NetLeaders Policies and Procedures

SECTION 1 - CODE OF ETHICS

CL Singapore Pte Ltd., a Singapore corporation, operating as NetLeaders (hereafter “NetLeaders” or the “Company”) has established a network of Advocates and customers and has made a commitment to provide the finest direct sales experience backed by impeccable service to its Independent Advocates and customers. The Company, therefore, expects NetLeaders Independent Advocates to reflect that image in their relationships with Customers and fellow Advocates. All references hereunder to NetLeaders will include the Company and NetLeaders, jointly and severally.

As a NetLeaders Independent Advocate you are expected to operate your business according to the highest standards of integrity and fair practice in your role as a NetLeaders Advocate. Failure to comply with the Code of Ethics can result in your termination as a NetLeaders Advocate. The Code of Ethics, therefore, states:

As an Independent Advocate:
  • I will conduct my business in an honest, ethical manner at all times.
  • I will make no representations about the income benefits of being an Advocate with NetLeaders or the benefits of the NetLeaders products other than those contained in officially-approved Company literature.
  • I will provide support and encouragement to my Customers and other Advocates to ensure that their experience with NetLeaders is a successful one.
  • I will motivate and actively work with Advocates in my downline organization to help them build their NetLeaders business. I understand that this support is critical to everyone’s success with NetLeaders.
  • I will refrain from making income claims, exaggerating my personal income or the income potential in general and will stress to everyone the level of effort and commitment required to succeed in the business.
  • I will not abuse the goodwill of my association with NetLeaders to further or promote other business interests (particularly those which may be competitive to NetLeaders) without the prior written consent of NetLeaders.
  • I will not make disparaging remarks about other products, services, distributors, or companies; likewise, I will not willfully denigrate the activities or personalities of fellow NetLeaders Advocates.
  • I will abide by all of the Policies and Procedures of NetLeaders as included herein, or as may be amended from time to time.
  • I will not make any payment(s) or promise to pay any prospective or existing Advocate in return for such enrollment, continued enrollment, or team building or recruiting activities with NetLeaders.

SECTION 2 - INTRODUCTION

2.1 - Policies and Compensation Plan Incorporated into Advocate Agreement

These Policies and Procedures, in their present form and as amended at the sole discretion of NetLeaders, are incorporated into, and form an integral part of, the NetLeaders Advocate Agreement. Throughout these Policies and Procedures, when the term “Agreement” is used, it collectively refers to the NetLeaders Advocate Application and Agreement Form, these Policies and Procedures and the NetLeaders Compensation Plan. These documents are incorporated by reference into the NetLeaders Advocate and Agreement (all in their current form and as may be amended by NetLeaders).

2.2 - Purpose of Policies

NetLeaders is a direct sales company that markets software licenses (“products”) through Independent Advocates. Independent Advocates have the ability to receive commissions and bonuses by selling NetLeaders products (see NetLeaders Compensation Plan). It is important to understand that your success and the success of your fellow Advocates depend on the integrity of those who market our products. To clearly define the relationship that exists between NetLeaders and the Advocates, and to explicitly set a standard for acceptable business conduct, NetLeaders has established the Agreement. NetLeaders Advocates are required to comply with all of the provisions set forth in the Agreement, which NetLeaders may amend at its sole discretion from time to time, as well as with all federal, state and local laws governing their NetLeaders business and their conduct. Because you may be unfamiliar with many of these standards of practice, it is very important that you read and abide by the Agreement. Please review the information in this document carefully. It explains and governs the relationship between you, as an independent contractor, and the Company. If you have any questions regarding any policy or rule, do not hesitate to seek an answer from the NetLeaders corporate office.

2.3 - Changes to the Agreement

Because laws and the business environment periodically change, NetLeaders reserves the right to amend the Agreement, the products offered, the compensation plan, and the prices at the Company’s sole and absolute discretion. By signing the Agreement, Advocates agree to abide by all amendments or modifications that NetLeaders elects to make. Amendments shall be effective 30 days after publication of notice of amendments. The Company shall provide or make available to all Advocates a complete copy of the amended provisions by one or more of the following methods: (a) posting on the Company’s official website; (b) electronic mail (e-mail); (c) inclusion in Company periodicals; (d) inclusion with commissions or bonus checks; or (e) special mailings. The continuation of your NetLeaders business or your acceptance of bonuses or commissions constitutes acceptance of any and all amendments.

2.4 - Delays

NetLeaders 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, government decrees or orders, and acts of God.

