Policies and Procedures
MOMENTUM NETWORK POLICIES AND PROCEDURES
Effective September 1, 2023
SECTION 1 – INTRODUCTION
1.1 CODE OF ETHICS
1.2 POLICIES INCORPORATED INTO INDEPENDENT MOMENTUM PARTNER AGREEMENT
1.3 CHANGES TO THE INDEPENDENT MOMENTUM PARTNER AGREEMENT, POLICIES PROCEDURES, OR COMPENSATION PLAN
1.4 DELAYS
1.5 POLICIES AND PROVISIONS SEVERABLE
1.6 WAIVER
SECTION 2 – BECOMING AN INDEPENDENT MOMENTUM PARTNER
2.1 REQUIREMENTS TO BECOME AN INDEPENDENT MOMENTUM PARTNER
2.2 NEW INDEPENDENT MOMENTUM PARTNER REGISTRATION BY INTERNET OR FACSIMILE
2.3 INDEPENDENT MOMENTUM PARTNER BENEFITS
SECTION 3 – INCOME DISCLOSURE POLICY
SECTION 4 – ADVERTISING
4.1 ADHERENCE TO THE MOMENTUM NETWORK COMPENSATION PLAN
4.2 USE OF SALES AID
4.3 INTELLECTUAL PROPERTY
4.4 WEB POLICY
4.5 ADVERTISED PRICE
4.6 GENERIC BUSINESS ADVERTISEMENTS
4.7 MEDIA AND MEDIA INQUIRIES
4.8 UNSOLICITED EMAIL AND FAX COMMUNICATION
SECTION 5 – OPERATING A MOMENTUM NETWORK BUSINESS
5.1 BUSINESS ENTITIES
5.1.1 Changes to a Business Entity
5.1.2 Change of Sponsor
5.1.3 Change of Placement
5.2 UNAUTHORIZED CLAIMS AND ACTION
5.2.1 Indemnification
5.2.2 Endorsement of Momentum Network Services
5.3 CONFLICTS
5.3.1 Non-Solicitations
5.3.2 Sale of Competing Goods or Services
5.3.3 Targeting Other Direct Sellers5.3.4 Privacy and Confidentiality
5.3.5 The Data Management Rule
5.4 CROSS SPONSORING
5.5 GOVERNMENTAL APPROVAL OR ENDORSEMENT
5.6 IDENTIFICATION
5.7 INCOME TAXES
5.8 INDEPENDENT CONTRACTOR STATUS
5.9 BONUS BUYING
5.10 STACKING
5.11 ONE MOMENTUM PARTNER BUSINESS PER INDEPENDENT MOMENTUM PARTNER
5.12 SUCCESSION
5.13 SALE, TRANSFER, OR ASSIGNMENT OF A MOMENTUM PARTNER BUSINESS
5.14 SEPARATION OF A MOMENTUM PARTNER BUSINESS
5.15 SPONSORING
5.16 CUSTOMERS THAT BECOME INDEPENDENT MOMENTUM PARTNERS
SECTION 6 – RESPONSIBILITIES OF INDEPENDENT MOMENTUM PARTNERS
6.1 CHANGE OF ADDRESS, TELEPHONE, EMAIL ADDRESS
6.2 SPONSORING INDEPENDENT MOMENTUM PARTNER RESPONSIBILITIES
6.2.1 Initial Training
6.2.2 Ongoing Training Responsibilities
6.3 NON-DISPARAGEMENT
6.4 REPORTING POLICY VIOLATIONS
SECTION 7 – BILLING
7.1 BILLING
SECTION 8 – BONUSES AND COMMISSIONS
8.1 COMMISSION QUALIFICATIONS
8.2 BONUS BUYING PROHIBITED
8.3 REPORTS
8.4 ADMINISTRATION FEES
8.5 COMMISSION PAYMENT DELAY
SECTION 9 – DISPUTE RESOLUTION AND DISCIPLINARY PROCEEDINGS
9.1 DISCIPLINARY SANCTIONS
9.2 MEDIATION
9.3 ARBITRATION
9.4 GOVERNING LAW, JURISDICTION, AND VENUE
SECTION 10 – EFFECT OF CANCELLATION
10.1 EFFECT OF CANCELLATION AND TERMINATION
10.2 NON-RENEWAL
SECTION 11 – DEFINITIONS
SECTION 1 – INTRODUCTION
1.1 – Code of Ethics
Momentum Partner (hereafter “Momentum Partner” or “the Company”) is a values-based company that prides itself on the quality and character of its Independent Momentum Partners.
The following guidelines help ensure a uniform standard of excellence throughout our organization. Every Independent Momentum Partner is expected to practice the following ethical behaviors:
- Respect every person I meet while doing Momentum Partner related business.
- Conduct myself and my business in an ethical, moral, legal, and financially sound manner.
- Avoid activities that would bring disrepute to Momentum Partner.
- Refrain from making discouraging or disparaging claims toward other Independent Momentum Partners.
- Avoid negative language and slanderous statements.
- Provide support and encouragement to customers for a successful experience with Momentum Partner.
- Correctly represent all bonus/compensation plans and the income potential.
- Abide by all of Momentum Partner’s Policies & Procedures now and as amended in the future.
1.2 – Policies Incorporated Into Independent Momentum Partner Agreement
These Policies and Procedures (“Policies”), in their present form and as amended at the sole discretion of Momentum Partner, are incorporated into, and form an integral part of, the Momentum Partner Independent Momentum Partner Agreement (hereafter “Independent Momentum Partner Agreement”).
When the term “Agreement” is used, it collectively refers to the Momentum Partner Independent Momentum Partner Agreement, these Policies, and the Momentum Partner Compensation Plan.
1.3 – Changes to the Independent Momentum Partner Agreement, Policies and Procedures, or Compensation Plan
Momentum Partner reserves the right to amend the Agreement and the prices of its Momentum Partner Services due to changes in federal, state, and local laws, as well as the business environment.
