The Unimed Worldwide Companies Mission Statement
is to improve the quality and productivity of people’s lives
by promoting The Science of Beautiful Skin® and the highest
principles of free enterprise.
4.1 - Adherence to the Unimed Worldwide
Marketing and Compensation Plan
Consultants must adhere to the terms of
the Unimed Worldwide Marketing and Compensation Plan as set
forth in official Unimed Worldwide literature. Consultants shall
not offer the Unimed Worldwide opportunity through, or in combination
with, any other system, program, or method of marketing other
than that specifically set forth in official Unimed Worldwide
literature. Consultants shall not require or encourage other
current or prospective Preferred Customers, Customers or Consultants
to participate in Unimed Worldwide in any manner that varies
from the program as set forth in official Unimed Worldwide literature.
Consultants shall not require or encourage other current or
prospective Preferred Customers, Customers, or Consultants to
execute any agreement or contract other than official Unimed
Worldwide agreements and contracts in order to become a Unimed
Worldwide Consultant. Similarly, Consultants shall not require
or encourage other current or prospective Preferred Customers,
Customers, or Consultants to make any purchase from, or payment
to, any individual or other entity to participate in the Unimed
Worldwide Marketing and Compensation Plan other than those purchases
or payments identified as recommended or required in official
Unimed Worldwide literature.
4.1.1 - Consultant Websites
4.2 - If a Consultant desires to utilize
an Internet web page to promote his or her business, he or she
may do so through the Company’s replicated website program
Advertising
4.2.1 - General
All Consultants shall safeguard and promote
the good reputation of Unimed Worldwide and its products. The
marketing and promotion of Unimed Worldwide, the Unimed Worldwide
opportunity, the Marketing and Compensation Plan, and Unimed
Worldwide 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 Unimed Worldwide offers, Consultants should use
the sales aids and support materials produced by Unimed Worldwide.
The rationale behind this requirement is simple. Unimed Worldwide
has carefully designed its products, product labels, Marketing
and Compensation Plan, and promotional materials to ensure that
each aspect of Unimed Worldwide is fair, truthful, substantiated,
and complies with the vast and complex legal requirements of
federal, state and provincial laws. If Unimed Worldwide Consultants
were allowed to develop their own sales aids and promotional
materials (which includes Internet advertising), notwithstanding
their integrity and good intentions, the likelihood that they
would unintentionally violate any number of statutes or regulations
affecting a Unimed Worldwide business is almost certain. These
violations, although they may be relatively few in number, would
jeopardize the Unimed Worldwide opportunity for all Consultants.
Accordingly, Consultants must submit all written sales aids,
promotional materials, advertisements, and other literature
(including proposed Internet advertising) to the Company for
approval. Unless the Consultant receives specific written approval
to use the material, the request shall be deemed denied.
only. This program permits Consultants to advertise on the Internet
and to choose from among a variety of home page designs that
can be personalized with the Consultant's message and the Consultant's
contact information. These websites seamlessly link directly
to the official Unimed Worldwide website giving the Consultant
a professional and Company-approved presence on the Internet.
No Consultant may independently design a website that uses the
names, logos, or product descriptions of Unimed Worldwide or
otherwise promotes (directly or indirectly) Unimed Worldwide
products or the Unimed Worldwide opportunity. Nor may a Consultant
use "blind" ads on the Internet that make product
or income claims which are ultimately associated with Unimed
Worldwide products, the Unimed Worldwide opportunity, or the
Unimed Worldwide Marketing and Compensation Plan. The use of
any other Internet website or web page (including without limitation
auction sites such as eBay) to in any way promote the sale of
Unimed Worldwide products, the Unimed Worldwide opportunity,
or the Marketing and Compensation Plan is a breach of the Agreement
and may result in any of the disciplinary sanctions set forth
in Section 9.1.
4.2.2 - Domain Names and Email Addresses
Consultants may not use or attempt to register
any of Unimed Worldwide’s trade names, trademarks, service
names, service marks, product names, the Company’s name,
or any derivative thereof, for any Internet domain name. Nor
may Consultants incorporate or attempt to incorporate any of
the Company’s trade names, trademarks, service names,
service marks, product names, the Company’s name, or any
derivative thereof, into any electronic mail address.
4.2.3 - Trademarks and Copyrights
Unimed Worldwide will not allow the use
of its trade names, trademarks, designs, or symbols by any person,
including a Unimed Worldwide Consultants, without its prior,
written permission. Consultants may not produce for sale or
distribution any recorded Company events and speeches without
written permission from Unimed Worldwide nor may Consultants
reproduce for sale or for personal use any recording of Company-produced
audio or video tape presentations.
The name of Unimed Worldwide and other names
as may be adopted by Unimed Worldwide are proprietary trade
names, trademarks and service marks of Unimed Worldwide. As
such, these marks are of great value to Unimed Worldwide and
are supplied to Consultants for their use only in an expressly
authorized manner. Use of Unimed Worldwide name on any item
not produced by the Company is prohibited except as follows:
Consultant's Name
Independent Unimed Worldwide Consultant
or
Independent Chamonix Consultant
or
Independent Chamonix Skin Care Consultant
All Consultants may list themselves as an
“Independent Unimed Worldwide Consultant” or “Independent
Chamonix Consultant” in the white or yellow pages of the
telephone directory under their own name. No Consultant may
place telephone directory display ads using Unimed Worldwide's
or Chamonix’s name or logo. Consultants may not answer
the telephone by saying “Unimed Worldwide”, “Unimed
Worldwide Incorporated”, “Unimed”, “Chamonix”,
or in any other manner that would lead the caller to believe
that he or she has reached corporate offices of Unimed Worldwide.
