POLICIES AND PROCEDURES
This document contains the policies and procedures which will govern your relationship with Nu Skin Enterprises. It is your responsibility to read and understand them before entering into a contract with the company. All endnotes appear at the end of the document. The information contained in this document was correct as of April 2009. 1. Introduction 1.1 In the following, "a prospective Distributor" (whether an individual,
company or partnership) Nu Skin Belgium N.V. - for Belgium, Luxembourg, Spain, Portugal, Switzerland
1.2 Specific country requirements to which you must adhere in your country
of primary residence 1.3 For the mutual benefit of your business and the businesses of Nu Skin and its other Distributors, you agree to comply with the following procedures, as amended from time to time. These Policies and Procedures along with the Sales Compensation Plan (SCP) and the Nu Skin Distributor Agreement form the three-party Agreement among the Company, Representative and Nu Skin Local. If you need any help in understanding these procedures, please contact the Nu Skin offices. 2. BECOMING AN INDEPENDENT DISTRIBUTOR 2.1 Provided you are of legal age to conclude an agreement, you may become an independent Distributor in your country of primary residence by receiving a Nu Skin not-for-profit Business Portfolio from a Nu Skin Independent Distributor or directly from the Company and signing a Nu Skin Enterprises Distributor Agreement. Additionally a once-only registration fee will be charged at the time of sign-up. Once this Agreement has been accepted, you may conduct Distributor Activities in your country of primary residence. Examples of Distributor Activities are: (i) Placing or paying for wholesale orders under any Distributorship with the
Company; (ii) Sponsoring Preferred Customers and Distributors; 2.2 You may become an Executive Distributor and receive the additional benefits of an Executive level Distributor by reaching and adhering to the Executive qualification requirements outlined in the Annex to this Agreement and the SCP. 2.3 If you wish to conduct business in one or more approved countries outside
the countries listed in paragraph 1.1., you must enter separate distribution
contracts (an International Sponsor Agreement (ISA) and a Product Purchase Agreement
(PPA)) and you must be responsible to learn and comply with all applicable laws
and regulations of that country. You may purchase Nu Skin products and you may
sponsor other persons as Nu Skin Distributors if they are resident in a country
the Company has declared open for business (Authorised Country) by signing the
Company's and the local affiliate's agreements for the country concerned (details
of opened countries can be obtained from Nu Skin). In each such country where
you may be accepted, you agree to conduct your business in a lawful and ethical
manner and to do 2.4 Unless the Company has expressly prohibited all pre-marketing activities for a certain country, you may undertake certain activities prior to the official opening of an Authorised Country. Such activity is limited to providing business cards and conducting, organising or participating in meetings where the number of attendees at any given meeting, including you, does not exceed five. Other activities - such as, but not limited to - marketing and distribution activities of the products or the business opportunity are prohibited unless special permission from the Company is obtained. 3. THE BUSINESS OPPORTUNITY 3.1 You agree to retail Nu Skin products and to become familiar with those products. You agree to provide personalised retail customer service by conducting your business in an ethical manner. In order to build your business you also need to become familiar with the levels of Distributors and the SCP. 3.2 You are self-employed without authority to bind Nu Skin or incur liabilities on its behalf. As an independent business person, you may work in the manner and at the time of your choosing, except as stated in this Agreement. You are responsible for all expenses incurred in carrying on your business, such as tax, VAT and insurance. Nu Skin may require proof that you are properly registered as an independent contractor in order to pay out commissions.2 3.3 Upon sale to any customer you must provide and adhere to the terms of a retail receipt approved by Nu Skin. 3.4 You are neither guaranteed a specific income nor assured any level of profit or success. Your profit and success can come only through the successful retail sale of Nu Skin Products and retail sales of your sales organisation. The Company agrees to pay you commissions for sales, as set out in the current edition of the SCP, made by persons directly or indirectly introduced by you in any country the Company has declared open for business and in which you are authorised to do business. You agree to accept payment from the Company or its paying agent in your country of primary residence as verified by your proof of identity. 