For the purposes of the Cognoa Int’l Terms & Conditions, unless the context otherwise requires or unless repugnant to or inconsistent with such context, the following words or expression shall have the following meanings:-
shall mean for the purpose of the Cognoa Int’l Terms & Conditions, a person who has applied under Clause 1 herein and whose application has been accepted by Cognoa Int’l;
shall mean Cognoa International Inc.;
shall mean “Global Black Diamond”;
shall mean “Commissionable Value”;
shall mean “Point Value”
“Product” or “Products”
shall mean products produced or which bears the Cognoa Int’l label
shall mean Show Cause Notice
shall mean an existing Distributor who introduces a new member to be a Distributor of Cognoa Int’l and whose name appears on the new member's Distributor Application Form as the Sponsor
(a) references to clauses and sub clauses are to be construed as references to clauses and sub clauses of this Cognoa Int’l Terms & Conditions;
(b) references to Cognoa Int’l Terms & Conditions, Agreement & Policies, Cognoa Int’l Marketing Plan and any of its policies, federal or state legislations or provisions of such legislation shall include such provisions as modified, amended or re-enacted;
(c) references to persons include any body corporate or partnership;
(d) words denoting the masculine gender include the feminine and neuter genders and vice versa;
(e) words denoting the singular number include the plural number and vice versa;
(f) the headings to the clauses are for ease of reference only and shall not affect the interpretation of the Cognoa Int’l Terms & Conditions; and
(g) references to any party includes its successors in title and permitted assigns.
1. Application for Distributorship
1.1 Only applicants aged 18 years and above may apply to become as a Distributor.
1.2 In order to become a Distributor of Cognoa Int’l, an applicant is required to complete and sign the Distributorship Application Form and shall irrevocably agree to abide by the Cognoa Int’l Terms & Conditions, Agreement & Policies, Cognoa Int’l Marketing Plan and any of its policies including but not limited to any variation, amendment or modification. Any application for distributorship is subject to the approval of Cognoa Int’l. The completed form can be handed to the stockist, branch or the head-office where cash bill will be issued.
1.3 A Distributor is prohibited from submitting any false or inaccurate information to Cognoa Int’l. A Distributor shall inform Cognoa Int’l of any changes affecting the accuracy of the Distributor's details. Cognoa Int’l reserves the right to immediately terminate any distributorship in the event it determines that false or inaccurate information was provided by the said Distributor.
2. Status of Distributorship
2.1 Application can be submitted for the following status:
(a) Husband and wife are automatically deemed to be registered as Joint Distributors with a single distributorship code. If the husband or wife is found to have registered as a Distributor of Cognoa Int’l after the spouse has earlier been a Distributor of Cognoa Int’l, then the later registration of distributorship will be canceled and/or the whole group will be transferred to the spouse. However, in the event if a couple married after both of their joint dates, they are allowed to hold two separate distributorship codes.
(b) In the event where the law of the country recognizes polygamy, a husband with more than one legal wife can only elect ONE wife for the husband and wife partnership, subject to the appropriate local legislation. Subsequent wives who wish to be a Distributors MUST join as a SINGLE identity without the presence of spouse.
(c) A corporation cannot be accepted as a Distributor of Cognoa Int’l. Nevertheless, if a Distributor wishes to change his distributorship to a private company or a partnership, written approval from Cognoa Int’l shall be obtained. In the event Cognoa Int’l has approved the distributorship application by a corporation or private company or partnership, any change to the equity structure of the said corporation or private company or partnership must first obtain the approval of Cognoa Int’l. In the event Cognoa Int’l determines that false or inaccurate information was provided or any change to the equity structure has been done without the approval of Cognoa Int’l, Cognoa Int’l reserves the right to forthwith terminate the distributorship.
3. Conditional Life Distributorship
3.1 Distributorship with Cognoa Int’l is for a lifetime and no yearly renewal of distributorship is necessary PROVIDED THAT the Distributor is required to have at least one (1) personal purchase transaction with PV in each calendar year. Personal purchase transaction refers to purchase of Cognoa Int’l Products(s) with PV, regardless of amount, made in the Distributor’s own name.
