot redirect to a website or other Internet property they do not own. At TSPN’s request, the Affiliate must demonstrate that they do own the Internet property or website advertised.
Affiliates must obtain approval from the TSPN Compliance Department before submitting or publishing Placement links on search engines, Internet properties or online advertising networks. Purchasing such keywords or other prohibited terms or referencing them in the copy is prohibited.
TSPN Affiliates are permitted to use Social Networking sites including, without limitation, Facebook, Twitter, or MySpace for the promotion of their TSPN businesses. However, while promoting the TSPN Opportunity using these types of Social Networking sites, Affiliates must abide by the following guidelines: (1) Affiliates must register their Social Networking accounts with the Compliance Department; (2) Affiliates must allow access to their Social Networking accounts so that, at the Company’s discretion, TSPN can review site content to assure compliance.
No names of celebrities may be published by Affiliates in association with TSPN without prior written approval of TSPN.
No Affiliate shall use the TSPN trade name(s), trademark(s), design(s), or symbol(s) by any person, without its prior, written permission. Affiliates may not produce for sale or distribution any recorded Company events and speeches without written permission from TSPN nor may Affiliates reproduce for sale or for personal use any recording of Company-produced audio or video tape presentations.
The name “TSPN” and other names as may be adopted by TSPN are proprietary trade names, trademarks and service marks of TSPN. As such, these marks are of great value to TSPN and are supplied to Affiliates for their use only in an expressly authorized manner. Use of the TSPN name or logo(s) on any item not produced by the Company is prohibited except as follows:
Affiliate’s Name TSPN® Affiliate
All Affiliates may list themselves as a “TSPN Affiliate” in the white or yellow pages of the telephone directory under their own name. No Affiliate may place telephone directory display ads using TSPN’s name or logo. Affiliates may not answer the telephone by saying, “TSPN,” “TSPN Incorporated,” or in any other manner that would lead the caller to believe that he or she has reached the TSPN corporate offices. Similarly, Affiliates are prohibited from using the names of persons or companies, trademarks, designs, or symbols to further their TSPN business without the written consent of the owner.
Affiliates may not use any form of media or other mass communication advertising to promote the Products, including mass communication advertising on the Internet. This includes news stories or promotional pieces on TV shows, newscasts, entertainment shows, Internet ads, etc. Products may be promoted only by personal contact or by literature produced and distributed by the Company or by Affiliates in accordance with these Policies and Procedures. Affiliates may place generic opportunity advertisements in jurisdictions allowing that type of advertisement, but only in accordance with the Policies and Procedures of the Company.
Affiliates may not promote the Products or opportunity through interviews with the media, articles in publications, news reports, press releases, or any other public information, trade, or industry information source, unless specifically authorized in writing by the Company. This includes private, paid membership, or “closed group” publications. Affiliates may not speak to the media on the Company’s behalf, and may not represent that they have been authorized by the Company to speak on its behalf. All media contacts or inquiries should be immediately referred to the Public Relations Department of the Company.
Except as provided in this section, Affiliates may not use or transmit unsolicited faxes, mass e-mail distribution, unsolicited e-mail, or “spamming” relative to the operation of their TSPN businesses. The terms “unsolicited faxes” and “unsolicited e-mail” mean the transmission via telephone, facsimile or electronic mail, respectively, of any material or information advertising or promoting TSPN, its products, its Compensation Plan or any other aspect of the Company which is transmitted to any person. These terms do not include a fax or e-mail: (a) to any person with that person’s prior express invitation or permission; or (b) to any person with whom the Affiliate has an established business or personal relationship. The term “established business or personal relationship” means a prior or existing relationship formed by a voluntary two-way communication between an Affiliate and a person, on the basis of: (a) an inquiry, application, purchase or transaction by the person regarding products offered by such Affiliate; or (b) a personal or familial relationship, which relationship has not been previously terminated by either party.
The Federal Trade Commission and the Federal Communications Commission each have regulations 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. Although TSPN does not consider Affiliates to be “telemarketers” in the traditional sense of the word, these government regulations broadly define the term “telemarketer” and “telemarketing” so that your inadvertent action of calling someone whose telephone number is listed on the federal “do not call” registry could cause you to violate the law. Moreover, these regulations must not be taken lightly, as they carry significant penalties (up to $11,000 per violation).
