iNetGlobal

STATEMENT OF POLICIES

and

PROCEDURES

Effective June 1 2010

TABLE OF CONTENTS

1. Corporate Mission Statement

“Helping Business Through The Power Of The Internet”

iNetGlobal provides quality Internet Services for Small Business. iNetGlobal mission is to become the largest independent supplier of Internet Services to Small Business.

2. Introduction

1. Policies and Compensation Plan Incorporated into Consultant Agreement

These Policies and Procedures, in their present form and as amended at the sole discretion of iNetGlobal, Inc. (hereafter “iNetGlobal” or the “Company”), are incorporated into, and form an integral part of, the iNetGlobal Internet Marketing Consultant Agreement. Throughout these Policies, when the term “Agreement” is used, it collectively refers to the iNetGlobal Internet Marketing Consultant Application and Agreement, these Policies and Procedures, the iNetGlobal Compensation Plan. These documents are incorporated by reference into the iNetGlobal Internet Marketing Consultant Agreement (all in their current form and as amended by iNetGlobal). It is the responsibility of each Consultant 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 sponsoring or enrolling a new Internet Marketing Consultant (hereinafter “IMC” or “Consultant”), it is the responsibility of the sponsoring Consultant to ensure that the applicant is provided with, or has online access to, the most current version of these Policies and Procedures and the iNetGlobal Marketing and Compensation Plan prior to his or her execution of the Consultant Agreement.

2. Purpose of Policies

iNetGlobal is a direct sales company that markets its products and services through Independent Consultants. It is important to understand that your success and the success of your fellow Consultants depends on the integrity of the men and women who market our products and services. To clearly define the relationship that exists between Consultants and iNetGlobal, and to explicitly set a standard for acceptable business conduct, iNetGlobal has established the Agreement.

iNetGlobal Consultants are required to comply with all of the Terms and Conditions set forth in the Agreement, as well as all federal, state, and local laws governing their iNetGlobal 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 manual 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 iNetGlobal.

3. Changes to the Agreement

Because federal, state, and local laws, as well as the business environment, periodically change, iNetGlobal reserves the right to amend the Policies and Procedures, the Compensation Plan, and its prices in its sole and absolute discretion. By signing the Consultant Agreement, a Consultant agrees to abide by all amendments or modifications that iNetGlobal elects to make. Amendments shall be effective 30 days after publication of notice that the Agreement has been modified. Notification of amendments shall be published by the following method: Posting on the Company’s official web site at the Consultant’s Back Office. The continuation of a Consultant’s iNetGlobal business or a Consultant’s acceptance of bonuses or commissions constitutes acceptance of any and all amendments.

4. Delays

iNetGlobal shall not be responsible for delays or failures in performance of its obligations when performance is made commercially impracticable due to circumstances beyond its reasonable control. This includes, without limitation, strikes, labor difficulties, riot, war, fire, death, curtailment of a party’s source of supply, or government decrees or orders.

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.

3. Becoming a Consultant

1. Requirements to Become a Consultant

To become an iNetGlobal Consultant, each applicant must:

a)      Be at least 18 years of age;

b)      Reside in the United States, a U.S. Territory, or country that iNetGlobal has officially announced is open for business;

c)      Have a valid Social Security or Federal Tax ID number;

d)      Subscribe to the iNetGlobal Virtual Sales Kit (optional in North Dakota);

e)      Submit a properly completed Consultant Application and Agreement to iNetGlobal.

2. Consultant Benefits

Once a Consultant Application and Agreement has been accepted by iNetGlobal, the benefits of the Marketing and Compensation Plan and the Consultant Agreement are available to the new Consultant. These benefits include the right to:

a)      Sell iNetGlobal products and services;

b)      Participate in the iNetGlobal Marketing and Compensation Plan (receive bonuses and commissions, if eligible);

c)      Sponsor other individuals as Consultants into the iNetGlobal business and thereby, build a marketing organization and progress through the iNetGlobal Marketing and Compensation Plan;

d)      Receive periodic iNetGlobal literature and other iNetGlobal communications;

e)      Participate in iNetGlobal-sponsored support, service, training, motivational and recognition functions, upon payment of appropriate charges, if applicable; and

f)        Participate in promotional and incentive contests and programs sponsored by iNetGlobal for its Consultants.

3. Term and Renewal of Your iNetGlobal Business

The term of the Consultant Agreement is one year from the date of its acceptance by iNetGlobal (subject to reclassification for inactivity or cancellation pursuant to Section 10 below). Consultants must renew their Consultant Agreement each year by paying an annual renewal fee of $59.95 on or before the anniversary date of their Consultant Agreement. If the renewal fee is not paid within 30 days after the expiration of the current term of the Consultant Agreement, the Consultant Agreement will be canceled. Consultants may elect to utilize the Automatic Renewal Program (ARP). Under the ARP, the renewal fee will be charged to the Consultant’s credit card on file with the Company. Optionally the Consultant may elect to pay the renewal fee from available Commissions.

4. Operating an iNetGlobal Business

1. Adherence to the iNetGlobal Marketing and Compensation Plan

Consultants must adhere to the terms of the iNetGlobal Marketing and Compensation Plan as set forth in official iNetGlobal literature. Consultants shall not offer the iNetGlobal opportunity through, or in combination with, any other system, program, or method of marketing other than that specifically set forth in official iNetGlobal literature. Consultants shall not require or encourage other current or prospective customers or Consultants to participate in iNetGlobal in any manner that varies from the program as set forth in official iNetGlobal literature. Consultants shall not require or encourage other current or prospective customers or Consultants to execute any agreement or contract other than official iNetGlobal agreements and contracts in order to become an iNetGlobal Consultant. Similarly, Consultants shall not require or encourage other current or prospective customers or Consultants to make any purchase from, or payment to, any individual or other entity to participate in the iNetGlobal Marketing and Compensation Plan other than those purchases or payments identified as recommended or required in official iNetGlobal literature.

2. Advertising

   1. General

All Consultants shall safeguard and promote the good reputation of iNetGlobal and its products and services. The marketing and promotion of iNetGlobal, the iNetGlobal opportunity, the Marketing and Compensation Plan, and iNetGlobal 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 tremendous opportunity iNetGlobal offers, Consultants should use the sales tools and support materials produced by iNetGlobal. The rationale behind this requirement is simple. iNetGlobal has carefully designed its products, services, Marketing and Compensation Plan, and promotional materials to ensure that each aspect of iNetGlobal is fair, truthful, substantiated, and complies with the vast and complex legal requirements of federal and state laws. If iNetGlobal Consultants were allowed to develop their own sales tools and promotional materials notwithstanding their integrity and good intentions, the likelihood that they would unintentionally violate any number of statutes or regulations affecting an iNetGlobal business is almost certain. These violations, although they may be relatively few in number, would jeopardize the iNetGlobal opportunity for all Consultants. Accordingly, Consultants must submit all sales tools, promotional materials, advertisements, videos, and other literature which they produce to the Company for approval. Unless the Consultant receives specific written approval to use such tools, the request shall be deemed denied.

iNetGlobal will not permit Consultants sell sales aids to other iNetGlobal Consultants. Therefore, Consultants who receive authorization from iNetGlobal to produce their own sales aids may not sell such material to any other iNetGlobal Consultant. Consultants may make approved material available to other Consultants free of charge if they wish, but may not charge other iNetGlobal Consultants for the material.

iNetGlobal further reserves the right to rescind approval for any sales tools, promotional materials, advertisements, or other literature, and Consultants waive all claims for damages or remuneration arising from or relating to such rescission.

