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The Nigerian Society of Engineers

ENDORSEMENT POLICY

The Nigerian Society of Engineers Endorsement Seal/Logo is awarded to products that have been developed for use by engineers in design, construction, maintenance or repairs of engineering systems after thorough testing and evaluation according to established criteria, on the recommendations of the Product Endorsement Committee and on approval by the Council.

The Nigerian Society of Engineers (NSE) may enter into endorsements and similar arrangements with manufacturers of products and providers of engineering services according to the following policy:

DEFINITON OF ENDORSEMENT

Official endorsement of a product, event or service provided within or outside of the Nigerian Society of Engineers activities means an arrangement in which NSE’s name and/or logo are attached as an act of support only. Written permission will be given by President of NSE upon approval by the Council.

THE POLICY

1. All endorsements and similar relationships shall be approved by the Council and signed by the President of the Society or his designated EXCO Member.

2. The product or service in question shall be designed to benefit the members in the conduct of their professional business.

3. Every relationship should include a benefit to NSE. This benefit will be disclosed to the membership.

4. There must be a written agreement with the product manufacturer or service provider.

5. All arrangements shall be reviewed by NSE’s legal department to ensure that the arrangement does not expose NSE to liability, endanger the reputation of NSE or result in any other unintended consequences – liability, tax or otherwise.

6. All advertising and promotion by the product manufacturer must be approved in advance by NSE’s National Executive Committee (NEC).

7. Every product or service must be reviewed fairly and objectively by the NSE Product Endorsement Committee who shall submit to the NEC its recommendations that reflect valid, demonstrable and reasonable bases upon which the recommendations were made.

8. The product manufacturer or service provider must agree to indemnify and exempt NSE in the event of any liability associated with endorsement by NSE.

9. Endorsement by NSE shall not be deemed a guarantee, warrantee, or other assurance of quality, safety, or fitness for use.

10. Endorsements by NSE shall never suggest or require the exclusive use of an endorsed product or service.

11. All organizations and/or individuals who enter an Endorsement agreement with NSE shall, in writing, agree to adhere to NSE’s Code of Ethics, Codes of Practice, and National and International Standards applicable to the engineering product.

12. All endorsements shall avoid the appearance of or create a situation where there is a conflict of interest.

13. All endorsements shall not influence NSE programs or policies, conflict with policies or goals, or affect the objectivity of NSE Council members, members or staff.

ENDORSEMENT GUIDELINES

1. Due Diligence/Reasonable Care: It is essential for NSE to exercise due diligence and reasonable care in selecting product manufacturers and in executing endorsements. This includes adequate and properly documented inquiry into the company’s competence (e.g. by checking references) and financial soundness, the product’s quality and efficacy and the company’s claims about the product. In addition, the substantive accuracy of all information provided by the company shall be ensured.
2. Disclaimers: A disclaimer will be included in each agreement to explain clearly and accurately NSE’s limited role with respect to particular product(s). Disclaimers should be explicitly and unambiguously expressed and clarified that NSE is not in any way guaranteeing the product manufacturer’s products/services.
3. Contractual Limitations: NSE must always enter into a written contract with any product manufacturer whose product it is endorsing. The terms of the agreement should be drafted to limit the potential liability of NSE and should be reviewed by NSE’s legal counsel. The following will be included:

a. Limitation of Liability: A standard limitation of liability clause must be used to waive any and all of NSE’s liability for damages, including consequential damages that may arise as a result of the agreement.

b. Indemnification: The product manufacturer must agree to indemnify and exempt NSE from any and all claims (including legal defence costs) that may arise from the performance of its duties under the agreement.

c. Insurance: The product manufacturer should be required to maintain insurance in amounts adequate to cover potential liability (including legal defence costs) from its provision of products/services. In addition, the product manufacturer will be required to name NSE as an additional insured on its insurance policy.

d. Disclaimers: The product manufacturer will be required to place with its product or service (as part of any endorsement statement or advertisement) disclaimers limiting the liability of NSE.

e. NSE Name and Logo: The product manufacturer must agree to the provisions of a limited license regarding the use of NSE’s name and trademark and agree not to use NSE’s name or trademark without previous written approval from NSE. In connection with our authority, NSE shall retain the right to give prior approval to all marketing materials specific to products and services to be endorsed by NSE.

f. No Certification: The agreement will specify that NSE does not approve, certify or guarantee any product provided by the product manufacturer.

g. Warranty: The product manufacturer must warrant that any products/services using NSE’s name or trademark are of professional quality and that the due diligence and reasonable care are employed by the product manufacturer in the provision of such products/services.

h. Prohibited Language: The agreement will require that in all marketing materials, on the product/service itself and in any other printed materials, pertaining to the product/service, the product manufacturer shall never refer to itself as NSE’s agent or refer to the relationship between the product manufacturer and NSE as a joint venture or partnership.

i. Product manufacturer’s Contracts with Purchasers/Users: As a condition of a grant of the permission (to use NSE’s name and trademark) to a product manufacturer, the product manufacturer must be required to include provisions similar to the above in its contractual or other sales documents with the purchasers or users of its products.

j. Evaluation: Periodic review by NSE of the product manufacturer’s products/services and the product manufacturer’s conformance with the terms of the contract will be scheduled. Furthermore, the parties shall be permitted to amend or modify the agreement to conform to changing needs. Finally, the agreement will contain a renewal/extension provision, providing NSE with the ability to terminate the agreement with adequate notice.