2.5 - Policies and Provisions Severable

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.

2.6 - Waiver

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 NetLeaders to exercise any right or power under the Agreement or to insist upon strict compliance 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 NetLeaders’ right to demand exact compliance with the Agreement. Waiver by NetLeaders can be affected only in writing by an authorized officer of the Company. NetLeaders’ waiver of any particular breach by an Advocate shall not affect or impair NetLeaders’ rights with respect to any subsequent breach, nor shall it affect in any way the rights or obligations of any other Affiliate. Nor shall any delay or omission by NetLeaders to exercise any right arising from a breach affect or impair NetLeaders’ rights as to that or any subsequent breach. The existence of any claim or cause of action of an Advocate against NetLeaders shall not constitute a defense to NetLeaders’ enforcement of any term or provision of the Agreement.

SECTION 3 - BECOMING AN ADVOCATE

3.1 - Requirements to Become an Advocate

To become a NetLeaders Advocate, each applicant must:
  • 3.1.1 – Pay the one time Advocate Registration fee;
  • 3.1.2 – Be at least 18 years of age;
  • 3.1.3 – Reside in jurisdictions officially opened by the Company;
  • 3.1.4 – Have a valid Tax ID number; and
  • 3.1.5 – Submit an accepted NetLeaders Application and Agreement.

Newly approved IAs and IRs will receive a personalized e-commerce website, online training, and access to NetLeaders Independent Advocate support.

The Company reserves the right to reject any new or renewal applications. Please note, no product purchase is required to become an IA.

3.2 - Benefits

Once the Application and Agreement have been accepted by NetLeaders, the following benefits are available:
  • Market and sell NetLeaders products;
  • Participate in the NetLeaders Compensation Plan (receive bonuses and commissions, if eligible);
  • Sponsor other individuals as Advocates into the NetLeaders business and thereby, build a marketing organization and progress through NetLeaders Compensation Plan;
  • Receive periodic NetLeaders literature and other NetLeaders communications;
  • Participate in NetLeaders-sponsored support, service, training, motivational and recognition functions and events, upon payment of appropriate charges, if applicable; and
  • Participate in promotional incentives and programs sponsored by NetLeaders for its Advocates.

SECTION 4 - OPERATING A NETLEADERS BUSINESS

4.1 - Adherence to the NetLeaders Compensation Plan

Advocates must adhere to the terms of the NetLeaders Compensation Plan as set forth in official NetLeaders literature.

Advocates shall not offer the NetLeaders opportunity through, or in combination with, any other system, program or method of marketing other than that specifically set forth in official NetLeaders literature. Advocates shall not require or encourage others to participate in NetLeaders in any manner that varies from the program as set forth in official NetLeaders literature. Advocates shall not require or encourage others to execute any agreement or contract other than official NetLeaders agreements and contracts in order to become a NetLeaders Affiliate. Similarly, Advocates shall not require or encourage others to make any purchase from, or payment to, any individual or other entity to participate in the NetLeaders Compensation Plan other than those purchases or payments identified in official NetLeaders literature.

4.2 - Bonus Buying Prohibited

Bonus buying is strictly and absolutely prohibited. “Bonus buying” includes:
  • the enrollment of individuals without their knowledge and agreement and/or without execution of an Application;
  • the fraudulent enrollment of an individual as an Advocate;
  • the enrollment or attempted enrollment of non-existent individuals;
  • the use of a credit card by or on behalf of an Advocate or Customer when such individual is not the account holder of such credit card;
  • purchasing NetLeaders products on behalf of another, or under another ID number, to qualify for commissions or bonuses.

4.3 - Business Entities

A Partnership, LLC or Corporation may operate a NetLeaders business upon completion of the Application form, and providing on that form in the appropriate space, a Federal tax ID number. However, an individual may not participate in or have any beneficial interest in more than one (1) NetLeaders business of any kind. The person signing the application on behalf of a business entity must have the authority of said entity for entering into the transaction. In addition, by signing for as a business entity, you certify that no person with an interest of debt or equity in the business has had an interest in a NetLeaders business within six (6) months of the date of signature.

4.4 - Changes to a NetLeaders Business

4.4.1 - General

Each Advocate must immediately notify NetLeaders of all changes to the information contained in his or her Application and Agreement. Modifications to an existing Agreement can be made by submitting a written request and appropriate supporting documentation to NetLeaders.