2. Consultant Web Sites

If a Consultant desires to utilize an Internet web page to promote his or her business, he or she may do so through the Company’s official web site, using official iNetGlobal templates. Alternatively, Consultants may develop their own web pages, however, any Consultant who does so: (a) must use the text of the Company’s official web site; and (b) may not supplement the content of his or her web site with text from any source other than the Company. Consultants who develop or publish their own web sites must register their site(s) with the Company and receive written approval from the Company prior to the site(s) public availability.

3. Blogs, Chat Rooms, Social Networks, Online Auctions, Videos, and other Online Forums

Consultants may use online blogs, chat rooms, social networks, online auctions sites, videos, or any other online forum to ethically market, sell, advertise, promote, or discuss iNetGlobal’s products or services or the iNetGlobal opportunity as long as it does not violate the terms of these Policies and Procedures.

4. Domain Names

Consultants may not use or attempt to register any of iNetGlobal’s trade names, trademarks, service names, service marks, product names, the Company’s name, or any derivative thereof, for any Internet domain name without the express permission of the company.

5. Trademarks and Copyrights

iNetGlobal will not allow the use of its trade names, trademarks, designs, or symbols by any person, including iNetGlobal Consultants, without its prior, written permission. Consultants may not produce for sale or distribution any recorded Company events and speeches without written permission from iNetGlobal nor may Consultants reproduce for sale or for personal use any recording of Company-produced audio or video tape presentations.

6. Media and Media Inquiries

Consultants must not attempt to respond to media inquiries regarding iNetGlobal, its products or services, or their independent iNetGlobal business. All inquiries by any type of media must be immediately referred to iNetGlobal’s Media Department. This policy is designed to assure that accurate and consistent information is provided to the public as well as a proper public image.

7. Unsolicited Email

iNetGlobal does not permit Consultants 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 a Consultant that promotes iNetGlobal, the iNetGlobal opportunity, or iNetGlobal products and services must comply with the following:

a)      There must be a functioning return email address to the sender.

b)      There must be a notice in the email that advises the recipient that he or she may reply to the email, via the functioning return email address, to request that future email solicitations or correspondence not be sent to him or her (a functioning “opt-out” notice).

c)      The email must include the Consultant’s physical mailing address.

d)      The email must clearly and conspicuously disclose that the message is an advertisement or solicitation.

e)      The use of deceptive subject lines and/or false header information is prohibited.

f)        All opt-out requests, whether received by email or regular mail, must be honored. If a Consultant receives an opt-out request from a recipient of an email, the Consultant must forward the opt-out request to the Company.

iNetGlobal may periodically send commercial emails on behalf of Consultants.  By entering into the Consultant Agreement, Consultant agrees that the Company may send such emails and that the Consultant’s physical and email addresses will be included in such emails as outlined above.  Consultants shall honor opt-out requests generated as a result of such emails sent by the Company.

8. Unsolicited Faxes

Except as provided in this section, Consultants may not use or transmit unsolicited faxes or use an automatic telephone dialing system relative to the operation of their iNetGlobal businesses.  The term automatic telephone dialing system means equipment and/or software which has the capacity to: (a) store or produce telephone numbers to be called; and (b) to dial such numbers.  The terms “unsolicited faxes” means the transmission via telephone facsimile or computer system of any material or information advertising or promoting iNetGlobal, its products, services, its compensation plan or any other aspect of the company which is transmitted to any person’s fax machine or e-fax, except that these terms do not include a fax or e-mail: (a) to any person with that person's prior express invitation or permission; or (b) to any person with whom the Consultant 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 a Consultant and a person, on the basis of: (a) an inquiry, application, purchase or transaction by the person regarding products or services offered by such Consultant; or (b) a personal or familial relationship, which relationship has not been previously terminated by either party. 

3. Bonus Buying Prohibited

Bonus buying is strictly and absolutely prohibited. “Bonus buying” includes: (a) the enrollment of individuals or entities without the knowledge of and/or execution of an Independent Consultant Application and Agreement by such individuals or entities; (b) the fraudulent enrollment of an individual or entity as a Consultant or customer; (c) the enrollment or attempted enrollment of non-existent individuals or entities as Consultants or customers (“phantoms”); (d) Purchasing iNetGlobal products or services on behalf of another Consultant or customer, or under another Consultant’s or customer’s I.D. number, to qualify for commissions 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 rank advancement, incentives, prizes, commissions or bonuses that is not driven by bona fide product or service purchases by end user consumers.

4. Business Entities

To prevent the circumvention of Section 4.24 (regarding transfers and assignments of iNetGlobal 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 Consultant Application and Agreement. If the original Consultant 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 4.24. If this process is not followed, the business shall be canceled upon the withdrawal of the original Consultant. All bonus and commission checks will be sent to the address of record of the original Consultant. Please note that the modifications permitted within the scope of this paragraph do not include a change of sponsorship. Changes of sponsorship are addressed in Section 4.5, below. There is a $25.00 fee for each change requested, which must be included with the written request and the completed Consultant Application and Agreement. iNetGlobal may, at its discretion, require notarized documents before implementing any changes to an iNetGlobal business. Please allow thirty (30) days after the receipt of the request by iNetGlobal for processing.

Each Consultant must immediately notify iNetGlobal of all changes to type of business entity they utilize in operating their businesses and the addition or removal of business partners, shareholders, members, and/or associates. Changes shall be processed only once per year. All changes must be submitted by November 30 to become effective on January 1 of the following year.

5. Change of Sponsor

To protect the integrity of all marketing organizations and safeguard the hard work of all Consultants, iNetGlobal strongly discourages changes in sponsorship. Maintaining the integrity of sponsorship is critical for the success of every Consultant and marketing organization. Accordingly, the transfer of an iNetGlobal business from one sponsor to another is rarely permitted.

Requests for change of sponsorship must be submitted in writing to the Support Services Department, and must include the reason for the transfer. Transfers will only be considered in cases in which the new Consultant is sponsored by someone other than the individual he or she was led to believe would be his or her Sponsor. In such cases,, a Consultant may request that he or she be transferred to another organization with his or her entire marketing organization intact. Requests for transfer under this policy will be evaluated on a case-by-case basis and must be made within 30 days from the date of enrollment. The Consultant requesting the change has the burden of proving that he or she was placed beneath the wrong sponsor. It is up to iNetGlobal’s discretion whether the requested change will be implemented.

