This Tower Distributor Agreement contains the complete terms and conditions that apply to an individual or company's participation in Tower Laboratories Corporation's Distributor Program.
By clicking AGREE below you hereby indicate your acceptance and willingness to comply with Tower's Distributor Agreement, Compensation Plan, and Policies and Procedures. A copy of this Agreement will also be included in your Tower Distributor Kit and must be signed and returned to Tower Laboratories Corporation either by fax at 702-658-8531 or by snail mail to Tower Laboratories Corporation, 3432 North Bruce Street, Suite 3, North Las Vegas, Nevada 89030-8023.
Distributor Agreement
I have read and understand the Tower Laboratories Corporation's Compensation Plan and Policies and Procedures, which are incorporated herein and made a part of this Agreement, and I hereby acknowledge that I have no unanswered questions concerning same. Specifically, I understand my responsibilities to those I sponsor into the program and understand that a signed Agreement will be required for commission payments. Furthermore, I will conduct my Distributorship in accordance with Tower's Compensation Plan and Policies and Procedures and as they may be amended from time to time. I understand and acknowledge that no person has been authorized to give any information or to make any representation not contained herein or in any Tower literature, and that if given or made, such information or representation cannot be relied upon as having been authorized by Tower. I further acknowledge that I understand that a hard copy of this Agreement will be sent to, signed, and returned by me to Tower Laboratories Corporation and that all information submitted by me in that Agreement will be factual and accurate. This Agreement may be canceled by the Distributor at any time by submitting a signed and notarized letter of resignation to Tower Laboratories Corporation. In that event Tower shall repurchase consumable products purchased from Tower within three (3) months from the date that Tower receives the notarized letter of resignation at 90% of the original cost to the Distributor, minus all commissions paid on or in connection with such products, provided that such products are wholly owned by the Distributor and in the original packaging, factory sealed, and in resalable condition, and provided further that such products were not accumulated by failure to timely cancel the Autoship Program. In any state in which a specific buyback requirement has been enacted that may vary from the foregoing, Tower shall repurchase products in accordance with applicable state law. Under penalty of perjury, I hereby acknowledge that the number I will provide on the hard copy of the Distributor Agreement will be my correct Taxpayer Identification Number. Compensation Plan
Distributor Requirements
All Tower distributors agree to:
Purchase a Tower Independent Distributor Signup. The Signup includes the Tower4.Tower product brochures when available5.Tower Distributor Review Questionnaire to be completed, signed and returned6.Tower Distributor Agreement to be signed and returned7.Tower Distributor Compensation plan8.Tower Policies and Procedures Read both books and view the Linus Pauling DVD included in the Distributor KitComplete and return to Tower Laboratories the Distributor Review QuestionnairePurchase at least one jar of any Tower formula ($30 or greater) and agree to have theWithin six months from the initial date of signup and thereafter throughout the life of theDistributorship sell to a new customer or recruit and sign up one new Autoship customerwithin six months after the initial signup date and every six months thereafter during the lifeof his Distributorship When the Tower requirements have been met an Independent Distributor may then sell to retail establishments such as vitamin stores, doctors and other health care professionals at wholesale prices and earn commissions, and/or they can purchase Product from the company at wholesale and sell at Tower's established retail prices to individual Customers who are not retail establishments and earn the difference as profit. If they choose, they may sponsor other Distributors to work under their supervision. No stocking of inventory is required since most product is shipped directly to the purchaser.
Compensation
A Distributor may earn money in one or a combination of the following:
1. Independent Retail Consultant As a Retail Consultant a Distributor may sell cases (12 jars) and half cases to retail establishments such as vitamin and health food stores, doctors and other health service professionals. The Distributor will receive the lowest wholesale price on the specific Tower product(s) purchased. Such establishments may purchase at wholesale prices directly without purchasing a Distributorship or subscribing to the Autoship Program as required of Distributors. The product will be shipped to the Retailer by Tower, and the Distributor will earn a commission on the sales according to the Tower Compensation table below.