3.2 Failure to comply with the above requirement shall render the distributorship of the concerned to lapse on 31st December of that calendar year without need of further notice. Any reinstatement may be done between 1st January until 31st March in the same calendar year of expiry in a single cash bill subject to the following:-
(a) the minimum monthly PV required for bonus has been achieved by the Distributor; and
(b) the reinstatement is approved by the GBD and by Cognoa Int’l
3.3 For new distributorship joining between 1st October and 31st December, the expiry date shall be extended until 31st December of the following year.
3.4 Distributor whose distributorship has lapsed may re-register as a new Distributor under the same or another Sponsor however; he will be considered and deemed as a new Distributor and therefore, not entitled to his former networks.
3.5 The reinstatement would be effective upon due approval from Cognoa's management. In other words, the reinstatement would not be backdated. Purchases, if any, made after lapse of distributorship would be accumulated and encoded according to marketing plan in the month of reinstatement.
3.6 A Distributor who fails to reinstate his distributorship within the above-said grace period may not be entitled to reinstate his former network upon their re-registration after the grace period.
3.7 A Distributor’s distributorship shall be terminated if he (or any one of the spouse / partner / party / member of the company including proxy) is directly or indirectly involved in any of the disciplinary cases such as:
(a) sponsoring other Distributors in an improper / invalid manner;
(b) involved in other direct sales companies or any company having direct competition with Cognoa Int’l;
(c) in breach of Cognoa Int’l Terms & Conditions, Code of Conduct, Cognoa Int’l Marketing Plan or any of its policies;
(d) conducting any activities that directly or indirectly will bring negative effects to Cognoa Int’l or affect Cognoa 's goodwill;
(e) selling or distributing other country's Products in another country which Cognoa's market has been established;
(f) delivering, distributing or selling Cognoa's Products of one country to another country (which Cognoa Int’l ' market has been established) without written approval from Cognoa Int’l;
(g) making false claims relating to the Product(s) or the Cognoa Int’l Marketing Plan.
4. Registration Fee
The registration fee is to be determined by Cognoa Int’l which is subject to change at any point of time and shall take effect immediately upon the issuance of any official announcement or notice.
5. Cognoa Int’l Starter Kit
Upon registration, distributors will be given a Cognoa Int’l Starter Kit. The Starter Kit, business materials or sales aids' price is set at cost: not a service or franchising fee, strictly to offset costs incurred by Cognoa Int’l in the production and distribution of the marketing tools and materials. The Distributor may purchase additional kits for resell to new recruits. The Starter Kit shall be sold at the price fixed by Cognoa Int’l and is strictly prohibited to be sold/resold for profit or mark-up.
6. Distributor’s Purchase Order
Products can be purchased by cash (or by any mode of payment so accepted by Cognoa Int’l) from Cognoa Int’l and valid stockists. Cash bill will be issued for each private purchase (Distributor). All purchases after the month end cannot be backdated from the date of purchase.
7. Entitlement to Monthly Bonus
7.1 A Distributor is entitled for their monthly bonus no maintenance is required for Fast Start Bonus, Team Sales Bonus and Check Match Bonus but for Unilevel Bonus, Global Bonus Pool and Executive Generational Bonus monthly maintenance is required to maintain a monthly PV exclusively in one (1) country for bonus qualification and commissions overriding. Bonuses are paid according to Cognoa's Marketing Plan when and where a Distributor has maintained the required monthly CV &PV.
7.2 In addition, Cognoa Int’l reserves the right to recoup any bonuses paid to any Distributors on Products or services under the following circumstances:
(a) returned under Cognoa's refund policy or exceptions thereto established by an authorized stockists;
(b) returned to an authorized stockists under any applicable law; or
(c) stolen or obtained by fraudulent means.
8. Discrepancy in Monthly Bonus Statement
Cognoa Int’l shall be informed in writing within thirty (30) days from the date of receipt of the monthly bonus statement of any discrepancy in the said statement after which at the end of the specified time period, all monthly bonus statement shall be deemed as final and conclusive and Cognoa Int’l shall not entertain any inquiry or complaint.
