1.1 - Policies and Rewards Plan Incorporated into Ambassador Agreement
These Policies and Procedures, in their present form and as amended at the sole discretion of ZYNN, LLC, a Utah limited liability company, doing business as ―ZYNN, LLC (hereafter ―ZYNN, LLC ("ZYNN" or "Company"), are incorporated into, and form an integral part of, the ZYNN Ambassador Agreement. Throughout these Policies, when the term "Agreement" is used, it collectively refers to the ZYNN Ambassador Agreement, these Policies and Procedures, the ZYNN Marketing and Rewards Plan, and the ZYNN Business Entity Registration Form (if applicable). These documents are incorporated by reference into the ZYNN Ambassador Agreement (all in their current form and as amended by ZYNN). It is the responsibility of each Ambassador to read, understand, adhere to, and ensure that he or she is aware of and operating under the most current version of these Policies and Procedures. When sharing ZYNN with a new Customer or Ambassador, it is the responsibility of the referring Ambassador to ensure that they are provided with, or has online access to, the most current version of these Policies and Procedures and the ZYNN Marketing and Rewards Plan prior to his or her execution of the Ambassador Agreement.
1.2 - Purpose of Policies
ZYNN is a referral rewards company that markets its products and services through ZYNN Customers or Ambassadors and (hereafter "Customer or Ambassador"). It is important to understand that your success and the success of your fellow Customers or Ambassadors depend on the integrity of the men and women who market our products and services. To clearly define the relationship that exists between Customer or Ambassadors and ZYNN, and to explicitly set a standard for acceptable business conduct, ZYNN, LLC has established the Agreement. ZYNN Customer or Ambassadors are required to comply with all the Terms and Conditions set forth in the Agreement which ZYNN may amend at its sole discretion from time to time, as well as all federal, state, and local laws governing their ZYNN business and their conduct. Because you may be unfamiliar with many of these standards of practice, it is very important that you read and abide by the Agreement. Please review the information in this policy and procedure document carefully. It explains and governs the relationship between you, as an independent contractor and the Company. If you have any questions regarding any policy or rule, do not hesitate to seek an answer from ZYNN.
1.3 - Changes to the Agreement
Because federal, state, and local laws, as well as the business environment, periodically change, ZYNN reserves the right to amend the Agreement and its prices in its sole and absolute discretion. By entering into the Ambassador Agreement, an Ambassador agrees to abide by all amendments that ZYNN elects to make. Amendments shall be effective thirty (30) days after publication of notice to all Customer or Ambassadors that the Agreement has been modified. Amendments shall not apply retroactively to conduct that occurred prior to the effective date of the amendment.
Notification of amendments shall be published in official ZYNN materials. The Company shall provide or make available to all Customer or Ambassadors a complete copy of the amended provisions by one or more of the following methods: (1) posting on the Company's official web site; (2) electronic mail (e-mail); (3) inclusion in Company periodicals; (4) inclusion in product orders or bonus payments; (5) posting in the Customer or Ambassadors' Back Offices; or (6) special mailings. The continuation of a Customer or Ambassador's ZYNN business, the acceptance of any benefits under the Agreement, or a Customer or Ambassador's acceptance of bonuses or Rewards constitutes acceptance of all amendments.
1.4 - Delays
ZYNN shall not be responsible for delays or failures in performance of its obligations when performance is made commercially impracticable due to circumstances beyond its reasonable control. This includes, without limitation, strikes, labor difficulties, riot, war, acts of terror, fire, death, curtailment of a party's source of supply, or government decrees or orders.
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. The severed provision, or portion thereof, shall be reformed to reflect the purpose of the provision as closely as possible.
1.6 - Waiver
The Company never gives up its right to insist on compliance with the Agreement and with the applicable laws governing the conduct of a business. No failure of ZYNN to exercise any right or power under the Agreement or to insist upon strict compliance by an Ambassador 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 ZYNN's right to demand exact compliance with the Agreement. Waiver by ZYNN can be effectuated only in writing by an authorized officer of the Company. ZYNN's waiver of any particular breach by an Ambassador shall not affect or impair ZYNN's rights with respect to any subsequent breach, nor shall it affect in any way the rights or obligations of any other Customer or Ambassador. Nor shall any delay or omission by ZYNN to exercise any right arising from a breach affect or impair ZYNN's rights as to that or any subsequent breach. The existence of any claim or cause of action of an Ambassador against ZYNN shall not constitute a defense to ZYNN's enforcement of any term or provision of the Agreement.
2.1 - Requirements to Become a Customer or Ambassador
To become a ZYNN Customer or Ambassador, each applicant must:
ZYNN reserves the right to accept or reject any Ambassador Agreement for any reason or for no reason.
2.2 - No Product Purchase Required
No person is required to purchase ZYNN Products or services or to pay any charge or fee to become an Ambassador. In order to familiarize new Customer or Ambassadors with ZYNN products, services, sharing techniques, and other matters, the Company provides replicated websites through initial purchase of ZYNN product. ZYNN may at its discretion repurchase resalable products from any Ambassador who terminates his or her Ambassador Agreement pursuant to the terms of Section 7.3.
2.3 – Ambassador Benefits
Once an Ambassador Agreement has been completed, the benefits of the Marketing and Rewards Plan are available to the new Ambassador. These benefits include the right to:
2.4 - Term and Renewal of Your ZYNN Business
The term of the Ambassador Agreement is one year from the date of its acceptance by ZYNN (subject to prior termination or reclassification pursuant to Section 10). Customer or Ambassadors must renew their Ambassador Agreement each year by purchasing products through their own website on or before the anniversary date of their Ambassador Agreement. If the purchase is not made within 30 days after the expiration of the current term of the Ambassador Agreement, the Ambassador Agreement will be canceled.
3.1 - Adherence to the ZYNN Marketing and Rewards Plan
Customer or Ambassadors must adhere to the terms of the ZYNN Marketing and Rewards Plan as set forth in official ZYNN literature. Customer or Ambassadors shall not offer the ZYNN opportunity through, or in combination with, any other system, program, or method of marketing other than that specifically set forth in official ZYNN literature. Customer or Ambassadors shall not require or encourage other current Customers or Ambassadors to participate in ZYNN in any manner that varies from the program as set forth in official ZYNN literature. Customer or Ambassadors shall not require or encourage other current Customers or Customer or Ambassadors to execute any agreement or contract other than official ZYNN agreements and contracts in order to become a ZYNN Customer or Ambassador. Similarly, Customer or Ambassadors shall not require or encourage other current Customers or Customer or Ambassadors to make any purchase from, or payment to, any individual or other entity to participate in the ZYNN Marketing and Rewards Plan other than those purchases or payments identified as recommended or required in official ZYNN literature.
3.2 - Advertising
All Customer or Ambassadors shall safeguard and promote the good reputation of ZYNN and its products. The marketing and promotion of ZYNN, the ZYNN opportunity, the Marketing and Rewards Plan, and ZYNN products and services shall be consistent with the public interest, and must avoid all discourteous, deceptive, misleading, unethical or immoral conduct or practices.
To promote both the products and services, and the opportunity ZYNN offers, Customer or Ambassadors should use the support and marketing materials produced by or approved by ZYNN. Accordingly, if an Ambassador wishes to create his or her own promotional material(s), the Ambassador must not violate any ZYNN Policies or procedures and be willing to terminate using his or her own promotional material(s) at the request of the company, at any time for any reason.
The rationale behind this requirement is simple: ZYNN has carefully designed its products, product labels, Marketing and Rewards Plan, and promotional materials to ensure that each aspect of ZYNN is fair, truthful, substantiated, and complies with the vast and complex legal requirements of federal and state laws. When ZYNN Customer or Ambassadors develop their own promotional materials, notwithstanding their integrity and good intentions, they could unintentionally violate any number of statutes or regulations affecting a ZYNN business. These violations, although they may be relatively few in number, would jeopardize the ZYNN opportunity for all Customer or Ambassadors.
In addition, Customer or Ambassadors may not create side-businesses selling sales aids to other ZYNN Customer or Ambassadors. Therefore, Customer or Ambassadors who to produce their own sales aids may not sell such material to any other ZYNN Customer or Ambassador. Customer or Ambassadors may make approved material available to other Customer or Ambassadors free of charge if they wish, but may not charge other ZYNN Customer or Ambassadors for the material.
3.2.2 – Ambassador Web Sites
Each Ambassador is given a company replicated website to promote his or her business. This program permits Customers or Ambassadors to advertise on the Internet as well as through text, social, email and other forms of communication which will seamlessly link directly to the official ZYNN website giving the Ambassador a professional and Company-approved presence on the Internet. Accordingly, if an Ambassador wishes to independently create, design and support an independent website that uses the names, logos, or product descriptions of ZYNN Promoting ZYNN products or the ZYNN Opportunity, the Ambassador must not violate any ZYNN policies or procedures and be willing to terminate using his or her own promotional website(s) at the request of the company, at any time for any reason.
Customers or Ambassadors who develop their own web pages or websites are encouraged to use the same copy and text and images of the Company's official website. Customer or Ambassadors who develop or publish their own websites must notify ZYNN about their site(s). The failure to notify constitutes a material breach of these policies and procedures.
3.2.3 - Blogs, Chat Rooms, Social Networks, Online Auctions, and other Online Forums
Customer or Ambassadors may use online blogs, chat rooms, social networks, online auctions sites, or any other online forum to market, sell, advertise, promote, or discuss ZYNN's products or services or the ZYNN opportunity. However, the use of these sites is subject to the advertising guidelines set forth in this Section 3.2.