2. Personal Sales By selling directly to non-retail customers, a Distributor earns the difference between the wholesale and retail price. When the Product is automatically shipped by the company directly to the end consumer each month (Autoship) and paid for using the Customer's credit card, the Distributor's earning for each Customer is automatically repeated monthly. Commissions are not paid to Distributors who purchase at wholesale and earn mark-up profit on retail sales or sales to themselves but can be earned on sales made to and by additional Distributors sponsored by them as discussed in the next paragraph.
3. Group SalesDistributors may expand their businesses by sponsoring other Distributors to work under their supervision and receive the Commissions paid by Tower on Products sold to and by the new Distributors and their Downline groups as follows:
ONE TWO THREE FOUR FIVE SIX SEVEN EIGHT STAR STAR STAR STAR STAR STAR STAR STAR % % % % % % % %LEVEL 1 20 20.72 21.49 22.15 22.86 23.57 24.28 25.00
23.57 24.28 25.00LEVEL 2 7 7 7 7 7 7 8 9
LEVEL 3 6 6 6 6 6 6 6 6
LEVEL 4 5 5 5 5 5 5 5 5
LEVEL 5 5 5 5 5 5 5 5 5
LEVEL 6 5 5 5 5 5 5 5 5
SALES TO
QUALIFY ABOVE ABOVE ABOVE ABOVE ABOVE ABOVE ABOVE ABOVE
$0.00 $5,000 $25,000 $100,000 $250,000 $500,000 $750,000 $999,999
New Distributors enter at "Level 1" as shown in the above chart, and 6the Commissions at that level are the Commissions paid by Tower for sales to personally-sponsored Distributors in their first downline. As the personally sponsored Distributors in turn sponsor additional Distributors, the original Distributor will receive commissions on sales with percentages as shown at "Level 2." This pattern is repeated through "Level 6." No commission is paid after Level 6.
The "Sales to Qualify" is the total "Group Sales Volume" (as defined below) of Distributors during any 6-month period. The Commissions are computed as a percentage of wholesale price.
To be eligible to receive Commissions, Distributors must maintain "Active Status." That is, they must have remained on monthly autoship throughout the previous calendar year to their own address. They must also have sold at least one product valued at $30 or greater in addition to their personal monthly Autoships, or must have referred or signed up one new customer within six months of the Distributor's initial Distributor Signup date and every six months thereafter for the life of the Distributorship.
No stocking or inventory of Product is required, although the Distributor may choose to purchase one or more individual items of Product in addition to the required $30 monthly minimum for use in sales, either as exhibits or for immediate delivery to a new Customer or newly sponsored Distributor. At the Distributor's option, Tower agrees to repurchase any unused and undamaged portion of initial Product inventory at the Distributor's cost, minus reasonable shipping expenses, within 60 days of the manufacture date (Lot Number) unless the Distributor should, at a later date, reorder more than $500 of additional product.
If individual Distributors should lose their "Active Status" such as by not purchasing at least $30 of Product each month for their own account or not selling at least $30 worth of product to one new customers every six months, they may reactivate their status at any time and again become eligible for Commissions in their "Effective Month" at the percentages shown in the chart.
If a Retail Customer or a Retailer (store, doctor, etc.) should become a Distributor, the sponsoring Distributor will thereafter receive Commissions on purchases that the new Distributor makes, on their sales to others, and on the sales of other Distributors in their Downline instead of receiving mark-up profit to Retail Customers or commissions on a Retailer's own purchases. A Retailer must purchase a Distributorship to become a Distributor but will remain exempt from the autoship requirement.
You, as a Distributor, will start receiving Commissions on a Distributor sponsored by you in your "Effective Month" which is the month following the month in which Tower receives a Distributor Agreement completed and signed by the new Distributor, together with an Autoship authorization.
Each increase in the commission percentages that results from a Distributor progressing from a "1 Star" to an "8 Star" will be paid commencing in their Effective Month.
Definitions
Profit: The difference between the wholesale price and the retail price earned by the Distributor from sales to Customers. (Note: Tower expects most sales to be Autoship.)
Commission: Compensation paid by Tower and earned by the Distributors from sales of Product to Distributors they sponsored and their downline, as shown in "Level 1" through "Level 6" in the chart.