Notification of amendments shall appear in Official Momentum Partner Materials, effective upon publication through various methods such as:
- Posting on Momentum Partner’s website
- E-mail distribution
- Publication in Momentum Partner’s newsletter
- Product inserts
- Any other commercially reasonable method
1.4 – Delays
Momentum Partner shall not be responsible for delays and failures in performance due to circumstances beyond its reasonable control.
1.5 – Policies and Provisions Severable
If any provision of the Agreement is found to be invalid or unenforceable, only the invalid portion(s) shall be severed, and the remaining terms shall remain in full force and effect.
1.6 – Waiver
The Company never waives its right to insist on compliance with the Agreement and applicable laws.
No failure of Momentum Partner to exercise any right or power under the Agreement shall constitute a waiver of its right to demand compliance.
Waivers can only be effectuated in writing by an authorized officer of the Company.
SECTION 2 – BECOMING AN INDEPENDENT MOMENTUM PARTNER
2.1 – Requirements to Become an Independent Momentum Partner
To become a Momentum Partner Independent Momentum Partner, each applicant must:
- Be of the age of majority in his or her state of residence.
- Reside in the United States or other countries officially opened by Momentum Partner.
- Have a valid Social Security Number or Federal Tax Identification Number.
- Submit a properly completed and signed Independent Momentum Partner Agreement to Momentum Partner electronically or via fax.
2.2 – New Independent Momentum Partner Registration by the Internet and Facsimile
A prospective Independent Momentum Partner may self-enroll on the sponsor’s website. In such an event, instead of a physically signed Independent Momentum Partner Agreement, Momentum Partner will accept the agreement by accepting the “electronic signature,” stating that the new Independent Momentum Partner has accepted the terms and conditions of the Independent Momentum Partner Agreement. Please note that such an electronic signature constitutes a legally binding agreement between the Independent Momentum Partner and Momentum Partner. Faxed agreements must include both the front and back of the Independent Momentum Partner Agreement.
2.3 – Independent Momentum Partner Benefits
Once an Independent Momentum Partner Agreement has been accepted by Momentum Partner, the benefits of the Compensation Plan and the Independent Momentum Partner Agreement are available to the new Independent Momentum Partner. These benefits include the right to:
- Sell Momentum Partner services.
- Participate in the Momentum Partner Compensation Plan (receive bonuses and commissions, if eligible).
- Sponsor other individuals as customers or Independent Momentum Partners into the Momentum Partner business and thereby build an organization and progress through the Momentum Partner Compensation Plan.
- Receive periodic Momentum Partner literature and other Momentum Partner communications.
- Participate in Momentum Partner-sponsored support service training, motivational and recognition functions.
- Participate in promotional and incentive contests and programs sponsored by Momentum Partner for its Independent Momentum Partners.
SECTION 3 – INCOME DISCLOSURE POLICY
In an effort to conduct best business practices, Momentum Partner has developed the Income Disclosure Statement (IDS). The Momentum Partner IDS is designed to convey truthful, timely, and comprehensive information regarding the income that Momentum Partner Independent Partners earn.
To accomplish this objective, a copy of the IDS must be presented to:
- All prospective Independent Momentum Partners
- Anyone when the Compensation Plan is presented or discussed
- Any situation where an income claim or earnings representation is made
The terms “income claim” and/or “earnings representation” (collectively “income claim”) include:
- Statements of average earnings
- Statements of non-average earnings
- Statements of earnings ranges
- Income testimonials
- Lifestyle claims
- Hypothetical claims
Examples of “statements of non-average earnings” include:
- “Our number one Independent Momentum Partner earned over a million dollars last year.”
- “Our average ranking Independent Momentum Partner makes five thousand per month.”
An example of a “statement of earnings ranges” is:
“The monthly income for our higher-ranking Independent Momentum Partners is ten thousand dollars on the low end to thirty thousand dollars a month on the high end.”
In any meeting that is open to the public in which the Compensation Plan is discussed, or any type of income claim is made, you must provide every prospective Independent Momentum Partner with a copy of the IDS.
Copies of the IDS may be printed or downloaded without charge from the company website at www.momentumnetwork.net.
SECTION 4 – ADVERTISING
4.1 – Adherence to the Momentum Partner Compensation Plan
Independent Momentum Partners must adhere to the terms of the Momentum Partner Compensation Plan as set forth in Official Momentum Partner Materials. Independent Momentum Partners shall not offer the Momentum Partner opportunity through, or in combination with, any other system, program, or method of marketing other than that specifically stated in Official Momentum Partner Materials. Independent Momentum Partners shall not require or encourage other current or prospective customers or Independent Momentum Partners to participate in Momentum Partner in any manner that varies from the program as set forth in Official Momentum Partner Materials. Independent Momentum Partners shall not require or encourage other current or prospective customers or Independent Momentum Partners to execute any agreement or contract other than official Momentum Partner agreements and contracts in order to become a Momentum Partner Independent Momentum Partner. Similarly, Independent Momentum Partners shall not require or encourage other current or prospective customers or Independent Momentum Partners to make any purchase from, or payment to, any individual or other entity to participate in the Momentum Partner Compensation Plan other than those purchases or payments identified as recommended or required in Official Momentum Partner Materials.
4.2 – Use of Sales Aids
To promote both the services and the opportunity Momentum Partner offers, Independent Momentum Partners must use the sales aids and support materials produced by Momentum Partner. If Momentum Partner Independent Momentum Partners develop their own sales aids and promotional materials (which includes Internet advertising), notwithstanding Independent Momentum Partners’ good intentions, they may unintentionally violate any number of statutes or regulations affecting a Momentum Partner business. These violations, although they may be relatively few in number, could jeopardize the Momentum Partner opportunity for all Independent Momentum Partners. Accordingly, Independent Momentum Partners must submit all written sales aids, promotional materials, advertisements, websites, and other literature to the Company for Company’s approval prior to use. Unless the Independent Momentum Partner receives specific written approval to use the material, the request shall be deemed denied. All Independent Momentum Partners shall safeguard and promote the good reputation of Momentum Partner and the service plans provided by its preferred partners. The marketing and promotion of Momentum Partner, the Momentum Partner opportunity, the Compensation Plan, and Momentum Partner services shall be consistent with the public interest and must avoid all discourteous, deceptive, misleading, unethical, or immoral conduct or practices.
