INACTIVITY AND CANCELLATION

When a Consultant enrolls, the Consultant must maintain at least 200 PV of inventory during any rolling twelve-month period. (See Section 3.7 Maintaining Consultant Status.) If a Consultant does not meet the 200 PV requirement, the account will be canceled.

11.1 Voluntary or Involuntary Cancellation

As long as the Consultant remains current (see activity requirements outlined in Section 3.7), and complies with the terms of the Agreement and these Policies and Procedures, Paparazzi will continue to pay the Consultant all earned bonuses and commissions in accordance with the Compensation Plan. Bonuses and commissions constitute the entire reward for the Consultant’s efforts in generating sales and all activities related – including building and support of a downline organization.

If a Consultant fails to meet the minimum inventory purchases or sales requirement for a period of twelve consecutive months (with less than 200 PV), or if the Agreement is voluntarily or involuntarily terminated, the Consultant shall be deemed to have waived all their rights, title, claim, privileges, or interest to the downline organization that they operated, and to any bonuses or commissions for the sales generated from that organization. Additionally, the Consultant will lose the right to represent Paparazzi, the right to sell Paparazzi products and the right to receive any further compensation, bonuses, commissions, or other income resulting from Paparazzi activities.

11.2 Cancellation Due to Inactivity

In order to keep a Consultant’s Agreement and account active, the Consultant must have accumulated at least 200 PV within a rolling 12 consecutive month window. If at any time the Consultant has a period of 12 consecutive months wherein the 200 PV minimum is not reached, the Agreement will be canceled; the account and position terminated, and the measures in Section 11.1 will take effect. Paparazzi will not provide or issue any written confirmation of the cancellation.

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.

It is the consultant’s responsibility to maintain and monitor these PV requirements. Paparazzi is not required to provide notification prior to or upon cancellation due to inactivity.