General
These Policies and Procedures, in their present form and as amended from time to time at LUMAXA's discretion, are incorporated into the Independent Lumaxa Entrepreneur Agreement. They are the terms and conditions of the Independent Entrepreneur's contract with LUMAXA. It is the responsibility of each Independent Entrepreneur to read, understand, adhere to, and ensure that he/she is aware of and operating under the most current version of these Policies and Procedures. You must also comply with the description of the Compensation Plan and honor all applicable laws in the country in which you operate your LUMAXA business.
The words "company" and "LUMAXA", when used in these documents, refer to LUMAXA, Inc., and the term "Distributor" means "Independent Entrepreneur". An Independent Entrepreneur is an independent contractor, not an employee of LUMAXA.
The purpose of the Independent Entrepreneur Agreement is: to define the relationship between LUMAXA and the Independent Entrepreneur; to set standards of acceptable business behavior; to assist Independent Entrepreneurs in building and protecting their business.
Changes - The Company may from time to time amend the terms and conditions of the Independent Entrepreneur Agreement, Policies and Procedures, Compensation Plan and Price List. Amendments shall be effective upon notification of the changes in official LUMAXA publications distributed to all active Independent Entrepreneurs.
Delays - LUMAXA shall not be responsible for delays and failures in performing its obligations due to circumstances beyond its reasonable control, such as strikes, labor difficulties, riots, war, fire, death, curtailment or interruption of a source of supply, government decrees or orders, etc.
Policies and Provisions Severable - If any provision of the Independent Entrepreneur Agreement as it currently exists or as may be amended is found to be invalid, illegal, or unenforceable for any reason, only the invalid provision will be severed from the Independent Entrepreneur Agreement; the remaining terms and provisions shall remain in full force and effect and shall be construed as if such invalid, illegal, or unenforceable provision never comprised a part of the Independent Entrepreneur Agreement.
Titles Not Substantive - The titles and headings to these Policies and Procedures are for reference purposes only and do not constitute, and shall not be construed as, substantive terms of the Independent Entrepreneur Agreement.
Waiver - LUMAXA never forfeits its right to require Independent Entrepreneur compliance with the Independent Entrepreneur Agreement or with applicable laws and regulations governing business conduct. Only in rare circumstances will a policy be waived, and such waivers will be conveyed in writing by the Compliance Officer or an officer of the company. The waiver will apply only to that specific case.
Becoming an Independent Entrepreneur - The requirements to become a Independent Lumaxa Entrepreneur: Be at least the age of majority in your country of residence; reside in a geographic area where LUMAXA has been approved for business; fully read and accept the LUMAXA Policies and Procedures, Full Compensation Plan, Income Disclaimers, Independent Lumaxa Entrepreneur Agreement, Terms of Use, Privacy Policy and Refund Policy; submit an original signed Independent Entrepreneur Application and Agreement to LUMAXA; and purchase a LUMAXA Starter Kit for a nominal cost (unless prohibited by law); as an independent contractor, assume all appropriate responsibilities for accounting for income tax, insurances and the like in respect of the Independent Entrepreneurship. LUMAXA reserves the right to accept or reject any application for any reason.
Business Kit - No person is required to purchase LUMAXA products to become an Independent Entrepreneur. However, to familiarize new Independent Entrepreneurs with LUMAXA products, services, sales techniques, sales aids, and other matters, LUMAXA requires new Independent Entrepreneurs to purchase a Business Kit except where prohibited by law. LUMAXA will repurchase any resalable Business Kits from Independent Entrepreneurs who terminate their Independent Entrepreneur Agreement within thirty (30) days.
Identification and Independent Entrepreneur Number - When LUMAXA receives and accepts an Independent Entrepreneur's original Application and Agreement, LUMAXA will assign a unique Independent Entrepreneur Number to that Independent Entrepreneur. Independent Entrepreneurs must use their Independent Entrepreneur Number whenever they call a Independent Lumaxa Entrepreneur Services Representative to place orders and track commissions and bonuses.
Independent Entrepreneur Benefits - Once LUMAXA accepts an Independent Entrepreneur's Application and Agreement, the benefits of the Compensation Plan and the Independent Entrepreneur Agreement are available to the new Independent Entrepreneur. These benefits include the right to: purchase LUMAXA products and services at the Independent Entrepreneur prices; participate in the LUMAXA Compensation Plan (receive bonuses and commissions, if eligible); sponsor other individuals as Customers or Independent Entrepreneurs into the LUMAXA business and thereby build a Downline Organization and progress through the LUMAXA Compensation Plan; receive LUMAXA literature and other LUMAXA communications; participate in LUMAXA-sponsored support, service, training, motivational, and recognition functions upon payment of appropriate charges, if applicable; participate in promotional and incentive contests and programs sponsored by LUMAXA for its Independent Entrepreneurs; Independent Entrepreneurs may retail LUMAXA products or services and profit from these sales.
Renewal of Independent Entrepreneurship - LUMAXA charges Independent Entrepreneurs an annual Independent Entrepreneurship renewal fee of $49.95 plus any applicable taxes. LUMAXA will automatically charge the fee to the Independent Entrepreneur's virtual account, credit card or nominated bank account on file with LUMAXA on the anniversary date of the Independent Entrepreneur's application. Independent Entrepreneurs without a sufficient balance in their virtual account, a credit card or nominated bank account on file with LUMAXA must renew by mailing a check or money order to LUMAXA. The annual renewal fee will: automatically renew your subscription to LUMAXA publications; renew your Independent Entrepreneur Agreement and maintain your line of sponsorship; and continue your entitlement to participate in LUMAXA's Compensation Plan; purchase LUMAXA products; enjoy LUMAXA service support programs; participate in company promotions, contests, and recognition; and attend Company events.
Operating a Independent Lumaxa Entrepreneurship
Actions of Household Members or Affiliated Individuals - If any member of an Independent Entrepreneur's immediate household engages in any activity which, if performed by the Independent Entrepreneur would violate any provision of the Independent Entrepreneur Agreement, such activity will be deemed a violation by the Independent Entrepreneur.
Adherence to the LUMAXA Compensation Plan - Independent Entrepreneurs must adhere to the terms of the LUMAXA Compensation Plan as set forth in official LUMAXA literature. Independent Entrepreneurs shall not offer the LUMAXA opportunity through, or in combination with, any other opportunity or unapproved method of marketing. Independent Entrepreneurs shall not require or encourage other current or prospective Customers or Independent Entrepreneurs to participate in LUMAXA in any manner that varies from the program as set forth in official LUMAXA literature. Independent Entrepreneurs shall not require or encourage other current or prospective Customers or Independent Entrepreneurs to execute any agreement or contract other than official LUMAXA agreements and contracts in order to become a Independent Lumaxa Entrepreneur. Similarly, Independent Entrepreneurs shall not require or encourage other current or prospective Customers or Independent Entrepreneurs to make any purchase from, or payment to, any individual or other entity to participate in the LUMAXA Compensation Plan, other than those purchases or payments identified as recommended or required in official LUMAXA literature.
