Interactive XL, Inc. Policies and Procedures
Interactive XL, Inc. Policies and Procedures governing Independent Representatives are outlined below. Take time to read the entire document to fully understand the Policies and Procedures. These Policies and Procedures are incorporated by reference in the Interactive XL, Inc. Independent Representative Agreement. In the case of any conflict between these Policies and Procedures and the Independent Representative Agreement, the Independent Representative Agreement shall prevail. Interactive XL, Inc. reserves the right to change these Policies and Procedures at any time. 
Interactive XL, Inc. Statement of Operating Philosophy
The Founders of Interactive XL, Inc., Inc. (Interactive XL, Inc.) believe in leadership by example rather than management by directive. Interactive XL, Inc.’s leadership has demonstrated a high degree of integrity and success at both sales and corporate levels. As such, they are committed to the following principles and standards as an expansion of their creed. For purposes of these Policies and Procedures, Interactive XL, Inc., Inc., its parent, subsidiaries and affiliates shall be referred to as "Interactive XL, Inc.."
Commitment to Excellence
The Interactive XL, Inc. corporate management team is committed to supporting its customers and Independent Representatives, to giving them quality service and to calculating and issuing commission payments in a timely manner. Interactive XL, Inc. has set these goals to give each Independent Representative the best opportunity to develop a successful business. Interactive XL, Inc. will not exclude anyone from this great opportunity based on race, age, sex, national origin, religion, disability or any other similar grounds prescribed or otherwise prohibited by law.
I. Independent Representative Rights and Obligations
A. Ethics
Interactive XL, Inc. conducts business in an ethical and credible manner and requires its representatives to deal ethically with their customers, with each other and with the company. Interactive XL, Inc. permits no unethical or illegal activity and will intercede when such behavior may exist, and Interactive XL, Inc. reserves the right to use its best judgment in deciding whether certain representative activities are unethical. Furthermore, Interactive XL, Inc. may use its own discretion in determining the appropriate course of action. If Interactive XL, Inc. determines that unethical activities may exist, then it reserves the right to suspend or terminate Independent Representative status, including but not limited to all commissions and payments of any kind. Under no circumstances would an Independent Representative who is terminated for unethical or illegal activity be entitled to a refund of their original application fee, nor are they entitled to sell or transfer their position.
EXAMPLES OF UNETHICAL OR ILLEGAL ACTIVITY INCLUDE, BUT ARE NOT LIMITED TO:
1. Forging a signature on any document.
2. Making false or misleading representations of any kind including, but not limited to, misrepresentations about Interactive XL, Inc. services or the Interactive XL, Inc. Compensation Plan.
3. Depositing checks made payable to Interactive XL, Inc. into personal accounts instead of immediately forwarding them to Interactive XL, Inc..
4. Cross-line recruiting: An Interactive XL, Inc. Independent Representative may not solicit an individual or entity that has been previously sponsored by another Independent Representative or that is considering joining Interactive XL, Inc. and being sponsored by another Independent Representative. During the term of their agreement and for a period of one (1) year after their Agreement has expired or terminated, Interactive XL, Inc. Independent Representatives are further prohibited from directly or indirectly soliciting an existing or pending Independent Representative into a sales organization in which he/she is not currently a member.
Interactive XL, Inc. Independent Representatives may not solicit an Interactive XL, Inc. Independent Representative, whether active, inactive, individual or an entity, to participate in a network marketing program offered by any other company, regardless of whether or not such network marketing company offers telecommunications services or other services competitive to those offered by Interactive XL, Inc.. During the term of their agreement and for a period of 1 year after, Interactive XL, Inc. Independent Representatives are further prohibited from directly or indirectly soliciting an existing or pending Independent Representative into a sales organization in which he/she is not currently a member.
5. Spreading false or misleading remarks or rumors with malicious intent that may disparage Interactive XL, Inc., Interactive XL, Inc. employees, or another Interactive XL, Inc. Independent Representative.
6. Any unauthorized use of Interactive XL, Inc.’s name, trademarks or copyrighted material (i.e. reproducing Interactive XL, Inc.’s forms, business cards, etc.).
7. Violation of any federal, state or local laws or regulations.
B. Offerings/Terms of Service
Interactive XL, Inc. and its carrier/supplier/service provider(s) have the sole right to accept or reject orders for products and services, to establish and change without notice, the prices of such products and services as well as to establish the terms and conditions of their offering. Interactive XL, Inc. and its carrier/supplier/service provider(s) may also discontinue offering or selling any product or service, without liability or obligation to Interactive XL, Inc., its Independent Representatives or its customers. Independent Representatives may only offer and sell services and products in accordance with rates, terms and conditions established by Interactive XL, Inc., any regulatory agency or its carrier/supplier/service provider(s). All sales representations and activities must be in full compliance with all applicable laws and regulations. Independent Representatives may only use those means of marketing and selling of services and products that are solely acceptable to Interactive XL, Inc. and its carrier/supplier/service provider(s).
C. Co-Mingling of Funds
Independent Representatives must make their application fees payable to Interactive XL, Inc. only. No Independent Representative shall accept funds for applications and co-mingle them with personal or association accounts. Interactive XL, Inc. may terminate any Independent Representative discovered co-mingling funds or operating a bank account in the name of Interactive XL, Inc. or any other similar name.
D. Personal Usage/Purchases
An Independent Representative is not required to subscribe to or purchase any product or service marketed by Interactive XL, Inc.. Advancement to higher levels in the Interactive XL, Inc. Compensation Plan is based upon the acquisition of customers. However, if an Independent Representative chooses to purchase any products or services offered by Interactive XL, Inc., he/she will be responsible for all billing when due. If an Independent Representative becomes past due on any bill, for services or products provided by Interactive XL, Inc. or a company with which Interactive XL, Inc. contracts, Interactive XL, Inc. may deduct amounts owed from future CAB or commission payments. Interactive XL, Inc. reserves the right to terminate an Independent Representative that is repeatedly past due in the payment of any service or product.