4.2.4 - Media and Media Inquiries
Consultants must not attempt to respond
to media inquiries regarding Unimed Worldwide, its products,
or their independent Unimed Worldwide business. All inquiries
by any type of media must be immediately referred to the Communications
Department. This policy is designed to assure that accurate
and consistent information is provided to the public as well
as a proper public image.
4.2.5 - Spamming and Unsolicited Faxes
Except as provided in this section, Consultants
may not use or transmit unsolicited faxes, mass e-mail distribution,
unsolicited e-mail, or “spamming” relative to the
operation of their Unimed Worldwide 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 Unimed
Worldwide, its products, its Marketing and Compensation Plan
or any other aspect of the Company which is transmitted to any
person, except that 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 Consultant
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 a Consultant and a person, on the basis
of: (a) an inquiry, application, purchase or transaction by
the person regarding products offered by such Consultant; or
(b) a personal or familial relationship, which relationship
has not been previously terminated by either party.
4.3 - 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 an Independent Consultant Application and Agreement by such
individuals or entities; (b) the fraudulent enrollment of an
individual or entity as a Consultant or Preferred Customer or
Customer; (c) the enrollment or attempted enrollment of non-existent
individuals or entities as Consultants or Preferred Customers
(“phantoms”); (d) the use of a credit card by or
on behalf of a Consultant, Preferred Customer or Customer when
the Consultant, Preferred Customer or Customer is not the account
holder of such credit card; (e) Purchasing Unimed Worldwide
merchandise on behalf of another Consultant or Preferred Customer
or Customer, or under another Consultant’s or a Preferred
Customer’s or Customer’s I.D. number, to qualify
for commissions or bonuses
4.4 - Business Entities
A corporation, partnership or trust (collectively
referred to in this section as a “Business Entity”)
may apply to be a Unimed Worldwide Consultant by submitting
its Certificate of Incorporation, Partnership Agreement or trust
documents (these documents are collectively referred to as the
“Entity Documents”) to Unimed Worldwide, along with
a properly completed Business Entity Registration Form. If a
Consultant enrolls online, the Entity Documents and Business
Entity Registration Form must be submitted to Unimed Worldwide
within 30 days of the online enrollment. (If not received within
the 30-day period, the Consultant Agreement shall automatically
terminate.) A Unimed Worldwide 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.
There is a $25.00 fee for each change requested, which must
be included with the written request and the completed Consultant
Application and Agreement. The Business Entity Registration
Form must be signed by all of the shareholders, partners or
trustees. Members of the entity are jointly and severally liable
for any indebtedness or other obligation to Unimed Worldwide.
4.5 - Changes to a Unimed Worldwide Business
4.5.1 - General
Each Consultant must immediately notify
Unimed Worldwide of all changes to the information contained
on his or her Consultant Application and Agreement. Consultants
may modify their existing Consultant 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 Consultant) by submitting a written request,
a properly executed Consultant Application and Agreement,
and appropriate supporting documentation (as specified in
Section 4.4 above), and a $25.00 change fee.
4.5.2 - Addition of Co-Applicants
When adding a co-applicant (either an
individual or a business entity) to an existing Unimed Worldwide
business, the Company requires both a written request as well
as a properly completed Consultant Application and Agreement
containing the applicant and co-applicant’s Social Security
Numbers and signatures. To prevent the circumvention of Section
4.26 (regarding transfers and assignments of Unimed Worldwide
business), the original applicant must remain as a party to
the original Consultant Application and Agreement. If this
process is not followed, the business shall be canceled upon
the withdrawal of the original Consultant. All bonus and commission
checks will be sent to the address of record of the original
Consultant. Unimed Worldwide may, at its discretion, require
notarized documents before implementing any changes to a Unimed
Worldwide business. Please allow thirty (30) days after the
receipt of the request by Unimed Worldwide for processing.
4.5.3 - Change of Sponsor Not Permitted
To protect the integrity of all marketing
organizations and safeguard the hard work of all Consultants,
Unimed Worldwide prohibits changes in sponsorship. Maintaining
the integrity of sponsorship is critical for the success of
every Consultant and marketing organization. Accordingly,
the transfer of a Unimed Worldwide business from one Sponsor
to another is not permitted.
4.5.4 - Cancellation and Re-application
A Consultant may legitimately change
organizations by voluntarily canceling his or her Unimed Worldwide
business and remaining inactive (i.e., no purchases of Unimed
Worldwide products for resale, no sales of Unimed Worldwide
products, no enrolling or sponsoring, no attendance at any
Unimed Worldwide functions, participation in any other form
of Consultant activity, or operation of any other Unimed Worldwide
business) for six (6) full calendar months. Following the
six month period of inactivity, the former Consultant may
reapply under a new Sponsor. Unimed Worldwide will consider
waiving the six month waiting period under exceptional circumstances.
Such requests for waiver must be submitted to Unimed Worldwide
in writing.
4.6 - Unauthorized Claims and Actions
4.6.1 - Indemnification
A Consultant is fully responsible for
all of his or her verbal and written statements made regarding
Unimed Worldwide products and the Marketing and Compensation
Plan which are not expressly contained in official Unimed
Worldwide materials. Consultants agree to indemnify Unimed
Worldwide and Unimed Worldwide’s directors, officers,
employees, 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 Unimed
Worldwide as a result of the Consultant’s unauthorized
representations or actions. Consultant acknowledges that unless
he or she is a currently licensed cosmetics practitioner in
his or her state of residence, they may not apply any products
to the skin or face of any potential of current customer.