Advertising
In general - Independent Entrepreneurs must avoid all discourteous, deceptive, misleading, illegal, unethical, or immoral conduct or practices in their marketing and promotion of LUMAXA, the LUMAXA opportunity, the Compensation Plan, and LUMAXA's products. Only those Independent Entrepreneurs who have achieved the rank of Red Diamond may produce individual sales, marketing, and support materials to market or promote LUMAXA, the LUMAXA opportunity, the Compensation Plan, LUMAXA's products, or their LUMAXA businesses.
All other Independent Entrepreneurs may only use sales aids and support materials produced or currently approved by LUMAXA. Sales, marketing and support materials include, but are not limited to, training and recruiting information, brochures, flyers, pamphlets, posters, postcards, letters, classified advertisements, etc. promoting LUMAXA's products and programs, as well as e-mail messages, voice mail message recordings, and Internet Web sites used to publicize LUMAXA, its products, services, or Compensation Plan.
Any Independent Entrepreneur who has achieved the rank of Red Diamond who desires to create his/her own promotional and marketing materials must submit a copy of the proposed materials to LUMAXA for review and approval before he/she may use the information to promote his/her business or the LUMAXA opportunity. Upon receipt of the proposed promotional material, LUMAXA will review the information to determine the appropriateness of the material's form and content. LUMAXA's review of the proposed promotional material will be subject to a review fee. LUMAXA will promptly notify in writing regarding the Company's decision to approve or disapprove the material for use in promoting and supporting his/her LUMAXA business activities. Only the sales, marketing and support materials that LUMAXA has expressly approved may be used.
Television and Radio - Independent Entrepreneurs may not advertise on television and radio under policy except LUMAXA's express written approval.
Media Inquiries - Independent Entrepreneurs must refer all media inquiries regarding LUMAXA to the LUMAXA Compliance Department. This will ensure that accurate and consistent information reaches the general public.
Trademarks and Copyrights - An Independent Entrepreneur may not use the LUMAXA trademark or trade name or corporate logo to promote their independent business. Rather, they must use the "Independent Entrepreneurs" logo to promote their business. A reproducible copy of the logo can be obtained from LUMAXA. However, this logo may only be used on personal stationery and specifically approved literature but not on clothing, signage, or motor vehicles. Independent Entrepreneurs may describe themselves as an "Independent Lumaxa Entrepreneurs" in the business pages of the telephone directory. Independent Entrepreneurs should not answer the telephone in any manner that might indicate or suggest that the caller has reached a LUMAXA corporate office. Independent Entrepreneurs may not record or reproduce materials from any LUMAXA corporate function, event, speech, etc. Independent Entrepreneurs may not record, reproduce, or copy any presentation or speech by any LUMAXA spokesperson, representative, speaker, officer, director, or other Independent Entrepreneurs. Independent Entrepreneurs may not reproduce or copy any recording of a LUMAXA- produced media presentation including audio tapes, videotapes, CDs, etc. Independent Entrepreneurs may not publish, or cause to be published, in any written or electronic media, the name, photograph or likeness, copyrighted materials, or property of individuals Independent Entrepreneur with LUMAXA without express written authorization from the individual and/or LUMAXA. Independent Entrepreneurs may not publish, or cause to be published, in any written form or electronic media, the copyrighted materials or property of LUMAXA, without express written authorization from LUMAXA.
Use of Independent Entrepreneur Name, Likeness, and Image - Independent Entrepreneur consents to LUMAXA's use of his/her name, testimonial (or other statements about LUMAXA, its products or opportunity in printed or recorded form, including translations, paraphrases, and electronic reproductions of the same), and image or likeness (as produced or recorded in photographic, digital, electronic, video or film media) in connection with advertising, promoting, and publicizing the LUMAXA opportunity or products, or any LUMAXA-related or -sponsored events.
Independent Entrepreneur claims and Representations
Product Claims - Independent Lumaxa Entrepreneurs may not make claims that LUMAXA products have therapeutic or curative properties except those contained in official LUMAXA literature. In particular, no Independent Entrepreneurs may make any claim that LUMAXA products are useful in the cure, treatment, diagnosis, mitigation, or prevention of any diseases. Such statements can be perceived
as medical or drug claims. Not only are such claims violate of the Independent Entrepreneur Agreement, they also violate the laws and regulations of the US and other jurisdictions.
Income Claims - Independent Entrepreneurs may not make income projections or claims or disclose their LUMAXA income (including the showing of checks, copies of checks, or bank statements) when presenting or discussing the LUMAXA opportunity or Compensation Plan, except as set forth in official LUMAXA literature.
Commercial Outlets - Independent Entrepreneurs may display and retail LUMAXA products in commercial outlets where professional services are the primary source of revenue and product sales are secondary. Approved service-oriented establishments may include (but are not limited to) health spas, beauty shops, and physicians' and chiropractors' offices. Unapproved retail-oriented establishments may include (but are not limited to) retail stores, Internet auction sites, and pharmacies. Independent Entrepreneurs are contracted to sell products directly to end consumers, not wholesale them to third party retail outlets.
Repackaging and Re-labelling Prohibited - Independent Entrepreneurs may not re-label or alter the labels on any LUMAXA products, information, materials, or programs in any way. Independent Entrepreneurs may not repackage or refill any LUMAXA products. LUMAXA products must be sold in their original containers only. Such re-labelling or repackaging would violate governing laws, which could result in severe criminal penalties. Civil liability may also result when the persons using the products suffer any type of injury or their property is damaged as a consequence of the repackaging or re-labelling of products.
Unauthorized Recruiting - As an independent contractor, Independent Lumaxa Entrepreneurs may participate in other direct selling or network marketing or multilevel marketing ventures (collectively, "multilevel marketing"), and Independent Entrepreneurs may engage in selling activities related to non-LUMAXA products and services, if they desire to do so. Although an Independent Entrepreneur may elect to participate in another multilevel marketing opportunity, he/she is prohibited from unauthorized recruiting activities, which include the following: recruiting or enrolling LUMAXA customers or Independent Entrepreneurs for other multilevel marketing business ventures, either directly or through a third party. This includes, but is not limited to, presenting or assisting in the presentation of other multilevel marketing business ventures to any LUMAXA Customer or Independent Entrepreneur, or implicitly or explicitly encouraging any LUMAXA Customer or Independent Entrepreneur to join other business ventures. It is a violation of this policy to recruit or enroll a LUMAXA Customer or Independent Entrepreneur for another multilevel marketing business, even if the Independent Entrepreneur does not know that the prospect is also a LUMAXA Customer or Independent Entrepreneur; producing any literature, tapes, or promotional material of any nature for another multilevel marketing business which is used by the Independent Entrepreneur or any third person to recruit LUMAXA Customers or Independent Entrepreneurs for that business venture; selling, offering to sell, or promoting any competing products or services to LUMAXA Customers or Independent Entrepreneurs. Any product or services in the same generic category as a LUMAXA product or service is deemed to be competing; offering LUMAXA products or promoting the LUMAXA Compensation Plan in conjunction with any non-LUMAXA business plan, opportunity, product, or incentive; offering any non-LUMAXA products or opportunities in conjunction with the offering of LUMAXA products or business plan or at any LUMAXA meeting, seminar, launch, convention, or other LUMAXA function; or where a prospective Independent Entrepreneur or Customer accompanies an Independent Entrepreneur to a LUMAXA meeting or function, no other Independent Lumaxa Entrepreneur may recruit the prospect to enroll in LUMAXA or any other multilevel marketing business for a period of fourteen (14) days or unless and until the Independent Entrepreneur who brought the prospect to the function advises the other Independent Lumaxa Entrepreneur that the prospect has elected not to enroll in LUMAXA and that the Independent Entrepreneur is no longer recruiting the prospect to enroll in LUMAXA, whichever occurs first. LUMAXA will immediately cancel the Independent Entrepreneurship of any Independent Entrepreneur who violates this provision. Violations of this policy are especially detrimental to the growth and sales of other Independent Entrepreneurs' LUMAXA businesses and to LUMAXA's business; where an Independent Entrepreneur participates in other multilevel marketing ventures they may not participate in LUMAXA's Leadership Bonus Program. Nor may they be invited to participate in LUMAXA leadership meetings, conferences, qualification seminars, and the like.