3.2.4 - Domain Names and Email Addresses
Customer or Ambassadors may not use or attempt to register "ZYNN" or any of ZYNN's trade names, trademarks, service names, service marks, product names, the Company's name, or any derivative thereof, for any Internet domain name. Nor may Customer or Ambassadors incorporate or attempt to incorporate any of the Company's trade names, trademarks, service names, service marks, product names, the Company's name, or any derivative thereof, into any electronic mail address.
3.2.5 - Trademarks and Copyrights
The name of ZYNN and other names as may be adopted by ZYNN are proprietary trade names, trademarks, and service marks of ZYNN (collectively "marks"). As such, these marks are of great value to ZYNN and are supplied to Customer or Ambassadors for their use only in an expressly authorized manner. ZYNN will not allow the use of its trade names, trademarks, designs, or symbols, or any derivatives of such marks, by any person, including ZYNN Customer or Ambassadors, without its prior, written permission.
The content of all Company events is copyrighted material. Customers or Ambassadors may not produce for sale or distribution any recorded Company events and speeches without written permission from ZYNN Nor may Customer or Ambassadors reproduce for sale or for personal use any recording of Company-produced audio or video tape presentations.
As an independent Customer or Ambassador, you may use the ZYNN name in the following manner
Customer or Ambassador's Name
ZYNN Independent Ambassador
ZYNN Independent Ambassador
Customer or Ambassadors may not use the name "ZYNN" in any form in a team name, a tagline, an external website name, a personal website address or extension, in an e-mail address, as a personal name, or as a nickname. For example, an Ambassador may not secure the domain name www.buyzynn.com or www.buyzynnlife.com nor may an Ambassador create an email address such as ZynnLifeSales@gmail.com. Additionally, an Ambassador may only use the phrase ZYNN Independent Ambassador in telephone greetings or on an answering machine to clearly separate the Customer or Ambassador's independent ZYNN business from ZYNN
3.2.6 – Advertised Prices
ZYNN has established a Minimum Advertised Price ("MAP") program that sets forth the Company's policy with respect to the advertising and sale of its products. The Company reserves the right to refuse to sell its products to any Ambassador who sells ZYNN products at prices less than those listed on MAP program price list. Notwithstanding this policy, Customer or Ambassadors are free to re-sell ZYNN products at any price they choose. However, the Company reserves the right to refuse to do business with any Ambassador who chooses to sell ZYNN products at prices less than those published on the MAP program price list. The MAP program price list, which ZYNN may amend at any time at its sole discretion, may be accessed via each Customer or Ambassador's Back Office.
Customer or Ambassadors may not create their own marketing or advertising materials offering any ZYNN products at a price less than the prices listed on the current MAP program price list. This includes products listed and sold via online websites such as eBay and Craigslist.
3.2.7 - Media and Media Inquiries
Customer or Ambassadors must not attempt to respond to media inquiries regarding ZYNN, its products or services, or their independent ZYNN business. All inquiries by any type of media must be immediately referred to ZYNN's Marketing Department. This policy is designed to assure that accurate and consistent information is provided to the public as well as a proper public image. Customer or Ambassadors must not utilize radio or television media for the advertising, distribution or promotion of ZYNN products or opportunity without the express written consent of ZYNN In the event that ZYNN does grant permission for the use of such media, ZYNN must have final authority on every stage of the production process with full rights to all recordings.
3.2.8 - Unsolicited Email
ZYNN does not permit Customer or Ambassadors to send unsolicited commercial emails unless such emails strictly comply with applicable laws and regulations including, without limitation, the federal CAN SPAM Act. Any email sent by an Ambassador that promotes ZYNN, the ZYNN opportunity, or ZYNN products and services must comply with the following:
ZYNN may periodically send commercial emails on behalf of Customer or Ambassadors. By entering into the Ambassador Agreement, Ambassador agrees that the Company may send such emails and that the Customer or Ambassador's physical and email addresses will be included in such emails as outlined above. Customer or Ambassadors shall honor opt-out requests generated as a result of such emails sent by the Company.
3.2.9 - Unsolicited Faxes
Except as provided in this section, Customer or Ambassadors may not use or transmit unsolicited faxes in connection with the operation of their ZYNN businesses. The term "unsolicited faxes" means the transmission via telephone facsimile of any material or information advertising or promoting ZYNN, its products, the Marketing and Rewards Plan or any other aspect of the company which is transmitted to any person, except that these terms do not include a fax: (a) to any person with that person's prior express invitation or permission; or (b) to any person with whom the Ambassador has an established business or personal relationship. The term "established business or personal relationship" means a prior or existing relationship formed by a voluntary two way communication between an Ambassador and a person, on the basis of: (a) an inquiry, application, purchase or transaction by the person regarding products offered by such Customer or Ambassador; or (b) a personal or familial relationship, which relationship has not been previously terminated by either party.
3.2.10 – Telephone Directory Listings
3.2.11 - Prohibited Postings
3.2.12 – Online Classifieds
As long as the price advertising requirements of Section 3.2.6 are adhered to, Customer or Ambassadors may use online classifieds (e.g., Craigslist) to list, sell or retail ZYNN products. In addition, Customer or Ambassadors may use such online classifieds for prospecting, recruiting, referring and informing the public about the ZYNN business opportunity, provided ZYNN approved name and title templates/images are used. These templates will identify the Ambassador a ZYNN Independent Ambassador. If a link or URL is provided, it must link to the Customer or Ambassador's Replicated Website or Registered External Website.
3.2.13 – eBay / Online Auctions
Provided the price advertising requirements of Section 3.2.6 are adhered to, Customer or Ambassadors may list ZYNN products on eBay or other online auctions. However, Customer or Ambassadors may not enlist or knowingly allow a third party to sell ZYNN products on eBay or other online auction sites.
3.2.14 – Online Retailing
Provided the price advertising requirements of Section 3.2.6 are adhered to, Customer or Ambassadors may list or sell ZYNN products on online retail stores and ecommerce sites. However, an Ambassador may not enlist or knowingly allow a third party to sell ZYNN products on any online retail store or ecommerce site.
3.2.15 – Banner Advertising and Links
Customer or Ambassadors may place banner advertisements on a website provided the Ambassador uses ZYNN approved templates and images. All banner advertisements must link to a Customer or Ambassador's Replicated Website. Customer or Ambassadors may not use blind ads (ads that do not disclose the identity of the Company) or web pages that make product or income claims that are ultimately associated with ZYNN products or the ZYNN opportunity.
3.2.16 – Spam Linking
Spam linking is defined as multiple consecutive submissions of the same or similar content into blogs, wikis, guest books, websites or other publicly accessible online discussion boards or forums and is not allowed. This includes blog spamming, blog comment spamming and/or spamdexing. Any comments that an Ambassador makes on blogs, forums, guest books etc. must be unique, informative and relevant. Ambassadors are responsible for all content they create or share.
3.2.17 – Digital Media Submissions
Customer or Ambassadors may upload, submit or publish ZYNN related video, audio or photo content that they develop and create to sites such as YouTube, Photo Bucket, Pinterest, and Instagram, so long as it aligns with ZYNN values, contributes to the ZYNN community greater good and is in compliance with ZYNN's Policies and Procedures. All submissions must clearly identify the submitter as an ZYNN Independent Ambassador in the content itself and in the content description tag, must comply with all copyright/legal requirements, and must state that the submitter is solely responsible for this content. Customer or Ambassadors may not upload, submit or publish any content (video, audio, presentations or any computer files) received from ZYNN or captured at official ZYNN events or in buildings owned or operated by ZYNN without prior written permission.
3.2.18 – Social Media Policies
In addition to meeting all other requirements specified in these Policies and Procedures, should an Ambassador utilize any form of social media, including but not limited to Facebook, Twitter, LinkedIn, YouTube, Instagram, or Pinterest, the Ambassador agrees to each of the following:
To generate sales, a social media site must link only to the Customer or Ambassador's ZYNN Replicated Website.
3.3 - Bonus Buying Prohibited
Bonus buying is strictly and absolutely prohibited. ―Bonus buying includes: (a) the enrollment of individuals or entities without their knowledge of and/or execution of an ZYNN Ambassador Agreement by such individuals or entities; (b) the fraudulent enrollment of an individual or entity as an Ambassador or Customer; (c) the enrollment or attempted enrollment of non-existent individuals or entities as Customer or Ambassadors or Preferred Customers (phantoms); (d) purchasing ZYNN products or services on behalf of another Ambassador or Customer, or under another Customer or Ambassador's I.D. number, to qualify for Rewards or bonuses; (e) purchasing excessive amounts of goods or services that cannot reasonably be used or resold in a month; and/or (f) any other mechanism or artifice to qualify for, incentives, prizes, Rewards or bonuses that is not driven by bona fide product or service purchases by end user consumers.
3.4 - Business Entities
A corporation, limited liability company (LLC), partnership or trust (collectively referred to in this section as a" Business Entity") may apply to be a ZYNN Ambassador by submitting an Ambassador Agreement during the purchase process together with a properly completed Business Entity Registration Form and a properly completed IRS Form W-9. The Business Entity and its shareholders, members, managers, partners, trustees, or other parties with any ownership interest in, or management responsibilities for, the Business Entity (collectively "Affiliated Parties") are jointly and severally liable for any indebtedness to ZYNN, compliance with the Policies and Procedures, compliance with the Ambassador Agreement, and all other obligations to ZYNN. If a Business Entity enrolls as an Ambassador online, Business Entity Registration Form and IRS Form W-9 must be submitted to ZYNN within 30 days of the online enrollment. (If not received within the 30-day period, the Ambassador Agreement shall automatically terminate.)