This provision shall survive the termination of the Consultant
Agreement.
4.6.2 - Product Claims
No claims (which include personal testimonials)
as to therapeutic, curative or beneficial properties of any
products offered by Unimed Worldwide may be made except those
contained in official Unimed Worldwide literature. In particular,
no Consultant may make any claim that Unimed Worldwide products
are useful in the cure, treatment, diagnosis, mitigation or
prevention of any diseases. Such statements can be perceived
as medical or drug claims. Not only are such claims violative
of Unimed Worldwide policies, but also they potentially violate
federal and state laws and regulations, including the federal
Food, Drug, and Cosmetic Act and Federal Trade Commission
Act.
4.6.3 - Income Claims
In their enthusiasm to enroll prospective
Consultants, some Consultants are occasionally tempted to
make income claims or earnings representations to demonstrate
the inherent power of party plan direct selling. This is counterproductive
because new Consultants may become disappointed very quickly
if their results are not as extensive or as rapid as the results
others have achieved. At Unimed Worldwide, we firmly believe
that the Unimed Worldwide 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 direct selling. While Consultants
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 Unimed
Worldwide as well as the Consultant making the claim unless
appropriate disclosures required by law are also made contemporaneously
with the income claim or earnings representation. Because
Unimed Worldwide Consultants do not have the data necessary
to comply with the legal requirements for making income claims,
a Consultant, when presenting or discussing the Unimed Worldwide
opportunity or Marketing and Compensation Plan to a prospective
Consultant, may not make income projections, income claims,
or disclose his or her Unimed Worldwide 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 Marketing and Compensation
Plan, and which are based solely on mathematical projections,
may be made to prospective Consultants, so long as the Consultant
who uses such hypothetical examples makes clear to the prospective
Consultant(s) that such earnings are hypothetical and provides
each prospective Consultant with a copy of the most current
income disclosure chart prepared by the Company. Until such
time as Unimed Worldwide publishes an official income disclosure
statement, Consultants may not use hypothetical income examples
in the promotion of their Unimed Worldwide businesses.
4.7 - Commercial Outlets and Sales
4.7.1 – Commercial Outlets
Unimed Worldwide strongly encourages
the retailing and selling of its products through person to
person contact via direct marketing and home, catalog and
online parties. In an effort to reinforce this method of marketing
and to help provide a standard of fairness for all Consultants,
Consultants may not display or sell Unimed Worldwide products
or literature in any retail or service establishment.
4.7.2 – Commercial Sales
Unimed Worldwide does not permit Consultants
to solicit or make commercial sales. For the purposes of these
Policies and Procedures, the term “commercial sale”
means the purchase, by a Consultant, of Unimed Worldwide products
which the Consultant intends to sell to a third party, who
in turn intends to resell the products to end consumers.
4.7.3 – Trade Shows, Expositions
and Other Sales Forums
Consultants may display and/or sell Unimed
Worldwide products at trade shows and professional expositions.
Before submitting a deposit to the event promoter, Consultants
must contact the Consultant Services Department in writing
for conditional approval, as Unimed Worldwide’s policy
is to authorize only one Unimed Worldwide business per event.
Final approval will be granted to the first Consultant who
submits an official advertisement of the event, a copy of
the contract signed by both the Consultant and the event official,
and a receipt indicating that a deposit for the booth has
been paid. Approval is given only for the event specified.
Any requests to participate in future events must again be
submitted to the Consultant Services Department. Unimed Worldwide
further reserves the right to refuse authorization to participate
at any function which it does not deem a suitable forum for
the promotion of its products or the Unimed Worldwide opportunity.
Approval is also required for swap meets, garage sales, flea
markets or farmer’s markets. Because these events may
not be conducive to the professional image Unimed Worldwide
wishes to portray but approval may be granted on a case by
case basis.
4.8 - Conflicts of Interest
4.8.1 - Nonsolicitation
Unimed Worldwide Consultants may participate
in other direct selling ventures or marketing opportunities
(including party plan, network marketing and multilevel marketing),
and Consultants may engage in selling activities related to
non-Unimed Worldwide products and services if they desire
to do so. However, if a Consultant elects to participate in
another direct selling opportunity, in order to avoid conflicts
of interest and loyalties, Consultants are prohibited from
Unauthorized Recruiting, which includes the following:
a) During the term of this agreement,
any actual or attempted recruitment or enrollment of Unimed
Worldwide Preferred Customers, Customers, or Consultants
for other direct selling business ventures, either directly
or through a third party. This includes, but is not limited
to, presenting or assisting in the presentation of other
direct selling ventures to any Unimed Worldwide Preferred
Customer, Customer, or Consultant, or implicitly or explicitly
encouraging any Unimed Worldwide Preferred Customer, Customer,
or Consultant to join other business ventures. Because there
is an extreme likelihood that conflicts will arise if a
Consultant participates in two or more direct selling programs,
it is the Consultant’s responsibility to first determine
whether a prospect is a Unimed Worldwide Preferred Customer,
Customer, or Consultant before recruiting or enrolling the
prospect for another direct selling venture.
b) Following the cancellation of this
Agreement, and for a period of twelve (12) months thereafter,
a former Consultant may not recruit any Unimed Worldwide
Consultant, Preferred Customer, or Customer for another
direct selling business if:
1) that Consultant, Preferred Customer
or Customer was in the former Consultant’s downline
marketing organization; or
2) the former Consultant met, developed
a relationship with, or gained knowledge of the Consultant,
Preferred Customer, or Customer by virtue of their mutual
participation in Unimed Worldwide.
