Effective December 1st 2021
SECTION 1 – INTRODUCTION
1.1 POLICIES INCORPORATED INTO CUSTOMER REGISTRATION
1.2 POLICIES INCORPORATED INTO MEMBER AGREEMENT AND CONTRACTUAL RELATIONSHIP
1.2 CHANGES TO THE MEMBER AGREEMENT, POLICIES AND PROCEDURES, OR REWARDS PLAN
1.4 POLICIES AND PROVISIONS SEVERABLE
SECTION 2 –BECOMING A EGN MEMBER OR CUSTOMER
2.1 REQUIREMENTS TO BECOME A MEMBER
2.2 NEW MEMBER REGISTRATION BY INTERNET
2.3 ACCEPTANCE OR REJECTION OF MEMBER REGISTRATION
2.4 MEMBER BENEFITS
2.5 TERM AND RENEWAL OF A EGN BUSINESS
2.6 REQUIREMENTS TO BECOME A CUSTOMER
SECTION 3 – ACCEPTANCE OF RISK AND THE POLICY ON THE EGN INCOME DISCLAIMER
3.1 DUE DILIGENCE
3.2 INCOME DISCLAIMER STATEMENT(IDS)
SECTION 4 – ADVERTISING
4.1 ADHERENCE TO THE ENIGMA REWARDS PLAN
4.2 USE OF SALES AID
4.3 INTELLECTUAL PROPERTY
4.4 ADVERTISED PRICE
4.5 MEDIA AND MEDIA INQUIRIES
SECTION 5 – RESPONSIBILITIES AS A MEMBER OPERATING A EGN BUSINESS
5.1 UNAUTHORIZED CLAIMS AND ACTION
5.2 ENDORSEMENT OF EGN SERVICES
5.3.2 Sale of Competing Goods or Services
5.3.3 Targeting Other Direct Sellers
5.3.4 Privacy and Confidentiality
5.3.5 The Data Management Rule
5.3.6 Confidentiality of the LOS
5.3.7 Representations of Other MEMBERS, CUSTOMERS and Prospective CUSTOMERS
5.4 CROSS SPONSORING
5.5 GOVERNMENTAL APPROVAL OR ENDORSEMENT
5.7 INDEPENDENT CONTRACTOR STATUS
5.9 ONE EGN BUSINESS PER MEMBER
5.10 SALE, TRANSFER, OR ASSIGNMENT OF A EGN BUSINESS
5.12 USE OF THE ENIGMA MOBILE APP
6 A MEMBER’S RESPONSIBILITIES
6.1 RESPONSIBILITIES OF A SPONSORING MEMBER
6.2 INITIAL TRAINING
6.2.2 Ongoing Training Responsibilities
6.4 REPORTING POLICY VIOLATIONS
6.5 INCOME TAXES
8 BONUSES AND COMMISSIONS
8.1 BONUS AND COMMISSION QUALIFICATIONS
8.2 ERRORS OR QUESTIONS
8.3 BONUS BUYING PROHIBITED
8.5 REFUND POLICY
9 DISPUTE RESOLUTION AND DISCIPLINARY PROCEEDINGS
9.1 DISCIPLINARY SANCTIONS
9.4 GOVERNING LAW
10 EFFECTS OF CANCELLATION
10.1 EFFECTS OF CANCELLATION AND TERMINATION
EGN STATEMENT OF POLICIES AND PROCEDURES
December 1st 2021
SECTION 1 – INTRODUCTION
1.1 – Policies Incorporated into Customer Registration
These Policies and Procedures (“Policies”), for a customer, in their present form or as amended at any time by the Enigma Global Network (“EGN” or the “Company”) in the future, are incorporated with Customer Registration. As a customer, you will enjoy all the services and products the EGN Family of Companies has to offer. As a customer, you are a NON-MEMBER who is an end user of products and services offered through or by EGN. All persons registering with EGN are immediately defined as a CUSTOMER and as always will NEVER be required to pay anything for registering or to gain access to our products or services.