To prevent the circumvention of Section 3.25. (regarding transfers and assignments of ZYNN business), if an additional partner, shareholder, member, or other business entity affiliate is added to a business entity, the original applicant must remain as a party to the original Ambassador Agreement. If the original Ambassador wants to terminate his or her relationship with the Company, he or she must transfer or assign his or her business in accordance with Section 3.25. If this process is not followed, the business shall be canceled upon the withdrawal of the original Customer or Ambassador. All bonus and commission payments will be sent to the address of record of the original Customer or Ambassador. Please note that the modifications permitted within the scope of this paragraph do not include a change of the enroller. Changes of the enroller are addressed in Section 3.5 below. There is a $50.00 fee for each change requested, which must be included with the written request and the completed Ambassador Agreement. ZYNN may, at its discretion, require notarized documents before implementing any changes to a ZYNN business. Please allow thirty (30) days after the receipt of the request by ZYNN for processing.
3.4.1 - Changes to a Business Entity
A ZYNN business may change its status under the same the enroller from an individual to a partnership, LLC, corporation or trust, or from one type of entity to another. There is a $50.00 fee for each change requested, which must be included with the written request and the completed Ambassador Agreement. Such changes shall be processed only once per year and must be submitted by November 30 to become effective on January 1 of the following year. In addition, Customer or Ambassadors operating their ZYNN businesses utilizing a business entity must notify ZYNN of the addition or removal of any officers, directors, shareholders, managers, members or business associates of the business entity.
3.5 - Change of the Enroller
To protect the integrity of all Ambassador Organizations and safeguard the hard work of all Customer or Ambassadors, ZYNN strongly discourages changes in the enroller. Maintaining the integrity of the enroller is critical for the success of every Ambassador. Accordingly, the transfer of a ZYNN business from one enroller to another is rarely permitted.
Requests for change of the enroller must be submitted in writing to the Customer Services Department and must include the reason for the transfer. Transfers will only be considered in the following two circumstances:
a) In cases in which the new Ambassador is accidently enrolled by someone other than the individual he or she was led to believe would be his or her enroller, an Ambassador may request that he or she be transferred to another organization with his or her entire Ambassador Organization intact. All requests for transfer alleging fraudulent enrollment practices shall be evaluated on a (case by case) basis. Requests for transfer under this policy will be evaluated on a case-by-case basis and must be made within 60 days from the date of enrollment. The Ambassador requesting the change has the burden of proving that he or she was placed beneath the wrong the enroller.
b) The Ambassador seeking to transfer submits a properly completed and fully executed Enroller Transfer Form which includes the written approval of his or her active the enroller. Photocopied or facsimile signatures are not acceptable. All Ambassador signatures must be notarized. The Ambassador who requests the transfer must submit a fee of $50.00 for administrative charges and data processing. If the transferring Ambassador also wants to move any of the Customer or Ambassadors in his or her Ambassador Organization, each Ambassador must also obtain a properly completed enroller Transfer Form and return it to ZYNN with the $50.00 change fee (i.e., the transferring Ambassador and each Ambassador in his or her Ambassador Organization multiplied by $50.00 is the cost to move a ZYNN business.) Organizational Customer or Ambassadors will not be moved with the transferring Ambassador unless all of the requirements of this paragraph are met. Transferring Customer or Ambassadors must allow thirty (30) days after the receipt of the enroller Transfer Forms by ZYNN for processing and verifying change requests.
3.5.1 - Cancellation and Re-application
An Ambassador may legitimately change organizations by voluntarily cancelling his or her ZYNN business by submitting a cancelation letter and remaining inactive (i.e., no purchases of ZYNN products for resale, no sales of ZYNN products, no referring, no attendance at any ZYNN functions, participation in any other form of Ambassador activity, or operation of any other ZYNN business) for three (3) full calendar months. Following the three-month period of inactivity, the former Ambassador may reapply under a new the enroller. They cannot partner or add his or her name to an existing Ambassador account. ZYNN will consider waiving the three-month waiting period under exceptional circumstances. Such requests for waiver must be submitted to ZYNN in writing.
3.5.2 - Waiver of Claims
In cases wherein the appropriate the enroller change procedures have not been followed, and an organization has been developed in the second business developed by a Customer or Ambassador, ZYNN reserves the sole and exclusive right to determine the final disposition of the organization. Resolving conflicts over the proper placement of an organization that has developed under an organization that has improperly switched the enrollers is often extremely difficult. Therefore, CUSTOMER OR AMBASSADORS WAIVE ANY AND ALL CLAIMS AGAINST ZYNN, ITS OFFICERS, DIRECTORS, OWNERS, EMPLOYEES, AND AGENTS THAT RELATE TO OR ARISE FROM ZYNN'S DECISION REGARDING THE DISPOSITION OF ANY ORGANIZATION THAT IS ENROLLED OR IS DEVELOPED BY REFERRAL OR THROUGH AN EXISTING ORGANIZATION OF THE THEN REFERRING AMBASSADOR THAT HAS IMPROPERLY CHANGED LINES OF THE AMBASSADOR.
3.6 – Unauthorized Claims and Actions
3.6.1 - Indemnification
An Ambassador is fully responsible for all of his or her verbal and written statements made regarding ZYNN products, services, and the Marketing and Rewards Plan which are not expressly contained in official ZYNN materials. This includes statements and representations made through all sources of communication media, whether person-to-person, in meetings, online, through Social Media, in print, or any other means of communication. Customer or Ambassadors agree to indemnify ZYNN and ZYNN's directors, officers, employees, and agents, and hold them harmless from any and all liability including judgments, civil penalties, refunds, attorney fees, court costs, or lost business incurred by ZYNN as a result of the Customer or Ambassador's unauthorized representations or actions. This provision shall survive the termination of the Ambassador Agreement.
3.6.2 - Product Claims
No claims (other than personal experiences and personal testimonials) as to therapeutic, curative or beneficial properties of any products offered by ZYNN may be made except those contained in official ZYNN literature. In particular, no Ambassador may make any claim that ZYNN products are useful (for other people) in the cure, treatment, diagnosis, mitigation or prevention of any diseases. Such statements can be perceived as medical or drug claims, and they may lack adequate substantiation. Not only are such claims in violation of the Ambassador Agreement, they also potentially violate the laws and regulations of the United States, and other countries.
3.6.3 – Rewards Plan Claims
When presenting or discussing the ZYNN Marketing and Rewards Plan, Customer or Ambassadors must make it clear to Customer or Ambassadors that financial success with ZYNN requires commitment, effort, marketing and sales skill. Conversely, Customer or Ambassadors must never represent that one can be successful without diligently applying themselves. Examples of misrepresentations in this area include:
The above are just examples of improper representations about the Rewards Plan. It is important that Customer or Ambassadors do not make these or any other representations that could lead an Ambassador to believe that he or she can be successful as a ZYNN Ambassador without commitment, effort, marketing and sales skill.
3.6.4 - Income Claims
In their enthusiasm to refer Customer or Ambassadors, some Customer or Ambassadors are occasionally tempted to make income claims or earnings representations to demonstrate the inherent power of network marketing. This is counterproductive because new Customer or Ambassadors may become disappointed very quickly if their results are not as extensive or as rapid as the results others have achieved. At ZYNN, we firmly believe that the ZYNN income potential is great enough to be highly attractive, without reporting the earnings of others.
Moreover, the Federal Trade Commission and several states have laws or regulations that regulate or even prohibit certain types of income claims and testimonials made by persons engaged in peer to peer, referral marketing. While Customer or Ambassadors may believe it beneficial to provide copies of commission payments, or to disclose the earnings of themselves or others, such approaches have legal consequences that can negatively impact ZYNN as well as the Ambassador making the claim unless appropriate disclosures required by law are also made contemporaneously with the income claim or earnings representation.
Because ZYNN Customer or Ambassadors do not have the data necessary to comply with the legal requirements for making income claims, a Customer or Ambassador, when presenting or discussing the ZYNN opportunity or Marketing and Rewards Plan to a Customer or Ambassador, may not make income projections, income claims, or disclose his or her ZYNN income (including the showing of commission payments, copies of commission payments, bank statements, or tax records).
3.7 - Repackaging and Re-labeling Prohibited
ZYNN products may only be sold in their original packaging. Customer or Ambassadors may not repackage, re-label, or alter the labels on ZYNN product. Tampering with labels/packaging could be a violation of federal and state laws, and may result in civil or criminal liability. Customer or Ambassadors may affix a personalized sticker with your personal/contact information to each product or product container, as long as you do so without removing existing labels or covering any text, graphics, or other material on the product label.
3.8 - Commercial Outlets
Provided the price advertising requirements of Section 3.2.6 are adhered to, Customer or Ambassadors may display and sell ZYNN products at service, retail and commercial outlets, and may offer ZYNN products for sale at auction and classified websites such as eBay and craigslist.