Effective Month: The first calendar month following the month Tower receives qualifying material including a Distributor Agreement and an Autoship Order Form, complete with credit card number and other necessary information to place a new Distributor in the computerized system. Also, the Effective Month is the month following a Distributor having achieved a total group sales volume shown on the chart as "Sales to Qualify" which increases his commission percentage as he advances from a "1 Star" to an "8 Star" Distributor.
Group Sales: Total sales made by Tower to Distributors and their Downline groups to Level 6 including Products purchased for their own account, sales to Retailers, and retail sales.
Sponsor: An individual Distributor who directly sponsors a person or other business to become a Distributor in his Downline group.
Autoship program: An arrangement by which a Retail Customer or a Distributor agrees to have a specified Product shipped directly to him monthly by the company and agrees to pay for such purchase by credit card, such authorization having been supplied to Tower. Added to the charge for the Product is a handling and shipping charge in the amounts then prevailing. It is through this program that the Distributor does not have to pay for or stock Product inventory or collect payment from the end user. An Autoship program can be canceled at any time by a number of ways including by e-mail or written communication to Tower or to his or her upline Distributor who then conveys the cancellation to Tower, or via the Tower Stop Autoship feature at the Tower Laboratories online store.
Downline: The line of sponsorship levels below a particular Distributor.
Upline: The line of sponsorship between a particular Distributor and all the sponsorship levels above.
Active Status: Distributors who during the past month have purchased for their own account at least $30 dollars of Product which was Autoshipped to their own address. This can include Product used for his or her own consumption. The Distributor must also have sold at least one product valued at $30 or greater or must have referred one new customer every six months after their initial Distributor Signup date. In any month in which a Distributor fails to qualify for "Active Status," the commission that he would have otherwise earned will cease to be paid he will cease to be a Distributor.
Product: Consumable Products manufactured by Tower.
Retailer: A vitamin, health food, or other store or retail establishment including doctors, chiropractors and other health service providers who retails products to its patients or customers.
Independent Retail Consultants: An independent contractor Distributor who sells to a retailer as defined above.
Representations and Covenants
As in any business, the greatest earnings are achieved by those who devote the greatest time and effort in selling Product and building their business. It is anticipated that only a limited percentage will progress to Eight Star Distributor status.
The Distributor Agreement may be canceled for any reason by notification in writing to Tower within 3 days from the date of execution of the Agreement, and any amounts which may have been paid will be immediately refunded. This Agreement is not assignable and does not survive the named Distributor.
Each Distributor agrees to exercise diligence in performing a bona fide and essential supervisory, distributive, selling and soliciting function in the sale and delivery of Products to ultimate consumers.
Tower cannot assure that any participant will ascend to a higher level or that they will succeed.
Each Distributor agrees that he or she will not make any claims that any Tower product can mitigate, prevent or cure any specific disease, and will never recommend that any customer stop taking or otherwise alter medication prescribed by a medical care professional.
Policies and Procedures
ETHICS: Distributors shall conduct their businesses in a manner that reflects the highest standards of honesty, integrity, and responsibility toward customers. Distributors must comply with all federal, state and municipal laws related to their business and must not engage in any unlawful or illegal trade practices or business activities.
PRODUCT CLAIMS: Distributors shall not repackage or relabel product. Distributors are not permitted to make any claims, either verbal or written, regarding products unless approved by Tower. Medical claims are NOT ALLOWED.
INDEPENDENT CONTRACTOR: After a Distributor Agreement has been executed and accepted by Tower at its corporate offices in the State of Nevada, applicant shall become an independent contractor Distributor conducting business for the Distributor's own account and not as an agent or employee of Tower. As an independent contractor each Distributor shall be responsible for obtaining any licenses required by law in the Distributor's locality. The Distributor shall be responsible for the entire operation of the Distributorship, including payment of all income, Social Security, unemployment, and other taxes. Each Distributor will receive a form 1099 on each Distributorship at the close of the calendar year as required by the Internal Revenue Service. Tower will not withhold from the compensation due the Distributor under the Compensation Plan any amounts for income, Social Security, unemployment or other taxes required to be withheld from the wages of employees.