4.4.2 - Change of Sponsor

To protect the integrity of all marketing organizations and safeguard the hard work of all Advocates, NetLeaders does not allow changes in sponsorship for active Advocates. Maintaining the integrity of sponsorship is critical for the success of every Advocate. Accordingly, the transfer of a NetLeaders business from one sponsor to another is not permitted.

Exception - A request for a change in sponsor, due to NetLeaders error, will be accepted within 30 days of the submission of the original Application and Agreement.

4.4.3 - Cancellation and Re-application

An Advocate may legitimately change organizations by:
  1. Voluntarily cancelling his or her NetLeaders Agreement and remaining inactive (i.e., no purchases of NetLeaders products; no sales of NetLeaders products; no sponsoring; no attendance at any NetLeaders functions, no participation in any other form of Advocate activity, and no operation of any other NetLeaders business for 6 full calendar months.
  2. Following the 6 calendar month period of inactivity, the former Advocate may reapply under a new sponsor. However the former Advocate will permanently lose any and all right to their former Downline organization. “Downline” shall mean the organization of Independent Advocates that enroll and are placed under any business.

4.5 - Unauthorized Claims and Actions

4.5.1 - Indemnification

Each Advocate is fully responsible for all of his or her verbal and written statements made regarding NetLeaders products, services, and the Compensation Plan that are not expressly contained in official NetLeaders materials. Advocates agree to indemnify NetLeaders and NetLeaders’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 NetLeaders as a result of any unauthorized representations or actions. This provision shall survive the termination of the Agreement.

4.5.2 - Income Claims and Marketing

In their enthusiasm to enroll prospective Advocates, some individuals are occasionally tempted to make income claims or earnings representations to demonstrate the inherent power of network marketing. This is counterproductive because new Advocates may become disappointed very quickly if their results are not as extensive or as rapid as the results others have achieved.

Moreover, many jurisdictions have laws or regulations that regulate or even prohibit certain types of income claims and testimonials made by persons engaged in network marketing. While Advocates may believe it is beneficial to provide copies of checks, or to disclose their earnings or others, such approaches have legal consequences that can negatively impact NetLeaders as well as the individual making the claim unless appropriate disclosures required by law are also made contemporaneously with the income claim or earnings representation. Because Advocates do not have the data necessary to comply with the legal requirements for making income claims, an Advocate may NOT make income projections, income claims or disclose his or her NetLeaders income (including, but not limited to, the showing of checks, copies of checks, bank statements or tax records).

When promoting the products and the tremendous opportunity NetLeaders offers, Advocates must use only the sales tools and support materials produced by NetLeaders. The Company has carefully designed its products, product labels, Compensation Plan and promotional materials to ensure that they are promoted in a fair, truthful manner; that they are substantiated and the material complies with the legal requirements of federal and state laws. Accordingly, Advocates must not produce their own literature, advertisements, sales tools, promotional materials, Internet Web pages, blogs, and/or social media pages.

4.5.3 – Product Claims

When promoting NetLeaders products, Advocates shall not make any verbal or written statement regarding the use—or potential use—of NetLeaders products other than those claims contained in official NetLeaders materials. Advocates agree to indemnify NetLeaders and NetLeaders’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 NetLeaders as a result of any such statements made by the Advocate.

4.6 - Conduct at NetLeaders Corporate Events

4.6.1 - No Selling or Recruiting at NetLeaders Events

Selling and recruiting at official NetLeaders corporate events is not permitted. These activities take away from the primary focus of the event, and can negatively reflect on the professional image of NetLeaders as a company. You may, however, offer a business card and/or catalog.

4.6.2 - No Selling or Recruiting for Other Companies at NetLeaders Events

NetLeaders Advocatesshall not sell any products or recruit for any business during NetLeaders events. This restriction most specifically applies to sales and recruitment efforts for any other direct sales or marketing program, regardless of the product category, including those that do not compete with NetLeaders’s product line.

4.7 - Conflicts of Interest

4.7.1 - Competition Policy

Advocates are free to participate in other multilevel or network marketing business ventures or marketing opportunities (collectively “network marketing”), with the exception of those products in the same generic category as NetLeaders products. Advocates may not display NetLeaders products with any other products or services in a fashion that might in any way confuse or mislead a prospective Customer or Advocate into believing there is a relationship between the NetLeaders and non-NetLeaders products or services.