3.5 You will not receive compensation for merely sponsoring or introducing other Distributors to the Nu Skin business. Commission statements outlining the compensation you earn will be provided to you on a monthly basis. The statements will also include a list of Distributors in your sales organisation. This list is the property of the Company, licensed to Nu Skin Local; it is sub-licensed to you for your personal business use. It is confidential; you may not copy or transfer it to any third party. If misused, Nu Skin Local may request all statements be returned. You must return the complete list to Nu Skin upon request. Any amount Nu Skin owes to you may be offset against an amount you owe to Nu Skin, as outlined in the product returns section of this document. 3.6 You are not granted any territorial exclusivity. 4. YOUR AGREEMENT 4.1 This Agreement is personal to you and may not be assigned or otherwise transferred to a third party without the Company's and Nu Skin Local's written consent. You may not participate in or receive income from more than one Nu Skin distributorship at any time. 4.2 Only one Distributor Agreement may be in force in each household. If a
Distributorship is held 4.3 You may establish a Distributorship under a different Sponsor only under
one of the following As used herein, "Distributor Activity" includes signing a Distributor Agreement, purchasing products from or returning products to the Company, sponsoring new Distributors, or other activities the Company, in its sole discretion, determines to be a meaningful promotion of the Company's business. A prior Executive Distributor may not at any time take over a pre-existing Distributorship (even if the prior Executive has not been doing Distributor Activities for more than one year). 4.4 You may not under any circumstances encourage, entice, or otherwise assist another Distributor to transfer to a different Sponsor. 4.5 You may not solicit or entice another Distributor whom you have not sponsored to sell or purchase products or services other than those offered by Nu Skin. 4.6 You may not solicit or entice non-Distributor customers (Preferred Customers) who have elected to participate in the purchase of products via an automatic delivery order, where products are automatically shipped to the customer on a monthly basis pursuant to a standing order, under another Sponsor, unless such Preferred Customer has cancelled his/her automatic delivery order and not purchased products from the Company for a period of 6 months. This waiting period also applies should the Preferred Customer elect to sign-up as a Distributor under another Sponsor. 4.7 In the event the Company concludes that an inappropriate line switch has occurred you may be penalised and the second-in-time Distributorship shall be returned to and be merged with the first-in-time Distributorship. The Company may also impose penalties on any Distributorship that solicits or entices an existing Distributor to change lines of sponsorship. 4.8 You hereby agree and consent that the personal data specified in this Agreement as well as personal data collected in the performance of this Agreement and your Distributor Activities is necessary for the Company to operate and co-ordinate the Nu Skin distribution network and carry out its obligations under this Agreement. The data collected is used by the Company's internal and external departments taking part in the operation of the management of the distribution network. It will be transferred outside the European Economic Area for the purpose of processing by the Company. It may be transferred to other Distributors pursuant to the provisions of this Agreement. You may have access to the personal data relating to yourself and have it corrected if it is incorrect. 4.9 A once-only registration fee will be charged to you at the time of sign-up. If you cancel your Agreement with the Company within 14 days of signing it, any monies paid in respect of this fee will be refunded to you. 5. YOUR OBLIGATIONS 5.1 You are personally responsible to know and comply with all national, state,
municipal and local 5.2 You may not in any event act in the name of or bind the Company. 5.3 You agree to comply with the codes issued by the local and multi-national Direct Selling Associations (Federation for European Direct Selling Associations [FEDSA] and World Federation of Direct Selling Associations [WFDSA]) of which the Company is a member. The codes are available to view on the Associations' websites: www.fedsa.be and www.wfdsa.org. 5.4 You agree to keep proper business records showing sales verification and
