You are on page 1of 38

JEUNESSE GLOBAL

EUROPEAN GENERIC POLICIES AND PROCEDURES

Table of Contents
SECTION 1 INTRODUCTION ................................................................................................................... 6
1.1

Distributor Agreement ............................................................................................................. 6

1.2

Purpose of Policies ................................................................................................................... 6

1.3

Changes to the Agreement ...................................................................................................... 6

1.4

Delays ....................................................................................................................................... 7

1.5

Policies and Provisions Severable ............................................................................................ 7

1.6

Waiver ...................................................................................................................................... 7

SECTION 2 BECOMING A DISTRIBUTOR ................................................................................................ 7


2.1

Requirements to Become a Distributor ................................................................................... 7

2.2

New Distributor Enrolment ...................................................................................................... 8

2.2.1

Online Sign-up .......................................................................................................................... 8

2.3

Distributor Benefits .................................................................................................................. 8

2.4

Renewal of Your Jeunesse Business ......................................................................................... 9

SECTION 3 OPERATING YOUR JEUNESSE BUSINESS .............................................................................. 9


3.1

Adherence to the Jeunesse Financial Rewards Plan ................................................................ 9

3.2

Advertising and Promotional Tools ........................................................................................ 10

3.2.1

General ................................................................................................................................... 10

3.2.2

Telemarketing, Unsolicited Faxes and SMS Message ............................................................ 11

3.2.4

Distributor Websites .............................................................................................................. 11

3.2.5

Domain Names and Email Addresses..................................................................................... 11

3.2.6

Trademarks and Copyrights ................................................................................................... 12

3.2.7

Media and Media Inquiries .................................................................................................... 12

3.2.8

Spamming .............................................................................................................................. 12

3.3

Bonus Buying Prohibited ........................................................................................................ 13

3.4

Business Entities..................................................................................................................... 13
1

3.5

Changes to a Jeunesse Business ............................................................................................ 13

3.5.1

General ................................................................................................................................... 13

3.5.2

Addition of Co-Applicants ...................................................................................................... 13

3.5.3

Change of Sponsor ................................................................................................................. 14

3.5.4

Termination and Re-application ............................................................................................ 14

3.6

Unauthorised Claims and Actions .......................................................................................... 14

3.6.1

Indemnification ...................................................................................................................... 14

3.6.2

Product Claims ....................................................................................................................... 14

3.6.3

Income Claims ........................................................................................................................ 15

3.7

Commercial Outlets and Sales ............................................................................................... 15

3.7.1

Commercial ............................................................................................................................ 15

3.7.2

Commercial Sales ................................................................................................................... 16

3.7.3

Trade Shows, Exhibitions, Expositions and Other Sales Forums............................................ 16

3.8

Conflicts of Interest ................................................................................................................ 16

3.8.1

Non-solicitation ...................................................................................................................... 16

3.8.2

Downline Activity (Genealogy) Reports ................................................................................. 17

3.9

Targeting Other Direct Sellers ................................................................................................ 17

3.10

Cross Sponsoring .................................................................................................................... 18

3.11

Errors or Questions ................................................................................................................ 18

3.12

Excess Inventory Purchases Prohibited ................................................................................. 18

3.13

Governmental Approval or Endorsement.............................................................................. 19

3.14

Holding Applications or Orders .............................................................................................. 19

3.15

Identification .......................................................................................................................... 19

3.16

Taxation.................................................................................................................................. 19

3.17

Independent Contractor Status ............................................................................................. 20

3.18

Insurance ................................................................................................................................ 20

3.18.1

Business Pursuits Coverage.................................................................................................... 20

3.18.2

Product Liability Coverage ..................................................................................................... 20

3.19

International Marketing E-commerce................................................................................. 20

3.20

Adherence to Laws and Codes of Conduct ............................................................................ 21

3.20.1

Compliance with Laws............................................................................................................ 21

3.21

Minors .................................................................................................................................... 21

3.22

One Jeunesse Business per Distributor and Per Household .................................................. 21

3.22.1

Actions of Household Members or Affiliated Individuals ...................................................... 21

3.23

Re-packaging and Re-labelling Prohibited ............................................................................. 22

3.24

Requests for Records ............................................................................................................. 22

3.26

Sale, Transfer or Assignment of Jeunesse Business ............................................................... 22

3.27

Separation of a Jeunesse Business ......................................................................................... 23

3.28

Sponsoring ............................................................................................................................. 23

3.29

Stacking .................................................................................................................................. 23

3.30

Succession .............................................................................................................................. 24

3.30.1

Transfer upon Death of a Distributor..................................................................................... 24

3.30.2

Transfer upon Incapacitation of a Distributor ....................................................................... 24

SECTION 4 RESPONSIBILITIES OF DISTRIBUTORS ................................................................................ 24


4.1

Generally ................................................................................................................................ 24

4.2

Change of Address or Telephone ........................................................................................... 25

4.3

Continuing Development Obligations .................................................................................... 25

4.3.1

Ongoing Training .................................................................................................................... 25

4.3.2

Increased Training Responsibilities ........................................................................................ 25

4.3.3

Ongoing Sales Responsibilities ............................................................................................... 26

4.4

Non-disparagement ............................................................................................................... 26

4.5

Providing Documentation to Applicants ................................................................................ 26

4.6

Reporting Policy Violations .................................................................................................... 26

SECTION 5 SALES REQUIREMENTS ...................................................................................................... 26

5.1

Product Sales.......................................................................................................................... 26

5.2

No Price or Territory Restrictions .......................................................................................... 27

5.3

Sales Receipts ......................................................................................................................... 27

SECTION 6 BONUSES AND COMMISSIONS .......................................................................................... 27


6.1

Bonus and Commission Qualifications ................................................................................... 27

6.2

Adjustment to Bonuses and Commissions............................................................................. 27

6.2.1

Adjustments for Returned Products ...................................................................................... 27

6.2.2

Other Deductions ................................................................................................................... 27

6.3

Unclaimed Commissions and Credits ..................................................................................... 28

6.4

Reports ................................................................................................................................... 28

SECTION 7 PRODUCT GUARANTEES, RETURNS AND INVENTORY REPURCHASE ................................ 29


7.1

Product Guarantee................................................................................................................. 29

7.1.1

Cancellation of Consumer Contracts ..................................................................................... 29

7.1.2

Returns by Retail, Online and Preferred Customers .............................................................. 29

7.1.3

Returns by Distributors (Products Purchased for Personal Consumption)............................ 30

7.1.4

Returns by Distributors (Products Returned by Personal Retail Customers) ........................ 30

7.2

Return of Inventory and Sales Aids by Distributors on Termination ..................................... 30

7.3

Procedures for All Returns ..................................................................................................... 31

SECTION 8 DISPUTE RESOLUTION AND DISCIPLINARY PROCEEDINGS................................................ 32


8.1

Disciplinary Sanctions ............................................................................................................ 32

8.2

Grievances and Complaints.................................................................................................... 32

8.3

Compliance............................................................................................................................. 32

8.4

Governing Law ....................................................................................................................... 33

SECTION 9 ORDERING ......................................................................................................................... 33


9.1

Preferred Customers .............................................................................................................. 33

9.2

Online Customers................................................................................................................... 33

9.3

Purchasing Jeunesse Products ............................................................................................... 33

9.4

General Order Policies ........................................................................................................... 34

9.5

Shipping and Back-order Policy.............................................................................................. 34

9.6

Confirmation of Order............................................................................................................ 34

SECTION 10 PAYMENT AND SHIPPING ................................................................................................ 34


10.1

Deposits.................................................................................................................................. 34

10.2

Insufficient Funds ................................................................................................................... 34

10.3

Returned Cheques.................................................................................................................. 35

SECTION 11 INACTIVITY AND TERMINATION ...................................................................................... 35


11.1

Effect of Termination ............................................................................................................. 35

11.2

Termination Due to Inactivity ................................................................................................ 35

11.3

Involuntary Termination ........................................................................................................ 36

11.4

Voluntary Termination ........................................................................................................... 36

11.5

Non-renewal .......................................................................................................................... 36

SECTION 12 DEFINITIONS .................................................................................................................... 36

SECTION 1 INTRODUCTION
1.1

Distributor Agreement

These Policies and Procedures, in their present form and as amended at the sole discretion of
Jeunesse Global (Europe) Limited (hereafter Jeunesse or the Company), are incorporated into,
and form an integral part of, the Jeunesse Distributor Agreement. Throughout these Policies and
Procedures, when the term Agreement is used, it collectively refers to the Jeunesse Distributor
Application and Agreement, these Policies and Procedures, Jeunesse Financial Rewards Plan and the
Jeunesse Privacy Policy. These documents are incorporated by reference into the Jeunesse
Distributor Agreement (all in their current form and as amended from time to time by Jeunesse). It
is the responsibility of each Distributor to read, understand, adhere to, and ensure that he or she is
aware of and operating under the most current version of these Policies and Procedures. When
sponsoring or enrolling a new Distributor, it is the responsibility of the sponsoring Distributor to
provide the most current version of these Policies and Procedures and the Jeunesse Financial
Rewards Plan to the applicant prior to his or her execution of the Distributor Agreement.

1.2

Purpose of Policies

Jeunesse is a direct sales company that markets products through independent Distributors. It is
important to understand that your success and the success of your fellow Distributors is dependent
upon the integrity of the men and women who market your products. To clearly define the
relationship that exists between Distributors and Jeunesse, and to explicitly set a standard for
acceptable business conduct, Jeunesse has established the Agreement including these Policies and
Procedures.
Jeunesse Distributors are required to comply with all of the Terms and Conditions set forth in the
Agreement which Jeunesse may amend at its sole discretion from time to time, as well as all laws
and codes of conduct governing their Jeunesse business and their conduct. Because you may be
unfamiliar with many of these standards of practice, it is very important that you read and abide by
the Agreement. Please review the information in this manual carefully. It explains and governs the
relationship between you, as an independent Distributor, and the Company. If you have any
questions regarding any policy or rule, do not hesitate to seek an answer from your Sponsor or from
Jeunesse.

1.3

Changes to the Agreement

Because laws, as well as the business environment, periodically change, Jeunesse reserves the right
to amend the Agreement and its prices in its sole and absolute discretion. By entering into the
Distributor Agreement, a Distributor agrees to abide by all amendments or modifications that
Jeunesse elects to make and the Distributors continued engagement in purchasing, selling and
promoting Jeunesse products and the Jeunesse business opportunity shall constitute his or her
acceptance of such amendments or modifications. Amendments shall be effective upon notice to all
Distributors that the Agreement has been modified except in that in the case of any modifications to
the financial obligations of the Distributor, in which case, not less than sixty (60) days advance
written notice shall be given of such amendment or modification coming into force. Notification of
amendments shall be published in official Jeunesse materials. The Company shall provide or make
available to all Distributors, a complete copy of the amended provisions by one or more of the
following methods: (1) posting on the Companys official website; (2) electronic mail (e-mail); (3)
6

inclusion in Company periodicals; (4) inclusion in product orders or bonus cheques; or (5) special
mailings.