1. Cancellation and Re-application

A Consultant may legitimately change organizations by voluntarily canceling his or her iNetGlobal business and remaining inactive (i.e., no sales of iNetGlobal products or services, no sponsoring, no attendance at any iNetGlobal functions, participation in any other form of Consultant activity, or operation of any other iNetGlobal business) for six (6) full calendar months. Following the six calendar month period of inactivity, the former Consultant may reapply under a new Sponsor, however, the former Consultant’s downline will remain in their original line of sponsorship. iNetGlobal will consider waiving the six calendar month waiting period under exceptional circumstances. Such requests for waiver must be submitted to iNetGlobal in writing.

2. Waiver of Claims

CONSULTANTS WAIVE ANY AND ALL CLAIMS AGAINST iNETGLOBAL THAT RELATE TO OR ARISE FROM iNETGLOBAL’S DECISION REGARDING THE DISPOSITION OF ANY DOWNLINE ORGANIZATION THAT DEVELOPS BELOW AN ORGANIZATION THAT HAS IMPROPERLY CHANGED LINES OF SPONSORSHIP.

6. Unauthorized Claims and Actions

   1. Indemnification

A Consultant is fully responsible for all of his or her verbal and written statements made regarding iNetGlobal products, services, and the Marketing and Compensation Plan which are not expressly contained in official iNetGlobal materials. Consultants agree to indemnify iNetGlobal and iNetGlobal’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 iNetGlobal as a result of the Consultant’s unauthorized representations or actions. This provision shall survive the termination of the Consultant Agreement.

2. Income Claims

When presenting or discussing the iNetGlobal opportunity or Marketing and Compensation Plan to a prospective Consultant, a Consultant may not make income projections, income claims, or disclose his or her iNetGlobal income (including the showing of checks, copies of checks, bank statements, or tax records).

3. iNetSurf (iPayment) Claims

iNetGlobal’s iNetSurf Program is designed to enable advertisers to save money on their advertising expenses. It is not intended or designed to be an income source. In fact, it is mathematically impossible to earn a profit by viewing and rating advertisements on the AdView Rotator. Therefore, Consultants must not make any express or implied representation that it is possible to earn a profit by viewing and rating websites on the AdView Rotator.

7. Commercial Outlets

Consultants may not sell iNetGlobal products or services from a commercial outlet, nor may Consultants display or sell iNetGlobal products or literature in any retail or service establishment.

8. Conflicts of Interest

   1. Nonsolicitation

iNetGlobal Consultants are free to participate in other multilevel or network marketing business ventures or marketing opportunities (collectively “network marketing”). However, during the term of this Agreement, Consultants may not directly or indirectly Recruit other iNetGlobal Consultants or customers for any other network marketing business.

Following the cancellation of a Consultant’s independent Consultant Agreement, and for a period of six calendar months thereafter, with the exception of a Consultant who is personally sponsored by the former Consultant, a former Consultant may not Recruit any iNetGlobal Consultant or customer for another network marketing business. Consultants and the Company recognize that because network marketing is conducted through networks of independent contractors dispersed across the entire United States and internationally, and business is commonly conducted via the internet and telephone, an effort to narrowly limit the geographic scope of this non-solicitation provision would render it wholly ineffective. Therefore, Consultants and iNetGlobal agree that this non-solicitation provision shall apply to all markets in which iNetGlobal conducts business.

The term “Recruit” means the actual or attempted sponsorship, solicitation, enrollment, encouragement, or effort to influence in any other way, either directly, indirectly, or through a third party, another iNetGlobal Consultant or customer to enroll or participate in another multilevel marketing, network marketing or direct sales opportunity. The conduct described in the preceding sentence constitutes recruiting even if the Consultant’s actions are in response to an inquiry made by another Consultant or by a customer.

2. Consultant Participation in Other Direct Selling Programs

If a Consultant is engaged in other non-iNetGlobal direct selling programs, it is the responsibility of the Consultant to ensure that his or her iNetGlobal business is operated entirely separate and apart from any other program. To this end, the following must be adhered to:

a)      Consultants shall not display iNetGlobal promotional material, sales aids, products or services with or in the same location as, any non-iNetGlobal promotional material or sales aids, products or services.

b)      Consultants shall not offer the iNetGlobal opportunity, products or services to prospective or existing customers or Consultants in conjunction with any non-iNetGlobal program, opportunity, product or service.

c)      Consultants may not offer any non-iNetGlobal opportunity, products, services or opportunity at any iNetGlobal-related meeting, seminar or convention, or within two hours and a five mile radius of the iNetGlobal event. If the iNetGlobal meeting is held telephonically or on the internet, any non-iNetGlobal meeting must be at least two hours before or after the iNetGlobal meeting, and on a different conference telephone number or internet web address from the iNetGlobal meeting.

3. - IMC Reports (MyReferrals Reports)

IMC Reports (or “MyReferrals”) are available for Consultant access and viewing from Consultant’s back offices. Consultant access to their IMC Reports are password protected. All IMC Reports and the information contained therein are confidential and constitute proprietary information and business trade secrets belonging to iNetGlobal. IMC Reports are provided to Consultants in strictest confidence and are made available to Consultants for the sole purpose of assisting Consultants in working with their respective Downline Organizations in the development of their iNetGlobal business. Consultants should use their IMC Reports to assist, motivate, and train their downline Consultants. The Consultant and iNetGlobal agree that, but for this agreement of confidentiality and nondisclosure, iNetGlobal would not provide IMC Reports to the Consultant. A Consultant shall not, on his or her own behalf, or on behalf of any other person, partnership, association, corporation or other entity:

a)      Directly or indirectly disclose any information contained in any IMC Report to any third party;

b)      Directly or indirectly disclose the password or other access code to his or her IMC Report;

c)      Use the information to compete with iNetGlobal or for any purpose other than promoting his or her iNetGlobal business; or

d)      Recruit or solicit any Consultant or customer of iNetGlobal listed on any report, or in any manner attempt to influence or induce any Consultant or customer of iNetGlobal, to alter their business relationship with iNetGlobal.

Upon demand by the Company, any current or former Consultant will return the original and all copies of IMC Reports to the Company. iNetGlobal further reserves the right to restrict a Consultant’s access to his/her IMC Report during any compliance investigation or suspension period.

9. Targeting Other Direct Sellers

iNetGlobal does not condone Consultants specifically or consciously targeting the sales force of another direct sales company to sell iNetGlobal products and services or to become Consultants for iNetGlobal. Nor does iNetGlobal condone Consultants 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 Consultants 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 a Consultant alleging that he or she engaged in inappropriate recruiting activity of its sales force or customers, iNetGlobal will not pay any of Consultant’s defense costs or legal fees, nor will iNetGlobal indemnify the Consultant for any judgment, award, or settlement.

