Operating an ITV Ventures Business

4.1 — Adherence to the ITV Marketing and Compensation Plan
Representatives must adhere to the terms of the ITV Marketing and Compensation Plan as set forth in the official ITV Compensation Plan Summary. Representatives shall not offer the ITV opportunity through, or in combination with, any other system, program, or method of marketing other than that specifically set forth in official ITV print and digital publications.
Representatives shall not require or encourage other current or prospective Representatives to participate in ITV in any manner that varies from the program as set forth in official ITV literature. Representatives shall not require or encourage other current or prospective Representatives to execute any agreement or contract other than official ITV agreements and contracts in order to become an ITV Representative. Similarly, Representatives shall not require or encourage other current or prospective Representatives to make any purchase from, or payment to, any individual or other entity to participate in the ITV Marketing and Compensation Plan other than those purchases or payments identified as recommended or required in official ITV literature.
4.2 — Advertising
4.2.1 — In General
All Representatives shall safeguard and promote the good reputation of ITV and its products. The marketing and promotion of ITV, the ITV opportunity, the Marketing and Compensation Plan, and ITV products 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 the tremendous opportunity ITV offers, Representatives must only use the sales aids and support materials produced by ITV. The rationale behind this requirement is simple. ITV has carefully designed its products, product labels, Marketing and Compensation Plan, and promotional materials to ensure that each aspect of ITV is fair, truthful, substantiated, and complies with the vast and complex legal requirements of federal, state and provincial laws. If ITV Representatives were allowed to develop their own sales aids and promotional materials (which includes Internet advertising), notwithstanding their integrity and good intentions, the likelihood that they would unintentionally violate any number of statutes or regulations affecting a ITV business is almost certain. These violations, although they may be relatively few in number, would jeopardize the ITV opportunity for all Representatives.
Accordingly, Representatives MUST submit all written sales aids, promotional materials, advertisements, marketing strategies and other literature (including proposed Internet advertising) to the Compliance and Advertising Department for approval prior to publication. {Download Advertising Request Form} Unless the Representative receives specific written approval to use the material, the request shall be deemed denied and a violation of this agreement. Under no circumstance are Representatives allowed to market, sell, or advertise the products and services of ITV on any auction based website. (I.E. ebay)
4.2.2 — Spamming and Unsolicited Faxes
Except as provided in this section, Representatives may not use or transmit unsolicited faxes, mass e—mail distribution, unsolicited e—mail, or “spamming” relative to the operation of their ITV businesses. The terms "unsolicited faxes" and “unsolicited e—mail” mean the transmission via telephone facsimile or electronic mail, respectively, of any material or information advertising or promoting ITV, its products, its compensation plan or any other aspect of the company which is transmitted to any person, except that these terms do not include a fax or e—mail: (a) to any person with that person's prior expressed invitation or permission; (b) to any person who has personally requested information online anywhere within the product and business field occupied by ITV at that time; or (c) to any person with whom the Representative 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 Representative and a person, on the basis of: (a) an inquiry, application, purchase or transaction by the person regarding products offered by such Representative; or (b) a personal or familial relationship, which relationship has not been previously terminated by either party.
4.2.3 — Representative Web Sites & Pages
If a Representative 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 ITV templates. Alternatively, Representatives may develop their own web pages; however, any Representative 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. Representatives who develop or publish their own web sites must register their site(s) with the company and receive written approval from the Compliance and Advertising Department prior to the public availability of the site(s). The failure to register constitutes a material breach of these policies and procedures.
4.2.4 — Domain Names and E—Mail Addresses
Representatives may not use or attempt to register any of ITV’S trade names, trademarks, service names, service marks, logos, product names, the Company’s name, or any derivative thereof, for any Internet domain name. Nor may Representatives incorporate or attempt to incorporate any of ITV’S trade names, trademarks, service names, service marks, logos, product names, the Company’s name, or any derivative thereof, into any electronic mail address. Such an attempt violates this Agreement and Federal Law.