DISTRIBUTOR: A Distributor may be an individual, partnership, corporation, or Limited Liability Company having executed a Distributor Agreement that has been received and accepted in the State of Nevada by Tower Laboratories Corporation. An individual may conduct his business under a properly filed fictitious business name. Only authorized Distributors may sell products or participate in the Tower Distributor Program.
FAMILIES: Husband and wife and any children residing with them are considered a single Distributor. Husbands and wives may neither sponsor each other nor children residing with them, nor have a different sponsor.
SINGLE DISTRIBUTOR: An individual may not participate in more than one Distributorship. An officer, director or stockholder of a corporation or a partner or member of a partnership or LLC that is a Distributor may not be involved in another Distributorship in any form.
MINIMUM AGE: A Distributor must be at least 18 years of age or the age of consent for the state in which the Distributor resides.
IDENTIFICATION NUMBER: The Distributor's Social Security number shall become his Tower Identification Number. The Federal Employer Identification Number shall be used in the case of entities other than individual persons.
TERRITORIES: No territories will be recognized as exclusive as to any Distributor.
INVENTORY: Inventory is neither required nor encouraged, since Tower sales are based primarily upon the Autoship Program. However, Distributors may purchase inventory for use in sales, demonstrations, samples, etc.
DOWNLINE MANAGEMENT: Each Distributor is expected to help in the administration, management and sales and to answer any questions of downline Distributors. In the event questions arise that the upline Distributor cannot answer, said Distributor will refer such questions to the next upline Distributor.
TERMINATION: A Distributor may terminate by submitting a signed and notarized letter of resignation to Tower. Any Distributor may be terminated in the event of a material violation of the Distributor Agreement and the Policies and Procedures or in a finding by Tower of unethical activity. In such event, Tower will send a Notice of Intent to Terminate to such Distributor, who will then have thirty (30) days in which to present his or her case in writing for review. In the event of termination, whether voluntary or involuntary, the commissions of the terminated Distributor will cease.
UNETHICAL ACTIVITY: Tower reserves the right to use its best judgment in deciding whether certain Distributor activities are unethical and, if determined to be so, to act accordingly. Unethical activity includes but is not limited to unauthorized duplication of company logo or trade names; unauthorized duplication of company literature; cross sponsoring; writing bad checks; unauthorized use of a credit card whether his own, his company's, or another person's; misrepresenting Tower products or the Tower Compensation Plan; engaging in any deceptive or unlawful trade practice or other illegal or unlawful activity; failure to gain approval for advertisements using the Tower name or any Tower products; misuse of the efforts of corporate personnel; or representing that any Tower product can diagnose, mitigate, prevent or cure a specific disease.
NON-COMPETITION AGREEMENT: No Distributor, either during or after his tenure as a Tower Distributor for a period of ten years shall produce or sell, or cause to be produced or sold, any competing product. Liquidated damages in the amount of $500,000 shall apply in the event of a breach of this provision.
ORDERLY GROWTH: Tower reserves the right to delay the approval of any new Distributor if such delay should become necessary in the interest of orderly growth of the company.
CHANGING SPONSORS: The changing of sponsors is allowed upon receipt by Tower of a written and signed request, and subsequent commissions will be paid to the newly designated upline Distributor.
SPONSORING: In the event one or more Distributors may contact the same prospect resulting in a dispute of the sponsoring rights, Tower will not mediate such disputes and will recognize as sponsor the person whose name appears on the application. If more than one application is received, the first application received by Tower will be recognized. A new Distributor has the right to choose his sponsor. No Tower Distributor may have an ownership interest in or operational or management control of, or derive any benefit directly or indirectly from any subsequent Distributorship not in the same line of sponsorship as the individual's initial Tower business.
CROSS SPONSORING: A Distributor may not sponsor or attempt to sponsor another Tower Distributor into any other network marketing company with the exception of personally sponsored Distributors. Cross sponsoring will constitute grounds for termination.