E. Unauthorized Contact
Under no circumstances, is an Independent Representative permitted to directly contact any carrier/supplier/service provider(s) with whom Interactive XL, Inc. contracts, unless it is in specific relation to a personal account they may currently have with said provider.
In the event that your customer is experiencing difficulties with a specific provider, please inform your customer to contact Interactive XL, Inc. directly or the appropriate provider of service to resolve the matter.
F. Territorial Rights/Conducting Business across Borders
Independent Representatives may market services and products and sponsor new Independent Representatives in any country where Interactive XL, Inc. conducts business, without exclusivity. Independent Representatives may only promote Interactive XL, Inc. in countries where Interactive XL, Inc. currently operates.
Independent Representatives conducting business in foreign countries must adhere to the Interactive XL, Inc. Policies and Procedures governing activities in that country. Furthermore, compensation will be paid in U.S. funds.
Independent Representatives are responsible for knowing and adhering to all laws and accepted business practices in the countries they choose to market. This includes but is not limited to Customs and Immigration Laws and accepted marketing practices.
II. Marketing and Advertising Policy
A. Company Philosophy Regarding Marketing Materials and Events
Interactive XL, Inc. has developed a success system based on solid experience and knowledge. As such, we have created marketing materials and activities to fully support this model. No other marketing materials or activities are necessary to become successful as an Interactive XL, Inc. Independent Representative. Therefore, Interactive XL, Inc. strongly discourages our Independent Representatives from creating and/or distributing any marketing materials. In addition, Interactive XL, Inc. strongly discourages the practice of monetarily profiting from any type of marketing event.
B. Use of Interactive XL, Inc.'s Identity
In addition to our representatives and employees, Interactive XL, Inc.’s identity is one of its most valuable assets and, therefore, must be protected at all times in order to maintain its integrity for all. As such, Interactive XL, Inc. Independent Representatives are strictly prohibited from representing themselves as having any other affiliation with Interactive XL, Inc. other than as an "Interactive XL, Inc. Independent Representative" at any time or in any manner.
Also, Independent Representatives are strictly prohibited from using logos, names, trademarks, or other proprietary information belonging to Interactive XL, Inc. or its wholly owned subsidiaries, unless approved in writing by Interactive XL, Inc..  This includes, but is not limited to, website urls, marketing materials, signage, etc. 
C. Cold Marketing in Customer Acquisition and Recruiting
Interactive XL, Inc. strictly prohibits the purchase or sale of customers at any time.
Interactive XL, Inc. is a network marketing company that is focused on relationship, or "warm marketing" techniques. Interactive XL, Inc. strongly discourages Independent Representatives from engaging in "cold marketing" techniques for purposes of customer acquisition at any time. Cold marketing is defined as any promotional activity that is geared toward random individuals who have no personal, business, social or acquaintance relationship(s) with the promoter. Examples of cold marketing include, but are not limited to, mass advertising, purchased leads, trade show participation, door-to-door selling, telemarketing, pamphlet distribution, auto dialer usage, etc.
Furthermore, Interactive XL, Inc. also highly discourages cold marketing techniques for purposes of recruiting other Independent Representatives, as these can be costly, ineffective, and highly distracting to an Independent Representative’s network marketing efforts. The use of telemarketing and "speed dial" (random or auto dialing) techniques for recruiting purposes is strictly prohibited. Refer to "Telemarketing, Random Dialers and Lead Generation Programs" for specific rules regarding these cold marketing techniques.
If an Interactive XL, Inc. Independent Representative disregards Interactive XL, Inc.’s recommendation and uses cold marketing techniques, then that representative is responsible for adhering to any applicable laws, limitations or regulations that govern such techniques, including the accuracy of all information presented. In addition, any materials, scripts, advertisements, literature, videos, audios, etc., used in conjunction with a cold marketing effort must strictly adhere to Interactive XL, Inc.’s complete policy "Development and Use of Independent Marketing Materials".
D. Development and Use of Independent Marketing Materials
Interactive XL, Inc., including its wholly owned subsidiaries, strictly prohibits Interactive XL, Inc. Independent Representatives from creating, distributing, and/or using unauthorized marketing materials or websites that include any Interactive XL, Inc. trademarks, logos, names or proprietary information.
Marketing materials are defined as any printed, broadcast or online communications including, but not limited to, advertisements, brochures, videotapes, audiotapes, flyers, banners, flags, websites, telephone recordings, emails, presentation materials, apparel, building signage, etc.
Interactive XL, Inc. strictly prohibits representative-created marketing materials that 1) do not adhere to Interactive XL, Inc.’s policy on use of logos, names, trademarks, and proprietary information, 2) make any specific references to Interactive XL, Inc.'s products, plans, rates or any component of the Compensation Plan, 3) make any claims or guarantees related to savings, rates or pricing, either expressed or implied, 4) make any earnings claims or provide any hypothetical earnings calculations, either expressed or implied, or 5) represent Interactive XL, Inc. as an employment opportunity, either expressed or implied unless approved in writing by Interactive XL, Inc..
Interactive XL, Inc. will allow the distribution of representative-created marketing materials, that promote a presentation meeting, event or piquing interest conversation for purposes of recruiting only, provided that said materials: 1) are not sold, 2) only promote a presentation meeting, event or piquing interest conversation, 3) adhere to Interactive XL, Inc.’s policy on use of logos, names, trademarks and proprietary information, 4) do not make any specific references to Interactive XL, Inc.'s products, plans, rates or any component of the Compensation Plan, 5) do not make any claims or guarantees related to savings, rates or pricing, either expressed or implied, 6) do not make any earnings claims or provide any hypothetical earnings calculations, either expressed or implied and 7) do not represent Interactive XL, Inc. as an employment opportunity, either expressed or implied.
