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Southern Marine Supply 
Rewards Program

Terms and Conditions

1. Program Overview

  • Name: Southern Marine Supply (SMS) Rewards Program (the “Program”).
  • Operator: Southern Marine Supply, Inc., a Florida company (“SMS”).
  • Purpose: Business to Business (B2B) loyalty program for SMS’s wholesale customers and authorized Spot Zero dealers.
  • Reward type: Curated travel/experience rewards, redeemed from a closed SMS-managed catalog.
  • Point tracking start: January 1, 2026.
  • First redemption window opens: January 1, 2027.

2. Eligibility

  • Eligible classes: (a) SMS wholesale customers; (b) Authorized Spot Zero dealers.
  • Activity requirement: Dealer must have at least $5,000 in qualifying spend over the trailing 6 months.
  • Credit standing requirement: Dealer must be in good credit standing, determined by SMS in its sole discretion. SMS will exercise this discretion in good faith and may publish internal criteria separately.
  • Enrollment mechanism: Automatic. No signup form, no opt-in. Eligible dealers are auto-enrolled by SMS’s records.
  • W-9 capture: Required from a dealer before SMS will process that dealer’s first redemption. W-9 not required at enrollment.

3. Earning Mechanics

  • Earn rate: 1 point per $1 of qualifying net spend.
  • “Net spend” = gross product spend less returns, credits, RMAs, and any adjustments.
  • Qualifying spend: Product purchases only. 

Excludes:

  • Sales tax
  • Shipping/freight
  • Processing fees
  • Any non-product line items on an invoice
  • Returns / clawback mechanics: When a product return processes after points have been earned (or after those points have been redeemed), SMS reserves the right to claw back points, invoice the dealer for any shortfall, or absorb the loss — at SMS’s sole discretion on a case-by-case basis.

4. Redemption Mechanics

  • Pricing model: Fixed point cost per catalog item, with explicit reservation of pricing flexibility. Each item has a published point cost and a separately disclosed dollar fair market value (FMV). Point cost per dollar of FMV varies by item.
    • The point cost displayed in the catalog is NOT a guarantee of the point cost at the time of redemption.
    • The FMV stated in the catalog at the time of redemption (NOT at the time points were earned) is the value used for tax/1099 purposes.
    • SMS reserves the right to adjust point costs and FMVs at any time to reflect changes in underlying supplier pricing, market conditions, or for any other reason in SMS’s sole discretion.
    • SMS makes no representation that any specific catalog item, point cost, or FMV will be available at the time a dealer chooses to redeem.
  • Partial redemption: Not supported. Dealer must have enough points to cover the full point cost of the chosen item.
  • Minimum redemption: Implicit; defined by the lowest-priced catalog item.
  • Catalog flexibility: SMS may add, remove, modify, reprice, or substitute items at any time without notice. Point cost, FMV, party-size composition, and inclusion lists for any item may change.
  • Third-party suppliers and booker: Travel fulfillment is performed by third parties. SMS curates the catalog but does not operate trips, cruises, hotels, airlines. Travel bookings are administered by a third-party booking partner. 
  • Booking lead time / availability / blackouts: Governed entirely by the third-party booker’s terms. SMS imposes no separate minimum lead time or blackout policy; dealers are bound by the booker’s published rules at the time of booking.
  • Cancellation / no-show: Governed entirely by the third-party booker’s terms. Any refund, credit, or rescheduling is handled by the booker per its terms. SMS does not restore, refund, or reissue points for any dealer cancellation, no-show, change, or trip disruption.
  • Substitution rights: SMS may substitute a comparable item or equivalent point value if a catalog item becomes unavailable. SMS is not obligated to provide an exact replacement.

5. Non-Transferability

  • No transfer permitted by: gift, sale, assignment, inheritance, succession, court order, divorce, business sale, account merging, or operation of law unless otherwise approved by Southern Marine Supply.
  • Points are tied to the dealer account and are non-transferable. No exceptions.
  • Points cannot be combined across separate dealer accounts.

