Business Entities A corporation, limited liability company, partnership or trust (collectively referred to in this section as a 'Business Entity') may apply to be a BookWise Associate by submitting a properly completed Business Entity Registration Form within 30 days of enrollment. (If not received within the 30-day period, the Associate Agreement shall automatically terminate.) A BookWise business may change its status under the same sponsor from an individual to a partnership, corporation or trust, or from one type of entity to another. There is a $25.00 fee for each change requested, which must be included with the written request and the completed Associate Application and Agreement. The Business Entity Registration Form must be signed by all of the shareholders, partners or trustees. Members of the entity are jointly and severally liable for any indebtedness or other obligation to BookWise.
4.5 - Changes to a BookWise Business 4.5.1 - General Each Associate must immediately notify BookWise of all changes to the information contained on his or her Associate Application and Agreement. Associates may modify their existing Associate Agreement (i.e., change Social Security number to Federal I.D. number, or change the form of ownership from an individual proprietorship to a business entity owned by the Associate) by submitting a written request, a properly executed Associate Application and Agreement, and appropriate supporting documentation. 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.
4.5.2 - Addition of Co-Applicants When adding a co-applicant (either an individual or a business entity) to an existing BookWise business, the Company requires both a written request as well as a properly completed Associate Application and Agreement containing the applicant and co-applicant's Social Security Numbers and signatures. To prevent the circumvention of Section 4.23 (regarding transfers and assignments of BookWise business), the original applicant must remain as a party to the original Associate Application and Agreement. If the original Associate 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 4.23. If this process is not followed, the business shall be canceled upon the withdrawal of the original Associate. All bonus and commission checks will be sent to the address of record of the original Associate. 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 4.5.3, below. There is a $75.00 fee for each change requested, which must be included with the written request and the completed Associate Application and Agreement. BookWise may, at its discretion, require notarized documents before implementing any changes to a BookWise business. Please allow thirty (30) days after the receipt of the request by BookWise for processing.
4.5.3 - Change of Sponsor To protect the integrity of all marketing organizations and safeguard the hard work of all Associates, BookWise strongly discourages changes in sponsorship and, in general, does not grant changes in sponsorship. Maintaining the integrity of sponsorship is critical for the success of every Associate and marketing organization. Accordingly, the transfer of a BookWise business from one sponsor to another is rarely permitted and must be approved in writing by BookWise. Such approval may be granted or denied in BookWise's sole and absolute discretion. Requests for change of sponsorship must be submitted in writing to the Associate Services Department, and must include the reason for the transfer. Transfers will only be considered in the following two (2) circumstances: a) In cases involving fraudulent inducement or unethical sponsoring, an Associate may request that he or she be transferred to another organization with his or her entire marketing organization intact. All requests for transfer alleging fraudulent enrollment practices shall be evaluated on a case by case basis. b) The Associate seeking to transfer submits a properly completed and fully executed Sponsorship Transfer Form which includes the written approval of his or her immediate nine (9) upline Associates. Photocopied or facsimile signatures are not acceptable. All Associate signatures must be notarized. The Associate who requests the transfer must submit a fee of $50.00 for administrative charges and data processing. If the transferring Associate also wants to move any of the Associates in his or her marketing organization, each downline Associate must also obtain a properly completed Sponsorship Transfer Form and return it to BookWise with the $75.00 change fee (i.e., the transferring Associate and each Associate in his or her marketing organization multiplied by $75.00 is the cost to move a BookWise business.) Downline Associates will not be moved with the transferring Associate unless all of the requirements of this paragraph are met. Transferring Associates must allow thirty (30) days after the receipt of the Sponsorship Transfer Forms by BookWise for processing and verifying change requests.
4.5.4 - Cancellation and Re-application An Associate may legitimately change organizations by voluntarily canceling his or her BookWise business and remaining inactive (i.e., no purchases of books from BookWise for resale, no sales of books from BookWise, no sponsoring, no attendance at any BookWise functions, participation in any other form of Associate activity, or operation of any other BookWise business) for six (6) full calendar months. Following the six month period of inactivity, the former Associate may reapply under a new sponsor. BookWise will consider waiving the six month waiting period under exceptional circumstances. Such requests for waiver must be submitted to the BookWise Associate Services Department in writing.
