TABLE OF CONTENTS - CaliVita · CaliVita® International in a particular country, and that is, or...

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www.calivita.com

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TABLE OF CONTENTS

IMPORTANT NOTICE 2

n SECTION 1

GLOSSARY OF TERMS 3

n SECTION 2

DETERMINATION, MODIFICATION, AND

ACCEPTANCE OF THE REGULATIONS 5

n SECTION 3

TERMS OF DISTRIBUTORSHIP 6

n SECTION 4

DISTRIBUTOR ACTIVITIES 9

n SECTION 5

DISTRIBUTOR RESPONSIBILITIES 9

n SECTION 6

BONUS POINTS 12

n SECTION 7

ACHIEVEMENT LEVELS 12

n SECTION 8

CONSUMER DISTRIBUTOR DISCOUNTS 12

n SECTION 9

NOMINAL ACHIEVEMENT LEVEL BONUS

PAYMENTS 13

n SECTION 10

PROGRESSIVE REWARD BONUS 15

n SECTION 11

TRIPLE LINE BONUS 16

n SECTION 12

MANAGER STATUS – OVERVIEW 16

n SECTION 13

EXCLUSIVE PAYMENT ENTITLEMENTS FOR

MANAGERS 17

n SECTION 14

MANAGER STATUS – QUALIFICATION AND

REWARDS 20

n SECTION 15

ETHICS AND DISCIPLINARY COMMITTEE 26

n SECTION 16

PRODUCT GUARANTEE 27

IMPORTANT NOTICE

The CaliVita® International Network Rules and Regulations are intended to provide a secure and equitable environment in which each and every Network Distributor can build a successful business based on their own honest efforts. Distributors and/or Distributor applicants must read, fully understand, and agree to the terms of this document in its entirety, as it represents an integral part of the Distributorship agreement. Each country may have variances in these Rules and Regulations that apply only to that particular country. Distributors must be familiar with the Rules and Regulations applicable to the country in which they reside and/or distribute Network products and/or conduct Network building activity.

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n SECTION 1

GLOSSARY OF TERMS

1.00 - Following is a glossary and explanation of some of the terms used in this document. This glossary and explanation of the terms contained herein, form an integral and inalien-able part of the CaliVita® International Network Rules and Regulations.

1.01 Network – The CaliVita® International Network, comprised of its collective worldwide Distributors through which its products are distributed. The Network operates in a substantially uniform manner in all countries where its Distributors (which see) reside and/or conduct business.

1.02 Company – The company and/or companies legally entitled to use the name and trademarks of CaliVita® International in a particular country, and that is, or are, responsible for administration of the Network in that country.

1.03 Regulations – The collective set of rules and regulations governing all aspects related to the dis-tribution of Network products, including, but not limited to, this document.

1.04 Distributor(s) – Individuals, companies or organizations that are registered with the Company as independent Distributors of Network products. For purposes of the Regulations, the term “Distributor” applies to individual Distributors, Distributor companies or organizations, and to

Representatives of Distributor companies or organi-zations (see “Representative” below). Use of the term “Distributor(s)” and/or “Representative(s)” in this do-cument, does not mean, nor is it intended to imply, that such Distributors and/or Representatives are employed by the Company or have any connection to the Company whatsoever, other than being inde-pendent, self-employed Distributors of Network products. Distributors fall into three separate cate-gories, Consumer Distributor, Full Distributor, and Manager (which see). Categories are determined by the total of Group Bonus Points (GBP) and Personal Bonus Points (PBP) (which see), earned by the Distributor over a specified time, as well as other factors.

1.05 Consumer Distributor – those Distributors who qualify at the 4%, 7%, or 10% levels, known as the “Consumer Achievement Levels”, entitling them to additional discounts to the Distributor price.

1.06 Full Distributor – those Distributors who qualify at the 12%, 15%, 18%, or 21% levels, known as the “Nominal Achievement Levels”, entitling them to cash bonus payments from the Company, if cer-tain conditions are met.

1.07 Manager – designation for Distributors who achieve a certain level of business, and meet stipu-lated conditions. There are 16 different levels of Manager status, each level having its own condi-tions for qualification and its own special rewards as outlined in the Manager Status – Qualification and Rewards section of this document (15.00)

1.08 Level(s) – The predetermined, progressive percentages that a Distributor can earn either as discounts in the case of Consumer Distributors, or as cash bonus payments in the case of Full Distributors or Managers. The levels are determined by the total of Group Bonus Points (GBP) and Personal Bonus Points (PBP) in a given month, as well as other fac-tors. The levels are 4%, 7%, 10%, 12%, 15%, 18%, and 21%. The first three levels of 4%, 7%, and 10% are referred to as the Consumer Achievement Levels, and the next four levels of 12%, 15%, 18%, and 21% are referred to as the Nominal Achievement Levels. Please refer to section 7.00 Achievement Levels.

1.09 Representative – a person designated by a Distributor company or organization to conduct activity within the Network on behalf of, and for the benefit of the Distributor company or organization. The term Distributor(s), used in any and all of the provisions of the Regulations, should be construed as extending to, and including Representatives of Distributor companies or organizations, notwith-standing the fact that this may, or may not be expressly stated in a particular provision.

1.10 Distributor Code – a Distributor’s unique ten (10) digit number that allows the Distributor to pur-chase Network products at the Distributor price (which see) and also allows the Company and/or the Network to track bonus points and other Distributor entitlements.

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1.11 Distributor price – the price at which Distributors are entitled to buy Network products from the Company. The Network’s official retail price is 33% higher than the Distributor price.

1.12 Distributorship year – Distributorship in the Network is of one year duration, and must be renewed annually. The Distributorship year usually corresponds to the calendar year (ie: Jan. 1st to Dec. 31st of a given year).

1.13 Fiscal year – the financial year of the company that administers the Network in a particular country. The fiscal year is the period used for determining a Distributor’s annual achievement level, and any entitlements that may be specifically related there-to. The fiscal year does not necessarily correspond to the Distributorship year and/ or the calendar year.

1.14 Sponsor lines – as a person, company or organization can only become a Distributor of Network products through sponsorship by an exist-ing Distributor, there exists a connection between a sponsoring Distributor, the new Distributor they sponsored, and all people, companies or organiza-tions that subsequently become Distributors as a direct or indirect result of the sponsorship activities of the new Distributor.

1.15 Group – although there is a relationship between a Distributor and their higher Sponsors, in this document the term “Group” refers only to a Distributor’s “downline”….that is, the collective Distributors that became Distributors as a direct or

indirect result of the sponsorship activities of a par-ticular Distributor. The collective Network business done by a Distributor’s Group is used to determine Group Bonus Points (which see) and Group Commercial Points (which see) and these, in turn, are added to a Distributor’s Personal Bonus Points (which see) and Personal Commercial Points (which see) to determine a Distributor’s discount or bonus payment entitlement for a particular month.

1.16 Bonus Points (BP) – each product offered through the Network is assigned a certain amount of bonus points that are earned by purchase of that product. Bonus points earned by a Distributor, together with bonus points earned by the Distributor’s Group, are tallied by the Company, and are one of the main factors used for determining the monthly achievement level of a Distributor.

1.17 Personal Bonus Points (PBP) – the bonus points a Distributor earns from their own personal purchase of product.

1.18 Group Bonus Points (GBP) – the collective bonus points earned by personal purchases of the Distributor, by the collective purchases of the direct-ly sponsored Distributor’s Group, and directly spon-sored Members.

1.19 Personal Group Bonus Points (PGBP) – the bonus point amount calculated by deducting the GBP of all directly sponsored 21% Groups from the total GBP.

1.20 Commercial Points (CP) – each product offered through the Network is assigned a certain amount of commercial points, which are used by the company to calculate a Distributor’s monthly entitlements. Commercial points may or may not correspond to bonus points.

1.21 Personal Commercial Points (PCP) - the commercial points a Distributor earns from their own personal purchase of product.

1.22 Group Commercial Points (GCP) - the com-mercial points earned by the collective purchases of the Distributor’s Group.

1.23 Personal Group Commercial Points (PGCP) – the commercial point amount calculated by deducting the GCP of a directly sponsored 21% Group from the total GCP.

1.24 CaliNews – newsletter published by the CaliVita® International Network in cooperation with the Company.

1.25 Progressive reward system - All Network members who achieve a “Distributor” status have an option to increase their nominal payment for a cer-tain percentage, if they meet the conditions of the Progressive Reward System.