1.4

Delays

Jeunesse shall not be responsible for delays or failures in performance of its obligations when
performance is made commercially impracticable due to circumstances beyond its reasonable
control. This includes, without limitation, strikes, labour difficulties, riot, acts of terrorism, war, fire,
death, acts of God, natural disasters, curtailment of a partys source of supply, or government
decrees or orders.

1.5

Policies and Provisions Severable

If any provision of the Agreement, in its current form or as may be amended, is found to be invalid,
or unenforceable for any reason, only the invalid portion(s) of the provision shall be severed and the
remaining terms and provisions shall remain in full force and effect and shall be construed as if such
invalid, or unenforceable provision never comprised a part of the Agreement.

1.6

Waiver

The Company never gives up its right to insist on compliance with the Agreement and with the
applicable laws governing the conduct of a business. No failure of Jeunesse to exercise any right or
power under the Agreement or to insist upon strict compliance by a Distributor with any obligation
or provision of the Agreement, and no custom or practice of the parties at variance with the terms of
the Agreement, shall constitute a waiver of Jeunesses right to demand exact compliance with the
Agreement. Waiver by Jeunesse can be affected only in writing by an authorised officer of the
Company. Jeunesses waiver of any particular breach by a Distributor shall not affect or impair
Jeunesses rights with respect to any subsequent breach, nor shall it affect in any way the rights or
obligations of any other Distributor. Nor shall any delay or omission by Jeunesse to exercise any
right arising from a breach affect or impair Jeunesses rights as to that or any subsequent breach.
The existence of any claim or cause of action of a Distributor against Jeunesse shall not constitute a
defence to Jeunesses enforcement of any term or provision of the Agreement.

SECTION 2 BECOMING A DISTRIBUTOR


2.1

Requirements to Become a Distributor

To become a Jeunesse Distributor, each applicant must:


(a)
(b)
(c)
(d)

be aged 18 years or over;


reside in a country Jeunesse operates in;
purchase a Jeunesse Promotional Pack and subsequently a Starter Kit; and
submit a properly completed Distributor Application and Agreement to Jeunesse (see
Section 2.2 below).

The Company reserves the right to reject any applications for a new Distributor or applications for
renewal.

2.2

New Distributor Enrolment

Jeunesse provides three (3) convenient methods for new Distributors to enrol. An applicant may:
(a) mail the Application, Agreement and Promotional Pack payment to Jeunesses corporate
offices;
(b) download, sign and return by email, the Distributor Application and Agreement in
accordance with clause 2.2.1; or
(c) submit the Application and Agreement by fax.
If the applicant enrols by fax, he or she must fax both the front and back of the Application and
Agreement to Jeunesse. For fax or email enrolments, payment for the Starter Kit must be made by
credit card.

2.2.1

Online Sign-up

Where Jeunesse permits the use of electronic communications as part of an online sign-up
procedure, the following procedure should be followed. The prospective Distributor should
download and read carefully, the following documents:
(a)
(b)
(c)
(d)

Distributor Application and Agreement;


Policies and Procedures;
Financial Rewards Plan; and
Privacy Policy.

The prospective Distributor should then complete and sign the downloaded PDF format Distributor
Application and Agreement from the official Jeunesse website. The prospective Distributor should
then submit the signed Distributor Application and Agreement to Jeunesse by email to
applications@JeunesseGlobal.com or by fax or by post to Jeunesses corporate offices. The
prospective Distributor will then receive an email, confirming that the Agreement is made. This
email must include (either in its body or in an attachment) a copy of the Agreement including the
signature by the prospective Distributor and the signature on behalf of the Company.

2.3

Distributor Benefits

Once a Distributor Application and Agreement has been accepted by Jeunesse, the benefits of the
Financial Rewards Plan and the Distributor Agreement are available to the new Distributor. These
benefits include the right to:
(a) Purchase Jeunesse products at the Distributor price;
(b) Retail Jeunesse products and profit from these sales This is not applicable in e-commerce
countries;
(c) Participate in the Jeunesse Financial Rewards Plan (receive bonuses and commissions, if
eligible);

(d) Introduce Preferred Customers and sponsor other individuals as Distributors into the
Jeunesse business and thereby, build a Marketing Organisation and progress through the
Jeunesse Financial Rewards Plan;
(e) Receive periodic Jeunesse literature and other Jeunesse communications;
(f) Participate in Jeunesse-sponsored support, service, training, motivational and recognition
functions, upon payment of appropriate charges, if applicable; and
(g) Participate in promotional and incentive contests and programmes sponsored by Jeunesse
for its Distributors.

2.4

Renewal of Your Jeunesse Business

The term of the Distributor Agreement is one (1) year from the date of its acceptance by Jeunesse.
Distributors must renew their Distributor Agreement each year and pay an annual administration
renewal fee of 14.25 + VAT on or before the anniversary date of their Distributor Agreement. If the
Agreement is not renewed within thirty (30) days after the expiration of the current term of the
Distributor Agreement, the Distributor Agreement will expire and be treated as terminated.
Distributors may elect to utilise the Automatic Renewal Program (ARP). Under the ARP, the
renewal fee may be:
(a) deducted from the Distributors bonus cheque for the anniversary month of the Distributor
Agreement; or
(b) charged to the Distributors credit card.
If you maintain 350 CV during the year through Autoship orders, the Annual Renewal fee is waived.

SECTION 3 OPERATING YOUR JEUNESSE BUSINESS


3.1

Adherence to the Jeunesse Financial Rewards Plan

Distributors must adhere to the terms of the Jeunesse Financial Rewards Plan as set forth in the
Agreement and official Jeunesse literature.
During the term of the Agreement, Distributors shall not:
(a) offer the Jeunesse opportunity through, or in combination with, any other system,
programme, or method of marketing that competes with the Jeunesse system or offers
competing products or services other than that specifically set forth in official Jeunesse
literature;
(b) require or encourage other current or prospective Preferred Customers or Distributors to
participate in Jeunesse in any manner that varies from the programme as set forth in official
Jeunesse literature;
(c) require or encourage other current or prospective Preferred Customers or Distributors to
execute any agreement or contract other than official Jeunesse agreements and contracts in
order to become an Jeunesse Distributor; or
(d) require or encourage other current or prospective Preferred Customers or Distributors to
make any purchase from, or payment to, any individual or other entity to participate in the

Jeunesse Financial Rewards Plan other than those purchases or payments identified as
recommended or required in official Jeunesse literature.

3.2

Advertising and Promotional Tools Not Applicable in E-commerce Countries

3.2.1

General

All Distributors shall safeguard and promote the good reputation of Jeunesse and its products. The
marketing and promotion of Jeunesse, the Jeunesse opportunity, the Financial Rewards Plan, and
Jeunesse products shall be consistent with the public interest, and must avoid all discourteous,
deceptive, misleading, unethical or immoral conduct or practices.
To promote both the products and the opportunity Jeunesse offers, Distributors must submit to the
Jeunesse Compliance Department all literature, advertisements, sales aids, training tools,
promotional materials and Internet web pages that they wish to use in their businesses. No such
materials may be used unless and until written approval is received from the Company.
While Distributors may utilise their own materials that have been approved in writing by the
Company, they may not sell promotional tools, training tools, business building tools, sales aids, or
any other promotional or advertising material to other Distributors.
All advertisements must include:
(a) the name and address of Jeunesse;
(b) a description of the goods or services acquired or supplied by Jeunesse and/or the
Distributor.
At all times, Jeunesse and Distributors:
(a) shall not describe the business opportunity to a prospective Distributor in a false or
misleading manner;
(b) shall only promote the opportunity as a business relationship with Jeunesse;
(c) shall not promote any business based solely on recruiting other Distributors;
(d) shall not encourage anyone to purchase a product on the basis that the product cost they
incur will be recovered, reimbursed or reduced if they get others to make similar purchases;
(e) shall only use advertising materials that are legal, decent, honest and truthful; and
Distributors must act with integrity, and when dealing with consumers should:
(a) not use misleading, deceptive or unfair sales practices;
(b) make personal or telephone contact with consumers only in a reasonable manner and
during reasonable hours;
(c) respect the consumers right to privacy and their right to bring any contract to an end;
(d) describe the goods or products truthfully and accurately;
(e) answer consumers questions honestly and clearly;
(f) make only such verbal or written product claims with respect to product efficacy as are
authorised by Jeunesse;
(g) give clear and legally accurate information about price and all aspects of after-sales service;
(h) abide by all current guidelines covering the promoting and selling of goods; and

10

(i) refrain from exploiting the consumer in any way, especially anyone who is particularly
vulnerable.

3.2.2

Telemarketing, Unsolicited Faxes and SMS Message

Distributors shall make telephone contact with consumers only in a reasonable manner and during
reasonable hours. All consumers have the right not to be telephoned persistently. It is an offence to
drive a vehicle or ride a motorbike while using a handheld mobile phone or similar device.
Distributors must ensure compliance with this law when contacting other current or potential
Distributors, customers or Jeunesse staff.
SMS messages may only be sent to private individuals with the prior consent of the subscriber,
unless the subscriber has already given his or her mobile telephone number directly to the
Distributor in the context of the purchase of a Jeunesse product or service. All SMS messages must
contain valid sender and contact details.
It is unlawful:
(a) to send an unsolicited direct marketing fax to an individual, which includes consumers, sole
traders, partnerships, without their prior consent;
(b) to send an unsolicited direct marketing fax to anyone, business or individual who has
registered on the fax preference service or previously told the faxer that they do not wish to
get fax marketing from them; and
Distributors are, therefore, prohibited from undertaking any such activity in connection with the
marketing of their Jeunesse business.

3.2.4

Distributor Websites

If a Distributor desires to utilise an Internet web page to promote his or her business, he or she may
do so through the Companys replicated website programme only. This programme permits
Distributors to advertise on the Internet. These websites seamlessly link directly to the official
Jeunesse website giving the Distributor a professional and Company-approved presence on the
Internet. No Distributor may independently design a website that uses the names, logos, or product
descriptions of Jeunesse or otherwise promotes (directly or indirectly) Jeunesse products or the
Jeunesse opportunity nor may a Distributor use "blind" ads on the Internet that make product or
income claims which are ultimately associated with Jeunesse products, the Jeunesse opportunity, or
the Jeunesse Financial Rewards Plan. The use of any other Internet website or web page (including
without limitation auction sites such as eBay) to in any way promote the sale of Jeunesse products,
the Jeunesse opportunity, or the Financial Rewards Plan is a breach of the Agreement and may result
in any of the sanctions set forth in Section 8.1.