Post cancellation Solicitation Prohibited - A former Independent Entrepreneur shall not directly or through a third party solicit any Independent Lumaxa Entrepreneur or Customer to enroll in any direct sales, network marketing, or multilevel marketing program or opportunity for a period of one (1) year after the cancellation of an individual or entity's Independent Entrepreneur Agreement. This provision shall survive the expiration of the Independent Entrepreneur's obligations to LUMAXA, pursuant to the Independent Entrepreneur Agreement.
Downline Genealogy Reports - The LUMAXA Downline Genealogy Reports are confidential and contain proprietary business trade secrets. An Independent Entrepreneur may not use the reports for any purpose other than for developing their LUMAXA business. During any term of the Independent Entrepreneur Agreement and for a period of five (5) years after the termination or expiration of the Independent Entrepreneur Agreement between Independent Entrepreneur and LUMAXA, for any reason whatsoever, an Independent Entrepreneur shall not, on his/her own behalf or on behalf of any other person, partnership, association, corporation, or other entity: disclose any information contained in the reports to any third party; use the reports to compete with LUMAXA; or Recruit or solicit any Independent Entrepreneur or Customer listed on the reports to participate in other multilevel marketing ventures. This provision shall survive the termination or expiration of this Agreement.
Corporation, Partnerships, and Trusts - A corporation, partnership, or trust (collectively referred to in this section as an "Entity") may apply to be a Independent Lumaxa Entrepreneur by submitting its Certificate of Incorporation, Partnership Agreement, or trust documents (these documents are collectively referred to as the "Entity Documents") to LUMAXA along with a properly completed Corporation, Partnership DBA Registration Form. An Independent Entrepreneurship may change its status under the same sponsor from an individual to a partnership, corporation, or trust, or from one type of entity to another. To do so, the Independent Entrepreneur(s) must provide the entity documents and a properly completed Independent Entrepreneur Application and Agreement and the appropriate registration form. The Corporation, Partnership DBA Registration Form must be signed by all of the directors, shareholders, partners, trustees, or other individuals having ownership interest in the business. Members of the entity are jointly and severally liable for any indebtedness or other obligations to LUMAXA. As set forth herein, no individual may participate directly or indirectly in more than one Independent Entrepreneurship. It is the responsibility of those persons involved in the Entity to conform to the laws of the state in which their Entity is formed. LUMAXA reserves the right to approve or disapprove any Independent Entrepreneur Application and Agreement submitted by an Entity. For the purpose of recognition and rewards, LUMAXA will only recognize a maximum of two persons in the Entity. The Entity must nominate each year, at its Independent Entrepreneurship renewal time, the two nominees who may be the recipients of any recognition, rewards, trips, and the like which the entity becomes entitled to participate in.
Deceptive Practices - Independent Entrepreneurs must fairly and truthfully explain the LUMAXA products, opportunity, Compensation Plan, and Policies and Procedures to prospective Independent Entrepreneurs. This includes: Being honest and thorough in presenting material from the LUMAXA Compensation Plan to all potential Independent Entrepreneurs; making clear that income from the LUMAXA Compensation Plan is based on product sales and not merely on sponsoring other Independent Entrepreneurs; making estimates of profit that are based on reasonable predictions for what an average Independent Entrepreneur would achieve in normal circumstances; representing that past earnings in a given set of circumstances do not necessarily reflect future earnings; not misrepresenting the amount of expenditure that an average Independent Entrepreneur might incur in carrying on the business; not misrepresenting the amount of time an average Independent Entrepreneur would have to devote to the business to achieve the profit estimated, and not stating that profits or earnings are guaranteed for any individual Independent Entrepreneur; never stating or inferring that you will build a Downline Organization for anyone else; never stating that profits or earnings are guaranteed for an individual Independent Entrepreneur; and never stating that any consumer, business, or government agency has approved or endorsed the LUMAXA products or its Compensation Plan; never participating in downline purchasing (placing a sales order in a Retail Account other than where the sale was generated).
Independent Contractor Status - Independent Entrepreneurs are independent contractors and are not purchasers of a franchise or business opportunity. The agreement between LUMAXA and its Independent Entrepreneurs does not create an employer/employee relationship, agency, partnership, or joint venture between the Company and the Independent Entrepreneur. All Independent Entrepreneurs are responsible for paying their own income and employment taxes. Independent Entrepreneurs will not be treated as employees
for any purpose including, but not limited to, workers compensation, superannuation, or insurance. Each Independent Entrepreneur is encouraged to establish his/her own goals, hours, and methods of sale, so long as he/she complies with applicable laws and the terms and conditions of the Independent Entrepreneur Agreement.
Business Insurance Coverage - You may obtain insurance coverage for your business activities.
Product Liability Coverage - LUMAXA maintains insurance through Nutra Pharma to protect the Company and Independent Entrepreneurs against product liability claims. The insurance policy contains a "Vendors Endorsement" which extends coverage to Independent Entrepreneurs so long as they are marketing LUMAXA products in accordance with applicable laws and regulations and the Independent Entrepreneur Agreement. LUMAXA's product liability policy does not extend coverage to claims that arise as a result of an Independent Entrepreneur's misconduct in marketing the products.
International - Independent Entrepreneurs may sell and promote LUMAXA's products, opportunity, and services or recruit or enroll any potential Independent Entrepreneur or customer only in countries in which LUMAXA is approved for business, as announced in official LUMAXA communications. If an Independent Entrepreneur desires to conduct business in an authorized country other than the one in which they are an Independent Entrepreneur, he/ she must comply with all the applicable laws and regulations for that country.
Adherence to Laws and Ordinances - You must obey all laws that apply to your business.
Independent Entrepreneurship limited to 1 - An Independent Entrepreneur may operate, receive compensation from, or have an ownership interest, legal or equitable, as a sole proprietorship, partner, shareholder, trustee, or beneficiary, in only one Independent Lumaxa Entrepreneurship. However, notwithstanding this rule, your spouse may become an Independent Entrepreneur and operate a second Independent Entrepreneurship as long your spouse's Independent Entrepreneurship is placed below one of your Independent Entrepreneurships and not in a cross line sales organization. The second Independent Entrepreneurship must be a bona fide Independent Entrepreneurship that is operated by the person listed on the agreement and not by the owner of the first Independent Entrepreneurship.