4.6 - Unauthorized Claims and Actions 4.6.1 - Indemnification An Associate is fully responsible for all of his or her verbal and written statements made regarding BookWise, its products and services, and the Marketing and Compensation Plan which are not expressly contained in official BookWise materials. Associates agree to indemnify BookWise and BookWise'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 BookWise as a result of the Associate's unauthorized representations or actions. This provision shall survive the termination of the Associate Agreement.
4.6.2 - Income Claims In their enthusiasm to enroll prospective Associates, some Associates are occasionally tempted to make income claims or earnings representations to demonstrate the inherent power of network marketing. This is counterproductive because new Associates may become disappointed very quickly if their results are not as extensive or as rapid as the results others have achieved. At BookWise, we firmly believe that the BookWise 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 network marketing. While Associates may believe it beneficial to provide copies of checks, or to disclose the earnings of themselves or others, such approaches have legal consequences that can negatively impact BookWise as well as the Associate making the claim unless appropriate disclosures required by law are also made contemporaneously with the income claim or earnings representation. Because BookWise Associates do not have the data necessary to comply with the legal requirements for making income claims, an Associate, when presenting or discussing the BookWise opportunity or Marketing and Compensation Plan to a prospective Associate, may not make income projections, income claims, or disclose his or her BookWise income (including the showing of checks, copies of checks, bank statements, or tax records). Hypothetical income examples that are used to explain the operation of the Marketing and Compensation Plan, and which are based solely on mathematical projections, may be made to prospective Associates, so long as the Associate who uses such hypothetical examples makes clear to the prospective Associates that such earnings are hypothetical and the Associate provides the prospect with a copy of the most current income disclosure chart prepared by the Company. Until such time as BookWise publishes an official income disclosure statement, Associates may not use hypothetical income examples in the promotion of their BookWise businesses.
4.7 - Conflicts of Interest 4.7.1 - Nonsolicitation BookWise Associates 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, Associates may not recruit other BookWise Associates or BookWise Book Club Members for any other network marketing business. Following the cancellation of this Agreement, and for a period of six months thereafter, a former Associate may not recruit any BookWise Associate or Book Club Member for another network marketing business if: 1) that Associate or BookWise Book Club Member was in the former Associate's downline marketing organization; or 2) the former Associate met, developed a relationship with, or gained knowledge of the Associate or Book Club Member by virtue of their mutual participation in BookWise. The term 'recruit' means actual or attempted solicitation, enrollment, encouragement, or effort to influence in any other way, either directly or through a third party, another BookWise Associate or BookWise Book Club Member to enroll or participate in another multilevel marketing, network marketing or direct sales opportunity. This conduct constitutes recruiting even if the Associate's actions are in response to an inquiry made by another Associate or Book Club Member. Associates must not sell, or attempt to sell, any competing non-BookWise products or services to BookWise Book Club Members or Associates. Any product or services in the same generic category as a BookWise product or service is deemed to be competing (e.g., any book or book club membership program is a competing product.). Associates may not display BookWise products or services with any other products or services in a fashion that might in any way confuse or mislead a prospective customer or Associate into believing there is a relationship between the BookWise and non-BookWise products or services. Associates may not offer the BookWise opportunity, products or services to prospective or existing BookWise Book Club Members or Associates in conjunction with any non-BookWise program, opportunity, product or service. Associates may not offer any non-BookWise opportunity, products or services at any BookWise-related meeting, seminar or convention, or immediately following such event.