10. Cross-Sponsoring

Actual or attempted cross sponsoring is strictly prohibited. Cross sponsoring is defined as the enrollment of an individual who or entity that already has a current customer or Consultant Agreement on file with iNetGlobal, or who has had such an agreement within the preceding six calendar months, within a different line of sponsorship. The use of a spouse’s or relative’s name, trade names, DBAs, assumed names, corporations, partnerships, trusts, federal ID numbers, fictitious ID numbers, any straw-man or other artifice to circumvent this policy is prohibited. Consultants shall not demean, discredit or defame other iNetGlobal Consultants in an attempt to entice another Consultant to become part of the first Consultant’s marketing organization. This policy shall not prohibit the transfer of an iNetGlobal business in accordance with Section 4.24.

If Cross Sponsoring is discovered, it must be brought to the Company’s attention immediately. iNetGlobal may take disciplinary action against the Consultant that changed organizations and/or those Consultants who encouraged or participated in the Cross Sponsoring. iNetGlobal may also move all or part of the offending Consultant’s downline to his or her original downline organization if the Company deems it equitable and feasible to do so. However, iNetGlobal is under no obligation to move the Cross Sponsored Consultant’s downline organization, and the ultimate disposition of the organization remains within the sole discretion of iNetGlobal. Consultants waive all claims and causes of action against iNetGlobal arising from or relating to the disposition of the Cross Sponsored Consultant’s downline organization.

11. Errors or Questions

If a Consultant has questions about or believes any errors have been made regarding commissions, bonuses, IMC Reports, or charges, the Consultant must notify iNetGlobal in writing within 60 days of the date of the purported error or incident in question. iNetGlobal will not be responsible for any errors, omissions or problems not reported to the Company within 60 days.

12. 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, Consultants shall not represent or imply that iNetGlobal or its Marketing and Compensation Plan have been "approved," "endorsed" or otherwise sanctioned by any government agency.

13. Holding Applications

Consultants must not manipulate enrollments of new applicants. All Consultant Applications and Agreements must be sent to iNetGlobal within 72 hours from the time they are signed by a Consultant or placed by a customer, respectively.

14. Restrictions on Third Party Use of Credit Cards and Checking Account Access

Consultants shall not permit other Consultants or customers to use his or her credit card, or permit debits to their checking accounts, to enroll or to make purchases from the Company.

15. Identification

All U.S. Consultant applicants are required to provide a properly completed IRS form W-9, and non-U.S. Consultant applicants are required to submit a properly completed IRS Form W-8BEN. Upon enrollment, the Company will provide a unique Consultant Identification Number to the Consultant by which he or she will be identified. This number will be used to place orders, and track commissions and bonuses.

16. Income Taxes

Each Consultant is responsible for paying local, state and federal taxes on any income generated as an Independent Consultant. If an iNetGlobal business is tax exempt, the Federal tax identification number must be provided to iNetGlobal. Every year, iNetGlobal will provide an IRS Form 1099 MISC (Non-employee Compensation) earnings statement to each U.S. resident who: 1) Had earnings of over $600 in the previous calendar year; or 2) Made purchases during the previous calendar year in excess of $5,000.

17. Independent Contractor Status

Consultants are independent contractors, and are not purchasers of a franchise or a business opportunity. The agreement between iNetGlobal and its Consultants does not create an employer/employee relationship, agency, partnership, or joint venture between the Company and the Consultant. Consultants shall not be treated as an employee for his or her services or for Federal or State tax purposes. All Consultants are responsible for paying local, state, and federal taxes due from all compensation earned as a Consultant of the Company. The Consultant has no authority (expressed or implied), to bind the Company to any obligation. Each Consultant shall establish his or her own goals, hours, and methods of sale, so long as he or she complies with the terms of the Consultant Agreement, these Policies and Procedures, and applicable laws.

The name of iNetGlobal and other names as may be adopted by iNetGlobal are proprietary trade names, trademarks and service marks of iNetGlobal. As such, these marks are of great value to iNetGlobal and are supplied to Consultants for their use only in an expressly authorized manner. Use of iNetGlobal name on any item not produced by the Company is prohibited except as follows:

Consultant's Name

Independent iNetGlobal Consultant

All Consultants may list themselves as an iNetGlobal “Independent Marketing Consultant” or as an Independent iNetGlobal “Internet Marketing Consultant” in any telephone directory under their own name. No Consultant may place telephone directory display ads using iNetGlobal's name or logo. Consultants may not answer the telephone by saying “iNetGlobal”, “iNetGlobal Incorporated”, or in any other manner that would lead the caller to believe that he or she has reached corporate offices of iNetGlobal.

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 home owner’s policy.

19. Adherence to Laws and Ordinances

Consultants 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 Consultants because of the nature of their business. However, Consultants must obey those laws that do apply to them. If a city or county official tells a Consultant that an ordinance applies to him or her, the Consultant shall be polite and cooperative, and immediately send a copy of the ordinance to the Compliance Department of iNetGlobal. In most cases there are exceptions to the ordinance that may apply to iNetGlobal Consultants.

20. One iNetGlobal Business Per Consultant and Per Household

A Consultant may operate or have an ownership interest, legal or equitable, as a sole proprietorship, partner, shareholder, trustee, or beneficiary, in only one iNetGlobal business. No individual may have, operate or receive compensation from more than one iNetGlobal business. Individuals of the same family unit may not enter into or have an interest in more than one iNetGlobal Business. A “family unit” is defined as spouses and dependent children living at or doing business at the same address.

In order to maintain the integrity of the iNetGlobal Marketing and Compensation Plan, husbands and wives or common-law couples (collectively “spouses”) who wish to become iNetGlobal Consultants must be jointly sponsored as one iNetGlobal business. Spouses, regardless of whether one or both are signatories to the Consultant Application and Agreement, may not own or operate any other iNetGlobal business, either individually or jointly, nor may they participate directly or indirectly (as a shareholder, partner, trustee, trust beneficiary, or any other legal or equitable ownership) in the ownership or management of another iNetGlobal business in any form.

An exception to the one business per Consultant rule will be considered on a case by case basis if two Consultants marry or in cases of a Consultant receiving an interest in another business through inheritance. Requests for exceptions to policy must be submitted in writing to the Support Department.

21. Actions of Household Members or Affiliated Individuals

If any member of a Consultant’s immediate household engages in any activity which, if performed by the Consultant, would violate any provision of the Agreement, such activity will be deemed a violation by the Consultant and iNetGlobal may take disciplinary action pursuant to the Statement of Policies against the Consultant. 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 iNetGlobal may take disciplinary action against the entity.

22. Requests for Records

Any request from a Consultant for copies of invoices, applications, downline activity reports, or other records will require a fee of $2.50 per page per copy. This fee covers the expense of mailing and time required to research files and make copies of the records.