1.2 – Policies Incorporated into MEMBER Agreement and Contractual Relationship
The terms and conditions found in these Policies and Procedures (“Policies”), in their present form or as amended at any time by EGN and the EGN Mobile APP (simply “EGN” or “Company”) in the future, are incorporated into and form an integral part of the EGN MEMBER Agreement (“MEMBER Agreement”). EGN has a contract with each MEMBER that includes all the terms including enforcement and renewal of these Policies. Throughout these Policies, the term “Agreement” is used to refer collectively to the EGN MEMBER Agreement, these Policies, and the EGN REWARDS PLAN, known in the EGN Family of Companies as a compensation plan. These documents are incorporated by reference into the MEMBER Agreement (all in their current form and as amended by EGN). It is the responsibility of each MEMBER to read, understand, adhere to, and ensure that he or she is aware of and operating under the most current version of these Policies. When sponsoring a new MEMBER, it is the responsibility of the sponsoring MEMBER (“Sponsor”) to provide the most current version of these Policies prior to any execution of the MEMBER Agreement.
1.3 – Changes to the MEMBER Agreement, Policies and Procedures, or REWARDS PLAN
Because different laws and regulations, as well as the business environment, periodically change, Company reserves the right to amend the Agreement and the prices of its products and services in its sole and absolute discretion. Notification of amendments shall appear in Company Official Materials. Amendments shall be effective upon publication in such Company Official Materials, including but not limited to, posting: (i) on the EGN website (www.enigmanetwork.io); (ii) e-mail distribution; (iii) or any other commercially reasonable method. The continuation of a MEMBER’s doing business or logging in via our website or mobile app or the acceptance of bonuses or commissions constitutes acceptance of all amendments.
1.4 – Delays
EGN shall not be responsible for delays and failures in performance of its obligations when performance is made commercially impracticable due to circumstances reasonably outside of EGN’s control. This includes, without limitation, strikes, labor difficulties, riot, war, fire, flood, death, Acts of Nature, pandemics, epidemics, curtailment of a party’s source of supply power, government decrees or orders, and any other occurrence reasonably outside the control of EGN.
1.5 – Policies and Provisions Severable
If any provision of the Agreement, in its current form or as may be amended, is found to be invalid, or unenforceable for any reason, only the invalid portion(s) of the provision shall be severed and the remaining terms and provisions shall remain in full force and effect and shall be construed as if such invalid, or unenforceable provision never comprised a part of the Agreement.
The Company never gives up its right to insist on compliance with the Agreement and with any applicable laws governing the conduct of a business. No failure of the Company to exercise any right or power under the Agreement or to insist upon strict compliance by a MEMBER with any obligation or provision of the Agreement, and no custom or practice of the parties at variance with the terms of the Agreement, shall constitute a waiver of the Company’s right to demand exact compliance with the Agreement. Waiver by EGN can only be effectuated in writing by an authorized officer of the Company.
SECTION 2—BECOMING AN EGN MEMBER OR CUSTOMER
2.1 – Requirements to Become a MEMBER
To become an EGN MEMBER, each applicant must:
annual fee or ANY product or service of the Company
or to participate in any way in corporations the rewards plan or partnerships which are EGN MEMBERS. Relatives of EGN employees who do not fit within the foregoing categories may become EGN MEMBERS providing that no proprietary, confidential, or other information, prior to the time it becomes public, is given by any employee to such relative. Any violation of this rule by a member’s immediate family or household shall be treated as a violation by that MEMBER.
2.2 – New MEMBER Registration by the Internet
A prospective MEMBER may self-enroll in his or her sponsor’s website. In such event, Company will accept the Agreement by way of an “electronic signature, Payment of Annual Fee, or Product/Service” rather than submission via physical hard copy of the Agreement. A MEMBER’s acceptance of the “electronic signature, Payment of Annual Fee, or Product/Service” signifies his or her tacit acceptance of the terms and conditions of the
MEMBER Agreement, as well as the acceptance and understanding of these Policies. Please note that such electronic signature constitutes a legally binding agreement between you and EGN.
