Winalite International Europe Region

POLICIES AND PROCEDURES

Distributor Information

Section 1 - Introduction
1.1 Policies Incorporated into the Independent Distributor (ID) Agreement
These Policies and Procedures, in their present form and as amended from time to time at Winalite’s(hereinafter the “Company”) discretion, are incorporated into the Company ID Agreement. It is the responsibility of each ID to read, understand, adhere to, and ensure that he/she is aware of and operating under the most current version of these Policies and Procedures. The most current version of the Policies and Procedures will be posted on the company website for continuing review by each ID.

1.2 Purpose of Policies
In order to clearly define the relationship that exists between IDs and the Company, and to explicitly set a standard for acceptable business conduct, the Company has established the ID Application and Agreement, these Policies and Procedures, and the Company Compensation Plan (hereinafter collectively referred to as the "ID Agreement").More precisely, the Distributor Agreement sets forth the respective rights and responsibilities of Company and the Distributor in the sale of products to Distributors and their customers, and the activities relating to the enrolment and training of downline Distributors. In addition, to assist Distributors in building their businesses, to protect those businesses, and to safeguard the opportunities that the Company offers to everyone, the Distributor Agreement establishes certain limits to ensure that Distributors do not inadvertently step outside the bounds of permissible and proper conduct. Company Distributors are required to comply with all of the terms and conditions set forth in the Distributor Agreement, which the Company may amend from time to time, as well as all laws and regulations governing the Distributor’s conduct. The Company honors all laws and regulations governing good business practices and requires Company Distributors to do the same. It is very important that the Distributor read and understand these Policies and Procedures

1.3 Changes to the ID Application and Agreement, Policies and Procedures, or Company Compensation Plan. Because federal, state, and local laws, as well as the business environment, periodically change, the Company reserves the right to amend the terms and conditions of the ID Agreement and the Company prices, from time to time, at its discretion. By enrolment through the Online System or by signing and executing the Distributor Agreement, a Distributor agrees to abide by all amendments or modifications that the Company elects to make. Notification of amendments shall be published in official Company materials and posted on the Company website. Amendments shall be effective upon posting of the changes on the Company website or by message in the Back Office, which is available to all active Distributors or such other dates as the Company may announce.

1.4 Delays
Company shall not be responsible for delays and failures in performing its obligations when the Company cannot complete its obligations due to circumstances beyond the Company’s reasonable control. This includes, without limitation, strikes, labor difficulties, riot, war, fire, death, curtailment of a party’s source of product supply, or government decrees or orders.

1.4.1 Limitation Of Damages to the extent permitted by law, the Company and its affiliates, officers, directors, shareholders, employees, attorneys, accountants, servants and other representatives shall not be liable for, and the Distributor hereby releases the foregoing from, and waives any claim for loss of profit, incidental, special consequential or exemplary damages which may arise out of any claim whatsoever relating to the Company’s performance, non-performance, act or omission with respect to the business relationship or other matters between the Distributor and the Company whether arising from contract, tort or strict liability. Furthermore, it is agreed that any damage to the Distributor shall not exceed, and is hereby expressly limited to, the amount of unsold products and/or services, owned by the Distributor and bonuses owing.

1.4.2 Non-waiver Provision
No failure of the Company to exercise any power under these Policies and Procedures or to insist upon strict compliance by the Distributor with any obligation or provision herein, and no custom or practice of the parties at variance with these Policies and Procedures, shall constitute a waiver of the Company’s right to demand exact compliance with these Policies and Procedures. Only an authorised officer of the Company can effect a waiver in writing.

Section 2 - Becoming an Independent Distributor (ID)
2.1 Requirements to Become an Independent Distributor (ID).
To become a Winalite ID, each applicant must:
a) Be of the age of majority in his/her state or territory of residence
b) Select the Winalite membership level for which applicant desires to be enrolled and submit product payment for the applicable level, if product purchase is applicable to such level;
c) Review the Company Policies and Procedures; and
d) Submit a properly completed ID Application and Agreement enrollment form directly to the company.
The company reserves the right to reject any applications for new IDs or applications for reinstatement

2.2 Identification
Company requires IDs to provide their Social Security or National Taxpayer Identification Number before any commissions or bonuses are paid to the ID. The Company uses this number to identify IDs for tax purposes only.

2.3 New ID Registration
The new ID applicant must submit application materials to enroll and receive a Retail Sales Business Center (BC) user name and to receive an authorization for a new Independent Distributor business. The enrollee must provide the Company with all the necessary ID Application and Agreement information. Upon approval and submission of all applicable product payments, the new ID will have all the rights and privileges of a Company ID.