9. Suspension and Termination of Bonuses, Incentives and Benefits
Cognoa Int’l reserves the full and absolute right, at any point of time, to withhold or suspend or terminate a Distributor's benefits including but not limited to bonuses, incentives, commissions, benefits, entitlements, etc., in the event:
9.1 A Distributor has been issued with a SCN for violating any provisions of the Cognoa Int’l Terms & Conditions, Agreement & Policies, Cognoa Int’l Marketing Plan or any of its policies; or
9.2 A Distributor who is currently in the process of due inquiry conducted by Cognoa Int’l for allegedly violating any provisions of the Cognoa Int’l Terms & Conditions, Agreement & Policies, Cognoa Int’l Marketing Plan or any of its policies; or
9.3 A Distributor who has been found liable by Cognoa Int’l for violating any provisions of the Cognoa Int’l Terms & Conditions, Agreement & Policies, Cognoa Int’l Marketing Plan or any of its policies; or
9.4 Pending the finalization of transfer of the distributorship to beneficiary; or
9.5 Any other causes/reasons deems necessary and fit by Cognoa Int’l.
10. Responsibilities of a Distributor
10.1 A Distributor is independent and is free to operate on his own. Therefore, a Distributor shall not claim or represent as an employee of or having employment relationship with Cognoa Int’l. A Distributor is strictly prohibited from representing himself as such. Disciplinary action shall be taken on those who have breached this regulation.
10.2 A Distributor shall represent the Products, services, and opportunity of becoming a Distributor ethically and professionally.
10.3 No representation or sales offers may be made relating to Products and services, which are inaccurate as to price, grade, quality, and liability.
10.4 No unreasonable, misleading, or unrepresentative earnings claims may be made. No income guarantees of any kind shall be made.
10.5 A Distributor may not solicit or persuade any other Distributor to sell or purchase Products or services other than those offered by Cognoa Int’l. A Distributor agrees that a violation of this rule inflicts irreparable harm to Cognoa Int’l and agrees that injunctive relief is an appropriate remedy to prevent it.
10.6 A Distributor is responsible for his own business decisions and expenditures.
10.7 A Distributor shall obey and comply fully with the Cognoa Int’l Terms & Conditions, Agreement & Policies, Cognoa Int’l Marketing Plan or any of its policies.
10.8 A Distributor is personally responsible and accountable for compliance with all applicable national, state, municipal and local laws and regulations.
10.9 A Distributor shall comply with all laws, regulations and codes of practice applying to the operation of his distributorship and shall not engage in any activity, which may bring disrepute to them or to Cognoa Int’l.
10.10 A Distributor shall not make any representation to a prospective recruit and/or customer, which cannot be verified, or make any promise which cannot be fulfilled. A Distributor shall not present any information to the customer/prospect in a false or deceptive manner.
11. Restriction/Right to Area
11.1 A Distributor is not allowed to have any right or impose any restriction to a particular area and are strictly prohibited to declare that they have any specific right on a particular area.
11.2 A Distributor is strictly prohibited to distribute or sell any Products specifically manufactured for a particular country in any other country unless written approval from Cognoa Int’l.
12. Restriction on Products
12.1 Cognoa’s Products are strictly prohibited from being sold or exhibited in grocery shops, stores, mini-markets / supermarkets, military stores or trade fair.
13. Distributor Price
13.1 Cognoa Int’l reserves the right, at any point of time to revise the Distributor Price including but not limited to CV and PV of the Product without any prior notice, and the revised Distributorship Price so determined or fixed shall immediate effect upon its official announcement
14. Product Claims
14.1 A distributor shall be held liable and responsible for false claims of the Product, which shall lead to disciplinary, suspension or termination of distributorship.
14.2 While Cognoa Int’l makes every effort to achieve full compliance with complicated and periodically amended regulations, no Distributor should or attempt to state or intimate that any Product is approved by the Ministry of Health or any other governmental authority.
15. Improper Sponsoring of Distributor and Penalty
15.1 Improper sponsoring and its penalty
Improper ways of sponsoring Distributors in the following context are prohibited:-
(a) sponsoring a Distributor who is already a Distributor of another group;
(b) sponsoring the spouse of a person who is already a Distributor of another group.