4.7.2 – Non-solicitation

During the term of this Agreement, Advocates may not recruit other NetLeaders Advocates or Customers for any other network marketing business. Following the cancellation of this Agreement for any reason, and for a period of one year thereafter, a former Advocate may not recruit any NetLeaders Advocate or Customer for another network marketing business, with the exception of Advocates who are personally sponsored by the cancelled individual. All parities recognize that because network marketing is conducted through networks of independent contractors dispersed across the entire United States (or worldwide), and business is commonly conducted via the Internet and telephone, an effort to narrowly limit the geographic scope of this non-solicitation provision would render it wholly ineffective.

Therefore, the Advocates and Company agree that this non-solicitation provision shall apply to all markets in which NetLeaders conducts business.

s 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 NetLeaders Advocate or Customer to enroll or participate in another multilevel marketing, network marketing or direct sales opportunity.

4.7.3- Downline Activity (Genealogy) Reports

Downline Activity Reports, made available for Advocate and access and viewing through NetLeaders’s official website, are considered confidential. The Advocates 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 belonging to NetLeaders. Downline Activity Reports are provided to Advocates in the strictest of confidence and are made available to Advocates for the sole purpose of providing assistance in working with their Downline Organizations in the development of their NetLeaders business. Advocates should use their Downline Activity Reports to assist, motivate and train their Downline. But for this agreement of confidentiality and nondisclosure, NetLeaders would not provide Downline Activity Reports to the Advocates. An Advocate shall not, on his or her own behalf, or on behalf of any other person, partnership, association, corporation or other entity:
  • Directly or indirectly disclose any information contained in any Downline Activity Report to any third party;
  • Directly or indirectly disclose the password or other access code to his or her Downline Activity Report;
  • Use the information to compete with NetLeaders or for any purpose other than promoting his or her NetLeaders business;
  • Recruit or solicit anyone listed on any report or in any manner attempt to influence or induce anyone listed on any report to alter their business relationship with NetLeaders;
  • Use or disclose to any person, partnership, association, corporation or other entity any information contained in any Downline Activity Report.

Upon demand by the Company, any current or former Advocates will return the original and all copies of Downline Activity Reports to the Company.

4.8 - Cross-Sponsoring

Actual or attempted cross-sponsoring is strictly prohibited. “Cross-sponsoring” is defined as the enrollment of an individual or entity that is already a current Customer or Advocate of NetLeaders, or who has had such an agreement within the preceding 6 calendar months, within a different line of sponsorship. The use of a spouse or relative’s name, a straw man, trade names, assumed names or fictitious ID numbers to circumvent this policy is prohibited. Advocates shall not demean, discredit or defame other Advocates in an attempt to entice an Advocate to become part of the first Affiliate’s marketing organization. If a prohibited organization transfer occurs, NetLeaders shall take disciplinary action against the Advocates who engaged, acquiesced and/or knowingly participated in the improper cross-sponsoring. However, it shall be entirely within NetLeaders’ discretion where in the genealogical structure, the cross-sponsored organization in question shall be placed or otherwise distributed.

Because equities often exist in favor of both Upline organizations, Advocates and WAIVE ANY AND ALL CLAIMS AND CAUSES OF ACTION AGAINST THE COMPANY FOR ITS DECISION REGARDING THE FINAL DISPOSITION OR PLACEMENT OF THE CROSSSPONSORED ORGANIZATION. “Upline” shall mean the organization of Advocates enrolled and placed above any NetLeaders business.

4.9 - Errors or Questions

If you have questions about or believe any errors have been made regarding commissions, bonuses, Downline Activity Reports, or charges, you must notify the NetLeaders Support Department at support@netleaders.com, in writing, within 15 days of the date of the purported error or incident in question. NetLeaders will not be responsible for any errors, omissions or problems not reported to the Company within 15 days.

4.10 – Sales Aids Optional

Other than the materials provided to all Advocates at the time of enrollment (included with the enrollment fee), Advocates are not required to purchase or carry sales aids. Advocates who do so must make his or her own decision with regard to these matters. Absolutely no use of the NetLeaders name may be used on marketing materials, including any social media such as Facebook or Instagram. To ensure that Advocates are not encumbered with Company Sales Aids, such Sales Aids may be returned to NetLeaders upon cancellation pursuant to the terms of Section 8.2.

4.11 - Governmental Approval or Endorsement

No regulatory agencies or officials approve or endorse any direct selling program. Therefore, Advocates shall not represent or imply that NetLeaders or its Compensation Plan have been “approved,” “endorsed” or otherwise sanctioned by any government agency.