1.26 Minimum guarantee – If the Palm Manager’s direct line reaches the PM level itself, instead of a Manager premium, a right to Minimum Guarantee payment will be achieved. That is the minimal value

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which a manager provides for his/her higher sponsor.

1.27 Achievment level – Within a global CaliVita® International system, a 21% level can be achieved with purchasing a 95.000 GBP worth of products, while the USD value needed for such achievement is called the “achievement level”. Company deter-mines the “nominal achievement level” for each country individually.** the average of all nominal achievement levels in the different countries is called the “average glo-bal achievement level”.

n SECTION 2

DETERMINATION, MODIFICATION, AND ACCEPT-

ANCE OF THE REGULATIONS

2.01 Determining ALL Rules, Regulations and ope-rating conditions of the Network is the exclusive right of the CaliVita® International System Owner. The administration of such Regulations and ope-rating conditions, is the exclusive right of the Company.

2.02 A modified, amended, or updated version of the Regulations (new Regulations) becomes effec-tive on the eighth (8th) calendar day following the date of posting of the new Regulations on the Network’s official website (www.calivita.com). The new Regulations automatically supercede all pre-vious versions of the Regulations, on the day the new Regulations become effective as outlined in this clause.

2.03 Distributors are wholly responsible for cogni-zance of the new Regulations prior to the date on which the new Regulations become effective, and compliance with the new Regulations on and after the date that the new Regulations become effective, without any notification from the Company other than as outlined in clause 2.02.

2.04 The new Regulations will be considered as expressly accepted by any and all Distributors, unless a Distributor provides a written statement to the con-trary to the Company at its head office for the country, via e-mail, post, courier or personal delivery within the following time limits: E-mails must be sent, as evi-denced by the date and time of the sender’s transmis-sion indicated on the e-mail, within five (5) business days following the date on which the modification takes effect: Mailed notifications must bear a postmark showing a date within five (5) business days following the date on which the modification takes effect: Couriered notifications must be picked up by the cou-rier at the sender’s address, as indicated by the date on the waybill, within five (5) business days following the date on which the modification takes effect: Notifications delivered personally by the Distributor, must be delivered to the Company’s head office for the country, within five (5) business days following the date on which the new Regulations take effect.

2.05 Notwithstanding the provisions of section 2.04, a Distributor, will be considered as expressly accept-ing any and all new Regulations in their entirety, immediately upon accepting any payment from the Company.

2.06 Failure by the Company and/or the Network to exercise any power granted to it by the Regulations, or the allowance by the Company and/or the Network of an action that is at variance with the provisions of the Regulations, or the existence of a practice or custom that is at variance with the provi-sions of the Regulations, does not constitute a waiver by the Company, nor the Network of its right to require full compliance from any and all Distributors with any and all provisions of the Regulations.

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2.07 The Regulations set forth in this document are intended to be in accordance with all laws and regu-lations in any and all jurisdictions in which Network products are distributed and/or the Company administers Network affairs. In the event that any provision of the Regulations, and the application thereof, is found to be at variance with applicable laws or regulations in any jurisdiction, the provision, and the application thereof, will be in accordance with the applicable laws or regulations of that jurisdiction.

2.08 An alteration of any provision, or the applica-tion thereof, for the purpose of compliance in a particular jurisdiction as described in clause 2.07, does not alter any non-affected provision of the Regulations, or the application thereof, in that juris-diction. Moreover, such alteration in one jurisdiction, does not affect any provision of the Regulations, or the application thereof, in other jurisdictions.

n SECTION 3

TERMS OF DISTRIBUTORSHIP

3.01 Distributorship in the Network can be acquired by completion and signing of the Network applica-tion form, combined with the purchase of any Network product up to a certain CP value. The Distributorship becomes valid and effective upon issuance of a Distributor Code by the Company on behalf of the Network.

3.02 A company or organization applicant must provide, with the application form, proof of

authority of the individual(s) signing the application form, and other documents, on behalf of the com-pany or organization applicant. The proof has to indicate that the signing individual(s) has the pro-perly constituted authority to sign on behalf of,and to enter the company or organization into legally binding contracts. Proof should include, where applicable, a copy of the articles of incorpora-tion or association, a copy of the charter, a copy of the partnership or syndication or trust agreement, as well as a duly executed and signed resolution or authorization from the company or organization that the individual(s) is empowered to sign on behalf of the company or organization.

3.03 Acceptance of Distributorship in the Network by completion and signing of the Network applica-tion form, and/or use of a Distributor Code to effect purchases of Network product, constitutes accep-tance by the Distributor of the terms and conditions of Distributorship in the Network as outlined in all Company and/or Network publications, as well as an undertaking by the Distributor to abide by all such terms and conditions.

3.04 All Distributor Codes remain the property of the Company. A Distributor or Representative may only use the Distributor Code that was issued to them by the Company at the time of initially becom-ing a Distributor in the Network.

3.05 The right to use a Distributor Code may only be transferred or assigned, whether by sale, gift, inheritance,

change in legal status of a Distributor company or organization, or any other circumstance whatsoever, by the prior written consent of the Company.

3.06 In order for the Network to function, it is neces-sary to transfer information between computers within the Network, and/or its administrative com-panies and/or its affiliated entities. The Distributor agrees to allow the Company and/or the Network to transfer the Distributor’s information to, or between, any and all of the Company’s and/or the Network’s affiliates, subsidiaries and associated entities, for the purpose of normal conduct of Network business affairs.

3.07 Newly established distributorship is valid until the end of the calendar year, except in the case of Distributorship granted between July 1st and December 31st of a particular year. In such case, the initial Distributorship shall be valid until the end of the following calendar year.

3.08 Renewal of a Distributorship for the following year is affected by purchase of network products by the Distributor, to a certain designated level of CP. There are two options of distributorship renewal:

3.08.01 Distributors can renew their distributor-ship for next year with cumulative CP: in a given year, when a distirbutor’s cumulative CPs of pur-chases (on one or more invoices) reaches a cer-tain designated level of CP, the distributorship is renewed for the next year.

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3.08.02 If the cumulative CPs of purchases didn’t reach the level required for renewal dur-ing the year, distributorship can be renewed in the period between September 1st of the cur-rent distributorship year, up to and including December 31st when Distributors can renew their distributorship through a purchase of net-work products on one invoice, to a certain des-ignated level of CP.

3.09 Initial purchase of Network products for the purpose of acquiring distributorship or for purpose of Distributorship renewal in the Network, earns all of BP values.

3.10 If a distributorship is not renewed until the end of the renewal period (December 31st of the renew-al year), the non-renewing distributors can still reac-tivate their distributorship until the end of the se-cond calendar year following their last purchase.

These distributors will be placed into ’pending sta-tus’, where the following rules apply:

3.10.01 Network structure is rearranged according to current renewals. Distributors with pending sta-tus will lose their network and all related rights, except the right to keep purchasing Network prod-ucts from the Company at the Distributor price, and the right to sponsor a new member.

3.10.02 The distributors with pending status will be assigned a sponsor – always the first renewing member in their upline

3.10.03 Distributors with pending status can still make purchases at distributor prices and all BP and CP will be credited to the network, however they will loose their network and all membership rights, and it cannot be redeemed later (They will still receive product and company information online, but not the Calinews).

3.10.04 Distributors can retain their pending status until the end of the second calendar year, following the year in which last purchase was made.

3.10.05 Distributors with pending status will be reactivated to their full distributorship after a) their cumulated purchases in a calendar year reach the required CP value and b) they sponsor a full right member.

3.10.06 In the first following year after loosing distributorship, in the period between January 1st and June 30th, reactivation can only take place under the same sponsor, as when the member was in the pending status. If the dis-tributorship hasn’t been reactivated until the fol-lowing July 1st after becoming passive, the member can freely register under a new sponsor from that point on.

3.10.07 The reactivated distributorship is valid only until the end of the given year, that is, after reactivation of the distributorship, it still has to be renewed for the next year, if the member wishes to keep it for the next year. Once a distributorship

is valid, the reactivated member can use the pos-sibilities of cumulated distributorship renewal. The purchase value of the invoice for reactivating is credited to cumulated value.

3.11 The Distributor is obliged to report to the Company, any and all changes to the information provided on the Network application form, includ-ing a change in the Distributor’s government taxa-tion status, at the earlier of the 5th day of the month immediately following the month in which the change takes place, or within 14 calendar days of the date on which the change takes place. Any and all consequences that may arise as a result of the Distributor’s failure to provide the Company and the Network with timely notification of a change in the Distributor’s information and/or status as outlined in this clause, is the sole responsibility and liability of the Distributor.