E. Earnings/Income Claims and Savings, or Rate Guarantees
Interactive XL, Inc., including its wholly owned subsidiaries, strictly prohibits Interactive XL, Inc. Independent Representatives from making any claims or guarantees related to earnings/income, whether expressed or implied. This limitation extends to both written and verbal communications. Only company prepared and approved hypothetical earnings calculations are permitted to be used, and they may only be used for purposes of describing the Compensation Plan.
Interactive XL, Inc. Independent Representatives may not make any references to specific or numerical saving guarantees, whether expressed or implied, with respect to Interactive XL, Inc.'s services. This limitation extends to both written and verbal communications.
F. Websites, Links and Spamming
Interactive XL, Inc. Independent Representatives may choose to utilize the Internet to promote their business via a website. If Interactive XL, Inc. Independent Representatives choose to create their own websites, they must clearly identify themselves as "Interactive XL, Inc. Independent Representatives" in a prominent place on their sites, including the first or "home" page. In addition, these websites must strictly adhere to Interactive XL, Inc.’s complete policy on "Development and Use of Independent Marketing Materials" (Section II D). Website urls obtained by an Interactive XL, Inc. Independent Representative cannot contain references to Interactive XL, Inc., its affiliates or trademarked products.  If a website contains such references, the Interactive XL, Inc. Independent Representative will be required to release the url to Interactive XL, Inc..
Interactive XL, Inc. Independent Representatives may link to Interactive XL, Inc.-owned websites provided that the representatives’ sites strictly adhere to Interactive XL, Inc.’s policy on websites as stated above. Also, Interactive XL, Inc. reserves the right to mandate the removal of any links to Interactive XL, Inc. sites on representatives’ sites.
Representatives are prohibited from placing any Interactive XL, Inc. documents, forms, audios or video content on their website unless approved in writing by Interactive XL, Inc..
In addition, Interactive XL, Inc. strictly prohibits "Spamming", or the use of unsolicited e-mail messages or broadcasts, “Phishing”, or the sending of unsolicited emails seeking responses containing private information, and “Phoraging”, the mining of data from multiple sources to obtain private information.
G. Telemarketing, Random Dialers and Lead Generation Programs
Interactive XL, Inc., including its wholly owned subsidiaries, strictly prohibits the use of telemarketing and "speed dial" (random or auto dialing) marketing by Interactive XL, Inc. Independent Representatives. This limitation applies to both customer acquisition and recruiting activities.
Interactive XL, Inc. strongly discourages use of lead generation programs for purposes of customer acquisition  and recruiting as these can be costly, ineffective, obtrusive, and highly distracting to an Independent Representative’s network marketing efforts.
H. Cash or Monetary Incentives
Interactive XL, Inc., including its wholly owned subsidiaries, strictly prohibits Interactive XL, Inc. Independent Representatives from offering cash or monetary incentives, promotions, prizes or bonuses to members of their downline or upline organizational members, or customers as a method of influencing customer acquisition.
To eliminate cross-line recruiting practices, Interactive XL, Inc. strictly prohibits the use of cash or monetary incentives/promotions/prizes/bonuses for purposes of recruiting new representatives.
Interactive XL, Inc. encourages its Independent Representatives to promote customer acquisition and recruiting by adhering to Interactive XL, Inc.’s specific sales model.
I. Media Inquiries and Personal Appearances
On occasion, Interactive XL, Inc. Independent Representatives may be contacted by members of the media as a source or subject for a story. If this occurs Independent Representatives must immediately refer such inquiries directly to Interactive XL, Inc.’s Marketing Department.
Independent Representatives are strictly prohibited from representing Interactive XL, Inc. in any public media arena, and from using uncompensated media forms including, but not limited to, news releases, articles, editorials, unpaid advertising, infomercials/advertorials, and television, cable or radio program appearances to promote or publicize Interactive XL, Inc. or its products, except as approved in writing by Interactive XL, Inc.. Such requests must be submitted in writing to Interactive XL, Inc.’s Marketing Department at least 30 days in advance of the media activity. This policy is necessary to ensure an accurate, legal and consistent public image for Interactive XL, Inc. and its Independent Representatives.
J. Fundraising
Interactive XL, Inc. strongly discourages marketing the Interactive XL, Inc. opportunity to non-profit organizations as a method of fundraising as these programs seldom work well within Interactive XL, Inc.’s proven sales model. However, if introducing the Interactive XL, Inc. opportunity to a non-profit organization, Independent Representatives are responsible for advising the organization to discuss the tax implications of this type of business with a professional tax advisor. The non-profit organization must be made aware that state laws vary and that some state attorneys general have guidelines that must be complied with. In addition, all state and federal non-profit fund raising laws must be complied with.
K. Purchases Materials
Interactive XL, Inc. advises Independent Representatives to be very cautious and well-informed consumers regarding any marketing materials not produced and distributed directly by Interactive XL, Inc.. We do not monitor the effectiveness of, endorse or accept responsibility for any materials not created by Interactive XL, Inc..
Independent Representatives who refuse to comply with Interactive XL, Inc.’s Philosophy Regarding Marketing Materials and Events (Also refer to section II A, Marketing and Advertising Policy – "Company Philosophy Regarding Marketing Materials and Events") are solely responsible for adhering to applicable state and federal laws.
The purchase of marketing materials is not necessary to be an Interactive XL, Inc. Independent Representative.