3.9 - Trade Shows, Expositions and Other Sales Forums
Customer or Ambassadors may display and/or sell ZYNN products at trade shows and professional expositions. Before submitting a deposit to the event promoter,
Customer or Ambassadors must contact the Customer Services Department in writing for conditional approval, as ZYNN's policy is to authorize only one ZYNN business per event. Final approval will be granted to the first Ambassador who submits an official advertisement of the event, a copy of the contract signed by both the Ambassador and the event official, and a receipt indicating that a deposit for the booth has been paid. Approval is given only for the event specified. Any requests to participate in future events must again be submitted to the Customer Services Department. ZYNN further reserves the right to refuse authorization to participate at any function which it does not deem a suitable forum for the promotion of its products, services, or the ZYNN opportunity. Approval will not be given for swap meets, garage sales, flea markets or farmer's markets as these events are not conducive to the professional image ZYNN wishes to portray.
3.10 - Conflicts of Interest
3.10.1 – Non-solicitation
ZYNN Customer or Ambassadors are free to participate in other peer to peer, referral, multilevel or network marketing business ventures or marketing opportunities. However, during the term of this Agreement, Customer or Ambassadors may not directly or indirectly recruit other ZYNN Customer or Ambassadors or Preferred Customers for any other network marketing business.
Following the cancellation of a Customer or Ambassador Agreement, and for a period of three calendar months thereafter, with the exception of an Ambassador who was personally the enroller by the former Customer or Ambassador, a former Ambassador may not recruit any ZYNN Ambassador or Customer for another networking business.
During the term of this Agreement and for a period of 12 calendar months thereafter, an Ambassador may not use any social media site on which they discuss or promote, or have discussed or promoted, the ZYNN business or ZYNN's products to directly or indirectly recruit ZYNN Customer or Ambassadors for other peer to peer, referral, direct selling or network marketing program (collectively, "direct selling"). In furtherance of this provision, an Ambassador shall not take any action that may reasonably be foreseen to result in drawing an inquiry from other Customer or Ambassadors relating to the Customer or Ambassador's other direct selling business activities.
Customer or Ambassadors and the Company recognize that because peer to peer, referral and network marketing is conducted through networks of independent contractors dispersed across the entire United States and internationally, and business is commonly conducted via the Internet and telephone, an effort to narrowly limit the geographic scope of this non-solicitation provision would render it wholly ineffective. Therefore, Customer or Ambassadors and ZYNN agree that this non-solicitation provision shall apply nationwide and to all international markets in which ZYNN Customer or Ambassadors are located. This provision shall survive the termination or expiration of the Agreement.
As used in this subsection 3.10.1, The term "recruit" means the actual or attempted the enroller, solicitation, enrollment, encouragement, or effort to influence in any other way, either directly, indirectly, or through a third party, another ZYNN Ambassador to enroll or participate in another multilevel marketing, network marketing or direct sales opportunity.
3.10.2 - Sale of Competing Goods or Services
Customer or Ambassadors must not sell, or attempt to sell, any competing non-ZYNN programs, products or services to ZYNN Preferred Customers or Customer or Ambassadors. Any program, product or service in the same generic categories as ZYNN products or services is deemed to be competing, regardless of differences in cost, quality, or distinguishing factors.
3.10.3 – Ambassador Participation in Other Direct Selling Programs
If an Ambassador is engaged in other non-ZYNN direct selling programs, it is the responsibility of the Ambassador to ensure that his or her ZYNN business is operated entirely separate and apart from any other program in which the Ambassador participates. To this end, the following must be adhered to:
3.10.4 -Activity (Genealogy) Reports
Activity Reports are available for Ambassador access and viewing at ZYNN official web site. Ambassador access to their organizational Activity Reports is password protected. All Activity Reports and the information contained therein are confidential and constitute proprietary information and business trade secrets belonging to ZYNN Activity Reports are provided to Customer or Ambassadors in strictest confidence and are made available to Customer or Ambassadors for the sole purpose of assisting Customer or Ambassadors in working with their respective Ambassador Organizations in the development of their ZYNN business. Customer or Ambassadors should use their Organizational Activity Reports to assist, motivate, and train their Customer or Ambassadors. The Ambassador and ZYNN agree that, but for this agreement of confidentiality and nondisclosure, ZYNN would not provide organizational Activity Reports to the Customer or Ambassador. An Ambassador shall not, on his or her own behalf, or on behalf of any other person, partnership, association, corporation or other entity:
Upon demand by the Company, any current or former Ambassador will return the original and all copies of Activity Reports to the Company. The obligations of an Ambassador under this subsection 3.10.4 shall survive cancellation or termination of the Agreement, and shall remain effective and binding irrespective of whether a Customer or Ambassador's Agreement has been terminated, or whether the Ambassador is or is not otherwise affiliated with the Company.
3.10.5 - Targeting Other Direct Sellers
ZYNN does not condone Customer or Ambassadors specifically or consciously targeting the sales force of another direct sales company to sell ZYNN products or to become Customer or Ambassadors for ZYNN, nor does ZYNN condone Customer or Ambassadors solicitation or enticement of members of the sales force of another direct sales company to violate the terms of their contract with such other company. Should Customer or Ambassadors engage in such activity, they bear the risk of being sued by the other direct sales company. If any lawsuit, arbitration or mediation is brought against an Ambassador alleging that he or she engaged in inappropriate recruiting activity of its sales force or customers, ZYNN will not pay any of Customer or Ambassador's defense costs or legal fees, nor will ZYNN indemnify the Ambassador for any judgment, award, or settlement.
3.11 - Cross-Referring
Actual or attempted cross referring is strictly prohibited. Cross referring is defined as the enrollment of an individual who or entity that already has a current Customer or Ambassador Agreement on file with ZYNN, or who has had such an agreement within the preceding three calendar months, within a different line of the enroller. The use of a spouse's or relative's name, trade names, DBAs, assumed names, corporations, partnerships, trusts, federal ID numbers, or fictitious ID numbers to circumvent this policy is prohibited. Customer or Ambassadors shall not demean, discredit or defame other ZYNN Customer or Ambassadors in an attempt to entice another Ambassador to become part of the first Customer or Ambassador's Ambassador Organization. This policy shall not prohibit the transfer of a ZYNN business in accordance with Section 3.25
If Cross Referring is discovered, it must be brought to the Company's attention immediately. ZYNN may take disciplinary action against the Ambassador that changed organizations and/or those Customer or Ambassadors who encouraged or participated in the Cross Referring. ZYNN may also move all or part of the offending Customer or Ambassador's Ambassador Organization to his or her original Ambassador Organization if the Company deems it equitable and feasible to do so. However, ZYNN is under no obligation to move the Cross Referring Customer or Ambassador's Ambassador Organization, and the ultimate disposition of the organization remains within the sole discretion of ZYNN Customer or Ambassadors waive all claims and causes of action against ZYNN arising from or relating to the disposition of the Cross-Referring Customer or Ambassador's Ambassador Organization.
3.12 - Errors or Questions
If an Ambassador has questions about or believes any errors have been made regarding Rewards, bonuses, Activity Reports, or charges, the Ambassador must notify ZYNN in writing within 60 days of the date of the purported error or incident in question. ZYNN will not be responsible for any errors, omissions or problems not reported to the Company within 60 days.
3.13 - Governmental Approval or Endorsement
Neither federal nor state regulatory agencies or officials approve or endorse any direct selling or network marketing companies or programs. Therefore, Customer or Ambassadors shall not represent or imply that ZYNN or its Marketing and Rewards Plan have been "approved," "endorsed" or otherwise sanctioned by any government agency.
3.14 - Holding Applications or Orders
Customer or Ambassadors must not manipulate enrollments of new applicants and purchases of products. All Ambassador Applications and Agreements, and product orders must be sent through ZYNN website.
3.15 - Identification
All Customer or Ambassadors are required to provide their Social Security Number, or a Federal Employer Identification Number to ZYNN prior to receiving any bonuses. Upon the receipt of any bonus the Company will provide a rewards authorization payment process will be identified. This process will be used to pay and track rewards bonuses.
3.16 - Income Taxes
Each Ambassador is responsible for paying local, state and federal taxes on any income generated as a ZYNN Customer or Ambassador. If a ZYNN business is tax exempt, the Federal tax identification number must be provided to ZYNN Every year, ZYNN will provide an IRS Form 1099 MISC (Non-employee Rewards) earnings statement to each U.S. resident who: 1) Had earnings of over $600 in the previous calendar year; or 2) Made purchases during the previous calendar year in excess of $5,000.
3.17 - Independent Contractor Status
Customer or Ambassadors are independent contractors, and are not purchasers of a franchise or a business opportunity. The agreement between ZYNN and its Customer or Ambassadors does not create an employer/employee relationship, agency, partnership, or joint venture between the Company and the Customer or Ambassador. Customer or Ambassadors shall not be treated as an employee for his or her services or for Federal or State tax purposes. All
Customer or Ambassadors are responsible for paying local, state, and federal taxes due from all rewards earned as an Ambassador of the Company. The Ambassador has no authority (expressed or implied), to bind the Company to any obligation. Each
Ambassador shall establish his or her own goals, hours, and methods of sale, so long as he or she complies with the terms of the Ambassador Agreement, these Policies and Procedures, and applicable laws.
3.18 - Insurance
You may wish to arrange insurance coverage for your business. Your homeowner's insurance policy does not cover business-related injuries, or the theft of or damage to inventory or business equipment. Contact your insurance agent to make certain that your business property is protected. This can often be accomplished with a simple
Business Pursuit endorsement attached to your present homeowner's policy.
