S t a t e m e n t o f P o l i c i e s a n d P r o c e d u r e s
SECTION 1 — INTRODUCTION
1.1 — Policies and Rewards Program Incorporated into Affiliate Agreement
These Policies and Procedures and the Rewards Program, in their present form and as amended by The Natural Path (also referred to as “TNP” or the “Company”), are incorporated into, and form an integral part of, the The Natural Path Affiliate Agreement. It is the responsibility of each Affiliate to read, understand, adhere to, and insure that he or she is aware of and operating under the most current version of these Policies and Procedures. Throughout these Policies, when the term “Agreement” is used, it collectively refers to the The Natural Path Affiliate Application and Agreement, these Policies and Procedures, the The Natural Path Rewards Program, and the The Natural Path Business Entity Registration Form (if applicable). These documents are incorporated by reference into the The Natural Path Affiliate Agreement (all in their current form and as amended by The Natural Path).
1.2 —Changes to the Agreement
The Natural Path reserves the right to amend the Agreement and its prices in its sole and absolute discretion. By agreeing to the Affiliate Agreement, an Affiliate agrees to abide by all amendments or modifications that The Natural Path elects to make. Amendments shall be effective thirty (30) days after publication of notice that the Agreement has been modified. Amendments shall not apply retroactively to conduct that occurred prior to the effective date of the amendment. Notification of amendments shall be published by one or more of the following methods: (1) posting on the Company’s official web site; (2) electronic mail (e-mail); (3) posting in Affiliate’s back offices; (4) inclusion in Company periodicals; (5) inclusion in product orders or bonus checks; (6) special mailings; or (7) announcement at Company Sanctioned Event(s). The continuation of an Affiliate’s Natural Path business, the acceptance of benefits under the Agreement, or an Affiliate’s acceptance of bonuses or commissions constitutes acceptance of all amendments.
1.3 — Delays
The Natural Path shall not be responsible for delays or failures in performance of its obligations when performance is made commercially impracticable due to circumstances beyond its reasonable control. This includes,without limitation, strikes, labor difficulties, riot, war, fire, death, curtailment of a party’s source of supply, or government decrees or orders.
1.4 — 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 of the provision shall be severed and the remaining terms and provisions shall remain in full force and effect. The severed provision(s), or portion(s) thereof, shall be reformed to reflect the purpose of the provision(s) as closely as possible.
1.5 — 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 The Natural Path to exercise any right or power under the Agreement or to insist upon strict compliance by an Affiliate with any obligation or provision of the Agreement, and no custom or practice of the parties at variance with the terms of the Agreement, shall constitute a waiver of The Natural Path’s right to demand exact compliance with the Agreement. The existence of any claim or cause of action of an Affiliate against The Natural Path shall not constitute a defense to The Natural Path’s enforcement of any term or provision of the Agreement.
SECTION 2 — BECOMING AN AFFILIATE
2.1 — Requirements to Become an Affiliate
To become a Natural Path Affiliate, each applicant must:
a) Be at least 18 years of age if a resident of the USA or of legal age in country of residence;
b) Residents of the USA to provide The Natural Path with a valid Social Security or Federal Tax ID number;
d) Submit a properly completed and signed Affiliate Application and Agreement, either online or offline (with original signatures and the Terms and Conditions) of The Natural Path.
The Company reserves the right to accept or reject any Affiliate Application and Agreement for any reason or for no reason.
2.2 – Product or Service Purchases
No person is required to purchase Natural Path products, services or sales aids, or to pay any charge or fee to become an Affiliate Customer. Affiliates Customers who wish to may subscribe to www.theNatural Pathproject.org, The Natural Path replicated website system. Subscription to www.theNatural Pathproject.org is required for those who wish to be “Qualified Affiliates”. See the Rewards Program for additional information.
2.3 — Affiliate Benefits
Once an Affiliate Application and Agreement has been accepted by The Natural Path, the benefits of the Rewards Program and the Affiliate Agreement are available to the new Affiliate. These benefits include the right to:
a) Purchase Natural Path products and services at the Affiliate price;
b) Sell Natural Path products and services;
c) Participate in The Natural Path Rewards Program (receive bonuses and commissions, if eligible);
d) Enroll other individuals as Affiliate Customers or Affiliates and thereby build a Marketing Organization and progress through The Natural Path Rewards Program:
e) Receive periodic company literature and other Natural Path communications;
f) Participate in The Natural Path sponsored support, service, training, motivational and recognition functions, upon payment of appropriate charges, if applicable; and
g) Participate in promotional and incentive contests and programs sponsored by The Natural Path for its Affiliates.
2.4 — Annual Membership Renewals – Effective January 1, 2021
The term of the Affiliate Agreement runs annually from the date of its acceptance by The Natural Path (subject to prior termination pursuant to Section 10) and is dependent on the chosen level of participation. The Affiliate Agreement will automatically renew for subsequent one-year terms unless either party notifies the other at least 15 days prior to the renewal date that it does not wish to renew the Agreement.
Within 6 months of a member’s annual membership renewal date the amount of the member’s current membership fee will be quarantined within their member back office commission wallet and will not be available for withdrawal.
If the member has no intention to renew their annual membership they can submit a support ticket requesting the full balance posted in their commission wallet. This amount will be paid out 30 days after the date of their membership expiring.
Renewal fees will be deducted from the Affiliates internal wallet. If a member’s account balance is in deficit when their annual membership subscription fee is due to be paid the account will be deemed inactive and will be archived unless the member pays both the deficit amount and the annual subscription fee before the subscription renewal date.
Inactive accounts can be reactivated with payment of both the deficit amount and the annual renewal fee.
The Natural Path will attempt to contact any member whose status is in deficit prior to their annual subscription date giving the member the opportunity to bring their account current before the next annual fee is due.
At the sole discretion of The Natural Path the failure to renew on the one year anniversary date can result in termination and loss of access and privileges associated will any and all aspects of The Natural Path membership.
SECTION 3 — OPERATING A Natural Path BUSINESS
3.1 — Adherence to the Natural Path Rewards Program
Affiliates must adhere to the terms of the Natural Path Rewards Program as set forth in official Natural Path literature. Affiliates shall not offer the Natural Path opportunity through, or in combination with, any other system, program, sales tools, or method of marketing other than that specifically set forth in official Natural Path literature. Affiliates shall not require or encourage other current or prospective Affiliate Customers or Affiliates to participate in Natural Path in any manner that varies from the program as set forth in official Natural Path literature. Affiliates shall not require or encourage other current or prospective Affiliate Customers or Affiliates to execute any agreement or contract other than official Natural Path agreements and contracts in order to become a Natural Path Affiliate. Similarly, Affiliates shall not require or encourage other current or prospective Affiliate Customers or Affiliates to make any purchase from, or payment to, any individual or other entity to participate in the Natural Path Rewards Program other than those purchases or payments identified as recommended or required in official Natural Path literature.