4.2.5 — Trademarks and Copyrights
ITV will not allow the use of its trade names, trademarks, logos, designs, or symbols by any person, including an ITV Representative, without its prior, written permission. Representatives may not produce for sale or distribution any recorded company events and speeches without written permission from ITV, nor may Representatives reproduce for sale or for personal use any recording of company—produced audio or videotape presentations.
4.2.6 — Media and Media Inquiries
Representatives must not attempt to respond to media inquiries regarding ITV, its products, or their independent ITV businesses. All inquiries by any type of media must be immediately referred to ITV’S Compliance and Advertising Department. This policy is designed to assure that accurate and consistent information is provided to the public as well as a proper public image.
4.2.7 — Telemarketing Techniques
The use of any automated telephone solicitation equipment or "boiler—room" telemarketing operations in connection with the marketing or promotion of ITV, its products or the opportunity is strictly prohibited. Representatives will abide by the “Do Not Call” list, call time restrictions and any other local, state or Federal law including but not limited to the Telemarketing Sales Rule and the Telephone Consumer Protection Act. In connection with any inbound or outbound phone call if a consumer requests not to be called, Representatives agree to respect such a request and notify the Company of such a request.
4.3 — Bonus Buying
“Bonus buying” includes: (a) the enrollment of individuals or entities without the knowledge of and/or execution of an Independent Representative Application and Agreement by such individuals or entities; (b) the fraudulent enrollment of an individual or entity as a Representative; (c) the enrollment or attempted enrollment of non—existent individuals or entities as Representatives (“phantoms”); or (d) the use of a credit card by or on behalf of a Representative or customer when the Representative or customer is not the account holder of such credit card. Bonus buying constitutes a material breach of these Policies and Procedures, and is strictly and absolutely prohibited.
4.4 — Business Entities
A corporation, partnership or trust (collectively referred to in this section as a “Business Entity”) may apply to be an ITV Representative by submitting its Certificate of Incorporation, Partnership Agreement or trust documents (these documents are collectively referred to as the “Entity Documents”) to ITV, along with a properly completed Business Entity Registration form. An ITV 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 Representative 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 ITV. 4.5 — Changes to the ITV Busines
4.5.1 — In General
Each Representative must immediately notify ITV of all changes to the information contained on his or her Representative Application and Agreement. Representatives may modify their existing Representative 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 Representative) by submitting a written request, a properly executed Representative Application and Agreement, and appropriate supporting documentation.
4.5.2 — Addition of Co—Applicants
When adding a co—applicant (either an individual or a business entity) to an existing ITV business, the Company requires both a written request as well as a properly completed Representative Application and Agreement containing the applicant and co—applicant’s Social Security Numbers and signatures. To prevent the circumvention of Section 4.24 (regarding transfers and assignments of ITV businesses), the original applicant must remain as a party to the original Representative Application and Agreement. If the original Representative 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 cancelled upon the withdrawal of the original Representative. All bonus and commission checks will be sent to the address of record of the original Representative.
4.5.3 — Change of Sponsor
To protect the integrity of all marketing organizations and safeguard the hard work of all Representatives, ITV does not permit changes in sponsorship. Maintaining the integrity of sponsorship is critical for the success of every Representative and marketing organization.
4.5.4 – Voluntary Cancellation and Re—application
A Representative may legitimately change organizations by voluntarily canceling his or her ITV business in writing (Section 12.4) and remaining inactive (i.e., no attendance at any ITV functions, no purchases of ITV products for resale, no sales of ITV products, no sponsoring, no participation in any other form of Representative activity or operation of any other ITV business) for six (6) full calendar months. Following the six—month period of inactivity, the former Representative may re—apply under a sponsor of his/her choice. However, the re—entry is at the Representative level (Section 3.3) and the former Matrix organization remains in its current position.
Representatives may apply and re—enter ITV in the organization of their choosing ONLY by canceling their Representative Agreement in writing and remaining inactive for six months.
4.6 — Unauthorized Claims and Actions
4.6.1 – Indemnification
A Representative is fully responsible for all of his or her verbal and written statements made regarding ITV products and the Marketing and Compensation Plan which are not expressly contained in official ITV materials. Representatives agree to indemnify ITV and ITV’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 ITV as a result of the Representative’s unauthorized representations or actions. This provision shall survive the termination of the Representative Agreement.
