Section 21: Successors and Claims

A. Binding Effects and Continuing Benefits. The Contract shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

B. Transfer of a Distributorship Position. Except as otherwise noted in this Policy Manual a Wellness Advocate may dispose of, sell, transfer, or otherwise assign his or her Distributorship assets in any manner allowed by the Contract and applicable law (including sale, gift, or bequest) with the prior written consent of the Company. Any assets that take the form of claims to compensation or satisfaction of contractual obligations, from or by the Company, will not be recognized as assets of the transferee on the records of the Company until the Company has received written notification of the transfer and has given its formal written approval. The Distributorship transferred is subject to all remedial measures under the Contract that may have arisen prior to the transfer.

1. Upon a gift, sale, transfer, assignment or other disposition of a Distributorship, a new Distributorship is created. Notwithstanding the fact that a new Distributorship is created, the new Distributorship shall take the place of the former Distributorship organizationally. Further, unless expressly agreed to in writing by the Company, the Accounts Receivable balance, personal volume, LRP points, and enrollment date shall be retained by the former Distributorship.
2. For purposes of signing up again as a Wellness Advocate, a gift, sale, transfer or assignment is treated as a termination with respect to the transferor. In other words, a Wellness Advocate who gifts, sells, conveys or otherwise transfers his or her Distributorship must wait six months (if Premier rank or lower) or twelve months (if Silver rank or higher) from the official termination date (or the date of the last product purchase, if earlier than the termination or transfer date) to sign up again. A Wellness Advocate may not sell, convey, assign, or otherwise transfer any right conveyed by the Contract to any Person or entity without the express, prior written consent of the Company. A Wellness Advocate may delegate his or her responsibilities but is ultimately responsible for ensuring compliance with the Contract and applicable laws. Any Person working with or for the Wellness Advocate as part of his or her Distributorship will do so only under the Wellness Advocate’s direct supervision.

C. Distributorship Succession. In the event that a Wellness Advocate dies or becomes incapacitated, that Wellness Advocate’s organization will pass to the Wellness Advocate’s legal successors under the appropriate laws. Successors should promptly notify the Company in writing of such an event and provide the proper documentation.

D. Operation of the Distributorship During Succession. During the pendency of a divorce or entity dissolution, the parties must adopt one of the following methods of operation:

1. One of the parties may, with consent of the other(s), operate the Distributorship pursuant to an assignment in writing whereby the relinquishing spouse, shareholders, partners or trustees authorize the Company to deal directly and solely with the other spouse or non-relinquishing shareholder, partner or trustee.
2. The parties may continue to operate the Distributorship jointly on a “business-as-usual” basis, whereupon all compensation paid by the Company will be paid in the joint names of the Wellness Advocates or in the name of the entity to be divided as the parties may independently agree between themselves.

E. Distributorships are Indivisible. Under no circumstances will the Organization of divorcing spouses or a dissolving business entity be divided. Similarly, under no circumstances will the Company split Bonus checks between divorcing spouses or Wellness Advocates of dissolving entities. The Company will recognize only one Organization and will issue only one bonus check per Distributorship per commission cycle. Checks shall always be issued to the same individual or entity. In the event that parties to a divorce or dissolution proceeding are unable to resolve a dispute over the disposition of bonuses and the ownership of the business, the Wellness Advocate may be involuntarily canceled.

F. Court Proceedings. Wellness Advocates involved in court proceedings over the ownership or the management of a Distributorship are under obligation to inform the Court that the Distributorship is indivisible, and that the Company will not divide an Organization or bonus checks. The final order must expressly assign ownership of the Distributorship.

G. Waiting Period to Sign Up Again. If a former spouse or a former entity Wellness Advocate has completely relinquished all rights in their original Distributorship, they are thereafter free to enroll under any sponsor of their choosing, so long as they meet the waiting period requirements set forth in Section 20.B.2 In such case, however, the former spouse or partner shall have no rights to any Wellness Advocates in their former organization or to any former customers. They must develop the new business in the same manner, as would any other new Wellness Advocate.