2.3 – Acceptance or Rejection of MEMBER Registration
EGN reserves the right to accept or reject any MEMBER’S Registration. A registration shall be considered accepted by EGN when EGN receives a completed and electronically signed MEMBER Agreement in accordance with Rule 2.2, its contents are verified with EGNs’ records database, and the registration does not violate any rule of these Policies.
2.4 – MEMBER Benefits
Upon the Company’s acceptance of a MEMBER Agreement, the benefits of the EGN REWARDS PLAN and the MEMBER Agreement become immediately available to the MEMBER. These benefits include the following rights:
2.5 – Term and Renewal of a EGN Business
To renew the Member Agreement, a MEMBER must pay the required monthly business renewal fee, by the end of each month. EGN reserves the right to reject any renewal request, or revoke any MEMBERS Renewal payment, if the MEMBER is not in compliance with all provisions of the MEMBER Agreement or has multiple compliance violations from the preceding year. CUSTOMERS are NOT required to pay a annual business fee.
2.6 – Requirements to become a Customer with EGN
To become an EGN Customer, each applicant must:
Plan or Compensation Plan.
SECTION 3 – ACCEPTANCE OF RISK AND THE POLICY ON THE EGN INCOME DISCLOSURE STATEMENT
3.1 – Due Diligence
Company makes no guarantees, warranties, or representations as to the rate by which Company algorithms may affect your own independent cryptocurrency trading. All MEMBERS understand and agree that the Company is not liable for any loss suffered in the facilitation, conduct and oversight of EGN services. Furthermore, you acknowledge that you have conducted sufficient due diligence with regards to the risks associated with cryptocurrency trading and recognize the risk that financial loss(es) may occur
3.2 – Income Disclosure Statement
As a way to conduct better business practices, EGN hereby puts forth a disclaimer on income earnings (“Income Disclosure Statement”). This Income Disclosure Statement or IDS (reissued after SIX MONTHS of operations) is to convey truthful, timely, and comprehensive information regarding the income that EGN MEMBERS may earn. To accomplish this objective, you must discuss and present the Income Disclosure Statement (IDS) to all prospective MEMBERS.
A copy of the Income Disclosure Statement must be presented to a prospective MEMBER (someone who is not yet a party to a pre-existing MEMBER Agreement) any time the REWARDS PLAN is presented or discussed, or any type of Income Claim is made.
The terms “Income Claim” and/or includes all of the following: (i) statements of average earnings; (ii) statements of non-average earnings; (iii) statements of earnings ranges; (iv) income testimonials; (v) lifestyle claims; and (vi) hypothetical claims. An example of a “statement of non-average earnings” would be: “Our number one MEMBER earned over two million dollars last year,” or “Our average-ranking MEMBER makes three thousand dollars per month.” An example of a “statement of earnings ranges” would be: “The monthly income for our higher-ranking MEMBERS is eight thousand dollars a month on the low end up to twenty-five thousand dollars a month on the high end.”
In any meeting that is open to the public in which discussion of the REWARDS PLAN or any type of Income Claim occurs, you must provide every prospective MEMBER with a copy of the Income Disclosure Statement. Copies of the Income Disclosure Statement may be printed or downloaded without charge from the Company website and will be appropriately displayed upon completion of data calculation.
4.1 – Adherence to the EGN REWARDS PLAN
MEMBERS must adhere to the terms of the EGN REWARDS PLAN as set forth in EACH Company’s Official Materials and our Mobile App. EACH REWARDS PLAN or COMPENSATION PLAN can be found on the website and in your back office. You shall not offer the EGN opportunity through, or in combination with, any other system, program, or method of marketing other than that specifically stated in the Company’s Official Materials. You shall not require or encourage other current or prospective Customers or MEMBERS to participate in EGN in any manner that varies from the program as set forth in Company Official Materials. MEMBERS shall not require or encourage other current or prospective Customers or MEMBERS to execute any agreement or contract outside the official EGN agreements and contracts. Similarly, MEMBERS shall not require or encourage other current or prospective Customers or MEMBERS to make any purchase from, or payment to, any individual or other entity to participate in the EGN REWARDS PLAN or COMPENSATION PLAN other than those purchases or payments identified as recommended or required in Company Official Materials.