4.3 – Intellectual Property
Momentum Partner will not allow the use of its trade names, trademarks, designs, or symbols outside of corporate produced and approved sales aids by any person, including Momentum Partner Independent Momentum Partners, without prior written authorization from Momentum Partner. Furthermore, no Independent Momentum Partner may use, publish, reproduce, advertise, sell, or display in any manner the name, picture or likeness, or voice of another Independent Momentum Partner without prior written consent from the named Independent Momentum Partner. This consent must be on file with Momentum Partner’s Compliance department prior to any use.
4.4 – Web Policy
A. General
It is your responsibility to ensure that your online marketing activities are truthful, not deceptive, and do not mislead customers or potential Momentum Partners in any way. Websites and online promotion activities and tactics that mislead or are deceptive, regardless of intent, will not be allowed. This may include any representation that you are an authorized representative for Momentum, spam linking (or blog spam), unethical search engine optimization (SEO) tactics, misleading click-through ads (i.e., having the display URL of a PPC campaign appear to resolve to an official Momentum Partner Corporate Site when it goes elsewhere), unapproved banner ads, and unauthorized press releases. Momentum will be the sole determinant of truthfulness regarding whether specific activities are misleading or deceptive.
B. Domain Names, Email Addresses, and Online Aliases
You cannot use or register domain names, email addresses, and/or online aliases that could cause confusion or be misleading or deceptive, making individuals believe or assume that the communication is from or is the property of Momentum by appearing as the sender of an email.
Examples of improper use include but are not limited to: [email protected]; www.momentumpartnerdirect.com; www.momentumpartnerjoin.com; www.myspace.com/momentumpartner; www.momentumpartnerpresident.com, or derivatives as described herein.
Examples of permitted URLs, email addresses, and online aliases might appear as follows: myspace.com/ilovemomentumpartner; johnsmith.com/momentumpartner, etc.
Determinations regarding what could cause confusion, mislead, or be considered deceptive are at the sole discretion of Momentum. If you have a question about whether your chosen name is acceptable, you may submit it to [email protected] for review before use.
C. Approved Independent Momentum Partner Websites
The term Independent Momentum Partner Website refers to the Independent Momentum Partner website offered by Momentum or an approved vendor to Independent Momentum Partners. The term Social Media website refers to any site that is not specifically prohibited within the terms and conditions of this Agreement, such as Facebook.com, MySpace.com, Twitter.com, YouTube.com, personal blogs, or other personal websites.
D. Online Classifieds
You may not use online classifieds (including Craigslist) to list, sell, or promote specific Momentum services. You may use online classifieds (including Craigslist) for prospecting, recruiting, sponsoring, and informing the public about the Momentum opportunity provided you follow the other requirements of this agreement, such as identifying yourself as an independent representative of Momentum, only using approved images and versions of any trademarked logos, and without using fraudulent or misleading product or income claims.
E. Online Retailing
Approved Independent Financial Director websites are intended to provide Independent Financial Directors with the tools and means to generate leads, prospect business, communicate with others, sell products and services, and otherwise advance their Momentum business. You may not sell Momentum services on any other online retail store or e-commerce site, nor may you enlist or knowingly allow a third party (customer) to sell Momentum products on any online retail store or e-commerce site.
Social Media sites such as Facebook may also be used to promote your Momentum business. You must provide approved Momentum links to your Independent Financial Director replicated website for sales and order processing. All online sales of Momentum products must take place and be processed through the Independent Financial Director Replicated website (or corporate site).
F. Banner Advertising
You may place banner advertisements on a website provided you use Momentum-approved templates and images. All banner advertisements must link to your Independent Financial Director Website. You may not use blind ads or web pages that make non-compliant product or income claims that are ultimately associated with Momentum products or the Momentum business opportunity.
G. 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 you make on blogs, forums, guest books, etc. must be unique, informative, and relevant.
H. Social Networking Sites
Network Marketing companies are built on a foundation of building relationships through person-to-person contact. Social networking websites, such as Facebook, Google +, Twitter, and LinkedIn, are natural extensions of this foundation. Social networking websites can provide useful tools for a Independent Momentum Partner to build and maintain contacts.
You may advertise your Momentum business on your social networking website if the advertisement is limited to the social networking sharable content provided by Momentum, posting a video link, flyer, or other approved marketing tool found by clicking on the Marketing tab in the Independent Momentum Partner Back Office, or by posting material approved by the Compliance Department. While you are encouraged to advertise Momentum on your social networking website, you may not use Momentum or a confusingly similar name as your account name, group name, page name, discussion name, or other social networking presence, and may not use the Momentum logo, the Momentum ‘Shield,’ or a Momentum service picture as your profile picture.
If you use a social networking website to market Momentum Network, you must identify yourself as a Momentum Partner and not represent yourself as an official representative or employee of Momentum Network. If you participate in any network marketing company other than Momentum Network, you may not advertise both Momentum Network and the other network marketing opportunity on the same social networking profile. Momentum Network considers advertising other network marketing opportunities to your network of Momentum Network contacts contained in a list of social networking contacts to constitute improper solicitation and cross sponsoring. Momentum Network maintains its own social networking profiles that permit our Momentum Partners to join pages created by Momentum Network Corporate to effectively communicate with the Momentum Network Community. You may not, however, create your own groups and pages using the Momentum Network name, trademarks, logos, or brands.
If your compliance has not been met above, you agree that you will immediately take down a non-compliant site at the request of Momentum Network. Appeals regarding compliance may be submitted after the site has been taken down. Appeals should be directed to the email address [email protected].