 2.4 ID Benefits
Once Company accepts an ID's Application and Agreement, the benefits of the Company Compensation Plan and the ID Agreement are available to the new ID. These benefits include the right to:
a) Retail Company products or services and profit from these sales;
b) Participate in the Company Compensation Plan (receive bonuses and commissions, if eligible);
c) Participate in any promotional and incentive contests and programs sponsored by Company for its IDs.

Section 3 - Operating a Company Independent Distributor Business
3.1 IDs must adhere to the terms of the Company Policies and Procedure as set forth herein and on the official Company website. IDs shall not offer the Company opportunity through any method of marketing that uses any non-company approved materials.
3.2 Advertising
3.2.1 In General
IDs shall safeguard and promote the reputation of Company and its products or services in conducting their businesses. ID marketing and promotion of Company, the Company opportunity, the Company Compensation Plan, and Company’s products or services shall be consistent with the public interest and must avoid all discourteous, deceptive, misleading, illegal, unethical or immoral conduct or practices. No Company IDs may produce individual sales, marketing, and support materials to promote their Company businesses. IDs may only use sales aids, marketing materials and support materials produced or approved by Company.

3.2.2 Trademarks and Copyrights
a) The Company name and any Company materials and Company website content are proprietary trade names, trademarks, and service marks of Company. As such, these marks are of great value to Company and are supplied to IDs for their use only in an expressly authorized manner. Use of the Company name on any item not produced by the company is prohibited except as follows:
ID’s Name
Winalite Europe Independent Distributor IDs may not record any Company function or event, or produce for sale any recorded company functions or events. IDs may not reproduce or copy any presentation or speech by any Company
spokesperson, representative, speaker, officer, or other ID. IDs may not reproduce for sale or for personal use any recording of company-produced audio or video tape presentations.

3.3 ID Claims and Representations
Income Claims IDs may not make illegal product health claims, illegal income projections or income claims when
presenting or discussing the Company opportunity, Company products or services, or Company Compensation Plan to a prospective ID or customer.

3.4 Unauthorized Recruiting of Company IDs Prohibited (Anti-Raiding Clause) Company IDs may participate in other direct selling or network marketing or multilevel marketing ventures (collectively, "multilevel marketing"), and ID’s may engage in selling activities related to non-Company products and services, if they desire to do so.

3.4.1 Downline Genealogy Reports
All Downline Genealogy Reports are confidential and constitute proprietary business trade secrets belonging to Company. Downline Genealogy Reports may be made available to IDs in strictest confidence for the sole purpose of assisting IDs in developing their Company businesses through their respective downline organizations. IDs should use their Downline Genealogy Reports to manage, motivate, and train their downline IDs. Directly or indirectly disclose any information contained in any Downline Genealogy Report to any third party; This particular policy will be strictly enforced in order to protect the rights of ID’s, both individually and collectively.

3.5 Corporations, LLCs and Trusts
A corporation, LLC or trust (collectively referred to in this section as an "Entity") may apply to be a Company ID by submitting its Certificate of Registration or trust documents (these documents are collectively referred to as the "Entity Documents") to Company, along with a properly completed ID Application and Agreement. An ID’s business may change its status under the same sponsor from an individual to an Entity, or from one type of Entity to another. To do so, the IDs must provide the Entity Documents and submit a properly completed Application to Company. Company reserves the right to approve or disapprove any ID Application and Agreement submitted by an Entity, as well as any ID Application and Agreement submitted by any current IDs for the formation of an Entity for tax, estate planning, and limited liability purposes.

3.6 Deceptive Practices
All Company IDs shall truthfully and fairly describe Company products, the Company opportunity,Company Compensation Plan, and Policies and Procedures in all discussions with potential IDs. This obligation of fair and complete disclosure shall include, without limitation, the following:
An ID shall make clear that the Company Compensation Plan is based on sales of Company products or services, and that Company IDs will not be successful merely by sponsoring other IDs without regard to sales, and that no compensation is available from mere sponsorship of other IDs.

3.7 Independent Contractor Status
IDs are independent contractors and are not purchasers of a franchise or business opportunity. The agreement between Company and its IDs does not create an employer/employee relationship, agency, partnership, or joint venture between the Company and the ID. All IDs are responsible for paying their own taxes, including but not limited to income and employment taxes. IDs will not be treated as an employee.