4.2 – Use of Sales Aids
To promote both the EGN services and opportunity, MEMBERS must only use the sales aids and support materials produced by the Company. Should an EGN MEMBER develop and use their own sales aids and promotional materials (which includes all forms of independent internet advertising), notwithstanding any good intentions, the intentional or unintentional violation of laws or regulations affecting EGN may occur. These violations could and likely would jeopardize EGN and EGN MEMBERS and customers. Accordingly, MEMBERS must submit all written sales aids, promotional materials, advertisements, websites, and other literature to the Company for Company’s approval prior to use or distribution. Unless you receive specific written approval to use the material, your request shall be deemed denied. All MEMBERS shall safeguard and promote the good reputation of EGN and its services. The marketing and promotion of EGN, the EGN opportunity, the REWARDS PLAN, and EGN services shall be consistent with public interest, and must avoid all discourteous, deceptive, misleading, unethical or immoral conduct or practices.
4.3 –Intellectual Property
EGN will not allow the use of its trade names, trademarks, designs, or symbols outside of Corporate produced and approved sales aids without prior written authorization from the Company. Furthermore, no MEMBER may use, publish, reproduce, advertise, sell, or display in any manner the name, picture, likeness, or voice of another MEMBER without prior written consent from the corresponding MEMBER.
4.4 – Advertised Price
You may not advertise any of EGN’s services at a price LESS than the highest Company published price of the equivalent service. No special enticement advertising is allowed, such as (but not limited to) offers of a free EGN services or any other offer that grants advantages EGN those available through and provided by the Company.
4.5 –Media and Media Inquiries
MEMBERS must not initiate any interaction with the media or attempt to respond to media inquiries regarding EGN, its services, or an independent EGN business. All inquiries by any type of media must be immediately referred to the EGN Corporate Offices. This is so the Company can better ensure the accurate and consistent flow of information to the public, as well more adequately reflect the Company’s true public image.
SECTION 5—RESPONSIBILITIES AS A MEMBER OPERATING AN EGN BUSINESS
5.1 – Unauthorized Claims and Action
5.1.1 – Indemnification
A MEMBER is fully responsible for all of his or her verbal and/or written statements made regarding EGN services and the REWARDS PLAN, which are not expressly contained in Company Official Materials. MEMBERS agree to indemnify EGN and hold it harmless from any and all liability including judgments, civil penalties, refunds, attorney fees, court costs or lost business incurred by EGN as a result of the MEMBER’s unauthorized representations or actions. This provision shall survive the cancellation of the MEMBER Agreement.
5.2 –Endorsements of EGN Services
No claims as to any services offered by EGN may be made except those contained in
Company Official Materials.
5.3 – Conflicts
5.3.1 – Non–solicitations
EGN MEMBERS 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, MEMBERS may not directly or indirectly recruit other EGN Customers or MEMBERS other than those they have personally sponsored for any other Network Marketing business. Following the cancellation of a MEMBER Agreement, and for a period of one (1) calendar year thereafter, with the exception of a MEMBER who is personally sponsored by the former MEMBER, a former MEMBER may not recruit any EGN Customer or MEMBER for another Network Marketing business.
5.3.2 – Sale of Competing Goods or Services
During this agreement and for six (6) months thereafter, MEMBERS must not sell, or attempt to sell, any competing non-EGN services to EGN Customers or MEMBERS. Any program, product, service, or direct selling opportunity in the same generic categories as the EGN services (i.e., cryptocurrency education and other services) are deemed to be competing, regardless of differences in cost, quality, or other distinguishing factors.
