NATIONAL HOMEBASED BUSINESS, L.C.
POLICIES & PROCEDURES
National Homebased Business, L.C., hereinafter referred to as \”NHB\”, is a company marketing products through Independent Consultants.
INDEPENDENT CONSULTANT: An Individual, Company, Corporation, or Limited Liability Company (LLC) whose completed Independent Consultant Application/Order Form has been received and accepted by NHB. Upon acceptance by NHB, the applicant shall become an Independent Consultant for NHB, conducting business for his or her own account and not as an Agent or Employee of NHB.
An Individual, Company, Corporation, or Limited Liability Company (LLC) may fill out an Application to become an Independent Consultant by purchasing the Consultant Packet listed on the Consultants Application/Order Form. By endorsing the Order Form/Consultant Agreement and reading the reverse side of the Consultant Agreement, the Policy & Procedures and paying $39.95 plus tax when applicable, you will be authorized to start your business with NHB. You will be eligible to sign up other Consultants and purchase products at the Consultants discounted prices. These Consultants and their information become the property of NHB and will not be shared, sold or give out to any one person in the form of a down line report or genoloagy report. This will insure the protection of the Consultans information as well as the protection to you that some one will not be able to steal said Consultants and take them to another company.
RECORDKEEPING: NHB encourages all its Consultants to keep complete and accurate records of all their business dealings.
INVENTORY: Consultants are not required to maintain inventory, the products will be shipped by the authorized Vendors of NHB directly to the Consultant.
INCOME CLAIMS: Independent Consultants are not guaranteed a specific income. Financial success as an Independent Consultant can come only from sale of products, building his/her own sales organization and training that organization to sell, sponsor and train. A Consultant understands that financial reward is based on ability, personal effort and initiative.
PROMOTIONAL, HEALTH OR MEDICAL CLAIMS: NHB makes no health or medical claims concerning the products they market nor shall a Consultant make any health or medical claims concerning any products which are not expressly stated in Vendors official company literature. Excessive product claims can subject NHB to enforcement action by regulatory agencies. This endangers the business opportunity for all Consultants. Thus, all Consultants must comply with NHB policies regarding the content of promotional material created and/or used by Consultants. Noncompliance will result in enforcement action, which can include termination by NHB.
Disease-specific treatment, cure, or prevention claims MUST NOT be made in any materials, written, video, or audio.
One-on-one verbal testimonials MUST ONLY relate the speaker\’s PERSONAL experiences and MUST include an admonition that others may not experience the same results.
Third-party literature is material produced by individuals or entities NOT associated with NHB. Such material MUST NOT be attached to NHB literature in any way nor mailed with it. At meetings, such materials MUST NOT be displayed in close proximity to NHB literature.
RE-PACKAGING/RE-LABELING: Re-packaging, re-labeling, selling or attempting to sell NHB products under any other name shall constitute a termination of a Consultant\’s position.
MARRIAGE: NHB encourages married couples to operate as a single Independent Consultant. Either spouse may operate independently, but must have the same sponsor if either has become a Consultant during their marriage. When two NHB Consultants subsequently marry, each may maintain their separate Consultant status. Should a husband/wife divorce; they must notify the Company as to how the business is to be managed thereafter. Otherwise, NHB will consider the individual who was originally listed as Consultant on the Application to continue as a Consultant.
INCOME TAXES/LAW COMPLIANCE: Each Consultant shall become responsible for obtaining any licenses required by law in Consultant\’s locality. Consultant shall be responsible for the entire operation of his/her business, including payment of all income taxes, sales tax, social security, unemployment, and other taxes, etc. Consultants are responsible for the payment of any sales taxes to their state and local jurisdiction for any products sold by them. Because NHB Consultants are independent contractors and own their own business, NHB does not withhold any taxes from commission checks. At the end of the calendar year NHB will provide to the Consultants who have earned $600.00 or more in a calendar year a 1099 as required by law for reporting to the Internal Revenue Service (IRS).
GOVERNMENTAL ENDORSEMENT: Federal and state regulatory agencies do not approve or endorse direct selling programs. Therefore, Consultants may not represent or imply, directly or indirectly, that NHB program has been approved or endorsed by any governmental agency.
NHB reserves the right to accept or reject anyone as an Independent Consultant, Customer or Member at its own discretion. Only authorized NHB Consultants may sell products and/or services, sign up Consultants, Customers and participate in any NHB Business.
National Homebased Business reserves the right to terminate any Consultant position at any time when it is concluded that the Consultant has violated the provisions of the Consultant\’s Agreement, including the provisions of the Policies and Procedures. Consultants must not engage in any deceptive, unlawful, or unethical consumer or recruiting practices.