keep them available 5.5 You agree not to make any misleading, exaggerated or false claims about the business opportunity available through the Company. Before sponsoring you agree to undertake such training necessary to enable you to sponsor and to provide proper support to persons you sponsor. You may not use unfair, deceptive or misleading recruiting practices. Any sales or earning representations must be based upon documented facts printed in sales materials published by the Company. 5.6 You agree not to make any misleading, exaggerated or false claims about the products and not to describe the products in terms different from those set out in the current Company literature. In particular you may not ascribe any medicinal claims to any of the products. 6. ADVERTISING THE BUSINESS OPPORTUNITY AND THE PRODUCTS 6.1 Any resale of products may only be made by the direct selling method, not through retail premises. Sales may be made through service establishments, which earn revenue primarily by providing personal services - these include offices of health professionals, health clubs, beauty shops, nail boutiques, spas and other such businesses controlled by membership or appointment. Company name/logos may however not be displayed where they may be viewed by persons passing by. Participation in Trade Shows needs to be applied for to Nu Skin Local and may be permitted upon the Company's written approval. 6.2 You may, with the prior consent of a retail establishment and the Company, place Company produced Sales Aids/Personalised Sales Aids within their facility. Sales Aid materials must however not be visible to the general public in such a manner as to attract the general public into the retail establishment. 6.3 You may not use the trade names or any trademarks of the Company (except for the purposes of product identification) without the prior written approval of the Company. You agree that the Company trade names and trademarks are the property of the Company and you agree not to infringe them in any way. When promoting the business opportunity or products you agree to use only literature or other aids sold through Nu Skin Local or sales aids approved by the Company. 6.4 Company literature is protected by copyright and may not be reproduced without written approval. 6.5 You may not advertise the Products nor the business opportunity unless you have first obtained the Company's written approval. 6.6 You may not repackage, change the packaging or labels or in any other way alter the products supplied by the Company before their resale to customers. You also agree to resell them only in the country for which they are labelled in accordance with local law and approved for sale. You may not for any reason, directly or indirectly, import any product or sales aid into any unauthorised country or territory. If you wish to sell products outside your country of primary residence you should contact the Company for further information. 6.7 You may not use business cards or other personalised Sales Aids containing
Company trade 6.8 You must only use Company produced Distributor web sites, Corporate sites, and web tools (i.e., Dynamic Web Pages, Global Web Pages, Personal Web Pages, E-clips, etc.) when promoting the Company's products and services over the Internet. Additionally, you are permitted to create generic business opportunity sites and/or generic splash pages with links to Company sites or a Business Centre/GWP. These generic pages may not contain the Company's trademarks or other copyrighted material and may not contain information on the Company, its products or its business, or pictures of products or corporate facilities/personnel. Except as set forth in this policy, you may not use the Internet to promote the Company, including its products and services, in any other manner. In case of a violation, the Company may require you to immediately remove the web site that is in violation of Nu Skin's policies and may also take other disciplinary actions against you in accordance with Section 9 of these Policies and Procedures. Your web sites are also subject to the following restrictions: (i) If you have previously attained and currently enjoy active status as a
Blue Diamond Executive you may create your own independent Internet sites to
promote the Company's products/services and business opportunity. However, all
such sites, and any changes thereto, must first be reviewed and approved as
Sales Aids in accordance with Section 6.7 of these Policies and Procedures and
carry a Company designated review seal. Changes made to the site after obtaining
the initial review seal require written authorisation from a representative
of the Distributor Conduct Department. 7. PRODUCT ORDERS, SALES, RETURNS 7.1 You may order products for resale from Nu Skin Local pursuant to its current
terms of sale for 7.2 Nu Skin Local agrees to use its reasonable efforts to meet your orders
promptly on receipt of 7.3 Nu Skin Local reserves the right to refuse to supply you if in its opinion you are holding or seeking to hold excessive stock. You agree not to have on hand more than a reasonable supply of products, meaning an amount you can reasonably sell or use in a one-month period. If in the opinion of the Company, you are buying and returning products merely to maintain your Executive pin title, the Company may at its discretion change your Distributor title to reflect the level of your activity as set forth in the SCP. 7.4 Respecting your wholesale purchases from Nu Skin Local the following apply: (i) Nu Skin Local agrees to exchange for new products at its cost any defective
product or product damaged during delivery, provided you give Nu Skin Local
written notice within 90 days from the purchase date. 7.5 Respecting sales to retail customers, the following apply: (i) You agree to comply with local law on cancellation of sales as outlined
on the retail receipt. If the law grants additional rights, you agree to know