3.2 — Advertising
3.2.1 — General
All Affiliates shall safeguard and promote the good reputation of Natural Path and its products and services. The marketing and promotion of Natural Path, the Natural Path opportunity, the Rewards Program, and Natural Path products and services shall be consistent with the public interest, and must avoid all discourteous, deceptive, misleading, unethical or immoral conduct or practices.
To promote both the Natural Path products and services, and the tremendous opportunity Natural Path offers, Affiliates should use the sales aids, business tools, and support materials produced by Natural Path. However, as described below, Affiliates may develop their own sales aids, promotional materials, advertisements, or other literature, subject to Company approval.
Accordingly, Affiliates may only advertise or promote their Natural Path business using approved tools, templates or images acquired through Natural Path. No approval is necessary to use these approved tools. If an Affiliate wishes to design his or her own online or offline marketing materials of any kind, the proposed designs must be submitted to the Natural Path for consideration and inclusion in the template/image library. Unless the Affiliate receives specific written approval from Natural Path to use such tools, the request shall be deemed denied.
Affiliates may not sell sales aids to other Natural Path Affiliates. Therefore, Affiliates who receive authorization from Natural Path to produce their own sales aids may not sell such material to any other Natural Path Affiliate. Affiliates may make approved material available to other Affiliates free of charge if they wish, but may not charge other Natural Path Affiliates for the material.
Natural Path further reserves the right to rescind approval for any sales tools, promotional materials, advertisements, or other literature, and Affiliates waive all claims for damages or remuneration arising from or relating to such rescission.
3.2.2 – Trademarks and Copyrights
The name of Natural Path and other names as may be adopted by Natural Path are proprietary trade names, trademarks and service marks of Natural Path (collectively “marks”). As such, these marks are of great value to Natural Path and are supplied to Affiliates for their use only in an expressly authorized manner. Natural Path will not allow the use of its trade names, trademarks, designs, or symbols by any person, including a Natural Path Affiliate, without its prior, written permission.
The content of all Company sponsored events is copyrighted material. Affiliates may not produce for sale or distribution any recorded company events and speeches without written permission from Natural Path. Nor may Affiliates reproduce for sale or for personal use any recording of company-produced audio or videotape presentations. Affiliates shall not produce audio, video or written material with the purpose to distribute that material to Natural Path Affiliates without permission of Natural Path.
As an independent Affiliate, you may use the Natural Path name in the following manner
Affiliate’s Name Independent Natural Path Affiliate
Example:
Alice Smith
Independent Natural Path Affiliate
Affiliates may not use the name “Natural Path” in any form in a team name, a tagline, an external website name, a personal website address or extension, in an e-mail address, as a personal name, or as a nickname. For example, an Affiliate may not secure the domain name www.buyNatural Path.com, nor may an Affiliate create an email address such as Natural Pathsales@hotmail.com. Additionally, an Affiliate may only use the phrase Independent Natural Path Affiliate in telephone greetings or on an answering machine to clearly separate the Affiliate’s independent Natural Path business from Natural Path.
3.3 — Online Conduct
Affiliates may develop their own web pages, however, any Affiliate who does so: (a) must use the text of the company’s official web site; (b) may not supplement the content of his or her web site with text from any source other than the company; and (c) may not promote or sell any non-Natural Path products or opportunity.
3.3.2 – Affiliate Developed Websites
If an Affiliate develops his or her own Natural Path website pursuant to this Section 3.3 (an “Independent Natural Path Website”), Such Affiliate shall be solely responsible and liable for all content, messaging, claims, and information presented at such website and must ensure that it appropriately represents and enhances the Natural Path brand and adheres to Natural Path’s Policies and Procedures. Additionally, any Independent Natural Path Website must not contain disingenuous popup ads or promotions or malicious code. Decisions and corrective actions in this area are at Natural Path’s sole discretion.
3.3.3 — Domain Names, E-Mail Addresses and Online Aliases
Affiliates may not use or attempt to register any of Natural Path’s trade names, trademarks, service names, service marks, product names, the Company’s name, or any derivative thereof, for any Internet domain name, e-mail address, or online alias. Additionally, an Affiliate cannot use or register domain names, email addresses, and/or online aliases that could cause confusion, or be misleading or deceptive, in that they cause individuals to believe or assume the communication is from, or is the property of Natural Path.
3.3.4 – Online Classifieds
Affiliates may not use online classifieds (including Craigslist) to list, sell or retail specific Natural Path products or product bundles. Affiliates may use online classifieds (including Craigslist) for prospecting, recruiting, sponsoring and informing the public about the Natural Path business opportunity.
3.3.6 – eBay / Online Auctions
Natural Path’s products and services may not be listed on eBay or other online auctions, nor may Affiliates enlist or knowingly allow a third party to sell Natural Path products on eBay or other online auction.
3.3.7 – Online Retailing
Affiliates may not list or sell Natural Path products on any online retail store or ecommerce site, nor may an Affiliate enlist or knowingly allow a third party to sell Natural Path products on any online retail store or ecommerce site.
3.3.9 – Spam Linking
Spam linking is defined as multiple consecutive submissions of the same or similar content into blogs, wikis, guest books, websites or other publicly accessible online discussion boards or forums and is not allowed. This includes blog spamming, blog comment spamming and/or spamdexing. Any comments that an Affiliate makes on blogs, forums, guest books etc. must be unique, informative and relevant.
3.3.10 – Digital Media Submission
Affiliates may upload, submit or publish Natural Path-related video, audio or photo content that they develop and create so long as it aligns with Natural Path values, contributes to the Natural Path community greater good and is in compliance with Natural Path’s Policies and Procedures. All submissions must clearly identify the submitter as an Independent Natural Path Affiliate in the content itself and in the content description tag, must comply with all copyright/legal requirements, and must state that the submitter is solely responsible for this content. Affiliates may not upload, submit or publish any content (video, audio, presentations or any computer files) received from Natural Path or captured at official Natural Path events or in buildings owned or operated by Natural Path without prior written permission.
3.3.11 – Social Media
In addition to meeting all other requirements specified in these Policies and Procedures, should an Affiliate utilize any form of social media, including but not limited to Facebook, Twitter, LinkedIn, YouTube, or Pinterest, the Affiliate agrees to each of the following:
No product sales or enrollments may occur on any social media site.
It is each Affiliate’s responsibility to follow the social media site’s terms of use. If the social media site does not allow its site to be used for commercial activity, you must abide by the site’s terms of use.