23. Roll-up of Marketing Organization

When a vacancy occurs in a Marketing Organization due to the termination of an iNetGlobal business, each Consultant in the first level immediately below the terminated Consultant on the date of the cancellation will be moved to the first level (“front line”) of the terminated Consultant’s sponsor. For example, if A sponsors B, and B sponsors C1, C2, and C3, if B terminates her business, C1, C2, and C3 will “roll-up” to A and become part of A’s first level.

24. Sale, Transfer or Assignment of iNetGlobal Business

Although an iNetGlobal business is a privately owned, independently operated business, the sale, transfer or assignment of an iNetGlobal business is subject to certain limitations. If a Consultant wishes to sell his or her iNetGlobal business, the following criteria must be met:

a)      Protection of the existing line of sponsorship must always be maintained so that the iNetGlobal business continues to be operated in that line of sponsorship.

b)      The buyer or transferee must become a qualified iNetGlobal Consultant. If the buyer is an active iNetGlobal Consultant, he or she must first terminate his or her iNetGlobal business and wait six calendar months before acquiring any interest in a different iNetGlobal business.

c)      Before the sale, transfer or assignment can be finalized and approved by iNetGlobal, any debt obligations the selling Consultant has with iNetGlobal must be satisfied.

d)      The selling Consultant must be in good standing and not in violation of any of the terms of the Agreement in order to be eligible to sell, transfer or assign an iNetGlobal business.

Prior to selling an iNetGlobal business, the selling Consultant must notify iNetGlobal’s Support Department of his or her intent to sell the iNetGlobal business. No changes in line of sponsorship can result from the sale or transfer of an iNetGlobal business.

25. Separation of an iNetGlobal Business

iNetGlobal Consultants sometimes operate their iNetGlobal businesses as husband-wife partnerships, regular partnerships, corporations, or trusts. At such time as a marriage may end in divorce or a corporation, partnership or trust (the latter three 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 sponsorship. If the separating parties fail to provide for the best interests of other Consultants and the Company in a timely fashion, iNetGlobal will involuntarily terminate the Consultant Agreement.

During the divorce or entity dissolution process, the parties must adopt one of the following methods of operation:

a)      One of the parties may, with consent of the other(s), operate the iNetGlobal business pursuant to an assignment in writing whereby the relinquishing spouse, shareholders, partners or trustees authorize iNetGlobal to deal directly and solely with the other spouse or non-relinquishing shareholder, partner or trustee.

b)      The parties may continue to operate the iNetGlobal business jointly on a “business-as-usual” basis, whereupon all compensation paid by iNetGlobal will be paid according to the status quo as it existed prior to the divorce filing or dissolution proceedings. This is the default procedure if the parties do not agree on the format set forth above.

Under no circumstances will the Downline Organization of divorcing spouses or a dissolving business entity be divided. Similarly, under no circumstances will iNetGlobal split commission and bonus checks between divorcing spouses or members of dissolving entities. iNetGlobal will recognize only one Downline Organization and will issue only one commission check per iNetGlobal business per commission cycle. Commission checks shall always be issued to the same individual or entity. In the event that parties to a divorce or dissolution proceeding are unable to resolve a dispute over the disposition of commissions and ownership of the business in a timely fashion as determined by the Company, the Consultant Agreement shall be involuntarily canceled.

If a former spouse has completely relinquished all rights in the original iNetGlobal business pursuant to a divorce, he or she is thereafter free to enroll under any sponsor 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 Consultant. In either case however, the former spouse or business affiliate shall have no rights to any Consultants 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 Consultant.

26. Sponsoring

All active Consultants in good standing have the right to sponsor and enroll others into iNetGlobal. Each prospective Consultant has the ultimate right to choose his or her own Sponsor. If two Consultants claim to be the Sponsor of the same new Consultant, the Company shall regard the first application received by the Company as controlling.

27. Succession

Upon the death or incapacitation of a Consultant, 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, a Consultant should consult an attorney to assist him or her in the preparation of a will or other testamentary instrument. Whenever an iNetGlobal business is transferred by a will or other testamentary process, the beneficiary acquires the right to collect all bonuses and commissions of the deceased Consultant’s marketing organization provided the following qualifications are met. The successor(s) must:

a)      Execute a Consultant Agreement;

b)      Comply with terms and provisions of the Agreement; and

c)      Meet all of the qualifications for the deceased Consultant’s status.

Bonus and commission checks of an iNetGlobal business transferred pursuant to this section will be paid in a single check jointly to the devisees. The devisees must provide iNetGlobal with an “address of record” to which all bonus and commission checks will be sent. If the business is bequeathed to joint devisees, they must form a business entity and acquire a federal taxpayer Identification number. iNetGlobal will issue all bonus and commission checks and one 1099 to the business entity.

1. Transfer Upon Death of a Consultant

To effect a testamentary transfer of an iNetGlobal business, the successor must provide the following to iNetGlobal: (1) an original death certificate; (2) a notarized copy of the will or other instrument establishing the successor’s right to the iNetGlobal business; and (3) a completed and executed Consultant Agreement.

2. Transfer Upon Incapacitation of a Consultant

To effectuate a transfer of an iNetGlobal business because of incapacity, the successor must provide the following to iNetGlobal: (1) a notarized copy of an appointment as trustee; (2) a notarized copy of the trust document or other documentation establishing the trustee’s right to administer the iNetGlobal business; and (3) a completed Consultant Agreement executed by the trustee.

28. 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 iNetGlobal does not consider Consultants 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.

Therefore, Consultants must not engage in telemarketing in the operation of their iNetGlobal businesses.  The term “telemarketing” means the placing of one or more telephone calls to an individual or entity to induce the purchase of an iNetGlobal product or service, or to recruit them for the iNetGlobal opportunity.  “Cold calls" made to prospective customers or Consultants that promote either iNetGlobal’s products or services or the iNetGlobal opportunity constitute telemarketing and are prohibited.  However, a telephone call(s) placed to a prospective customer or Consultant (a "prospect") is permissible under the following situations:

a)      If the Consultant has an established business relationship with the prospect.  An “established business relationship” is a relationship between a Consultant and a prospect based on the prospect’s purchase, rental, or lease of goods or services from the Consultant, or a financial transaction between the prospect and the Consultant, within the eighteen (18) months immediately preceding the date of a telephone call to induce the prospect's purchase of a product or service.

b)      The prospect’s personal inquiry or application regarding a product or service offered by the Consultant, within the three (3) months immediately preceding the date of such a call.

c)      If the Consultant receives written and signed permission from the prospect authorizing the Consultant to call. The authorization must specify the telephone number(s) which the Consultant is authorized to call.

d)      You may call family members, personal friends, and acquaintances. An “acquaintance” is someone with whom you have at least a recent first-hand relationship within the preceding three months. Bear in mind, however, that if you engage in “card collecting” with everyone you meet and subsequently calling them, the FTC may consider this a form of telemarketing that is not subject to this exemption. Thus, if you engage in calling “acquaintances”, you must make such calls on an occasional basis only and not make this a routine practice.

e) Consultants shall not place or initiate any outbound telephone call to any person that delivers any pre-recorded message (a "robocall") regarding or relating to iNetGlobal’s products, services or opportunity.