I. YouTube and Other Video Hosting Websites
Momentum Network maintains an Official Momentum Network Account on YouTube to help our Momentum Partners disseminate the official videos we produce. These videos may also be found by clicking on Opportunity or Services of your Momentum Network provided website or obtained in your back-office business center for downloading individually on your computer (when you do not have Internet Access). We encourage you to link to or embed the YouTube videos on your own Independent Website or social networking pages. You may only use the Corporate Approved YouTube videos in their original form and may not alter them in any way. Independent Financial Directors may upload Corporate Approved videos produced by Momentum Network on social platforms or Independent Websites provided that your website has been pre-approved by the Compliance Dept. Directing a prospective lead to a website with one of our videos can be an effective tool for you to begin a discussion about the Momentum Network services and the Momentum Network business opportunity. You may not create your own accounts on YouTube and other video hosting websites to post Momentum Network Corporate Approved videos. Momentum Network has ensured that videos are available in many locations, which allows Momentum Network to keep the most recent and effective videos available for all of our Momentum Partners. If you create your own Momentum Network video, including a video testimonial, you must receive written approval from the Compliance Department prior to distributing the video.
J. Sponsored Links / Pay-Per-Click (PPC) Ads
Sponsored links or pay-per-click ads (PPC) are acceptable. The destination URL must be to your Independent Momentum Partner Website. The display URL must also be to your Independent Momentum Partner Website and must not portray any URL that could lead the user to assume they are being led to a Momentum Network Corporate site or be inappropriate or misleading in any way.
K. External Websites
You are allowed external websites to promote your Momentum Network business and the Momentum Network opportunity. If you wish to use an external website, you must do the following:
a.)Identify yourself as a Momentum Partner for Momentum Network.
b.)Use only the approved images and wording authorized by Momentum Network.
c.)Adhere to the branding, trademark, and image usage policies described in this document.
d.)Agree to modify your website to comply with current or future Momentum Network policies.
You are solely responsible and liable for your own website content, messaging, claims, and information and must ensure your website appropriately represents and enhances the Momentum Network brand and adheres to all Momentum Network guidelines and policies. Additionally, your website must not contain disingenuous popup ads or promotions or malicious code. Decisions and corrective actions in this area are at Momentum Network’s sole discretion. You are encouraged to use the approved Momentum Network images that are available through the business suite.
L. Momentum Partner Image Mandate
When using a Social Media or external website, it must contain:
a.)A Momentum Partner Logo from the approved templates.
b.)Your Name and Title (example: Joan Arc, Momentum Partner, Momentum Network).
c.)A link to your Momentum Partner Replicated website.
Although Momentum Network brand themes and images are desirable for consistency, anyone landing on your page needs to clearly understand that they are at a Momentum Partner site, and not a Momentum Network Corporate page.
SECTION 5 – OPERATING A MOMENTUM NETWORK BUSINESS
5.1 – Business Entities
A corporation, partnership, or trust (collectively referred to in this section as a “Business Entity”) may apply to be a Momentum Network Partner by submitting a Momentum Network Partner Application and Agreement along with its Certificate of Incorporation, Articles of Organization, Partnership Agreement, or trust documents (these documents are collectively referred to as the “Entity Documents”) to Momentum Network. A Momentum Network business may change its status under the same Sponsor from an individual to a partnership, corporation, or trust, or from one type of entity to another. To do so, the Momentum Partner(s) must provide the Entity Documents to Momentum Network. The Momentum Partner Application must be signed by all of the shareholders, partners, or trustees. Members of the entity are jointly and severally liable for any indebtedness or other obligation to Momentum Network.
5.1.1 – Changes to a Business Entity
Each Momentum Partner must immediately notify Momentum Network of any changes to the type of business entity they utilize in operating their Momentum Network business, and the addition or removal of business associates. A Momentum Network business may change its status under the same sponsor from an individual to a partnership, corporation, or trust, or from one type of entity to another. The Momentum Partner Agreement form must be signed by all of the shareholders, partners, or trustees. Members of the entity are jointly and severally liable for any indebtedness or other obligation to Momentum Network.
5.1.2 – Change Of Sponsor
To protect the integrity of all marketing organizations and safeguard the hard work of all Momentum Partners, Momentum Network rarely allows changes in sponsorship, with the rare exception of direct line changes (meaning placement is not affected). A direct line change request must be made by submitting a completed Sponsor Change Request Form within a seven (7) day period from the date of enrollment and must come from the current listed sponsor.
5.1.3 – Change Of Placement
A request for a change of placement must be submitted within seven (7) days of the date of enrollment and must be requested by the current listed sponsor. A Momentum Partner can only be moved inside of the same sponsor’s organization. If approved, a Momentum Partner is placed in the first available open bottom position on the date that the change is made. Momentum Partners who have earned commissions or achieved rank are not eligible for placement changes. Please note that decisions made for any change request (sponsor or placement) are at the sole discretion of Momentum Network.
5.2 – Unauthorized Claims and Action
5.2.1 – Indemnification
A Momentum Partner is fully responsible for all of their verbal and/or written statements made regarding Momentum Network services and the Compensation Plan, which are not expressly contained in Official Momentum Network Materials. Momentum Partners agree to indemnify Momentum Network and hold it harmless from any and all liability including judgments, civil penalties, refunds, attorney fees, court costs, or lost business incurred by Momentum Network as a result of the Momentum Partner’s unauthorized representations or actions. This provision shall survive the cancellation of the Momentum Partner Agreement.
5.2.2 – Endorsements of Momentum Network Services
No claims as to any services offered by Momentum Network may be made except those contained in Official Momentum Network Materials.
5.3 – Conflicts
5.3.1 – Non-Solicitations
Momentum Partners 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, Momentum Partners may not directly or indirectly recruit other Momentum Partners or Customers, that are not personally sponsored by them, for any other Network Marketing business. Following the cancellation of a Momentum Partner Agreement, and for a period of one (1) calendar year thereafter, a former Momentum Partner may not recruit any Momentum Partner or Customer to another Network Marketing business.
5.3.2 – Sale of Competing Goods or Services
During this agreement and for 6 months thereafter, Momentum Partners must not sell, or attempt to sell, any competing non-Momentum Network programs. Any program, product, service, or direct selling opportunity in the same generic categories as the Momentum Network services are deemed to be competing, regardless of differences in cost, quality, or other distinguishing factors.