In addition, Representatives agree to indemnify ITV and ITV’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 ITV as a result of association and relationship with third—party programs offered through ITV.
4.6.2 — Income Claims
In their enthusiasm to enroll prospective Representatives, some Representatives are occasionally tempted to make income claims or earnings representations to demonstrate the inherent power of ITV’S Marketing and Compensation Plan. This is counter—productive because new Representatives may become disappointed very quickly if their results are not as extensive or as rapid as the results others have achieved. At ITV, we firmly believe that the ITV 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 direct selling. While Representatives 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 ITV as well as the Representative making the claim unless appropriate disclosures required by law are also made contemporaneously with the income claim or earnings representation. Because ITV Representatives do not have the data necessary to comply with the legal requirements for making income claims, a Representative, when presenting or discussing the ITV opportunity or Marketing and Compensation Plan to a prospective Representative, may not make income projections, income claims, or disclose his or her ITV 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 used to prospective Representatives, so long as the Representative who uses such hypothetical examples makes clear to the prospective Representative(s) that such earnings are hypothetical.
4.7 — Commercial Outlets and Commercial Sales
ITV strongly encourages the retailing and selling of its products through the personal contact of person to person sales. In an effort to reinforce this method of marketing and to help provide a standard of fairness for its Representative base, Representatives may not display or sell ITV products or literature in any retail or service establishment without prior written approval by ITV.
4.7.1 — Trade Shows, Expositions and Other Sales Forums
Representatives may display and/or sell ITV products at trade shows and professional expositions. Before submitting a deposit to the event promoter, Representatives must contact the Representative Services Department in writing for conditional approval, as ITV’S policy is to authorize only one ITV business per event. Final approval will be granted to the first Representative who submits an official advertisement of the event, a copy of the contract signed by both the Representative and the event official, and a receipt indicating that a deposit for the booth has been paid. Approval is given only for the event specified. Any requests to participate in future events must again be submitted to the Compliance and Advertising Department. ITV further reserves the right to refuse authorization to participate at any function which it does not deem a suitable forum for the promotion of its products or the ITV opportunity. Approval will not be given for swap meets, garage sales, flea markets or farmer’s markets, as these events are not conducive to the professional image ITV wishes to portray.
4.8 — Conflicts of Interest
4.8.1 – Nonsolicitation
ITV Representatives may participate in other party—plan, direct selling or Representative marketing or multilevel marketing ventures (collectively “Representative marketing”), and Representatives may engage in selling activities related to non—ITV products and services if they desire to do so. However, if a Representative elects to participate in another Representative marketing opportunity, in order to avoid conflicts of interest and loyalties, Representatives are prohibited from Unauthorized Recruiting, which includes the following:
During the term of this agreement and for 6 months thereafter, any actual or attempted recruitment or enrollment of ITV Representatives for other Representative marketing business ventures, either directly or through a third party. This includes, but is not limited to, presenting or assisting in the presentation of other Representative marketing business ventures to any ITV Representative, or implicitly or explicitly encouraging any ITV Representative to join other business ventures. Because there is an extreme likelihood that conflicts will arise if a Representative operates two Representative marketing programs, it is the Representative’s responsibility to first determine whether a prospect is a ITV Representative before recruiting or enrolling the prospect for another Representative marketing business venture.
Producing or offering any literature, tapes or promotional material of any nature for another Representative marketing business which is used by the Representative or any third person to recruit ITV Representatives for that business venture;
Selling, offering to sell, or promoting any competing non—ITV products or services to ITV Representatives. Any product or service in the same generic category as a ITV product is deemed to be competing (e.g., any greeting card is in the same generic category as ITV’S promotional products, and is therefore a competing product, regardless of differences in cost, style or quality, any nutritional product that has one or more of the ingredients of an ITV nutritional product).
Offering ITV products, or promoting the ITV Marketing and Compensation Plan, in conjunction with any non—ITV products, services, business plan, opportunity, or incentive; or
Offering any non—ITV products, services, business plan, opportunity, or incentive at any ITV meeting, seminar, launch, convention, or other ITV function, or immediately following such event; or
Offering ITV products, services, business plan, opportunity, or incentive at any non—ITV Representative marketing business meeting, seminar, launch, convention, or other non—ITV Representative marketing function, or immediately following such event.