4.12 - Holding Applications or Enrollments

Advocates must not manipulate new enrollments or Customer orders. All New Applications and Agreements must be sent within 72 hours from the time they are signed by the prospective Advocate.

4.13 - Identification

All Advocates are required to provide their Tax Identification Number to NetLeaders on the Application and Agreement.

Upon enrollment, the Company will create a unique NetLeaders Username, with which the Advocate’s account will be associated. This Username will be used to place orders and track commissions and bonuses.

4.14 - Income Taxes

Each Advocate is responsible for paying local, state and federal taxes on any income generated. Every year, NetLeaders will provide reporting for those Advocates who (a) had earnings of over €600 in the previous calendar year or (b) made transfers or withdrawals during the previous calendar year in excess of €5,000.

4.15 - Independent Contractor Status

Advocates are independent contractors and are not purchasers of a franchise or a business opportunity. The agreement between NetLeaders and its Advocates does not create an employer/employee relationship, agency, partnership or joint venture. Advocates shall not be treated as an employee for his or her services or for federal or state tax purposes. All Advocates are responsible for paying local, state and federal taxes due from all compensation earned. Advocates have no authority (expressed or implied) to bind the Company to any obligation. Each Advocate shall establish his or her own goals, hours, and methods of sale, so long as he or she complies with the terms of the Agreement, these Policies and Procedures, and all applicable laws.

The name of NetLeaders and other names, as may be adopted by NetLeaders, are proprietary trade names, trademarks and service marks of NetLeaders. As such, these marks are of great value to NetLeaders and only to be used by Advocates in an expressly authorized manner. Use of the NetLeaders name on any item not produced by the Company is prohibited except as follows:

Your nameNetLeaders Independent Advocate

Advocates may list themselves as a “NetLeaders Independent Advocate” in the residential telephone directory (“white pages”) under their own name. Advocates may not place telephone directory display ads in the classified directory (“Yellow Pages”) using NetLeaders’s name or logo.

Advocates may not answer the telephone by saying “NetLeaders” or in any other manner that would lead the caller to believe that he or she has reached the corporate offices of the Company.

Advertising is not limited to print media; it also includes internet advertising and other forms of advertising. Advocates are prohibited from using an internet or email address that utilizes the trade name NetLeaders, or includes NetLeaders in a portion of the address. It is also prohibited for Advocates to use any website materials on a website that references or relates to NetLeaders that is not authorized in writing by NetLeaders. It is also prohibited for Advocates to place links to unauthorized websites or webpages onto a website or webpage that has been authorized by NetLeaders.

4.16 - Insurance

4.16.1 – Business Insurance Coverage

You may wish to arrange insurance coverage for your business. Your homeowner’s insurance policy may not cover business related injuries or the theft of or damage to your business. Contact your insurance agent to make sure that your business property is protected.

4.17 - International Marketing

Because of critical legal and tax considerations, Advocates are ONLY authorized to do business in the countries in which NetLeaders has announced are open for business in official Company literature.

4.18 - Laws and Ordinances

Advocates shall comply with all federal, state and local laws and regulations in the conduct of their businesses. Many cities and counties have laws regulating certain home-based businesses. In some cases these ordinances are not applicable to Advocates because of the nature of their business. However, Advocates must obey those laws that do apply to them. If a city or county official tells an Advocate that an ordinance applies to him or her, compliance is required.

4.19 - Minors

Advocates shall not enroll or recruit individuals under the age of 18 into the NetLeaders program.

4.20 - Actions of Household Members or Affiliated Individuals.

If any member of an Advocate’s household, family, or other affiliated individual engages in any activity that, if performed by the Advocate, would violate any provision of the Agreement, such activity will be deemed a violation by the Advocate and NetLeaders may take disciplinary action against the Advocate.

4.21 – No Limit on NetLeaders Accounts Per Person

There is currently now limit on the number of accounts that an Advocate can operate or have ownership interest.

4.22 - Requests for Records

Any request for copies of invoices, agreements, Downline activity reports or other records/reports 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.

4.23 - Sale, Transfer or Assignment of NetLeaders Business

4.23.1 – Although an NetLeaders business is a privately owned, independently operated business, the sale, transfer or assignment of an NetLeaders business, and the sale, transfer or assignment of an interest in a Business Entity that owns or operates an NetLeaders business, is subject to certain limitations. If an Advocate wishes to sell his or her NetLeaders business, or interest in a Business Entity that owns or operates a NetLeaders business, the following criteria must be met:

  • The selling party must offer NetLeaders the right of first refusal to purchase the business on the same terms as agreed upon with a third-party buyer. NetLeaders shall have fifteen (15) days from the date of receipt of the written offer from the seller to exercise its right of first refusal.
  • The buyer or transferee must be qualified to become an Advocate.
  • Before the sale, transfer or assignment can be finalized and approved by NetLeaders, any debt obligations the selling party has with NetLeaders must be satisfied.
  • The selling party 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 NetLeaders business.