5.3.3 – Targeting Other Direct Sellers
Should Momentum Partners engage in solicitation and/or enticement of members of another direct sales company to sell or distribute Momentum Network services, they bear the risk of being sued by the other direct sales company. If any lawsuit, arbitration, or mediation is brought against a Momentum Partner alleging that they engaged in inappropriate recruiting activity of its sales force or Customers, Momentum Network will not pay any of the Momentum Partner’s defense costs or legal fees, nor will Momentum Network indemnify the Momentum Partner for any judgment, award, or settlement.
5.3.4 – Privacy and Confidentiality
All Momentum Partners are required to abide by the Company’s Privacy Policy regarding Momentum Partner and customer information.
5.3.5 – The Data Management Rule
The Data Management Rule is intended to protect the Line of Sponsorship (LOS) for the benefit of all Momentum Partners, as well as Momentum Network. LOS information is information compiled by Momentum Network that discloses or relates to all or part of the specific arrangement of sponsorship within the Momentum Network business, including, without limitation, Momentum Partner lists, sponsorship trees, and all Momentum Partner information generated therefrom, in its present and future forms. The Momentum Network LOS constitutes a commercially advantageous, unique, and proprietary trade secret (Proprietary Information), which it keeps proprietary and confidential and treats as a trade secret. Momentum Network is the exclusive owner of all Proprietary Information, which is derived, compiled, configured, and maintained through the expenditure of considerable time, effort, and resources by Momentum Network and its Momentum Partners. Through this Rule, Momentum Partners are granted a personal, non-exclusive, non-transferable, and revocable right by Momentum Network to use Proprietary Information only as necessary to facilitate their business as contemplated under these Policies and Procedures. The Company reserves the right to deny or revoke this right, upon reasonable notice to the Momentum Partner stating the reason(s) for such denial or revocation, whenever, in the reasonable opinion of Momentum Network, such is necessary to protect the confidentiality or value of Proprietary Information. All Momentum Partners shall maintain Proprietary Information in strictest confidence and shall take all reasonable steps and appropriate measures to safeguard Proprietary Information and maintain the confidentiality thereof.
5.4 – Cross Sponsoring
Actual or attempted cross-group sponsoring of any sideline Momentum Partner to another leg of business within Momentum Network or to any other Network Marketing Opportunity is strictly prohibited. “Cross-group sponsoring” is defined as the enrollment, indirect or otherwise, of an individual or entity that already has a current customer number or Momentum Partner Agreement on file with Momentum Network or who has had such an agreement within the preceding six (6) calendar months. The use of a spouse’s or relative’s name, tradenames, DBAs, assumed names, corporations, partnerships, trusts, Federal Tax Identification Numbers, or fictitious identification numbers to circumvent this policy is prohibited. This policy shall not prohibit the transfer of a Momentum Network business in accordance with the “Sale, Transfer or Assignment of Momentum Network Business” section of these Policies and Procedures.
5.5 – Governmental Approval or Endorsement
Neither federal nor state regulatory agencies nor officials approve or endorse any direct selling or network marketing companies or programs. Therefore, Momentum Partners shall not represent or imply that Momentum Network or its Compensation Plan have been “approved,” “endorsed,” or otherwise sanctioned by any government agency.
5.6 – Identification
All Momentum Partners are required to provide their Social Security Number, Federal Employer Identification Number, or their Government Issued ID Number to Momentum Network either on the Momentum Partner Agreement or at the company’s request. Upon enrollment, the Company will provide a unique Momentum Partner Identification Number to the Momentum Partner by which they will be identified. This number will be used to place orders and track commissions and bonuses.
5.7 – Income Taxes
Every year, Momentum Network will provide an IRS Form 1099 MISC (Non-employee Compensation) earnings statement to each U.S. resident as required by the Internal Revenue Service. Each Momentum Partner is responsible for paying local, state, and federal taxes on any income generated as a Momentum Partner. If a Momentum Network business is tax-exempt, the Federal Tax Identification Number must be provided to Momentum Network. Any Momentum Partner that does not provide a valid social security number is subject to the federal backup withholding laws, and 28% of their commissions and bonus will be withheld and submitted to the IRS.
5.8 – Independent Contractor Status
You are an independent contractor. You are not a representative, employee, partner, or in a joint venture with the Company. You may not represent yourself as anything other than a Momentum Partner. You have no authority to bind Momentum Network to any obligation. You are responsible for paying your own self-employment taxes, federal income taxes, and other taxes required by law. You must obey any federal, state, and local laws, as well as Company rules and regulations pertaining to your independent Momentum Network Business or the acquisition, receipt, holding, selling, distributing, or advertising of Momentum Network. Momentum Partners may not answer the telephone by saying “Momentum Network,” “Momentum Network Incorporated,” or by any other manner that would lead the caller to believe that they have reached Momentum Network’s corporate offices. A Momentum Partner may only represent that they are a Momentum Network Partner. Therefore, all correspondence and business cards relating to or in connection with a Momentum Partner’s Momentum Network business shall contain the Momentum Partner’s name followed by the term “Momentum Network Partner.”
5.9 – Bonus Buying
Subscribing for services solely for the purpose of collecting bonuses or achieving rank is prohibited. All services purchased by Momentum Partners must be specifically for personal use.
5.10 – Stacking
Stacking is the unauthorized manipulation of the Momentum Network compensation system and/or the marketing plan in order to trigger commissions or cause a promotion of a downline Momentum Partner in an unearned manner. One example of stacking occurs when a sponsor places participants under an inactive downline partner (who may not know or have any relationship with the clients) in order to trigger unearned qualification for commissioning. Another example of stacking is the manipulative placement of Momentum Partners within a downline organization in order to trigger a promotion. Stacking is unethical and unacceptable behavior and is a punishable offense with measures up to and including the termination of the Momentum Partner positions of all individuals found to be directly involved.