In addition, Consultants shall not use automatic telephone dialing systems relative to the operation of their iNetGlobal businesses. The term “automatic telephone dialing system” means equipment or software or other system which has the capacity to: (a) store or produce telephone numbers to be called, using a random or sequential number generator; and (b) to dial such numbers.

5. Responsibilities of Consultants

1. Change of Address, Telephone, and E-Mail Addresses

To ensure timely delivery of products, support materials and commission checks, it is critically important that the iNetGlobal’s files are current. Street addresses are required for shipping. Consultants planning to move should update their personal information via the Back Office function of the Consultant’s replicated iNetGlobal website send their new address and telephone numbers to iNetGlobal’s Corporate Offices to the attention of the Support Department. To guarantee proper delivery, two weeks advance notice must be provided to iNetGlobal on all changes.

2. Continuing Development Obligations

1. Ongoing Training

Any Consultant who sponsors another Consultant into iNetGlobal should perform a bona fide assistance and training function to ensure that his or her downline is properly operating his or her iNetGlobal business. Upline Consultants are also responsible to motivate and train new Consultants in iNetGlobal product and service knowledge, effective sales techniques, the iNetGlobal Marketing and Compensation Plan, and compliance with Company Policies and Procedures. Communication with and the training of downline Consultants must not, however, violate Section 4.2 (regarding the development of Consultant-produced advertising and promotional materials).

Consultants should monitor the Consultants in their Downline Organizations to guard against downline Consultants making improper product or business claims, or engaging in any illegal or inappropriate conduct.

2. Increased Training Responsibilities

As Consultants progress through the various levels of leadership, they will become more experienced in sales techniques, product knowledge, and understanding of the iNetGlobal program. They will be called upon to share this knowledge with lesser experienced Consultants within their organization.

3. Ongoing Sales Responsibilities

Regardless of their level of achievement, Consultants have an ongoing obligation to continue to personally promote sales through the generation of new customers and through servicing their existing customers.

3. Nondisparagement

iNetGlobal wants to provide its independent Consultants with the best products and services, compensation plan, and service in the industry. Accordingly, we value your constructive criticisms and comments. All such comments should be submitted in writing to the Support Services Department. Remember, to best serve you, we must hear from you! While iNetGlobal welcomes constructive input, negative comments and remarks made in the field by Consultants about the Company, its products or services, or compensation plan serve no purpose other than to sour the enthusiasm of other iNetGlobal Consultants. For this reason, and to set the proper example for their downline, Consultants must not disparage, demean, or make negative remarks about iNetGlobal, other iNetGlobal Consultants, iNetGlobal’s products or services, the Marketing and Compensation plan, or iNetGlobal’s directors, officers, or employees.

4. Providing Documentation to Applicants

Consultants must provide the most current version of the Policies and Procedures and the Compensation Plan to individuals whom they are sponsoring to become Consultants before the applicant signs a Consultant Agreement. Additional copies of Policies and Procedures can be downloaded from iNetGlobal’s website.

5. Reporting Policy Violations

Consultants observing a Policy violation by another Consultant should submit a written report of the violation directly to the attention of the iNetGlobal Compliance Department. Details of the incidents such as dates, number of occurrences, persons involved, and any supporting documentation should be included in the report.

6. Sales Requirements

1. Product and Service Sales

The iNetGlobal Marketing and Compensation Plan is based on the sale of iNetGlobal products and services to end consumers. Consultants must fulfill personal and Downline Organization retail sales requirements (as well as meet other responsibilities set forth in the Agreement) to be eligible for bonuses, commissions and advancement to higher levels of achievement. The following sales requirements must be satisfied for Consultants to be eligible for commissions:

a)      Consultants must satisfy the Personal Sales Volume and Group Sales Volume requirements to fulfill the requirements associated with their rank as specified in the iNetGlobal Marketing and Compensation Plan. “Personal Sales Volume” includes purchases made by the Consultant (for personal use or resale) and purchases made by the Consultant’s personal customers. Group Sales Volume shall include the total Sales Volume of all Consultants in his or her marketing organization.

b)      At least 51% of a Consultant’s total monthly personal sales volume must be sold to personal retail customers.

c)      After a Consultant’s first 30 days in the business, the Consultant must develop or maintain at least two (2) active Retail Customers every month.

2. No Territory Restrictions

There are no exclusive territories granted to anyone.

7. Bonuses and Commissions

1. Bonus and Commission Qualifications

A Consultant must be active and in compliance with the Agreement to qualify for bonuses and commissions. So long as a Consultant complies with the terms of the Agreement, iNetGlobal shall pay commissions to such Consultant in accordance with the Marketing and Compensation plan. The minimum amount for which iNetGlobal will issue a check or load a payment card is $50.00. A Consultant must wait until his or her accrued bonuses and commissions equal or exceed $50.00 before requesting payment from iNetGlobal.

2. Adjustment to Bonuses and Commissions

Consultants receive bonuses and commissions based on the actual sales of products and services to end consumers. When an iNetGlobal service is cancelled and the customer or Consultant cancelling the service is entitled to a refund, the bonuses and commissions attributable to the cancelled service will be deducted, in the month in which the refund is given, and continuing every pay period thereafter until the commission is recovered, from the Consultants who received bonuses and commissions on the sale of the cancelled service.

3. Reports

All information provided by iNetGlobal in IMC Reports, including but not limited to personal and group sales volume (or any part thereof), and downline sponsoring activity is believed to be accurate and reliable. Nevertheless, due to various factors including but not limited to the inherent possibility of human and mechanical error; the accuracy, completeness, and timeliness of orders; denial of credit card and electronic check payments; returned products; credit card and electronic check charge-backs; the information is not guaranteed by iNetGlobal or any persons creating or transmitting the information.

ALL PERSONAL AND GROUP SALES 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, iNETGLOBAL AND/OR OTHER PERSONS CREATING OR TRANSMITTING THE INFORMATION WILL IN NO EVENT BE LIABLE TO ANY CONSULTANT OR 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 SALES VOLUME INFORMATION (INCLUDING BUT NOT LIMITED TO LOST PROFITS, BONUSES, OR COMMISSIONS, LOSS OF OPPORTUNITY, AND DAMAGES THAT MAY RESULT FROM INACCURACY, INCOMPLETENESS, INCONVENIENCE, DELAY, OR LOSS OF THE USE OF THE INFORMATION), EVEN IF iNETGLOBAL 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, iNETGLOBAL 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 iNetGlobal’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 iNetGlobal’s online and telephone reporting services and your reliance upon the information.