3.19 - International Marketing
Because of critical legal and tax considerations, ZYNN must limit the resale of ZYNN, products and services, and the presentation of the ZYNN business to customers and Customer or Ambassadors located within the United States and U.S. Territories and those other countries that the Company has announced are officially opened for business. Moreover, allowing a few Customer or Ambassadors to conduct business in markets not yet opened by ZYNN would violate the concept of affording every Ambassador the equal opportunity to expand internationally.
Accordingly, Customer or Ambassadors are authorized to sell ZYNN products and services, and enroll Customers or Ambassadors only in the countries in which ZYNN is authorized to conduct business, as announced in official Company literature. ZYNN products or sales aids cannot be shipped into or sold in any foreign country. Customer or Ambassadors may sell, give, transfer, or distribute ZYNN products or sales aids only in their home country. In addition, no Ambassador may, in any unauthorized country: (a) conduct sales, enrollment or training meetings; (b) enroll or attempt to enroll potential customers or Customer or Ambassadors; or (c) conduct any other activity for the purpose of selling ZYNN products, establishing a Ambassador Organization, or promoting the ZYNN opportunity.
3.20 - Inventory Loading
Customer or Ambassadors must never purchase more products than they can reasonably use or sell to retail customers in a month, and must not influence or attempt to influence any other Ambassador to buy more products than they can reasonably use or sell to retail customers in a month.
3.21 - Adherence to Laws and Ordinances
Customer or Ambassadors shall comply with all federal, state, and local laws and regulations in the conduct of their businesses. Many cities and counties have laws regulating certain home-based businesses. In most cases these ordinances are not applicable to Customer or Ambassadors because of the nature of their business. However, Customer or Ambassadors must obey those laws that do apply to them. If a city or county official tells an Ambassador that an ordinance applies to him or her, the Ambassador shall be polite and cooperative, and immediately send a copy of the ordinance to the Compliance Department of ZYNN In most cases there are exceptions to the ordinance that may apply to ZYNN Customer or Ambassadors.
3.22 - Minors
A person who is recognized as a minor in his/her state of residence may not be a ZYNN Customer or Ambassador. Customer or Ambassadors shall not enroll or recruit minors into the ZYNN program.
3.23 - One ZYNN Business Per Customer or Ambassador
An Ambassador may operate or have an ownership interest in only one ZYNN business. No individual may have, operate or receive rewards from more than one ZYNN business. A Customer or Ambassador's spouse can sign up and have an individual position but has to be in the same the enroller tree line.
3.24 - Actions of Household Members or Affiliated Individuals
If any member of a Customer or Ambassador's immediate household engages in any activity which, if performed by the Customer or Ambassador, would violate any provision of the Agreement, such activity will be deemed a violation by the Ambassador and ZYNN may take disciplinary action pursuant to these Policies and Procedures against the Customer or Ambassador. Similarly, if any individual associated in any way with a corporation, partnership, trust or other entity (collectively affiliated individual) violates the Agreement, such action(s) will be deemed a violation by the entity, and ZYNN may take disciplinary action against the entity.
3.25 - Sale, Transfer or Assignment of ZYNN Business
Although a ZYNN business is a privately owned, independently operated business, the sale, transfer or assignment of a ZYNN business is subject to certain limitations. If an Ambassador wishes to sell his or her ZYNN business, the following criteria must be met:
Prior to selling a ZYNN business by submitting a properly completed Request for Approval of Sale or Transfer of Independent Business form and the administrative fee of $100.00 to the Legal Department. In the event the transaction is approved, upon complete execution of the purchase and sale agreement, the parties must submit copies of the same to the Legal Department for review. ZYNN reserves the right to request additional documentation that may be necessary to analyze the transaction between the buyer and seller. The Legal Department will, in its sole and absolute discretion, approve or deny the sale, transfer or assignment within 30 days after its receipt of all necessary documents from the parties.
If the parties fail to obtain ZYNN's approval for the transaction, the transfer shall be voidable at ZYNN's option. The purchaser of the existing ZYNN business will assume the obligations and position of the selling Customer or Ambassador. An Ambassador who sells his or her ZYNN business shall not be eligible to re-apply as a ZYNN Ambassador for a period of at least six (6) full calendar months after the date of the sale.
No changes in line of the enroller can result from the sale or transfer of a ZYNN business. An Ambassador may not sell, transfer or assign individual business centers; if a business is sold, transferred or assigned, all business centers must be included in the transaction.
3.26 - Separation of a ZYNN Business
ZYNN Customer or Ambassadors sometimes operate their ZYNN businesses as husband-wife partnerships, regular partnerships, corporations, limited liability companies ("LLC"), or trusts. At such time as a marriage may end in divorce or a corporation, LLC, partnership or trust (the latter four entities are collectively referred to herein as ―entities) may dissolve, arrangements must be made to assure that any separation or division of the business is accomplished so as not to adversely affect the interests and income of other businesses up or down the line of the enroller. If the separating parties fail to provide for the best interests of other Customer or Ambassadors and the Company in a timely fashion, ZYNN will involuntarily terminate the Ambassador Agreement.
During the divorce or entity dissolution process, the parties must adopt one of the following methods of operation:
Under no circumstances will the Ambassador Organization of divorcing spouses or a dissolving business entity be divided. Similarly, under no circumstances will ZYNN split rewards and bonus payments between divorcing spouses or members of dissolving entities. ZYNN will recognize only one Ambassador Organization and will issue only one commission payment per ZYNN business per commission cycle. Commission payments 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 Rewards and ownership of the business in a timely fashion as determined by the Company, the Ambassador Agreement shall be involuntarily canceled.
If a former spouse has completely relinquished all rights in the original ZYNN business pursuant to a divorce, he or she is thereafter free to enroll under any the enroller of his or her choosing without waiting six calendar months. In the case of business entity dissolutions, the former partner, shareholder, member, or other entity affiliate who retains no interest in the business must wait six calendar months from the date of the final dissolution before re-enrolling as a Customer or Ambassador. In either case, however, the former spouse or business affiliate shall have no rights to any Customer or Ambassadors in their former organization or to any former retail customer. They must develop the new business in the same manner as would any other new Customer or Ambassador.
3.27 - Referring
All active Customer or Ambassadors in good standing have the right to refer and enroll others into ZYNN Each Customer or Ambassador has the ultimate right to choose his or her own enroller. If two Customer or Ambassadors claim to be the enroller of the same new Ambassador or Customer, the Company shall regard the first application received by the Company as controlling.
When referring a new Ambassador through the online enrollment process, the enroller may assist the new applicant in filling out the enrollment materials. However, the applicant must personally review and agree to the online purchase agreement, ZYNN's Policies and Procedures, and the ZYNN Marketing and Rewards Plan. The enroller may not fill out the online application and agreement on behalf of the applicant and agree to these materials on behalf of the applicant.
3.28 - Succession
Upon the death or incapacitation of a Customer or Ambassador, his or her business may be passed to his or her heirs. Appropriate legal documentation must be submitted to the
Company to ensure the transfer is proper. Accordingly, an Ambassador should consult an attorney to assist him or her in the preparation of a will or other testamentary instrument. Whenever a ZYNN business is transferred by a will or other testamentary process; the beneficiary acquires the right to collect all bonuses and Rewards of the deceased Customer or Ambassador's Ambassador Organization provided the following qualifications are met. The successor(s) must:
Bonus and commission payments of a ZYNN business transferred pursuant to this section will be paid in a single payment jointly to the devisees. The devisees must provide ZYNN with an address of record to which all bonus and commission payments will be sent. If the business is bequeathed to joint devisees, they must form a business entity and acquire a federal taxpayer Identification number. ZYNN will issue all bonus and commission payments and one 1099 to the business entity.
3.28.1 - Transfer Upon Death of a Customer or Ambassador
To effectuate a testamentary transfer of a ZYNN business, the Personal
Representative or Executor of the estate of the deceased Ambassador must provide all necessary documentation to establish a successor's or successors' right to the subject ZYNN business. The successor or successors must complete and execute an Ambassador Agreement and meet the other requirements set forth in Section 2.1.
3.28.2 - Transfer Upon Incapacitation of a Customer or Ambassador
To effectuate a transfer of a ZYNN business because of incapacity, the Trustee of the incapacitated Ambassador must provide all necessary documentation to establish the right of the subject Trust and Trustee to the subject ZYNN business. The Trustee must, on behalf of the Trust, complete and execute an Ambassador Agreement and meet the other requirements set forth in Section 2.1.
3.29 - Telemarketing Techniques
The Federal Trade Commission and the Federal Communications Commission each have laws that restrict telemarketing practices. Both federal agencies (as well as a number of states) have do not call regulations as part of their telemarketing laws.
Although ZYNN does not consider Customer or Ambassadors to be telemarketers in the traditional sense of the word, these government regulations broadly define the term telemarketer and telemarketing so that your inadvertent action of calling someone whose telephone number is listed on the federal do not call registry could cause you to violate the law. Moreover, these regulations must not be taken lightly, as they carry significant penalties (up to $11,000.00 per violation).
Therefore, Customer or Ambassadors must not engage in telemarketing in the operation of their ZYNN businesses. The term telemarketing means the placing of one or more telephone calls to an individual or entity to induce the purchase of a ZYNN product or service, or to recruit them for the ZYNN opportunity. Cold calls" made to customers or Customer or Ambassadors that promote either ZYNN's products or services or the ZYNN opportunity constitute telemarketing and are prohibited. However, a telephone call(s) placed to a customer or Ambassador (a "prospect") is permissible under the following situations:
3.30 - Back-Office Access
ZYNN makes online back offices available to its Customer or Ambassadors. Back offices provide Customer or Ambassadors access to confidential and proprietary information that may be used solely and exclusively to promote the development of a Customer or Ambassador's ZYNN business and to increase sales of ZYNN products. However, access to a back office is a privilege, and not a right. ZYNN reserves the right to deny Customer or Ambassadors' access to the back office at its sole discretion.