5.11 – One Momentum Network Business per Momentum Partner
A Momentum Partner may operate or have an ownership interest, legal or equitable, in only one Momentum Network business. No individual may have, operate, or receive compensation from more than one Momentum Network business, unless prior approval is received from Momentum Network and this action does not violate any of Momentum Network’s other policies and procedures. Individuals of the same family unit may each enter into or have an interest in their own separate Momentum Network business.
5.12 – Succession
Upon the death or incapacitation of a Momentum Partner, their business may be passed to a designated heir(s). Appropriate legal documentation must be submitted to the Company to ensure the transfer is proper. Whenever a Momentum Network business is transferred by a will or other testamentary process, the beneficiary acquires the right to collect all bonuses and commissions of the deceased Momentum Partner’s marketing organization provided the following qualifications are met:
•Execute a Momentum Partner Agreement.
•Comply with terms and provisions of the Agreement.
•Meet all of the qualifications for the deceased Momentum Partner’s rank/status.
•Provide Momentum Network with an “address of record” to which all bonus and commission checks will be sent. Bonus and commission checks of a Momentum Network business transferred pursuant to this section will be paid in a single check jointly to the successor(s).
•Form a business entity and acquire a federal Taxpayer Identification Number, if the business is bequeathed to joint successors. Momentum Network will issue all bonus and commission checks and one 1099 to the business entity.
5.13 – Sale, Transfer, or Assignment of a Momentum Network Business
Although a Momentum Network business is a privately owned, independently operated business, the sale, transfer, or assignment of a Momentum Network business is subject to certain limitations. If a Momentum Partner wishes to sell their Momentum Network business, the following criteria must be met:
A.The new owner must be an existing Momentum Partner, otherwise, they will be required to enroll as one.
B.Protection of the existing line of sponsorship must always be maintained so that the Momentum Network business continues to be operated in that line of sponsorship.
C.There is a specified administrative transfer fee.
D.Before the sale, transfer, or assignment can be finalized and approved by Momentum Network, any debt obligations the selling Momentum Partner has with Momentum Network must be satisfied.
E.The selling Momentum Partner must be in good standing and not in violation of any of the terms of the Agreement to be eligible to sell, transfer, or assign a Momentum Network business.
Prior to selling a Momentum Network business, the selling Momentum Partner must notify Momentum Network by email [email protected] of their intent to sell the Momentum Network business. No changes in the line of sponsorship can result from the sale or transfer of a Momentum Network business. A Momentum Partner may not sell, transfer, or assign portions of their business—the position must be sold in its entirety.
5.14 – Separation of a Momentum Network Business
Momentum Partners sometimes operate their Momentum Network businesses as partnerships, corporations, or other legal entities. In the event of a separation or division of the business due to divorce or entity dissolution, arrangements must be made to ensure that the interests and income of other Partners and the Company are not adversely affected. If the separating parties fail to provide for the best interests of other Partners and the Company in a timely fashion, Momentum Network may take appropriate actions, including termination of the Momentum Partner Agreement.
During the divorce or entity dissolution process, the parties must adopt one of the following methods of operation:
A.One of the parties may, with the consent of the other(s), operate the Momentum Network business pursuant to an assignment in writing whereby the relinquishing partner, shareholders, partners, or trustees authorize Momentum Network to deal directly and solely with the other partner or non-relinquishing shareholder, partner, or trustee.
B.The parties may continue to operate the Momentum Network business jointly on a “business-as-usual” basis, whereupon all compensation paid by Momentum Network 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. The Company will never remove a party to a position from a Partner account without that party’s written permission and signature. Under no circumstances will the downline organization of divorcing partners or a dissolving business entity be divided. Under no circumstances will Momentum Network split commission payouts between divorcing partners or members of dissolving entities. Momentum Network will recognize only one downline organization and will issue only one commission payout per Momentum Network business per commission cycle. Commission payouts shall always be issued to the same individual or entity. In the event that parties to a divorce or dissolution proceeding are unable to resolve a dispute over the disposition of commissions and ownership of the business in a timely fashion as determined by the Company, the Momentum Partner Agreement shall be involuntarily canceled.
5.15 – Sponsoring
All Qualified Momentum Partners in good standing have the right to sponsor and enroll others into Momentum Network. Each prospective customer or Momentum Partner has the ultimate right to choose his or her own Sponsor. If two Momentum Partners claim to be the Sponsor of the same new Momentum Partner or customer, the Company shall regard the first application received by the Company as controlling.
5.16 – Customers That Become Momentum Partners
Existing customers that choose to become Momentum Partners may have the option to become their own customer for qualification and commission purposes.
SECTION 6 – RESPONSIBILITIES OF MOMENTUM PARTNERS
6.1 – Change of Address, Telephone, Email Address
To ensure timely communications, delivery of support materials, and commission payouts, it is critically important that Momentum Network’s files are current. Momentum Partners planning to move or change their email address must submit an amended Momentum Partner Agreement complete with the new information.
6.2 – Sponsoring Momentum Partner Responsibilities
6.2.1 – Initial Training
Any Momentum Partner who sponsors another Momentum Partner into Momentum Network must perform a bona fide assistance and training function to ensure that their downline is properly operating their Momentum Network business. Momentum Partners must provide the most current version of the Policies and Procedures, the Income Disclosure Statement, and Compensation Plan to individuals whom they are sponsoring to become Momentum Partners before the applicant signs a Momentum Partner Agreement.
6.2.2 – Ongoing Training Responsibilities
Momentum Partners must monitor the Momentum Partners in their downline organizations to ensure that downline Momentum Partners do not make improper product or business claims or engage in any illegal or inappropriate conduct. Upon request, every Momentum Partner should be able to provide documented evidence to Momentum Network of their ongoing fulfillment of the responsibilities of a Sponsor.
6.3 – Non-Disparagement
Momentum Partners must not disparage, demean, or make negative remarks about Momentum Network, other Momentum Partners, Momentum Network’s services, the Compensation plan, or Momentum Network’s owners, board members, directors, officers, or employees.