3.2.5

Domain Names and Email Addresses

Distributors may not use or attempt to register any of Jeunesses trade names, trademarks, service
names, service marks, product names, the Companys name, or any derivative thereof, for any
Internet domain name. Nor may Distributors incorporate or attempt to incorporate any of the

11

Companys trade names, trademarks, service names, service marks, product names, the Companys
name, or any derivative thereof, into any electronic mail address.

3.2.6

Trademarks and Copyrights

Jeunesse will not allow the use of its trade names, trademarks, designs, or symbols by any person,
including Jeunesse Distributors, without its prior, written permission. Distributors may not produce
for sale or distribution any recorded Company events and speeches without written permission from
Jeunesse and Distributors may not reproduce for sale or for personal use any recording of Companyproduced audio or video tape presentations.
The name of Jeunesse and other names as may be adopted by Jeunesse are proprietary trade
names, trademarks and service marks of Jeunesse. As such, these marks are of great value to
Jeunesse and are supplied to Distributors for their use only in an expressly authorised manner. Use
of Jeunesses name on any item not produced by the Company is prohibited except as follows:
(a) Distributor's Name
(b) Independent Jeunesse Distributor
All Distributors may list themselves as an Independent Jeunesse Distributor in telephone
directories under their own name. No Distributor may place telephone directory display ads using
Jeunesses name or logo. Distributors may not answer the telephone by saying Jeunesse Global,
Jeunesse, Jeunesse Incorporated, or in any other manner that would lead the caller to believe
that he or she has reached corporate offices of Jeunesse.

3.2.7

Media and Media Inquiries

Distributors must not attempt to respond to media inquiries regarding Jeunesse, its products, or
their independent Jeunesse business. All inquiries by any type of media must be immediately
referred to Jeunesses Marketing Department. This policy is designed to ensure that accurate and
consistent information is provided to the public as well as a proper public image.

3.2.8

Spamming

Except as provided in this section, Distributors may not use or transmit unsolicited and/or mass email distribution, or spamming relative to the operation of their Jeunesse businesses. Distributors
may not transmit, nor instigate the transmission of, unsolicited marketing material by electronic
mail:
1. to an individual subscriber unless the recipient of the electronic mail has previously notified
the Distributor as the sender, that he or she consents, for the time being, to receiving such
communications; or
2. to any subscriber (whether corporate or individual) where (a) the identity of the sender has
been disguised or concealed or (b) a valid address to which the recipient can send an opt-out
request has not been provided.
A solicited message is one that you have actively invited. An unsolicited marketing message that
you have opted into receiving is one that you have not invited but you have indicated that you do
not, for the time being, object to receiving it.

12

3.3

Bonus Buying Prohibited

Bonus buying is strictly and absolutely prohibited. Bonus buying includes: (a) the enrolment of
individuals or entities without the knowledge of and/or execution of a Distributor Application and
Agreement by such individuals or entities; (b) the fraudulent enrolment of an individual or entity as a
Distributor or Preferred Customer; (c) the enrolment or attempted enrolment of non-existent
individuals or entities as Distributors or Preferred Customers (phantoms); or (d) purchasing
Jeunesse merchandise on behalf of another Distributor or Preferred Customer, or under another
Distributors or Preferred Customers I.D. number, to qualify for commissions or bonuses.

3.4

Business Entities

A company or partnership (collectively referred to in this section as a Business Entity) may apply to
be a Jeunesse Distributor by submitting its Certificate of Incorporation or Partnership Agreement
(these documents are collectively referred to as the Entity Documents) to Jeunesse, along with a
properly completed Business Entity Registration Form. A Jeunesse business may change its status
under the same Sponsor from an individual to a partnership or company or from one type of entity
to another. There is a 17.86 fee for each change requested, which must be included with the
written request and the completed Distributor Application and Agreement. The Business Entity
Registration Form must be signed by all of the shareholders and/or, partners who understand and
agree that they are jointly and severally liable for any indebtedness or other obligation to Jeunesse.

3.5

Changes to a Jeunesse Business

3.5.1

General

Each Distributor must immediately notify Jeunesse of all changes to the information contained on
his or her Distributor Application and Agreement. Distributors may modify the contact details on
their existing Distributor Agreement (or change the form of ownership from an individual
proprietorship to a business entity owned by the Distributor) by submitting a written request, a
properly executed Distributor Application and Agreement, and appropriate supporting
documentation. Changes will be processed only once per year. All changes must be submitted by
30th November to become effective on 1st January of the following year.

3.5.2

Addition of Co-Applicants

When adding a co-applicant (either an individual or a business entity) to an existing Jeunesse


business, the Company requires a written request as well as a properly completed Distributor
Application and Agreement containing the applicant and co-applicants details and signatures. To
prevent the circumvention of Section 3.26 (regarding transfers and assignments of Jeunesse
business), the original applicant must remain as a party to the original Distributor Application and
Agreement. If the original Distributor wants to terminate his or her relationship with the Company,
he or she must transfer or assign his or her business in accordance with Section 3.26. If this process
is not followed, the Agreement will be terminated upon the withdrawal of the original Distributor.
All bonus and commission cheques will be sent to the address on record of the original Distributor.

13

Please note that the modifications permitted within the scope of this paragraph do not include a
change of sponsorship. Changes of sponsorship are addressed in Section 3.5.3, below. There is a
17.86 fee for each change requested, which must be included with the written request and the
completed Distributor Application and Agreement. Jeunesse may, at its discretion, require certified
documents before implementing any changes to a Jeunesse business. Please allow thirty (30) days
after the receipt of the request by Jeunesse for processing.

3.5.3

Change of Sponsor

To protect the integrity of all Marketing Organisations and safeguard the hard work of all
Distributors, Jeunesse strongly discourages changes in sponsorship. Maintaining the integrity of
sponsorship is critical for the success of every Distributor and Marketing Organisation. Accordingly,
the transfer of a Jeunesse business from one Sponsor to another is rarely permitted. Requests for
change of sponsorship must be submitted in writing to the Customer Service Department, and must
include the reason for the transfer. Transfers will only be considered in cases in which the original
Sponsor intentionally deceives a prospect into enrolling in his or her organisation rather than that of
another Distributor. All requests for transfer alleging fraudulent sponsoring shall be evaluated on a
case-by-case basis, and it shall be at the Company's discretion whether the transfer is permitted.

3.5.4

Termination and Re-application

A Distributor may legitimately change organisations by voluntarily terminating his or her Jeunesse
business and remaining inactive (i.e., no purchases of Jeunesse products for resale, no sales of
Jeunesse products, no sponsoring, no attendance at any Jeunesse functions, participation in any
other form of Distributor activity, or operation of any other Jeunesse business) for twelve (12) full
calendar months. Following the twelve (12) month period of inactivity, the former Distributor may
re-apply under a new Sponsor.

3.6

Unauthorised Claims and Actions

3.6.1

Indemnification

A Distributor is fully responsible for all of his or her verbal and written statements made regarding
Jeunesse products and the Financial Rewards Plan which are not expressly contained in official
Jeunesse materials. Distributors agree to indemnify Jeunesse and Jeunesses directors, officers,
employees, and agents, and hold them harmless from any and all liability including judgments, civil
penalties, refunds, legal expenses, court costs, or lost business incurred by Jeunesse as a result of
the Distributors unauthorised representations or actions.

3.6.2

Product Claims

No claims (which include personal testimonials) as to beneficial properties of any products offered
by Jeunesse may be made except those contained in official Jeunesse literature.

14

3.6.3

Income Claims

In their enthusiasm to enrol prospective Distributors, some Distributors are occasionally tempted to
make income claims or earnings representations to demonstrate the inherent power of network
marketing. This is counterproductive because new Distributors may become disappointed very
quickly if their results are not as extensive or as rapid as the results others have achieved.
It is illegal for a promoter or participant in a trading scheme to persuade anyone to make a payment
by promising benefits from getting others to join a scheme. Do not be misled by claims that high
earnings are easily achieved.
At Jeunesse, we firmly believe that the Jeunesse income potential is great enough to be highly
attractive, without reporting the earnings of others. A Distributor, when presenting or discussing the
Jeunesse opportunity or Financial Rewards Plan to a prospective Distributor, may not make income
projections, income claims, or disclose his or her Jeunesse income (including the showing of
cheques, copies of cheques, bank statements, or tax records). Hypothetical income examples that
are used to explain the operation of the Financial Rewards Plan, and which are based solely on
mathematical projections, may be made to prospective Distributors, so long as the Distributor who
uses such hypothetical examples makes clear to the prospective Distributor(s) that such earnings are
hypothetical and the Distributor provides the prospect with a copy of the most current income
disclosure chart prepared by the Company. Until such time as Jeunesse publishes an official income
disclosure statement, Distributors may not use hypothetical income examples in the promotion of
their Jeunesse businesses.
At all times, Jeunesse and Distributors shall not make any unrepresentative or exaggerated earnings
claims, but any earnings claims must relate to actual earnings from the opportunity by an
identifiable person and be capable of verification and shall not use income claims that imply that
earnings are quickly or easily achieved. If specific sales achievements are mentioned, they should
relate to the Distributors personal sales, together with sales generated by other Distributors over
whom that person has any influence, or the sales generated by that part of the network from which
the income is derived. Income claims by Distributors should not include any income which is
required to be passed on to other Distributors and must reflect the average income of at least three
(3) identified consecutive periods of months or years and, where an income claim does not reflect
the average income of all the Distributors of Jeunesse, the claim should make clear the range of
Distributors whose income the claim reflects.

3.7

Commercial Outlets and Sales

3.7.1

Commercial

Jeunesse strongly encourages the retailing and selling of its products through person to person
contact. In an effort to reinforce this method of marketing and to help provide a standard of
fairness for its Distributor base, Distributors may not display or sell Jeunesse products or literature in
any retail or service establishment.

15

3.7.2

Commercial Sales

Jeunesse will permit Distributors to solicit and make commercial sales upon prior written approval
from the Company. For the purposes of these Policies and Procedures, the term commercial sale
means the sale of:
(a) Jeunesse products that equal or exceed $1,000.00 or more in a single order; and
(b) to a third party who intends to resell the products to an end consumer.

3.7.3

Trade Shows, Exhibitions, Expositions and Other Sales Forums

Distributors may, where legal, display and/or sell Jeunesse products at trade shows, exhibitions and
professional expositions. Before submitting a deposit to the event promoter, Distributors must
contact the Customer Service Department in writing for conditional approval, as Jeunesses policy is
to authorise only one (1) Jeunesse business per event. Final approval will be granted to the first
Distributor who submits an official advertisement of the event, a copy of the contract signed by both
the Distributor and the event official, and a receipt indicating that a deposit for the stand has been
paid. Approval is given only for the event specified. Any requests to participate in future events
must again be submitted to the Customer Service Department. Jeunesse further reserves the right
to refuse authorisation to participate at any function which it does not deem a suitable forum for
the promotion of its products or the Jeunesse opportunity. Approval will not be given for car boot
sales, flea markets or farmers markets as these events are not conducive to the professional image
Jeunesse wishes to portray.