Sale, Transfer, or Assignment of Independent Entrepreneurship - An Independent Entrepreneur may not sell, transfer, or assign their Independent Entrepreneurship rights to any person or entity without LUMAXA's express written approval. To obtain approval, you must: be an Independent Entrepreneur in good standing as determined by LUMAXA in its sole discretion; before any transfer will be approved by LUMAXA, any debt obligations the selling Independent Entrepreneur has with LUMAXA must be satisfied; the transferring Independent Entrepreneur must be in good standing and not in violation of any of the terms of the Independent Entrepreneur Agreement or these Policies and Procedures, to transfer his/her Independent Entrepreneurship; the combining of Independent Entrepreneurships is not permitted. LUMAXA will not approve the transfer of an Independent Entrepreneurship to any individual or Entity that is a current Independent Entrepreneur or who has an ownership interest in any Independent Entrepreneurship. Similarly, LUMAXA will not approve the transfer of an Independent Entrepreneurship to any individual or Entity that has previously had any ownership interest in or operated, a Independent Lumaxa Entrepreneurship; no individual Business Centers may be transferred separately from the Independent Entrepreneurship. If an Independent Entrepreneur wishes to transfer his/her Independent Entrepreneurship, all Business Centers must be included in the transfer; the transferring Independent Entrepreneur must notify the LUMAXA Compliance Department of his/her intent to transfer the Independent Entrepreneurship by completing and submitting a signed Transfer of Distributorship and Independent Entrepreneur Application Form. No changes in line of sponsorship can result from the transfer of an Independent Entrepreneurship; the transferee must be eligible to become a Independent Lumaxa Entrepreneur and be acceptable to LUMAXA in every respect.
Separation of an Independent Entrepreneurship - If Independent Entrepreneurs wish to dissolve their jointly held Independent Entrepreneurship, they must do so in such a way as to not disturb the income or interests of their Upline and Downline Organizations. Independent Entrepreneurs should consider the following when deciding whether or not to dissolve a jointly held Independent Entrepreneurship: if a jointly owned Independent Entrepreneurship is dissolved, anyone of the joint owners may operate the Independent Entrepreneurship, but the other joint owners must relinquish their rights to, and interests in, the Independent Entrepreneurship; LUMAXA cannot divide a Downline Organization, nor can it split commission or bonus checks between the joint owners; if a jointly owned Independent Entrepreneurship is dissolved, the individual(s) who relinquished ownership in the original Independent Entrepreneurship may apply as new Independent Entrepreneurs under any Sponsor but may not purchase or join an existing Independent Entrepreneurship.
Succession - If an Independent Entrepreneur dies or becomes incapacitated, his/her rights to commissions, bonuses, and Downline Organization, together with all Independent Entrepreneur responsibilities, will pass to his/her successor(s). Upon death or incapacitation, the successor(s) must present the LUMAXA
Compliance Department with proof of death or incapacitation, along with proof of succession, such as a Grant of Probate or an Enduring Power of Attorney, and a properly completed Independent Entrepreneur Application and Agreement. You may inherit and retain another Independent Entrepreneurship even though you currently own or operate an Independent Entrepreneurship. A non-Independent Entrepreneur who acquires a Independent Entrepreneurship through succession must purchase a current Business Starter Kit.
Taxes - Independent Lumaxa Entrepreneurs must comply with all relevant taxation legislation. Independent Entrepreneurs should seek professional advice from their own accountant or tax advisor as to how to keep proper business records and account for tax aspects of their independent business. Independent Entrepreneurs' LUMAXA income may be subject to income tax and so must be properly accounted for in annual income tax returns. Independent Entrepreneurs conducting their LUMAXA business in a business-like manner may also be entitled to deduct certain expenses incurred in earning their LUMAXA income. Such expenses should be properly recorded and evidenced with receipts.
Telephone and Email Solicitation - The use of any automated telephone solicitation equipment in connection with the marketing or promotion of LUMAXA, its products, or the LUMAXA opportunity is strictly prohibited. The use of "boiler-room" telemarketing operations to sell products or services over the telephone, or to recruit Independent Entrepreneurs, is strictly prohibited. Independent Entrepreneurs are also forbidden from sending unsolicited e-mail messages or "spamming" to sell products or to recruit Independent Entrepreneurs. Independent Entrepreneurs should also make themselves familiar with relevant privacy legislation.
Territories - There are no exclusive territories for marketing LUMAXA products or services, nor shall any Independent Entrepreneur imply or state that he/she has an exclusive territory to market LUMAXA products or services.
Trade Shows and Expositions - Independent Entrepreneurs may display and/or sell LUMAXA products at trade shows and expositions, but may not display or sell LUMAXA products at swap meets, garage sales, flea markets, or farmers' markets as these events are not conducive to the image LUMAXA wishes to portray. LUMAXA cannot supply inventory on consignment to Independent Entrepreneurs operating stands at such events. All literature displayed at the event must be official LUMAXA literature and must clearly identify the individual(s) as Independent Entrepreneurs.
Transfer of Sponsorship
Conflicting Enrolments - Every prospective Independent Entrepreneur has the ultimate right to choose his/her own Sponsor. As a general rule, the first Independent Entrepreneur who does meaningful work with a prospective Independent Entrepreneur is considered to have first claim to sponsorship. Basic tenets of common sense and consideration should govern any dispute that may arise. In the event that a prospective Independent Entrepreneur or any Independent Entrepreneur on behalf of a prospective Independent Entrepreneur, submits more than one Independent Entrepreneur Application and Agreement to LUMAXA, listing a different Sponsor on each, the Company will only consider valid the first Independent Entrepreneur Application and Agreement that it receives, accepts, and processes. If there is any question concerning the sponsorship of an Independent Entrepreneur, the final decision will be made by LUMAXA.
Cross-line Raiding - LUMAXA will not permit any change in the line of sponsorship except in the following circumstances: where an Independent Entrepreneur has been fraudulently or unethically induced into joining LUMAXA; where an incorrect placement was made due to an Independent Entrepreneur error, a change in the line of sponsorship can be made to correct the error where a request for a change is made within 10 days of enrolment. If you make such a request, you must also submit the written consent of your Sponsor and that person's Sponsor along with the required placement change fee. If at the time of the request you have any downline organization in place, no change will be permitted in the line of sponsorship. In the event that such a change is approved, commissions and bonuses earned will be adjusted accordingly. In no case will a change of placement be approved where a signed application has not been received by LUMAXA; if you terminate your Independent Entrepreneurship in writing you may rejoin under the Sponsor of your choice after a period of six (6) months; following termination of your Independent Entrepreneurship, you may participate as a Customer during the six (6) month period. In the event you terminate your Independent Entrepreneurship, you forfeit all rights, bonuses, and commissions under your previous line of sponsoring. You may not avoid compliance with this policy through the use of DBAs, assumed names, corporations, partnerships, trusts, spouse names, fictitious ID numbers, etc. If you have been "inactive" (i.e., no purchases or sales of LUMAXA products or participation in any other form as an Independent Entrepreneur) for a period of twelve (12) successive months, you may terminate your; Independent Entrepreneurship in writing and rejoin immediately under the Sponsor of your choice; cross-line raiding is strictly prohibited. "Cross-line raiding" is defined as the enrolment or attempted enrolment of an individual or Entity that already has a current Independent Entrepreneur Agreement on file with LUMAXA, or who has had such agreement within the preceding six (6) calendar months within a different line of sponsorship. The use of trade names, DBAs, assumed names, corporations, partnerships, trusts, spouse names, fictitious ID numbers or any other vehicle to circumvent this policy is prohibited. Independent Entrepreneurs may not demean, discredit, or invalidate other Independent Lumaxa Entrepreneurs in an attempt to entice another Independent Entrepreneur to become part of the first Independent Entrepreneur's Downline Organization.