During the term of this Agreement and for a period of 12 calendar months thereafter, an Affiliate may not use any social media site on which they discuss or promote, or have discussed or promoted, the Natural Path business or Natural Path’s products to directly or indirectly solicit Natural Path Affiliate’s for another direct selling or network marketing program (collectively, “direct selling”). In furtherance of this provision, an Affiliate shall not take any action that may reasonably be foreseen to result in drawing an inquiry from other Affiliate’s relating to the Affiliate’s other direct selling business activities. Violation of this provision shall constitute a violation of the non-solicitation provision in Section 3.9 below.
An Affiliate may post or “pin” photographs of Natural Path products on a social media site, but only photos that are provided by Natural Path and downloaded from the Affiliate’s Back-Office may be used.
If an Affiliate creates a business profile page on any social media site that promotes or relates to Natural Path, its products, or opportunity, the business profile page must relate exclusively to the Affiliate’s Natural Path business and Natural Path products. If the Affiliate’s Natural Path business is cancelled for any reason or if the Affiliate becomes inactive, the Affiliate must deactivate the business profile page.
3.4 — Bonus Buying Prohibited
Bonus buying is strictly and absolutely prohibited. “Bonus buying” includes: (a) the enrollment of individuals or entities without the knowledge of and/or execution of an Independent Affiliate Application and Agreement by such individuals or entities; (b) the fraudulent enrollment of an individual or entity as an Affiliate or Affiliate Customer; (c) the enrollment or attempted enrollment of nonexistent individuals or entities as Affiliate’s or Affiliate’s Customers (“phantoms”); (d) the use of a credit card by or on behalf of an Affiliate or customer when the Affiliate or customer is not the account holder of such credit card; (e) Purchasing Natural Path merchandise on behalf of another Affiliate or customer, or under another Affiliate’s or Customer’s I.D. number, to qualify for commissions or bonuses.
3.5— Business Entities
A corporation, limited liability company, partnership or trust (collectively referred to in this section as a “Business Entity”) may apply to be a Natural Path Affiliate by submitting an Affiliate Application and Agreement along with a properly completed Business Entity Registration form and a properly completed IRS Form W-9 (Request for Taxpayer Identification Number). If an Affiliate enrolls online, the Business Entity Registration Form must be submitted to Natural Path within 30 days of the online enrollment. (If not received within the 30-day period, the Affiliate Agreement shall automatically terminate.) A Natural Path business may change its status under the same Enroller 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 Affiliate Application and Agreement. The Business Entity Registration form must be signed by all of the shareholders, members, partners or trustees. The Business Entity and its shareholders, members, managers, partners, trustees, or other parties with any ownership interest in, or management responsibilities for, the Business Entity (collectively “Affiliated Parties”) are individually, jointly and severally liable for any indebtedness to Natural Path, compliance with the Natural Path Policies and Procedures, compliance with the Natural Path Affiliate Agreement, and all other obligations to Natural Path.
3.6— Changes to a Natural Path Business
3.6.1— General
Each Affiliate must immediately notify Natural Path of all changes to the information contained on his or her Affiliate Application and Agreement. Affiliate’s may modify their existing Affiliate Agreement(i.e., change Social Security number to Federal I.D. number, or change the form of ownership from an individual proprietorship to a business entity owned by the Affiliate) by submitting a written request, a properly executed Affiliate Application and Agreement, and appropriate supporting documentation. Changes shall be processed only once per year. All changes must be submitted by November 30 to become effective on January 1 of the following year.
3.6.2— Addition of Co-Applicants
When adding a co-applicant (either an individual or a business entity) to an existing Natural Path business, the Company requires a written request as well as a properly completed Affiliate Application and Agreement containing the applicant and co-applicant’s Social Security Numbers and signatures. To prevent the circumvention of Section 3.25 (regarding transfers and assignments of Natural Path business), the original applicant must remain as a party to the original Affiliate Application and Agreement. If the original Affiliate wants to terminate his or her relationship with the Company, he or she must transfer or assign his or her business in accordance with Section 3.25. If this process is not followed, the business shall be canceled upon the withdrawal of the original Affiliate. All bonus and commission checks will be sent to the address of record of the original Affiliate. Please note that the modifications permitted within the scope of this paragraph do not include a change of line of sponsorship. Changes of lines of sponsorship are addressed in Section 3.6.3, below. There is a $35.00 fee for each change requested, which must be included with the written request and the completed Affiliate Application and Agreement. Natural Path may, at its discretion, require notarized documents before implementing any changes to a Natural Path business. Please allow thirty (30) days after the receipt of the request by Natural Path for processing.
3.6.3— Changes in Lines of Sponsorship
To protect the integrity of all marketing organizations and safeguard the hard work of all Affiliates, Natural Path discourages changes in lines of sponsorship. Maintaining the integrity of lines of sponsorship is important for the success of every Affiliate and marketing organization. Accordingly, the transfer of a Natural Path business from one line of sponsorship to another is not often permitted.
Requests for a change of line of sponsorship must be submitted to the Corporate Office, and must include the reason for the transfer. Transfers will only be considered in the following three(3) circumstances:
a) In cases involving fraudulent inducement or unethical enrolling, an Affiliate may request that he or she be transferred to another organization with his or her entire marketing organization intact. All requests for transfer alleging fraudulent enrollment practices shall be evaluated on a case-by-case basis.
b) In cases whereby the sponsor has gone inactive as it relates to growing and supporting their business. This includes but is not limited to the failure of the sponsor to support and generally interact with their referrals and downline members. In this situation an Affiliate may request that he or she be transferred to another organization with his or her entire marketing organization intact. All requests for transfer based on the above shall be evaluated on a case-by-case basis.
c) The Affiliate seeking to transfer submits a properly completed and fully executed Line of Sponsorship Transfer Form which includes the written approval of his or her immediate three upline Affiliate’s. Photocopied or facsimile signatures are not acceptable. All Affiliate signatures must be notarized. The Affiliate who requests the transfer must submit a fee of $50.00 for administrative charges and data processing. If the transferring Affiliate also wants to move any of the Affiliate’s in his or her marketing organization, each downline Affiliate must also obtain a properly completed Line of Sponsorship Transfer Form and return it to Natural Path with the $50.00 change fee (i.e., the transferring Affiliate and each Affiliate in his or her marketing organization multiplied by $50.00 is the cost to move a Natural Path business.) Downline Affiliate’s will not be moved with the transferring Affiliate unless all of the requirements of this paragraph are met. Transferring Affiliates must allow thirty (30) days after the receipt of the Line of Sponsorship Transfer Forms by Natural Path for processing and verifying change requests.
3.6.4 — Cancellation and Re-application
An Affiliate may legitimately change organizations by voluntarily canceling his or her Natural Path business and remaining inactive (i.e., no purchases of Natural Path products or services for resale, no sales of Natural Path products or services, no enrolling, participation in any other form of Affiliate activity, or operation of any other Natural Path business) for six (6) full calendar months. Following the six-month period of inactivity, the former Affiliate may reapply under a new Enroller. Natural Path will consider waiving the six-month waiting period under exceptional circumstances. Such requests for waiver must be submitted to Natural Path in writing.