4.8.2 — Matrix Activity Reports
All Matrix Activity Reports and the information contained therein are confidential and constitute proprietary information and business trade secrets belonging to ITV. Matrix Activity Reports are provided to Representatives in strictest confidence and are made available to Representatives for the sole purpose of assisting Representatives in working with their respective Matrix Organizations in the development of their ITV business. Representatives should use their Matrix Activity Reports to assist, motivate, and train their Matrix Representatives. The Representative and ITV agree that, but for this agreement of confidentiality and nondisclosure, ITV would not provide Matrix Activity Reports to the Representative. A Representative shall not, on his or her own behalf, or on behalf of any other person, partnership, association, corporation or other entity:
Directly or indirectly disclose any information contained in any Matrix Activity Report to any third party;
Directly or indirectly disclose his or her password or other user access code to his or her Matrix Activity Report;
Use the information to compete with ITV or for any purpose other than promoting his or her ITV business;
Recruit or solicit any Representative of ITV listed on any report, or in any manner attempt to influence or induce any Representative of ITV, to alter their business relationship with ITV; or
Use or disclose to any person, partnership, association, corporation, or other entity any information contained in any Matrix Activity Report.
Upon demand by the Company, any current or former Representative will return the original and all copies of Matrix Activity Reports to the Company.
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 Representative Agreement on file with ITV, 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. Representatives shall not demean, discredit or defame other ITV Representatives in an attempt to entice another Representative to become part of the first Representative’s marketing organization. This policy shall not prohibit the transfer of an ITV business in accordance with Section 4.24.
4.10 — Errors or Questions
If a Representative has questions about or believes any errors have been made regarding commissions, bonuses, Matrix Activity Reports, or charges, the Representative must notify ITV in writing within 60 days of the date of the purported error or incident in question. ITV will not be responsible for any errors, omissions or problems not reported to it within 60 days.
4.11 — Excess Inventory Purchases Prohibited
Representatives are not required to carry inventory of products or sales aids. Representatives who do so may find making retail sales and building a marketing organization somewhat easier because of the decreased response time in fulfilling customer orders or in meeting a new Representative’s needs. Each Representative must make his or her own decision with regard to these matters. To ensure that Representatives are not encumbered with excess inventory that they are unable to sell, such inventory may be returned to ITV upon the Representative’s cancellation pursuant to the terms of Section 8.3.
ITV strictly prohibits the purchase of products in unreasonable amounts primarily for the purpose of qualifying for commissions, bonuses or advancement in the Marketing and Compensation Plan. Representatives may not purchase more inventory than they can reasonably resell in a month nor may they encourage others to do so.
4.12 — Governmental Approval or Endorsement
Neither federal nor state regulatory agencies or officials approve or endorse any MLM—plan companies or programs. Therefore, Representatives shall not represent or imply that ITV or its Marketing and Compensation Plan have been "approved," "endorsed" or otherwise sanctioned by any government agency.
4.13 — Holding Applications or Orders
Representatives must not manipulate enrollments of new applicants and purchases of products. All Representative Applications and Agreements must be sent to ITV within 72 hours from the time they are signed by a new Representative. Likewise, all completed order forms and payments must be sent to ITV within 72 hours from the time they are received by the Representative.
4.14 — Identification
All Representatives are required to provide their Social Security Number, Social Insurance Number, or a Federal Employer Identification Number to ITV on the Representative Application and Agreement. Upon enrollment, the Company will provide a unique Representative Identification Number to the Representative by which he or she will be identified. This number will be used to place orders, and track commissions and bonuses.
4.15 — Income Taxes
Every year, ITV will provide an IRS Form 1099 MISC (Non—employee Compensation) earnings statement to each U.S. resident who falls into one of the following categories:
Had earnings of over $600 in the previous calendar year; or
Made purchases during the previous calendar year in excess of $5,000.
Each Representative is responsible for paying local, state/provincial, and federal taxes on any income generated as an Independent Representative. If a ITV business is tax exempt, the Federal tax identification number must be provided to ITV.