Responsibilities of Independent Entrepreneurs and Sponsors
Ongoing Supervision, Training, and Sales - Any Independent Entrepreneur who sponsors another Independent Entrepreneur into LUMAXA must train the new Independent Entrepreneur in product knowledge, effective sales techniques, the Compensation Plan, and the Policies and Procedures. Independent Entrepreneurs must also supervise and monitor Independent Entrepreneurs in their Downline Organization to ensure they conduct business professionally and ethically, promote sales properly, and provide quality customer service. As an Independent Entrepreneur progresses through the various levels of leadership, his/her responsibilities to train and motivate downline Independent Entrepreneurs will increase.
Non-Disparagement - In setting the proper example for their downline, Independent Entrepreneurs must not disparage other Independent Lumaxa Entrepreneurs, LUMAXA's Products, the Compensation Plan, or the Company's employees. Such disparagement constitutes a material breach of these Policies and Procedures.
Holding Applications or Orders - All Independent Entrepreneurs must forward to LUMAXA any forms and applications they receive from other Independent Entrepreneurs or applicant Independent Entrepreneurs, or Customers or applicant Customers, on the next business day after which the forms or applications are signed.
Reporting Policy Violations - Independent Entrepreneurs should report any observed violations of a policy violation to the LUMAXA Compliance Department.
Sales Requirements
Product Sales - The LUMAXA Compensation Plan is based upon the sale of LUMAXA products and services to end consumers. Independent Entrepreneurs must fulfil specified personal and Downline Organization sales requirements (as well as meet other responsibilities set forth in these Policies and Procedures and Compensation Plan) in order to be eligible for bonuses, commissions, and advancement to higher levels of rank and achievement. The following sales requirements must be satisfied in order for Independent Entrepreneurs to be eligible for commissions: a minimum of seventy percent (70%) of an Independent Entrepreneur's orders must be for Customers or end users. The sales volume of an Independent Entrepreneur's personally enrolled Customers shall be included for the purposes of determining compliance with the seventy percent (70%) requirement. Independent Entrepreneurs may not purchase additional product until at least seventy percent (70%) of the previous order has been sold to end consumers; Independent Entrepreneurs are required to furnish their person to person Retail Customers with a receipt which specifies the date of sale, the amount of sale, the items purchased, and the LUMAXA satisfaction guarantee. Independent Entrepreneurs must retain all retail sales receipts for a period of two (2) years and furnish them to LUMAXA at the Company's request. Records documenting the online purchases of Independent Entrepreneurs' Customers at the Retail Site will be maintained by LUMAXA.
Retail Customer Sales - Independent Entrepreneurs may sell LUMAXA products at any price they choose. All Independent Entrepreneurs must provide their Retail Customers with an official LUMAXA sales receipt. These receipts outline the Customer Refund Warranty for LUMAXA products, as well as any consumer protection rights. Sales made through the Independent Entrepreneur's online Retail Website will be made at the suggested retail price.
Excessive Purchases of Inventory Prohibited - LUMAXA strictly prohibits the purchase of products in unreasonable amounts solely for the purpose of qualifying for commissions, bonuses, or advancement in the Compensation Plan. Independent Entrepreneurs may not purchase more than they can reasonably resell or consume in any four- week rolling period, nor encourage others to do so. Independent Entrepreneurs are not required to carry inventory of products or sales aids. Independent Entrepreneurs who do so may find building a Downline Organization somewhat easier because of the decreased response time in filling customer orders or in meeting a new Independent Entrepreneur's needs. Each Independent Entrepreneur must make his/her own decision with regard to these matters.
Deposits - No monies should be paid to or accepted by Independent Entrepreneurs for a sale except at the time of product delivery.
Bonuses and Commissions
Bonus and Commission Cycles - LUMAXA pays commissions on weekly and monthly cycles to the Independent Entrepreneur's Virtual Account located in the ILE Back Office. An Independent Entrepreneur must review his/her commissions and report any errors or discrepancies to LUMAXA within ten (10) days from the date of the commission payment. Errors or discrepancies which are not brought to LUMAXA's attention within the 10 day period will be deemed waived by the Independent Entrepreneur.
Adjustment of Bonuses and Commissions - Independent Entrepreneurs earn commissions and bonuses based on product sales to End Consumers. Accordingly, LUMAXA will adjust commissions and bonuses earned from any sale when the Independent Entrepreneur or any other End Consumer returns the sold product for a refund. LUMAXA will deduct the sales volume attributable to the returned product from the Upline
Independent Entrepreneur's group volume within the first two (2) weeks after the refund is given.
Loss of Rights to Commissions - You must be an active Independent Entrepreneur and in compliance with the terms of the Independent Entrepreneur Agreement to qualify for commissions and bonuses.
Unclaimed Commissions - Independent Entrepreneurs who provide LUMAXA with incomplete or invalid bank account information will have their commission and bonus retained as a credit. Any unclaimed credit will be held in trust for 12 months, during which time LUMAXA may periodically notify the Independent Entrepreneurs in writing of their credit balance.
Product Guarantees, Returns, and Inventory Repurchase
Product Exchange Guarantee - LUMAXA warrants the quality of its products and shall exchange any defective product. Anyone returning a damaged or defective product must complete the Product Exchange or Return Form.
Return Policy
Retail Customers - LUMAXA obligates its Independent Entrepreneurs to honor the Company's 100%, unconditional, 30-day, money-back guarantee to all Retail Customers. If for any reason a Retail Customer is dissatisfied with any LUMAXA product, he/she may return the product to the Independent Entrepreneurs from whom the product was purchased within thirty (30) days from the date of purchase for a replacement, exchange, or full refund of the purchase price. If the Retail Customer requests a refund, the Independent Entrepreneurs who sold the product to the Retail Customer must immediately refund the Retail Customer's purchase price. (Retail Customers must return merchandise to the Independent Entrepreneurs who sold it to them; LUMAXA will not accept returned merchandise directly from Retail Customers.) The Independent Entrepreneurs, in turn, should complete a Customer Product Return Form and forward the form along with the original sales receipt and returned merchandise to LUMAXA within ten (10) days of the Customer's return. In the case of an exchange, LUMAXA will then replace the returned merchandise with like product and ship it to the Independent Entrepreneurs. All Retail Customers must be provided with a copy of an official LUMAXA sales receipt at the time of the sale.