3.8 Lead Assignment Policy
The Distributor should carefully consider whether to organize a large lead generation campaign or casually collect leads one at a time. If the Distributor mails or distributes literature or product samples, he/she should always include his/her name, address and/or telephone number on the materials or samples. From time to time, the Company may receive inquiries from the public about its products and opportunity. When this occurs, the Company tries to ascertain whether the contact with the Company began with the efforts of an existing Distributor. If so, the inquiring party will be referred back to that Distributor. Leads involving people who have simply heard of the Company without any discoverable contact by an existing Distributor will be assigned, on a rotating basis, to an active Qualified Diamond Distributor or above, who has demonstrated leadership and training capabilities and who lives in the same geographical area. However, the Company may use its sole discretion in making such assignments. Company will give strong consideration to those IDs exhibiting field leadership as evidenced in conducting business meetings and training workshops.

3.9 Repackaging and Relabeling Prohibited
IDs may not relabel or alter the labels on any Company products, information, materials, or programs in any way. IDsmay not repackage any Company products. Company products must be sold in their original packaging only. Such re-labeling or repackaging would violate governing laws, which could result in severe criminal penalties.

3.10 Sale, Transfer, or Assignment of an ID’s Independent Distributor Business
No ID shall (by operation of law or otherwise) sell, transfer, or assign (collectively, "transfer") any of his/her rights in a Company ID, or delegate his/her performance as a Company ID, without the prior written consent of Company. Any unauthorized transfer will not be recognized by Company. Company reserves the right to review all terms of sale and insist upon additional terms and conditions prior to the approval of any proposed sale. If any sale will be allowed by the Company, the buyer must fulfill the following conditions:
-become a qualified Company ID .
-The buyer must complete an ID Application and Agreement and possess reasonable ability to satisfactorily
  perform the obligations of a Company ID.
-The purchaser must agree to assume the obligations and position of the selling ID.

3.11 Transfer of Sponsorship must be permitted by Company.

3.11.1 Conflicting Enrollments
Every prospective ID has the ultimate right to choose his/her own Sponsor. As a general rule, the first ID
who does meaningful work with a prospective ID is considered to have first claim to sponsorship. If there is
any question concerning the sponsorship of an ID, the final decision will be made by Company.

3.11.2 Cross-line Raiding
Cross-line raiding is strictly prohibited. "Cross-line raiding" is defined as the enrollment or solicitation of an individual or Entity that already has an ID Agreement on file with Company, or who has had such an agreement within the preceding six (6) calendar months within a different line of sponsorship.

3.11.3 Permissible Methods of Transferring Lines of Sponsorship
To protect the integrity of all Downline Organizations and safeguard the hard work of all ID’s, Company prohibits changes in sponsorship except in the following cases:

a) Where an ID has fraudulently induced a new ID to enroll in Company or has otherwise unethically sponsored a new ID.
b)An ID may voluntarily cancel his/her ID Independent Distributor business in writing and reapply after twelve (12) full calendar months for a new ID Independent Distributor business under another line of sponsorship.

c)Where an ID has been "inactive" (i.e., no customer sales of Company Memberships, no sales of Company
products, no earnings, no sponsoring, no participation in any other form of ID activity or operation of any other Company ID business) for twelve (12) full calendar months immediately preceding his/her written request to transferfrom one line of sponsorship to another, the ID may voluntarily cancel his/her ID Independent Distributor business in writing and immediately reapply for a new ID’s Independent Distributor business under another line of sponsorship.
d)Where the ID is yet pending longer than 4 weeks, the order of products will be official deleted in the system

3.11.4 Succession
Upon the death or incapacitation of a ID, his/her rights to commissions, bonuses, and Downline Organization, together with all ID responsibilities, shall pass to his/her successors in interest upon the receipt of a written application by Company, compliance with these Policies and Procedures, and approval by Company appropriate legal preparation must be completed to ensure that the transfer meets Company’ requirements and applicable laws. Accordingly, an ID should consult an attorney to assist his or her in the preparation of a will or trust. Whenever a Company ID’s Independent Distributor business is transferred by a will, other testamentary process, or trust, the successor acquires the right to collect all bonuses and commissions of the deceased ID’s Downline Organization, provided the minimum qualifications are met. The successor(s) must:
a) Execute an ID Agreement;
b) Comply with these Policies and Procedures; and
c) Meet all of the qualifications for the deceased ID under the Company Compensation Plan. The successor(s) are obligated to conduct the business in accordance with all of Company’ marketing Policies and Procedures.

Section 4 - Sales Requirements

4.1 Retail Sales
The Company Compensation Plan is based upon the sale of Company products to end consumers. IDs must fulfill specified personal and Downline Organization retail sales requirements (as well as meet other responsibilities set forth in these Policies and Procedures) in order to be eligible for bonuses, commissions, and advancement to higher levels of achievement. The sales requirements are listed in the Company Compensation Plan. Any ID who fails to maintain the activity requirement for their respective membership level during a six (6) month period will forfeit any accumulated carry over PV. Any ID who fails to maintain the activity requirement for their respective membership level during a twelve (12) month period will be deemed inactive by the Company, their membership will be involuntarily terminated, and such ID will be required to wait for twelve (12) months before re-applying as a new ID. However, due to varying state and provincial laws, sales tax should be charged and paid to the Government by IDs as may be required by their local laws and ordinances if such Sales Tax is not already collected when purchased from Company.