LEGAL AGE: Consultants shall be 18 years of age or the age at which a resident may enter into an agreement in the state where the Consultant resides. Consultants agree that they are Independent Consultants, responsible for their own business activities and not an agent, employee or legal representative of NHB. Consultants will not represent in any manner that they are an agent or representative of NHB, AND AGREE TO ABIDE BY ALL APPLICABLE FEDERAL AND STATE LAWS. Consultants are responsible for all liability, health, disability and workmen\’s compensation insurance. Consultants are not authorized to bind NHB nor incur any obligation on behalf of NHB.
MEMBER/CONSULTANT: A Member/Consultant is an individual, corporation, or limited liability company (LLC) who purchases a Membership for $39.95 from NHB.
IDENTIFICATION NUMBER: A Social Security Number or EIN will be used as an Identification Number when sponsoring new Consultants or placing product orders. Any Consultant operating as a Corporation or Partnership must provide NHB with a valid Tax Identification Number (TIN) and, in addition, must provide a valid Resale Tax Certificate in order to eliminate the charging of sales tax on product orders.
TERRITORIAL LIMITS: NHB recognizes no exclusive territories. Therefore, Consultants will not be limited at this time from conducting business in any state in the United States.
CHANGE OF ADDRESS: Consultants must report any change of address by sending written notice to the NHB Home Office. When mail is returned to NHB because NHB has not been informed of an address change, the Consultant is placed on inactive status. This means that when a Consultant’s commission checks and other NHB correspondence are returned after 60 days, Consultants will forfeit all commission checks and be considered inactive until NHB is notified of new address at which time commission checks will begin the following month.
SPONSOR: Individuals have the right to choose their sponsor. Occasionally, one or more Consultants may contact the same prospect, resulting in a dispute of the sponsoring rights. NHB will not mediate such disputes and will recognize as sponsor the person whose name appears on the application. In the event that two or more applications are received for the same person, the one received first by NHB will be recognized. Once an application has been submitted to NHB, no sponsor changes are permitted.
Sponsors must offer support, information, and assistance, as well as bona fide supervisory, marketing, selling, and training support. Such supervision may include, but is not limited to newsletters, written correspondence, personal meetings, telephone contact, and training sessions.
INDUCEMENTS TO SELECT A DIFFERENT SPONSOR: Notwithstanding the rights to sponsor policy, it is against Company policy to recruit an individual who was sent to a Company meeting by another person. NHB meetings are open to all interested parties. Consultants must feel secure when sending prospects to these meeting.
STACKING: Consultants are not allowed to stack their organizations by sponsoring unreal people, their minor children and etc.
ANNUAL RENEWALS: There is an annual renewal fee of $39.95 for each Member/Consultant. This will help cover the cost of newsletters, bulletins, commission checks and home office support. Consultant agreements are to be renewed annually on the anniversary date of the original agreement, unless otherwise notified by NHB. Renewal forms will be sent out by mail or e-mail. This will be sent out to Member/Consultant prior to anniversary date, and must be returned with current renewal fee, on or before their anniversary date. Failure to return Consultant renewal agreement will stop all commissions from being paid to Consultant. All Consultants commissions will be forfeited until renewal fee is paid. If renewal fee is past due and is paid at a later date, the Consultant must have renewal fee paid and purchase $28.00 worth of products. It must be entered in NHB\’s data base before midnight on the last business day of the month before commission checks begin the next month. All commissions that would have been paid to the Consultant will be forfeited, but will resume when renewal fee and $28.00 worth of products are puchased.
MARKETING STRATEGY: As a Consultant you must follow the recommended marketing strategy. You may sign up Consultants to help your Customer base grow. NHB\’s computer will assign the first two Consultants as Customers and the next two Consultants as Salespeople. This format will be followed as you continue to sign up new Consultants. For more information refer to the Compensation Plan. It will be very important for you to train and work with your Consultants to have a successful home based business. Also NHB reserves the right to alter or change this marketing strategy from time to time as needed.
COMMISSION: Consultants will receive a 12.5% commission on all purchases made by their Customers and Salespeople each month. NHB will mail commission checks after the 1st and 15th of each month. The deadline for all orders to be credited as sales made in any given month is the last business day of the month. In order to receive commission checks a Consultant must purchase a minimum of $28.00 of product from NHB before the last day of the month. Therefore when you purchase the minimum amount of products during a given month it allows you to receive commission checks the following month. NHB will not send a commission check for less than $20.00. NHB will hold that commission if less than $20.00 until $20.00 has accrued, then NHB will send the commission checks for the total amount. Commissions to a Consultant are only paid when their Customers and Salespeople purchase products. NHB does not pay commissions to Consultants for recruiting or signing up Customers or Salespeople. It is up to the Consultant to make clear to their Consultants that NHB only pays commission on products that are purchased and not on signing individuals up. Commissions are only paid when products are purchased. NHB Consultants are not paid commissions on products they purchase. Consultants must be qualified to receive commissions when their Customers and Salespeople purchase products .