Prior to selling a Business Entity interest, the selling party must notify NetLeaders’ Compliance Department in writing and advise of his or her intent to sell NetLeaders’ business or Business Entity interest. The selling party must also receive written approval from the Compliance Department before proceeding with the sale.

4.24 - Separation of a NetLeaders Business

In the event of a dissolution of marriage of a NetLeaders Advocate, and a spouse, arrangements must be made to assure that any division of the business assets 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 Advocates and the Company, NetLeaders may be forced to involuntarily terminate the Agreement.

4.24.1 - 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 be divided. Similarly, under no circumstances will NetLeaders split commission and bonus checks between divorcing spouses. NetLeaders will recognize only one Downline Organization and will issue only one commission check per NetLeaders business per commission cycle. Commission checks shall always be issued to the individual whose name appears on the Agreement.

4.25 - Sponsoring

All active Advocates in good standing have the right to sponsor and enroll others into NetLeaders. Each prospective Advocate has the ultimate right to choose his or her own sponsor. If two parties claim to be the sponsor of the same new applicant, the Company shall regard the first application received by the Company as controlling.

4.26 - Telemarketing

Many jurisdictions have laws that restrict telemarketing practices.

These jurisdictions also 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, Advocates must not engage in telemarketing relative to the operation of their NetLeaders businesses. The term “telemarketing” means the placing of one or more telephone calls to an individual or entity to induce the purchase of a NetLeaders product or service, or to recruit them for the NetLeaders opportunity. “Cold calls” made to prospective Customers or Advocates that promote either NetLeaders’ products or services or the NetLeaders opportunity constitute telemarketing and are prohibited. However, a telephone call(s) placed to a prospective Customer or Advocate (a “prospect”) is permissible under the following situations:
  • If the Advocate has an established business relationship with the prospect. An “established business relationship” is a relationship between an Advocate and a prospect based on the prospect’s purchase, rental or lease of goods or services from the Affiliate, or a financial transaction between the prospect and the Affiliate, within the 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 Advocate within the 3 months immediately preceding the date of such a call.
  • If the Advocate receives written and signed permission from the prospect authorizing the Advocate to call. The authorization must specify the telephone number(s) that the Advocate 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 them, 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, Advocates shall not use automatic telephone dialing systems relative to the operation of their NetLeaders 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.

SECTION 5 – RESPONSIBILITIES OF ADVOCATES

5.1 - Change of Address or Telephone

To ensure timely delivery of products, support materials and commission checks, it is critically important that NetLeaders' files are current. Advocates planning to move should email NetLeaders corporate office, at support@netleaders.com their new address and telephone numbers. To guarantee proper delivery, two-weeks advance notice to NetLeaders is recommended on all changes.

5.2 - Continuing Development Obligations

5.2.1 - Ongoing Training

Any Advocate who sponsors another individual into NetLeaders must perform a bona fide assistance and training function to ensure that his or her Downline is properly operating his or her NetLeaders business. Advocates must have ongoing contact and communication with the individuals in their Downline Organizations. 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 Advocates to NetLeaders meetings, training sessions, and other functions. Upline Advocates are also responsible to motivate and train new Advocates in NetLeaders product knowledge, effective sales techniques, the NetLeaders Compensation Plan and compliance with Company Policies and Procedures. Advocates cannot charge for training.

Upon request, every Advocate should be able to provide documented evidence to NetLeaders of his or her ongoing fulfillment of the responsibilities of a sponsor.

5.2.2 - Increased Training Responsibilities

As Advocates progress through the various levels of leadership, they will become more experienced in sales techniques, product knowledge and understanding of the NetLeaders program. They will be called upon to share this knowledge with lesser-experienced individuals within their organization.

5.2.3 - Ongoing Sales Responsibilities

Regardless of their level of achievement, Advocates have an ongoing obligation to continue to personally promote sales through the generation of new Customers and Advocates and through servicing their existing Customers and Advocates.