15.2 The following actions will be taken if improper sponsoring is proven to have occurred:
(a) distributorship shall be terminated with immediate effect. If the distributorship is terminated; all Distributors who were improperly sponsored will be transferred to their original Sponsors.
(b) If the spouse (B) of a Distributor (A) is found to have become a Distributor of another group, B’s Distributors will be terminated immediately and Distributors under B will be transferred to A’s original Sponsors.
(c) Penalty letters will be issued to all those who are involved.
(d) No arrears of bonus will be considered.
15.3 Proxy and its Penalty
If a Distributor establishes a group not under his hierarchy but has self-interest in the development of the group, the Distributor is deemed to have been involved in this activity and his distributorship will be suspended or terminated and the group established by proxy will be transferred to the Sponsor.
16. Involvement in other Direct Sales Company
16.1 A Distributor who has achieved the status of Distributor and above is not allowed to be involved directly or indirectly (including by proxy) in any activities of other direct sales companies or other activities that will bring negative effects to Cognoa Int’l. Any Distributor who commits such offence shall have his distributorship terminated immediately by Cognoa Int’l.
16.2 A Distributor shall not directly or indirectly and whether on his own behalf or with or for any other person solicit, promote or recruit any member of their down line organization to join or participate in any other direct selling or network marketing business or to distribute, sell or promote any Products or services competitive with Cognoa Int’l.
17. Breach of the Cognoa Int’l Terms & Conditions, Agreement & Policies, Cognoa Int’l Marketing Plan or any of its policies
17.1 If a Distributor breaches any provisions of the Cognoa Int’l Terms & Conditions, Agreement & Policies, Cognoa Int’l Marketing Plan or any of its policies, the Distributor's distributorship may be suspended or terminated immediately.
17.2 During the period of Cognoa’s investigation or issuance of SCN or suspension notice for the alleged violation of the Cognoa Int’l Terms & Conditions, Agreement & Policies, Cognoa Int’l Marketing Plan or any of its policies, the following shall be applied:
(a) Cognoa Int’l may provide verbal reprimand or issue a Warning Notice to the Distributor for the violation of the Cognoa Int’l Terms & Conditions, Agreement & Policies, Cognoa Int’l Marketing Plan or any of its policies;
(b) In the event of a SCN is issued to a Distributor, the Distributor shall within fourteen (14) days from the date of the same provide his written explanation relating to the allegations for consideration by Cognoa Int’l. Cognoa Int’l reserves the right to suspend the said Distributor from participating or carrying out activities which includes but not limited to placing orders, making sale or purchase, dealing with Cognoa's Products, dealing with networks, sponsoring, modifying Distributors information, attend training, participate in Cognoa's activities, participate in promotional activities or incentives campaigns, receiving bonuses, commissions or incentives until a final decision is made by Cognoa Int’l.
(c) In the event of the Distributor fails to provide any written reply to the said SCN within the said period, Cognoa Int’l shall have the right to impose such punishment as it considers proper.
(d) On the basis of any information obtained from collateral sources or from Cognoa Int’l’s investigation of the statements and facts taken together with information submitted to Cognoa Int’l during the response period, Cognoa Int’l shall make a final decision regarding the appropriate remedy, which includes the termination of the Distributor's distributorship. Cognoa Int’l reserves the right to impose any remedies for similar violations of Cognoa Int’l Terms & Conditions, Agreement & Policies, Cognoa Int’l Marketing Plan or any of its policies on a case-by-case basis. Cognoa Int’l will notify the Distributor of its decision and all remedies will be effective forthwith as of the date on which notice of Cognoa's decision is served.
(e) In the event of termination of the Distributor's distributorship, the Distributor's distributorship /status and all benefits pursuant to the Cognoa Int’l Marketing Plan including but not limited to benefits on promotion activities, incentives campaigns, and entitlements shall be forfeited. Henceforth, the terminated Distributor is automatically prohibited from dealing in whatsoever manner with Cognoa's Products, networks and activities.
(f) Any Distributor so terminated may apply for new distributorship from Cognoa Int’l after a period of six (6) months. However, acceptance of the application is subjected to the verification and approval by Cognoa Int’l.