3.8

Conflicts of Interest

3.8.1

Non-solicitation

Jeunesse Distributors may participate in other direct selling or network marketing or


multilevel marketing ventures (collectively network marketing), and Distributors may engage in
selling activities related to non-Jeunesse products and services if they desire to do so. However, if a
Distributor elects to participate in another network marketing opportunity, in order to avoid
conflicts of interest and loyalties and to protect the legitimate business interests of Jeunesse,
Distributors are prohibited from Unauthorised Recruiting, which includes the following:
(a) During the term of this agreement, any actual or attempted recruitment or enrolment of
other Distributors or Preferred Customers for other network marketing business ventures,
either directly or through a third party. This includes, but is not limited to, presenting or
assisting in the presentation of other network marketing business ventures to any Jeunesse
Preferred Customer or Distributor, or implicitly or explicitly encouraging any Jeunesse
Preferred Customer or Distributor to join other business ventures. Because there is an
extreme likelihood that conflicts will arise if a Distributor operates two (2) network
marketing programmes, it is the Distributors responsibility to first determine whether a
prospect is an Jeunesse Preferred Customer or Distributor before recruiting or enrolling the
prospect for another network business venture.
(b) Following the termination of this Agreement, and for a period of ninety (90) days thereafter,
a former Distributor may not recruit any non-personally sponsored Jeunesse Distributor or
Preferred Customer for another network marketing business. A former Distributor may

16

(c)
(d)

(e)
(f)

3.8.2

recruit his or her personally-sponsored Distributors and Preferred Customers for another
network marketing business.
Producing or offering any literature, CDs, DVDs or promotional material of any nature for
another network marketing business which is used by the Distributor or any third person to
recruit Jeunesse Preferred Customers or Distributors for that business venture.
Selling, offering to sell, or promoting any competing non-Jeunesse products to Jeunesse
Preferred Customers or Distributors. Any product in the same generic category as a
Jeunesse product is deemed to be competing, regardless of differences in cost, quality,
ingredients or nutrient content.
Offering Jeunesse products, or promoting the Jeunesse Financial Rewards Plan, in
conjunction with any non-Jeunesse products, services, business plan, opportunity, or
incentive.
Offering any non-Jeunesse products, services, business plan, opportunity, or incentive at any
Jeunesse meeting, seminar, launch, convention, or other Jeunesse function, or immediately
following such event.

Downline Activity (Genealogy) Reports

Downline Activity Reports are available for Distributors to access and view at Jeunesses official
website. Distributor access to their Downline Activity Reports is password protected. All Downline
Activity Reports and the information contained therein are confidential and constitute proprietary
information and business trade secrets belonging to Jeunesse. Downline Activity Reports are
provided to Distributors in strictest confidence and are made available to Distributors for the sole
purpose of assisting Distributors in working with their respective Downline Organisations in the
development of their Jeunesse business. Distributors should use their Downline Activity Reports to
assist, motivate, and train their downline Distributors. The Distributor and Jeunesse agree that, but
for this agreement of confidentiality and nondisclosure, Jeunesse would not provide Downline
Activity Reports to the Distributor.
A Distributor shall not, on his or her own behalf, or on behalf of any other person, partnership,
association, company or other entity:
(a) Directly or indirectly disclose any information contained in any Downline Activity Report to
any individual, partnership, association, company, or other entity;
(b) Directly or indirectly disclose, to any individual, partnership, association, company, or other
entity, the password or other access code to his or her Downline Activity Report;
(c) Use the information contained in any Downline Activity Report to compete with Jeunesse or
for any purpose other than promoting or supporting his or her Jeunesse business; or
(d) Recruit or solicit any Distributor or Preferred Customer listed on any Downline Activity
Report or in any manner attempt to influence or induce any Distributor or Preferred
Customer, to alter their business relationship with Jeunesse.
Upon demand by the Company, any current or former Distributor will return the original and all
copies of Downline Activity Reports to the Company.

3.9

Targeting Other Direct Sellers

Jeunesse does not condone Distributors specifically or consciously targeting the sales force of
another direct sales company to sell Jeunesse products or to become Distributors for Jeunesse, nor

17

does Jeunesse condone Distributors solicitation or enticement of members of the sales force of
another direct sales company to violate the terms of their contract with such other company.
Should Distributors engage in such activity, they bear the risk of being sued by the other direct sales
companies. If any action is brought against a Distributor alleging that he or she engaged in
inappropriate recruiting activity of its sales force or customers, Jeunesse will not pay any of
Distributors defence costs or legal fees, nor will Jeunesse indemnify the Distributor for any
judgment, award, or settlement.

3.10

Cross Sponsoring

Actual or attempted cross sponsoring is strictly prohibited. Cross Sponsoring includes the
enrolment of an individual who or entity that already has a current Customer or Distributor
Agreement on file with Jeunesse, or who has had such an agreement within the preceding twelve
(12) calendar months, within a different line of sponsorship. The use of and any indirect means,
such as a spouses or relatives name, trade names, assumed names, companies, partnerships, or
fictitious ID numbers to circumvent this policy is prohibited. Distributors shall not demean, discredit
or defame other Jeunesse Distributors in an attempt to entice another Distributor to become part of
the first Distributors Marketing Organisation. This policy shall not prohibit the transfer of a
Jeunesse business in accordance with Section 3.26.
If Cross Sponsoring is discovered, it must be brought to the Companys attention immediately.
Jeunesse may take disciplinary action against the Distributor that changed organisations and/or
those Distributors who encouraged or participated in the Cross Sponsoring. Jeunesse may also move
all or part of the offending Distributors Downline, including those enrolled after a Distributor
changed organisations in violation of this policy, to his or her original Downline Organisation if the
Company deems it equitable and feasible to do so. However, Jeunesse is under no obligation to
move the Cross Sponsored Distributors Downline Organisation, and the ultimate disposition of the
organisation remains within the sole discretion of Jeunesse. Distributors waive all claims and causes
of action against Jeunesse arising from or relating to the disposition of the Cross Sponsored
Distributors Downline Organisation.

3.11

Errors or Questions

If a Distributor has questions about or believes any errors have been made regarding commissions,
bonuses, Downline Activity Reports, or charges, the Distributor must notify Jeunesse in writing
within sixty (60) days of the date of the purported error or incident in question coming to his or her
attention, or that of a reasonable Distributor (including deeming of notice). Jeunesse will not be
responsible for any errors, omissions or problems not reported to the Company within sixty (60)
days.

3.12

Excess Inventory Purchases Prohibited

Distributors are not required to carry inventory of products or sales aids. Distributors who do so
may find making retail sales and building a Marketing Organisation somewhat easier because of the
decreased response time in fulfilling customer orders or in meeting a new Distributor's needs. Each
Distributor must make his or her own decision with regard to these matters. To ensure that
Distributors are not encumbered with excess inventory that they are unable to sell, such inventory

18

may be returned to Jeunesse upon the Distributors termination pursuant to the terms of Section
7.2.
Jeunesse strictly prohibits the purchase of products in unreasonable amounts primarily for the
purpose of qualifying for commissions, bonuses or advancement in the Financial Rewards Plan or to
benefit others in Jeunesse. Distributors may not purchase more inventory than they can reasonably
resell (where legal) or consume in a month and they must not encourage others to do so.
Distributors are prohibited from purchasing more than $1,000.00 in products per month unless they
certify to Jeunesse that they have pending retail orders in excess of that amount or provide Jeunesse
with other written reason why such a purchase is necessary.

3.13

Governmental Approval or Endorsement

No government or regulatory agencies or officials approve or endorse any direct selling or network
marketing companies or programmes. Therefore, Distributors shall not represent or imply that
Jeunesse or its Financial Rewards Plan have been "approved", "endorsed" or otherwise sanctioned
by any government agency.

3.14

Holding Applications or Orders

Distributors must not manipulate enrolments of new applicants and purchases of products. All
Distributor Applications and Agreements, and product orders must be sent to Jeunesse within
seventy-two (72) hours from the time they are signed by a Distributor or placed by a customer,
respectively.

3.15

Identification

Upon enrolment, the Company will provide a unique Distributor Identification Number to the
Distributor by which he or she will be identified. This number will be used to place orders, and track
commissions and bonuses.

3.16

Taxation

As an independent contractor, the Distributor shall be responsible at all times for the filing of all
necessary tax returns and registering for and paying all applicable taxes due in relation to the
Distributors business. This shall include (but not be limited to) the obligation to make, execute or
file, all reports and obtain licenses (including, if applicable, VAT registrations) as are required by law
with respect to the Agreement and/or the acquisition, receipt, holding, selling, distribution or
promotion of any Jeunesse product.
As a self-employed independent Distributor, it is your responsibility to register for VAT once your
turnover exceeds the threshold for compulsory registration. If you are VAT registered then you will
need to provide the company with a VAT invoice each month for the VAT on your commission to be
paid. If at any time whilst you are a Distributor you register or deregister for VAT it is essential that
you advise Jeunesse as soon as possible. If you are VAT registered or become VAT registered the
company will require a copy of your VAT registration certificate and confirmation of your status on
renewal each year thereafter.

19

3.17

Independent Contractor Status

Distributors operate in their own name, on their own behalf and are self-employed independent
contractors, and are not purchasers of a franchise or a business opportunity. The independent
nature of Distributors business operations remains the same irrespective of whether Distributors
additionally perform the functions of a Sponsor. The agreement between Jeunesse and its
Distributors does not create an employer/employee relationship, partnership, or joint venture
between the Company and the Distributor. Distributors shall not be treated as an employee for his
or her services or for tax purposes. All Distributors are responsible for paying taxes due from all
compensation earned as a Distributor of the Company. The Distributor has no authority (expressed
or implied), to bind the Company to any obligation. Each Distributor shall establish his or her own
goals, hours, and methods of sale, so long as he or she complies with the terms of the Distributor
Agreement, these Policies and Procedures, and applicable laws.

3.18

Insurance

3.18.1 Business Pursuits Coverage


You may wish to arrange insurance coverage for your business. Your homeowners insurance policy
may not cover business-related injuries or the theft of or damage to inventory or business
equipment. Contact your insurance agent to make certain that your business property is protected.

3.18.2 Product Liability Coverage


Jeunesses supplier maintains insurance to protect the Company and Distributors against product
liability claims. The suppliers insurance policy contains a Vendors Endorsement which extends
coverage to Distributors so long as they are marketing Jeunesse products in accordance with
Company Policies and applicable laws and regulations. Jeunesses product liability policy does not
extend coverage to claims or actions that arise as a result of a Distributors misconduct in marketing
the products.