6.4 – Reporting Policy Violations
Momentum Partners observing a Policy violation by another Momentum Partner should submit an email to [email protected] of the violation, complete with all supporting evidence and pertinent information. It is important to understand that information that is submitted will be kept confidential.
SECTION 7 – BILLING
7.1 – Automatic Billing
Memberships are automatically renewed each month using the payment method on file. If a Momentum Partner has a pending Daily Pay or Monthly Pay commission balance, next month’s fees will be deducted from the pending balance.
SECTION 8 – BONUSES AND COMMISSIONS
8.1 – Bonus and Commission Qualifications
In order to qualify to receive commissions as outlined in the Momentum Network Compensation Plan, a Momentum Partner must be Qualified and in good standing and comply with the terms of the Momentum Partner Agreement and these Policies and Procedures. From time to time, Momentum Network will run contests and promotions outside of the Compensation Plan. In order to qualify to receive additional contest or promotion-related compensation, the Momentum Partner must be Qualified during the term of the contest or promotion, and any Momentum Partner or Customer requirements necessary to qualify for the additional compensation must be Qualified and/or Active during the duration of any such contest or promotion.
Commission payments will be charged back in the event that a commission-triggering event is canceled within thirty (30) days of the trigger date, such as the cancellation of a customer. If a Momentum Partner is Unqualified and is a Momentum Score member, positive Daily Pay and/or eWallet commission balances will be debited for the purchase of the membership. Commission payments will be nullified if not transferred out of the eWallet within ninety (90) days of payment and/or within three (3) days of payment if a Momentum Partner Agreement is canceled. A Momentum Partner is not required to become a customer but may do so if desired for the purposes of this section.
8.2 – 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 a Momentum Partner Agreement by such individuals or entities; (b) the fraudulent enrollment of an individual or entity as a Momentum Partner or Customer; (c) the enrollment or attempted enrollment of non-existent individuals or entities as Momentum Partners or Customers (“phantoms”); (d) purchasing Momentum Network services on behalf of another Momentum Partner or Customer, or under another Momentum Partner’s or Customer’s ID number, to qualify for commissions or bonuses; (e) enrolling a Momentum Partner or Customer using your own credit card for the purpose of qualifying for bonuses; (e) enrolling non-arm’s length Customers for the purpose of qualifying for bonuses and/or (f) any other mechanism or artifice to qualify for rank advancement, incentives, prizes, commissions, or bonuses that is not driven by bona fide product or service purchases by end user consumers.
8.3 – Reports All information provided by Momentum Network, including but not limited to personal sales volume (or any part thereof), and downline sponsoring activity is believed to be accurate and reliable.Nevertheless, due to various factors including but not limited to the inherent possibility of human and mechanical error; the accuracy, completeness, and timeliness of orders; denial of credit card and commission payouts, a Momentum Partner whose Momentum Partner Agreement is cancelled shall receive commissions and bonuses only for the last full pay period he or she worked prior to cancellation (less any amounts withheld during an investigation preceding an involuntary cancellation). A Momentum Network participant has a right to cancel at any time, regardless of the reason. Cancellation request must be submitted by email to [email protected]. In order to process the cancellation request, the Momentum participant must submit the email from the email address that is registered to his/her Momentum Network account/s. IMPORTANT NOTE: A Momentum Network account can only be cancelled by the account holder.
8.4 – Administration Fees Administration fees of $1.95 will be deducted from commissions. Returned payments will result in a $5 return fee to the Momentum Partner.
8.5 – Commission Payment Delay Momentum Network is not responsible for loss of commissions or delay in payment due to any of the following: (i) the Agreement is not on file with Momentum Network or is incomplete, incorrectly filled out or not executed; (ii) improper notification of change of address has occurred; (iii) outdated forms are submitted to Momentum Network; or (iv) there are issues in processing customer information.
SECTION 9 – DISPUTE RESOLUTION AND DISCIPLINARY PROCEEDINGS
9.1 – Disciplinary Sanctions
Violation of the Agreement, these Policies and Procedures, violation of any common law duty, including but not limited to any applicable duty of loyalty, any illegal, fraudulent, deceptive, or unethical business conduct, or any act or omission by a Momentum Partner that, in the sole discretion of the Company, may damage its reputation or goodwill (such damaging act or omission need not be related to the Momentum Partner’s Momentum Network business), may result, at Momentum Network’s discretion, in one or more of the following corrective measures:
- Issuance of a written warning or admonition.
- Requiring the Momentum Partner to take immediate corrective measures.
- Imposition of a fine, which may be withheld from bonus and commission payouts.
- Loss of rights to one or more bonus and commission payouts.
- Withholding from a Momentum Partner all or part of the Momentum Partner’s bonuses and
commissions during the period that Momentum Network is investigating any conduct allegedly contrary to the Agreement. If a Momentum Partner’s business is cancelled for disciplinary reasons, the Momentum Partner will not be entitled to recover any commissions withheld during the investigation period.
- Suspension of the individual’s Momentum Partner Agreement for one or more pay periods.
- Involuntary termination of the offender’s Momentum Partner Agreement.
- Any other measure expressly allowed within any provision of the Agreement or which
Momentum Network deems practicable to implement and appropriate to equitably resolve injuries caused partially or exclusively by the Momentum Partner’s policy violation or contractual breach.• Instituting legal proceedings for monetary and/or equitable relief. Each violation is reviewed on a case-by-case basis, and all disciplinary actions are at the sole discretion of Momentum Network.
9.2 – Mediation
Prior to instituting arbitration, the parties shall meet in good faith and attempt to resolve any dispute arising from or relating to the Agreement through non-binding mediation. One individual who is mutually acceptable to the parties shall be appointed as mediator. The mediator’s fees and costs, as well as the costs of holding and conducting the mediation, shall be divided equally between the parties. Each party shall pay its portion of the anticipated shared fees and costs at least ten (10) days in advance of the mediation. Each party shall pay its own attorney’s fees, costs, and individual expenses associated with conducting and attending the mediation. Mediation shall be held in Fort Lauderdale, Florida, and shall last no more than two (2) business days.