8. Product Returns and Inventory Repurchase

1. Order Cancellation

iNetGlobal offers a 100% 3 day money-back satisfaction guarantee (less any product used or consumed) to all Customers and Consultants. This guarantee applies to all products and services including “iNetGlobal advertising services.” For all iNetGlobal services, there is a 3-day right of rescission.

2. Return of Inventory and Sales Aids by Consultants Upon Cancellation

Upon cancellation of a Consultant’s Agreement, the Consultant may return iCredits that he or she personally purchased from iNetGlobal (purchases from other Consultants or third parties are not subject to refund) that remain in the Consultant’s inventory so long as the iCredits were purchased within one year prior to the date of the Consultant’s cancellation.  Upon receipt of the returned iCredits, the Consultant will be reimbursed 90% of the net cost of the original purchase price.  If a Consultant is also a Preferred Customer and holds iCredits in his/her account and has earned or received iPayments for viewing ads that are associated with the iCredits, and the iCredits are subsequently returned for a refund, the amount of iPayments paid to the Consultant will be deducted from the refund associated with the returned iCredits. If the purchases were made through a credit card, the refund will be credited back to the same account. 

1. Montana Residents

A Montana resident may cancel his or her Consultant Agreement within 15 days from the date of enrollment and receive a full refund of the Sales Kit subscription within such time period.

3. Procedures for All Refund Requests

All product and service cancellations by Consultants must be done through the Consultant’s Back Office pursuant to the instructions posted there. Customers may cancel a product or service by contacting the Consultant who sold the product or service to the Customer. The Consultant must honor the customer’s refund request. Within 10 days of issuing a refund to a customer for a cancelled product or service, the Consultant may contact the Company to receive a refund or replacement. Customers who purchase products or services directly from the Company may cancel by contacting the Company directly and requesting a refund.

Dispute Resolution and Disciplinary Proceedings

1. Disciplinary Sanctions

Violation of the Agreement, these Policies and Procedures, violation of any common law duty, including but not limited to any applicable duty of loyalty, any illegal, fraudulent, deceptive or unethical business conduct, or any act or omission by a Consultant that, in the sole discretion of the Company may damage its reputation or goodwill (such damaging act or omission need not be related to the Consultant’s iNetGlobal business), may result, at iNetGlobal's discretion, in one or more of the following corrective measures:

• Issuance of a written warning or admonition;

• Requiring the Consultant to take immediate corrective measures;

• Imposition of a fine, which may be withheld from bonus and commission checks;

• Loss of rights to one or more bonus and commission checks;

• iNetGlobal may withhold from a Consultant all or part of the Consultant’s bonuses and commissions during the period that iNetGlobal is investigating any conduct allegedly in violation of the Agreement. If a Consultant’s business is canceled for disciplinary reasons, the Consultant will not be entitled to recover any commissions withheld during the investigation period;

• Suspension of the individual’s Consultant Agreement for one or more pay periods;

• Transfer of a portion or all of the Consultant’s marketing organization or downline;

• Involuntary termination of the offender’s Consultant Agreement;

• Suspension and/or termination of the offending Consultant’s iNetGlobal website or website access;

• Any other measure expressly allowed within any provision of the Agreement or which iNetGlobal deems practicable to implement and appropriate to equitably resolve injuries caused partially or exclusively by the Consultant’s policy violation or contractual breach;

• In situations deemed appropriate by iNetGlobal, the Company may institute legal proceedings for monetary and/or equitable relief.

2. Mediation

Prior to instituting arbitration, the parties shall meet in good faith and attempt to resolve any dispute arising from or relating to the Agreement through non-binding mediation. One individual who is mutually acceptable to the parties shall be appointed as mediator. The mediators fees and costs, as well as the costs of holding and conducting the mediation, shall be divided equally between the parties. Each party shall pay its portion of the anticipated shared fees and costs at least 10 days in advance of the mediation. Each party shall pay its own attorneys fees, costs, and individual expenses associated with conducting and attending the mediation. Mediation shall be held in the City of Minneapolis, Minnesota and shall be held within 30 days from the date on which the Mediator is selected, and shall last no more than two business days.

3. Arbitration

If mediation is unsuccessful, any controversy or claim arising out of or relating to the Agreement, or the breach thereof, shall be settled by arbitration. The Parties waive all rights to trial by jury or to any court. The arbitration shall be filed with, and administered by, the American Arbitration Association (“AAA”) or JAMS Endispute (“JAMS”) under their respective rules and procedures. Notwithstanding the rules of the AAA or JAMS, the Federal Rules of Evidence shall apply in all cases. Likewise, in all cases the parties shall be entitled to all discovery rights permitted by the Federal Rules of Civil Procedure, and the Parties shall be entitled to bring motions under Rules 12 and/or 56 of the Federal Rules of Civil Procedure.

All arbitration proceedings shall be held in the City of Minneapolis, Minnesota. There shall be one arbitrator selected from the panel that the Alternate Dispute Resolution service provides. Each party to the arbitration shall be responsible for its own costs and expenses of arbitration, including legal and filing fees. The arbitration shall occur within 180 days from the date on which the arbitration is filed, and shall last no more than five business days. The parties shall be allotted equal time to present their respective cases. 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 arbitrate shall survive the cancellation or termination 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:

• The substance of, or basis for, the controversy, dispute, or claim;

• The content of any testimony or other evidence presented at an arbitration hearing or obtained through discovery in arbitration;

• The terms or amount of any arbitration award;

• The rulings of the arbitrator on the procedural and/or substantive issues involved in the case.

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 nonsolicitation provision of the Agreement.

4. Governing Law, Jurisdiction and Venue

Jurisdiction and venue of any matter not subject to arbitration shall reside exclusively in Hennepin County, State of Minnesota. The Federal Arbitration Act shall govern all matters relating to arbitration. The law of the State of Minnesota shall govern all other matters relating to or arising from the Agreement. Notwithstanding the foregoing, and the mediation and arbitration provisions in Sections 9.2 and 9.3, residents of the State of Louisiana shall be entitled to bring an action against iNetGlobal in their home forum and pursuant to Louisiana law.

10. Inactivity, Reclassification & Cancellation

1. Effect of Cancellation

So long as a Consultant remains active and complies with the terms of the Consultant Agreement and these Policies and Procedures, iNetGlobal shall pay commissions to such Consultant in accordance with the Marketing and Compensation Plan. A Consultant’s bonuses and commissions constitute the entire consideration for the Consultant's efforts in generating sales and all activities related to generating sales (including building a downline organization). Following a Consultant’s non-renewal of his or her Consultant Agreement, cancellation for inactivity, or voluntary or involuntary cancellation of his or her Consultant Agreement (all of these methods are collectively referred to as “cancellation”), the former Consultant shall have no right, title, claim or interest to the marketing organization which he or she operated, or any commission or bonus from the sales generated by the organization. A Consultant whose business is cancelled will lose all rights as a Consultant. This includes the right to sell iNetGlobal products and services and the right to receive future commissions, bonuses, or other income resulting from the sales and other activities of the Consultant’s former downline sales organization. In the event of cancellation, Consultants agree to waive all rights they may have, including but not limited to property rights, to their former downline organization and to any bonuses, commissions or other remuneration derived from the sales and other activities of his or her former downline organization.