5.3.3 – Targeting Other Direct Sellers
Should EGN MEMBERS engage in solicitation and/or enticement of members of another direct sales company to sell or distribute EGN services, such EGN MEMBERS bear the risk of being sued by the other direct sales company. If any legal action is brought against a MEMBER alleging that they engaged in inappropriate recruiting activity of its Customers or sales force, EGN will not pay any of MEMBER’s defense costs or legal fees, nor will EGN indemnify the MEMBER for any judgment, award, or settlement.
5.3.4 – Privacy and Confidentiality
Customer or MEMBER information and how EGN uses that 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 MEMBERS, as well as EGN. LOS information is information compiled by
EGN that discloses or relates to all or part of the specific arrangement of sponsorship within the EGN business, including, without limitation, MEMBER lists, sponsorship trees, and all MEMBER information generated therefrom, in its present and future forms. The EGN LOS constitutes a commercially advantageous, unique, and proprietary trade secret (Proprietary Information), which it keeps proprietary and confidential and treats as a trade secret. EGN 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 EGN and its MEMBERS. Through this Rule, MEMBERS are granted a personal, non-exclusive, non-transferable and revocable right by EGN 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 MEMBER stating the reason(s) for such denial or revocation, whenever, in the reasonable opinion of EGN, such is necessary to protect the confidentiality or value of Proprietary Information. All MEMBERS shall maintain Proprietary Information in strictest confidence and shall take all reasonable steps and appropriate measures to safeguard Proprietary Information and maintain the confidentiality of such Proprietary Information.
5.3.6 – Confidentiality of the Line of Sponsorship (LOS)
EGN protects the LOS and LOS Information for the benefit of EGN and of all MEMBERS and CUSTOMERS. EGN keeps LOS Information proprietary and confidential and treats it as a trade secret. EGN is the exclusive owner of all LOS
Information, which is derived, compiled, configured and maintained through the expenditure of considerable time, effort and resources by EGN and its MEMBERS. MEMBERS can use the LOS Information only for the purposes permitted to the growth and development of that MEMBERS EGN business.
All MEMBERS shall maintain LOS Information in strictest confidence and shall take all reasonable steps and appropriate measures to safeguard LOS Information and maintain the confidentiality thereof. MEMBERS shall not compile, organize, access, create lists of, or otherwise use or disclose LOS Information except as authorized by EGN. MEMBERS shall not disclose LOS Information to any third party, or use LOS Information in connection with any other businesses or to compete, directly or indirectly, with the EGN business.
Every MEMBER acknowledges that use or disclosure of LOS Information, other than as authorized by EGN, will cause significant and irreparable harm to EGN, warranting an award of injunctive relief, including a temporary restraining order and/or a preliminary injunction, specific performance, and damages, including costs, attorneys’ fees and disgorgement of all profits made as a result of such unauthorized use or disclosure.
A MEMBER’S obligation under this Section 5.3.6, shall survive and remain enforceable following the voluntary or involuntary resignation, non-renewal or termination of that MEMBER’S relationship with EGN.
5.3.7 – Representations of Other MEMBERS, CUSTOMERS and Prospective
EGN MEMBERS shall honestly and fairly describe the EGN Rewards & Compensation Plan including the use of our mobile app, Infinity Success App, in all their discussions with other MEMBERS or potential CUSTOMERS. This obligation of fair and complete description shall include, without limitation, the following:
of the EGN products except to the extent that such statements are made in EGN
written material describing the products.
Program has been approved by any governmental agency or business group.
Representations to CONSUMERS (Potential CUSTOMERS):
5.4 – Cross–Group Sponsoring
Actual or attempted cross-group sponsoring 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 MEMBER Agreement on file with EGN, or who has had such an agreement within the preceding twelve (12) calendar months, within a different line of sponsorship. Additionally, the use of a fictitious identification number to circumvent this policy is prohibited. This policy shall not prohibit the transfer of a EGN business in accordance with these Policies.