5.3 – Non-Disparagement

NetLeaders wants to provide its Advocates with the best products, compensation plan and service in the industry. Accordingly, we value your constructive criticisms and comments. All such comments should be submitted in writing to the NetLeaders corporate offices. While NetLeaders welcomes constructive input, negative comments and remarks made in the field by Advocates about the Company, its products or Compensation Plan serve no purpose other than to sour the enthusiasm of other NetLeaders Advocates. For this reason, and to set the proper example for their Downline, Advocates must not disparage, demean or make negative remarks about NetLeaders, other NetLeaders Advocates, NetLeaders’ products, the Compensation Plan or NetLeaders’ directors, officers or employees.

5.4 - Providing Documentation to Applicants

Advocates must provide the most current version of the Policies and Procedures and the Compensation Plan to individuals whom they are sponsoring to become Advocates before the applicant signs an Agreement. Additional copies of Policies and Procedures can be found on the NetLeaders website at www.netleaders.com, or in your business center under the forms section.

5.5 - Reporting Policy Violations

Advocates observing a policy violation by another individual should submit a written report of the violation directly to the attention of the NetLeaders Compliance Department. Details of the incident(s), such as dates, number of occurrences, persons involved and any supporting documentation, should be included in the report.

SECTION 6 - SALES REQUIREMENTS

6.1 - Product Sales

The NetLeaders Compensation Plan is based upon the sale of NetLeaders products to end user consumers. Advocates must fulfill personal and Downline organization 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.

6.2 - Sales

Sales of NetLeaders products through on-line classifieds or auction sites, such as Ebay or craigslist, are prohibited, without the expressed written consent of NetLeaders.

6.3 - Territory Restrictions

There are no exclusive territories granted to anyone. No franchise fees are required.

SECTION 7 - BONUSES AND COMMISSIONS

7.1 - Bonus and Commission Qualifications

Advocates in compliance with the Agreement and these Policies to qualify for bonuses and commissions. So long as an Advocate complies with the terms of the Agreement and these policies, NetLeaders shall pay commissions to such Advocates in accordance with the Compensation Plan. The minimum amount for which NetLeaders will issue a commission payment is $25.00. If bonuses and commissions do not equal or exceed $25.00, the Company will accrue the commissions and bonuses until they total $25.00. Commissions will be issued once $25.00 has been accrued.

7.2 - Commission Payments and Promotions

7.2.1 - Payments, Calculations, and Bonuses

Commissions will be calculated according to the level for which an Advocate actually satisfied all of the requirements according to the Compensation Plan rather than the highest rank or title achieved. Commission reports will be provided to Advocates on-line, via web access.

7.2.2 - Promotions

Promotions are determined based on business organization and sales activity for each applicable period.

7.3 - Reports

All information provided by NetLeaders in online Downline Activity Reports, including but not limited to personal and group sales volume (or any part thereof), and Downline sponsoring activity is believed to be accurate and reliable. Nevertheless, due to various factors, including the inherent possibility of human and mechanical error and the accuracy, completeness and timeliness of orders, the information is not guaranteed by NetLeaders or any persons creating or transmitting the information. All personal and group sales volume information is provided “as is” without warranties, expressed or implied, or representations of any kind whatsoever. In particular, but without limitation, there shall be no warranties of merchantability, fitness for a particular use or non-infringement.

To the fullest extent permissible under applicable law, NetLeaders and/or other persons creating or transmitting the information will in no event be liable to any Advocates, s or anyone else for any direct, indirect, consequential, incidental, special or punitive damages that arise out of the use of or access to personal and group sales volume information (including but not limited to lost profits, bonuses, or commissions, loss of opportunity and damages that may result from inaccuracy, incompleteness, inconvenience, delay or loss of the use of the information), even if NetLeaders or other persons creating or transmitting the information shall have been advised of the possibility of such damages. To the fullest extent permitted by law, NetLeaders or other persons creating or transmitting the information shall have no responsibility or liability to you or anyone else under any tort, contract, negligence, strict liability, products liability or other theory with respect to any subject matter of this agreement or terms and conditions related thereto.

Access to and use of NetLeaders’ online reporting services and your reliance upon such information is at your own risk. All such information is provided to you “as is.” If you are dissatisfied with the accuracy or quality of the information, your sole and exclusive remedy is to discontinue use of and access to NetLeaders’ online reporting services and your reliance upon the information.