c) Producing or offering any literature,
tapes or promotional material of any nature for another
direct selling business which is used by the Consultant
or any third person to recruit Unimed Worldwide Preferred
Customers, Customers, or Consultants for that business venture;
d) Selling, offering to sell, or promoting
any competing non-Unimed Worldwide products to Unimed Worldwide
Preferred Customers, Customers, or Consultants. Any product
in the same generic category as a Unimed Worldwide product
is deemed to be competing; e.g., Any spa or personal care
product is in the same generic category as Unimed Worldwide’s
products, and is therefore a competing product, regardless
of differences in cost, quality, or ingredients.
e) Offering Unimed Worldwide products
or promoting the Unimed Worldwide Marketing and Compensation
Plan, in conjunction with any non-Unimed Worldwide products,
services, business plan, opportunity, or incentive; or
f) Offering any non-Unimed Worldwide
products, services, business plan, opportunity, or incentive
at any Unimed Worldwide meeting, seminar, launch, convention,
or other Unimed Worldwide function, or immediately following
such event.
4.8.2 - Consultant Activity Reports
Consultant Activity Reports are available
for Consultant access and viewing at the Back Office of each
Consultant’s replicated Unimed Worldwide website. Access
to online Consultant Activity Reports is password protected.
All Consultant Activity Reports and the information contained
therein are confidential and constitute proprietary information
and business trade secrets belonging to Unimed Worldwide.
Consultant Activity Reports are provided to Consultants in
strictest confidence and are made available to Consultants
for the sole purpose of assisting Consultants in working with
their respective Downline Organizations in the development
of their Unimed Worldwide businesses. Consultants should use
their Consultant Activity Reports to assist, motivate, and
train their downline Consultants. The Consultant and Unimed
Worldwide agree that, but for this agreement of confidentiality
and nondisclosure, Unimed Worldwide would not provide Consultant
Activity Reports to the Consultant. A Consultant shall not,
on his or her own behalf, or on behalf of any other person,
partnership, association, corporation or other entity:
a) Directly or indirectly disclose any
information contained in any Consultant Activity Report
to any individual, partnership, association, corporation,
or other entity;
b) Directly or indirectly disclose,
to any individual, partnership, association, corporation,
or other entity, the password or other access code to his
or her Consultant Activity Report;
c) Use the information contained in
any Consultant Activity Report to compete with Unimed Worldwide
or for any purpose other than promoting or supporting his
or her Unimed Worldwide business; or
d) Recruit or solicit any Unimed Worldwide
Consultant, Preferred Customer or Customer listed on any
Consultant Activity Report for another direct selling venture
or marketing opportunity, or in any manner attempt to influence
or induce any such Consultant, Preferred Customer, or Customer
to alter his or her business relationship with Unimed Worldwide.
Upon demand by the Company, any current
or former Consultant will return any hard-copy original and
all copies of Consultant Activity Reports to the Company.
4.9 - Targeting Other Direct Sellers
Unimed Worldwide does not condone Consultants
specifically or consciously targeting the sales force of another
direct sales company to sell Unimed Worldwide products or to
become Consultants for Unimed Worldwide, nor does Unimed Worldwide
condone Consultants solicitation or enticement of members of
the sales force of another direct sales company to violate the
terms of their contract with such other company. Should Consultants
engage in such activity, they bear the risk of being sued by
the other direct sales company. If any lawsuit, arbitration
or mediation is brought against a Consultant alleging that he
or she engaged in inappropriate recruiting activity of its sales
force or customers, Unimed Worldwide will not pay any of Consultant’s
defense costs or legal fees, nor will Unimed Worldwide indemnify
the Consultant for any judgment, award, or settlement.
4.10 - Cross-Sponsoring
Actual or attempted Cross Sponsoring is
strictly prohibited. “Cross Sponsoring” is defined
as the enrollment of an individual who or entity that already
has a current Customer or Consultant Agreement on file with
Unimed Worldwide, or who has had such an agreement within the
preceding six calendar months, within a different line of sponsorship.
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. Consultants shall not demean, discredit
or defame other Unimed Worldwide Consultants in an attempt to
entice another Consultant to become part of the first Consultant’s
marketing organization. This policy shall not prohibit the transfer
of a Unimed Worldwide business in accordance with Section 4.26.
If Cross Sponsoring is discovered, it must
be brought to the Company’s attention immediately. Unimed
Worldwide may take disciplinary action against the Consultant
that changed organizations and/or those Consultants who encouraged
or participated in the Cross Sponsoring. Unimed Worldwide may
also move all or part of the offending Consultant’s downline
to his or her original downline organization if the Company
deems it equitable and feasible to do so. However, Unimed Worldwide
is under no obligation to move the Cross Sponsored Consultant’s
downline organization, and the ultimate disposition of the organization
remains within the sole discretion of Unimed Worldwide. Consultants
waive all claims and causes of action against Unimed Worldwide
arising from or relating to the disposition of the Cross Sponsored
Consultant’s downline organization.
4.11 - Errors or Questions
If a Consultant has questions about or
believes any errors have been made regarding commissions, bonuses,
Consultant Activity Reports, or charges, the Consultant must
notify Unimed Worldwide in writing within 60 days of the date
of the purported error or incident in question. Unimed Worldwide
will not be responsible for any errors, omissions or problems
not reported to the Company within 60 days.