Section 5 - Bonuses and Commissions

5.1 Bonus and Commission Cycles
IDs receive bonuses and commissions based on the actual sales of products to end consumers. Company
pays commissions each week for all commission qualified sales made 4 weeks previous. An ID must review
his/her commissions and report any errors or discrepancies to Company within 3 days from the date of the
commission check. A computer service fee will be deducted from the Distributor’s commission payment
once a calendar year. To be eligible for bonuses, the Distributor must remain in good standing with the Company, comply with the Terms and Conditions of the Distributorship Agreement and the Policies
and Procedures and maintain his/her active status.

5.2 Disputes Between Independent Distributors (IDs)
5.2.1 Grievances and Complaints
When an ID has a grievance or complaint with another ID regarding any practice or conduct in relationship to their respective Company businesses, the complaining ID should first discuss the problem with the other ID. If this does not resolve the problem, the complaining ID should report the problem to his/her upline to resolve the issue at the sales organization level. If the matter cannot be resolved, it must be reported in writing to the Company Customer Services Department. By signing the ID Application Agreement, all IDs consent to jurisdiction within these two forums.

5.3 Disciplinary Actions
All of the Policies in the ID Agreement are material terms to the agreement between Company and each ID. Violation of any of the terms and conditions of the ID Agreement, or any illegal, fraudulent, deceptive, or unethical business conduct by a ID may result, at Company’ discretion, in one or more of the following corrective measures:
a) Issuance of a written warning or admonition;
b)Loss of rights to one or more bonus and commission checks or electronic payments;
c) Suspension of the individual's ID Agreement for one or more months or other time frames;
d) Cancellation of the individual's ID Agreement or of advancement or recognition awards;

Section 6 - Ordering
6.1 Ordering Methods
All IDs and Retail customers orders must be placed through an existing Company ID Online Website Platform. The Distributor must not manipulate enrolments of new applicants and purchases of products. All Distributor Applications have to be submitted to the Company prior to confirmation of the distributorship. Payment methods are by Credit Card, Money Order, Cashier’s Check, or personal check for initial ID activation and initial product order. Other payment methods may be accepted for auto ship and future product orders.

6.2 Purchasing Company Products
Each ID must purchase his/her products directly from Company in order to receive the sales volume credits associated with that purchase.

6.3  Refund Policy & Cooling off Period
In the EU IDs have the right to cancel your online purchase within seven working days per email: office@winalite-europe.com or per fax No. +43-1-890489415. This seven-day “cooling off” period begins on the day when you receive your purchase. You can choose to cancel your order for reasons within this timeframe. The company gives you a refund within 30 days.

Section 7 – ID Account Information Updates
7.1 Change of Address or Telephone Number
In order to ensure timely delivery of products, support materials, and commission checks, it is critically important that Company’ files be current. Street addresses are required for shipping, since couriers cannot deliver to a post office box. In order that Company can guarantee proper delivery, three days advance notice must be provided to Company on all changes.

7.2 Changes to the ID’s Independent Distributor Business
Each ID must immediately update their own personal account information section on their Company Online Website of all changes to the information contained on the ID’s Application and Agreement.

7.2.1 Commission Statements
Commission Statements are available for all active IDs earning a commission or bonus payment and are available to view within the IDs Online Website platform.

7.3 Resolving Problems
IDs should refer their questions regarding orders, shipments, commissions and bonuses, and sales and Company Compensation Plan issues by telephone or mail to Company Customer Servicess Department.
Mailing Address: office@winalite-europe.com

7.3.1 Written Cancellation
An ID may cancel his/her Agreement with Company at any time and for any reason by providing written notice to Company indicating his/her intent to discontinue his/her. The written notice must include the ID’s signature, printed name, address, and other appropriate identification.

7.4 Effects of Cancellation
Following an ID's voluntary or involuntary cancellation, such former ID shall have no right, title, claim, or interest to the Downline Organization which he/she operated or any bonus and/or commission from the sales generated by the organization. An ID who has voluntarily canceled will receive commissions and bonuses only for the last full calendar week prior to his/her cancellation. An ID whose Agreement is involuntarily canceled will receive commissions and bonuses only for the last full calendar week prior to cancellation.

 

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