4.7.2 - Downline Activity (Genealogy) Reports Downline Activity Reports are available for Associate access and viewing at BookWise's official website. Associate access to their Downline Activity Reports is password protected. All Downline Activity Reports and the information contained therein are confidential and constitute proprietary information and business trade secrets belonging to BookWise. Downline Activity Reports are provided to Associates in strictest confidence and are made available to Associates for the sole purpose of assisting Associates in working with their respective Downline Organizations in the development of their BookWise business. Associates should use their Downline Activity Reports to assist, motivate, and train their downline Associates. The Associate and BookWise agree that, but for this agreement of confidentiality and nondisclosure, BookWise would not provide Downline Activity Reports to the Associate. An Associate 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 Downline Activity Report to any individual, partnership, association, corporation, or other entity; b) Directly or indirectly disclose, to any individual, partnership, association, corporation, or other entity, the password or other access code to his or her Downline Activity Report; c) Use the information contained in any Downline Activity Report to compete with BookWise or for any purpose other than promoting or supporting his or her BookWise business; or d) Recruit or solicit any Associate or BookWise Book Club Member listed on any Downline Activity Report, or in any manner attempt to influence or induce any Associate or Book Club Member to alter their business relationship with BookWise. Upon demand by the Company, any current or former Associate will return any hard-copy original and all copies of Downline Activity Reports to the Company.
4.8 - Targeting Other Direct Sellers BookWise does not condone Associates specifically or consciously targeting the sales force of another direct sales company to become BookWise Associates. Nor does BookWise condone Associates soliciting or enticing members of the sales force of another direct sales company to violate the terms of their contract with such other company. Should Associates 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 Associate alleging that he or she engaged in inappropriate recruiting activity of its sales force or customers, BookWise will not pay any of Associate's defense costs or legal fees, nor will BookWise indemnify the Associate for any judgment, award, or settlement.
4.9 - 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 Associate Agreement on file with BookWise, 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, or fictitious ID numbers to circumvent this policy is prohibited. Associates shall not demean, discredit or defame other BookWise Associates in an attempt to entice another Associate to become part of the first Associate's marketing organization. This policy shall not prohibit the transfer of a BookWise business in accordance with Section 4.23. If Cross Sponsoring is discovered, it must be brought to the Company's attention immediately. BookWise may take disciplinary action against the Associate that changed organizations and/or those Associates who encouraged or participated in the Cross Sponsoring. BookWise may also move all or part of the offending Associate's downline, including those enrolled after an Associate changed organizations in violation of this policy, to his or her original downline organization if the Company deems it equitable and feasible to do so. However, BookWise is under no obligation to move the Cross Sponsored Associate's downline organization, and the ultimate disposition of the organization remains within the sole discretion of BookWise. Associates waive all claims and causes of action against BookWise arising from or relating to the disposition of the Cross Sponsored Associate's downline organization.
4.10 - Errors or Questions If an Associate has questions about or believes any errors have been made regarding commissions, bonuses, Downline Activity Reports, or charges, the Associate must notify BookWise in writing within 60 days of the date of the purported error or incident in question. BookWise will not be responsible for any errors, omissions or problems not reported to the Company within 60 days.
4.11 - Excess Inventory Purchases Prohibited The BookWise Compensation Plan is not designed to reward excess inventory purchases. With the exception of building a personal library, Associates are discouraged from carrying an inventory of books or sales aids. Because of the varying literary tastes of most people, an Associate who purchases a quantity of books from BookWise may have a difficult time reselling the books. Instead, Associates are encouraged to enroll their friends and acquaintances as Book Club Members and to refer occasional purchasers to their replicated BookWise websites. Nonetheless, each Associate must make his or her own decision with regard to these matters. To ensure that Associates are not encumbered with excess inventory that they are unable to sell, such inventory may be returned to BookWise upon the Associate's cancellation pursuant to the terms of Section 8.2.
4.12 - 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, Associates shall not represent or imply that BookWise or its Marketing and Compensation Plan have been 'approved,' 'endorsed' or otherwise sanctioned by any government agency.
4.13 - Identification All Associates are required to provide their Social Security Number or a Federal Employer Identification Number to BookWise on the Associate Application and Agreement. Upon enrollment, the Company will provide a unique Associate Identification Number to the Associate by which he or she will be identified. This number will be used to place orders, and track commissions and bonuses.
4.14 - Income Taxes Each Associate is responsible for paying local, state, and federal taxes on any income generated as an Independent Associate. If a BookWise business is tax exempt, the Federal tax identification number must be provided to BookWise. Every year, BookWise 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.