4.12 - Excess Inventory Purchases Prohibited
The Unimed Worldwide Marketing and Compensation
Plan is based on the party plan sales method through which orders
for products are solicited at home parties, catalog parties
and online parties, and products are shipped directly to the
customers or shipped to the Consultant or party hostess for
delivery to customers. Therefore, Consultants are not required
to carry inventory of products. To ensure that Consultants are
not encumbered with excess inventory that they are unable to
sell, such inventory may be returned to Unimed Worldwide upon
the Consultant’s cancellation pursuant to the terms of
Section 8.2.
Unimed Worldwide strictly prohibits the
purchase of products in unreasonable amounts primarily for the
purpose of qualifying for commissions, bonuses or advancement
in the Marketing and Compensation Plan. Consultants may not
purchase more inventory than they can reasonably use in a month
nor may they encourage others to do so. Consultants are prohibited
from purchasing more than $300.00 in products per month for
personal use or kit replenishment unless they provide Unimed
Worldwide with other written reason why such a purchase is necessary.
4.13 - Governmental Approval or Endorsement
Neither federal nor state regulatory agencies
or officials approve or endorse any direct selling or network
marketing companies or programs. Therefore, Consultants shall
not represent or imply that Unimed Worldwide or its Marketing
and Compensation Plan have been "approved," "endorsed"
or otherwise sanctioned by any government agency.
4.14 - Holding Applications or Orders
Consultants must not manipulate enrollments
of new applicants and purchases of products. All Consultant
Applications and Agreements must be sent to Unimed Worldwide
within 72 hours from the time they are signed by an Applicant.
All home party orders must be sent to Unimed Worldwide within
five days from the date of the home party. Catalog parties may
not remain open more for than 14 days, and all orders from these
parties must be submitted within five days of the closing date.
Online parties may not remain open for more than 14 days.
4.15 - Identification
All Consultants are required to provide
their Social Security Number, Social Insurance Number, or a
Federal Employer Identification Number to Unimed Worldwide on
the Consultant Application and Agreement. Upon enrollment, the
Company will provide a unique Consultant Identification Number
(CIN) to the Consultant by which he or she will be identified.
This number will be used to place orders, and track commissions
and bonuses.
4.16 - Income Taxes
Each Consultant is responsible for paying
local, state, provincial, and federal taxes on any income generated
as an Independent Consultant. If a Unimed Worldwide business
is tax exempt, the Federal tax identification number must be
provided to Unimed Worldwide. Every year, Unimed Worldwide will
provide an IRS Form 1099 MISC (Non-employee Compensation) earnings
statement to each U.S. resident 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.
4.17 - Independent Contractor Status
Consultants are independent contractors,
and are not purchasers of a franchise or a business opportunity.
The agreement between Unimed Worldwide and its Consultants does
not create an employer/employee relationship, partnership, or
joint venture between the Company and the Consultant. Consultants
shall not be treated as an employee for his or her services
or for Federal or State tax purposes. All Consultants are responsible
for paying local, state, and federal taxes due from all compensation
earned as a Consultant of the Company. Unimed Worldwide is not
responsible for withholding, and shall not withhold or deduct
from a Consultant’s bonuses and commissions, if any, FICA
or taxes of any kind, unless withholding becomes legally required.
The Consultant has no authority (expressed or implied), to bind
the Company to any obligation. Consultants are not authorized
to and will not incur any debt, expense, obligation, or open
any checking account on behalf of, for, or in the name of Unimed
Worldwide. Each Consultant agrees that he or she shall control
the manner and means by which he or she operates his or her
Unimed Worldwide business, and shall establish his or her own
goals, hours, and methods of sale, subject to compliance with
these Policies and Procedures and applicable law. Each Consultant
shall be solely responsible for paying all expenses incurred,
including but not limited to travel, food, lodging, secretarial,
office, long distance telephone, and other expenses.
4.18 - Insurance
4.18.1 - Business Pursuits Coverage
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 inventory or 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.
4.18.2 - Product Liability Coverage
Unimed Worldwide maintains insurance
to protect the Company and Consultants against product liability
claims. Unimed Worldwide’s insurance policy contains
a “Vendors Endorsement” which extends coverage
to Independent Consultants so long as they are marketing Unimed
Worldwide products in accordance with Company Policies and
applicable laws and regulations. Unimed Worldwide’s
product liability policy does not extend coverage to claims
or actions that arise as a result of a Consultant’s
misconduct in marketing the products.
4.18.3 - Commercial General Liability
Coverage
Consultants who attain the Rank of Unit
Director shall during the term of their Consultant Agreement
maintain, at their sole cost, Commercial General Liability
Insurance in an amount not less then One Million Dollars ($1,000,000.00)
per occurrence and in the aggregate. This policy must include
coverage for bodily injury, personal injury and property damage
claims caused by or occurring in connection with the Consultant’s
operation of his or her business, including the Unit Director’s
Premises. Unimed Worldwide and Unimed Worldwide’s directors,
officers, employees, and agents are to be added as additional
insureds under the terms of the policy.
Unimed Worldwide may periodically increase
the amounts and types of coverage required under the terms
of this Agreement to reflect inflation, identification of
new risks, changes in law or standards of liability, higher
damage awards or other relevant changes in circumstances.
The Consultant’s insurance policies must be primary
and non-contributory to any similar policies maintained by
Unimed Worldwide. Each policy must give Unimed Worldwide thirty
(30) days prior written notice of cancellation, nonrenewal
and/or material modification. A certificate of insurance documenting
the required coverages shall be sent to Unimed Worldwide,
LLC annually.