Following a Consultant’s cancellation of his or her Consultant Agreement, the former Consultant shall not hold himself or herself out as an iNetGlobal Consultant and shall not have the right to sell iNetGlobal products or services. A Consultant whose Consultant Agreement is canceled shall receive commissions and bonuses only for the last full pay period he or she was active prior to cancellation (less any amounts withheld during an investigation preceding an involuntary cancellation).

2. Cancellation Due to Inactivity

If a Consultant has not earned a commission or bonus for three (3) consecutive months (and thus become “inactive”), his or her Consultant Agreement shall be canceled for inactivity. An iPayment shall not constitute a commission or bonus.

1. Reclassification Following Cancellation Due to Inactivity

If a Consultant does not earn a commission or bonus for three (3) consecutive months, his or her Consultant Agreement will be cancelled for inactivity. If he or she is a subscriber to any of the Company’s products or services, the subscription(s) shall remain in force and the Consultant shall be reclassified as a customer.

3. Involuntary Cancellation

A Consultant’s violation of any of the terms of the Agreement, including any amendments that may be made by iNetGlobal in its sole discretion, may result in any of the sanctions listed in Section 9.1, including the involuntary cancellation of his or her Consultant Agreement. Cancellation shall be effective on the date on which written notice is mailed, faxed, or delivered to an express courier, to the Consultant’s last known address (or fax number), or to his/her attorney, or when the Consultant receives actual notice of cancellation, whichever occurs first.

iNetGlobal reserves the right to terminate all Consultant 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.

4. Voluntary Cancellation

A participant in this network marketing plan has a right to cancel at any time, regardless of reason. Cancellation must be submitted through the Consultant’s iNetGlobal back office. If a Consultant is also a subscriber to any of the Company’s products or services, the subscription(s) shall remain in force and the Consultant shall be reclassified as a customer unless the Consultant also specifically requests that his or her subscription(s) also be canceled.

5. Non-renewal

A Consultant may also voluntarily cancel his or her Consultant Agreement by failing to renew the Agreement on its anniversary date. The Company may also elect not to renew a Consultant's Agreement upon its anniversary date.

11. Definitions

Active Customer - A customer who purchases iNetGlobal products and whose account has been paid for the current month.

Active Consultant - A Consultant who satisfies the minimum Personal Sales Volume requirements, as set forth in the iNetGlobal Marketing and Compensation Plan, to ensure that he or she is eligible to receive bonuses and commissions.

Active Rank - The term “active rank” refers to the current rank of a Consultant, as determined by the iNetGlobal Marketing and Compensation Plan, for any month. To be considered “active” relative to a particular rank, a Consultant must meet the criteria set forth in the iNetGlobal Marketing and Compensation Plan for his or her respective rank. (See the definition of “Rank” below.)

Agreement - The contract between the Company and each Consultant includes the Consultant Application and Agreement, the iNetGlobal Policies and Procedures, the iNetGlobal Marketing and Compensation Plan, and the Business Entity Form (where appropriate), all in their current form and as amended by iNetGlobal in its sole discretion. These documents are collectively referred to as the “Agreement.”

Cancel - The termination of a Consultant’s business. Cancellation may be either voluntary, involuntary, through non-renewal or inactivity.

Downline Leg - Each one of the individuals enrolled immediately underneath you and their respective marketing organizations represents one “leg” in your marketing organization.

Group Sales Volume - The commissionable value of iNetGlobal products or services sold by a Consultant’s Marketing Organization. (Sales Kits and sales aids have no Sales Volume.)

 IMC Report - An online real-time report generated by iNetGlobal that provides critical data relating to the identities of Consultants, sales information, and enrollment activity of each Consultant’s Marketing Organization. This report contains confidential and trade secret information which is proprietary to iNetGlobal.

Immediate Household - Heads of household and dependent family members residing in the same house.

Level The layers of downline Consultants in a particular Consultant’s Marketing Organization. This term refers to the relationship of a Consultant relative to a particular upline Consultant, determined by the number of Consultants between them who are related by sponsorship. For example, if A sponsors B, who sponsors C, who sponsors D, who sponsors E, then E is on A’s fourth level.

Marketing Organization - The Consultants sponsored below a particular Consultant.

Official iNetGlobal Material - Literature, audio or video tapes, CD’s, Online Brochures, and other materials developed, printed, published and distributed by iNetGlobal to Consultants.

Personal Production - Sales of iNetGlobal products or services to an end consumer for personal use.

Personal Sales Volume (PSV) - The commissionable value of services and products sold in a calendar month: (1) by the Company to a Consultant; and (2) by a Consultant’s Retail Customers that purchase iNetGlobal’s products from the Consultant’s iNetGlobal replicated website, or who are on the Autoship Program.

Rank - The “title” that a Consultant has achieved pursuant to the iNetGlobal Marketing and Compensation Plan.

Recruit - For purposes of iNetGlobal’s ConflictS of Interest Policy (Section 4.8), the term “Recruit” means the actual or attempted sponsorship, solicitation, enrollment, encouragement, or effort to influence in any other way, either directly, indirectly, or through a third party, another iNetGlobal Consultant or customer to enroll or participate in another multilevel marketing, network marketing or direct sales opportunity. 

Retail Customer - An individual or entity that purchases iNetGlobal products or services, but who is not a Consultant.

Retail Sales - Sales to a Retail Customer. If a sale is made to a customer who subsequently submits an iNetGlobal Consultant Agreement within 30 days from the date of the sale, or if an immediate household family member of the customer submits an iNetGlobal Consultant Agreement within 30 days of the sale, such sale shall not constitute a Retail Sale. A Consultant’s personal purchases from iNetGlobal do not constitute Retail Sales.

Roll-Up - The method by which a vacancy in a Marketing Organization left by a Consultant whose Consultant Agreement has been canceled is filled.

Sponsor - A Consultant who enrolls another Consultant into the Company, and is listed as the Sponsor on the Consultant Application and Agreement. The act of enrolling others and training them to become Consultants is called “sponsoring.”

Upline - This term refers to the Consultant or Consultants above a particular Consultant in a sponsorship line up to the Company. Conversely stated, it is the line of sponsors that links any particular Consultant to the Company.

Sales Kit - The iNetGlobal Sales Kit (Virtual Consultant Kit) consists of a replicated version of the iNetGlobal website, access to the Consultant Back Office, 250 Advertising Credits, Training Materials, and includes printable brochures and other business building tools. Each new Consultant is required to subscribe to the Sales Kit and renew the subscription in order to renew his or her Consultant Agreement. The Sales Kit is made available to Consultants at the Company’s cost.

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