L. Promotion of Other Businesses/Programs
Interactive XL, Inc. strictly prohibits the co-marketing of any other business, product, service, seminar or program in conjunction with the Interactive XL, Inc. opportunity. This limitation applies to all promotional activities including, but not limited to, marketing materials, events, presentations, verbal solicitations, etc. In addition, Interactive XL, Inc. strongly discourages the practice of using non-Interactive XL, Inc. speakers at any Interactive XL, Inc.-related event.
M. Events
Interactive XL, Inc. supports the practice of Training Events, Business Opportunity Meetings and Private Business Receptions, as they are valuable educational tools when held properly with both professionalism and integrity. The true intent of such events is to provide further education on the Interactive XL, Inc. opportunity and how to be successful within this business.
Under no circumstances are Events or any other type of meeting/training session intended to provide any additional income stream to those who are sponsoring the events, and must be offered as non-profit activities at all times.
All Events should be submitted to Interactive XL, Inc. for approval in conjunction with the current terms of hosting Company Sponsored Events. Events that do not receive prior approval will be considered operating outside of Interactive XL, Inc.’s training philosophy and will not be promoted or endorsed by the company in any manner.
Attendance at Interactive XL, Inc. events is not a requirement for being an Independent Representative, nor a prerequisite for success in this business.
N. Remuneration
Interactive XL, Inc. reserves the right to pursue the remuneration of any legal or operational fees or the recovery for any damages as a result of any policy violation by an Interactive XL, Inc. Independent Representative. Interactive XL, Inc. also reserves the right to recoup such costs from future Customer Acquisition Bonuses (CABs), commissions or other payments.
O. Further Limitations
Interactive XL, Inc. reserves the right to limit or disallow any marketing activities that cast negative aspersions on the integrity, truthfulness, and/or reputation of Interactive XL, Inc..
III. Status as an Independent Contractor
A. Claims of Employment
Independent Representatives are independent contractors and not employees of Interactive XL, Inc.. The position of Independent Representative shall not be construed as creating a relationship of employee-employer, agency, partnership or joint venture between any participant, sponsor and Interactive XL, Inc.. It is impermissible to assert or imply that an Independent Representative or prospective Independent Representative is or will be employed by Interactive XL, Inc..
B. Binding Arbitration
In the event a dispute shall arise between an Independent Representative and Interactive XL, Inc. as to the Independent Representative Agreement and/or the Policies and Procedures such disputes shall be resolved through binding arbitration before the American Arbitration Association pursuant to the Commercial Rules of Arbitration. The arbitration shall be held in Phoenix, Arizona before a panel of three arbitrators, each side choosing one and then the two choosing the third. All claims hereunder must be brought within two (2) years of the date on which the facts or circumstances giving rise to the claim are alleged to have happened. Arizona law shall apply to the resolution of the dispute unless otherwise agreed in writing. The award of the arbitrator shall be final and may be entered in any court of competent jurisdiction. This provision shall not restrict Interactive XL, Inc. from seeking preliminary or permanent injunctive relief in any court of competent jurisdiction.
C. Contractual Obligations
All Independent Representatives are responsible for any expenses which result from their business operation. Miscellaneous expenses include, but are not limited to, license or permits required to operate a business, legal fees connected with the use of a business name, telephone expenses, product advertising, etc. Independent Representatives shall not involve Interactive XL, Inc. in any contractual relationships relative to their businesses. Independent Representatives cannot and shall not sign contracts, rent or lease office space or equipment, open bank accounts, secure credit, cash negotiable instruments, make purchases or enter into agreements of any kind in the name of Interactive XL, Inc.. Such action is prohibited and cause for termination of Independent Representative status. Each Independent Representative shall hold Interactive XL, Inc., its shareholders, partners, members, directors, officers and employees harmless from any claims, damages or liabilities arising out of such action.
D. Reporting Taxes
Independent Representatives are not considered employees for purposes of the Social Security Act, the Federal Unemployment Tax Act, Federal Income Tax laws or any other laws governing employees. It is the Independent Representative’s responsibility to make self-employment and income tax payments as required by law. As such, Interactive XL, Inc. does not deduct any taxes from any commission and/or CAB payments. Interactive XL, Inc. will send a Form 1099 to all applicable Independent Representatives who earn $600 or more in a tax year.
It is the Independent Representative’s responsibility to provide Interactive XL, Inc. with the proper Social Security Number or Taxpayer Identification Number. If the information that is provided is incorrect or if the Internal Revenue Service notifies Interactive XL, Inc. that the information does not match their records then Interactive XL, Inc. will hold all future payments until the matter is resolved.
IV. Business and Legal Entities as an Independent Representative
A. Companies
A sole proprietorship, partnership, Limited Liability Company (LLC) or corporation may become an Independent Representative subject to review and approval by Interactive XL, Inc.. However, no individual may participate in more than one representative position without the prior written approval of Interactive XL, Inc..
For the company to become a new Independent Representative, or to change their current representative status to a company, Interactive XL, Inc. must be notified in writing. Written notice is also required when changing an existing individual’s representative status to a company.
The following items are needed to apply for an Interactive XL, Inc. Independent Representative status as a company:
1. The name of the company
2. The company's Taxpayer Identification Number
3. A list of all partners/shareholders/members with more than 5% ownership – the document MUST include the Social Security Number for each person listed
4. A completed Independent Representative Agreement, signed by an individual authorized to enter into binding agreements on behalf of the business entity
Individuals who submit the Independent Representative agreement must be authorized to enter into binding contracts on behalf of the company.
B. Trusts
An Independent Representative can operate their representative status in the name of a trust. The person(s) that is (are) responsible for operating the business of the trust must be of legal age and cannot be another Independent Representative or have an ownership interest in another Independent Representative status.