4.1 - Change of Address or Telephone
To ensure timely delivery of products, support materials, and commission payments, it is critically important that the ZYNN's files are current. Street addresses are required for shipping since Shipping Carriers cannot deliver to a post office box. Customer or Ambassadors planning to move should update their personal information via the Back-Office function of the Customer or Ambassador's replicated ZYNN website or send their new address and telephone numbers to ZYNN's Corporate Offices to the attention of the Customer Services Department. To guarantee proper delivery, two weeks advance notice must be provided to ZYNN on all changes.
4.2 – Informing and training customers and ambassadors
The Customer or Ambassadors enroller is responsible to educate and help new Customer or Ambassadors in ZYNN product knowledge, effective sharing techniques, the ZYNN Marketing and Rewards Plan, and compliance with Company Policies and Procedures. Communication with and the informing of Customer or Ambassadors. Ambassadors must monitor the Customer or Ambassadors in their Ambassador Organizations to ensure that Customer or Ambassadors do not make improper product or business claims, or engage in any illegal or inappropriate conduct.
4.3 – Non-disparagement.
ZYNN wants to provide Customer or Ambassadors with the best products, rewards plan, and service in the industry. Accordingly, we value your constructive criticisms and comments. All such comments should be submitted in writing to the Customer Service Department. Remember, to best serve you, we must hear from you! While ZYNN welcomes constructive input, negative comments and remarks made in the field by Customer or Ambassadors about the Company, its products, or Marketing and Rewards Plan serve no purpose other than to sour the enthusiasm of other ZYNN Customer or Ambassadors. For this reason, and to set the proper example for their Ambassador Organization, Customer or Ambassadors must not disparage, demean, or make negative remarks about ZYNN, other ZYNN Customer or Ambassadors, ZYNN's products, the Marketing and Rewards Plan, or ZYNN's directors, officers, or employees.
4.4 - Providing Documentation to Applicants.
Customer or Ambassadors must ensure new Customers and Ambassadors review the most current version of the Policies and Procedures before engaging in sharing their referral id.
4.5 - Reporting Policy Violations.
Customer or Ambassadors observing a Policy violation by another Ambassador should submit a written report of the violation directly to the attention of the ZYNN Compliance Department. Details of the incidents such as dates, number of occurrences, persons involved, and any supporting documentation should be included in the report.
4.6 - Vendor Confidentiality/Communications
ZYNN's business relationships with its marketing alliances, vendors, suppliers, Company associates or former employees within or outside the corporate workplace are confidential, proprietary, and not to be circumvented by either the Ambassador or the vendor. An Ambassador shall not contact, directly or indirectly, or speak to or communicate with any representative of any supplier or manufacturer of ZYNN except at a ZYNN the sponsored event at which the representative is present at the request of ZYNN or as otherwise expressly permitted in writing by ZYNN Violation of this regulation may result in termination of the Ambassador and possible claims of damages against the Ambassador and/or the vendor. Questions regarding any of these businesses should be directed to the Compliance Department.
5.1 - Product Sales
The ZYNN Marketing and Rewards Plan is based on the sale of ZYNN products to end consumers. Ambassadors must meet all responsibilities set forth in the Agreement to be eligible for bonuses and rewards. There are not required sales quotas, customer referrals or product sales to maintain status as an Ambassador. However, in the event an Ambassador or Member are inactive or fail to realize any referred sales for a period of six (6) months, in an effort to maintain sales and customer service standards for ZYNN, any customers or members originally referred by the inactive Ambassador may revert to ZYNN. Cancellation for inactivity is also set forth in section 10.2.
5.2 - No Territory Restrictions
There are no exclusive territories granted to anyone. No franchise fees are required.
6.1 - Bonus and Commission Qualifications
An Ambassador must be active and in compliance with the Agreement to qualify for Bonuses and Rewards. So long as an Ambassador complies with the terms of the Agreement, ZYNN shall pay Bonuses and Rewards to such Ambassador in accordance with the Marketing and Rewards Plan.
6.2 - Adjustment to Bonuses and Rewards
Customer or Ambassadors receive bonuses and Rewards based on the actual sales of products and services to end consumers. When a product is returned to ZYNN for a refund or repurchase, or a service is cancelled and the customer is entitled to a refund, either of the following may occur at the Company's discretion: (1) the bonuses and Rewards attributable to the returned or repurchased product or the refunded service will be deducted, in the period in which the refund is given and continuing every pay period thereafter until the bonuses and Rewards are recovered, from the Customer or Ambassadors who received bonuses and Rewards on the sales of the refunded product or cancelled service.
6.3 - Reports
All information provided by ZYNN in online or telephonic Activity Reports, including but not limited to personal and group volume (or any part thereof), and referring 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 electronic check payments; returned products; credit card and electronic check charge-backs; the information is not guaranteed by ZYNN or any persons creating or transmitting the information.
ALL PERSONAL AND GROUP VOLUME INFORMATION IS PROVIDED "AS IS" WITHOUT WARRANTIES, EXPRESS OR IMPLIED, OR REPRESENTATIONS OF ANY KIND WHATSOEVER. IN PARTICULAR BUT WITHOUT LIMITATION THERE SHALL BE NO WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR USE, OR NON-INFRINGEMENT.
TO THE FULLEST EXTENT PERMISSIBLE UNDER APPLICABLE LAW, ZYNN AND/OR OTHER PERSONS CREATING OR TRANSMITTING THE INFORMATION WILL IN NO EVENT BE LIABLE TO ANY AMBASSADOROR ANYONE ELSE FOR ANY DIRECT, INDIRECT, CONSEQUENTIAL, INCIDENTAL, SPECIAL OR PUNITIVE DAMAGES THAT ARISE OUT OF THE USE OF OR ACCESS TO PERSONAL AND GROUP VOLUME INFORMATION (INCLUDING BUT NOT LIMITED TO LOST PROFITS, BONUSES, OR REWARDS, LOSS OF OPPORTUNITY, AND DAMAGES THAT MAY RESULT FROM INACCURACY, INCOMPLETENESS, INCONVENIENCE, DELAY, OR LOSS OF THE USE OF THE INFORMATION), EVEN IF ZYNN OR OTHER PERSONS CREATING OR TRANSMITTING THE INFORMATION SHALL HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. TO THE FULLEST EXTENT PERMITTED BY LAW, ZYNN OR OTHER PERSONS CREATING OR TRANSMITTING THE INFORMATION SHALL HAVE NO RESPONSIBILITY OR LIABILITY TO YOU OR ANYONE ELSE UNDER ANY TORT, CONTRACT, NEGLIGENCE, STRICT LIABILITY, PRODUCTS LIABILITY OR OTHER THEORY WITH RESPECT TO ANY SUBJECT MATTER OF THIS AGREEMENT OR TERMS AND CONDITIONS RELATED THERETO.
Access to and use of ZYNN's online and telephone reporting services and your reliance upon such information is at your own risk. All such information is provided to you "as is". If you are dissatisfied with the accuracy or quality of the information, your sole and exclusive remedy is to discontinue use of and access to ZYNN's online and telephone reporting services and your reliance upon the information.
7.1 - Product Guarantee
ZYNN offers a one-time thirty (30) day money-back satisfaction guarantee on all first purchases (less shipping charges) to all Customers or Ambassadors subject to the following terms and conditions:
Under state and federal cooling-off laws, a retail customer who makes a purchase of $25.00 or more has three business days (five days for Alaska residents and 15 days for residents of North Dakota aged 65 or older) after the sale or execution of a contract to cancel the order and receive a full refund consistent with the cancellation notice on the order form. There are no restocking fees withheld from refunds issued pursuant to this 3 day right of cancellation. When an Ambassador makes a sale or takes an order from a retail customer who cancels or requests a refund within the three business day (five days for Alaska residents and 15 days for North Dakota residents who are 65 or older) period, the Ambassador must promptly refund the customer's money as long as the products are returned to the Ambassador in substantially as good condition as when received. Additionally, Customer or Ambassadors must orally inform retail customers of their right to rescind a purchase or an order within the applicable time period, and ensure that the date of the order or purchase is entered on the order form. All retail customers must be provided with two copies of an official ZYNN sales receipt at the time of the sale. The back of the receipt provides the retail customer with written notice of his or her rights to cancel the sales agreement.
7.3 - Return of Inventory by Customer or Ambassadors Upon Cancellation
Upon cancellation of membership, the Ambassador may return any unused products from a first-time purchase within initial 30 days for a refund. In order to receive a refund from ZYNN under this policy, the following requirements must be met:
Upon receipt of Resalable products, the Ambassador will be reimbursed 90% of the net cost of the original purchase price(s). Shipping and handling charges incurred by an Ambassador when the products were purchased, and return shipping fees, will not be refunded. If the purchases were made through a credit card, the refund will be credited back to the same account. If an Ambassador was paid a bonus or commission based on a product that he or she purchased, and such product is subsequently returned for a refund, the commission that was paid to the Ambassador based on that product purchase will be deducted from the amount of the refund. The returning party shall be responsible for the payment of all shipping costs associated with product returns.