3.19

International Marketing E-commerce

Because of critical legal and tax considerations, Jeunesse must limit the resale of Jeunesse products,
and the presentation of the Jeunesse business to prospective customers and Distributors located
within Europe. Moreover, allowing a few Distributors to conduct business in markets not yet
opened by Jeunesse would violate the concept of affording every Distributor the equal opportunity
to expand internationally.
Accordingly, Distributors are authorised to sell Jeunesse products, and enrol Preferred Customers
and Distributors only in the countries in which Jeunesse is authorised to conduct business, as
announced in official Company literature. Where legal, Distributors may sell, give, transfer, or
distribute Jeunesse products or sales aids only in their home country. No Distributor may, in any
unauthorised country: (a) conduct sales, enrolment or training meetings; (b) enrol or attempt to

20

enrol potential customers or Distributors; or (c) conduct any other activity for the purpose of selling
Jeunesse products, establishing a Marketing Organisation, or promoting the Jeunesse opportunity.
Where Jeunesse carries on business, or permits the direct selling of its product, in another country,
Jeunesse and Distributors shall do so in accordance with legislation relating to direct selling in that
country and all Codes of Practice of the local DSA (whether or not Jeunesse is a member of that
Association). If there is no local DSA, Jeunesse will ensure that it, and its Distributors in that country
abide by the provisions of the World Federation of Direct Selling Associations Codes.

3.20

Adherence to Laws and Codes of Conduct

3.20.1 Compliance with Laws


Distributors shall comply with all applicable laws and regulations in the conduct of their businesses.

3.21

Minors

A person who is recognised as a minor may not be a Jeunesse Distributor. Distributors shall not
enrol or recruit minors into the Jeunesse programme.

3.22

One Jeunesse Business per Distributor and Per Household

A Distributor may operate or have an ownership interest, legal or equitable, as a sole proprietorship,
partner, shareholder, or beneficiary, in only one (1) Jeunesse business. No individual may have,
operate or receive compensation from more than one (1) Jeunesse business. Individuals of the same
family unit may not enter into or have an interest in more than one (1) Jeunesse Business. A family
unit is defined as spouses and dependent children living at or doing business at the same address.
In order to maintain the integrity of the Jeunesse Financial Rewards Plan, husbands and wives or civil
partners (collectively spouses) who wish to become Jeunesse Distributors must be jointly
sponsored as one (1) Jeunesse business. Both spouses, must sign the Distributor Application and
Agreement as partners and, may not own or operate any other Jeunesse business, either individually
or jointly, nor may they participate directly or indirectly (as a shareholder, partner, or any other legal
or equitable ownership) in the ownership or management of another Jeunesse business in any form.
An exception to the one (1) business per Distributor rule will be considered on a case by case basis if
two (2) Distributors marry or in cases of a Distributor receiving an interest in another business
through inheritance. Requests for exceptions to policy must be submitted in writing to the
Compliance Department.

3.22.1 Actions of Household Members or Affiliated Individuals


Similarly, if any individual associated in any way with a company, partnership, trust or other entity
(collectively affiliated individual) violates the Agreement, such action(s) will be deemed a violation
by the entity, and Jeunesse may take disciplinary action against the entity.

21

3.23

Re-packaging and Re-labelling Prohibited

Distributors may not re-package, re-label, refill or alter the labels on any Jeunesse products,
information, materials or programmes in any way. Jeunesse products must be sold in their original
containers only.

3.24

Requests for Records

Any request from a Distributor for copies of invoices, applications, downline activity reports, or
other records will require a fee of $1.00 per page per copy. This fee covers the expense of mailing
and time required to research files and make copies of the records.

3.26

Sale, Transfer or Assignment of Jeunesse Business

Although a Jeunesse business is a privately owned, independently operated business, the sale,
transfer or assignment of a Jeunesse business is subject to certain limitations. If a Distributor wishes
to sell his or her Jeunesse business, the following criteria must be met:
(a) Protection of the existing line of sponsorship must always be maintained so that the
Jeunesse business continues to be operated in that line of sponsorship.
(b) The buyer or transferee must be (or must become) a qualified Jeunesse Distributor. If the
buyer is an active Jeunesse Distributor, he or she must first terminate his or her Jeunesse
business at least twelve (12) months prior to the purchase, transfer, assignment or
acquisition of any interest in the new Jeunesse business.
(c) Before the sale, transfer or assignment can be finalised and approved by Jeunesse, any debt
obligations the selling Distributor has with Jeunesse must be satisfied.
(d) The selling Distributor must be in good standing and not in violation of any of the terms of
the Agreement in order to be eligible to sell, transfer or assign a Jeunesse business.
(e) The business that is being sold must have earned a commission of at least $25.00 in each of
the preceding eight (8) pay periods.
(f) A transfer fee of $50 is payable to Jeunesse Global.
Prior to selling a Jeunesse business, the selling Distributor must notify Jeunesses Compliance
Department of his or her intent to sell the Jeunesse business. Upon complete execution of the
purchase and sale agreement, the parties must submit copies of the same to Jeunesses Compliance
Department for review. Jeunesse reserves the right to request additional documentation that may
be necessary to analyse the transaction between the buyer and seller. Jeunesses Compliance
Department will, in its sole and absolute discretion, approve or deny the sale, transfer or assignment
within thirty (30) days after its receipt of all necessary documents from the parties.
If the parties fail to obtain Jeunesses approval for the transaction, the transfer shall be voidable at
Jeunesses option. The purchaser of the existing Jeunesse business will assume the obligations and
position of the selling Distributor. A Distributor who sells his or her Jeunesse business shall not be
eligible to re-apply as a Jeunesse Distributor for a period of at least six (6) full calendar months after
the date of the sale. No changes in line of sponsorship can result from the sale or transfer of a
Jeunesse business.

22

3.27

Separation of a Jeunesse Business

Jeunesse Distributors sometimes operate their Jeunesse businesses as partnerships between


spouses, regular partnerships or companies. At such time as a marriage may end in divorce or a
company or partnership (the latter two (2) entities are collectively referred to herein as entities)
may dissolve, arrangements must be made to ensure that any separation or division of the business
is accomplished so as not to adversely affect the interests and income of other businesses up or
down the line of sponsorship. During the pendency of a divorce or entity dissolution, the parties
must adopt one of the following methods of operation:
(a) One of the parties may, with consent of the other(s), operate the Jeunesse business
pursuant to an assignment in writing whereby the relinquishing spouse, shareholders,
partners or trustees authorise Jeunesse to deal directly and solely with the other spouse or
non-relinquishing shareholder or partner.
(b) The parties may continue to operate the Jeunesse business jointly on a business-as-usual
basis, whereupon all compensation paid by Jeunesse will be paid in the joint names of the
Distributors or in the name of the entity to be divided as the parties may independently
agree between themselves.
(c) If the parties cannot mutually agree on how the business shall be allocated during the
pendency of a divorce or dissolution, the Company shall treat the business according to the
status quo as existed prior to the filing of the divorce or dissolution.
Under no circumstances will the Downline Organisation of divorcing spouses or a dissolving business
entity be divided. Similarly, under no circumstances will Jeunesse split commission and bonus
cheques between divorcing spouses or members of dissolving entities. Jeunesse will recognise only
one (1) Downline Organisation and will issue only one (1) commission cheque per Jeunesse business
per commission cycle. Commission cheques shall always be issued to the same individual or entity.
In the event that parties to a divorce or dissolution proceeding are unable to resolve a dispute over
the disposition of commissions and ownership of the business, the Distributor Agreement shall be
involuntarily terminated.
If a former spouse or a former entity affiliate has completely relinquished all rights in their original
Jeunesse business, they are thereafter free to enrol under any Sponsor of their choosing, so long as
they meet the waiting period requirements set forth in Section 3.5.4. In such case, however, the
former spouse or partner shall have no rights to any Distributors in their former organisation or to
any former Retail Customer or Preferred Customer. They must develop the new business in the
same manner as would any other new Distributor.

3.28

Sponsoring

All active Distributors in good standing have the right to sponsor and enrol others into Jeunesse.
Each prospective Preferred Customer and Distributor has the ultimate right to choose his or her own
Sponsor. If two Distributors claim to be the Sponsor of the same new Distributor or Preferred
Customer, the Company shall regard the first application received by the Company as controlling.

3.29

Stacking

Stacking is strictly prohibited. The term stacking includes: (a) the failure to transmit to Jeunesse
or the holding of a Distributor Application and Agreement in excess of two (2) business days after its

23

execution; (b) the placement or manipulation of Distributor Applications and Agreements for the
purpose of maximising compensation pursuant to Jeunesses Financial Rewards Plan; or (c) providing
financial assistance to new Distributors for the purpose of maximising compensation pursuant to
Jeunesses Financial Rewards Plan; (d) violating the one (1) business per household rule; and/or (e)
enrolling fictitious individuals or entities into the Jeunesse Financial Rewards Plan.

3.30

Succession

Upon the death or incapacitation of a Distributor, his or her business may be passed to his or her
heirs. Appropriate legal documentation must be submitted to the Company to ensure the transfer is
proper. Accordingly, a Distributor should consult a solicitor to assist him or her in the preparation of
a will. Whenever a Jeunesse business is transferred by a will or other testamentary process, the
beneficiary acquires the right to collect all bonuses and commissions of the deceased Distributors
Marketing Organisation provided the following qualifications are met. The successor(s) must:
(a)
(b)
(c)
(d)

Provide Jeunesse with a copy of the grant of probate;


Execute a Distributor Agreement;
Comply with terms and provisions of the Agreement; and
Meet all of the qualifications for the deceased Distributors status.

Bonus and commission cheques of a Jeunesse business transferred pursuant to this section will be
paid to the estate of the deceased in a single cheque. The executors must provide Jeunesse with an
address of record to which all bonus and commission cheques will be sent. If the business is
bequeathed to joint beneficiaries, they must form a business entity. Jeunesse will issue all bonus and
commission cheques to the business entity.

3.30.1 Transfer upon Death of a Distributor


To effect a testamentary transfer of a Jeunesse business, the successor must provide the following
to Jeunesse: (1) an original death certificate; (2) a certified copy of the grant of probate establishing
the successors right to the Jeunesse business; and (3) a completed and executed Distributor
Agreement.

3.30.2 Transfer upon Incapacitation of a Distributor


To effect a transfer of a Jeunesse business because of incapacity, the successor must provide a
certified copy of a power of attorney to Jeunesse.

SECTION 4 RESPONSIBILITIES OF DISTRIBUTORS


4.1

Generally

Jeunesse or any Distributor shall not accept from any other Distributor joining the trading scheme
any payment or an undertaking to make a payment of any sum exceeding $1,000.

24

4.2

Change of Address or Telephone

To ensure timely delivery of products, support materials and commission cheques, it is critically
important that Jeunesses files are current. Street addresses are required for shipping since we
cannot deliver to a post office box. Distributors planning to move should send their new address
and telephone numbers to Jeunesses Corporate Offices to the attention of the Customer Service
Department. To guarantee proper delivery, two (2) weeks advance notice must be provided to
Jeunesse on all changes. Special Note: If you are presently on the Autoship program, you must
submit a new Autoship Agreement. If more than one (1) change of address notice or Autoship
Agreement has been submitted to Jeunesse, the most recent one will supersede previous notices or
Agreements. Please allow thirty (30) days after the receipt of the notice or Agreement by Jeunesse
for processing.