To become a new Independent Representative as a trust or to change an existing representative status to a trust, Interactive XL, Inc. requires written notification and a new Independent Representative agreement.
The following items are needed to apply for an Interactive XL, Inc. representative status as a trust:
1. A legal document displaying the name of the trust and a legal opinion from an attorney stating that the trust is in compliance with all state and federal laws
2. A document that provides proof of the trust’s Taxpayer Identification Number
3. A document that lists all trustees including the Social Security Number for each person listed.  For a Grantor Trust, a document that provides the Social Security Number of the Grantor. 
4. A completed Independent Representative Agreement, signed by an individual authorized to enter into binding agreements on behalf of the trust
The person who submits the written notification must be authorized to enter into binding contracts on behalf of the trust.
It is the Independent Representative’s responsibility to insure that Interactive XL, Inc. has received all the required documentation to list the representative status as a company or trust. If Interactive XL, Inc. has not received the appropriate documentation within 30 days, then Interactive XL, Inc. will suspend the Independent Representative position until all of the documentation is received and processed by Interactive XL, Inc.. In addition, any commissions or CABs earned during the suspension period will be held until the matter is resolved.
C. Marriage
A husband and wife may operate under the same representative position or independently. If the husband and wife choose to operate independently, then one spouse must be sponsored by the other. Interactive XL, Inc. reserves the right to ensure that husband and wife distributorships independently operated are correctly sponsored and make any necessary corrections. Spouses that choose to operate the same position will be treated as partners.
D. Specifications for Independent Representative Names
Interactive XL, Inc. reserves the right to approve or disapprove any representative’s choice of business names, formation of partnerships, corporations and trusts, for tax, estate planning and liability purposes. If Interactive XL, Inc. approves such a change by the representative, the organization’s name and the names of the principals of the organization must appear on the Independent Representative Agreement along with a Social Security Number or Federal Tax Identification Number.
Any request for a change in the name or a change in the Social Security Number or Tax Identification Number of the Independent Representative status is subject to a written agreement, signed by all parties involved, submitted to and approved by Interactive XL, Inc.. Interactive XL, Inc. reserves the right to verify all authorizations prior to making changes. In the absence of any agreement or notification, Interactive XL, Inc. will only recognize the individual whose Social Security Number was originally listed on the Independent Representative Agreement. Please note that Interactive XL, Inc. will only continue to service the Independent Representative who remains listed in our computer system. Interactive XL, Inc. reserves the right to intercede in disputes, and if it is determined that unethical activity exists, the status may be suspended and/or terminated.
V. Identification Numbers
All representatives will be assigned a unique number that identifies them as a representative of Interactive XL, Inc.. This number is referred to as their Team ID Number. It is the representative's responsibility to provide this number on all  Independent Representative Agreements when sponsoring a new Independent Representative.
VI. Sponsoring New Representatives
A. Independent Representative Agreements
New Independent Representatives must complete and sign an Independent Representative Agreement or complete the new representative sign up process on the Interactive XL, Inc. website at www.Interactive XL, Inc..com. Only the new representative may complete the online Independent Representative Agreement.  It cannot be completed by the sponsor or upline on behalf of the new representative. Application fees can be paid by Visa, MasterCard,  Discover, check or money order. (Please note that Interactive XL, Inc. may assess a fee for any credit card payments that result in a charge back.)  Interactive XL, Inc. does not accept postdated or third-party checks. The new Independent Representative or the sponsor can mail or fax the white copy of the Independent Representative Agreement to Interactive XL, Inc. for processing. If the application fee is being paid by check, the original copy of the Independent Representative Agreement must be mailed to Interactive XL, Inc.. The start date of an Independent Representative is the date that their completed Independent Representative Agreement is entered and payment is received, or the date their first customer was submitted, whichever occurs first. Interactive XL, Inc. assesses a fee for all returned checks. Interactive XL, Inc. reserves the right to refuse entry of an Independent Representative Agreement without payment and to adjust the start date accordingly.
B. Representation
Independent Representatives shall make no claim or inference to prospective Independent Representatives as to the anticipated or actual income an Independent Representative might earn. Interactive XL, Inc. makes no guarantees of income, nor assurances of any profits or success. Furthermore, any profits or success resulting from activities as an Independent Representative will be based upon customer acquisition and the amount of services or products purchased by those customers. Any success achieved will be based solely upon the Independent Representative’s effort, commitment and skills.
Each Independent Representative understands that no Attorney General of any state, territory or other regulatory authorities ever reviews, endorses or otherwise approves any product membership or compensation program of any marketing company. As such, each Independent Representative shall make no such claim to a prospective Interactive XL, Inc. Independent Representative. In the event that a question arises concerning Interactive XL, Inc.’s compliance with the law, such question shall be submitted to Interactive XL, Inc. in writing. Interactive XL, Inc. Independent Representatives shall make no false claims or misleading statements concerning these relationships and understand that if they do, their relationship with Interactive XL, Inc. may be terminated and all commissions and bonuses forfeited.
Independent Representatives agree to indemnify and hold Interactive XL, Inc. and its shareholders, partners, members, directors, officers and employees harmless from all claims, damages and expenses, including attorneys’ fees arising out of actions or conduct in violation of the Agreement.
C. Independent Representative Disputes
Interactive XL, Inc. may or may not mediate any disputes between two or more Independent Representatives if requested to do so by all of the parties involved in the dispute. Interactive XL, Inc., however, reserves the right to review sponsoring practices. If Interactive XL, Inc. agrees to mediate any dispute, its findings shall be binding on all parties involved in the dispute.