3.12 Distributorship may be cancelled by the Distributor via written request addressed to the Network and submitted to the Company. Upon noti-fication by the Company that Distributorship has been terminated, the Distributor who requested the cancellation will immediately cease to possess all the rights, obligations, and privileges of Distri-butorship, including the right to use the Distributor Code.

3.13 The Network and/or the Company reserves the right to reject a Distributorship application, a Distributorship renewal, or to terminate an existing Distributorship, for any reason whatsoever. In cases where a Distributorship renewal has been rejected,

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or an existing Distributorship terminated, the sub-ject Distributor will immediately cease to possess all the rights and privileges of Distributorship, as well as cease to possess any present or future entitlements from the Network and/or the Company, other than such undischarged entitlements that have been fully earned by the Distributor and acknowledged by the Company, up to and including the date prior to the date of termination or non-renewal.

3.14 A Distributor who has requested a cancellation of their Distributorship, or had his, her or its Distri-butorship terminated by the Network and/or the Company, may re-apply to join the Network after a period of six (6) months have elapsed since Distributorship termination. If the application to rejoin is accepted by the Network through the Company, the previous Distributor rejoins as a new Distributor without any relationship with their pre-vious sponsor line or Group.

3.15 The following may become Distributors:

3.15.1 any person of legal “adult” age.

3.15.2 a company or organization with separate legal entity, registered and entered into the records in the country in which said company or organization applies to become a Distributor.

3.15.3 a company or organization without sepa-rate legal entity, registered and entered into the Records in the country in which said company or organization applies to become Distributor.

3.16 A Distributor may only have one Distributorship in the Network. If a Distributor has a Distributorship in the Network, the Distributor or, in the case of a Distributor company or organization, its Representative(s), may not activate Network busi-ness under another, different Distributor Code.

3.17 A Distributor company or organization may designate, and register with the Company, a maxi-mum of two people as Representatives. The Distributor company or organization agrees that the designation and registration of such Representative, or Representatives, constitutes legal empowerment by the Distributor company or organization of the Representative(s) on its behalf, with regard to all Company and Network activities.

3.18 If a Distributor company or organization has registered two Representatives with the Company, then the two Representatives will have an equal right to use the Distributor Code and equal right to participate, upon qualification by and/or invitation to the Distributor, at Company and/or Network events.

3.19 Representatives of Distributor companies or organizations are bound by the Regulations and the same rules of conduct as the Distributor itself, whether a company or individual Distributor. The Distributor company or organization, it’s owners, senior officers, and/or directors, are fully responsible for, and must be cognizant at all times, of the actions of it’s Representative(s) with regard to all Network activity undertaken by the Representative(s).

3.20 Representatives of Distributor companies or organizations shall not become Distributors in their own right.

3.21 With regard to company or organization Distributors, only the Representative(s) of such com-pany or organization Distributors is/are allowed to participate at Company and Network events and/or activities, unless the Company agrees prior to such event and/or activity, to allow non-Representative individuals that are associated with the company or organization Distributor, to attend and/ or partici-pate in the event or activity.

3.22 A Distributor, or sole Representative of a Distributor company or organization, upon invita-tion by the Network and/or Company to participate in a success seminar, trip, festive gathering or other Network and/or Company meeting or event, is entit-led to invite one person from their direct family members to accompany them to such event. If a Distributor company or organization has designated and registered with the Company, two person as Representatives, then only the two such designated Representatives will be entitled to participate in the event.

3.23 Although the Company and/or the Network may pay all or any part of the cost relating to a trip for a Distributor or Representative, and/or the Distributor’s or Representative’s family, and/or other guests of the Distributor or Representative, neither the Company nor the Network can be responsible for any loss, damage, injury or death suffered by any

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or all of the aforementioned people as a conse-quence or result of being on the trip, including traveling to and from any embarkation point of the trip. Acceptance of the trip by any of the aforemen-tioned people constitutes acceptance by that indi-vidual of complete personal responsibility for any and all events, occurrences and/or consequences of being on the trip, including traveling to and from any embarkation point of the trip.

3.24 A husband and wife may join the Network under a single Distributor Code and work as a team to build their Network business.

3.25 Alternately to provision 3.24, the spouse of a Distributor may join the Network as a Distributor in their own right, with their own separate Distributor Code, but may only do so in the same sponsor line.

3.26 All new Distributors are entitled to receive from the Company, a “Start Kit” with information and materials intended to inform the new Distributor about the Network, and to provide assistance with enhancement of the new Distributor’s activity with-in the Network. The content of the “Start Kit” may vary between countries.

3.27 All Distributors are entitled to receive the Network’s newsletter, CaliNews®. The newsletter is mailed to the address indicated on the Network application form, or to the last modified address provided by the Distributor to the Company.

3.28 All Distributors are entitled to establish their own CaliVita® Webshop on the CaliVita® website, and/or maintain their own, independent website for the purpose of building their CaliVita® business. Please refer to clauses 5.22 and 5.23, as well as the CaliVita® International “Rules of Website Presentation” for more details.

SECTION 4

DISTRIBUTOR ACTIVITIES

4.01 A Distributor is entitled to purchase Network products from the Company at the Distributor price.

4.02 A Distributor is entitled to re-sell Network pro-ducts at the Network’s official retail price, which is 33% higher than the Distributor price.

4.03 The Distributor is entitled to invite and assist people, and/or company and/or organization enti-ties, to become new Distributors of Network prod-ucts. The Distributor becomes the sponsor of such newly admitted Distributors. The newly admitted Distributors, and any new Distributors subsequently sponsored by the newly admitted Distributors, become part of the Distributor’s Group.

4.04 A Distributor will inform his, her, or its Group about the operation of the Network and its products.

4.05 A Distributor will train, motivate, organize and assist Distributors of his, her, or its Group, without special remuneration, for the purpose of building and expanding the Network.

4.06 A Distributor will ensure, to the best of their ability, that the Distributors of his, her or its Group fully comply with the letter and spirit of the Regulations.

4.07 A Distributor will actively assist in the resolution of any difficulties that may arise during the course of any and all Network activity within his, her, or its Group.

n SECTION 5

DISTRIBUTOR RESPONSIBILITIES

5.01 A Distributor will always conduct themselves and their Network activity according to each and every provision of the Regulations.

5.02 A Distributor is not allowed to claim, and/or make representations to the effect that participation in distribution of Network products and/or Network building activity involves (a) no selling and/or (b) any manner of tax benefits and/or (c) secure income for life and/or (d) big benefits for a small amount of work.

5.03 A Distributor is not allowed to conduct Network activity with Distributors from outside his, her or its own Sponsor line.

5.04 A Distributor shall not actively solicit or induce other Distributors from outside their Group, to change their existing Sponsor, or to switch to another sponsor line.

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5.05 Sponsor lines will be maintained and protected by the Company and/or the Network at all times, and in all circumstances, as originally established. If a Distributor leaving the Network necessitates adjustments to the Sponsor lines, such adjustment will be at the sole discretion of the Company, in consultation with the Network.

5.06 Distributors agree that their relationship with the Company and the Network as an independent Distributor of Network products does not create a patron relationship between the Company and/or the Network and the Distributor, nor an employer/ employee relationship between the Company and/or the Network and the Distributor, nor a relation-ship where the Distributor is considered an agent of the Company and/or the Network. Thus, for no rea-son whatsoever, may the Distributor present himself /herself /itself as an employee or agent, nor may credit himself/herself/itself with any type of repre-sentational faculties, of the Company and/or the Network in front of third parties.

5.07 A Distributor may offer only Network products and services to Network Distributors and/or pros-pective Network Distributors and/or to the general public, if and when they are acting in their capacity as, and/or representing themselves as an indepen-dent Distributor of Network products.

5.08 A Distributor may only acquire, purchase and/or re-sell those Network products that have been approved for sale and distribution in their country by the appropriate government authority in said country.

5.09 A Distributor will only sell Network products in the original, unaltered and undamaged packaging.

5.10 A Distributor is only allowed to re-sell Network products at the Network’s official retail price for the country in which the Network product is being re-sold, as specified in the official retail price list for that country published by the Company. Regardless of, and notwithstanding the foregoing, a Distributor is not allowed to sell Network products to wholesale companies, brokers, re-sellers, or any other type of middleman.

5.11 A Distributor will immediately inform both the Company and his, her, or its Sponsor, in writing, of any and all violations of the Regulations and/or unethical Network building behaviour that comes to his, her, or its cognizance.