4.15 - Independent Contractor Status Associates are independent contractors, and are not purchasers of a franchise or a business opportunity. The agreement between BookWise and its Associates does not create an employer/employee relationship, partnership, or joint venture between the Company and the Associate. Associates shall not be treated as an employee for his or her services or for Federal or State tax purposes. All Associates are responsible for paying local, state, and federal taxes due from all compensation earned as an Associate of the Company. The Associate has no authority (expressed or implied), to bind the Company to any obligation. Each Associate shall establish his or her own goals, hours, and methods of sale, so long as he or she complies with the terms of the Associate Agreement, these Policies and Procedures, and applicable laws.
4.16 - Insurance 4.16.1 - Business Pursuits Coverage 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.
4.16.2 - Commercial General Liability Coverage Associates who attain the Rank of Diamond or above shall during the term of their Associate Agreement maintain, at their sole cost, Commercial General Liability Insurance in an amount not less than One Million Dollars ($1,000,000.00) per occurrence and in the aggregate. This policy must include coverage for bodily injury, personal injury and property damage claims caused by or occurring in connection with the Associate's operation of his or her business, including the Associate's Premises. BookWise and BookWise's directors, officers, employees, and agents are to be added as additional insureds under the terms of the policy. BookWise may periodically increase the amounts and types of coverage required under the terms of this Agreement to reflect inflation, identification of new risks, changes in law or standards of liability, higher damage awards or other relevant changes in circumstances. The Associate's insurance policies must be primary and non-contributory to any similar policies maintained by BookWise. Each policy must give BookWise thirty (30) days prior written notice of cancellation, nonrenewal and/or material modification. A certificate of insurance documenting the required coverages shall be sent to the BookWise Associate Services Department annually.
4.17 - International Marketing Because of critical legal and tax considerations, BookWise must limit the resale of BookWise products and services, and the presentation of the BookWise business to prospective customers, Book Club Members, and Associates located within the United States and U.S. Territories. Moreover, allowing a few Associates to conduct business in markets not yet opened by BookWise would violate the concept of affording every Associate the equal opportunity to expand internationally. Accordingly, Associates are authorized to sell BookWise books and enroll BookWise Book Club Members and Associates only in the countries in which BookWise is authorized to conduct business, as announced in official Company literature. BookWise products or sales aids cannot be shipped into or sold in any foreign country. Associates may sell, give, transfer, or distribute BookWise products or sales aids only in their home country. In addition, no Associate may, in any unauthorized country: (a) conduct sales, enrollment or training meetings; (b) enroll or attempt to enroll potential customers or Associates; or (c) conduct any other activity for the purpose of selling BookWise products, establishing a marketing organization, or promoting the BookWise opportunity.
4.18 - Adherence to Laws and Ordinances 4.18.1 - Local Ordinances Many cities and counties have laws regulating certain home-based businesses. In most cases these ordinances are not applicable to Associates because of the nature of their business. However, Associates must obey those laws that do apply to them. If a city or county official tells an Associate that an ordinance applies to him or her, the Associate shall be polite and cooperative, and immediately send a copy of the ordinance to the Compliance Department of BookWise. In most cases there are exceptions to the ordinance that may apply to BookWise Associates.
4.18.2 - Compliance With Federal, State, Local Laws Associates shall comply with all federal, state, and local laws and regulations in the conduct of their businesses.
4.19 - Minors A person who is recognized as a minor in his/her state of residence may not be a BookWise Associate. Associates shall not enroll or recruit minors into the BookWise program.
4.20 - One BookWise Business Per Associate and Per Household An Associate may operate or have an ownership interest, legal or equitable, as a sole proprietorship, partner, shareholder, trustee, or beneficiary, in only one BookWise business. No individual may have, operate or receive compensation from more than one BookWise business. Individuals of the same family unit may not enter into or have an interest in more than one BookWise 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 BookWise Marketing and Compensation Plan, husbands and wives or common-law couples (collectively 'spouses') who wish to become BookWise Associates must be jointly sponsored as one BookWise business. Spouses, regardless of whether one or both are signatories to the Associate Application and Agreement, may not own or operate any other BookWise 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 BookWise business in any form. An exception to the one business per Associate rule will be considered on a case by case basis if two Associates marry or in cases of an Associate receiving an interest in another business through inheritance. Requests for exceptions to policy must be submitted in writing to the Compliance Department.