3.6.5 – Waiver of Claims
In cases in which the appropriate sponsorship change procedures have not been followed, and a downline organization has been developed in the second business developed by an Affiliate, Natural Path reserves the sole and exclusive right to determine the final disposition of the downline organization. Resolving conflicts over the proper placement of a downline that has developed under an organization that has improperly switched sponsors is often extremely difficult. Therefore, AFFILIATE’S WAIVE ANY AND ALL CLAIMS AGAINST Natural Path, ITS OFFICERS, DIRECTORS, OWNERS, EMPLOYEES, AND AGENTS THAT RELATE TO OR ARISE FROM Natural Path’s DECISION REGARDING THE DISPOSITION OF ANY DOWNLINE ORGANIZATION THAT DEVELOPS BELOW AN ORGANIZATION THAT HAS IMPROPERLY CHANGED LINES OF SPONSORSHIP.
3.7 — Unauthorized Claims and Actions
3.7.1— Indemnification
An Affiliate is fully responsible for all of his or her verbal and written statements made regarding Natural Path products, services and the Rewards Program which are not expressly contained in official Natural Path materials. Affiliate’s agree to indemnify Natural Path and Natural Path’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 Natural Path as a result of the Affiliate’s unauthorized representations or actions. This provision shall survive the termination of the Affiliate Agreement.
3.7.2 — Income Claims
Because Natural Path Affiliate’s do not have the data necessary to comply with the legal requirements for making income claims, an Affiliate, when presenting or discussing the Natural Path opportunity or Rewards Program to a prospective Affiliate, may not make income projections, income claims, or disclose his or her Natural Path income (including, but not limited to, the showing of checks, copies of checks, bank statements, or tax records).
3.7.3 – Opportunity Claims
When presenting or discussing the Natural Path opportunity or the Natural Path Rewards Program, you must make it clear to prospects that financial success with Natural Path requires commitment, effort, and sales skill. Conversely, you must never represent that one can be successful without diligently applying themselves. Examples of misrepresentations in this area include:
It’s a turnkey system;
The system will do the work for you;
Just get in and your downline will build through spillover;
Just join and I’ll build your downline for you;
The company does all the work for you;
You don’t have to sell anything; or
All you have to do is buy your products every month.
The above are just examples of improper representations about the Rewards Program. It is important that you do not make these or any other representations that could lead a prospect to believe that they can be successful as a Natural Path Affiliate without commitment, effort, and sales skill.
3.7.4 – Product Claims
No claims (which include personal testimonials) as to therapeutic, curative or beneficial properties of any nutritional or personal care products offered by Natural Path may be made except those contained in official Natural Path literature. In particular, no Affiliate may make any claim that such products are useful in the cure, treatment, diagnosis, mitigation or prevention of any diseases. Such statements can be perceived as medical or drug claims, and they may lack adequate substantiation. Not only are such claims in violation of the Affiliate Agreement, they also violate the laws and regulations of the United States, Canada, and other countries.
3.8 — Trade Shows, Expositions and Other Sales Forums
Affiliates may display and/or sell Natural Path products or services at trade shows and professional expositions, provided the provisions of Section 3.2 are adhered to.
3.9 — Conflicts of Interest
3.9.1 — Non solicitation
Natural Path Affiliates are free to participate in other multilevel or network marketing business ventures or marketing opportunities (collectively “network marketing”). However, during the term of this Agreement, Affiliate’s may not directly or indirectly recruit other Natural Path Affiliates or Affiliate Customers for any other network marketing business.
Following the cancellation of an Affiliate’s Independent Affiliate Agreement, and for a period of six calendar months thereafter, with the exception of an Affiliate who was personally sponsored by the former Affiliate, a former Affiliate may not recruit any Natural Path Affiliate or Affiliate Customer for another network marketing business.
During the term of this Agreement and for a period of 12 calendar months thereafter, an Affiliate may not use any social media site on which they discuss or promote, or have discussed or promoted, the Natural Path business or Natural Path’s products to directly or indirectly Recruit Natural Path Affiliates for another direct selling or network marketing program (collectively, “direct selling”). In furtherance of this provision, an Affiliate shall not take any action that may reasonably be foreseen to result in drawing an inquiry from other Affiliates relating to the Affiliate’s other direct selling business activities.
Affiliates and the Company recognize that because network marketing is conducted through networks of independent contractors dispersed across the entire United States and internationally, 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, Affiliates and Natural Path agree that this non-solicitation provision shall apply nationwide and to all international markets in which Natural Path Affiliates are located. This provision shall survive the termination or expiration of the Agreement.
The term “Recruit” means the actual or attempted sponsorship, solicitation, enrollment, encouragement, or effort to influence in any other way, either directly, indirectly, or through a third party, another Natural Path Affiliate or Affiliate Customer to enroll or participate in another multilevel marketing, network marketing or direct sales opportunity.
3.9.2 – Affiliate Participation in Other Direct Selling Programs
If an Affiliate is engaged in other non-Natural Path direct selling programs, it is the responsibility of the Affiliate to ensure that his or her Natural Path business is operated entirely separate and apart from any other program. To this end, the following must be adhered to:
Affiliates must not sell, or attempt to sell, any competing non-Natural Path programs, products or services to Natural Path Affiliate Customers or Affiliates. Any program, product or services in the same generic categories as Natural Path products or services is deemed to be competing, regardless of differences in cost, features, or other distinguishing factors.
Affiliates shall not display Natural Path promotional materials, sales aids, products or services with or in the same location as any non-Natural Path promotional materials, sales aids, products or services.
Affiliates shall not offer the Natural Path opportunity, products or services to prospective or existing Affiliate Customers or Affiliates in conjunction with any non-Natural Path program, opportunity, product or service.
Affiliates may not offer any non-Natural Path opportunity, products, services or opportunity at any Natural Path-related meeting, seminar, convention, webinar, teleconference, or other function.
3.9.3 — Downline Activity (Genealogy) Reports
All Downline Activity Reports and the information contained therein are confidential and constitute proprietary information and business trade secrets belonging to Natural Path. Downline Activity Reports are provided to Affiliates in strictest confidence and are made available to Affiliates for the sole purpose of assisting Affiliates in working with their respective Downline Organizations in the development of their Natural Path business. The Affiliate and Natural Path agree that, but for this agreement of confidentiality and nondisclosure, Natural Path would not provide Downline Activity Reports to the Affiliate. An Affiliate shall not, on his or her own behalf, or on behalf of any other person, partnership, association, corporation or other entity:
Directly or indirectly disclose any information contained in any Downline Activity Report to any third party;
Directly or indirectly disclose his or her password for online access to his or her Downline Activity Reports;
Use the information to compete with Natural Path or for any purpose other than promoting his or her Natural Path business;
Recruit or solicit any Affiliate or Customer of Natural Path listed on any report, or in any manner attempt to influence or induce any Affiliate or Customer of Natural Path, to alter their business relationship with Natural Path; or Use or disclose to any person, partnership, association, corporation, or other entity any information contained in any Downline Activity Report.