18.1 A Distributor may only appoint immediate family as his/her beneficiary. If no beneficiary is named in the distributorship form, the beneficiary shall be the next of kin. However if there is a dispute relating to the beneficiary after the death of a Distributor, the appropriate court shall decide the beneficiary. Cognoa Int’l reserves the right to suspend any benefits including but not limited to bonuses and commissions until a final decision is made by the Court.
18.2 A Distributor shall not transfer, allocate, or otherwise transfer any right conveyed by under his distributorship to any person without the written approval from Cognoa Int’l. A Distributor may delegate his responsibilities but be and is ultimately responsible for insuring compliance with the applicable laws and regulations.
19. Properties of Cognoa Int’l
19.1 Cognoa Int’l logos, trademarks, service marks, Product names, and other tangible or intangible commercial assets, registered or otherwise, videotapes, stationeries, printed materials, provided and related to Cognoa Int’l are the properties of Cognoa Int’l. Henceforth, they are not to be used, extracted or reproduced by any Distributor without prior written approval from Cognoa Int’l.
19.2 All promotional materials including but not limited to flyers, business cards, pamphlets, brochures, books prepared in accordance with the sub-clause below, may be distributed through personal contact only. They may not be posted in public places, mass mailed, put in mailboxes, or disseminated by any other non-personal contact means. Materials may not be disseminated through unsolicited faxed or E-mail message.
20. Distributor Agreement
An Agreement between a Distributor and Cognoa Int’l takes effect as soon as the Distributorship is approved by Cognoa Int’l.
21. Transfer of Distributorship
Transfer of distributorship is divided into two categories:
If a Distributor passes away, the beneficiary will automatically take over the distributorship. If no beneficiary is named, the transfer of distributorship will be determined as per the law prevailing in the country. Simultaneously, Cognoa Int’l reserves the right to suspend any and all benefits including but not limited to bonuses, commissions until the issue is resolved.
A Distributor who has reached the age of 65 years old or unable to continue the Cognoa Int’l business due to health complications which, if accepted by Cognoa Int’l shall be allowed to transfer the distributorship to anyone as he wishes or to his beneficiary.
22. Double Registration
22.1 A married couple at the point of registration as Cognoa Int’l Distributor shall be given a common code that means a single Cognoa Int’l distributorship entity, thus, at any one moment, a registered Cognoa Int’l Distributor with a married status is prohibited to apply or acquire an additional new distributorship under his own name or under his spouse name.
22.2 In the event that a double registration has been detected and confirmed as such, Cognoa Int’l reserves the right and shall terminate the newer distributorship code with immediate effect without further reference or notice. Accordingly, Cognoa Int’l shall transfer all the newer distributorship code’s down-lines and accumulated PVs to the old distributorship code.
22.3 Disciplinary action such as suspension or termination shall be initiated against any Distributor or Sponsor who directly, indirectly or accidentally found to be involved in double registration.
23. Request for Changing Sponsors
23.1 Application for change of Sponsor is not allowed by Cognoa Int’l.
23.2 If a Distributor insists on changing his Sponsor, he can write to Cognoa Int’l to terminate his existing distributorship and wait for six (6) months before re-applying for distributorship under a new Sponsor.
23.3 For a Distributor whose distributorship has lapsed, a distributor may request to change his Sponsor by re-registering by following the procedure stated in Clause 3.
23.4 A Distributor shall not directly or indirectly encourage, persuade, involve or assist another Distributor to transfer to a different Sponsor. This includes the act of offering financial or other tangible or intangible incentives or benefits to induce the Distributor to terminate his existing distributorship and then re-register under a different sponsor. Any Distributor found liable to be involved in such practice may result in his distributorship to be suspended or terminated immediately.
24. Distributor Website Regulations
24.1 Any distributor who wish to establish link to Cognoa Int’l website or its subsidiary sites must submit application, stating its purposes and be approved by Cognoa Int’l prior to posting the link.
24.2 No site references Cognoa Int’l, its Products or link to Cognoa Int’l website is permitted to make unsubstantiated income or Product claim.
24.3 No site should make it appear that it is Cognoa Int’l subsidiary or that the site is in any way sanctioned or endorsed by Cognoa Int’l.