9.3 – Arbitration
If mediation is unsuccessful, any controversy or claim arising out of or relating to the Agreement, or the breach thereof, shall be settled by confidential arbitration administered by the American Arbitration Association under its Commercial Arbitration Rules, and judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. Momentum Partners waive all rights to trial by jury or to any court. All arbitration proceedings shall be held in Fort Lauderdale, Florida. All parties shall be entitled to all discovery rights pursuant to the Federal Rules of Civil Procedure. There shall be one arbitrator, an attorney at law, who shall have expertise in business law transactions with a strong preference being an attorney knowledgeable in the direct selling industry, selected from the panel which the American Arbitration Panel provides. Each party to the arbitration shall be responsible for its own costs and expenses of arbitration, including legal and filing fees. The decision of the arbitrator shall be final and binding on the parties and may, if necessary, be reduced to a judgment in any court of competent jurisdiction. This agreement to arbitration shall survive any termination or expiration of the Agreement.
NO CLASS ACTION, OR OTHER REPRESENTATIVE ACTION OR PRIVATE ATTORNEY GENERAL ACTION OR JOINDER OR CONSOLIDATION OF ANY CLAIM WITH A CLAIM OF ANOTHER PERSON OR CLASS OF CLAIMANTS SHALL BE ALLOWABLE.
Nothing in these Policies and Procedures shall prevent Momentum Network from applying to and obtaining from any court having jurisdiction a writ of attachment, a temporary injunction, preliminary injunction, permanent injunction, or other relief available to safeguard and protect Momentum Network’s interest prior to, during, or following the filing of any arbitration or other proceeding or pending the rendition of a decision or award in connection with any arbitration or other proceeding.
9.4 – Governing Law, Jurisdiction, and Venue
Jurisdiction and venue of any matter not subject to arbitration shall reside exclusively in Fort Lauderdale, Florida. The Federal Arbitration Act shall govern all matters relating to arbitration. The laws of Florida shall govern all other matters relating to or arising from the Agreement. Notwithstanding the foregoing, and the arbitration provision in this Agreement, residents of the State of Louisiana shall be entitled to bring an action against Momentum Network in their home forum and pursuant to Louisiana law.
SECTION 10 – EFFECT OF CANCELLATION
10.1 – Effect of Cancellation and Termination
So long as a Momentum Partner remains Qualified and complies with the terms of the Momentum Partner Agreement and these Policies, Momentum Network shall pay commissions to such Momentum Partner in accordance with the Compensation Plan. A Momentum Partner’s bonuses and commissions constitute the entire consideration for the Momentum Partner’s efforts in generating sales and all activities related to generating sales (including, but not limited to, building a downline organization). Following a Momentum Partner’s non-continuation of his or her Momentum Partner Agreement, cancellation for inactivity, or voluntary or involuntary cancellation (termination) of his or her Momentum Partner Agreement (all of these methods are collectively referred to as “Cancellation”), the former Momentum Partner shall have no right, title, claim, or interest to the downline organization which he or she operated, or any commission or bonus from the sales generated by the organization. Momentum Partners waive any and all rights, including, but not limited to, property rights, in the downline which they may have had. Following a Momentum Partner’s cancellation of his or her Momentum Partner Agreement, the former Momentum Partner shall not hold him or herself out as a Momentum Network Momentum Partner and shall not have the right to sell Momentum Network products or services. A Momentum Partner whose Momentum Partner Agreement is cancelled shall receive commissions and bonuses only for the last full pay period he or she worked prior to cancellation (less any amounts withheld during an investigation preceding an involuntary cancellation).
A Momentum Network participant has a right to cancel at any time, regardless of reason. Cancellation must be submitted via email to [email protected]. In order to process the cancellation, the Momentum participant must submit the email from the email address that is registered to his/her Momentum Network account/s. IMPORTANT NOTE: A Momentum Network account can only be cancelled by the account holder. Momentum Network refers to the same concepts: AGREEMENT: The contract between the Company and each Momentum Partner; includes the Momentum Partner Agreement, the Momentum Network Policies and Procedures, and the Momentum Network Compensation Plan, all in their current form and as amended by Momentum Network in its sole discretion. These documents are collectively referred to as the “Agreement.”
CANCEL: The termination of a Momentum Partner’s business. Cancellation may be either voluntary, involuntary, or through non-renewal after sixty (60) days of Inactive status.
COMPENSATION PLAN: The guidelines and referenced literature for describing how Momentum Partners can generate commissions and bonuses.
CUSTOMER: A Customer who purchases Momentum Network services and does not engage in building a business or selling the service.
MOMENTUM PARTNER: An individual who purchases service plans, generates sales and business building commissions.
LINE OF SPONSORSHIP: A report generated by Momentum Network that provides critical data relating to the identities of Momentum Partners, sales information, and enrollment activity of each Momentum Partner’s organization. This report contains confidential and trade secret information which is proprietary to Momentum Network.
ORGANIZATION: The Customers and Momentum Partners placed below a particular Momentum Partner.
OFFICIAL MOMENTUM NETWORK MATERIAL: Literature, audio or video tapes, and other materials developed, printed, published, and distributed by Momentum Network to Momentum Partners.
PLACEMENT: Your position inside your Sponsor’s organization.
RECRUIT: For purposes of Momentum Network’s Conflict of Interest Policy, the term “Recruit” means the actual or attempted solicitation, enrollment, encouragement, or effort to influence in any other way, either directly, indirectly, or through a third party, another Momentum Network Independent Financial Director or Customer to enroll or participate in another multilevel marketing, network marketing, or direct sales opportunity.
SPONSOR: A Momentum Partner who enrolls a Customer or another Momentum Partner into the Company and is listed as the Sponsor on the Momentum Partner Agreement. The act of enrolling others and training them to become Momentum Partners is called “sponsoring.”
In the context of Momentum Network, the term “UPLINE” refers to the Momentum Partners or Momentum Partners above a particular Momentum Partner in a sponsorship line up to the Company. It is the line of sponsors that links any particular Momentum Partner to the Company.