4.16 — Independent Contractor Status
Representatives are independent contractors acting without the control of or direction by ITV, and are not purchasers of a franchise or a business opportunity. The agreement between ITV and its Representatives does not create an employer/employee relationship, agency, partnership, or joint venture between the Company and the Representative. Representatives shall not be treated as an employee for his or her services or for Federal or State tax purposes. All Representatives are responsible for paying local, state, and federal taxes due from all compensation earned as a Representative of the Company. The Representative has no authority (expressed or implied), to bind the company to any obligation. Each Representative shall establish his or her own goals, hours, and methods of sale, so long as he or she complies with the terms of the Representative Agreement, these Policies and Procedures, and applicable laws.
The name of ITV and other names as may be adopted by ITV are proprietary trade names, trademarks and service marks of ITV. As such, these marks are of great value to ITV and are supplied to Representatives for their use only in an expressly authorized manner. Use of the ITV name on any item not produced by the company is prohibited except as follows:
Representative’s NameIndependent ITV Representative
All Representatives may list themselves as an “Independent ITV Representative” in the white or yellow pages of the telephone directory under their own name. No Representative may place telephone directory display ads using ITV’S name or logo. Representatives may not answer the telephone by saying “ITV”, “ITV Incorporated”, or in any other manner that would lead the caller to believe that he or she has reached corporate offices of ITV.
4.17 — Insurance
You may wish to arrange insurance coverage for your business. Neither your homeowner’s insurance policy nor your automobile insurance policy covers business—related injuries, or the theft of or damage to inventory or business equipment. Contact your insurance agent to make certain that your property is protected. This can often be accomplished with a simple “Business Pursuit” endorsement attached to your present homeowner’s and automobile policies.
4.18 — International Marketing
Because of critical legal and tax considerations, including: compliance with foreign laws regarding the approval, registration or licensure of products; compliance with customs, tax, and immigration laws; compliance with direct selling laws; income representations; and literature content and language requirements, ITV must limit the resale of ITV products and the presentation of the ITV business to prospective customers and Representatives located within those countries in which ITV is authorized to operate (as announced in official company materials). Moreover, allowing a few Representatives to conduct business in markets not yet opened by ITV would violate the concept of affording every Representative the equal opportunity to expand internationally.
Accordingly, Representatives are authorized to sell ITV products and enroll Representatives only in the countries in which ITV is authorized to conduct business, as announced in official company literature. ITV products or sales aids cannot be shipped into or sold in any foreign country. Representatives may sell, give, transfer, or distribute ITV products or sales aids only in their home country. In addition, no Representative may, in any unauthorized country: (a) conduct sales, enrollment or training meetings; (b) enroll or attempt to enroll potential Representatives; or (c) conduct any other activity for the purpose of selling ITV products, establishing a marketing organization, or promoting the ITV opportunity.
4.19 — Adherence to Laws and Ordinances
4.19.1 — Local Ordinances
Many cities and counties have laws regulating certain home—based businesses. In most cases these ordinances are not applicable to Representatives because of the nature of their business. However, Representatives must obey those laws that do apply to them. If a city or county official tells a Representative that an ordinance applies to him or her, the Representative shall be polite and cooperative, and immediately send a copy of the ordinance to the Compliance Department of ITV. In most cases there are exceptions to the ordinance that may apply to ITV Representatives.
4.19.2 — Compliance with Federal, State, and Local Laws
Representatives shall comply with all federal, state, and local laws and regulations in the conduct of their businesses.
4.20 — Minors
A person who is recognized as a minor in his/her state of residence may not be an ITV Representative. Representatives shall not enroll or recruit minors into the ITV program.
4.21 — One ITV Business Per Representative and Per Household
A Representative may operate or have an ownership interest, legal or equitable, as a sole proprietorship, partner, shareholder, trustee, or beneficiary, in only one ITV business. No individual may have, operate or receive compensation from more than one ITV business. Individuals of the same family unit may not enter into or have an interest in more than one ITV 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 ITV Marketing and Compensation Plan, husbands and wives or common—law couples (collectively “spouses”) who wish to become ITV Representatives must be jointly sponsored as one ITV business. Spouses, regardless of whether one or both are signatories to the Representative Application and Agreement, may not own or operate any other ITV 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 ITV business in any form.