5.5 – Governmental Approval or Endorsement
Because Cryptocurrencies are unregulated and decentralized, many governments and/or legal entities neither insure the underlying value nor recognize such as legal tender. As a result, a MEMBER should abstain from any representations concerning the legality of cryptocurrency services IF and WHEN provided.
Upon enrollment, the Company will provide a unique MEMBER Identification Number to the MEMBER by which they will be identified. This number will be used to place orders and track commissions and bonuses.
5.7 – Independent Contractor Status
You are an independent contractor, AT ALL TIMES. You are not an agent, employee, partner, or joint venture with the Company. You may not represent yourself as anything other than an independent business owner. You have no authority to bind EGN to any obligation. You are responsible for paying any applicable taxes in relations to laws, ordinances, codes, regulations, statutes or treaties. You must obey any and all laws, ordinances, codes, regulations, statutes or treaties, as well as Company rules and regulations pertaining to your independent EGN Business or the acquisition, receipt, holding, selling, distributing or advertising of EGN’s services.
MEMBERS may not answer the telephone by saying “EGN,” “ENIGMA,” “EGN or ENIGMA Corporate or by any other manner that would lead the caller to believe that they have reached the Corporate offices, an employee or a corporate officer. You may only represent yourself as an independent business owner in association with EGN. Therefore, all correspondence and business cards relating to or in connection with your EGN business shall contain your name followed by the term “MEMBER” or “EGN MEMBER”.
5.8 – Stacking
Stacking is the unauthorized manipulation of the EGN rewards system and/or the marketing plan to trigger commissions or cause a promotion off a downline MEMBER in an unearned manner. One example of stacking occurs when a Sponsor places a participant under an inactive downline participant (who may not know or have any relationship with a Customer) to trigger unearned qualification for commissioning. Another example of stacking is the manipulative placement of MEMBERS within a downline organization as to trigger a promotion. Stacking is unethical and unacceptable behavior, and as such, it is a punishable offense with measures up to and including the termination of the MEMBER’s positions of all individuals found to be directly involved.
5.9 – One EGN Business Per MEMBER per COMPANY
A MEMBER may operate or have an ownership interest, legal or equitable, as a sole proprietorship, partner, shareholder, trustee, or beneficiary, in only one EGN business. No individual may have, operate or receive rewards from more than one EGN business. Individuals of the same family unit may each enter into or have an interest in their own separate EGN businesses, only if each subsequent family position is placed frontline to the first family member enrolled. A “family unit” is defined as spouses and dependent children living at or doing business at the same address.
5.10 – Sale, Transfer, or Assignment of a EGN Business
Although an EGN business is a privately owned, independently operated business, the sale, transfer or assignment of an EGN business is subject to certain limitations. If a MEMBER wishes to sell their EGN business, the following criteria must be met:
EGN business continues to be operated in that line of sponsorship;
Prior to selling an EGN business, the selling MEMBER must notify EGN’s Compliance Department of their intent to sell the EGN business. No changes in line of sponsorship can result from the sale or transfer of an EGN business. A MEMBER may not sell, transfer, or assign portions of their business—the business must be sold in its entirety.
All Active MEMBERS in good standing have the right to sponsor and enroll others into EGN. Each prospective Customer or MEMBER has the ultimate right to choose his or her own Sponsor. If two MEMBERS claim to be the Sponsor of the same new MEMBER or Customer, the Company shall regard the first application received by the Company as controlling.
5.12 – Download and Use of the Infinity Success APP
Agreement of EGN and this Policies and Procedures.
Success APP on ANY social media platform.
APP from the Apple iTunes or Google Play store.
SECTION 6 – A MEMBER’S RESPONSIBILITIES
6.1 –Responsibilities of a Sponsoring MEMBER
6.2 – Initial Training
Any MEMBER who sponsors another MEMBER into EGN must perform a bona fide assistance and training function to ensure that their downline is properly operating their EGN business. MEMBERS must provide the most current version of the Policies, the Income Disclosure Statement, and REWARDS PLAN to individuals whom they are sponsoring to become MEMBERS before the applicant signs a MEMBER Agreement.