The obligation of an Affiliate to not disclose any Downline Activity Report information shall survive cancellation or termination of the Agreement, and shall remain effective and binding irrespective of whether an Affiliate’s Agreement has been terminated, or whether the Affiliate is or is not otherwise affiliated with the Company.
Upon demand by the Company, any current or former Affiliate will return the original and all copies of Downline Activity Reports to the Company.
3.10 — Cross-Line Enrolling
Actual or attempted cross-line enrolling is strictly prohibited. “Cross-line enrolling” is defined as the enrollment of an individual who, or entity that, already has a current Customer or Affiliate Agreement on file with Natural Path, 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. Affiliates shall not demean, discredit or defame other Natural Path Affiliates in an attempt to entice another Affiliate to become part of the first Affiliate’s marketing organization. This policy shall not prohibit the transfer of a Natural Path business in accordance with Section 3.25.
3.11 – Targeting Other Direct Sellers
Natural Path does not condone Affiliates specifically or consciously targeting the sales force of another direct sales company to sell Natural Path products or to become Affiliates for Natural Path, nor does Natural Path condone Affiliates 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 Affiliates 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 an Affiliate alleging that he or she engaged in inappropriate recruiting activity of its sales force or customers, Natural Path will not pay any of the Affiliate’s defense costs or legal fees, nor will Natural Path indemnify the Affiliate for any judgment, award, or settlement.
3.12 — Enrolling
All active Affiliates in good standing have the right to enroll Customers and accept Affiliate Applications from others. Each prospective Customer or Affiliate has the ultimate right to choose his or her own Enroller. If two Affiliates claim to be the Enroller of the same new Affiliate or Customer, the Company shall regard the first application received by the Company as controlling.
When enrolling a new Affiliate through the online enrollment process, the Enroller/Sponsor may assist the new applicant in filling out the enrollment materials. However, the applicant must personally review and agree to the online application and agreement, Natural Path’s Policies and Procedures, and the Natural Path Pay and Benefits Plan. The Enroller/Sponsor may not fill out the online application and agreement on behalf of the applicant and agree to these materials on behalf of the applicant.
3.13 — Errors or Questions
If an Affiliate has questions about or believes any errors have been made regarding commissions, bonuses, Downline Activity Reports, or charges, the Affiliate must notify Natural Path in writing within 60 days of the date of the purported error or incident in question. Natural Path will not be responsible for any errors, omissions or problems not reported to the Company within 60 days.
3.14 — Excess Inventory Purchases Prohibited
Natural Path strictly prohibits the purchase of products in unreasonable amounts primarily for the purpose of qualifying for commissions, bonuses or advancement in the Rewards Program. Affiliates may not purchase more inventory than they can reasonably use in a month nor may they encourage others to do so. Affiliates are prohibited from purchasing more than $500.00, in products per month unless they certify to Natural Path that they have pending retail orders in excess of that amount or provide Natural Path with other written reason why such a purchase is necessary.
3.15 — Governmental Approval or Endorsement
State and federal regulatory agencies and officials do not approve or endorse any direct selling or network marketing companies or programs. Therefore, Affiliates shall not represent or imply that Natural Path or its Rewards Program have been “approved,” “endorsed” or otherwise sanctioned by any government agency.
3.16 — Income Taxes
Each Affiliate is responsible for paying local, state/provincial, and federal taxes on any income generated as an Independent Affiliate. If a Natural Path business is tax exempt, the Federal tax identification number must be provided to Natural Path. Every year, Natural Path 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.
Natural Path cannot provide Affiliates with any personal tax advice. Affiliates should consult with their own tax accountant, tax attorney, or other tax professional.
3.17 — Independent Contractor Status
Affiliates are independent contractors. The agreement between Natural Path and its Affiliates does not create an employer/employee relationship, agency, partnership, or joint venture between the Company and the Affiliate. An Affiliate shall not be treated as an employee for his or her services or for Federal or State tax purposes. All Affiliates are responsible for paying local, state, and federal taxes due from all compensation earned as an Affiliate of the Company. Natural Path is not responsible for withholding, and shall not withhold or deduct from an Affiliate’s bonuses and commissions, if any, FICA or taxes of any kind, unless withholding becomes legally required. The Affiliate has no authority (expressed or implied), to bind the company to any obligation. Affiliates 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 Natural Path. Each Affiliate shall establish his or her own goals, hours, and methods of sale, so long as he or she complies with the terms of the Affiliate Agreement, these Policies and Procedures, and applicable laws. Each Affiliate 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.
3.18 — Insurance
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.
3.19 — International Marketing
Because of critical legal and tax considerations, Natural Path will not allow the resale of Natural Path products and services, and the presentation of the Natural Path business by Affiliates in markets not yet opened by Natural Path. Moreover, allowing a few Affiliates to conduct business in markets not yet opened by Natural Path would violate the concept of affording every Affiliate the equal opportunity to expand internationally.
Accordingly, Affiliates are authorized to sell Natural Path products and services, and enroll Affiliate Customers or Affiliates only in the countries in which Natural Path is to conduct business, as announced in official company literature. Unless all applicable export and import laws are complied with, Natural Path products or sales aids cannot be shipped into or sold in any foreign country. In addition, no Affiliate may, in any unauthorized country: (a) conduct sales, enrollment or training meetings; (b) enroll or attempt to enroll potential Affiliate Customers or Affiliates; or (c) conduct any other activity for the purpose of selling Natural Path products or services, establishing a marketing organization, or promoting the Natural Path opportunity.
3.20 — Adherence to Laws and Ordinances
Affiliates shall comply with all federal, state, local laws, ordinances and regulations in the conduct of their businesses.
3.21 — One Natural Path Business per Tax Identification Number
Only one Natural Path business may be associated with an individual’s Social Security Number or an entity’s Employer Identification Number. If the Company receives an Affiliate Application and Agreement that lists a tax identification number that is already associated with an existing Natural Path business, the Application and Agreement will be rejected.
3.22 — Actions of Household Members or Affiliated Individuals
If any member of an Affiliate’s immediate household engages in any activity, which, if performed by the Affiliate, would violate any provision of the Agreement, such activity will be deemed a violation by the Affiliate and Natural Path may take disciplinary action pursuant to the Statement of Policies against the Affiliate. 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 Natural Path may take disciplinary action against the entity.