Therefore, Affiliates must not engage in telemarketing in the operation of their TSPN businesses. The term “telemarketing” means the placing of one or more telephone calls to an individual or entity to induce the purchase of a TSPN product or service, or to recruit them for the TSPN opportunity. “Cold calls” made to prospective customers or Affiliates that promote either the TSPN products or services or the TSPN opportunity constitute telemarketing and are prohibited. In addition, Affiliates shall not use automatic telephone dialing systems or random phone lists relative to the operation of their TSPN businesses. The term “automatic telephone dialing system” means equipment which has the capacity to: (a) store or produce telephone numbers to be called using a random or sequential number generator; and (b) to dial such numbers. In addition, Affiliates acknowledge and agree to abide by federal telemarketing guidelines.
An Affiliate is fully responsible for all of his or her verbal and written statements made regarding TSPN products and the Compensation Plan which are not expressly contained in official TSPN materials. Affiliates agree to indemnify TSPN and the TSPN director(s), officer(s), employee(s), and agent(s), and hold them harmless from any and all liability including, but not limited to, judgments, civil penalties, refunds, attorney fees, court costs, or lost business incurred by TSPN as a result of the Affiliate’s unauthorized representations or actions. This provision shall survive the termination of the Affiliate Agreement.
No claims, which include personal testimonials of any products offered by TSPN may be made except those contained in official TSPN materials.
An Affiliate that provides a product experience testimonial in any medium should use care to disclose their affiliation with TSPN (“TSPN Affiliate”), be honest in their testimonial personal experience, and assert that they are not claiming that their experience is the typical result experienced by consumers.
IN THEIR ENTHUSIASM TO ENROLL PROSPECTIVE AFFILIATES, SOME AFFILIATES ARE OCCASIONALLY TEMPTED TO MAKE INCOME CLAIMS OR EARNINGS REPRESENTATIONS TO DEMONSTRATE THE INHERENT POWER OF NETWORK MARKETING. THIS IS COUNTERPRODUCTIVE BECAUSE NEW AFFILIATES MAY BECOME DISAPPOINTED VERY QUICKLY IF THEIR RESULTS ARE NOT AS EXTENSIVE OR AS RAPID AS THE RESULTS OTHERS HAVE ACHIEVED. AT TSPN, WE FIRMLY BELIEVE THAT THE TSPN INCOME POTENTIAL IS GREAT ENOUGH TO BE HIGHLY ATTRACTIVE, WITHOUT REPORTING THE EARNINGS OF OTHERS. MOREOVER, THE FEDERAL TRADE COMMISSION AND SEVERAL STATES HAVE LAWS OR REGULATIONS THAT REGULATE OR EVEN PROHIBIT CERTAIN TYPES OF INCOME CLAIMS AND TESTIMONIALS MADE BY PERSONS ENGAGED IN NETWORK MARKETING. WHILE AFFILIATES MAY BELIEVE IT BENEFICIAL TO PROVIDE COPIES OF CHECKS, OR TO DISCLOSE THE EARNINGS OF THEMSELVES OR OTHERS, SUCH APPROACHES HAVE LEGAL CONSEQUENCES THAT CAN NEGATIVELY IMPACT TSPN AS WELL AS THE AFFILIATE MAKING THE CLAIM UNLESS APPROPRIATE DISCLOSURES REQUIRED BY LAW ARE ALSO MADE CONTEMPORANEOUSLY WITH THE INCOME CLAIM OR EARNINGS REPRESENTATION. BECAUSE TSPN AFFILIATES DO NOT HAVE THE DATA NECESSARY TO COMPLY WITH THE LEGAL REQUIREMENTS FOR MAKING INCOME CLAIMS, AN AFFILIATE, WHEN PRESENTING OR DISCUSSING THE TSPN OPPORTUNITY OR COMPENSATION PLAN TO A PROSPECTIVE AFFILIATE, MAY NOT MAKE INCOME PROJECTIONS, INCOME CLAIMS, OR DISCLOSE HIS OR HER TSPN INCOME (INCLUDING THE SHOWING OF CHECKS, COPIES OF CHECKS, BANK STATEMENTS, OR TAX RECORDS). HYPOTHETICAL INCOME EXAMPLES THAT ARE USED TO EXPLAIN THE OPERATION OF THE COMPENSATION PLAN, AND WHICH ARE BASED SOLELY ON MATHEMATICAL PROJECTIONS, MAY BE MADE TO PROSPECTIVE AFFILIATES, SO LONG AS THE AFFILIATE WHO USES SUCH HYPOTHETICAL EXAMPLES MAKES CLEAR TO THE PROSPECTIVE AFFILIATE(S) THAT SUCH EARNINGS ARE HYPOTHETICAL, AND THE AFFILIATE PROVIDES THE PROSPECT WITH A COPY OF THE MOST CURRENT INCOME DISCLOSURE CHART PREPARED BY THE COMPANY. UNTIL SUCH TIME AS TSPN PUBLISHES AN OFFICIAL INCOME DISCLOSURE STATEMENT, AFFILIATES MAY NOT USE HYPOTHETICAL INCOME EXAMPLES IN THE PROMOTION OF THEIR TSPN BUSINESSES.