6. Forfeiture & Account Status

  • Dormancy: Account considered dormant after 3 months with no qualifying purchase. Dormancy results in forfeiture of the entire points balance. Only qualifying purchases reset the dormancy clock — redemption activity, portal logins, and statement views do NOT reset the clock.
  • Account closure / cessation: If a dealer ceases operations, closes the account, sells the business, or otherwise ends the SMS relationship, the points balance is subject to forfeiture at SMS’s sole discretion.
  • Credit hold / credit-standing removal: If a dealer is placed on credit hold or removed from the Program for failure to maintain good credit standing, treatment of the existing points balance (suspension, preservation, partial forfeiture, or full forfeiture) is at SMS’s sole discretion on a case-by-case basis. SMS will exercise this discretion in good faith.
  • Fraud / abuse: SMS reserves the right to suspend or terminate any account and forfeit any balance upon evidence of fraud, abuse, misrepresentation, or violation of these T&Cs.

7. No Cash Value

  • Points have no cash value.
  • Points cannot be applied to outstanding invoices, balances, credits, or any other obligation owed to SMS.
  • Points are not refundable in cash under any circumstance, including program termination.

8. Tax Responsibility

  • 1099 threshold: SMS will issue IRS Form 1099-MISC (or 1099-NEC, as applicable) when a dealer’s redeemed FMV exceeds the IRS calendar-year threshold (currently $600/year).
  • FMV measurement: Fair market value of a redeemed item is the FMV stated in the catalog at the time of redemption.
  • Entity treatment: Standard IRS rules. Sole proprietors and single-member LLCs taxed as disregarded entities will receive 1099s; C-corps and S-corps generally will not (W-9 controls).
  • Dealer responsibility: Each dealer is solely responsible for any tax consequences arising from participation in or redemption of points under the Program. SMS does not provide tax advice.

9. Communications & Disputes

  • Monthly statements: SMS will provide a monthly emailed statement showing points balance and recent activity. Statement is informational; SMS’s records are the authoritative source.
  • Disputes about balance/activity: Dealer may contact rewards@smsupplyinc.com. SMS will review in good faith. Final balance determination rests with SMS in its sole discretion.
  • Notice mechanism for program changes: Program changes are posted at smsupplyinc.com/loyalty-rewards/ and are effective immediately upon posting. Email notification to enrolled dealers will be provided as a courtesy where practical, but is not a condition of effectiveness.

10. SMS’s Reserved Rights

SMS reserves the right, in its sole discretion and at any time, with or without notice, and with retroactive effect where permitted by law, to:

  • Modify, update, suspend, or discontinue the Program in whole or in part.
  • Add, remove, modify, or reprice any catalog item.
  • Modify the earn rate, point cost, FMV designations, or any other economic term.
  • Modify or redefine eligibility, dormancy, forfeiture, or credit standing criteria.
  • Issue, deny, or reverse any redemption.
  • Audit any account and reverse any points credited in error, in dispute, or under suspicious circumstances.
  • Terminate any dealer’s participation in the Program.

11. Pre-Launch Period (Jan 2026 – Dec 31, 2026)

  • Points earned during the period from program launch through December 31, 2026 carry NO vested rights.
  • All Program rules — including earn rate, eligibility criteria, point costs, catalog composition, redemption mechanics, and forfeiture rules — may be modified and retroactively enforced at any time.
  • Dealers are explicitly notified that points accrued in this period are provisional and subject to the rules in effect on the first redemption window opening date.

12. Disclaimers & Limitation of Liability (Program-Specific)

  • SMS makes no warranty, express or implied, regarding the Program, the catalog, or any third-party supplier’s performance.
  • SMS is not liable for third-party supplier failure, vendor cancellation, travel disruption, delay, injury, illness, property damage, or any consequential or incidental loss arising from Program participation or redemption.
  • SMS does not provide travel insurance; dealers are advised to obtain their own.
  • Dealers are solely responsible for: passport, visa, vaccination, identity documentation, and health/fitness for travel.
  • All travel is subject to the third-party supplier’s and third-party booker’s terms, conditions, and availability.

13. Governing Law & Disputes

  • Governing law: Florida (consistent with SMS’s master T&Cs).
  • Dispute resolution: Follows SMS’s master T&Cs (arbitration / venue / class action waiver as set out there).
  • Class action waiver (standalone): In addition to the cross-reference to the master T&Cs, the Program T&Cs will include a standalone class action waiver providing that any dispute arising under or relating to the Program must be brought on an individual basis and not as part of any class, collective, or representative action. Dealer’s participation in the Program constitutes acceptance of this waiver.