D. Changing Sponsorship
Interactive XL, Inc. believes in and maintains the maximum protection of the Independent Representative’s relationship with his or her sponsor. Therefore, changing sponsors is strictly prohibited. It is the responsibility of the Independent Representative to ensure the sponsor information submitted on the Independent Representative Agreement is accurate and complete. 
An Independent Representative may join Interactive XL, Inc. under a new sponsor only after a period of no less than one full calendar year from the date of resignation or no less than one full calendar year after an Independent Representative fails to renew or cancels their distributorship. All resignations must be in writing and delivered to Interactive XL, Inc..
Interactive XL, Inc. reserves the right to change sponsorship if it is found that unethical or misleading practices were used.
VII. Maintaining/Changing the Status of Your Business
A. Selling Your Independent Representative Position
To protect the integrity of the business opportunity, Interactive XL, Inc. restricts the sale of Independent Representative “positions”. All requests for the sale of an Independent Representative position must be reviewed and approved by Interactive XL, Inc.. For permission to sell your Independent Representative position, forward a letter of intention to Interactive XL, Inc., indicating your wish to sell. Interactive XL, Inc. will send all needed documentation to the seller for completion, before the process can begin. For more information, please contact Customer Services.  Interactive XL, Inc. reserves the right to withhold or condition its consent to the sale of an Independent Representative position in its reasonable discretion. 
The Independent Representative position WILL NOT be considered SOLD until the sale is approved by Interactive XL, Inc.. Therefore, DO NOT accept any funds from the potential buyer until the sale has been approved and finalized. Interactive XL, Inc. charges a $1,000 fee to process any approved sale. Do not send the $1,000 fee until Interactive XL, Inc. has approved the sale.
Companies or partnerships that have a change of ownership greater than twenty percent (20%) must notify Interactive XL, Inc. of such change in ownership. The new owners/stockholders must comply with the terms of the independent representative agreement and these Policies and Procedures. If there is a change in ownership of 50% or greater, then the rules regarding the sale of an Independent Representative position apply, including the $1,000 transfer fee.
B. Transfer/Disposition of Independent Representative Business
Upon the death or incapacity of an Independent Representative, or of its principals, the rights to the commission and marketing position shall pass to the designated successor, provided said successor complies with all the terms of the Interactive XL, Inc. agreement, Interactive XL, Inc.’s Policies and Procedures and fulfills the duties and obligations required of an Independent Representative. In the case of a transfer to an existing Independent Representative, or to an individual listed as a partner/shareholder/trustee in an existing Independent Representative status, the individual will need to contact Interactive XL, Inc. to discuss his/her options in either maintaining the status or transferring it. If the transfer is of a temporary nature (i.e. the Independent Representative is temporarily incapacitated), the subsequent activation and deactivation will likewise be temporary.
C. Change of Independent Representative Information
Independent Representatives must report any change of address, telephone number or email address online in the Edit Profile section of their Business Suite or by sending written notification to Interactive XL, Inc..
VIII. Commissions
A. Reports
Hierarchy Reports and other reports will be available the back office section of the Independent Representative’s Business Suite. Personal Customer Lists are also available in the Independent Representative’s Business Suite.  The Independent Representative acknowledges and agrees such information is proprietary and confidential to Interactive XL, Inc. and is transmitted to the Independent Representative in strict confidence. The information provided may not be distributed to any other individual or company. But for this agreement of confidentiality, Interactive XL, Inc. would not provide the above information.
B. Eligibility for Compensation
In order to receive compensation, representatives must be active and qualified according to Interactive XL, Inc.’s Compensation Plan.
C. Fast Start Bonus/Customer Acquisition Bonuses (CABs)
Customer Acquisition Bonuses are weekly bonuses, paid two weeks in arrear, to an Independent Representative who sells a $150 system or a $500 system to a customer pursuant to the terms of the Compensation Plan.
CABs are processed everyday and reported on the following Friday after the customer has registered and payment has been received. All documentation necessary for CAB qualifications must be received and processed by Interactive XL, Inc. by 11:59pm Pacific Standard Time on Thursday for a CAB payment to be issued that following week. Please refer to the Interactive XL, Inc. website for the specific conditions for submitting Independent Representative Agreements, etc.
Customer Acquisition Bonuses are paid to Independent Representatives on the first 4 levels, as shown in the Compensation Plan at the time the new Independent Representative Agreement is received and processed by Interactive XL, Inc..
A Independent Representative’s start date is determined by either the date of payment of their fee or the date their first customer is entered into Interactive XL, Inc.’s system, whichever occurs first.
D. Commissions
Commissions are paid on a weekly basis, two week in arrears, to all levels in the Interactive XL, Inc. Compensation Plan. Commissions are calculated based on the commissionable revenue on services and products used by your customers and the customers in your organization, according to the Compensation Plan for the country in which the services are provided. Interactive XL, Inc. reserves the right to reduce commissionable revenue by a percentage factor for promotional plans, products, negotiated pricing or certain services.
Commissions are reported on the seven days after the Friday of each week. Commissions are paid 14 days after the close of the day the customer is billed. The commission qualifications listed on the Compensation Plan are minimum qualifications. Interactive XL, Inc. recommends that Independent Representatives exceed the minimum qualifications in order to ensure that they remain fully qualified in the event that one or more customer cancels service.
All customers submitted for your commission qualifications must be received and processed by Interactive XL, Inc. by 11:59pm Pacific Standard Time on Thursday for a commission payment to be issued in two weeks. Please refer to the Interactive XL, Inc. website for the specific conditions for submitting Independent Representative Agreements, etc.