Neither federal nor state regulatory agencies nor officials approve or endorse any direct selling or network marketing companies or programs. Therefore, Affiliates shall not represent or imply that TSPN or its Compensation Plan has been “approved,” “endorsed” or otherwise sanctioned by any government agency.
All Affiliates are required to provide their Social Security Number or a Federal Employer Identification Number to TSPN on any Affiliate Application and Agreement. Upon enrollment, the Company will provide a unique Affiliate Number (AFFILIATE Number) to the Affiliate by which he or she will be identified. This number will be used to place orders and track commissions and bonuses.
Each Affiliate is responsible for paying local, state, and federal taxes on any income generated as an Affiliate. If a TSPN business is tax exempt, the Federal tax identification number must be provided to TSPN. Every year, TSPN will provide an IRS Form 1099 MISC (Non-employee Compensation) earnings statement to each U.S. distributor who: 1) had earnings of over $600 in the previous calendar year; or 2) made purchases during the previous calendar year in excess of $5,000.
You may wish to arrange insurance coverage for your business. Your homeowner’s insurance policy does not cover business-related injuries or the theft of or damage to business equipment. Contact your insurance agent to make certain that your business property is protected. This can often be accomplished with a simple “Business Pursuit” endorsement attached to your present homeowner’s policy.
Affiliates are authorized to sell TSPN products, and enroll Affiliates only in countries in which TSPN is authorized to conduct business, as announced in official Company materials and as listed below in Section 9.4.2. However, before initiating business activities in any authorized country, an Affiliate must first complete and submit the TSPN International Placement Application to the Compliance Department. Once such Application has been received and accepted, as evidenced by written authorization by a member of the International Development Team, the submitting Affiliate may begin doing business in any authorized country in accordance with the applicable terms and conditions of that country. Allowed conduct and activity in unauthorized and/or NFR markets is described in 9.4.1 below.
Un-Authorized markets (Pre-Market) - Prior to the official opening of a country, permissible Affiliate activity is limited to providing business cards and conducting, organizing, or participating in meetings with no more than five (5) attendees, including the Affiliate. Other attendees must be personal acquaintances or acquaintances of personal acquaintances. These meetings must be held in a home or a public establishment but may not be held in a private hotel room. All cold-calling techniques (soliciting persons who are not prior personal acquaintances of the contacting Affiliate) are strictly prohibited in unopened countries. Not For Resale (“NFR”) - Countries where residences of the country are allowed to import products for personal use only on a “not-for-resale” basis, but where the re-selling of those products is prohibited.
Currently the only authorized international markets are: United States (Full Business).
TSPN strongly encourages the retailing and selling of its products through person-to-person contact. In an effort to reinforce this method of marketing and to help provide a standard of fairness for its Affiliate base, Affiliates may not display or sell TSPN products or literature in any retail establishment.
Affiliates may display and/or sell TSPN products, at their own expense, at trade shows and professional expositions as long as there are no other Affiliates with a display or selling products at the event. TSPN expects its Affiliates to present and conduct themselves professionally in all forums of business.
The use of any third party discount or auction Internet website or web page (including, without limitation, auction sites such as Amazon or eBay) to in any way promote the sale of TSPN products, the TSPN Opportunity, or the Compensation Plan is a breach of the Agreement and may result in termination and a fine of up to $10,000. Affiliates that are found in violation of this policy are not eligible to receive a refund on any of the products purchased.
10.4 - Bonus Buying Prohibited
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 a Affiliate Application and Agreement by such individuals or entities; (b) the fraudulent enrollment of an individual or entity as an Affiliate; (c) the enrollment or attempted enrollment of non-existent individuals or entities as Affiliates (“phantoms”); (d) purchasing TSPN merchandise on behalf of another Affiliate or under another Affiliate’s AFFILIATE Number to qualify for commissions or bonuses.