and grant those rights to the retail customer. You must refund the entire purchase
price including VAT to the retail customer. (ii) Nu Skin Local agrees to exchange
any product you receive back from a retail customer, provided: 1) you give notice
to Nu Skin Local within 90 days from the retail purchase date; 2) you obtain
from Nu Skin Local an RMA number and you give to Nu Skin Local the retail receipt
showing the particulars of the retail sales transaction; and, 3) you return
at your cost the unused portion of the product to Nu Skin Local. 8. PRODUCT LIABILITY COVERAGE 8.1 The Company will cover you for claims arising from the use of products. 8.2 Distributors who may be party to the claim because of selling the product
to the consumer will 8.3 You are covered by the Company only if you market products in accordance
with these Policies 9. CONTRACT BREACH 9.1 If a Distributor has violated any of the terms or conditions of the Agreement, the Company may elect, at its discretion, to terminate the Agreement or to impose sanctions in one or more of the following ways, without limitation: (i) Written warning advising that further violation may result in further sanctions; 9.2 The following procedure applies when the Company investigates a violation or other complaint or request for mediation: (i) The Company will send a formal written notice of its intent to impose sanctions
for a violation. 10. INDEMNITY 10.1 You agree to indemnify the Company against any liability it may incur as a result of your breaching any provision of your Distributor Agreement. The Company will not be liable for any damages (including consequential damages) of the Distributor arising out of the termination of the Agreement by the Company. 11. EARLY TERMINATION 11.1 You have the right within 14 days of entering into this Agreement to cancel it with immediate effect by giving written notice to either Company in which case you have the right: (i) To recover monies which you have paid to the Company in accordance with
the provisions of this selling system and this Agreement; and 11.2 In order to recover any monies under (i) or (iii) above you must, within 14 days9 of entering into this Agreement, give Nu Skin Local written notice requesting the repayment of such monies and Nu Skin shall repay you such monies as you may be legally entitled to recover within a reasonable period of time after the date of receipt of such notice. 11.3 In order to recover monies paid for goods under (ii) above you must deliver any goods (not already held by Nu Skin Local) which you wish to return within 21 days of sending your notice of termination to Nu Skin Local. You shall bear the cost of such delivery. The monies paid in respect of those goods are payable to you on delivery of the goods, or forthwith if the goods have not yet been delivered to you. 11.4 The Company is not entitled to make a handling charge in respect of goods returned under (ii) above or services cancelled under (iii) above. 11.5 You may not establish a new Distributorship under a different Sponsor
even though you have 12. TERMINATION 12.1 This Agreement will be automatically terminated if you have not engaged
in any "Distributor 12.2 You may terminate this Agreement whenever you wish without charge simply by giving a signed written notice to the Company. The Company may terminate this Agreement at any time if you break its terms and otherwise by either Company giving you not less than 10 days' written notice. 12.3 If the Company terminates this Agreement, or if you terminate it after 14 days9of entering into it, then you have the following rights: (i) Subject to any provisions of this Agreement containing an obligation on
your part not to compete with the business of the Company after the termination
of this Agreement, which provisions shall continue in force after termination
of this Agreement, you shall be released from all future contractual obligations; 12.4 On termination of this Agreement for whatever reason you shall be entitled to retain any commission paid to you in accordance with this Agreement unless the commission was paid with respect to goods returned to Nu Skin Local. If the Company has already refunded monies due to you for the returned goods, then the Company may ask you to repay the commissions immediately or the Company may off-set the amount of such commissions against any amounts due from the Company to you. 12.5 The rights set out in this Section of this Agreement are given to you by statute and are in addition to the rights on termination that are given to you under these Policies and Procedures. 13. Miscellaneous 13.1 This Agreement is governed by the law of the jurisdiction under which Nu Skin Local exists as a company. If any provision of the Agreement is held by any court to be unlawful, void or unenforceable that shall not affect any of the other provisions of the Agreement the remainder of which shall continue to be binding. 13.2 Any notice given under this Agreement shall start to run from the day it is posted to the addressee at their address set out on the application portion of this Agreement, or posted to any replacement address which has been notified. 13.3 This Agreement comprises the terms set out in the documents making up this Agreement; there are no oral terms, your Sponsor is not authorised to vary them and they may be amended in writing only. 13.4 If you are named as a defendant in any action relating to activities arising