4.3

Continuing Development Obligations

4.3.1

Ongoing Training

Any Distributor who sponsors another Distributor into Jeunesse must perform a bona fide assistance
and training function to ensure that his or her downline is properly operating his or her Jeunesse
business. Distributors must have ongoing contact and communication with the Distributors in their
Downline Organisations. Examples of such contact and communication may include, but are not
limited to: newsletters, written correspondence, personal meetings, telephone contact, voice mail,
electronic mail, and the accompaniment of downline Distributors to Jeunesse meetings, training
sessions, and other functions. Upline Distributors are also responsible to motivate and train new
Distributors in Jeunesse product knowledge, effective sales techniques, the Jeunesse Financial
Rewards Plan and compliance with Company Policies and Procedures. Communication with and the
training of downline Distributors must not, however, violate Section 3.2 (regarding the development
of Distributor-produced sales aids and promotional materials).
If Jeunesse or any Distributors charge for training, they shall, for fourteen (14) days afterwards, offer
full refunds (less the actual cost of any subsistence) to any other Distributor who is dissatisfied with
the training.
Distributors must monitor the Distributors in their Downline Organisations to ensure that downline
Distributors do not make improper product or business claims, or engage in any illegal or
inappropriate conduct. Upon request, every Distributor should be able to provide documented
evidence to Jeunesse of his or her ongoing fulfilment of the responsibilities of a Sponsor.

4.3.2

Increased Training Responsibilities

As Distributors progress through the various levels of leadership, they will become more
experienced in sales techniques, product knowledge, and understanding of the Jeunesse
programme. They will be called upon to share this knowledge with lesser experienced Distributors
within their organisation.

25

4.3.3

Ongoing Sales Responsibilities

Regardless of their level of achievement, Distributors have an ongoing obligation to continue to


personally promote sales through the generation of new customers and through servicing their
existing customers.

4.4

Non-disparagement

Jeunesse wants to provide its independent Distributors with the best products, Financial Rewards
Plan, and service in the industry. Accordingly, we value your constructive criticisms and comments.
All such comments should be submitted in writing to the Compliance Department. Remember, to
best serve you, we must hear from you! While Jeunesse welcomes constructive input, negative
comments and remarks made in the field by Distributors about the Company, its products, or
Financial Rewards Plan serve no purpose other than to sour the enthusiasm of other Jeunesse
Distributors. For this reason, and to set the proper example for their downline, Distributors must
not disparage, demean, or make negative remarks about Jeunesse, other Jeunesse Distributors,
Jeunesses products, the Financial Rewards Plan, or Jeunesses directors, officers, or employees.

4.5

Providing Documentation to Applicants

Distributors must provide the most current version of the Policies and Procedures and the Financial
Rewards Plan to individuals whom they are sponsoring to become Distributors before the applicant
signs a Distributor Agreement.

4.6

Reporting Policy Violations

Distributors observing a Policy violation by another Distributor should submit a written report of the
violation directly to the attention of the Jeunesse Compliance Department. Details of the incidents
such as dates, number of occurrences, persons involved, and any supporting documentation should
be included in the report.

SECTION 5 SALES REQUIREMENTS


5.1

Product Sales

The Jeunesse Financial Rewards Plan is based upon the sale of Jeunesse products to end consumers.
Distributors must fulfil personal and Downline Organisation retail sales requirements (as well as
meet other responsibilities set forth in the Agreement) to be eligible for bonuses, commissions and
advancement to higher levels of achievement. The following sales requirements must be satisfied
for Distributors to be eligible for commissions:
(a) Distributors must satisfy the Personal Sales Volume (PSV), the requirements associated with
their rank as specified in the Jeunesse Financial Rewards Plan.
(b) PSV includes purchases made by the Distributor and purchases made by the Distributors
personally enrolled Preferred Customers and Online Customers.
26

(c) 70% Rule. At least 70% of a Distributors total monthly PSV must be sold to personal Retail
Customers (where legal), Online Customers, and/or Preferred Customers.

5.2

No Price or Territory Restrictions

Distributors are not required to sell Jeunesse products at the suggested retail prices set by Jeunesse
on the Jeunesse Price List. Distributors may sell Jeunesse products at any price they choose. There
are no exclusive territories granted to anyone. No franchise fees are required.

5.3

Sales Receipts

Distributors must maintain all retail sales receipts for a period of six (6) years and furnish them to
Jeunesse at the Companys request. Records documenting the purchases of Distributors Online and
Preferred Customers will be maintained by Jeunesse.

SECTION 6 BONUSES AND COMMISSIONS


6.1

Bonus and Commission Qualifications

A Distributor must be in compliance with the Agreement to qualify for bonuses and commissions. So
long as a Distributor complies with the terms of the Agreement, Jeunesse shall pay commissions to
such Distributors in accordance with the Financial Rewards Plan. The minimum amount for which
Jeunesse will issue a cheque/payment is $10.00. If a Distributors bonuses and commissions do not
equal or exceed $10.00, the Company will accrue the commissions and bonuses until they total
$10.00. A cheque/payment will be issued once $10.00 has been accrued.

6.2

Adjustment to Bonuses and Commissions

6.2.1

Adjustments for Returned Products

Distributors receive bonuses and commissions based on the actual sales of products to end
consumers. When a product is returned to Jeunesse for a refund or is repurchased by the Company,
the bonuses and commissions attributable to the returned or repurchased product(s) will be
deducted, in the month in which the refund is given, and continuing every pay period thereafter
until the commission is recovered, from the Distributors who received bonuses and commissions on
the sales of the refunded products.

6.2.2

Other Deductions

Jeunesse will deduct from all bonus and commission cheques a data processing fee of $0.01 per line
for downline genealogy reports sent to Distributors. The maximum fee is $5.00.

27

6.3

Unclaimed Commissions and Credits

Distributors must deposit or cash commission and bonus cheques within six (6) months from their
date of issuance. A cheque that remains un-cashed after six (6) months will be void. After a cheque
has been voided, Jeunesse will attempt to notify a Distributor who has an un-cashed cheque by
sending a monthly written notice to his or her last known address identifying the amount of the
cheque and advising that the Distributor can request that the cheque be reissued. There shall be a
$15.00 charge for reissuing a cheque and a $10.00 fee for each notice that is sent to the Distributor.
These charges shall be deducted from the balance owed to the Distributor.
Preferred Customers, Online Customers, or Distributors who have a credit on account must use their
credit within six (6) months from the date on which the credit was issued. If credits have not been
used within six (6) months, Jeunesse shall attempt to notify the Distributor or Preferred or Online
Customer on a monthly basis, by sending written notice to the last known address, advising the
Distributor or Preferred or Online Customer of the credit. There shall be a $10.00 charge for each
attempted notification. This charge shall be deducted from the Distributors or Preferred or Online
Customers credit on account.

6.4

Reports

All information provided by Jeunesse in online or telephonic Downline Activity Reports, including but
not limited to PSV (or any part thereof), and downline sponsoring activity is believed to be accurate
and reliable.
ALL PSV INFORMATION IS PROVIDED "AS IS" WITHOUT WARRANTIES, EXPRESS OR IMPLIED, OR
REPRESENTATIONS OF ANY KIND WHATSOEVER. IN PARTICULAR, BUT WITHOUT LIMITATION, THERE
SHALL BE NO WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR USE, OR
NON-INFRINGEMENT.
TO THE FULLEST EXTENT PERMISSIBLE UNDER APPLICABLE LAW, JEUNESSE AND/OR OTHER PERSONS
CREATING OR TRANSMITTING THE INFORMATION WILL TO THE EXTENT PERMITTED BY LAW NOT BE
LIABLE TO ANY DISTRIBUTOR OR ANYONE ELSE FOR ANY DIRECT, INDIRECT, CONSEQUENTIAL,
INCIDENTAL, SPECIAL OR PUNITIVE DAMAGES THAT ARISE OUT OF THE USE OF OR ACCESS TO PSV
INFORMATION (INCLUDING BUT NOT LIMITED TO LOST PROFITS, BONUSES, OR COMMISSIONS, LOSS
OF OPPORTUNITY, AND DAMAGES THAT MAY RESULT FROM INACCURACY, INCOMPLETENESS,
INCONVENIENCE, DELAY, OR LOSS OF THE USE OF THE INFORMATION), EVEN IF JEUNESSE OR OTHER
PERSONS CREATING OR TRANSMITTING THE INFORMATION SHALL HAVE BEEN ADVISED OF THE
POSSIBILITY OF SUCH DAMAGES. TO THE FULLEST EXTENT PERMITTED BY LAW, JEUNESSE OR OTHER
PERSONS CREATING OR TRANSMITTING THE INFORMATION SHALL HAVE NO RESPONSIBILITY OR
LIABILITY TO YOU OR ANYONE ELSE UNDER ANY TORT, CONTRACT, NEGLIGENCE, STRICT LIABILITY,
PRODUCTS LIABILITY OR OTHER THEORY WITH RESPECT TO ANY SUBJECT MATTER OF THIS
AGREEMENT OR TERMS AND CONDITIONS RELATED THERETO.

28

SECTION 7 PRODUCT GUARANTEES, RETURNS AND INVENTORY


REPURCHASE
7.1

Product Guarantee

Jeunesse offers a 100% 30-day money-back satisfaction guarantee (less shipping charges) to all
Preferred Customers, Online Customers, Retail Customers, and Distributors on their first purchase of
a particular Jeunesse product, the goods must be returned in a resalable condition. Subsequent
purchases may not be returned under this guarantee. This does not affect the statutory rights of the
Customer.

7.1.1

Cancellation of Consumer Contracts

Customers have a right to cancel any order and obtain a full refund by notifying their Jeunesse
Distributor within fourteen (14) days of the date of the contract, as stated on the Order Form and
Retail Sales Receipt. Customers who wish to cancel the contract must do so in writing and may
exercise their right by sending or delivering a written notice of cancellation to the person named
in the Order Form and Retail Sales Receipt, within the period of fourteen (14) days from the date
of the contract.
Where Customers have placed an order with their Jeunesse Distributor over the telephone or by
facsimile, they may cancel the order for any reason at any time within nine (9) working days of
delivery (or, if it is later, within fourteen [14] days of the order). Working days do not include
Saturdays, Sundays or bank holidays. Customers must give a notice of cancellation in writing within
the period specified above. Customers will receive a full refund of the price paid for the products
within thirty (30) days of notice being given in accordance with the terms of the Order Form and
Retail Sales Receipt. If Customers do cancel the order, they must take reasonable care of the
products both before cancellation and for at least twenty-one (21) days after cancellation.
Customers must return the products at their own expense and take reasonable care to ensure that
their Jeunesse Distributor receives the products and that the products are not damaged in transit.
Customers will be liable for any loss of or damage to the products as a result of any failure by them
to take reasonable care of the products. Customers may not cancel an order, contract or return
products for the supply of goods made to their specification or clearly personalised which by reason
of their nature cannot be returned or are liable to deteriorate rapidly.