6.2.1 – Ongoing Training Responsibilities
MEMBERS must monitor the MEMBERS in their downline organizations to ensure that downline MEMBERS do not make improper product or business claims or engage in any illegal or inappropriate conduct. Upon request, every MEMBER should be able to provide documented evidence to EGN of their ongoing fulfilment of the responsibilities of a Sponsor.
6.3 – Non-disparagement
MEMBERS must not disparage, demean, or make negative remarks about EGN, other EGN MEMBERS, EGN’s services, the REWARDS PLAN, or EGN’s owners, board MEMBERS, directors, officers, or employees.
6.4 – Reporting Policy Violations
MEMBERS observing a Policy violation by another MEMBER should submit a written report of the violation directly to the attention of the Company Compliance Department, complete with all supporting evidence and pertinent information. It is important to understand that information that is submitted will be kept confidential.
6.5 – Income Taxes
Each Member is responsible for paying local, state and federal taxes on any income generated as a Member. If an EGN business is tax exempt, the Federal Tax Identification Number must be provided to EGN. If the Member lives in the United States, EGN will provide IRS Form 1099 (non-employee compensation) earnings statement to each U.S. every year resident who (a) had earnings of over $600 in the previous calendar year or (b) made purchases during the previous calendar year in excess of $5,000 wholesale. EGN cannot accept a tax-exempt certificate from a Member who resides in a state where tax exempt status is not granted for Direct Sales businesses. MEMBERS are encouraged to check with their state government before sending a form to EGN.
SECTION 7 – BILLING
A MEMBER must submit payment of the annual EGN licensing fee at the time of enrollment. This licensing fee payment shall become due on the anniversary date of a MEMBER’s enrollment into the EGN brand of opportunities.
SECTION 8 –COMMISSIONS AND REFUND POLICY
8.1 – Bonus and Commission Qualifications
In order to qualify to receive commissions and bonuses, a MEMBER must be in good standing and comply with the terms of the Agreement and these Policies. A MEMBER will qualify to receive all of EGN’s commissions and bonuses so long as he/she qualifies under the commission plan allotted to all MEMBERS.
8.2 – Errors or Questions
If a MEMBER has questions about or believes any errors have been made regarding commissions, bonuses, Downline Activity Reports, or charges, the MEMBER must notify EGN in writing within thirty (30) days from the date of the purported error or incident in question. EGN will not be responsible for any errors, omissions, or problems not reported to EGN during these initial thirty (30) days.
8.3 – Bonus Buying Prohibited
Bonus buying is strictly and completely prohibited. “Bonus Buying” includes: (i) the enrollment of individuals or entities without the knowledge of and/or execution of a MEMBER Agreement by such individuals or entities; (ii) the fraudulent enrollment of an individual or entity as a MEMBER or Customer; (iii) the enrollment or attempted enrollment of non-existent individuals or entities as MEMBERS or Customers (“phantoms”); (iv) purchasing EGN services on behalf of another MEMBER or Customer, or under another MEMBER’s or Customer’s ID number, to
qualify for commissions or bonuses; and/or (v) 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.
8.4 – Reports
All information provided by EGN, 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: (i) the inherent possibility of human and mechanical error;(ii) the accuracy, completeness, and timeliness of orders; (iii) denial of credit card and electronic check payments, a MEMBER whose MEMBER 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).
An EGN participant has a right to cancel at any time, regardless of reason. Cancellation must be submitted in writing to the Company at its principal business address or the appropriate cancellation email address.
8.5 – Refund Policy
EGN offers a thirty (30) day satisfaction guarantee on ALL initial fees paid to the company. All subsequent fees, services, products are also refundable thirty (30) days from the date of purchase. When a refund is requested by a MEMBER or CUSTOMER the bonuses, rewards, credits, and commissions attributable to the refunded service will be deducted from the MEMBER or CUSTOMER who received credits, bonuses or commissions on such sale referrals. Deductions will occur in the month in which the refund is given and continue every pay period thereafter until the dollar amount or credit is recovered.