4.22.1 - Actions of Household Members or Affiliated Individuals If any member of an Associate's immediate household engages in any activity which, if performed by the Associate, would violate any provision of the Agreement, such activity will be deemed a violation by the Associate and BookWise may take disciplinary action pursuant to the Statement of Policies against the Associate. 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 BookWise may take disciplinary action against the entity.
4.21 - Requests for Records Any request from an Associate for copies of invoices, applications, downline activity reports, or other records will require a fee of $5.00 per page per copy with a $25.00 minimum. This fee covers the expense of mailing and time required to research files and make copies of the records.
4.22 - Roll-up of Marketing Organization When a vacancy occurs in a Marketing Organization due to the termination of a BookWise business, each Associate in the first level immediately below the terminated Associate on the date of the cancellation will be moved to the first level ('front line') of the terminated Associate'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.
4.23 - Sale, Transfer or Assignment of BookWise Business Although a BookWise business is a privately owned, independently operated business, the sale, transfer or assignment of a BookWise business is subject to certain limitations. If an Associate wishes to sell his or her BookWise business, the following criteria must be met: a) Protection of the existing line of sponsorship must always be maintained so that the BookWise business continues to be operated in that line of sponsorship. b) The buyer or transferee must be (or must become) a qualified BookWise Associate. If the buyer is an active BookWise Associate, he or she must first terminate (or sell) his or her BookWise business simultaneously with the purchase, transfer, assignment or acquisition of any interest in the new BookWise business. If the buyer is the selling Associate's Sponsor, he or she does not need to terminate or sell his or her BookWise business. The purchased business will merge with his or her BookWise business. c) Before the sale, transfer or assignment can be finalized and approved by BookWise, any debt obligations the selling Associate has with BookWise must be satisfied. d) The selling Associate 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 a BookWise business. Prior to selling a BookWise business, the selling Associate must notify BookWise's Associate Compliance Department of his or her intent to sell the BookWise business. Upon complete execution of the purchase and sale agreement, the parties must submit copies of the same to the Compliance Department for review. BookWise reserves the right to request additional documentation that may be necessary to analyze the transaction between the buyer and seller. The Compliance 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 BookWise's approval for the transaction, the transfer shall be voidable at BookWise's option. The purchaser of the existing BookWise business will assume the obligations and position of the selling Associate. An Associate who sells his or her BookWise business shall not be eligible to re-apply as a BookWise Associate for a period of at least six full calendar months after the date of the sale. No changes in line of sponsorship can result from the sale or transfer of a BookWise business.
4.24 - Separation of a BookWise Business BookWise Associates sometimes operate their BookWise 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 Associates and the Company, BookWise will involuntarily terminate the Associate Agreement and roll-up their entire organization pursuant to Section 4.22. During the pendency of a divorce or entity dissolution, 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 BookWise business pursuant to an assignment in writing whereby the relinquishing spouse, shareholders, partners or trustees authorize BookWise to deal directly and solely with the other spouse or non-relinquishing shareholder, partner or trustee. b) The parties may continue to operate the BookWise business jointly on a 'business-as-usual' basis, whereupon all compensation paid by BookWise will be paid in the joint names of the Associates or in the name of the entity to be divided as the parties may independently agree between themselves. c) If the parties cannot mutually agree on how the business shall be allocated during the pendency of a divorce or dissolution, the Company shall treat the business according to the status quo as existed prior to the filing of the divorce or dissolution. Under no circumstances will the Downline Organization of divorcing spouses or a dissolving business entity be divided. Similarly, under no circumstances will BookWise split commission and bonus checks between divorcing spouses or members of dissolving entities. BookWise will recognize only one Downline Organization and will issue only one commission check per BookWise 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, the Associate Agreement shall be involuntarily canceled. If a former spouse or a former entity affiliate has completely relinquished all rights in his or her original BookWise business, he or she is thereafter free to enroll under any Sponsor of his or her choosing. In such case, however, the former spouse or partner shall have no rights to any Associates in their former organization or to any former retail customer or BookWise Book Club Member. They must develop the new business in the same manner as would any other new Associate.