7.1.2

Returns by Retail, Online and Preferred Customers

Jeunesse offers, through its Distributors, a 100% 30-day money-back guarantee to all Retail, Online
and Preferred Customers, on the first purchase of a Jeunesse product only (and only if the product is
in a Resalable Condition). Every Distributor is bound to honour the Retail, Online and Preferred
Customer guarantee. If, for any reason, a Retail, Online or Preferred Customer is dissatisfied with
any Jeunesse product, a Retail Customer may return the unused portion of the product to the
Distributor from whom it was purchased or, in the case of Online and Preferred Customers, to the
Company, within thirty (30) days, for a replacement, exchange or a full refund of the purchase price
(less shipping costs). This does not affect the statutory rights of Retail, Online or Preferred
Customers.

29

7.1.3 Returns by Distributors (Products Purchased for Personal


Consumption)
If a Distributor is unsatisfied with any Jeunesse product purchased for personal use, the Company
offers a 100% 30-day money-back guarantee (less shipping) on his or her first purchase of a Jeunesse
product. This guarantee is limited to the Distributors initial purchase of a Jeunesse product only.
Subsequent purchases may only be returned if faulty or defective or in accordance with Section 7.2
the Distributor has terminated the Agreement. At any time during the term of the contract, if
requested by a Distributor, Jeunesse will buy back any product returned by the Distributor which he
purchased at any time within one (90) days of the date of such request upon the terms set out under
paragraph 7.2 below.

7.1.4 Returns by Distributors (Products Returned by Personal Retail


Customers)
If a personal Retail Customer returns his or her purchase of a product to the Distributor from whom
it was purchased, the Distributor may return it to the Company for an exchange or refund (less
shipping). All products returned by personal Retail Customers must be returned to the Company
within fifteen (15) days from the date on which it was returned to the Distributor.

7.2

Return of Inventory and Sales Aids by Distributors on Termination

The Distributor has the right within a period of fourteen (14) days of entering into the Agreement to
cancel the Agreement without penalty by written notice of termination and (i) to receive a refund of
all monies paid in connection with his or her joining the Jeunesse programme, (ii) to return any
products (including training and promotional materials, business manuals and kits) purchased within
that period and which remain unsold provided that such unsold products are in the condition in
which they were in at the time of purchase, (whether or not their external wrappings have been
broken) and to require Jeunesse to refund an amount equal to one hundred per cent (100%) of any
monies paid in respect of such products, and (iii) to cancel any services ordered within that period
under the trading scheme and to recover any monies paid in respect of such services not yet
supplied to the Distributor. After termination, the Distributor understands that he or she must wait
twelve (12) months from the date of termination of the Agreement before re-applying to become a
Distributor.
Where the Distributor terminates the Agreement more than fourteen (14) days after entering into it,
the Distributor shall have the right to return to Jeunesse any products he or she has purchased
within a period of ninety (90) days prior to such termination and which remain unsold and to receive
from Jeunesse the price (inclusive of VAT) which he or she paid for the products, less
(i) in the case of any products, the condition of which has deteriorated due to an act or
default on the part of the Distributor, an amount equal to the diminution in their value
resulting from such deterioration; and
(ii) a reasonable handling charge of ten per cent (10%) of the price.
Where Jeunesse has terminated the Agreement, the Distributor shall have the right to return to
Jeunesse any products he or she has purchased within a period of ninety (90) days prior to such
termination and which remain unsold and to receive from Jeunesse the price (inclusive of VAT)

30

which the Distributor paid for the products together with any costs incurred by him or her for
returning the products to the Company; any such refund shall be on terms whereby the products not
already held by Jeunesse will be delivered within twenty-one (21) days of such termination at
Jeunesses expense to the address set out in the Application and Agreement Form or as notified by
Jeunesse to the Distributor from time to time.
Any such refund shall be on terms whereby the purchase price is payable upon delivery of the
products or if the products are already held by Jeunesse forthwith. Jeunesse shall be entitled to
request proof of ownership, e.g. sale receipts for the products the Distributor requires Jeunesse to
buy back in accordance with the Agreement.
Bonuses or commissions paid to the Distributor on products returned by and refunded to
Distributors in the Downline Organisation of the Distributor, within the preceding one hundred and
twenty (120) days shall be repayable by the Distributor and may be deducted from the Distributors
account with Jeunesse at any time where a Distributor in the Downline Organisation terminates
his/her Distributor Agreement or it is terminated by Jeunesse.
Payments of refunds will be made in the same form as the original payment and in accordance with
Jeunesse termination procedure in force from time to time.

7.3

Procedures for All Returns

The following procedures apply to all returns for refund, repurchase, or exchange:
(a) All merchandise must be returned by the Distributor or customer who purchased it directly
from Jeunesse.
(b) All products to be returned must have a Return Merchandise Authorisation number which is
obtained by calling the Customer Service Department. This Return Merchandise
Authorisation number must be written on each carton returned.
(c) The return is accompanied by:
i. a copy of the original dated retail sales receipt; and
ii. the unused portion of the product in its original container.
(d) Proper shipping carton(s) and packing materials are to be used in packaging the product(s)
being returned for replacement, and the best and most economical means of shipping is
suggested. All returns must be shipped to Jeunesse shipping pre-paid. Jeunesse does not
accept shipping-collect packages. The risk of loss in shipping for returned product shall be
on the Distributor/Customer. If returned product is not received by the Companys
Distribution Centre, it is the responsibility of the Distributor to trace the shipment.
(e) If a Distributor is returning merchandise to Jeunesse that was returned to him or her by a
personal Retail Customer, the product must be received by Jeunesse within ten (10) days
from the date on which the Retail Customer returned the merchandise to the Distributor,
and must be accompanied by the sales receipt the Distributor gave to the Retail Customer at
the time of the sale.

31

SECTION 8 DISPUTE RESOLUTION AND DISCIPLINARY PROCEEDINGS


8.1

Disciplinary Sanctions

Violation of the Agreement, these Policies and Procedures, or any illegal, fraudulent, deceptive or
unethical business conduct by a Distributor may result, at Jeunesses discretion, in one or more of
the following corrective measures:
(a)
(b)
(c)
(d)
(e)

(f)
(g)
(h)
(i)

8.2

Issuance of a written warning or admonition;


Requiring the Distributor to take immediate corrective measures;
Imposition of a fine, which may be withheld from bonus and commission cheques;
Loss of rights to one or more bonus and commission cheques;
Jeunesse may withhold from a Distributor all or part of the Distributors bonuses and
commissions during the period that Jeunesse is investigating any conduct allegedly violative
of the Agreement. If a Distributors business is terminated for disciplinary reasons, the
Distributor will not be entitled to recover any commissions withheld during the investigation
period;
Suspension of the individuals Distributor Agreement for one (1) or more pay periods;
Involuntary termination of the offenders Distributor Agreement;
Any other measure expressly allowed within any provision of the Agreement or which
Jeunesse deems practicable to implement and appropriate to equitably resolve injuries
caused partially or exclusively by the Distributors policy violation or contractual breach;
In situations deemed appropriate by Jeunesse, the Company may institute legal proceedings
for monetary and/or equitable relief.

Grievances and Complaints

When a Distributor has a grievance or complaint with another Distributor regarding any practice or
conduct in relation to their respective Jeunesse businesses, the complaining Distributor should first
report the problem to his or her Sponsor who should review the matter and try to resolve it with the
other party's upline Sponsor. If the matter cannot be resolved, it must be reported in writing to the
Customer Service Department at the Company. The Customer Services Department will review the
facts and attempt to resolve it. If it is not resolved, it will be referred to the Compliance Department
for final review and determination.

8.3

Compliance

The Compliance Department reviews evidence, deliberates, and responds to current outstanding
issues on a collective basis. The purpose of the Compliance Department is to: (1) review appeals of
disciplinary sanctions; and (2) review matters between Jeunesse Distributors that have not been
resolved following referral to the Customer Service Department.
A Distributor may submit a written request for a telephonic or in-person hearing within seven (7)
business days from the date of: (1) the written notice by Jeunesse of a disciplinary sanction; or (2)
the written decision of Customer Services regarding disputes between Distributors. All
communication with Jeunesse and the Distributor(s) seeking resolution of a dispute must be in
writing. It is within the Compliance Departments discretion whether a claim is accepted for review.
If the Compliance Department agrees to review the matter, it shall schedule a hearing within thirty
32

(30) days of receipt of the Distributors written request. All evidence (e.g., documents, exhibits, etc.)
that a Distributor desires to have considered by the Compliance Department must be submitted to
Jeunesse no later than seven (7) business days before the date of the hearing. The Distributor shall
bear all of the expenses related to his or her attendance and the attendance of any witnesses he or
she desires to be present at the hearing. The decision of the Compliance Department will be final
and subject to no further review. During the pendency of the claim before the Compliance
Department, the Distributor waives his or her right to pursue arbitration or any other remedy.
Following issuance of a disciplinary sanction, the disciplined Distributor may appeal the sanction to
the Compliance Department. The Distributor's appeal must be in writing and received by the
Company within seven (7) days from the date of Jeunesse's notice of the disciplinary sanction. If the
appeal is not received by Jeunesse within the seven (7) day period, the sanction will be final. The
Distributor must submit all supporting documentation with his or her appeal correspondence. If the
Distributor files a timely appeal of a disciplinary sanction, the Compliance Department will review
and reconsider the sanction, consider any other appropriate action, and notify the Distributor in
writing of its decision.

8.4

Governing Law

The terms and provisions of the Agreement including these policies and procedures and any dispute
arising there under shall be governed by English law and the parties hereby submit to the exclusive
jurisdiction of the English courts.

SECTION 9 ORDERING
9.1

Preferred Customers

Distributors are encouraged to promote Jeunesses Preferred Customer Programme to Retail


Customers (were legal to have retail customers). Under the Preferred Customer Programme, an
individual may sign-up to have a pre-selected package of Jeunesse products delivered to his or her
home automatically each month. Not only does this take all of the hassle out of buying, it also
allows the customer to take advantage of the discounted Preferred Customer prices.

9.2

Online Customers

Customers placing orders for Jeunesse products through a Distributors replicated Jeunesse website
are referred to herein as Online Customers. Purchases made by such customers through a
Distributors Jeunesse website are used in calculating the Distributors PSV.

9.3

Purchasing Jeunesse Products

Each Distributor should purchase his or her products directly from Jeunesse. If a Distributor
purchases products from another Distributor or any other source, the purchasing Distributor will not
receive the PSV that is associated with that purchase.