5.12 A Distributor is solely and wholly responsible for full and continuous compliance with all laws and government regulations governing Network-type activity in any country in which the Distributor con-ducts Network activity. This includes any country from which the Distributor’s independent website, or CaliVita® webshop may be accessed. Such require-ments include any business licence that may be required.

5.13 Distributors are not allowed to pursue com-mercial activities within the Network, or with the intent of expanding the Network, or with Network products, unless they are in full compliance with provision 5.12.

5.14 A Distributor is solely and wholly responsible for full and continuous compliance with the Regulations as well as instructions from the Company and/or their Sponsor regarding his, her, or its activity.

5.15 Distributors agree that they will be wholly and solely responsible for their losses and/or their profits; incidentals or emerging damages; obligations in front of employees, third parties or in front of any government jurisdictional authority, submitting themselves to comply with their obligations in accordance with the any and all legislation, govern-ing personal acts and obligations.

5.16 Distributors agree that they are autonomous, and legally and fiscally independent, with no link as to any type of labour relationship with the Company and/or the Network. Thus, the Company and/or the Network does not hold any present nor future obli-gation of payment for the concepts of pension or retirement, social security, housing, nor for payroll taxes, nor for any payment related to labor aspects.

5.17 A Distributor will not engage in any activity that, in the opinion of the Company, impugns the reputation of CaliVita® International, the Network, any individual Distributor or the Distributors collec-tively, the Company, the Company management, or Network products.

5.18 A Distributor will not make false or misleading statements about CaliVita® International , and/or any Network product, and/or the Network itself, and/or any other Distributor, and/or the Company.

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5.19 No regulatory body in any jurisdiction recom-mends or endorses a product, the use of such pro-duct, a marketing plan, or a distribution plan. As such, Distributors shall not represent or imply to any party that any aspect of the Company’s and/or Network’s operations and/or products, or the Company, the Network, or any Network product itself, or the use of any Network product, is recommended or endorsed by any regulatory body in any jurisdiction.

5.20 A Distributor is entitled to use Company and/or Network published material in furtherance of his, her or its Network business. A Distributor may also, at their own expense, commission, produce, and use his, her or its own advertising and/or informational material in furtherance of Network business, only if such Distributor-produced material is first sent to the Company for approval prior to use by the Distributor.

5.21 In cases where a Distributor is producing their own material, notwithstanding Company approval to use such material, the Distributor will be solely and wholly responsible for ensuring that such mate-rial, and the use of that material fully complies with all applicable laws and government regulations regarding such material and further, that such mate-rial is not in violation of any and all copyrights and trademarks in any country or jurisdiction, and fur-ther, that such material makes no false or misleading statements about the Distributor, the Company, the Network or Network products.

5.22 A Distributor may create, establish and main-tain his, her or its own independent website using

the name, logo, product images, product informa-tion, Company or Network information, or informa-tion about any aspect of the marketing system of CaliVita® International, for the purpose of furthering their CaliVita® business. A Distributor may only do so, however, with the expressed advance permission of the Company. Further, the website must adhere to the guidelines of the CaliVita® International “Rules of Website Presentation”. For information on these rules please contact the Company head office in your country or visit the official CaliVita® website at www.calivita.com .

5.23 CaliVita® International allows Distributors to establish their own webshop on the CaliVita® website. Such a Distributor webshop does not require advance permission from the Company. Notwithstanding the fact that CaliVita® provides the webshop function on its official website as a service to Distributors, any and all Distributors who establish their own CaliVita® web-shop assume full and sole responsibility that their webshop complies with all provisions of the CaliVita® International “Rules of Website Presentation”. For infor-mation on these rules please contact the Company head office in your country or visit the official CaliVita® website at www.calivita.com .

5.24 In cases where a Distributor fails to comply with any provision, and/or aspect of any provision of clauses 5.12 through 5.23, and a consequence of that non-compliance is government sanction and/or civil liability and/or damages in any country or jurisdiction, the Distributor will be wholly and solely responsible for such sanction and/or liability and/or damages.

5.25 Notwithstanding provision 5.24, the Distributor must immediately notify the Company of the initia-tion of any and all civil and/or government actions directed towards the Distributor as a result or conse-quence of their Network activity.

5.26 Any Distributor found in violation of any provi-sion of the Regulations agrees to submit to what-ever sanctions the CaliVita® International Ethics & Disciplinary Committee deems appropriate. Please see section 16.00 for more details about the CaliVita® International Ethics & Disciplinary Committee.

5.27 Distributors may participate in other network marketing systems, but only as an end user (ie: consumer).

5.28 All information in the Company’s database regarding Network uplines, downlines, and geneal-ogy is the property of the Company. Distributors must, at all times, treat this information as confiden-tial and proprietary to the Company. Use of this information by a Distributor, or former Distributors that is not specifically authorized by the Company, constitutes illegal use of proprietary information, and may result in sanctions against the Distributor including, but not limited to, distributorship termi-nation, and may result in legal remedies against former Distributor.

5.29 Any and all correspondence from the Company and/or CaliVita® International, in any form whatso-ever, addressed directly to a specific Distributor or Distributors, is to be construed by that Distributor, or

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Distributors, as strictly confidential and intended only for the perusal and cognizance of the address-ee Distributor or Distributors. Under no circum-stances is the addressee Distributor or Distributors allowed to copy, distribute, circulate, publish or re-transmit such correspondence to any third party, without the prior consent of the Company.

n SECTION 6

BONUS POINTS

6.01 Except as indicated by the Company and/or the Network, the purchase of Network products by a Distributor, earns bonus points for the purchasing Distributor. Bonus points earned are one factor that is used by the Company and/or the Network to determine Distributor entitlements, which may take the form of additional discounts to the Distributor price, or may take the form of cash bonus payments.

6.02 The amount of bonus points earned per unit of currency spent to buy a product, may not be uniform or consistent for all products in one country, nor for identical products in different countries, nor may it remain constant for one particular product in one par-ticular country. The Company and/or the Network may, from time to time, and at their, or its, discretion, change the amount of bonus points earned for purchase of any and/or all Network products. Distributors will always be aware of the number of bonus points earned by pur-chase of a particular product by referring to the Company’s official price list published in their country.

6.03 The USD purchase value required to earn a cer-tain amount of bonus points, and to reach a certain achievement level may vary between countries, as the Company determines the achievement level applicable to each country separately. For the pur-pose of providing comparative information to Distributors, the Network averages the bonus points required to reach achievement levels in all countries, to determine an “Average Global Achievement Level”.

n SECTION 7

ACHIEVEMENT LEVELS

7.01 There are seven (7) different achievement levels. The first three (3) achievement levels are known as “Consumer Distributor levels” and entitle the Distri-butor to additional discounts for the purchase of Network products. The next four (4) levels are known as “Nominal achievement levels” and entitle the Distributor to receive cash bonus payments from the Company.

7.02 The Company notifies a Distributor of his, her or its level, and consequent discount or payment entit-lement for a particular month by sending the Distributor an Achievement Report within 20 calen-dar days of the end of the month for which the Achievement Report is issued.

7.03 Consumer Distributor achievement levels are determined by the total of PBP and GBP in the given month, and the levels are the following:

- above 1,000 GBP 4%- above 3,000 GBP 7%- above 9,000 GBP 10%

7.04 Nominal achievement level is determined by the total of PGBP and GBP in a given month, and the levels are as follows:

- above 18,000 GBP 12%- above 35,000 GBP 15%- above 63,000 GBP 18%- above 95,000 GBP 21%

7.05 Distributors on nominal achievement levels are entitled to nominally use the highest qualification level they have ever reached, but they have only the entitlements and rights determined by their current achievement levels.

n SECTION 8

CONSUMER DISTRIBUTOR DISCOUNTS

8.01 Distributors at the Consumer Distributor achievement levels (4%, 7%, 10%) are not entitled to receive payments from the Company, but are

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entitled to additional discounts to the Distributor price, when purchasing Network products.

8.02 There is no minimum monthly purchase amount for Distributors at the Consumer Distributor achieve-ment level to be entitled to receive their discount.

8.03 The discount entitlement for Distributors at the Consumer Distributor achievement level is calcula-ted in the same manner as bonus payments for the Nominal achievement levels (see clause 9.03), but for Consumer Distributors, the Company does not pay this amount to the Distributor in cash, but allows the Consumer Distributor to use this amount as an addi-tional discount on future purchases of Network products, within certain limits as described in clauses 8.05 and 8.06.

8.04 The discount earned by a Group is calculated by applying the achievement level percentage to the total of PCP and GCP. The discount earned by a single Consumer Distributor is the difference between the total Group discount, and the amount of that Group discount that applies to the Consumer Distributor’s downline in that Group.