Products and Sales aids shall be deemed "resalable" if each of the following elements is satisfied: 1) they are unopened and unused; 2) packaging and labeling has not been altered or damaged; 3) they are in a condition such that it is a commercially reasonable practice within the trade to sell the merchandise at full price; and 4) they are returned to ZYNN within 30 days from the date of purchase. Any merchandise that is clearly identified at the time of sale as nonreturnable, discontinued, or as a seasonal item, shall not be resalable.
7.4 - Procedures for All Returns
Subject to the provisions above, the following procedures apply to all returns for refund, repurchase, or exchange:
1. All merchandise must be returned by the Ambassador or customer who purchased it directly from ZYNN.
2. All products to be returned must have a Return Authorization Number (RMA) which is obtained by emailing the Customer Services Department. This Return Authorization Number must be written on each carton returned.
3. The return is accompanied by:
4. Proper shipping carton(s) and packing materials are to be used in packaging the product(s) being returned for replacement, and the best and most economical means of shipping is suggested. All returns must be shipped to ZYNN shipping pre-paid. ZYNN does not accept shipping-collect packages. The risk of loss in shipping for returned product shall be on the Customer or Ambassador. If returned product is not received by the Company's Distribution Center, it is the responsibility of the Ambassador to trace the shipment.
No refund or replacement of product will be made if the conditions of these rules are not met.
8.1 - 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 an Ambassador that, in the sole discretion of the Company may damage its reputation or goodwill (such act or omission need not be related to the Customer or Ambassador's ZYNN), may result, at ZYNN's discretion, in one or more of the following corrective measures:
In situations deemed appropriate by ZYNN, the Company may institute legal proceedings for monetary and/or equitable relief.
8.2 - Grievances and Complaints
When an Ambassador has a grievance or complaint with another Ambassador regarding any practice or conduct in relationship to their respective ZYNN businesses, the complaining Ambassador should first report the problem to his or her enroller who should review the matter and try to resolve it with the other party's enroller. If the matter involves interpretation or violation of Company policy, it must be reported in writing to the Customer Services Department at the Company. The Customer Services Department will review the facts and attempt to resolve it. If it is not resolved, it will be referred to the Dispute Resolution Board for final review and determination.
8.3 - Dispute Resolution Board
The purpose of the Dispute Resolution Board ("DRB") is to: (1) review appeals of disciplinary sanctions; and (2) review matters between ZYNN Customer or Ambassadors. After the response or settlement instituted by Customer Services has been denied or otherwise remains unresolved, the DRB reviews evidence, deliberates, and responds to current outstanding issues on a collective basis.
An Ambassador may submit a written request for a telephonic or in-person hearing within seven business days from the date of: (1) the written notice by ZYNN of disciplinary action; or (2) the written decision of Customer Services regarding disputes between Customer or Ambassadors. All communication with ZYNN and the Ambassador seeking resolution of a dispute must be in writing. It is within the DRB's discretion whether a claim is accepted for review. If the DRB agrees to review the matter, it shall schedule a hearing within 30 days of receipt of the Customer or Ambassador's written request. All evidence (e.g., documents, exhibits, etc.) that an Ambassador desires to have considered by the DRB must be submitted to ZYNN no later than seven business days before the date of the hearing. The Ambassador shall bear all of the expenses related to his or her attendance and the attendance of any witnesses he or she desires to be present at the hearing. The decision of the DRB will be final and subject to no further review, except as provided in Sections 8.4 and 8.5 below. During the pendency of the claim before the DRB, the Ambassador waives his or her right to pursue arbitration or any other remedy.
Following issuance of a disciplinary sanction, the disciplined Ambassador may appeal the sanction to the DRB. Customer or Ambassador's appeal must be in writing and received by the Company within 10 days from the date of ZYNN's notice of the disciplinary sanction. If the appeal is not received by ZYNN within the 10-day period, the sanction will be final. The Ambassador must submit all supporting documentation with his or her appeal correspondence. If the Ambassador files a timely appeal of a disciplinary sanction, the DRB will review and reconsider the sanction, consider any other appropriate action, and notify the Ambassador in writing of its decision.
8.4 - Mediation
Prior to instituting any arbitration as provided in Section 8.5 below, 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 conducing the mediation, shall be divided equally between the parties. Each party shall pay its portion of the anticipated fees and costs at least 10 days in advance of the mediation. Each party shall pay its own attorney fees, costs, and individual expenses associated with conducting and attending the mediation. Mediation shall be held in Springville, Utah and shall last no more than two business days.
8.5 - 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 arbitration as provided in this Section 8.5. The parties to Arbitration consent and agree to the jurisdiction of Utah courts, and the laws of the state of Utah shall apply. The arbitration shall be filed with, and administered by, the American Arbitration Association ("AAA") or JAMS under their respective rules and procedures. The Commercial Arbitration Rules and Mediation Procedures of the AAA are available at the AAA's website at www.adr.org. The Streamlined Arbitration Rules & Procedures of JAMS are available at the JAMS website at www.jamsadr.com. Copies of the AAA's Commercial Arbitration Rules and Mediation Procedures or JAM's Streamlined Arbitration Rules & Procedures will be emailed to Customer or Ambassadors upon request to ZYNN's Compliance Department.
Notwithstanding the rules of the AAA or JAMS, the following shall apply to all arbitration actions:
All arbitration proceedings shall be held in the City of Draper, Utah, unless the laws of the state in which an Ambassador resides expressly require the application of its laws, in which case the arbitration shall be held in the capital of that state. 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 that the alternate dispute resolution services (the AAA or JAMS) 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.
The parties and the arbitrator shall maintain the confidentiality of the entire arbitration process and shall not disclose to any person not directly involved in the arbitration process:
Notwithstanding the foregoing, nothing in these Policies and Procedures shall prevent either party 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 its intellectual property rights and/or to enforce its rights under the non-solicitation and non-disclosure provisions of the Agreement.
8.6 - Governing Law, Jurisdiction and Venue
Jurisdiction and venue of any matter not subject to arbitration shall reside exclusively in Utah County, State of Utah. The Federal Arbitration Act shall govern all matters relating to arbitration. The law of the State of Utah shall govern all other matters relating to or arising from the Agreement. Notwithstanding the foregoing, and the arbitration provision, residents of the State of Louisiana shall be entitled to bring an action against ZYNN in their home forum and pursuant to Louisiana law.
8.7 – Liquidated Damages
In any case which arises from or relates to the termination of Customer or Ambassador's Agreement and independent business, the parties agree that damages will be very difficult to ascertain. Therefore, the parties stipulate that if a Customer or Ambassador's termination is proven and held to be wrongful under any theory of law, Customer or Ambassador's sole remedy shall be liquidated damages calculated as follows:
Any Customer or Ambassador, who has been an Ambassador for fewer than 12 full months prior to the termination, shall not be eligible for liquidated damages under this Section 8.7.
9.1 – Declined Payment
All declined payments by a Customer or Ambassador's bank debit card for insufficient funds will be re-submitted for payment. A $10.00 declined payment fee will be charged to the account of the Customer or Ambassador. After receiving a declined payment for insufficient funds from a Customer or Ambassador, all future orders must be paid by Credit Card. Any outstanding balance owed to ZYNN by an Ambassador for insufficient funds, all fees will be withheld from subsequent bonus and commission payments.
9.2 - Restrictions on Third Party Use of Credit Cards and Checking Account Access
An Ambassador shall not permit other Customer or Ambassadors to use his or her credit card, or permit debits to his or her checking/debit accounts, to enroll or to make purchases from the Company.
9.3 - Sales Taxes
In designing the ZYNN opportunity, one of our guiding philosophies has been to free Customer or Ambassadors from as many administrative, operational, and logistical tasks as possible. In doing so, Customer or Ambassadors are free to concentrate on those activities that directly affect their incomes, namely product sales. To these ends, ZYNN relieves Customer or Ambassadors of the burdens of collecting and remitting sales taxes, filing sales tax reports, and keeping records relative to sales taxes.
By virtue of its business operations, ZYNN is required to charge sales taxes on all purchases made by Customer or Ambassadors and Preferred Customers, and remit the taxes charged to the respective states. Accordingly, ZYNN will collect and remit sales taxes on behalf of Customer or Ambassadors, based on the suggested retail price of the products, according to applicable tax rates in the state or province to which the shipment is destined. If an Ambassador has submitted, and ZYNN has accepted, a current Sales Tax Exemption Certificate and Sales Tax Registration License, sales taxes will not be added to the invoice and the responsibility of collecting and remitting sales taxes to the appropriate authorities shall be on the Customer or Ambassador. Exemption from the payment of sales tax is applicable only to orders which are shipped to a state for which the proper tax exemption papers have been filed and accepted. Applicable sales taxes will be charged on orders that are drop-shipped to another state. Any sales tax exemption accepted by ZYNN is not retroactive.