33

9.4

General Order Policies

On mail orders with invalid or incorrect payment, Jeunesse will attempt to contact the Distributor by
phone, and/or mail to try to obtain another payment. If these attempts are unsuccessful after five
(5) working days the order will be returned unprocessed. No cash on delivery orders will be
accepted. Jeunesse maintains no minimum order requirements. Orders for products and sales aids
may be combined.

9.5

Shipping and Back-order Policy

Jeunesse will normally ship products within three (3) business days from the date on which it
receives an order. Jeunesse will expeditiously ship any part of an order currently in stock. If,
however, an ordered item is out-of-stock, it will be placed on back-order and sent when Jeunesse
receives additional inventory. Distributors will be charged and given PSV on back-ordered items
unless notified on the invoice that the product has been discontinued. Jeunesse will notify
Distributors and Preferred and Online Customers if items are back-ordered and are not expected to
ship within thirty (30) days from the date of the order. An estimated shipping date will also be
provided. Back-ordered items may be cancelled upon a Preferred or Online Customers or
Distributors request. Preferred Customers, Online Customers, and Distributors may request a
refund, credit on account, or replacement merchandise for cancelled back-orders. If a refund is
requested, the Distributors PSV will be decreased by the amount of the refund in the month in
which the refund is issued.

9.6

Confirmation of Order

Failure to notify Jeunesse of any shipping discrepancy or damage to an order within thirty (30) days
of shipment will cancel a Distributors right to request a correction.

SECTION 10 PAYMENT AND SHIPPING


10.1

Deposits

No monies should be paid to or accepted by a Distributor for a sale to a personal Retail Customer
except at the time of product delivery. Distributors should not accept monies from Retail Customers
to be held for deposit in anticipation of future deliveries.

10.2

Insufficient Funds

It is the responsibility of each Distributor to ensure that there are sufficient funds or credit available
in his or her account to cover the monthly Autoship order. Jeunesse will not contact Distributors in
regard to orders cancelled due to insufficient funds or credit. This may result in a Distributors
failure to meet his or her PSV requirements for the month.

34

10.3

Returned Cheques

All cheques returned by a Distributors bank for insufficient funds will be re-submitted for payment.
A $25.00 returned cheque fee will be charged to the account of the Distributor. After receiving a
returned cheque from a Distributor, all future orders must be paid by credit card or debit card. Any
outstanding balance owed to Jeunesse by a Distributor for Non Sufficient Funds (NSF) cheques and
returned cheque fees will be withheld from subsequent bonus and commission cheques.

SECTION 11 INACTIVITY AND TERMINATION


11.1

Effect of Termination

So long as a Distributor complies with the terms of the Distributor Agreement and these Policies and
Procedures, Jeunesse shall pay commissions to such Distributor in accordance with the Financial
Rewards Plan. A Distributors bonuses and commissions constitute the entire consideration for the
Distributor's efforts in generating sales and all activities related to generating sales (including
building a Downline Organisation). Following a Distributors non-renewal of his or her Distributor
Agreement, cancellation for inactivity, or voluntary or involuntary termination of his or her
Distributor Agreement (all of these methods are collectively referred to as termination), the
former Distributor shall have no right, title, claim or interest to the Marketing Organisation which he
or she operated, or any commission or bonus from the sales generated by the Marketing
Organisation. A Distributor whose business is terminated will permanently lose all rights as a
Distributor. This includes the right to sell Jeunesse products and the right to receive future
commissions, bonuses, or other income resulting from the sales and other activities of the
Distributors former downline sales organisation. In the event of termination, Distributors agree to
waive all rights they may have, including but not limited to property rights, to their former Downline
Organisation and to any bonuses, commissions or other remuneration derived from the sales and
other activities of his or her former Downline Organisation.
Following a Distributors termination of his or her Distributor Agreement, the former Distributor
shall not hold himself or herself out as a Jeunesse Distributor and shall not have the right to sell
Jeunesse products. A Distributor whose Distributor Agreement is terminated shall receive
commissions and bonuses only for the last full pay period he or she was active prior to termination
(less any amounts withheld during an investigation preceding an involuntary termination).

11.2

Termination Due to Inactivity

It is the Distributor's responsibility to lead his or her Marketing Organisation with the proper
example in personal production of sales to end consumers. Without this proper example and
leadership, the Distributor will lose his or her right to receive commissions from sales generated
through his or her Marketing Organisation. Therefore, Distributors who personally generate less
than 60 PSV for any pay period will not receive a commission for the sales generated through their
Marketing Organisation for that pay period. If a Distributor has not fulfilled the minimum PSV
requirement for a period of three (3) consecutive calendar months (and thus become inactive), his
or her Distributor Agreement shall be terminated for inactivity. The termination will become
effective on the day following the last day of the third month of inactivity.

35

11.3

Involuntary Termination

A Distributors violation of any of the terms of the Agreement, including any amendments that may
be made by Jeunesse in its sole discretion, may result in any of the sanctions listed in Section 8.1,
including the involuntary termination of his or her Distributor Agreement. Termination shall be
effective on the date on which written notice is mailed, faxed, or delivered to an express courier, to
the Distributors last known address (or fax number).

11.4

Voluntary Termination

A participant in this network marketing plan has a right to cancel at any time without penalty,
regardless of reason by giving fourteen (14) days notice to Jeunesse. Cancellation must be
submitted in writing to the Company at its principal business address. The written notice must
include the Distributors signature, printed name, address, and Distributor I.D. Number. If a
Distributor is on the Autoship Programme, the Distributors Autoship agreement shall continue in
force unless the Distributor also specifically requests that Autoship agreement also be cancelled.

11.5

Non-renewal

A Distributor may also voluntarily cancel his or her Distributor Agreement by failing to renew the
Agreement on its anniversary date. The Company may also elect not to renew a Distributor's
Agreement upon its anniversary date.

SECTION 12 DEFINITIONS
Active Distributor a Distributor who satisfies the minimum Personal Sales Volume requirements,
as set forth in the Jeunesse Financial Rewards Plan, to ensure that he or she is eligible to receive
bonuses and commissions.
Active Rank The term active rank refers to the current rank of a Distributor, as determined by
the Jeunesse Financial Rewards Plan, for any calendar month. To be considered active relative to a
particular rank, a Distributor must meet the criteria set forth in the Jeunesse Financial Rewards Plan
for his or her respective rank. (See the definition of Rank below.)
Agreement The contract between the Company and each Distributor includes the Distributor
Application and Agreement, the Jeunesse Policies and Procedures, the Jeunesse Financial Rewards
Plan , and the Business Entity Registration Form (where appropriate), all in their current form and as
amended by Jeunesse in its sole discretion. These documents are collectively referred to as the
Agreement.
Commissionable Products all Jeunesse products on which commissions and bonuses are paid.
Starter Kits and sales aids are not commissionable products.
Company The term Company as it is used throughout the Agreement means Jeunesse Global
(Europe) Limited.

36

Downline See Marketing Organisation below.


Downline Activity Report a monthly report generated by Jeunesse that provides critical data
relating to the identities of Distributors, sales information, and enrolment activity of each
Distributors Marketing Organisation. This report contains confidential and trade secret information
which is proprietary to Jeunesse.
Downline Leg Each one of the individuals enrolled immediately underneath you and their
respective Marketing Organisations together represent one leg in your Marketing Organisation.
DSA Direct Selling Association.
End Consumer a person who purchases Jeunesse products for the purpose of personally
consuming them rather than for resale to someone else.
Immediate Household heads of household and dependent family members residing in the same
house.
Level The layers of downline Distributors in a particular Distributors Marketing Organisation. This
term refers to the relationship of a Distributor relative to a particular up line Distributor, determined
by the number of Distributors between them who are related by sponsorship. For example, if A
sponsors B, who sponsors C, who sponsors D, who sponsors E, then E is on As fourth level.
Marketing Organisation the Preferred Customers and Distributors sponsored below a particular
Distributor.
Official Jeunesse Material literature, CD or DVD, and other materials developed, printed,
published and distributed by Jeunesse to Distributors.
Personal Production moving product to an end consumer for personal use.
Personal Sales Volume (PSV) the commissionable value of products sold in a calendar month: (1)
by the Company to a Distributor; and (2) by the Company to the Distributors personally enrolled
Preferred Customers and Online Customers.
Preferred Customer a customer who has executed a Jeunesse Customer Agreement and who
agrees to an Autoship purchase of Jeunesse products each calendar month.
Rank the title that a Distributor has achieved pursuant to the Jeunesse Financial Rewards Plan.
Recruit For purposes of Jeunesses Conflict of Interest Policy (Section 3.8), the term recruit
means actual or attempted solicitation, enrolment, encouragement, or effort to influence in any
other way, either directly or through a third party, another Jeunesse Distributor, Preferred Customer
to enrol or participate in another multilevel marketing, network marketing or direct sales
opportunity. This conduct constitutes recruiting even if the Distributors actions are in response to
an inquiry made by another Distributor or Preferred Customer.
Resalable Product and sales aids shall be deemed "resalable" if each of the following elements is
satisfied: 1) they are unopened and unused; 2) packaging and labelling has not been altered or
damaged; 3) the product and packaging are in a condition such that it is a commercially reasonable
practice within the trade to sell the merchandise at full price; 4) products are returned to Jeunesse

37

within one (1) year from the date of purchase; 5) the product expiration date has not elapsed; and 6)
the product contains current Jeunesse labelling. Any merchandise that is clearly identified at the
time of sale as nonreturnable, discontinued, or as a seasonal item, shall not be resalable.
Retail Customer an individual who purchases Jeunesse products from a Distributor, retailing
products in this way is not allowed in an e-commerce country.
Retail Profit the difference between the wholesale price of products and the retail price a
Distributor receives for products when they are resold.
Sponsor a Distributor who enrols another Distributor into the Company and is listed as the Sponsor
on the Distributor Application and Agreement. The act of enrolling others and training them to
become Distributors is called sponsoring.
Starter Kit a selection of Jeunesse training materials and business support literature that each new
Distributor is required to purchase. The Starter Kit is sold to Distributors at the Companys cost.
Suggested Retail Price (SRP) or Recommended Retail Price (RRP) the price at which Jeunesse
suggests Distributors sell a particular product to Retail Customers. Notwithstanding the SRP/RRP,
Distributors are always free to sell Jeunesse products at any price they choose.
Upline This term refers to the Distributor or Distributors above a particular Distributor in a
sponsorship line up to the Company. Conversely stated, it is the line of sponsors that links any
particular Distributor to the Company.
VAT Value Added Tax.
Wholesale Price (Wholesale) The price of the products that is paid to the Company by
Distributors. The wholesale price is also called Distributor Cost. All commissions and bonuses are
paid on the wholesale value of Jeunesse products.
1 (4) European Generic - Policies and Procedures - February 2011

38

You might also like