Consultants agree not to make false or fraudulent representations about products, marketing plan, or income potentials. Consultants are cautioned not to represent hypothetical incomes other than what has already been approved by NHB. Exhibiting actual or facsimile commission checks is prohibited. Claims or representations of actual or potential earnings, guaranteed or anticipated profits or sales success during Business Presentation Meetings are prohibited. Video and/or audio tapping of NHB meetings and conferences is strictly prohibited. NHB believes that the income potential shown in the presentation is sufficient to show individuals possible earnings and this is based on the individual’s efforts and not that of NHB.
REPRODUCTION OF MATERIALS: Consultants will not create, publish, or distribute any literature or materials representing NHB or its products other than that which is provided or approved by NHB. By doing this, NHB can insure that materials provided for Consultant use are original, of top quality and up to date. Reproduction of NHB videotapes, audiotapes, presentation materials, application forms are forbidden.
TELEPHONE DIRECTORY ADVERTISING: Use of NHB’s name, logo, trademark, or any representation will not be approved in white and Yellow Page listings. NHB prohibits Consultants from answering the telephone in any manner that gives the caller the impression that they have reached the company’s main office. Specifically, Consultants may not answer the telephone by responding, “NHB” or “National Homebased Business”. An 800 or 900 Number using the name \”National Homebased Business\” is also prohibited.
BUSINESS LOGO: Consultants may not use the Company name or logo in directory listings.
MEDIA/PUBLIC PRESS RELEASE: All advertising copy, direct mailing, radio, TV, newspaper, electronic and display copy must be approved in writing before being disseminated, published or displayed with the exception of blind ads where no reference is made to the Company name or product name.
Any display ads or institutional or trademark advertising copy, other than covered in these rules, must be submitted to the Company and approved in writing by the Company prior to publication.
No Consultants are authorized to speak to the press of any kind on behalf of NHB. These include but are not limited to, TV appearances, new releases, and using NHB\’s trademark in trade shows or in any other form. Any inquiries by the media are to be referred immediately to NHB.
USE OF NAMES: The use of names of Company officials, executives, or others who endorse NHB and/or its products is strictly prohibited in any advertising or promotion format or medium, except in advertisements or promotional materials approved in writing or supplied by NHB.
ORDERING & PROCEDURES: Ordering products: All orders will be done by mail until notified by NHB. You may print off an order form the Internet. Print all information on the order form legibly and in dark ink. Please send mail To: NHB, P.O. Box 914, Layton, Utah 84041
Form of Payment: All orders ($28 minimum) must be prepaid with a personal check, cashier\’s check, money order, Credit Card or on line at NHBBUSINESS.com. Make checks payable to National Homebased Business, L.C. (NHB). A Consultant\’s check must be imprinted with his/her name and address, current driver\’s license number and state of issue.
Returned NSF Charge: There will be a $35.00 per check charge for all returned checks. NHB may require that any Consultant that has given NHB a check that has been returned unpaid may be required to pay all further transactions with NHB by Cashier\’s check, money order, etc. Default on payment of return check may result in termination of Consultant and/or such legal action, as NHB deems appropriate.
Mail Orders: All product orders received by mail that are not properly completed and signed will be returned to the Consultant. Orders with no payment or incomplete payment enclosed cannot be processed. Unless special arrangements are otherwise announced by NHB, the commission of the order will be credited in the calendar period in which the payment is received and approved. If more than one completed order form is included in a mailing, separate payment for each order form must be enclosed. Payment for two orders may not be combined on one check. One order … one check.
Normal Shipping: Normal shipment is by the U.S. Postal Service, United Parcel Ground Service (UPS) or FedEx. Shipping charges are set forth in a schedule on the Supply Order Form. NHB has no control over the order once it leaves our shipping dock for it\’s ultimate destination. If products are damaged it is the Consultants responsibility to file a claim with the shipping company not NHB.
Shipping Address: Shipments are made ONLY to street addresses. Deliveries cannot be made to a P.O. Box or General Delivery. There are a few rural exceptions, in which case be sure to indicate.
Back Orders: If NHB is temporarily out of stock on an item you order, the item will be back ordered and shipped out the most economical way as soon as possible.
ALL OTHER PRODUCTS: All guarantees with products, services, and product capabilities are through NHB vendors only. NHB will not be held liable for damage or loss caused by NHB\’s Vendor\’s products. The company assumes no liability for personal injury arising from the use or mishandling of any of the company products.