10.1 - Effect of Cancellation
So long as an Ambassador remains active and complies with the terms of the Ambassador Agreement and these Policies and Procedures, ZYNN shall pay Rewards to such Ambassador in accordance with the Marketing and Rewards Plan. A Customer or Ambassador's bonuses and Rewards constitute the entire consideration for the Customer or Ambassador's efforts in generating sales and all activities related to generating sales (including building a Ambassador Organization). Following a Customer or Ambassador's non-renewal of his or her Ambassador Agreement, cancellation for inactivity, or voluntary or involuntary cancellation of his or her Ambassador Agreement (all of these methods are collectively referred to as ―cancellation), the former Ambassador shall have no right, title, claim or interest to the Ambassador Organization which he or she operated, or any commission or bonus from the sales generated by the organization. An Ambassador whose business is cancelled will lose all rights as a Customer or Ambassador. This includes the right to sell ZYNN products and services and the right to receive future Rewards, bonuses, or other income resulting from the sales and other activities of the Customer or Ambassador's former Ambassador Organization. In the event of cancellation, Customer or Ambassadors agree to waive all rights they may have, including but not limited to property rights, to their former Ambassador Organization and to any bonuses, Rewards or other remuneration derived from the sales and other activities of his or her former Ambassador Organization.
Following a Customer or Ambassador's cancellation of his or her Ambassador Agreement, the former Ambassador shall not hold himself or herself out as a ZYNN Ambassador and shall not have the right to sell ZYNN products or services. An Ambassador whose Ambassador Agreement is canceled shall receive Rewards and bonuses only for the last full pay period he or she was active prior to cancellation (less any amounts withheld during an investigation preceding an involuntary cancellation).
10.2 - Cancellation Due to Inactivity
If an Ambassador has not generated any sales for 6 consecutive months his or her Ambassador Agreement shall be cancelled for inactivity.
10.3 - Involuntary Cancellation
A Customer or Ambassador's violation of any of the terms of the Agreement, including any amendments that may be made by ZYNN in its sole discretion, may result in any of the sanctions, including the involuntary cancellation of his or her Ambassador Agreement. Cancellation shall be effective on the date on which written notice is mailed, faxed, emailed, or delivered to an express courier for delivery to the Customer or Ambassador's last known address, fax number, or email address, or to his/her attorney, or when the Ambassador receives actual notice of cancellation, whichever occurs first.
ZYNN reserves the right to terminate all Ambassador Agreements upon thirty (30) days written notice in the event that it elects to: (1) cease business operations; (2) dissolve as a corporate entity; or (3) terminate distribution of its products via direct selling.
10.4 - Voluntary Cancellation
Any participant in this marketing plan has a right to cancel at any time, regardless of reason. Cancellation must be submitted in writing or from the email address on file to the Company at its principal business address. The written notice must include the Customer or Ambassador's signature, printed name, address, and Ambassador I.D. Number. If a Customer or Ambassador is on the Autoship program, the Autoship Agreement shall continue in force and the former Ambassador shall be reclassified as a Customer, unless the Ambassador also specifically requests that his or her Autoship Agreement also be canceled.
10.5 - Non-renewal
An Ambassador may also voluntarily cancel his or her Ambassador Agreement by failing to renew the Agreement on its anniversary date. The Company may also elect not to renew a Customer or Ambassador's Agreement upon its anniversary date.
11.7.1 Customers are individuals or entities who purchase products through an ambassador replicated website.
(a) Customers must agree to ZYNN ‘Terms of Service' as part of the purchasing process.
(b) Customers are not required to make any purchases marketing material or pay enrollment fees.
(c) Customers are encouraged to become members, with replicated website to refer and market ZYNN.
(d) Customers purchase products at a higher cost than ZYNN Members.
11.7.2 Members are individuals or entities who change their password in the back office.
(a) Member must agree to these Policies and Procedures as part of the enrollment process.
(b) Members are not required to purchase kits, marketing material or pay enrollment fees.
(c) Members are encouraged to refer, share and market ZYNN products.
(d) Members are able to purchase products on autoship at a lower cost than ZYNN Customers.
11.7.3 Auto-ship Members are people or entities who enroll in autoship subscription of products.
(a) Auto-ship Member must agree to these Policies and Procedures as part of the enrollment process.
(b) Auto-ship Members are not required to purchase kits, marketing material or pay enrollment fees.
(c) Auto-ship Members must select to be on the auto-ship product purchase plan.
(d) Auto-ship Members are able to purchase products at a lower cost than ZYNN Members.
11.7.4 Ambassadors are members who have referred and earned rewards and elect ambassador status by agreeing to the ambassador agreement.
(a) Ambassadors must agree to these Policies and Procedures as part of the Ambassadors agreement.
(b) Ambassadors are not required to purchase kits, marketing material or pay enrollment fees.
(c) Ambassadors are required to be on the auto-ship product purchase plan.
(d) Ambassadors may receive product credits and cash rewards based upon (direct) referral purchases.
(e) Ambassadors receive product credits and cash rewards based upon (referred) referral purchases.
(f) Ambassadors receive product credits and cash rewards pursuant to ZYNN rewards plan.
(g) Ambassadors are able to purchase products at the same cost as the ZYNN Auto-ship Members.
11.7.5 Partner Ambassadors are people or entities who leverages a large charitable or social network as part of a joint venture strategy with ZYNN corporate and agrees to the partner ambassador agreement.
(a) Partner Ambassadors are required to agree Policies and Procedures in ambassador agreement.
(b) Partner Ambassadors are not required to purchase kits, marketing material or pay enrollment fees.
(c) Partner Ambassadors must select to be on the auto-ship product purchase plan.
(d) Partner Ambassadors may receive product credits and rewards based upon structural purchases.
(e) Partner Ambassadors receive product credits and cash rewards pursuant to ZYNN rewards plan.
(f) Partner Ambassadors products are sold at the same cost as the ZYNN Auto-ship Members.
11.7.6 Charitable(C) or Social(S) Ambassadors are people or entities who own and leverages a charitable or social network in a joint venture strategy with ZYNN corporate and agrees to the charitable or social ambassador agreement.
(a) (C) or (S) Ambassadors are required to agree Policies and Procedures in Ambassadors agreement.
(b) (C) or (S) Ambassadors are not required to purchase kits, marketing material or pay enrollment fees.
(c) (C) or (S) Ambassadors may opt out of the auto-ship product purchase plan.
(d) (C) or (S) Ambassadors only receive cash rewards based upon (direct) referral purchases.
(e) (C) or (S) Ambassadors only receive cash rewards based upon (referred) referral purchases.
(f) (C) or (S) Ambassadors receive product credits and cash rewards pursuant to ZYNN rewards plan.
(g) (C) or (S) Ambassadors products are sold (if purchased) at the cost as the ZYNN Auto-ship Members.
11.7.7 Active Ambassador - An Ambassador who remains active with referral purchases within any six (6) month period, as set forth in the ZYNN Marketing and Rewards Plan, to ensure that he or she is eligible to receive bonuses and Rewards.
11.7.8 Agreement - The contract between the Company and each Ambassador includes the Ambassador Agreement, the ZYNN Policies and Procedures, the ZYNN Marketing and Rewards Plan, and the Business Entity Registration Form (where appropriate), all in their current form and as amended by ZYNN in its sole discretion. These documents are collectively referred to as the ―Agreement.
11.7.9 Cancel - The termination of a Customer or Ambassador's business. Cancellation may be either voluntary, involuntary, through non-renewal or inactivity.
11.7.10 Customer - An individual who registers with ZYNN as a Customer on autoship pursuant to ZYNN's Customer Program.
11.7.11 Activity Report - A monthly report generated by ZYNN that provides critical data relating to the identities of Customer or Ambassadors, sales information, and enrollment activity of each Customer or Ambassador's Ambassador Organization. This report contains confidential and trade secret information, which is proprietary to ZYNN
11.7.12 Level - Each new Customer or Ambassador is enrolled on the first level directly under the referrer and is part of 1st level referral rewards.
11.7.13 Level Volume - The rewards value of ZYNN products sold by a Customer or Ambassador's Ambassador Organization. Level Volume includes all the sales Volume of all Customer or Ambassadors on either the 1st Level or the 2nd Level in relationship to the referrer.
11.7.14 Immediate Household - Heads of household and dependent family members residing in the same house.
11.7.15 Ambassador Organization - Represents all customers or ambassadors (direct referrals or referred referrals) that have purchased products or received rewards or bonuses.
11.7.16 Official ZYNN Material - Literature, including but not limited to web, audio or video tapes, and other materials developed, printed, published and distributed by ZYNN to Customer or Ambassadors.
11.7.17 Recruit - For purposes of ZYNN's Conflict of Interest Policy the term recruit means: (a) The actual or attempted solicitation, enrollment, encouragement, or effort to influence in any other way, either directly, indirectly, or through a third party, another ZYNN Ambassador or Customer to enroll or participate in another community marketing program; and (b) The conduct described in (a) above constitutes recruiting even if the Customer or Ambassador's actions are in response to an inquiry by another Ambassador or Customer. This subsection (b) shall not be applicable in California.
11.7.18 Resalable - Products and Sales aids shall be deemed "Resalable" if each of the following elements is satisfied: 1) they are unopened and unused; 2) packaging and labeling has not been altered or damaged; 3) they are in a condition such that it is a commercially reasonable practice within the trade to sell the merchandise at full price; 4) they are returned to ZYNN within one year from the date of purchase; and 5) the product contains current ZYNN labeling. Any merchandise that is clearly identified at the time of sale as nonreturnable, discontinued, or as a seasonal item, shall not be Resalable.
11.7.19 Customer - An individual who purchases ZYNN products from an Ambassador but who is not a participant in the ZYNN Marketing and Rewards Plan or the ZYNN
11.7.20 The Enroller - An Ambassador who enrolls a Customer or another Ambassador into the Company, and is listed as the enroller on the Ambassador Agreement. The act of enrolling others and training them to become Customer or Ambassadors is called―referring.