PAYMENT DATES: Commission checks will be mailed on the 20th day of each month for the previous month's business. An occasional sale of product that creates a commission must be received no later than the last business day of each month.
INCOME TAXES: Because Distributors are independent contractors Tower will not deduct or withhold any taxes from commissions or other earnings. Tower will issue as required an IRS Form 1099 which reports all of the income paid to the Distributor by Tower.
TRANSFER OF DISTRIBUTORSHIP: A Distributorship cannot be transferred by sale, assignment, Will, or interstate succession. This Agreement is personal to the Distributor and shall not be assigned. Solicitation of existing Tower Distributors to purchase a Tower Distributorship is strictly prohibited.
COMPLIANCE: Tower Policies and Procedures must be strictly adhered to. They exist in the interest of protecting both Tower Laboratories Corporation and its Distributors. Violations are serious and can result in immediate termination and loss of all Distributor benefits.
ARBITRATION: In the event a dispute should arise concerning the Compensation Agreement or these Policies and Procedures, or any other matter regarding the relationship between Tower and its Distributors, such dispute shall be resolved through arbitration pursuant to the rules of the American Arbitration Association. Any arbitration proceeding will be held at the location of the Tower Laboratories corporate headquarters with one Arbiter. The parties shall appear without legal counsel and the rules of the evidence shall not prevail.
ADVERTISING: Tower encourages advertising and promotion as part of the business of Distributors. However, no Distributor may represent himself as an employee, officer, or director of Tower or anything other than an independent contractor. Under no circumstances shall a Distributor be permitted to represent or allude to any Tower product having the ability to diagnose, prevent, mitigate, treat or cure any specific disease. Any breach of this aspect of the Agreement will constitute a violation of law and could result in termination as a Tower Distributor.
ADVERTISING APPROVAL: Any advertisement that contains the Tower name or the name of any of Tower's products must be submitted in writing to Tower Laboratories and approved by Tower beforehand. This provision applies to all forms of advertising including electronic media, computer and audio.
EXPORT POLICY: No Distributor may export or sell to others who export Tower products from the United States or its possessions or territories to any country without the prior written approval of Tower. Such sales are encouraged provided they comply with all domestic and foreign laws, and such compliance must be ascertained prior to such transactions.
THIS AGREEMENT: This Agreement constitutes the entire Agreement between the applicant and Tower Laboratories Corporation, and no other promises, offers, representations, agreements, or understandings of any kind shall be binding upon Tower unless made in writing and signed by an authorized officer of Tower Laboratories Corporation. Distributor agrees to comply with all federal, state and municipal laws relating to his own business and will not engage in any unlawful or illegal trade practice or business activity.
GOVERNING LAW: This Agreement shall be governed by the laws of the State of Nevada.
SHIPPING POLICY: Products, equipment and supplies shall be shipped within fifteen (15) working days after receipt of an order. Should Tower be temporarily out of stock on ordered merchandise, the Distributor will receive a back order notice. Back orders will be filled first when new inventory arrives. Volume of back orders will be credited to the month in which the payment for the original orders were received by Tower.
MEDIA INQUIRIES: In the interest of all Distributors, Tower has adopted a policy of accuracy and consistency as to its favorable company image. For this reason Distributors are prevented from commenting in all media inquiries and any such inquiries must be referred to Tower Laboratories Corporation.
TOWER LABORATORIES DISTRIBUTOR AGREEMENT,
COMPENSATION PLAN, AND POLICIES AND PROCEDURES
Disclaimer: The Food and Drug Administration (FDA) has not evaluated any statements on this Website. Tower Laboratories Corporation does not make health claims for its products. Tower Laboratories products are not intended to diagnose, treat or cure any disease. Tower is not responsible for independent third parties who may otherwise represent the efficacy of its products. These individuals are not Tower's agents and do not have permission to do so. Unsatisfactory products sold in the USA may be returned for a full refund within 60 days of the original ship date.
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Tower Laboratories Corporation • 3432 N. Bruce Street, Suite 3 • North Las Vegas, NV 89030-8023 • (702) 876-5805
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