4.19 - International Marketing
Because of critical legal and tax considerations,
Unimed Worldwide must limit the resale of Unimed Worldwide products,
and the presentation of the Unimed Worldwide business to prospective
customers and Consultants located within the United States,
U.S. Territories, and those countries in which Unimed Worldwide
is operating, as announced in official Unimed Worldwide literature.
Moreover, allowing a few Consultants to conduct business in
markets not yet opened by Unimed Worldwide would violate the
concept of affording every Consultant the equal opportunity
to expand internationally.
Accordingly, Consultants are authorized
to sell Unimed Worldwide products, and enroll Consultants only
in the countries in which Unimed Worldwide is authorized to
conduct business, as announced in official Company literature.
Unimed Worldwide products or sales aids cannot be shipped into
or sold in any foreign country. Consultants may sell, give,
transfer, or distribute Unimed Worldwide products or sales aids
only in their home country. In addition, no Consultant may,
in any unauthorized country: (a) conduct sales, enrollment or
training meetings; (b) enroll or attempt to enroll potential
customers or Consultants; or (c) conduct any other activity
for the purpose of selling Unimed Worldwide products, establishing
a marketing organization, or promoting the Unimed Worldwide
opportunity.
4.20 - Adherence to Laws and Ordinances
4.20.1 - Local Ordinances
Many cities and counties have laws regulating
certain home-based businesses. In most cases these ordinances
are not applicable to Consultants because of the nature of
their business. However, Consultants must obey those laws
that do apply to them. If a city or county official tells
a Consultant that an ordinance applies to him or her, the
Consultant shall be polite and cooperative, and immediately
send a copy of the ordinance to the Compliance Department
of Unimed Worldwide. In most cases there are exceptions to
the ordinance that may apply to Unimed Worldwide Consultants.
4.20.2 - Compliance With Federal, State,
Local Laws
Consultants shall comply with all federal,
state, and local laws and regulations in the conduct of their
businesses.
4.21 - Minors
A person who is recognized as a minor in
his or her state of residence may not be a Unimed Worldwide
Consultant. Consultants shall not enroll or recruit minors into
the Unimed Worldwide program.
4.22 - One Unimed Worldwide Business per
Consultant and per Household
A Consultant may operate or have an ownership
interest, legal or equitable, as a sole proprietorship, partner,
shareholder, trustee, or beneficiary, in only one Unimed Worldwide
business. No individual may have, operate or receive compensation
from more than one Unimed Worldwide business. Individuals of
the same family unit may not enter into or have an interest
in more than one Unimed Worldwide Business. A “family
unit” is defined as spouses and dependent children living
at or doing business at the same address.
In order to maintain the integrity of the
Unimed Worldwide Marketing and Compensation Plan, husbands and
wives or common-law couples (collectively “spouses”)
who wish to become Unimed Worldwide Consultants must be jointly
enrolled as one Unimed Worldwide business. Spouses, regardless
of whether one or both are signatories to the Consultant Application
and Agreement, may not own or operate any other Unimed Worldwide
business, either individually or jointly, nor may they participate
directly or indirectly (as a shareholder, partner, trustee,
trust beneficiary, or any other legal or equitable ownership)
in the ownership or management of another Unimed Worldwide business
in any form.
An exception to the one business per Consultant
rule will be considered on a case-by-case basis if two Consultants
marry or in cases of a Consultant receiving an interest in another
business through inheritance. Requests for exceptions to policy
must be submitted in writing to the Consultant Services Department.
4.22.1 - Actions of Household Members
or Affiliated Individuals
If any member of a Consultant’s
immediate household engages in any activity, which, if performed
by the Consultant, would violate any provision of the Agreement,
such activity will be deemed a violation by the Consultant
and Unimed Worldwide may take disciplinary action pursuant
to the Statement of Policies against the Consultant. Similarly,
if any individual associated in any way with a corporation,
partnership, trust or other entity (collectively “affiliated
individual”) violates the Agreement, such action(s)
will be deemed a violation by the entity, and Unimed Worldwide
may take disciplinary action against the entity.
4.23 - Re-packaging and Re-labeling Prohibited
Consultants may not re-package, re-label,
refill or alter the labels on any Unimed Worldwide products,
information, materials or programs in any way. Unimed Worldwide
products must be sold in their original containers only. Such
re-labeling or repackaging would violate federal and state laws,
which could result in severe criminal penalties. You should
also be aware that civil liability can arise when, as a consequence
of the repackaging or re-labeling of products, the persons using
the products suffer any type of injury or their property is
damaged.
4.24 - Requests for Records
Any request from a Consultant for copies
of invoices, applications, Consultant Activity reports, or other
records will require a fee of $1.00 per page per copy. This
fee covers the expense of mailing and time required to research
files and make copies of the records.
4.25 - No Roll-up of Marketing Organization
When a vacancy occurs in a Marketing Organization
due to the termination of a Unimed Worldwide business, roll-up
shall not occur. That business position will remain open unless
approval is granted by Unimed Worldwide for that business position
to be sold under the provisions of section 4.26.