3.23 — Requests for Records
Any request from an Affiliate for copies of invoices, applications, downline activity reports, or other records will require a fee of $2.00 per page per copy. This fee covers the time required to research files and make copies of the records.
3.24 — Sale, Transfer or Assignment of Natural Path Business
3.24.1 — Company Approval Required
Although a Natural Path business is a privately owned, independently operated business, the prospective sale, transfer or assignment of a Natural Path business is subject to certain limitations and must be approved by Natural Path’s Corporate Office. If an Affiliate wishes to sell his or her Natural Path business, the following criteria must be met:
Protection of the existing line of sponsorship must always be maintained so that the Natural Path business continues to be operated in that line of sponsorship.
The buyer or transferee must be (or must be approved) a qualified Natural Path Affiliate. If the buyer is an active Natural Path Affiliate, he or she must first terminate his or her Natural Path business simultaneously with the purchase, transfer, assignment or acquisition of any interest in the new Natural Path business.
Before the sale, transfer or assignment can be finalized and approved by Natural Path, any debt obligations the selling Affiliate has with Natural Path must be satisfied.
The selling Affiliate 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 Natural Path business.
Prior to selling a Natural Path business, the selling Affiliate must notify Natural Path’s Corporate Office. The selling Affiliate must also receive written approval from the Company before proceeding with the sale. No changes in line of sponsorship can result from the sale or transfer of a Natural Path business.
3.26 — Separation of a Natural Path Business
Natural Path Affiliates sometimes operate their Natural Path businesses as husband-wife partnerships, regular partnerships, LLCs, corporations, trusts, or other Business Entities. At such time as a marriage may end in divorce or a corporation, partnership, LLC, trust or other Business Entity 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.
During the divorce or entity dissolution process, the parties must adopt one of the following methods of operation:
One of the parties may, with consent of the other(s), operate the Natural Path business pursuant to an assignment in writing whereby the relinquishing spouse, shareholders, partners or trustees authorize Natural Path to deal directly and solely with the other spouse or non-relinquishing shareholder, partner or trustee.
The parties may continue to operate the Natural Path business jointly on a “business-as-usual” basis, where upon all compensation paid by Natural Path will be paid according to the status quo as it existed prior to the divorce filing or dissolution proceedings. This is the default procedure if the parties do not agree on the format set forth above.
Under no circumstances will the Downline Organization of divorcing spouses or a dissolving business entity be divided. Similarly, under no circumstances will Natural Path split commission and bonus checks between divorcing spouses or members of dissolving entities. Natural Path will recognize only one Downline Organization and will issue only one commission check per Natural Path business per commission cycle. Commission checks shall always be issued to the same individual or entity. If a former spouse or a former entity Affiliate has completely relinquished all rights in their original Natural Path business, they are thereafter free to enroll under any Enroller of their choosing. In such case, however, the former spouse or partner shall have no rights to any Affiliates or Affiliate Customers in their former organization or to any former retail customer. They must develop the new business in the same manner, as would any other new Affiliate.
3.27 — Succession
Upon the death or incapacitation of an Affiliate, his or her business may be passed to his or her heirs. Appropriate legal documentation must be submitted to the Company to ensure the transfer is proper. Accordingly, an Affiliate should consult an attorney to assist him or her in the preparation of a will or other testamentary instrument. Whenever a Natural Path business is transferred by a will or other testamentary process, the beneficiary acquires the right to collect all bonuses and commissions of the deceased Affiliate’s marketing organization provided the following qualifications are met. The successor(s) must:
Execute a Affiliate Agreement;
Comply with terms and provisions of the Agreement; and
Meet all of the qualifications for the deceased or incapacitated Affiliate’s status
Bonus and commission checks of a Natural Path business transferred pursuant to this section will be paid in a single check jointly to the devisees. The devisees must provide Natural Path 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. Natural Path will issue all bonus and commission checks and one 1099 to the business entity.
3.27.1 — Transfer Upon Death of an Affiliate
To affect a testamentary transfer of a Natural Path business, the executor of the estate must provide the following to Natural Path: (1) an original death certificate; (2) certified letters testamentary or a letter of administration appointing an executor; and (3) written instructions from the authorized executor to Natural Path specifying to whom the business and income should be transferred.
3.27.2 — Transfer Upon Incapacitation of an Affiliate
To affect a transfer of a Natural Path business because of incapacity, the successor must provide the following to Natural Path: (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 Natural Path business; and (3) a completed Affiliate Agreement executed by the trustee.
3.28 – Back Office Access
Natural Path makes online back offices available to its Affiliates. Back offices provide Affiliates access to confidential and proprietary information that may be used solely and exclusively to promote the development of an Affiliate’s Natural Path business and to increase sales of Natural Path products. However, access to a back office is a privilege, and not a right. Natural Path reserves the right to deny Affiliates’ access to the back office at its sole discretion.
SECTION 4 — RESPONSIBILITIES OF AFFILIATES
4.1 — Change of Contact Information
To ensure timely delivery of products, support materials, commissions, and tax documents, it is important that the Natural Path’s files are current. Street addresses are required for shipping. Affiliates planning to change any of their contact information must update their contact information via the Back Office function of the Affiliate’s www.theNatural Pathproject.org Replicated Website. To guarantee proper delivery, two weeks advance notice must be provided to Natural Path on all changes.
4.2 — Continuing Development Obligations
4.2.1 — Ongoing Training
Any Affiliate who enrolls another Affiliate into Natural Path must provide a bona fide assistance and training to ensure that his or her downline is operating their Natural Path business. Affiliates must have ongoing contact and communication with the Affiliates 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 Affiliates to Natural Path meetings, training sessions, and other functions. Upline Affiliates are also responsible to motivate and train new Affiliates in Natural Path product knowledge, effective sales techniques, the Natural Path Rewards Program, and compliance with the Policies and Procedures. Communication with and the training of downline Affiliates must not, however, violate Section 3.2 (regarding the development of Affiliate-produced sales aids and promotional materials).
Affiliates should monitor the Affiliates in their Downline Organizations to ensure that downline Affiliates do not make improper product or business claims, or engage in any illegal or inappropriate conduct.
4.2.2 — Increased Training Responsibilities
As Affiliates progress through the various levels of leadership, they will become more experienced in sales techniques, product knowledge, and understanding of the Natural Path program. They will be called upon to share this knowledge with lesser-experienced Affiliates within their organization.
4.2.3 — Ongoing Sales Responsibilities
Regardless of their level of achievement, Affiliates have an ongoing obligation to continue to personally promote sales through the generation of new customers and through servicing their existing customers.