An exception to the one business per Representative rule will be considered on a case by case basis if two Representatives marry or in cases of a Representative receiving an interest in another business through inheritance. Requests for exceptions to policy must be submitted in writing to the Compliance and Advertising Department.
4.21.1 — Actions of Household Members or Representative Individuals
If any member of a Representative’s immediate household engages in any activity which, if performed by the Representative, would violate any provision of the Agreement, such activity will be deemed a violation by the Representative and ITV may take disciplinary action pursuant to the Statement of Policies against the Representative. Similarly, if any individual associated in any way with a corporation, partnership, trust or other entity (collectively “Representative individual”) violates the Agreement, such action(s) will be deemed a violation by the entity, and ITV may take disciplinary action against the entity.
4.22 — Requests for Records
Any request from a Representative for copies of invoices, applications, Matrix activity reports, or other records will require a fee of $3.00 for the first page of the copy and $.25 for each additional page. This fee covers the expense of mailing and time required to research files and make copies of the records.
4.23 — Roll—up of Marketing Organization
When a vacancy occurs in a Marketing Organization due to the termination of an ITV business, it is determined which IBO on the first level below the terminated IBO has the highest lifetime rank. Lifetime rank is the highest rank ever achieved by an IBO. If there is a tie among IBOs, it is determined who has the highest number of personally sponsored active IBOs for the most recently completed calendar month. If there is still a tie, then it is determined which IBO has the highest GV for the most recently completed calendar month. If a tie still remains, then it is determined which IBO has the lowest join date. If a tie still remains, then the IBO with the lowest IBO# is chosen.
4.24 — Sale, Transfer or Assignment of ITV Business
4.24.1 — Company Approval Required
Although a ITV business is a privately owned, independently operated business, the sale, transfer or assignment of a ITV business is subject to certain limitations. If a Representative wishes to sell his or her ITV business, the following criteria must be met:
Protection of the existing line of sponsorship must always be maintained so that the ITV business continues to be operated in that line of sponsorship.
The buyer or transferee must be (or must become) a qualified ITV Representative. If the buyer is an active ITV Representative, he or she must first terminate his or her ITV business simultaneously with the purchase, transfer, assignment or acquisition of any interest in the new ITV business.
Before the sale, transfer or assignment can be finalized and approved by ITV, any debt obligations the selling Representative has with ITV must be satisfied.
The selling Representative 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 ITV business.
Prior to selling a ITV business, the selling Representative must notify the ITV Compliance and Advertising Department in writing of his or her intent to sell the ITV business. This statement must have a notarized signature.
The selling Representative must also purchase the ITV Sale/Transfer Packet. It will list the current fee structure and procedure for completing the sale, transfer or assignment of the individual ITV business. No changes in sponsorship of Matrix Representatives can result from the sale, transfer or assignment of an ITV business.
4.24.2 — Right of First Refusal
If a Representative desires to sell his or her ITV business, the Representative’s Sponsor must be given the first right and option, in writing and sent via certified mail/return receipt requested, to purchase the business. If the Sponsor desires to purchase the business, the purchased business will merge with the Sponsor’s marketing organization to create a single marketing organization. If the Sponsor fails to notify the selling Representative of his or her intention to purchase the business within 10 business days after his or her receipt of selling Representative’s notice of intent to sell, the selling Representative may proceed with the sale to a third party willing to purchase the existing business upon the same terms provided in the offer to the seller’s Sponsor. If the seller sells, transfers or assigns or attempts to sell, transfer or assign his or her business upon terms different than those set forth in the offer to the seller’s Sponsor, such transfer shall be voidable at ITV’S option.
4.24.3 – Procedure
The buyer, transferee or assignee must complete a Representative Agreement (or Transfer Agreement if he or she is a current ITV Representative) and possess reasonable ability to satisfactorily perform the obligations of an ITV Representative who is of the same rank or status as the selling Representative.