4. Objective Criteria: NSE will ensure that endorsement decisions are based on objective reasonable criteria that are applied in such a manner (e.g. a study of competing products/services by an objective, expert committee) that all potential product manufacturers are considered, and that the basis for endorsement decisions is well documented.
5. Non-member Access: NSE will ensure non-member access to endorsed products. In general, non-members must be encouraged access to endorsed products.
6. Member Manufacturer’s Agent: Where NSE Member offered to be agent to a manufacturer /service provider special discount shall be provided to encourage the member to market such product/service.

SELECTION CRITERIA

1. The product under consideration must fit within the scope of NSE’s mission-related products that are appropriate for use in programs.

2. The company or organization whose products(s) is (are) under consideration for endorsement must be upstanding and must reflect positively on NSE and its mission.

3. Products and product claims must be tested and evaluated by the NSE Product Endorsement Committee.

4. Selected members of the endorsement committee will visit the factory/organization whose product is under consideration for endorsement.

5. The selected members on visitation will certify that the Safety of workers are ensured, especially Nigeria workers, NSE and COREN registered personnel are treated in accordance with best international standards.

6. Supervision of laboratory/factory, test run of the product from time to time and random sampling of the raw materials for analysis if applicable will be based on International Standard.

7. For quality control there shall be a regular visit and supervision by selected members of the committee and they will be required to write a report to Council the President and EXCO from time to time

8. The NSE Product Endorsement Committee will determine the time necessary to evaluate these products, prior to the start of evaluation process.

9. Product Manufacturer shall pay a Commitment fee in the amount of Five Hundred Thousand Naira (N500,000.00). This fee is not transferrable and is non-refundable.

10. The company or organization whose product(s) is (are) under consideration for endorsement must submit a completed and properly executed agreement and an appropriate number of any supporting materials to NSE’s Product Endorsement Committee for review and approval by the Council; and, if applicable, must agree to fund the technical testing of the product and reporting by a special team of expert to conduct such testing either locally or in another country to be determined by NSE.

RECOMMENDED PROCEDURES FOR ENDORSEMENTS

1. Requestor Submits Proposal/Request: Requestor submits a proposal/request for an Endorsement by email or mail to the NSE Executive Secretary. Requests must be in writing and must provide specific information regarding the programs or activities, the reasons for seeking NSE endorsement and adhere to the approved NSE Endorsement Policy and Criteria. The request should be completed using the form provided. Endorsement requests may be sent via electronic format to provide an opportunity for efficient review prior to the event.

2. The Proposal/Request is reviewed: The Product Endorsement Committee secretary reviews the Request for Endorsement to ensure that all the contact information is correct and that the application is complete. The Request for Endorsement is then forwarded to the Product Endorsement Committee. Product Endorsement Committee shall apply the objectives and criteria set forth above in making a recommendation regarding the proposed Endorsement to the Executive Committee of NSE. Product Endorsement Committee shall make recommendations which explain how the proposed endorsement meets the Criteria described above, benefit of the endorsement to NSE and provide commentary on the proposed endorsement’s compliance with NSE’s Endorsement Policy and Guidelines.

3. Approval process of endorsement: Upon presentation of the recommendation made by the Product Endorsement Committee, the Council may approve or decline the endorsement by a vote which is in compliance with NSE’s procedures.

4. Communication of Decision: The Executive Secretary of NSE communicates the decision to the requestor via electronic mail or by courier.

5. Agreement Reduced to Writing: The Executive Secretary shall work with NSE’s legal department and the accountant, who works with the requestor’s representatives to prepare and finalize a written agreement that is in substantial compliance with the NSE Endorsement Policy and Guidelines. Any material changes to the product/service/event to be endorsed, or to the nature of the endorsement as approved, resulting during this process require a resubmission to the Council for approval.

REMUNERATION TO NSE DURING ENDORSEMENT PERIOD

1. Commitment fee in the amount of Five Hundred Thousand Naira (N500,000.00)
2. Three Year Endorsement fee is Three Million Naira (N3,000,000.00), payable when endorsement is awarded. The Commitment fee is not transferrable, non-refundable and will not be applied towards the Three Year Endorsement fee of the Three Million Naira (N3,000,000.00).
3. Product Manufacturer must purchase four full-page colour advertisements featuring the Endorsed Product in the “The Engineer” per year, or place equivalent advertising.
4. Interested NSE members who wish to serve as dealers of the endorsed product shall be given 50% rebate on deposits required by the Product Manufacturer and at least 10% on wholesale prices of the endorsed product.
5. On the recommendations, the product manufacturer shall engage the services of two engineering consultant, who are “Subject Matter Experts” on the product to be endorsed by NSE. The two consultants will be the compliance auditors on the endorsed product.

REMUNERATION TO PRODUCT MANUFACTURER DURING ENDORSEMENT PERIOD

On the awarding of the NSE Product Endorsement, the Product Manufacturer will be granted the following:
1. NSE Endorsement Logo is available for use on endorsed product packaging, and in product advertisements. NSE Endorsement Logo must be removed from store shelves and from advertising copy within one month of the end of the endorsement term or renewal thereof.
2. Product Manufacturer will be granted 50% discount as Gold Corporate Partner status during the term of the endorsement at the Annual General Meetings of the NSE during the endorsement period.