4.26 - Sale, Transfer or Assignment of a
Unimed Worldwide Business
A Consultant may not assign any rights
or delegate any duties under the Consultant Agreement without
the prior written consent of Unimed Worldwide. Any attempt to
transfer or assign a Unimed Worldwide business without the express
written consent of Unimed Worldwide will render the Consultant
Agreement voidable at the option of Unimed Worldwide. Therefore,
although a Unimed Worldwide business is a privately owned, independently
operated business, the sale, transfer or assignment of a Unimed
Worldwide business is subject to certain limitations. If a Consultant
wishes to sell his or her Unimed Worldwide business, he or she
must first offer the business to the Company as set forth in
Section 4.26.1 below. If the Company elects not to purchase
the selling Consultant’s business, the selling Consultant
must receive written authorization from the Company. In order
to sell, transfer or assign a Unimed Worldwide business, the
following criteria must be met:
a) Protection of the existing line of
sponsorship must always be maintained so that the Unimed Worldwide
business continues to be operated in that line of sponsorship.
b) The buyer or transferee must be (or
must become) a qualified Unimed Worldwide Consultant. If the
buyer is an active Unimed Worldwide Consultant, he or she
must first terminate his or her Unimed Worldwide business
simultaneously with the purchase, transfer, assignment or
acquisition of any interest in the new Unimed Worldwide business.
c) Before the sale, transfer or assignment
can be finalized and approved by Unimed Worldwide, any debt
obligations the selling Consultant has with Unimed Worldwide
must be satisfied.
d) The selling Consultant must be in good
standing and not in violation of any of the terms of the Agreement
in order to be eligible to sell, transfer or assign a Unimed
Worldwide business.
e) If all above conditions are met, the
buyer must pay a transfer fee to Unimed Worldwide for processing
and downline recording. The fee is $90.00 for business positions
below Unit Director. The fee is $300.00 for business positions
of Unit Director and above.
Prior to selling a Unimed Worldwide business,
the selling Consultant must notify the Consultant Services Department
of his or her intent to sell the Unimed Worldwide business.
Upon complete execution of the purchase and sale agreement,
the parties must submit copies of the same to the Consultant
Services Department for review. Unimed Worldwide reserves the
right to request additional documentation that may be necessary
to analyze the transaction between the buyer and seller. The
Consultant Services Department will, in its sole and absolute
discretion, approve or deny the sale, transfer or assignment
within 30 days after its receipt of all necessary documents
from the parties.
If the parties fail to obtain Unimed Worldwide’s
approval for the transaction, the transfer shall be voidable
at the Company’s option. The purchaser of the existing
Unimed Worldwide business will assume the obligations and position
of the selling Consultant. A Consultant who sells his or her
Unimed Worldwide business shall not be eligible to re-apply
as a Unimed Worldwide Consultant for a period of at least six
full calendar months after the date of the sale.
No changes in line of sponsorship can result
from the sale or transfer of a Unimed Worldwide business. A
Consultant may not sell, transfer or assign individual business
centers; if a business is sold, transferred or assigned, all
business centers must be included in the transaction.
4.26.1 - Right of First Refusal
If a Consultant desires to sell his or
her Unimed business, Consultant agrees that Unimed must be
given the first right and option, in writing and sent via
certified mail/return receipt requested, to purchase the business.
If the Company fails to notify the selling Consultant of its
intention to purchase the business within 10 business days
after its receipt of the selling Consultant’s notice
of intent to sell, the selling Consultant may proceed with
the sale to a third party willing to purchase the existing
business upon the same terms provided in the offer to the
Unimed, provided, however, that the Company has otherwise
approved the proposed sale transaction and all of the requirements
set forth in Section 4.26 have been satisfied.
In the event the business is sold to a
third party and not to Unimed, the buyer, transferee or assignee
must complete a Consultant Agreement (unless he or she is
a current Unimed Consultant) and must possess reasonable ability
to satisfactorily perform the obligations of a Unimed Consultant
who is of the same rank or status as the selling Consultant.
Upon complete execution of the purchase
and sale agreement, and the new Consultant Agreement, the
parties must submit copies of the same to the Consultant Services
Department for review and approval. Unimed reserves the right
to request additional documentation that may be necessary
to analyze the transaction between the buyer and seller. The
Consultant Services Department will approve or deny the sale,
transfer or assignment within 30 days after its receipt of
all necessary documents from the parties.
If the seller sells, transfers or assigns
or attempts to sell, transfer or assign his or her business
upon terms different than those set forth in the offer to
the Company, such transfer shall be voidable at the Company’s
option. Further, if the parties fail to obtain Unimed’s
approval for the transaction, the transfer shall be voidable
at Unimed’s option. The purchaser of the existing business
will assume the obligations and position of the selling Consultant.
A Consultant who sells his or her business shall not be eligible
to re-apply as a Unimed Consultant for a period of at least
six full calendar months after the sale.
4.27 - Separation of a Unimed Worldwide
Business
Unimed Worldwide Consultants sometimes
operate their Unimed Worldwide businesses as husband-wife partnerships,
regular partnerships, corporations, or trusts. At such time
as a marriage may end in divorce or a corporation, partnership
or trust (the latter three entities are collectively referred
to herein as “entities”) may dissolve, arrangements
must be made to assure 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 sponsorship.
If the separating parties fail to provide for the best interests
of other Consultants and the Company, Unimed Worldwide will
involuntarily terminate the Consultant Agreement.
During the pendency of a divorce or entity
dissolution, the parties must adopt one of the following methods
of operation:
a) One of the parties may, with consent
of the other(s), operate the Unimed Worldwide business pursuant
to an assignment in writing whereby the relinquishing spouse,
shareholders, partners or trustees authorize Unimed Worldwide
to deal directly and solely with the other spouse or non-relinquishing
shareholder, partner or trustee.
b) The parties may continue to operate
the Unimed Worldwide business jointly on a “business-as-usual”
basis, whereupon all compensation paid by Unimed Worldwide
will be paid in the joint names of the Consultants or in the
name of the entity to be divided as the parties may independently
agree between themselves.
c) If the parties cannot mutually agree
on how the business shall be allocated during the pendency
of a divorce or dissolution, the Company shall treat the business
according to the status quo as existed prior to the filing
of the divorce or dissolution.