4.3 — Non-disparagement
Natural Path values your constructive criticisms and comments. All such comments should be submitted in writing to our Corporate Office. While Natural Path welcomes constructive input, negative comments and remarks made in the field by Affiliates about the Company, its products or services, or Rewards Program serve no healthy purpose. For this reason, and to set the proper example for their downline, Affiliates must not disparage Natural Path, other Natural Path Affiliate’s, Natural Path’s products or services, the Rewards Program, or Natural Path’s directors, officers, or employees.
4.4 — Providing Documentation to Applicants
Affiliates must provide the most current version of the Policies and Procedures and the Rewards Program to individuals whom they are enrolling to become Affiliates before the applicant enters into an Affiliate Agreement, or ensure that such individuals have online access to these materials. The current version of the Policies and Procedures is available for printing and reading at the Company’s official web site.
SECTION 5 — SALES REQUIREMENTS
5.1 — Product Sales
The Natural Path Rewards Program is based upon the sale of Natural Path products and services to end consumers. Affiliates must fulfill personal retail sales requirements (as well as meet other responsibilities set forth in the Agreement) to be eligible for bonuses, commissions and advancement to higher levels of achievement. The following sales requirements must be satisfied for Affiliates to be eligible for commissions:
Affiliates must satisfy the Business Volume requirements to fulfill the requirements associated with their rank as specified in the Natural Path Rewards Program. “Personal Volume” includes purchases made by the Affiliate and purchases made by the Affiliate’s personal customers.
At least 70% of an Affiliate’s total monthly business volume must be sold to personal retail customers.
Affiliate must develop or service at least 5 customers every month.
SECTION 6 — BONUSES AND COMMISSIONS
6.1 — Bonus and Commission Qualifications
An Affiliate must be active and in compliance with the Agreement to qualify for bonuses and commissions. So long as an Affiliate complies with the terms of the Agreement, Natural Path shall pay commissions to such Affiliate in accordance with the Rewards Program. Bonus and commission Payment will be made through select e-wallet system(s) and deposited upon each months end.
Commission due amount must be equal to or in excess of $100.00 USD to qualify for withdrawal.
6.2 — Adjustment to Bonuses and Commissions
Affiliates receive bonuses and commissions based on the actual sales of products to end consumers. When a product is returned to Natural Path for a refund or is repurchased by the Company, the bonuses and commissions attributable to the returned or repurchased product(s) will be deducted, in the month in which the refund is given, and continuing every pay period thereafter until the commission is recovered, from the Affiliates who received bonuses and commissions on the sales of the refunded products. In the event that any such Affiliate terminates his or her Affiliate Agreement, and the amounts of the bonuses or commissions attributable to the returned products have not yet been fully recovered by the company, the remainder of the outstanding balance may be set off against any amounts owed to the terminated Affiliate pursuant to Section 7.3.
6.3 —Reports
All information provided by Natural Path in online, printed or telephonic reports, including but not limited to personal and group sales volume (or any part thereof), downline enrolling activity, and order information is believed to be accurate and reliable. Nevertheless, due to various factors including the inherent possibility of human and mechanical error; the accuracy, completeness, and timeliness of orders; denial of credit card and electronic check payments; returned products; credit card and electronic check charge backs; the information is not guaranteed by Natural Path or any persons creating or transmitting the information. ALL SUCH INFORMATION IS PROVIDED “AS IS” WITHOUT WARRANTIES, EXPRESS 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, Natural Path AND/OR OTHER PERSONS CREATING OR TRANSMITTING THE INFORMATION WILL IN NO EVENT BE LIABLE TO ANY AFFILIATE OR ANYONE ELSE FOR ANY DIRECT, INDIRECT,CONSEQUENTIAL, INCIDENTAL, SPECIAL OR PUNITIVE DAMAGES THAT ARISE OUT OF THE USE OF OR ACCESS TO SUCH 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 Natural Path 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, Natural Path 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, Natural Path’s online and telephone reporting services and the reliance upon such information are 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 Natural Path’s online and telephone reporting services and your reliance upon the information.
SECTION 8 — ORDERING AND PAYMENT
8.1 — Affiliate Customers
Affiliates are encouraged to promote Natural Path’s Affiliate Customer Program to retail customers. Under the Affiliate Customer Program, an individual may sign up to have a pre-selected package of Natural Path products automatically delivered directly to his or her home or office each month. Affiliate Customers agree to automatically purchase Natural Path products or services each month.
8.2 — Purchasing Natural Path Products and Services
Each Affiliate should purchase his or her products and services directly from Natural Path. If an Affiliate purchases products or services from another Affiliate or any other source, the purchasing Affiliate will not receive the Business Volume that is associated with that purchase.
8.3 — Returned Checks
All checks returned by an Affiliate’s bank for insufficient funds will be re-submitted for payment. A $35.00 returned check fee will be charged to the account of the Affiliate. After receiving a returned check from a customer or an Affiliate, Natural Path may require all future orders to be paid by Credit Card, money order or cashier’s check. Any outstanding balance owed to Natural Path by an Affiliate for NSF checks and returned check fees will be withheld from subsequent bonus and commission checks.
8.4 — Restrictions on Third Party Use of Credit Cards and Checking Account Access
Affiliates shall not permit other Affiliates or customers to use his or her credit card, or permit debits to their checking accounts, to enroll or to make purchases from the company.
SECTION 9 — INACTIVITY AND CANCELLATION
9.1 — Effect of Cancellation
So long as an Affiliate remains active and complies with the terms of the Affiliate Agreement and these Policies and Procedures, Natural Path shall pay commissions to such Affiliate in accordance with the Rewards Program. An Affiliate’s bonuses and commissions constitute the entire consideration for the Affiliate’s efforts in generating sales and all activities related to generating sales (including building a Marketing Organization). Following an Affiliate’s non-renewal of his or her Affiliate Agreement, cancellation for inactivity, or voluntary or involuntary cancellation of his or her Affiliate Agreement (all of these methods are collectively referred to as “cancellation”), the former Affiliate shall have no right, title, claim or interest to the Marketing Organization which he or she operated, or any commission or bonus from the sales generated by the organization. An Affiliate whose business is cancelled will lose all rights as an Affiliate. This includes the right to sell Natural Path products and services and the right to receive future commissions, bonuses, or other income resulting from the sales and other activities of the Affiliate’s former Marketing Organization. In the event of cancellation, Affiliates agree to waive all rights they may have, including but not limited to property rights, to their former Marketing Organization and to any bonuses, commissions or other remuneration derived from the sales and other activities of his or her former Marketing Organization.
Following an Affiliate’s cancellation of his or her Affiliate Agreement, the former Affiliate shall not hold himself or herself out as a Natural Path Affiliate and shall not have the right to sell Natural Path products or services. An Affiliate whose Affiliate Agreement is canceled shall receive commissions and bonuses only for the last full pay period he or she was active prior to cancellation (less any amounts withheld during an investigation preceding an involuntary cancellation).
