BONUS ACCOUNT VIOLATION

A Bonus Account occurs when the Sponsor and the Personally Sponsored have the same address. This is one reason that Consultants should not receive orders for other Consultants. Bonus accounts occur when married spouses, even if living separately, both enroll as Consultants under separate accounts. A Bonus Account occurs when a Consultant takes over another Consultant's account and places bonus orders there--that is considered taking a vested interest. These are all Bonus Accounts in violation of Section 3.2.

If a Consultant enrolls and then, for example, is cancelled for inactivity or requests cancellation when no Compliance issues are pending, he/she has to wait for 12 months to re-enroll. This rule also applies to all members of his/her HOUSEHOLD. See Section 11.5, below. However, if he/she is cancelled by Compliance, he/she cannot re-enroll.

For purposes of 3.2 and 11.5, the "household" does not include adult family members living elsewhere (other than spouses).

3.2 One Consultant Business Per Household / Vested Interest

To uphold the nature of the Paparazzi Compensation Plan, only one Consultant Business may be open per household. This includes only having one executed Consultant Agreement per family, married couple, or live-in resident of the domicile. A corporation or business is also considered a single unit, household, or domicile for the purpose of this Agreement.

This restriction also includes the limitation that no Consultant can have a vested interest in more than one Consultant’s business or Paparazzi account, including but not limited to: order placing, account management, or any interest or action in a position with the Paparazzi genealogy which may define, enhance, or create an increase in commissions as a result.

11.5 – Enrollment Restriction

Any Consultant that has their Consultant Agreement terminated, whether voluntarily or involuntarily, will not be eligible to re-enroll as a Consultant with Paparazzi for a period of 12 months. This 12-month restriction applies to the Consultant as well as those in their household.