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 Paparazzi Policies and Procedures Section 3.2.

If a Consultant enrolls and then, for example, is canceled for inactivity or requests cancellation when no Compliance issues are pending, he/she has to wait for eligibility to re-enroll (this wait time is six months for voluntary cancellation and 15 days when canceled due to inactivity, effective February 28, 2025). This rule also applies to all members of his/her HOUSEHOLD. See Paparazzi Policies and Procedures Section 11.5 and Section 6.12 (provided below). However, if he/she is canceled 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 who voluntarily cancels his/her Account, can re-enroll in six months after that cancellation as long as that Consultant remains in good standing with Paparazzi. Any Consultant that has his/her Account cancelled for inactivity and remains in good standing with Paparazzi, can re-enroll on the 15th of the month following cancellation.

Any Consultant who is terminated by Compliance is not eligible to re-enroll at any time.

6.12 Actions of Household Members

If a member of a Consultant’s immediate household engages in activities that violate the Agreement (including these Policies), the Consultant will be considered to be in violation of the Agreement. This section also applies to any member of a business entity that is a business representative of Paparazzi as a Consultant.