Under no circumstances will the Downline
Organization of divorcing spouses or a dissolving business entity
be divided. Similarly, under no circumstances will Unimed Worldwide
split commission and bonus checks between divorcing spouses
or members of dissolving entities. Unimed Worldwide will recognize
only one Downline Organization and will issue only one commission
check per Unimed Worldwide business per commission cycle. Commission
checks 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, the Consultant Agreement shall
be involuntarily canceled.
If a former spouse or a former entity affiliate
has completely relinquished all rights in their original Unimed
Worldwide business, they are thereafter free to enroll under
any Sponsor of their choosing, so long as they meet the waiting
period requirements set forth in Section 4.5.4. In such case,
however, the former spouse or partner shall have no rights to
any Consultants in their former organization or to any former
Retail Customer, Preferred Customer, or Customer. They must
develop the new business in the same manner as would any other
new Consultant.
4.28 - Sponsoring and Enrolling
All active Consultants in good standing
have the right to enroll others into Unimed Worldwide. Each
prospective Consultant has the ultimate right to choose his
or her own Enroller. If two Consultants claim to be the Enroller
of the same new Consultant, the Company shall regard the first
application received by the Company as controlling. When an
applicant enrolls, he or she likewise has the right to choose
the Sponsor of his or her choice.
4.29 - Succession
Upon the death or incapacitation of a Consultant,
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, a Consultant should consult
an attorney to assist him or her in the preparation of a will
or other testamentary instrument. Whenever a Unimed Worldwide
business is transferred by a will or other testamentary process,
the beneficiary acquires the right to collect all bonuses and
commissions of the deceased Consultant’s marketing organization
provided the following qualifications are met. The successor(s)
must:
a) Execute a new Consultant Agreement;
b) Comply with terms and provisions of
the Agreement; and
c) Meet all of the qualifications for
the deceased Consultant’s status.
Bonus and commission checks of a Unimed
Worldwide business transferred pursuant to this section will
be paid in a single check jointly to the devisees. The devisees
must provide Unimed Worldwide with an “address of record”
to which all bonus and commission checks will be sent. If the
business is bequeathed to joint devisees, they must form a business
entity and acquire a federal taxpayer Identification number.
Unimed Worldwide will issue all bonus and commission checks
and one IRS Form 1099 to the business entity.
4.29.1 - Transfer Upon Death of a Consultant
To effect a testamentary transfer of
a Unimed Worldwide business, the successor must provide the
following to Unimed Worldwide:
(1) an original death certificate;
(2) a notarized copy of the will or
other instrument establishing the successor’s right
to the Unimed Worldwide business; and
(3) a completed and executed Consultant
Agreement.
4.29.2 - Transfer Upon Incapacitation of a Consultant
To effect a transfer of a Unimed Worldwide
business because of incapacity, the successor must provide
the following to Unimed Worldwide:
(1) a notarized copy of an appointment
as trustee;
(2) a notarized copy of the trust document
or other documentation establishing the trustee’s
right to administer the Unimed Worldwide business; and
(3) a completed Consultant Agreement
executed by the trustee.
4.30 - Telemarketing
The Federal Trade Commission and the Federal
Communications Commission each have laws that restrict telemarketing
practices. Both federal agencies (as well as a number of states)
have “do not call” regulations as part of their
telemarketing laws. While you may not consider yourself a “telemarketer”
in the traditional sense of the word, these 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 $11,000.00 per violation).
Therefore, Consultants must not engage in
telemarketing relative to the operation of their Unimed Worldwide
businesses. The term “telemarketing” means the placing
of one or more telephone calls to an individual or entity to
induce the purchase of a Unimed Worldwide product, or to recruit
them for the Unimed Worldwide opportunity. “Cold calls"
made to prospective customers or Consultants that promote either
Unimed Worldwide's products or the Unimed Worldwide opportunity
constitute telemarketing and are prohibited. However, a telephone
call(s) placed to a prospective customer or Consultant (a "prospect")
is permissible under the following situations:
• If the Consultant has an established
business relationship with the prospect. An “established
business relationship” is a relationship between a Consultant
and a prospect based on the prospect’s purchase, rental,
or lease of goods or services from the Consultant, or a financial
transaction between the prospect and the Consultant, within
the eighteen (18) months immediately preceding the date of
a telephone call to induce the prospect's purchase of a product
or service.
• The prospect’s personal
inquiry or application regarding a product or service offered
by the Consultant, within the three (3) months immediately
preceding the date of such a call.
• If the Consultant receives written
and signed permission from the prospect authorizing the Consultant
to call. The authorization must specify the telephone number(s)
which the Consultant is authorized to call.
• You may call family members, personal
friends, and acquaintances. An “acquaintance”
is someone with whom you have at least a recent first-hand
relationship (i.e., you have recently personally met him or
her). Bear in mind, however, that if you make a habit of “card
collecting” with everyone you meet and subsequently
calling him or her, the FTC may consider this a form of telemarketing
that is not subject to this exemption. Thus, if you engage
in calling “acquaintances,” you must make such
calls on an occasional basis only and not make this a routine
practice.
In addition, Consultants shall not use automatic
telephone dialing systems relative to the operation of their
Unimed Worldwide 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.