A Payment Processing Fee will be deducted from each CAB and commission payment to cover processing costs relating to the issuance of the payment and the statement. A payment will not be issued until the total amount (less the Payment Processing Fee) is greater than $10. The Independent Representative will also be responsible for a $10 Re-issue Fee anytime a payment is returned to Interactive XL, Inc. and requested to be re-issued. If a stop payment must be placed and a new payment re-issued, the Independent Representative will be responsible for a $25 Stop Payment Fee. The Independent Representative will also be responsible for a $30 Administrative Fee (for each payment) if their payment(s) remains un-cashed for more than 90 days.
E. Reversal of CABs or Commissions
Interactive XL, Inc. reserves the right to retract the payment of any CAB or commission if it is found that a customer used to qualify for a CAB or a certain commission level was not a valid billing customer.
F. Adjustments for Bad Debt
Interactive XL, Inc. reserves the right to adjust commission payments for bad debt. The bad debt deducted may be based on the overall bad debt average and/or specific deductions on an account by account basis or a combination thereof.
If a representative is found to be targeting customers who knowingly have credit problems, that Independent Representative's status may be suspended and/or terminated. In addition, the Independent Representative may be held liable for any unpaid debts.
G. Customer Qualifications
CABs, commissions and the advancement to earned levels in the Compensation Plan are based on the acquisition of active, billing customers. Each service order must contain the name and/or Team ID Number of the Independent Representative that acquired the customer. Representatives are prohibited from entering the name or Team ID Number of another Independent Representative or signing in the name of another representative. Representatives are responsible for the validity of the orders of all customers that appear on their Personal Customer List. Therefore, representatives are encouraged to routinely review their customer lists to ensure that only customers that they have personally enrolled are appearing on the customer list. If a representative finds that a customer appears on their customer list that they have not personally enrolled, they must contact Representative Services immediately.
Establishing customer accounts for the purposes of qualifications when the customer does not intend to use the service or when the customer is not aware that such an account has been established is unethical and is subject to disciplinary action up to and including deactivation. Interactive XL, Inc. reserves the right to remove these customers from the representative’s position if unethical activities occurred and during any review.
Customers who cancel service with Interactive XL, Inc. and those who do not use the service for a period of months will no longer count as active customers for qualification purposes. This process is known as "purging." If a customer who is scheduled to be purged, or has been purged, begins to use the service again, the Independent Representative who acquired the customer will automatically receive credit for that customer.
A customer account cannot count toward qualifications for more than one position and cannot be moved from one Independent Representative to another unless that customer account has been purged. Existing Interactive XL, Inc. customers who also become and Interactive XL, Inc. Independent Representative may claim their own services from an existing Interactive XL, Inc. Independent Representative’s position 45 calendar days from the new representative’s start date. 
IX. Compliance
These Policies and Procedures were created as a guideline for Interactive XL, Inc. and all Independent Representatives and serve to protect the rights of both parties. These Policies and Procedures are intended to ensure proper functioning of daily business operations. Interactive XL, Inc. reserves the right to amend the Policies and Procedures from time to time as Interactive XL, Inc. deems necessary. Any Independent Representative who violates any provision of the Independent Representative Agreement, which includes all Policies and Procedures itemized herein, may be terminated by Interactive XL, Inc.. Termination cancels any and all rights, and will be effective upon verification of said violation(s) and notification of the offending Independent Representative by Interactive XL, Inc.. In the event a dispute arises between Interactive XL, Inc. and an Independent Representative as to their respective rights, duties and obligations under this agreement, or in the event of a claim of breach of this agreement by either party, such dispute shall be exclusively resolved through binding arbitration as described in the Independent Representative Agreement. Under no circumstance would an Independent Representative who is terminated for unethical activity be entitled to the refund of their original application fee or be allowed to transfer their Independent Representative position to another party.
X. Confidentiality and Noninterference, Nondisclosure of Proprietary Information
During the term of the relationship with Interactive XL, Inc., the Independent Representative may receive information or data constituting a trade secret or confidential information of Interactive XL, Inc. and/or its carrier/supplier/service provider(s) in which event, the Independent Representative shall treat such trade secret or confidential information as strictly confidential and wholly owned by Interactive XL, Inc., as applicable. No Independent Representative may, for any reason, nor in any manner, directly or indirectly use, sell, lend, lease, distribute, license, give, transfer, disclose, disseminate, reproduce or otherwise communicate any such item of information or data to any person or entity for any purpose other than as authorized by Interactive XL, Inc. in writing. The definition of "confidential information" shall mean proprietary and confidential data or information of Interactive XL, Inc. or its carrier/supplier/service provider(s) which is not publicly known or available to the competitors of Interactive XL, Inc. or its carrier/supplier/service provider(s). "Confidential information" also includes without limitation, information regarding Interactive XL, Inc. or its carrier/supplier/service provider(s), Independent Representatives, customers or prospective customers, marketing methods, business and technical plans, product information and pricing. The definition of "confidential information" includes "trade secrets" which shall mean that portion of confidential information which constitutes trade secrets as defined by applicable law and including, without limitation, confidential computer programs, software, designs, processes, procedures, formulas and improvements, whether copyrightable or not.
Independent Representatives must use their best efforts to preserve all confidential Information until it becomes generally available to the public or Interactive XL, Inc. agrees in writing that such information may be disclosed or is otherwise no longer deemed to be confidential.