Customers - LUMAXA offers Customers and Retail Customers who order directly from an official LUMAXA Website a 100%, thirty (30) day, money back guarantee on their initial product order. If for any reason a Customer is dissatisfied with any LUMAXA product, he/she may return that product to the Company within thirty (30) days for replacement, exchange, or full refund of the purchase price. If a Independent Entrepreneur returns merchandise equal to, or exceeding $100 of Sales Volume, this will be deemed a Voluntary Cancellation of the Independent Entrepreneur Agreement . For all other returns, the Company shall repurchase the inventory pursuant to the terms of this Agreement. Moreover, the Company will adjust the appropriate Independent Entrepreneurs' Sales Volume.
Independent Entrepreneurs - If an Independent Entrepreneur elects to cancel his/her Independent Entrepreneurship during the ten (10) day period immediately following his/her enrolment, LUMAXA will refund 100% of the price of the Business Starter Kit and all products purchased as part of the Independent Entrepreneur's initial order (excluding shipping) and processing fees provided the Business Starter Kit and products are resalable. The cancelling Independent Entrepreneur must return the products and the entire Business Starter Kit to LUMAXA, shipping prepaid, along with a letter explaining that he/she wishes to terminate his/her Independent Entrepreneurship and receive a refund. Please note that this 100% refund (less shipping) does not apply once an Independent Entrepreneur places his/her second product order If an Independent Entrepreneur returns his/her Business Started Kit and/or merchandise equal to, or exceeding $100 Sales Volume, for a refund, the return constitutes a Voluntary Cancellation of his/her Independent Entrepreneur Agreement. Moreover, the Company will adjust the appropriate Independent Entrepreneurs' Sales Volume.
Procedures for all Returns and Repurchases - To receive a refund, exchange, or replacement on product purchased an Independent Entrepreneur must: obtain a Return Number (RTNs#) from the Independent Entrepreneur Services Department. This number must accompany all returned products; return the product with the original confirmation of order to LUMAXA; use proper shipping carton(s) and packaging materials to return the product to LUMAXA. The Independent Entrepreneur is responsible for tracing their return shipment should that be necessary.
If an Independent Entrepreneur returns product from a Retail Customer, he/she must: send the product to LUMAXA within ten (10) days of the customer's return. The package must be accompanied by a completed Customer Product Return Form, a copy of the original sales receipt, and the unused portion in the original container; only the Customer or Independent Entrepreneur who ordered the product from LUMAXA may return it; LUMAXA is not liable for items lost in transit.
Dispute Resolution and Disciplinary Proceedings between Independent Entrepreneurs
Grievances and Complaints - When an Independent Entrepreneur has a grievance or complaint with another Independent Entrepreneur regarding any practice or conduct in relationship to their respective LUMAXA businesses, the complaining Independent Entrepreneur should first discuss the problem with the other Independent Entrepreneur. If this does not resolve the problem, the complaining Independent Entrepreneur should report the problem to his/her upline to resolve the issue at a local level. If the matter cannot be resolved, it must be reported in writing to the LUMAXA Compliance Department. The Compliance Department will review the complaint and make a final decision. The complaint should identify specific instances of alleged improper conduct and, to the extent possible, identify the relevant dates on which the event(s) complained of took place, the location(s) where they occurred, and all persons who have firsthand knowledge of the improper conduct.
Compliance Department Review - Upon receipt of a written complaint, the LUMAXA Compliance Department will investigate the matter, review the applicable policies, and render a decision on how the dispute shall be resolved. The Compliance Department may also issue disciplinary sanctions consistent with the provisions of this Agreement
Disputes between LUMAXA and Independent Entrepreneurs
Mediation and arbitration - All unresolved disputes and claims relating to LUMAXA, its Compensation Plan, its Products, the rights and obligations of its Independent Entrepreneurs and LUMAXA, or any other claim or cause of action relating to product purchase(s) or performance, either of an Independent Entrepreneur or of LUMAXA under the Independent Entrepreneur Agreement, shall first be put before a mediator acceptable to both parties for resolution. Each party shall bear its own costs in the mediation. Should mediation fail to resolve the dispute then it shall be put before arbitration in Palm Beach County, Florida, USA. Each party to the arbitration shall be responsible for their own costs, including legal and filing fees. This agreement to mediate and, failing mediation, arbitrate will survive any cancellation or expiration of the Independent Entrepreneur Agreement. Nothing in these Policies and Procedures shall prevent LUMAXA from applying to and obtaining from any court having jurisdiction a writ of attachment, temporary injunction, preliminary injunction, permanent injunction, or other available relief to safeguard and protect LUMAXA's interest prior to, during, or following the filing of any arbitration or other proceeding, or pending the rendering of a decision or award in connection with any arbitration or other proceeding. The existence of any Independent Entrepreneur claim or cause of action against LUMAXA does not preclude LUMAXA from enforcing the Independent Entrepreneur's covenants and agreements contained in the Independent Entrepreneur Agreement.
Jurisdiction, Venue, and Choice of Law - The jurisdiction and venue of any matter pursuant to this agreement shall reside in Palm Beach County, Florida, USA.
Disciplinary Actions - Violation of any of the terms and conditions of the Independent Entrepreneur Agreement, or any illegal, fraudulent, deceptive, or unethical business conduct by an Independent Entrepreneur, may result, at LUMAXA's discretion, in one or more of the following sanctions: a written warning, clarifying the meaning and application of a specific policy or procedure, and advising that a continued breach ill result in further sanctions; probation, which may include requiring an Independent Entrepreneur to take remedial action and will include follow-up monitoring by LUMAXA to ensure compliance with the Agreement; withdrawal or denial of an award or recognition, or restricting participation in LUMAXA-sponsored events for a specified period of time or until the Independent Entrepreneur satisfies certain specified conditions; suspension of certain privileges of Independent Entrepreneurship, including but not limited to placing a product order, participating in LUMAXA programs, progressing in the Compensation Plan, or participating as a Sponsor (including participating as an International Sponsor), for a specified period of time or until the Independent Entrepreneur satisfies certain specified conditions; withholding commissions or bonuses for a specified period of time or until the Independent Entrepreneur satisfies certain specified conditions; imposing fair and reasonable fines or other penalties in proportion to actual damages incurred by LUMAXA and as permitted by law; and/or terminating an Independent Entrepreneurship.
Ordering
Ordering Methods - Independent Entrepreneurs may place orders through the Internet, or through the Autoship Program. Keep a copy of the order form for your records. Payment may be made by credit card, bank check, money order or personal check.
Autoship Program - Independent Entrepreneurs and Customers in good standing may participate in the LUMAXA Autoship Program. An Independent Entrepreneur may enroll in this program through their Independent Entrepreneur Application Retail Website, identifying the products you wish LUMAXA to automatically send to you each four-week rolling period. The credit card or bank account from which you authorize payment will be automatically charged the amount of the order plus applicable shipping. Independent Entrepreneurs must ensure that they have adequate funds in their account the week prior to the processing of their Autoship order.
Purchasing LUMAXA Products - Each Independent Entrepreneur must purchase his/her products directly from LUMAXA in order to receive the sales volume credits Independent Entrepreneur with that purchase.