Upon complete execution of the purchase and sale agreement, and the new Representative Agreement, the parties must submit copies of the same to ITV’S Compliance and Advertising Department for review and approval. ITV reserves the right to request additional documentation that may be necessary to analyze the transaction between the buyer and seller. ITV’S Compliance and Advertising Department will approve or deny the sale, transfer or assignment within 30 days after its receipt of all necessary documents from the parties.
The purchaser of the existing business will assume the obligations and position of the selling Representative. A Representative who sells his or her business shall not be eligible to re—apply as an ITV Representative for a period of at least six full calendar months after the sale.
4.25 — Separation of a ITV Business
ITV Representatives sometimes operate their ITV 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 Representatives and the Company, ITV will involuntarily terminate the Representative Agreement and roll—up their entire organization pursuant to Section 4.23.
During the pendency of a divorce or entity dissolution, the parties must adopt one of the following methods of operation:
One of the parties may, with consent of the other(s), operate the ITV business pursuant to an assignment in writing whereby the relinquishing spouse, shareholders, partners or trustees authorize ITV to deal directly and solely with the other spouse or non—relinquishing shareholder, partner or trustee.
The parties may continue to operate the ITV business jointly on a “business—as—usual” basis, whereupon all compensation paid by ITV will be paid in the joint names of the Representatives or in the name of the entity to be divided as the parties may independently agree between themselves.
Under no circumstances will the Matrix Organization of divorcing spouses or a dissolving business entity be divided. Similarly, under no circumstances will ITV split commission and bonus checks between divorcing spouses or members of dissolving entities. ITV will recognize only one Matrix Organization and will issue only one commission check per ITV 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 Representative Agreement shall be involuntarily cancelled.
If a former spouse or a former entity Representative has completely relinquished all rights in their original ITV business, they are thereafter free to enroll under any sponsor of their choosing, so long as they meet the waiting period requirements set forth in Section 4.5.4. In such case, however, the former spouse or partner shall have no rights to any Representatives in their former organization. They must develop the new business in the same manner as would any other new Representative.
4.26 — Sponsoring
All active Representatives in good standing have the right to sponsor and enroll others into ITV. Each prospective Representative has the ultimate right to choose his or her own Sponsor. If two Representatives claim to be the Sponsor of the same new Representative, the Company shall regard the first application received by the Company as controlling.
4.27 — Stacking
The term “stacking” includes: (a) the failure to transmit to ITV, or the holding of an Independent Representative Application and Agreement in excess of three business days after its execution; (b) the placement or manipulation of Independent Representative Applications and Agreements for the purpose of maximizing compensation pursuant to ITV’S Marketing and Compensation Plan; or (c) providing financial assistance to new Representatives for the purpose of maximizing compensation pursuant to ITV’S Marketing and Compensation Plan. Stacking constitutes a material breach of these Policies and Procedures, and is strictly and absolutely prohibited.
4.28 — Succession
Upon the death or incapacitation of a Representative, 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 Representative should consult an attorney to assist him or her in the preparation of a will or other testamentary instrument. Whenever an ITV business is transferred by a will or other testamentary process, the beneficiary acquires the right to collect all bonuses and commissions of the deceased Representative’s marketing organization provided the following qualifications are met. The successor(s) must:
Execute a new Representative Agreement;
Comply with terms and provisions of the Agreement; and
Meet all of the qualifications for the deceased Representative’s status.
Bonus and commission checks of an ITV business transferred pursuant to this section will be paid in a single check jointly to the devisees. The devisees must provide ITV 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. ITV will issue all bonus and commission checks and one IRS Form 1099 to the business entity.
4.28.1 — Transfer Upon Death of a Representative
To effect a testamentary transfer of a ITV business, the successor must provide the following to ITV: (1) an original death certificate; (2) a notarized copy of the will or other instrument establishing the successor’s right to the ITV business; and (3) a completed and executed Representative Agreement.
4.28.2 — Transfer Upon Incapacitation of a Representative
To affect a transfer of a ITV business because of incapacity, the successor must provide the following to ITV: (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 ITV business; and (3) a completed Representative Agreement executed by the trustee.

For more info and to see the business opportunity presentation go to: http://www.itvventures.com/sarah_tapp