9.2 — Cancellation Due to Inactivity
Affiliates who, during a pay period, personally produce less than the minimum Personal Volume requirement set forth in the Rewards Program, will not receive a commission for the sales generated through their marketing organization for that pay period. If an Affiliate has not fulfilled his or her personal sales requirements for a period of three (3)consecutive calendar months (and thus become “inactive”), his or her Affiliate Agreement shall be canceled for inactivity. The cancellation will become effective on the day following the last day of the third month of inactivity. Written confirmation of the cancellation will not be provided by Natural Path.
9.3 — Involuntary Cancellation
An Affiliate’s violation of any of the terms of the Agreement, including any amendments that maybe made by Natural Path in its sole discretion, may result in any of the sanctions listed in Section 8.1, including the involuntary cancellation of his or her Affiliate Agreement. Cancellation shall be effective on the date on which written notice is mailed, return receipt requested, to the Affiliate’s last known address, or when the Affiliate receives actual notice of cancellation, whichever occurs first.
Natural Path reserves the right to terminate all Affiliate Agreements upon thirty (30) days written notice in the event that it elects to: (1) cease business operations; (2) dissolve as a corporate entity; or (3) terminate distribution of its products via direct selling.
9.4 — Voluntary Cancellation
A participant in this network-marketing plan has a right to cancel at any time, regardless of reason. Cancellation must be submitted in writing to the company at its principal business address. The written notice must include the Affiliate’s signature, printed name, address, and Affiliate I.D.Number. If an Affiliate has an Auto-Ship Agreement, the Affiliate’s Auto-Ship Agreement shall automatically terminate.
9.5 — Non-renewal
An Affiliate may also voluntarily cancel his or her Affiliate Agreement by failing to renew it on its anniversary date. The Company may also elect not to renew an Affiliate’s Agreement upon its anniversary date.
At the sole discretion of Natural Path the failure to renew on the one year anniversary date can result in termination and loss of access and privileges associated will any and all aspects of Natural Path membership.
SECTION 10 — DEFINITIONS
Active Affiliate — An Affiliate who satisfies the minimum Personal Volume requirements, as set forth in the Natural Path Rewards Program, to ensure that he or she is eligible to receive bonuses and commissions.
Affiliate Customer — A customer who has executed a Natural Path Affiliate Customer Agreement and who agrees to automatically purchase Natural Path products or services each calendar month.
Agreement — The contract between the Company and each Affiliate includes the Affiliate Application and Agreement, the Natural Path Policies and Procedures, the Natural Path Rewards Program, and the Business Entity Form (where appropriate), all in their current form and as amended by Natural Path in its sole discretion. These documents are collectively referred to as the “Agreement.”
Business Entity — A corporation, partnership, trust, limited liability Company, or other type of entity.
Business Entity Registration Form — A supplemental form that all Business Entities must submit with the Affiliate Agreement when enrolling as a Natural Path Affiliate.
Cancel — The termination of an Affiliate’s business. Cancellation may be either voluntary, involuntary, through non-renewal or inactivity.
Commissionable Products and Services — All Natural Path products and services on which commissions and bonuses are paid. Sales aids are not commission-able products.
Company — The term “Company” as it is used throughout the Agreement means The Natural Path
Downline —See “Marketing Organization” below.
Downline Activity Report — A report generated by Natural Path that provides critical data relating to the identities of Affiliates, sales information, and enrollment activity of each Affiliate’s Marketing Organization. This report contains confidential and trade secret information, which is proprietary to Natural Path.
Downline Leg — Each one of the individuals enrolled immediately underneath you and their respective marketing organizations represents one “leg” in your marketing organization.
End Consumer — A person who purchases Natural Path products or services for the purpose of personally using them rather than for resale to someone else.
Immediate Household — Heads of household and dependent family members residing in the same house.
Independent Natural Path Website — An Affiliate’s Natural Path-approved personal website that is hosted on non-Natural Path servers and has no official affiliation with Natural Path.
Level — The layers of downline Affiliates in a particular Affiliate’s Marketing Organization. This term refers to the relationship of an Affiliate relative to a particular upline Affiliate, determined by the number of Affiliates between them who are related by sponsorship. For example, if A sponsors B, who sponsors C, then C is on A’s second level.
Marketing Organization — The Affiliate Customers and Affiliates sponsored below a particular Affiliate.
Official Natural Path Material — Literature, audio or video tapes, CDs, DVDs, literature, audio or video tapes, CDs, DVDs, files, and other materials developed, printed, published and distributed by Natural Path to Affiliates.
Personal Production — Moving product to an end consumer for personal use.
Personal Volume (PV) — The commissionable value of products and services sold in a calendar month: (1) by the Company to an Affiliate; and (2) by the Company to the Affiliate’s personally enrolled Affiliate Customers.
Rank — The “title” that an Affiliate has achieved pursuant to the Natural Path Rewards Program.
Recruit — For purposes of Natural Path’s Conflict of Interest Policy (Section 3.9), 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 Natural Path Affiliate or Affiliate Customer to enroll or participate in another multilevel marketing, network marketing or direct sales opportunity. This conduct constitutes recruiting even if the Affiliate’s actions are in response to an inquiry made by another Affiliate or Affiliate Customer.
Resalable — Products and sales aids shall be deemed “resalable” if each of the following elements is satisfied: 1) they are unopened and unused; 2) packaging and labeling has not been altered or damaged;3) the product and packaging are in a condition such that it is a commercially reasonable practice within the trade to sell the merchandise at full price; 4) products are returned to Natural Path within one year from the date of purchase; 5) the product expiration date has not elapsed; and 6) the product contains current Natural Path labeling. Any merchandise that is clearly identified at the time of sale as nonreturnable, discontinued, or as a seasonal item, shall not be resalable. Notwithstanding the foregoing, unused or unsold DIGITAL PRODUCTS (SUBSCRIPTIONS) are refundable pursuant to this policy provided they were purchased within ninety (90) DAYS of the date of the cancellation of the Agreement.
Retail Customer — An individual who purchases Natural Path products or services from an Affiliate or through the Affiliate’s www.theNatural Pathproject.org Replicated Website.
Social Media — Any type of online media that invites, expedites or permits conversation, comment, rating, and/or user generated content, as opposed to traditional media, which delivers content but does not allow readers/viewers/listeners to participate in the creation or development of content, or the comment or response to content.
A replicated website system that Natural Path makes available for its Affiliates to use in support of their independent Natural Path businesses. The $30.00 subscription fee for theNatural Pathproject.org shall be paid upon joining. The annual renewal fee of $20.00 will be paid on the anniversary of the Affiliate’s membership.
Upline — This term refers to the Affiliate or Affiliates above a particular Affiliate in a sponsorship line up to the Company. Conversely stated, it is the line of Affiliates that links any particular Affiliate to the Company.