Back Order Policy - As a general rule, LUMAXA will not back order out-of-stock items. However, LUMAXA may back order Autoship items, if necessary.
Shipping Discrepancies and Damage Claims - Failure to notify LUMAXA of any shipping discrepancy or damage within thirty (30) days of shipment will cancel an Independent Entrepreneur's right to request a correction. Follow the procedure for correcting a shipping discrepancy or damage claim as outlined on the Independent Entrepreneur Product Exchange or Return Form.
Payment and Shipping
Methods of Payment - All forms and authorizations must be accompanied by the Independent Entrepreneur's signature.
Bank check or Money Order - Make payable to LUMAXA for the full amount of your order, including shipping and handling charges. Independent Entrepreneurs will be charged an administration and bank fee for any checks that is returned unpaid. This will be in addition to any charge made by the Independent Entrepreneur's bank.
Personal check - LUMAXA does accept personal checks as payment for first, initial orders. However, the Check must not be stale or post-dated. Any Check returned unpaid to LUMAXA may immediately suspend payment privileges by personal Check. Failure to promptly resolve a returned Check may result in termination. Any uncollected amount may be deducted from future commissions. LUMAXA may choose to authorize your personal Check through a Check guarantee service. In the event the authorization is attempted and denied by the service, the order will not be accepted.
Credit Cards - LUMAXA accepts VISA, MasterCard, Bankcard, Diners Club, and American Express. In the event that the charge is declined, the order will not be accepted. Using someone else's credit card without their express, written permission is prohibited and may be grounds for involuntarily cancellation of your Independent Entrepreneurship.
Returned Checks, Insufficient Funds, and Declined Credit - All Checks returned unpaid by the bank will incur a charge made up of recovery of the bank's charge and a handling fee. All future orders from that Independent Entrepreneur must be accompanied by a money order or bank Check. Any outstanding balance owed to LUMAXA will be deducted from subsequent commission or bonus. Failure to resolve any outstanding balance owed to LUMAXA may result in the involuntary cancellation of Independent Entrepreneurship.
Chargeback Abuse Policy - Purchases will appear on your credit/debit card statement as "Nyloxin or Nutra Pharma Corp". You agree not to file a credit card or debit card dispute or chargeback with regard to any purchase and instead abide by the dispute resolution procedures outlined herein. In the event that you breach this agreement and file a dispute or chargeback, upon a resolution in our favor of the chargeback by either the credit card issuing bank, the credit card processor or by VISA or MASTERCARD, you agree to reimburse us for any costs incurred in researching and responding to such chargeback, including without limitation, our actual costs paid to the credit card processor or our banks, other third parties, and the reasonable value of the time of our employees and owners spent on the matter, as determined in our discretion in good faith. You further agree that all dispute resolution procedures below will be deemed waived by you, and that these amounts will be added to the original amount of the order, and that this total amount will then be immediately due and payable. If your chargeback is upheld, you agree to pay all of the same costs, in addition to the original purchase price. In the event that a chargeback is placed or threatened on a purchase, we also reserve the right to report the incident for inclusion in chargeback abuser database(s) of our choosing and in our sole discretion. The information reported will include name, email address, order date, order amount, IP address, full address, and phone number. Being listed on such databases may make it more difficult or even impossible for you to use (any of) your credit card(s) on future purchases with us or other merchants. Chargeback abusers wishing to be removed from the database shall make payment to us for any outstanding amount owed to us + $50 for processing and handling by wire transfer or such other means as we may require.
Chargeback/Cost Recovery Policy and Procedures - The purpose of this chargeback recovery policy is not to create revenue for the Company, but to recover operating expenses incurred from protecting the company's financial well-being from those individuals who would take financial advantage of our network instead of utilizing our easy cancellation policy. This policy creates a means of feedback, ensures cost recovery, supports the goals of the Company, and allows everyone to share in the success of the Company.
What is a chargeback? When a bank forcibly reverses a credit card transaction, returning funds to the cardholder, it is known as a chargeback. Chargebacks are usually issued when fraudulent purchases have been made on a person's credit card. However, consumers may request a chargeback for nearly any reason by simply disputing a charge with your Card Issuer; as a result, it is possible to accidentally commit "friendly fraud."
Independent Entrepreneur Services
Changes to the Independent Entrepreneurship - Each Independent Entrepreneur must immediately notify LUMAXA of all changes to the information contained on the Independent Entrepreneur Application and Agreement. Independent Entrepreneurs may modify their existing Independent Entrepreneur Agreement by submitting a written request, a properly executed Independent Entrepreneur Application and Agreement, and appropriate supporting documentation.
Addition of Co-applicants - When adding a co-applicant to an existing Independent Entrepreneurship, LUMAXA requires both a written request and a properly completed Independent Entrepreneur Application and Agreement containing the applicant's and co- applicant's signatures. The modifications permitted within the scope of this paragraph do not include a change of sponsorship.
Commission Statements/tax Invoices - Commission Statements/Tax Invoices are provided for all active Independent Entrepreneurs receiving a commission Check in your ILE Back Office.
Errors or Questions - In the event an Independent Entrepreneur has questions about or believes that any errors have been made regarding commissions, bonuses, Downline Genealogy Reports, orders, or charges, the Independent Entrepreneur must notify LUMAXA within thirty (30) days of the date of the purported error or incident in question. LUMAXA will not be responsible for any error, omission, or problem not reported within thirty (30) days.
Resolving Problems - If you have any questions regarding shipments, orders, commissions and bonuses, or the Compensation Plan, please write or call the LUMAXA Support Services.
Inactivity and Cancellation Policies - Independent Entrepreneurs who do not meet the Personal Sales Volume requirements specified in the LUMAXA Compensation Plan may not receive a commission and may lose accumulated Sales Volume for the sales generated through their Downline Organization.
Involuntary Cancellation - An Independent Entrepreneur's violation of any of the terms of the Independent Entrepreneur Agreement, including any amendments which may be made by LUMAXA in its sole discretion from time to time, constitutes a material breach of the Independent Entrepreneur Agreement and may result, at LUMAXA's option, in any of the Disciplinary Actions listed herein, including cancellation
of his/her Independent Entrepreneurship. Involuntary Cancellation of an Independent Entrepreneurship will result in the Independent Entrepreneur's loss of all rights to his/her Downline Organization and any bonuses and commissions generated thereby. An Independent Entrepreneur whose Agreement is involuntarily cancelled shall receive commissions and bonuses only for the last full calendar week prior to termination. When an Independent Entrepreneurship is involuntarily cancelled, the Independent Entrepreneur will be notified by certified mail at the address on file with the Company. Cancellation is effective on the date on which written notice is mailed via certified mail, return receipt requested, to the Independent Entrepreneur's last known address or when the Independent Entrepreneur receives actual notice of cancellation, whichever occurs first. In the event of such Involuntary Cancellation, the Independent Entrepreneur must immediately cease to representing himself/herself as a Independent Lumaxa Entrepreneur.