SECTION 9 –DISCIPLINARY PROCEEDINGS
9.1 – Disciplinary Sanctions
Violation of the Agreement, these Policies, laws, regulations, international statutes or treaties, or any act or omission by a MEMBER 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 MEMBER’s EGN business), may result, at EGN’s discretion, in one or more of the following corrective measures:
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 Las Vegas, Nevada, 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. MEMBERS waive all rights to trial by jury or to any court or any jurisdiction.
All arbitration proceedings shall be held in New York, New York. 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 shall prevent EGN 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 EGN’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
These Polices, the Agreement, or any dispute arising hereunder or related hereto are governed and construed in accordance with the laws of the country of The United States of America, and governing laws in the State of Wyoming.
SECTION 10 – EFFECTS OF TERMINATION
So long as a MEMBER remains active and complies with the terms of the MEMBER Agreement and these Policies, EGN shall pay commissions to such MEMBER in accordance with the REWARDS PLAN. A MEMBER’s bonuses and commissions constitute the entire consideration for the MEMBER’s efforts in generating sales and all activities related to generating sales
(including, but not limited to, building a downline organization). Following a MEMBER’s non- continuation of his or her MEMBER Agreement, cancellation for inactivity, or voluntary or involuntary cancellation (termination) of his or her MEMBER Agreement (all of these methods are collectively referred to as “Cancellation”), the former MEMBER 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. MEMBERS waive any and all rights, including, but not limited to, property rights, in the downline which they may have had.
Following a MEMBER’s cancellation of his or her MEMBER Agreement, the former MEMBER shall not hold him or herself out as an EGN MEMBER and shall not have the right to sell EGN services. A MEMBER whose MEMBER 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).
An EGN participant has a right to cancel at any time, regardless of reason. Cancellation must be submitted in writing to the Company at the appropriate Company email address.
SECTION 11 – DEFINITIONS
AGREEMENT: The contract between the Company and each MEMBER, which includes the following: (i) the MEMBER Agreement, the EGN Policies, and the EGN REWARDS PLAN — all in their current form and as amended by the Company in its sole and absolute discretion. These documents are collectively referred to as simply the “Agreement.”
CANCEL: The termination of a MEMBER’s business. Cancellation may occur by way of voluntary/involuntary actions and conduct.
REWARDS PLAN: The guidelines and referenced literature for describing how a EGN MEMBER can generate commissions and bonuses.
Also referred to as a COMPENSATION PLAN.
CUSTOMER: One who merely purchases the EGN services, neither engaging in the sale of such services, receiving any form of compensation or the building of an independent business. All applicants begin as customers.
MEMBER: One who markets and sells the EGN services, and in doing so, generates sales and commissions through an organizational team.
LINE OF SPONSORSHIP (LOS): A report generated by EGN that provides critical data relating to the identities of MEMBERS, sales information, and the enrollment activity of each MEMBER’s organization. This report contains confidential and trade secret information which is proprietary to EGN.
ORGANIZATION: The Customers and MEMBERS placed below a particular MEMBER. COMPANY OFFICIAL MATERIAL: Any literature, audio, and other materials developed,
printed, published, and distributed by EGN to its MEMBERS.
PLACEMENT: Your position inside your Sponsor’s organization.
RECRUIT: For purposes of EGN’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 EGN Customer or MEMBER to enroll or participate in another multilevel marketing, network marketing, or direct sales opportunity.
SPONSOR: A MEMBER who enrolls and subsequently trains a Customer or MEMBER into the Company and is listed as the Sponsor on the MEMBER Agreement.
UPLINE: This term refers to the MEMBER(s) above a particular MEMBER in a sponsorship line up to the Company. It is the line of sponsors that links any particular MEMBER to the Company.