8.05 The value of unused Consumer Distributor discount entitlements accumulates to the Consumer Distributor, and may be used at any time to pur-chase Network products within 12 months of earn-ing the discount entitlement. Accumulated discount entitlements may be used to reduce any single invoice for the purchase of Network products to a maximum of 50% of the total value of the invoice.

8.06 The Consumer Distributor forfeits any discount entitlements that are not used within 12 months of earning. Such forfeiture will not apply in jurisdictions that prohibit such actions. In such jurisdictions, the Company’s treatment of the subject entitlements will be in accordance with applicable laws and regulations.

8.07 Consumer Distributor discount entitlements can only be used for purchasing Network products, and cannot be converted into cash by the Consumer Distributor, nor is the Company obligated to convert such discount entitlements into cash.

n SECTION 9

NOMINAL ACHIEVEMENT

LEVEL BONUS PAYMENTS

9.01 Distributors at the Nominal achievement levels (12%, 15%, 18%, 21%) are entitled to receive cash bonus payments from the Company, provided they have met all the requirements for payment as out-lined in this section.

9.02 Payments are made by the Company to Distributors on a monthly basis, in accordance with the Regulations in effect at the time the payment is made, as well as according to the applicable govern-ment legal, financial, taxation and other regulatory requirements in effect at the time the payment is made, in the country in which such payment is made.

9.03 PBP and GBP together determine a Distributor’s nominal achievement level percentage. This

percentage is then applied to the total of PCP and GCP to determine the value of the bonus payment entitlement for the Distributor’s group. A single Distributor’s bonus payment entitlement is the diffe-rence between the total group bonus payment entit-lement, and the amount of that entitlement applica-ble to the Distributor’s downline in that group.

9.04 In order to be eligible to receive a payment entitlement, a Distributor must have made the mini-mum purchase in the month for which the Achievement Report was issued. This applies to most, but not all countries. Please check with your sponsor to determine what minimum purchase requirements apply in your country. The amount of the minimum monthly purchase varies according to the Distributor’s nominal achievement level, as follows:

- where the Distributor’s nominal achievement level is 12%, 15% or 18%, personal purchase of Network products earning PBP of 500.

- where the Distributor’s nominal achievement level is 21%, personal purchase of Network products earning PBP of 1000.

9.05 The minimum monthly purchase amount out-lines in 9.04 applies only to regular bonus payments. Additional entitlements that may be earned by the Distributor, such as Progressive Reward Bonus, Triple Line Bonus, and Manager Premiums, each have their own separate qualification requirements. Please refer to the appropriate section of this document.

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9.06 The Distributor receiving a payment entitle-ment notification from the Company via an Achievement Report, must issue an invoice to the Company by the last day of the month in which the Distributor receives the Achievement Report, in order for the payment to be made to the Distributor. In cases of unavoidable delays in issuing an invoice to the Company, the Company will consider Distributor invoices submitted after the date speci-fied above, however, if an invoice related to a par-ticular Achievement Report is submitted more than 90 days after the last day of the month for which that Achievement Report is issued, the Distributor forfeits the payment entitlement identified in that Achievement Report. Such forfeiture will not apply in jurisdictions that prohibit such actions. In such jurisdictions, the Company’s treatment of the sub-ject entitlements will be in accordance with appli-cable laws and regulations.

9.07 The Achievement Report will be addressed to the Distributor entitled to use the Distributor Code reflected on the Achievement Report, and the Company will only accept an invoice related to that Achievement Report from the Distributor entitled to use the Distributor Code reflected on said Achievement Report, which will be the same as the addressee of the Achievement Report.

9.08 The date of the invoice sent by the Distributor to the Company in order to receive their payment entitlement, should be the last day of the month for which the Achievement Report is issued. The invoice must indicate the Distributor Code reflected on the

Achievement Report, and bear the signature of the Distributor entitled to use that Distributor Code, which will be the same as the addresee of the Achievement Report. Unsigned and/or undated invoices, and/or invoices not indicating a proper Distributor Code will not be accepted by the Company. It is the sole responsibility of the Distributor to ensure that they issue invoices in acceptable form, and that the invoice they issue is in accordance with legal and regulatory requirements for such invoices, in the applicable jurisdiction.

9.09 Payments to a Distributor will only be made by the Company by direct bank transfer to the Distributor’s account as indicated by the Distributor at the time of completing the application form, or as subsequently amended by the Distributor. Payments will not be made to a third party, nor can a payment entitlement or payment itself be transferred by the Distributor to any third party.

9.10 If the payment entitlement indicated by an Achievement Report is less than the local currency equivalent of forty U.S. dollars ($40 USD), the Company will not pay the entitlement in that month, but carry the entitlement forward to be added to the payment entitlement of the following month. This will continue until such time as the cumulative payment entitlement, as indicated by an Achievement Report, exceeds the local currency equivalent of forty U.S. dollars ($40 USD) . Only at such time will the Company accept an invoice from the Distributor and make the payment according to the invoice. In jurisdictions where this form of

payment deferral may be prohibited, the Company’s practice in the payment to Distributors of amounts less than the local currency equivalent of forty U.S. dollars ($40 USD) will be in accordance with the laws or regulations of the applicable jurisdiction.

9.11 The effect of changes in a Distributor’s data and/or tax status can only be reflected on Achievement Reports issued subsequent to the month in which the Distributor notifies the Company of such change. Any financial, legal, tax or regulatory consequences and/or ramifications to the Company, resulting from the Company issuing incorrect Achievement Reports and/or payments as a result of a Distributor’s negligence and/or delay in reporting changes, is the sole responsibility and liability of the Distributor.

9.12 If amounts are due by the Distributor to the Company for reasons outlined in section 9.11, or for any other reason whatsoever, the Company will, upon notifying the Distributor, deduct the amount owed from future payment entitlements to that Distributor, provided that such remedy is allowed by law in the applicable jurisdiction. In jurisdictions where this form of remedy may be restricted, the Company will pursue such remedies as allowed by the applicable jurisdiction.

9.13 The Distributor agrees that the issuance of an invoice to the Company for the purpose of collect-ing a payment entitlement, or the acceptance by the Distributor of any payment from the Company, constitutes an undertaking by the Distributor to the

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Company, that the Distributor is in full compliance with any and all applicable tax, legal, financial, and regulatory statutes, rules and requirements in every country and/or jurisdiction in which that Distributor conducts Network business and that, further, the Distributor is conducting a legitimate business that is legally constituted in every respect, under all applicable statutes governing such commercial activity in every country and/or jurisdiction in which the Distributor conducts business. All consequences and ramifications resulting from the failure of such undertaking is the sole responsibility and liability of the Distributor.

n SECTION 10

PROGRESSIVE REWARD BONUS

10.01 Distributors at the nominal achievement le-vels (12%, 15%, 18%, 21%) are entitled to the Prog-ressive Reward Bonus if they meet the conditions for such bonus as outlined in this section. This bonus allows Full Distributors (ie: non-Consumer Distribu-tors) to increase the amount of their monthly bonus payment to a higher value than that indicated by their nominal achievement level, if they meet the stated conditions. 10.02 In order to qualify for the Progressive Reward Bonus, the Distributor must meet the following con-ditions in a particular month:

– The Distributor must be at the minimum 12% nominal achievement level (ie: a Full Distributor).

– If the Distributor was below the 12% level in the previous month, they must have achieved a mini-mum of 10% level every month, for the three month period immediately preceding the month in which the Distributor achieved the 12% level.

– The Distributor must have achieved a mini-mum 10% increase in GBP for the month, from the average GBP of the three month period immediately preceding the subject month.

10.03 The amount of the progressive bonus pay-ment is equal to the monthly growth in percentages (from nominal payment), regarding the achieved average for the last three months.

10.04 Regardless of calculation amounts as described in 11.03, the Progressive Reward Bonus is limited to a maximum in any given month of 50%, or $500 USD, whichever amount is lower.

10.05 The Company reserves the right to pay the Progressive Reward Bonus in the local currency equivalent, based on prevailing exchange rates at the time the bonus is paid.

10.06 In some countries, there may be variations to the BP requirements for entitlement to Progressive Reward Bonus payments. Please check with your Sponsor, or with the Company in your country.

10.07 The Distributor will lose his/her right to a prog-ressive bonus permanently, if he/she has qualified for a Manager Premium.