The Independent Entrepreneur may appeal the termination to the LUMAXA Compliance Department. The Independent Entrepreneur's appeal must be in writing and must be received by the company within fifteen (15) calendar days of the date of LUMAXA's cancellation letter. If LUMAXA does not receive the appeal within the fifteen-day period, the cancellation will be final. The Independent Entrepreneur must submit all supporting documentation with his/ her appeal correspondence. The written appeal will be reviewed by the Compliance Department. If the Independent Entrepreneur files a timely appeal of termination, the Compliance Department will review and reconsider the termination, consider any other appropriate action, and notify the Independent Entrepreneur in writing of its decision. This decision of the Compliance Department will be final. An Independent Entrepreneur whose Independent Entrepreneur Agreement is involuntarily cancelled may reapply to become an Independent Entrepreneur twelve (12) calendar months from the date of cancellation. Any such Independent Entrepreneur wishing to reapply must submit a letter to the LUMAXA Compliance Department setting forth the reasons why he/she believes LUMAXA should allow him or her to operate an Independent Entrepreneurship. It is within LUMAXA's sole discretion whether to permit such an individual to again operate a LUMAXA business.
Written Cancellation - An Independent Entrepreneur may cancel his/her Agreement with LUMAXA at any time and for any reason by providing written notice to LUMAXA indicating his/her intent to discontinue his/her Independent Entrepreneurship status. The written notice must include the Independent Entrepreneur's signature, printed name, address, and appropriate identification number.
Effect of Cancellation - Following an Independent Entrepreneur's voluntary or involuntary cancellation, such former Independent Entrepreneur shall have no right, title, claim, or interest to the Downline Organization which he/she operated or any bonus and/or commission from the sales generated by the organization. Following an Independent Entrepreneur's voluntary or involuntary cancellation, the former Independent Entrepreneur shall not hold himself or herself out as a Independent Lumaxa Entrepreneur shall not have the right to sell LUMAXA products or services, must remove any LUMAXA sign from public view, and must discontinue using any other materials bearing any LUMAXA logo, trademark, or service mark. An Independent Entrepreneur who is voluntarily cancelled will receive commissions and bonuses only for the last full calendar week prior to his/her cancellation. An Independent Entrepreneur whose Agreement is involuntarily cancelled will receive commissions and bonuses only for the last full calendar week prior to cancellation, unless monies were withheld by the Company during an investigation period. If an investigation of the Independent Entrepreneur's conduct results in his/her involuntary cancellation, he/she shall not be entitled to recover withheld commissions and bonuses.
Definitions
Active Independent Entrepreneur - An Independent Entrepreneur who satisfies the minimum Personal Sales Volume requirements as set forth in the LUMAXA Compensation Plan.
Independent Entrepreneur - An individual who has executed an Independent Entrepreneur application and agreement which has been accepted by LUMAXA. Independent Entrepreneurs are required to meet certain qualifications and are responsible for the training, motivation, support, and development of the Independent Entrepreneurs in their respective Downline Organizations. Independent Entrepreneurs are entitled to purchase LUMAXA products at Independent Entrepreneur prices, enroll Customers and new Independent Entrepreneurs, and take part in all Company Independent Entrepreneur programs.
Independent Entrepreneur Agreement - The term Independent Entrepreneur Agreement, as used in the Policies and Procedures, refers to the Independent Entrepreneur Application and Agreement, LUMAXA's Policies and Procedures, and the Compensation Plan.
Business Starter Kit - A selection of LUMAXA training materials and business support literature that each new Independent Entrepreneur purchases. The Business Starter Kit is sold to Independent Entrepreneurs at LUMAXA's cost.
Cancellation - Termination of an individual's Independent Entrepreneurship. Cancellation may be either voluntary or involuntary
Involuntary Cancellation - Termination of an Independent Entrepreneurship which is initiated by LUMAXA.
Voluntary Cancellation - The termination of an Independent Entrepreneurship instituted by the Independent Entrepreneur who elects to discontinue his/her affiliation with LUMAXA for any reason.
Commissionable Products - A LUMAXA products on which commissions and bonuses are paid. Business Starter Kit and sales aids are not commissionable products.
Downline Organization - An Independent Entrepreneur's Downline Organization consists of all Independent Entrepreneurs below him/her.
End Consumer - A person who purchases LUMAXA products for the purpose of personally consuming them.
Four-Week Rolling Period - The four (4) Fridays after an Independent Entrepreneur places a product order. If an Independent Entrepreneur places an order on a Friday, the Friday on which the order is placed counts as the first of the four (4) Fridays in the Independent Entrepreneur's volume period. The maintenance of an Independent Entrepreneur's active status during a volume period is critical to the Independent Entrepreneur's eligibility to earn bonuses and commissions. When the required Sales Volume or more are produced, count four (4) weeks on the calendar to place your next order to remain qualified.
Genealogy Report - A report generated by LUMAXA that provides critical data relating to the identities of Independent Entrepreneurs and sales information of each Independent Entrepreneur's Downline Organization. This report contains proprietary trade secret information.
Group Sales Volume - The commissionable volume of LUMAXA products generated by an Independent Entrepreneur's Downline Organization. Group Sales Volume does not include the Personal Sales Volume of the subject Independent Entrepreneur.
Left Side Group Sales Volume (GSV) - The commissionable volume of products sold in the left downline leg of a particular Dual Team Foundation.
Right Side Group Sales Volume (GSV) - The commissionable volume of products sold in the right downline leg of a particular Dual Team Foundation.
Immediate Household - An Independent Entrepreneur, his or her spouse or defacto, and dependants.
Level - The layers of downline Independent Entrepreneurs in a particular Independent Entrepreneur's Downline Organization. This term refers to the relationship of an Independent Entrepreneur relative to a particular upline Independent Entrepreneur, determined by the number of Independent Entrepreneurs between them who are related by sponsorship.
Official LUMAXA Material - Literature, audio or video tapes, and other materials developed, printed, published, or distributed by LUMAXA.
Personal Sales Volume (PSV) - The commissionable value of products purchased by an Independent Entrepreneur.
Re-saleable - Goods shall be deemed "re-saleable" if each of the following elements is satisfied: they are unopened and unused; packaging and labelling has not been altered or damaged; the product and packaging are in a condition which permits the Company to sell the merchandise at full Independent Entrepreneur or Customer; products are returned to LUMAXA within ninety (90) days from the date of the original order; the product expiration date is at least three (3) months away; the product contains current LUMAXA labelling; and the product is listed in the current LUMAXA price list.
Retail Customer - A person who orders LUMAXA products through a Independent Lumaxa Entrepreneur for consumption.
Sponsor - An Independent Entrepreneur who enrolls a new Independent Entrepreneur or Preferred Customer and is listed as the Sponsor on the Independent Entrepreneur Application and Agreement. As the term implies, the Sponsor has a responsibility to assist those he/she brings into the business.
Titled Independent Entrepreneur - An Independent Entrepreneur who has received commission and a title (i.e., Ruby, Emerald, Diamond….Red Diamond).
Upline - The term refers to the Independent Entrepreneur or Independent Entrepreneurs above a particular Independent Entrepreneur in a sponsorship line to the company. Conversely stated, it is the line of Sponsors that links any particular Independent Entrepreneur to the Company.