The TSPN Compensation Plan is based upon the sale of TSPN products to end consumers. Affiliates must fulfill personal and Downline Organization retail sales requirements (as well as meet other responsibilities set forth in the Agreement) to be eligible for bonuses, commissions and advancement to higher levels of achievement. The following sales requirements must be satisfied for Affiliates to be eligible for commissions:
Affiliates may not advertise TSPN Products at a price less than the retail price of any TSPN Product or Service. Affiliates also agree that all advertising regarding the price of Products will be truthful and will not contain misleading statements (e.g., “lowest price available” which infers that an Affiliate is able to sell the Products at a price lower than other Affiliates, etc.). Any violation of this Section by an Affiliate shall constitute a breach of the Agreement and may result in any of the actions set forth in Section 14.
There are no exclusive territories granted to anyone. No franchise fees are required.
An Affiliate must be active and in compliance with the Agreement to qualify for rebates, bonuses and commissions (“financial distributions”). So long as a Affiliate complies with the terms of the Agreement, TSPN shall pay financial distributions to such Affiliate in accordance with the Compensation Plan. The minimum amount for which TSPN will issue a check is $20.00. If an Affiliate’s financial distributions do not equal or exceed $24.00, the Company will accrue the financial distributions until they total $24.00. A check will be issued after $24.00 has been accrued.
Affiliates receive rebates for PV and financial distributions. When TSPN issues a refund, the financial distributions attributable to the refund will be deducted in the month in which the refund is given, and continuing every pay period thereafter, until the commission is recovered from the Affiliates who received the financial distributions on the sale(s) or purchase of the refunded product(s).
Affiliates must deposit or cash rebate commission and bonus checks within six months from their date of issuance. A check that remains uncashed after six months will be void. After a check has been voided, TSPN will attempt to notify an Affiliate who has an uncashed check by sending a monthly written notice to his or her last known address identifying the amount of the check and advising that the Affiliate can request that the check be reissued. There shall be a $25.00 charge for reissuing a check. This charge shall be deducted from the balance owed to the Affiliate. Affiliates who have a credit on account must use their credit within six months from the date on which the credit was issued. If credits have not been used within six months, TSPN shall attempt to notify the Affiliate on a monthly basis, by sending written notice to the last known address advising the Affiliate of the credit. There shall be a $10.00 charge for each attempted notification. This charge shall be deducted from the Affiliate’s credit on account.
From time to time, the Company may provide incentive trips and other awards to qualified Affiliates. No payment or credit will be given to those who cannot or choose not to attend trips or to accept awards.
Although the Company may pay some or all of the costs of such incentive trips, the Affiliate agrees to indemnify and hold harmless the Company from any claim, injury, loss or other damage sustained in association with the trip by the Affiliate and/or its guests. The Affiliate cannot make claim upon, or rely upon, any insurance policy of the Company to cover the costs and expenses of any injury, loss or other damage to the Affiliate and/or the Affiliate’s guests.
The Company may be required by law to include the fair market value of any incentive awards, trips, etc. on the Affiliate’s end of the year tax report. The Affiliate is liable for applicable taxes and agrees to hold the Company harmless from claims of tax liability relating to these incentive trips and awards.
If it is discovered that the Affiliate has made any misrepresentations or has violated any of the Policies and Procedures in becoming eligible for these incentives trips and awards, the Company may charge the Affiliate for any costs incurred by the Company or for any benefits received by the Affiliate. The Company reserves the right at its sole and absolute discretion to disallow participation for any reason it deems necessary.
For the purposes of this paragraph 12.5, “TSPN” means the entity and all of its employees, officers, directors, independent contractors, Affiliates, and agents.
Any Affiliate who registers for any league may cancel their registration within the first 30 days of registering and receive a 100% refund of both their annual membership fee and any recurring monthly charges having occurred within that 30 day period, less any transaction costs associated with the refund.
Any Affiliate who resigns (which resignation must be in writing and transmitted to the Company at Compliance@TSPNpool.com) shall receive as a refund a pro-rated amount of their $49 annual membership fee. In addition, the resigning Affiliate will be entitled to all recurring monthly charges for the month in which they resigned, less any transaction costs associated with the refund.
Previously paid Financial Distributions (as described in Section 12) may be reversed or adjusted as a result of the exceptions and at the sole discretion of the Company. Any Commissions paid to the Affiliate and his or her Upline for the cancellation or resignation by the Affiliate may be debited from the respective Upline Affiliate’s account or withheld from present or future Commission payments. An Affiliate agrees that he or she will not rely on existing downline Volume at the close of a commission’s period, as resignations and refunds may cause changes to his or her Title, Rank and/or commissions payout.