During the term of the Independent Representative Agreement, representatives may not, directly or indirectly, sell or solicit online marketing and communication services, or Internet services offered by Interactive XL, Inc. through any person or entity other than that specifically designated or approved in writing by Interactive XL, Inc.. Independent Representatives shall not, during their relationship with Interactive XL, Inc. and for a period of one year thereafter, directly or indirectly, divert, entice, knowingly call upon, sell or solicit, take away or move any customer of Interactive XL, Inc. or its carrier/supplier/service provider(s), whether or not the Independent Representative originally procured or brought such customer to Interactive XL, Inc.’s carrier/supplier/service provider(s) (such activities are collectively referred to herein as "solicitation"). All customers solicited by Independent Representatives on behalf of Interactive XL, Inc. or its carrier/supplier/service provider(s) are deemed to be customers of Interactive XL, Inc. and not of its Independent Representatives. Independent Representatives understand that such prohibition of non-solicitation shall be strictly enforced and that Interactive XL, Inc. shall be a third party beneficiary of this prohibition as well as any proprietary and confidential information provided to Interactive XL, Inc. which in turn is received by the Independent Representative. Further, during the term of the Independent Representative Agreement and for a period of one year thereafter, Independent Representative may not enter into a direct marketing relationship with any carrier/supplier/service provider(s) of Interactive XL, Inc.. Violation of this covenant and condition will result in forfeiture of all Independent Representative rights, including all current and future commissions, bonuses and payments of any kind.
On a periodic basis, Interactive XL, Inc. will supply data processing information and reports to the Independent Representative, which will provide information to the Representative concerning the representative’s organization, product purchases and product mix. Independent Representatives agree that such information is proprietary and confidential to Interactive XL, Inc. and is transmitted to the representative in confidence. The representative agrees that he or she will not disclose such information, directly or indirectly, to any third party nor use the information to compete with Interactive XL, Inc. in any manner. The representative and Interactive XL, Inc. agree that, but for this agreement of confidentiality and nondisclosure, Interactive XL, Inc. would not provide the above confidential information to the representative.
XI. Privacy Policy

A. Personal Information
Interactive XL, Inc. is committed to protecting the privacy of our Independent Representatives’ and customers’ personal information.  “Personal Information” means any information about an identifiable individual, other than business contact information.  We protect personal information by maintaining strict physical, electronic, and procedural safeguards that meet or exceed applicable Federal laws and regulations. Unauthorized access to or disclosure of personal information, including account information, or personal identification number, is a violation of Interactive XL, Inc.’s Privacy Policy, and is strictly prohibited. 
(a) The Independent Representative acknowledges that, in the course of the performance of this Agreement, (s)he will be provided with and have access to Personal Information and that such Personal Information is confidential. The Independent Representative agrees that such Personal Information will be collected, used and disclosed only for the purposes for which it was collected and only in relation to the provision of Interactive XL, Inc.’s services or products or this Agreement, that (s)he will safeguard such Personal Information by appropriate organizational, physical and technological means ("Safeguard Obligations") and not, other than as required in relation to the provision of Interactive XL, Inc.’s services or products, disclose, transfer, sell, assign, publish or otherwise make available any Personal Information for his/her own use or the use of any other person or entity except where disclosure may be required to comply with a subpoena, warrant, or court order, or if requested by a government institution which has the lawful authority to obtain the Personal Information, or if otherwise required by law;
(b) Upon reasonable request, the Independent Representative shall provide Interactive XL, Inc. access to, and the right to inspect, any or all Personal Information collected, used or disclosed by the Independent Representative during the course of the Agreement;
(c) The Independent Representative shall, at the prior written request of Interactive XL, Inc., promptly return any Personal Information and all copies thereof in any form whatsoever under the power or control of the Independent Representative to Interactive XL, Inc., and delete the Personal Information from all retrieval systems and databases or destroy same as directed by Interactive XL, Inc. and furnish to Interactive XL, Inc. a certificate by an officer of the Independent Representative of such deletion or destruction;
(d) The Independent Representative agrees to co-operate with Interactive XL, Inc. in any regulatory investigation or in any internal investigation regarding any alleged privacy breach or complaint.
(e) In order to ensure the special integrity of Independent Representatives’ personal information, and to protect Independent Representatives positions from unauthorized access, Interactive XL, Inc. asks that all representatives adhere to the following procedures: 
·         Only new representatives shall complete and sign and Independent Representative Agreement, or complete the representative sign-up process on the Interactive XL, Inc. website at www.Interactive XL, Inc..com.
·         Only new representatives shall complete the online Independent Representative Agreement.
·         A representative’s upline or sponsor should not complete any agreement on behalf of the representative, or obtain account information, including position numbers and passwords.
·         Representative account information and passwords should not be accessed by, or provided to anyone but the Independent Representative whose name appears on the Independent Representative Agreement.
B. Indemnification
The Independent Representative agrees to defend, indemnify and hold Interactive XL, Inc. harmless from any claims and actions against Interactive XL, Inc. relating to the Independent Representative’s violation of any state or federal privacy acts relating to the collection, use or disclosure of Personal Information. The Independent Representative also agrees to defend, indemnify and hold Interactive XL, Inc. harmless from any claims and actions against Interactive XL, Inc. relating to any marketing or promotions developed for Interactive XL, Inc. by the Independent Representative, when the Independent Representative was indemnified by a third party which did not also indemnify Interactive XL, Inc..
C. Amendments
In order to sustain a viable marketing company, Interactive XL, Inc. specifically reserves the right to make any amendments or adjustments it deems necessary with respect to products and services offered, its Policies and Procedures, the marketing and Compensation Plan and/or pricing. Upon notification through Interactive XL, Inc.’s website, any such changes are incorporated as part of this agreement between Interactive XL, Inc. and its Independent Representatives.
Summary
We are offering a program that will prove to be financially beneficial for those with the motivation to achieve. It offers the freedom to design personal goals, an opportunity to develop long-term stability, and a relationship of respect with our company. The relationship between Interactive XL, Inc. and its Independent Representatives is that of a team, based on mutual trust, respect and integrity. By assisting our Independent Representatives in achieving their goals and dreams, Interactive XL, Inc. strives to demonstrate the true meaning of a team. This is our commitment to you.