SECTION 8 - DISPUTE RESOLUTION AND DISCIPLINARY PROCEEDINGS

8.1 - Disciplinary Sanctions

Violation of the Agreement, these Policies and Procedures or any illegal, fraudulent, deceptive or unethical business conduct by an Advocate may result, at NetLeaders’ discretion, in one or more of the following corrective measures:
  • Issuance of a written warning or admonition;
  • Requiring the Advocate to take immediate corrective measures;
  • Imposition of a fine, which may be withheld from bonus and commission checks;
  • Loss of rights to one or more bonus and commission checks;
  • The withholding of all or part of bonuses and commissions during the period that NetLeaders is investigating any conduct allegedly in violation of the Agreement. If an Advocate’s business is canceled for disciplinary reasons, they will not be entitled to recover any commissions withheld during the investigation period;
  • Suspension for one or more pay periods;
  • Involuntary termination of the offender’s Agreement;
  • Any other measure expressly allowed within any provision of the Agreement or that NetLeaders deems practicable to implement and appropriate to equitably resolve injuries caused partially or exclusively by the policy violation or contractual breach; or
  • In situations deemed appropriate by NetLeaders, the Company may institute legal proceedings.

8.2 - Grievances and Complaints

When an Advocate has a grievance or complaint with another Advocate regarding any practice or conduct in relationship to their respective NetLeaders businesses, the complaining party 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 Company. The Company will review the facts and determine if a policy violation has occurred and take appropriate action.

8.4 - Governing Law, Jurisdiction and Venue

Jurisdiction and venue of any matter shall reside in Singapore. The law of Singapore shall govern all other matters relating to or arising from the Agreement.

SECTION 9 - INACTIVITY AND CANCELLATION

9.1 - Effect of Cancellation

So long as an Advocate remains active and complies with the terms of the Agreement (and these Policies and Procedures), NetLeaders shall pay commissions to such individual in accordance with the Compensation Plan. Bonuses and commissions constitute the entire consideration for the all efforts in generating sales and all activities related to generating sales (including building a Downline Organization). Following termination for inactivity, or voluntary or involuntary termination the Agreement (all of these methods are collectively referred to as “termination”), the former Advocate shall have no right, title, claim or interest to the marketing organization that he or she operated, or any commission or bonus from the sales generated by the organization. An Advocate whose business is terminated will lose all rights as an Advocate. This includes the right to sell NetLeaders products and services and the right to receive future commissions, bonuses or other income resulting from the sales and other activities of the former Downline sales organization. In the event of termination, Advocates 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 termination, the former Advocate shall not hold himself or herself out as a NetLeaders Independent Advocate. Any individual terminated shall receive commissions and bonuses only for the last full pay period he or she was active prior to cancellation/termination (less any amounts withheld during an investigation preceding an involuntary termination).

9.2 - Involuntary Termination

A violation of any of the terms of the Agreement, including any amendments that may be made by NetLeaders in its sole discretion, may result in any of the sanctions listed above, including the involuntary termination of the Agreement. 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 or her attorney, or when the Advocate receives actual notice of termination, whichever occurs first.

9.3 - Voluntary Termination

An Advocate has a right to cancel, at any time, regardless of reason. Termination must be submitted in writing to the Company at its principal business address. The written notice must include the individual’s signature, printed name, address and NetLeaders Username. Advocates who have resigned may re-apply with NetLeaders after 6 months.

9.4 - Complete Agreement

These Policies and Procedures, any and all modifications made by the Company, along with the Application, Terms and Conditions and the Compensation Plan make up the entire agreement.

SECTION 10 - TRADING LIMITS

Software LicensePriceDaily Trading LimitPercentage
  • Softvare LicenseStandardPrice€ 100Daily Trading Limit€ 5Percentage5%
  • Softvare LicenseManagerPrice€ 500Daily Trading Limit€ 10Percentage2%
  • Softvare LicenseProPrice€ 2000Daily Trading Limit€ 25Percentage1.25%
  • Softvare LicenseExecutivePrice€ 5 000Daily Trading Limit€ 50Percentage1%
  • Softvare LicenseVice-PresidentPrice€ 12 500Daily Trading Limit€ 100Percentage0.80%
  • Softvare LicensePresidentPrice€ 25 000Daily Trading Limit€ 187.50Percentage0.75%
  • Softvare LicenseCEOPrice€ 50 000Daily Trading Limit€ 250Percentage0.50%
  • Softvare LicenseDirectorPrice€ 100 000Daily Trading Limit€ 500Percentage0.50%
  • Softvare LicenseChairmanPrice€ 250 000Daily Trading Limit€ 1 250Percentage0.50%