10.08 The Distributor will become entitled to Progressive Bonus Payment again in case he/she has not been entitled to Manager Premium (yet), and besides the basic conditions, meets the following requirements: His/her average performance of the preceding trimester exceeds at least by 10% the last average performance to be fulfilled. The last average performance to be fulfilled is the GBP average of the last month – in which the payment of the progres-sive bonus took place – and the two months pre-ceding it.

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n SECTION 11

TRIPLE LINE BONUS

11.01 If a Distributor at the nominal achievement level (7%, 10%, 12%, 15%, 18%, 21%) manages to achieve those levels in each of three separate directdownlines, they are entitled to the Triple Line Bonus.The amount of the Triple Line Bonus is shown in thetable in 11.02.Those Members achieving 7% and 10% levels who become entitled may have a purchase discount as the Triple Line Bonus, which they may use within the following 12 months of entitlement (up to maxi-mum 50% of the purchase/account value).

11.02 Triple Line Bonus Table

n SECTION 12

MANAGER STATUS – OVERVIEW

12.01 A Distributor is entitled to Manager status and rewards, based on meeting the conditions outlined in section 12.00 through 14.16.2.

12.02 There are sixteen (16) Manager classifications as follows (from lowest to highest): - Palm Manager (PM) - Double Palm Manager (DPM) - Triple Palm Manager (TPM) - Executive Manager (EM) - Star Manager (SM) - Silver Palm Manager (SPM) - Double Silver Palm Manager (DSPM) - Triple Silver Palm Manager (TSPM) - Silver Group Manager (SGM) - Silver Star Manager (SSM)

- Golden Palm Manager (GPM) - Double Golden Palm Manager (DGPM) - Triple Golden Palm Manager (TGPM) - Director (D) - Executive Director (ED) - Senator (S)

12.03 Distributor achieving a stipulated higher Manager status in their country, will automatically become Members of the CaliVita® International Top Manager’s Club. Additional rights, responsibilities and opportunities for Top Managers are outlined in a separate set of regulations entitled “Top Managerial Regulations”.

12.04 A Manager should actively participate in every event and seminar which is organized by the Network or the Company in his, her or its home country, or in any country where he, she or it has a 21% group.

12.05 A Manager should organize, on their own ini-tiative, meetings and seminars for starting in the Network, Distributor training, and Network develop-ment in every country where he, she or it has a 21% group.

12.06 A Manager should always act and conduct themselves in the spirit of the values and ethical principles of the Network and the Company.

12.07 Managers are entitled to nominally use the highest qualification level they have ever reached, but they have only the entitlements and rights determined by their current achievement levels.

TRIPLE LINE BONUSACHIEVED LEVELS

7% 10% 12% 15% 18% 21%

DIR

EC

TLY

SP

ON

SO

RE

D

LIN

ES

4% $ 5

7% $ 5 $ 15 $ 15

10% $ 15 $ 30 $ 30

12% $ 30 $ 40 $40 $ 40

15% $ 60 $ 60 $ 60

18% $ 90

21% $ 150

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n SECTION 13

EXCLUSIVE PAYMENT ENTITLEMENTS

FOR MANAGERS

13.01 Distributors who achieve Manager status may qualify to receive additional payments from the Company. The description of the entitlements exclu-sive to managers is contained in this section, and the requirements to qualify for such entitlements are contained in both this, and the following sections.

13.02 MANAGER PREMIUM

13.02.1 The Company pays a Manager Premium to Distributors who achieve Manager status as out-lined in section 14.00, and meet the conditions as outlined in 13.02.3.

13.02.2 In order to qualify for the Manager Premium, a Distributor must meet the following conditions in a particular month:

- The Distributor must qualify for Manager status.- The Distributor must have at least one, directly

sponsored 21% line, together with a minimum of 38,000 PGBP (GBP not generated by the 21% Line) OR

- Alternatively, the Distributor must have at least two directly sponsored 21% lines.

- The Distributor must have provided the Minimum Guarantee value to their direct Sponsor. See clause 13.03.1 for information about the Minimum Guarantee.

13.02.3 The Manager Premium is calculated as:- 5% of the GCP of the 21% line(s), plus - 5% of PGCP.

13.03 MINIMUM GUARANTEE

13.03.1 All Distributors, upon achieving Manager status, are henceforth required to provide to their direct Sponsor, a minimum of guaranteed monthly payment – Minimum Guarantee value is 5% of the average global achievement level * (*in local currency according to the current exchange rates)

13.04 STABILITY PREMIUM

13.04.1 Distributors who achieve a 21% nominal achievement level in a given month, are entitled to receive a Stability Premium from the Company.

13.04.2 The Stability Premium is calculated in two parts as follows:- Direct Stability Premium – an amount based on

the achieved level of all directly sponsored Distributors (see table 13.04.3) PLUS

- Infinity Stability Premium – 50% of the difference between the amount of the Direct Stability Premium, and the amount of the premium for the highest achieved level in a directly sponsored group (see table section 13.04.3)

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13.04.3 Stability Premium Table:

DIRECT STABILITY PREMUM

LEVEL 21%

PM,

DPM,

TPM,

EM, SM

SPM,

DSP,

TSPM,

SSM,

SGM

GPM DGP TGPM D ED S

21% 0 200 USD 300 USD 400 USD 400 USD 400 USD 500 USD 500 USD 500 USD

PM, DPM, TPM, EM,

SM100 USD 300 USD 500 USD 800 USD 800 USD 800 USD 800 USD 800 USD 800 USD

SPM, DSPM, TSPM,

SSP, SGM100 USD 300 USD 600 USD 900 USD 900 USD 900 USD 900 USD 900 USD 900 USD

GPM 100 USD 300 USD 600 USD 1000 USD 1000 USD 1000 USD 1000 USD 1000 USD 1000 USD

DGP 100 USD 300 USD 600 USD 1000 USD 1200 USD 1200 USD 1200 USD 1200 USD 1200 USD

TGPM 100 USD 300 USD 600 USD 1000 USD 1200 USD 1400 USD 1400 USD 1400 USD 1400 USD

D 100 USD 300 USD 600 USD 1000 USD 1200 USD 1400 USD 1600 USD 1600 USD 1600 USD

ED 100 USD 300 USD 600 USD 1000 USD 1200 USD 1400 USD 1600 USD 1800 USD 1800 USD

S 100 USD 300 USD 600 USD 1000 USD 1200 USD 1400 USD 1600 USD 1800 USD 2000 USD

INFINITY STABILITY PREMIUM WITH INFINITY COMPRESSION OF 50%

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13.04.4 The Company reserves the right to pay the Stability Premium in the local currency equivalent, based on prevailing exchange rates at the time the premium is paid. .

13.05 EXECUTIVE PREMIUM

13.05.1 The Company pays a 1% Executive Premium to the Distributor whose PGBP reaches at least 140,000 in a given month.

13.05.2 The Company pays a 2% Executive Premium to the Distributor whose PGBP reaches at least 190,000 in a given month.

13.06 SILVER PREMIUM

13.06.1 A Distributor who achieves Silver Palm Manager status (see section 15.00 for requirements) or higher, may be entitled to receive the Silver Premium.

13.06.2 The Silver Premium is calculated as 1% of all non-directly sponsored 21% group achievements, except for the groups that are below those group Distributors who have achieved a Silver Palm Manager or higher level, and are below the Silver Palm Manager.

13.06.3 The Silver Premium is paid by the Company only in the months in which the Distributor com-plies with the requirement for Silver Premium entitlement.

13.07 DOUBLE SILVER PREMIUM

13.07.1 A Distributor who achieves Double Silver Palm Manager status (see section 15.00 for require-ments) or higher, may be entitled to receive the Double Silver Premium.

13.07.2 The Double Silver premium is calculated as 0.25% of the annual Group level of all Distributors who have achieved DSPM status or higher, and then this 0.25% total amount is allocated pro- rata to each Distributor that is entitled to receive the Double Silver Premium.

13.07.3 Double Silver premium is paid once per year by the Company after the end of a given Distributorship year.

13.07.4 The payment entitlement for a particular Distributor is calculated based only on the months of the Distributorship year in which the Distributor achieved the qualifications for entitlement.

13.08 GOLDEN PREMIUM

13.08.1 A Distributor who achieves Golden Palm Manager status (see section 15.00 for requirements) or higher, may be entitled to receive the Golden Premium.

13.08.2 The Golden Premium is calculated as 0.25% of the annual Group level of all Distributors who have achieved GPM status or higher, and then this 0.25% total amount is allocated pro- rata to each

Distributor that is entitled to receive the Golden Premium.