PRODUCT PRICING: Products may be purchased at NHB\’s published prices, which may change from time to time without advance notice.
RETURN MERCHANDISE POLICY: If a participant wishes to cancel this Consultant Agreement/Order Form within three (3) days NHB agrees to repurchase from participant all unencumbered products (not opened, marred, modified in any way, current), sales aids, literature and promotional items which are in perfectly marketable condition and which were acquired by the participant from the Company, at a price not less than 90% of the original net cost to the participant of the goods being returned, less any consideration received by the participant for purchase of the goods which is attributable to specific goods being returned and/or less commissions paid.
AMENDMENTS: MemberConsultants understand that NHB reserves the right to make any adjustments or amendments as it deems necessary with respect to products, pricing, marketing plan, compensation, policies, and procedures. Member/Consultants agree to abide by any such amendments or adjustments. Member/Consultants wil become Independent Member/Consultants upon approval and acceptance by NHB at the Company\’s Office in Layton , Utah . This Agreement shall remain in effect for one (1) year from the date of acceptance by NHB unless earlier terminated in accordance with the terms hereof. Member/Consultants understand that they and each other Independent Member/Consultant must renew their agreement with NHB with one (1) year of the anniversary of becoming an Independent Member/Consultant.
LAWS/STATE LAW VARIATION: NHB does not discriminate in its acceptance of Independent Member/Consultants because of race, creed, sex, color, or national origin. Should any provision on this Agreement violate any applicable state law, such provision shall be automatically amended to conform to the requirements of the law for that state for the Member/Consultants that are residents of that state.
TERMINATION: When a decision is made to terminate a Consultant, the Company will inform the Consultant in writing that the Consultant is terminated immediately, effective as of the date of the written notification. Certified US Mail to the Independent Member/Consultant’s address on file with the Company will send a termination notice to the Independent Member/Consultant.
The Independent Member/Consultant will have 15 days from the date of mailing of the certified letter in which to appeal the termination in writing. The Company must receive the Independent Consultant’s appeal correspondence within 15 days of the Company\’s termination letter. If the appeal is not received within the 15-day period, the termination will be automatically deemed final.
If an Independent Member/Consultant files a timely appeal of termination, the Company will review and reconsider the termination, consider any other appropriate action, and notify the Independent Meber/Consultant of its decision. The decision of the Company will be final and subject to no further review. In the event the termination is not rescinded, the termination will be effective as of the date of the Company\’s original termination notice.
VOLUNTARY TERMINATION: In the event you choose to resign from NHB, submit a signed letter of resignation to the NHB Home Office. You will be allowed to reenter the program in your original position by renewing your annual renewal fee. All commissions will be forfeited until renewal fee is paid and a purchase of $28.00 is made and entered into NHB’s database before midnight of the last business day of the month.
DEATH & INHERITANCE: In the case of Death all rights to commissions shall pass to his/her heir(s) upon written application and approval by NHB. If a Consultant\’s business is to be passed on to children or other family members and there legal matters are pending such as probate or any other legal proceedings, NHB would reserve the right to hold all commissions until a decision has been reached by a court of law or settlement has been reached by all interested parties. NHB must have in its possession a certified and notarized copy of this settlement to release the commissions and change ownership of said Consultants home based business with NHB.
INDEMNIFICATION: Consultants shall indemnify and hold harmless NHB against any claims, demands, liabilities or loss of expense, including but not limited to, attorney\’s fees arising or alleged to arise out of a Consultant\’s operation. Being a Consultant does not imply authority to act on behalf of or to bind NHB contractually. NHB realizes that this is the Consultant\’s business and should use his own methods to sell products as long as they comply with NHB Policies and Procedures.
SEVERABILITY: If any clause or section of the \”OrderForm/Consultant Applicant or Policies and Procedures\” shall be determined to be unenforceable or unlawful, the remaining terms shall remain in force.
ARBITRATION: Any controversy or claim arising out of or relating to these Policies and Procedures, the Purchase Agreement/Consultant Agreement or breach thereof, shall be settled by arbitration administered by the American Arbitration Association under its Commercial Rules. Judgment on any award rendered by arbitrators may be entered by any court having jurisdiction thereof, provided however: that; (1) the arbitration shall be conducted in the State of Utah. (2) The arbitrators shall have no authority to award special, consequential, punitive or other exemplary damages, including, but not limited to, loss of profits or attorney\’s fees or costs. (3) Any award shall be binding and final in all respect and no appeal shall be allowed therefrom. (4) No arbitration shall be instituted unless and until the party making the claim shall have provided the party written notice of their intent to file a claim in arbitration, indicating the general claims to be asserted and providing the party thirty (30) days within which to cure. (5) In no event shall a claim be made after one year from the date of the termination of this agreement.