from the terms of this 13.5 The Company reserves the right to modify any of these documents, but will publish notice of any change at least thirty days before that change is made effective. 13.6 This document is available in several languages. If, for any reason, there
are discrepancies in the 13.7 Handling of leads: Persons sometimes inquire about the business opportunity or products directly through the Company. If the Company is aware that the Person heard about the Company from a particular Distributor who can be identified, the Person is referred to that Distributor. Information about Persons who have heard about the Company without a discoverable contact is distributed to existing Executive Distributors. Leads are distributed as fairly as possible usually in the locality of the Person making the inquiry. The Company reserves the right to make final judgments with respect to distribution of leads. Annex Building Your Business o Give regular retail sales and organisational training, guidance and encouragement; Executive Activities Gold Executive Activities Lapis Executive Activities Ruby Executive Activities Emerald Executive Activities Diamond Executive Activities Blue Diamond Executive Activities Endnotes 1. For distributors residing in Switzerland, Nu Skin Belgium N.V. is their
local affiliated company or 2. Specific country requirements to become a Distributor: Austria: Under Austrian trade law, Nu Skin Distributors may pursue business
either as "demonstrators" Denmark: You agree not to make any unsolicited telephone calls or visits to prospect customers and only sell products from your permanent place of business (your home). You may, however, conduct product demonstrations outside your permanent place of business and distribute order forms which the customer can forward to your permanent place of business. France: The Distributor agrees to register with the social security
administration of the Act of January
Italy: A Representative may only buy Nu Skin products to satisfy personal
requirements and the requirements of persons living within their household.
You may not buy and resell products to retail Poland: Distributors can sign-up as Companies. A Power of Attorney document is required for commission payout. Romania: Distributors can sign-up as Private Entrepreneurs or Companies,
thus receiving 100% of Sweden: In order to receive commissions a Distributor will need to produce an F-tax certificate. Switzerland: Foreign citizens whose main residence is in Switzerland
can become Distributors in Switzerland if they have valid permission for exercising
a self-employed occupation in Switzerland. United Kingdom: Trading Standards provides that you cannot make investments
exceeding £200 the 3. Hungary, Poland and Slovakia only: The Independent Distributor is obligated to notify Nu Skin Eastern Europe Kft.
without delay on The serial number of the invoice consists of two parts: (i) the distributor
identification number, Slovakia only: Nu Skin Eastern Europe Kft. is obliged to issue each
invoice within 15 days after the 4. Belgium only: The Distributor is informed of the decision No ET.102.595
of June 19, 2002 (general 6. Turkey: Under Turkey law, if it is a door-to-door sale, you may not charge a credit card or request any payment before the expiration of the 7 day period starting from: (i) the signature date if the signing of the agreement and the delivery of the product take place simultaneously, (ii) delivery date if the delivery of the product takes place after the signature of the agreement or (iii) the signature date if the service is being sold instead of products. If the sale is made pursuant to a long distance agreement, then the Company may charge the customer's credit card and receive payment within the 7 day period. Pursuant to Article 8 of the Regulation on Procedures and Principles Concerning Door-to-Door Sales, the consumer may return the product without assuming any liabilities and without any cause within 7 days starting from: (i) the signature date if the signing of the agreement and the delivery of the product take place simultaneously, (ii) delivery date if the delivery of the product takes place after the signature of the agreement or (iii) the signature date if the service is being sold instead of products. The Company has to collect the product within 20 days starting from the receipt of the rescission notice. 7. Guadeloupe and Martinique only: Except taxes related to the "octroi de mer" and maritime taxes. 8. Switzerland only: Any fines or penalties can only be due if these have been stipulated. 9. Norway only: 28 days. 10. Italy only: 30 days. 11. Switzerland only: The Agreement with Distributors residing in Switzerland is subject to Swiss law. 12. Switzerland only: The notice of termination is effective upon receipt. 13. Switzerland only: In case of a criminal offence the Company may
act and take on legal actions on www.nseeurope.com |