13.08.3 The Golden Premium is paid once per year by the Company after the end of a given Distributorship year.

13.08.4 The payment entitlement for a particular Distributor is calculated based only on the months of the Distributorship year in which the Distributor achieved the qualifications for entitlement.

13.09 ONE-TIME BONUS

13.09.1 Distributors achieving the TPM, SPM, GPM, DGPM, TGPM, D, ED, or S status for the first time, may be entitled to a one-time bonus payment from the Company as described in Section 15.00, under the “Rewards” section of the respective Manager level.

13.09.2 If a Distributor, for the first time, achieves a level that is higher than a level that is entitled to a one-time bonus (in other words, the Distributor skips past the level entitled to a one-time bonus), and the higher level achieved is not subject to a one-time bonus, the Distributor will be entitled to the one time bonus applicable to the skipped level, if the Distributor maintains the achieved level for a period of three continuous months. The three month period includes the month in which the Distributor first achieved that level.

13.09.3 If a Distributor, for the first time, achieves a level that is higher than a level that is entitled to a

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one-time bonus (in other words, the Distributor skips past a level entitled to a one-time bonus), and the higher level achieved is subject to a one-time bonus, the Distributor will be entitled to the one time bonus applicable only to the achieved level, and is not entit-led to the one-time bonus for the skipped level.

n SECTION 14

MANAGER STATUS

– QUALIFICATION AND REWARDS

14.01 Palm Manager (PM)

14.01.1 PM Qualification:- a minimum of 95,000 PGBP, exclusive of any BP

generated by a directly sponsored 21% group OR- directly sponsor one 21% group in the given

month and have at least 38,000 PGBP in the same given month OR

- directly sponsor more than one 21% group in a given month.

14.01.2 PM Rewards:- from every directly sponsored 21% group, a pay-

ment entitlement of 5% Manager Premium, or the value of the minimum guarantee.

- payment entitlement of 5% of PGCP, if a 21% group is sponsored.

- entitlement to Stability Premium if all conditions of such entitlement are met.

- entitlement to Executive Premium if all conditions of such entitlement are met.

- Certificate of Achievement from CaliVita® International.

- Palm Manager lapel badge.- recognition in the CaliNews.- may be entitled to attend, upon invitation by the

Company, Manager Club meetings.

14.02 Double Palm Manager (DPM)

14.02.1 DPM Qualification:- a Distributor who achieves the PM level three (3)

times in a 12 month period becomes a Double Palm Manager.

14.02.2 DPM Rewards:- from every directly sponsored 21% group, a pay-






- Double Palm Manager lapel badge.- recognition in the CaliNews.- may be entitled to attend, upon invitation by the

Company, Manager Club meetings.

14.03 Triple Palm Manager (TPM)

14.03.1 TPM Qualification:- a Distributor who achieves the PM level six (6)

times in a 12 month period, and three (3) of the six

times occur in consecutive months within that 12 month period, becomes a Triple Palm Manager.

14.03.2 TPM Rewards:- upon reaching the TPM level for the first time, a

one-time bonus of 1,000 USD. The Company reserves the right to pay this bonus in local cur-rency equivalent, based on prevailing exchange rates at the time the bonus is paid.

- from every directly sponsored 21% group, pay-ment entitlement of 5% Manager Premium, or the value of the minimum guarantee.





- Triple Palm Manager lapel badge.- recognition in the CaliNews.- entitled to attend, upon invitation by the Company,

Manager Club meetings.- may be entitled to attend, upon invitation by the

Company, Top Manager Club meetings.- entitled to participate, upon invitation by the

Company, in a business trip for two people of at least five days, the expenses of which, with the exception of travel costs, will be paid by the Company.

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14.04 Executive Manager (EM)

14.04.1 EM Qualification:- Triple Palm Manager status.- PGBP of 190,000 or greater.

14.04.2 EM Rewards:- from every directly sponsored 21% group, pay-






- Executive Manager lapel badge.- recognition in the CaliNews.- entitled to attend, upon invitation by the Company,


Company, Top Manager Club meetings.- entitled to participate, upon invitation by the Com-

pany, in a business trip for two people of at least five

days, the expenses of which, with the exception of travel costs, will be paid by the Company.

14.05 Star Manager (SM)

14.05.1 SM Qualification:- directly sponsor two (2) 21% groups in the given

month, and have at least 47,500 PGBP.

14.05.2 SM Rewards:- from every directly sponsored 21% group, pay-


- payment entitlement of 5% of PGCP.- entitlement to Stability Premium if all conditions

of such entitlement are met.- entitlement to Executive Premium if all conditions

of such entitlement are met.- Certificate of Achievement from CaliVita®

International.- Star Manager lapel badge.- recognition in the CaliNews.- entitled to attend, upon invitation by the Company,


Company, Top Manager Club meetings.

- entitled to participate, upon invitation by the Com-pany, in a business trip for two people of at least five days, the expenses of which, with the exception of travel costs, will be paid by the Company.

14.06 Silver Palm Manager (SPM)

14.06.1 SPM Qualification:- a Distributor who directly sponsors three (3) 21

percent groups in a given month becomes a Silver Palm Manager.

14.06.2 SPM Rewards:- One time reward of 3000 USD (in local currency

according to the current exchange rates) – 1000 USD when reaching the level for the first time, 2000 USD after 12 months if the level is main-tained continually.




of such entitlement are met.

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- entitlement to Silver Premium if all conditions of such entitlement are met.


- Silver Palm Manager lapel badge.- recognition in the CaliNews.- entitled to attend, upon invitation by the Company,

Manager Club meetings.- entitled to attend, upon invitation by the Company,

Top Manager Club meetings.- entitled to attend, upon invitation by the Company,

Silver Club meetings.- entitled to participate, upon invitation by the Com-

pany, in a business trip for two people of at least five days, the expenses of which, with the excep-tion of travel costs, will be paid by the Company.

14.07 Double Silver Palm Manager (DSPM)

14.07.1 DSPM Qualification:- a Distributor who directly sponsors three (3) 21

percent Groups in at least six (6) months of a dis-tributorship year becomes a Double Silver Palm Manager.

14.07.2 DSPM Rewards:- from every directly sponsored 21% group, pay-


- payment entitlement of 5% of PGCP.- entitlement to Stability Premium, if all conditions

of such entitlement are met.- entitlement to Executive Premium, if all condi-

tions of such entitlement are met.

- entitlement to Silver Premium, if all conditions of such entitlement are met.

- entitlement to Double Silver Premium, if all condi-tions of such entitlement are met.


- Double Silver Palm Manager lapel badge.- recognition in the CaliNews.- entitled to attend, upon invitation by the Company,





14.08 Triple Silver Palm Manager (TSPM)

14.08.1 TSPM Qualification:- a Distributor becomes a Triple Silver Palm

Manager, if he/ she or it has achieved the Silver Palm manager level in every month of the Distributorship year.

14.08.2 TSPM Rewards:- from every directly sponsored 21% group, pay-




- entitlement to Executive Premium, if all condi-tions of such entitlement are met.

- entitlement to Silver Premium, if all conditions of such entitlement are met.

- entitlement to Double Silver Premium, if all condi-tions of such entitlement are met.


- Triple Silver Palm Manager lapel badge.- recognition in the CaliNews.- entitled to attend, upon invitation by the Company,




pany, in a business trip for two people of at least five days, the expenses of which, with the exception of travel costs, will be paid by the Company.

14.09 Silver Group Manager (SGM)

14.09.1 SGM Qualification:- a Distributor who directly sponsors four (4) 21 per-

cent Groups in a given month becomes a Silver Group Manager.

14.09.2 SGM Rewards:- from every directly sponsored 21% group, pay-



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of such entitlement are met.- entitlement to Silver Premium, if all conditions of

such entitlement are met.- entitlement to Double Silver Premium, if all condi-

tions of such entitlement are met. - Certificate of Achievement from CaliVita®

International.- Silver Group Manager lapel badge.- recognition in the CaliNews.- entitled to attend, upon invitation by the Company,



Silver Club meetings.- entitled to participate, upon invitation by the


14.10 Silver Star Manager (SSM)

14.10.1 SSM Qualification:- a Distributor who directly sponsors five (5) 21

percent Groups in a given month becomes a Silver Star Manager.

14.10.2 SSM Rewards:- from every directly sponsored 21% group, pay-






tions of such entitlement are met. - Certificate of Achievement from CaliVita®

International.- Silver Star Manager lapel badge.- recognition in the CaliNews.- entitled to attend, upon invitation by the Company,



Silver Club meetings.- entitled to participate, upon invitation by the


14.11 Golden Palm Manager (GPM)

14.11.1 GPM Qualification:- a Distributor who directly sponsors six (6) 21 per-

cent Groups in a given month becomes a Golden Palm Manager. The rewards listed below may only be applicable in their entirety, if the GPM level is achieved for a minimum of six (6) months of the Distributorship year.