4.25 - Sponsoring All active Associates in good standing have the right to sponsor and enroll others into BookWise. Each prospective BookWise Book Club Member and Associate has the ultimate right to choose his or her own Sponsor. If two Associates claim to be the Sponsor of the same new Associate or Book Club Member, the Company shall regard the first application received by the Company as controlling.
4.26 - Stacking 'Stacking' is strictly prohibited. The term 'stacking' includes: (a) the failure to transmit to BookWise or the holding of an Independent Associate Application and Agreement in excess of two business days after its execution; (b) the placement or manipulation of Independent Associate Applications and Agreements for the purpose of maximizing compensation pursuant to BookWise's Marketing and Compensation Plan; or (c) providing financial assistance to new Associates for the purpose of maximizing compensation pursuant to BookWise's Marketing and Compensation Plan; (d) violating the one business per household rule; and/or (e) enrolling fictitious individuals or entities into the BookWise compensation plan.
4.27 - Succession Upon the death or incapacitation of an Associate, 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 Associate should consult an attorney to assist him or her in the preparation of a will or other testamentary instrument. Whenever a BookWise business is transferred by a will or other testamentary process, the beneficiary acquires the right to collect all bonuses and commissions of the deceased Associate's marketing organization provided the following qualifications are met. The successor(s) must: a) Execute an Associate Agreement; b) Comply with terms and provisions of the Agreement; and c) Meet all of the qualifications for the deceased Associate's status. Bonus and commission checks of a BookWise business transferred pursuant to this section will be paid in a single check jointly to the devisees. The devisees must provide BookWise 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. BookWise will issue all bonus and commission checks and one 1099 to the business entity.
4.27.1 - Transfer Upon Death of an Associate To effect a testamentary transfer of a BookWise business, the successor must provide the following to BookWise: (1) an original death certificate; (2) a notarized copy of the will or other instrument establishing the successor's right to the BookWise business; and (3) a completed and executed Associate Agreement.
4.27.2 - Transfer Upon Incapacitation of an Associate To effect a transfer of a BookWise business because of incapacity, the successor must provide the following to BookWise: (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 BookWise business; and (3) a completed Associate Agreement executed by the trustee.
4.28 - Telemarketing 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. While you may not consider yourself a 'telemarketer' in the traditional sense of the word, these 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, Associates must not engage in telemarketing relative to the operation of their BookWise businesses. The term 'telemarketing' means the placing of one or more telephone calls to an individual or entity to induce the purchase of a BookWise product or service, or to recruit them for the BookWise opportunity. 'Cold calls' made to prospective customers or Associates that promote either BookWise's products or services or the BookWise opportunity constitute telemarketing and are prohibited. However, a telephone call(s) placed to a prospective customer or Associate (a 'prospect') is permissible under the following situations:
If the Associate has an established business relationship with the prospect. An 'established business relationship' is a relationship between an Associate and a prospect based on the prospect's purchase, rental, or lease of goods or services from the Associate, or a financial transaction between the prospect and the Associate, within the eighteen (18) months immediately preceding the date of a telephone call to induce the prospect's purchase of a product or service.
The prospect's personal inquiry or application regarding a product or service offered by the Associate, within the three (3) months immediately preceding the date of such a call.
If the Associate receives written and signed permission from the prospect authorizing the Associate to call. The authorization must specify the telephone number(s) which the Associate is authorized to call.
You may call family members, personal friends, and acquaintances. An 'acquaintance' is someone with whom you have at least a recent first-hand relationship (i.e., you have recently personally met him or her). Bear in mind, however, that if you make a habit of '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.
In addition, Associates shall not use automatic telephone dialing systems relative to the operation of their BookWise businesses. The term 'automatic telephone dialing system' means equipment 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.