Registrants for the New League Promoter tournaments are not eligible for their annual fee portion of the 30-day, money-back policy.
Montana residents may cancel their Affiliate Agreement within 30 days from the date of enrollment, and may receive a full refund within such time period.
Any breach of the Agreement, including these Policies and Procedures, or any illegal, fraudulent, deceptive or unethical business conduct by an Affiliate may result, at TSPN’s discretion, in one or more of the following actions:
When an Affiliate has a grievance or complaint with another Affiliate regarding any practice or conduct in relationship to their respective TSPN businesses, the complaining Affiliate should first report the problem to his or her 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 Compliance Department at the Company. The Compliance Department will review the facts and attempt to resolve it.
Affiliates should not accept monies to be held for deposit in anticipation of future registrations.
It is the responsibility of each Affiliate to ensure that there are sufficient funds or credit available in his or her account to cover the recurring monthly charges. TSPN is not obligated to contact Affiliates in regard to league registrations canceled due to insufficient funds or credit. This type of order cancellation may result in an Affiliate’s failure to receive commissions, participate in league play, or to meet his or her Personal Volume requirements for the month.
Affiliate shall not permit other Affiliates to use his or her credit card.
Applicable sales taxes may be charged on all orders. Any sales tax exemption accepted by TSPN is not retroactive.
So long as an Affiliate remains active and complies with the terms of the Affiliate Agreement, including these Policies and Procedures, TSPN shall pay financial distributions (as described in Section 12) to such Affiliate in accordance with the Compensation Plan. An Affiliate’s financial distributions constitute the entire consideration for the Affiliate’s efforts in generating sales and all activities related to generating sales (including building a downline organization). Following an Affiliate’s non-renewal of his or her Affiliate Agreement, Cancellation Due to Inactivity (If an Affiliate has not fulfilled his or her Personal Volume requirements to remain eligible for Commissions for a period of three (3) consecutive calendar months, his or her Affiliate Agreement shall be canceled for inactivity.), or voluntary or involuntary cancellation of his or her Affiliate Agreement (all of these methods are collectively referred to as “cancellation”), the former Affiliate shall have no right, title, claim or interest to the marketing organization which he or she operated, or any commission or bonus from the sales generated by the organization. An Affiliate whose business is cancelled will permanently lose all rights as an Affiliate.
This includes the right to sell TSPN products and the right to receive future commissions, bonuses, or other income resulting from the sales and other activities of the Affiliate’s former downline sales organization. In the event of cancellation, Affiliates agree to waive all rights they may 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.
Following an Affiliate’s cancellation of his or her Affiliate Agreement, the former Affiliate shall not hold himself or herself out as a TSPN Affiliate and shall not have the right to sell TSPN products. An Affiliate whose Affiliate Agreement is canceled shall receive commissions and bonuses only for the last full pay period he or she was active prior to cancellation (less any amounts withheld during an investigation preceding an involuntary cancellation).
An Affiliate’s breach of any of the terms of any Agreement may result in any of the sanction actions in Section 14.1, including the involuntary cancellation of his or her Affiliate Agreement. Unless otherwise provided for in the cancellation notice, cancellation shall be effective on the date on which written notice is mailed, faxed, or delivered to an express courier, to the Affiliate’s last known address (or fax number), or to his/her attorney, or when the Affiliate receives actual notice of cancellation, whichever occurs first.
An Affiliate has the right to cancel the Agreement at any time. Cancellation must be submitted in writing to the Company at the business email address: Compliance@TSPNpool.com. The written notice must include the Affiliate’s signature, printed name, address, and Affiliate Number. However, if an Affiliate is not in good standing with the Company at the time TSPN receives notice of cancellation, the consequences of an involuntary cancellation may take effect (as per Section 14).
An Affiliate may voluntarily cancel his or her Affiliate Agreement by sending written notice within 30 days of the anniversary date. The Company may also elect not to renew an Affiliate’s Agreement upon the Agreement’s anniversary date.
Acceptance - means your acceptance of the offer of TSPN to become an Affiliate by completing any application and delivering it to TSPN. “Acceptance” shall be deemed to occur when TSPN first receives an application from a person who has decided to become an Affiliate.
Active Affiliate - An Affiliate who satisfies the minimum Personal Volume requirements, as set forth in the TSPN Compensation Plan, to ensure that he or she is eligible to receive bonuses and commissions.