14.11.2 GPM Rewards:- One time reward of 10.000 USD: 5.000 USD when

reaching the level for the first time, and main-tained continually for 3 month; and 5.000 USD after 12 months if the GPM level is reached at least 9 times, during that period.

- from every directly sponsored 21% groups, pay-ment entitlement of 5% Manager Premium, or the value of the minimum guarantee.





tions of such entitlement are met. - entitlement to Golden Premium, if all conditions

of such entitlement are met. - Certificate of Achievement from CaliVita®

International.- Golden Palm Manager lapel badge.- recognition in the CaliNews.- entitled to attend, upon invitation by the Company,



Silver Club meetings.- entitled to attend, upon invitation by the Company,

Golden Club meetings.- entitled to participate, upon invitation by the Com-

pany, in a business trip for two people of at least

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five days, the expenses of which, with the excep-tion of travel costs, will be paid by the Company.

- entitled, upon request, to a personal consultation with the President of the CaliVita® International twice in a distributorship year.

14.12 Double Golden Palm Manager (DGPM)

14.12.1 DGPM Qualification:- a Distributor who directly sponsors nine (9) 21

percent Groups in a given month becomes a Double Golden Palm Manager. The rewards listed below may only be applicable in their entirety, if the DGPM level is achieved for a minimum of six (6) months of the Distributorship year.

14.12.2 DGPM Rewards:- One time reward of 15.000 USD: 7.500 USD when

reaching the level for the first time, and main-tained continually for 3 month; and 7.500 after 12 months if the DGPM level is reached at least 9 times, during that period.

- from every directly sponsored 21% groups, pay-ment entitlement of 5% Manager Premium, or the value of the minimum guarantee.

- payment entitlement of 5% of PGCP.- entitlement to Stability Premium, if all conditions

of such entitlement are met.- entitlement to Executive Premium, if all condi-

tions of such entitlement are met.- entitlement to Silver Premium, if all conditions of


tions of such entitlement are met.

- entitlement to Golden Premium, if all conditions of such entitlement are met.


- Double Golden Palm Manager lapel badge.- recognition in the CaliNews.- entitled to attend, upon invitation by the Company,






- entitled, upon request, to a personal consultation with the President of the CaliVita® International four times in a distributorship year.

14.13 Triple Golden Palm Manager (TGPM)

14.13.1 TGPM Qualification:- a Distributor who directly sponsors twelve (12) 21

percent Groups in a given month becomes a Triple Golden Palm Manager. The rewards listed below may only be applicable in their entirety, if the TGPM level is achieved for a minimum of six (6) months of the Distributorship year.

14.13.2 TGPM Rewards:- One time reward of 20.000 USD: 10.000 USD when

reaching the level for the first time, and main-tained continually for 3 month; and 10.000 after 12 months if the TGPM level is reached at least 9 times, during that period.








International.- Triple Golden Palm Manager lapel badge.- recognition in the CaliNews.- entitled to attend, upon invitation by the Company,






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- entitled, upon request, to a personal consultation with the President of the CaliVita® International four times in a Membership year.

14.14 Director (D)

14.14.1 D Qualification:- a Distributor who directly sponsors fifteen (15) 21

percent Groups in a given month becomes a Director. The rewards listed below may only be applicable in their entirety, if the D level is achieved for a minimum of six (6) months of the Distributorship year.

14.14.2 D Rewards:- One time reward of 40.000 USD: 20.000 USD when

reaching the level for the first time, and main-tained continually for 6 month; and 20.000 after 12 months if the D level is reached at least 6 times, during that period.




of such entitlement are met- entitlement to Silver Premium, if all conditions of





- Director lapel badge.- recognition in the CaliNews.- entitled to attend, upon invitation by the Company,






- entitled, upon request, to a personal consultation with the President of the CaliVita® International four times in a Membership year.

14.15 Executive Director (ED)

14.15.1 ED Qualification:- a Distributor who directly sponsors eighteen (18)

21 percent Groups in a given month becomes an Executive Director. The rewards listed below may only be applicable in their entirety, if the ED level is achieved for a minimum of six (6) months of the Distributorship year.

14.15.2 ED Rewards:- One time reward of 60.000 USD: 30.000 USD when

reaching the level for the first time, and main-tained continually for 6 month; and 30.000 after

12 months if the ED level is reached at least 6 times, during that period.







of such entitlement are met.- Certificate of Achievement from CaliVita® International.- Executive Director lapel badge.- recognition in the CaliNews- entitled to attend, upon invitation by the Company,





pany, in a business trip for two (2) people of at least five (5) days, the expenses of which, with the excep-tion of travel costs, will be paid by the Company.


��26

14.16 Senator (S)

14.16.1 S Qualification:- a Distributor who directly sponsors twenty (20) 21

percent Groups in a given month becomes a Senator. The rewards listed below may only be applicable in their entirety, if the S level is achieved for a minimum of six (6) months of the Distributorship year.

14.16.2 S Rewards:- One time reward of 100.000 USD: 50.000 USD

when reaching the level for the first time, and maintained continually for 6 month; and 50.000 after 12 months if the S level is reached at least 9 times, during that period.








International.- Senator lapel badge.- recognition in the CaliNews.

- entitled to attend, upon invitation by the Company, Manager Club meetings.

- entitled to attend, upon invitation by the Company, Top Manager Club meetings.

- entitled to attend, upon invitation by the Company, Silver Club meetings.

- entitled to attend, upon invitation by the Company, Golden Club meetings.

- entitled to participate, upon invitation by the Company, in a business trip for two (2) people of at least five (5) days, the expenses of which, with the exception of travel costs, will be paid by the Company.


n SECTION 15

ETHICS AND DISCIPLINARY COMMITTEE

15.01 The President of CaliVita® International is President of the CaliVita® International Ethics and Disciplinary Committee and has sole right to appoint the members of said committee.

15.02 The Ethics and Disciplinary Committee will be comprised of the President of CaliVita® International, two (2) Managers of the Network, and one (1) inde-pendent person from outside the Company and/or the Network. Five (5) votes are divided among the four (4) members of the committee as follows: President – two (2) votes, each Manager – one (1) vote, independent person – one (1) vote.

15.03 A Distributor recognizes and agrees to the sole right of the Ethics and Disciplinary Committee to determine if a Distributor is in violation of any provision of the Regulations.

15.04 In the case of a violation decision by the Ethics and Disciplinary Committee, the Distributor involved agrees to submit to whatever sanction the Ethics and Disciplinary Committee deems appropriate.

15.05 In case of sanction, the Ethics and Disciplinary Committee will send written notification to the Distributor via registered letter to the latest address of that Distributor as shown in Company records. The letter will state the date on which the sanction (s) become effective and, if applicable, the date on which the sanctions will end. The sanction(s) will take effect on the stated date regardless of if and when the Distributor receives the written notification.

15.06 If the sanction involves termination of dis-tributorship, the Distributor loses all rights, privileges and entitlements associated with distributorship, including right to use the Distributor Code.

15.07 If a Distributor has had his, her or its distribu-torship terminated by the Network and/or the Company, they may re-apply to join the Network after a period of six (6) months have elapsed since distributorship termination. If the application to re-join is accepted by the Network and/or the Company, the previous Distributor re-joins as a new Distributor without any relationship with their previ-ous sponsor line and/or Group.

�� 27

15.08 If the sanction involves suspension of distri-butorship, the Distributor, and/or its Representatives, will refrain from all Network activity during the period of suspension and their rights and privileges as a Distributor will be held in abeyance. Furthermore, the Distributor will forfeit any and all entitlements onhis/ her or its Network business during the period of suspension only.

n SECTION 16

PRODUCT GUARANTEE

16.01 The quality of all CaliVita® International Network products are 100% guaranteed. This guarantee is limited, only in those jurisdictions where such limita-tion is permitted, to replacing damaged, defective, or expired product with a new piece of identical pro-duct. Please return the unused portion of any dama-ged or defective product to the CaliVita® store nearest to you, or mail it to the CaliVita® head office in your country, stating reasons for return, and it will be replaced with a new piece of identical product.

16.02 In jurisdictions where limitations described in section 16.01 are not permitted, the Company, and CaliVita® International’s product guarantee policy will be in accordance with the requirements of the appli-cable jurisdiction.

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