Active Rank - The term “active rank” refers to the current rank of an Affiliate, as determined by the TSPN Compensation Plan, for any calendar month. To be considered “active” relative to a particular rank, an Affiliate must meet the criteria set forth in the TSPN Compensation Plan for his or her respective rank. (See the definition of “Rank” below.)
Agreement - The contract between the Company and each Affiliate includes any Affiliate Application and Agreement, the TSPN Policies and Procedures, the TSPN Compensation Plan, and the Business Entity Form (where appropriate), all in their current form and as amended by TSPN in its sole discretion. These documents are collectively referred to as the “Agreement.”
Breach - “Breach”, “Default” and “Violation” mean an actual or alleged transgression or violation of any part of the Agreement.
Cancellation - The termination of an Affiliate’s business. Cancellation may be either voluntary or involuntary.
Commissionable Products - All TSPN products on which financial distributions are paid. Sales aids are not commissionable products.
Company - The term “Company” as it is used throughout the Agreement means TSPN.
Downline - “My downline”, “my downline marketing organization” or “my downline sales organization” means the network of Affiliates who exist under me pursuant to the Agreement. Any similar reference is only used for simplicity purposes. Affiliate understands that: (a) Affiliate does not have any ownership or possessory right, title or interest in any downline individual, entity, organization, or in any materials generated by TSPN or created by Affiliate, or any other individual or entity to the extent that it consists, in whole or in part, of any information about TSPN downlines or any part of the Agreement; (b) the sole property interest of an Affiliate with respect to downlines is the contractual right to receive commissions as set forth in the Agreement; and (c) that TSPN is the sole owner of any and all downline rights, titles, interests and materials.
Downline Activity Report - A monthly report generated by TSPN that provides critical data relating to the identities of Affiliates, sales information, and enrollment activity of each Affiliate’s Marketing Organization. This report contains confidential and trade secret information which is proprietary to TSPN. It is owned solely by TSPN.
Downline Leg - Each one of the individuals enrolled immediately underneath an Affiliate and their respective marketing organizations represent one “leg” in the Affiliate’s marketing organization.
Enrolled - The Affiliates who have been signed up as TSPN Affiliates by another Affiliate.
Sponsor - The Sponsor is the Affiliate who enrolls a new Affiliate into TSPN. The Sponsor may “place” the new Affiliate under himself or herself, or may place the new person under whom the new Affiliate is placed is the new Affiliate’s “Placement Sponsor.” The same Affiliate may be a new Affiliate’s “Sponsor” and “Placement Sponsor.” See the definition of “Placement Sponsor” below.
Immediate Household - Heads of household and dependent family members residing in the same house.
Level - The layers of downline Affiliates in a particular Affiliate’s Marketing Organization. This term refers to the relationship of an Affiliate relative to a particular upline Affiliate, determined by the number of Affiliates between them who are related by placementship. For example, if A is the Placement of B, B is the Placement of C, C is the Placement of D, and D is the Placement of E, then E is on A’s fourth level.
Marketing Organization - The Affiliates who are placed below a particular Affiliate.
Official TSPN Material - Literature, audio or video tapes, and other materials developed, printed, published and distributed by TSPN.
Organizational Volume (OV) - The commissionable value of TSPN products generated by an Affiliate’s Marketing Organization, including the Affiliate’s Personal Volume (PV).
Personal Volume (PV) - The commissionable value of TSPN products sold in a calendar month: (1) by the Company to an Affiliate; and (2) by the Company to the Affiliate’s personally enrolled downline.
Placement Sponsor - An Affiliate under whom the Sponsor places a new Affiliate.
Rank - The “title” that an Affiliate has achieved pursuant to the TSPN Compensation Plan.
Recruit - For purposes of TSPN’s Conflict of Interest Policy (Section 6), the term “recruit” means actual or attempted solicitation, enrollment, encouragement, or effort to influence in any other way, either directly or through a third party, another TSPN Affiliate to enroll or participate in another multilevel marketing, network marketing or direct sales opportunity. This conduct constitutes recruiting even if the Affiliate’s actions are in response to an inquiry made by another Affiliate.
Roll-Up - The method by which a vacancy is filled in a Marketing Organization left by an Affiliate whose Affiliate Agreement has been cancelled.
Upline - The Affiliate or Affiliates above a particular Affiliate in a Placement line up to the Company. Conversely stated, it is the line of Placements that links any particular Affiliate to the Company.