24.4 All sited link to Cognoa Int’l must clearly state in a highly visible location that they are operated by independent distributor.
24.5 The Distributor's website must not display Cognoa Int’l logo, trademark, or its Products. Any text related to or describing the link to Cognoa Int’l website must be in strict accordance with specifications approved by Cognoa Int’l.
24.6 A distributor is fully responsible, accountable and liable for any misuse or misrepresentation of the website. Any violation of this clause and its sub clauses thereto shall lead to disciplinary action such as suspension or termination of the distributor's distributorship.
25. Promotion Activities and Incentive Campaigns
25.1 Distributors shall abide with the respective rules and regulations governing all promotion activities and incentives campaigns.
25.2 At any point of time of the promotion activities or incentive campaigns, if any Distributor is under investigation for disciplinary cases or has been or about to be issued a SCN for violation of Cognoa Int’l Distributorship Rules and Regulations Cognoa Int’l reserves the absolute right, at any point of time, to suspend or disqualify any Distributor from any and all promotion activities or incentive campaigns .
26. Litigation and claims
In the event any Distributor is charged with any infringement of any proprietary right of any 3rd party arising from any of Cognoa's proprietary assets, or if the Distributor becomes the subject of any claim or suit related to that Distributor's business-related conduct or any other action that directly or indirectly negatively affects or puts Cognoa Int’l, its reputations, or any of its tangible or intangible assets at risk, the affected Distributor shall immediately notify Cognoa Int’l. Cognoa Int’l may, at its own expenses and upon reasonable notice, take whatever action it deems necessary ( including, but not limited to, controlling any litigation or settlement discussion related thereto ) to protect itself, its reputations, and its tangible and intangible property. A Distributor shall take no action related to that claim and suit, unless obtained Cognoa's written consents.
27. General Business Ethics
27.1A Distributor agrees that he shall not make any misleading, unfair, inaccurate, or disparaging comparisons, claims, representations, or statements about Cognoa Int’l, its Products, services, or commercial activities; other persons other companies (including competitors); their products; or their commercials activities.
27.2 A Distributor agrees that any claims or representations concerning the opportunity must be congruent with, and limited to those found in the materials and literature currently distributed by Cognoa Int’l. Those claims and representations must also be advanced in accordance with any applicable laws, ordinances, and regulations, etc.
27.3 No Distributor shall represent that, any person can or will receive profits or revenues without substantial effort on his own behalf.
27.4 No Distributor shall make unreasonable, misleading, or unrepresentative representations respecting potential earnings.
28. Rights of Cognoa Int’l
Cognoa Int’l reserves the full and absolute right, at any point of time, even without any prior notice to change, vary or amend or modify the Cognoa Int’l Terms & Conditions, Agreement & Policies, Cognoa Int’l Marketing Plan or any of its policies and to withdraw or suspend or terminate the distributorship of any Distributor or person as and when necessary.
Independent Distributors shall at all times, remain loyal to the company. They shall follow and observe faithfully all its policies. They shall refrain from committing acts prohibited by the company. They shall not join, represent, associate with, sponsor, or recruit for competing companies, business groups, partnerships or individuals, either locally or abroad. They shall not introduce, present, promote, offer, or sell, in any form or manner the products, services, businesses, marketing programs and plans of a competing company.
All Independent Distributors are strictly enjoined to be honest in their conduct and dealings. They shall not make any written or oral remarks which are derogatory or defamatory, nor make any statement in any form that discredits the company, its centers or any of its service branches. They shall respect and not malign the credibility of the company officers and employees.
All independent distributors are strictly enjoined to conduct business in a professional manner. As a professional, he/she shall not utter false statements in the course of his/her work; he/she shall not commit misrepresentation, exaggeration or disinformation; neither shall he/she make vain promises, introduce spurious products or services, circumvent the marketing plans or programs of the company nor commit any act that contravenes the tenor and the purposes thereof.
All Independent Distributors are strictly enjoined to deal honestly with their fellow independent distributors. They shall refrain from committing the following acts:
All Independent Distributors are strictly enjoined to observe humility and respect towards fellow independent distributors, officers and employees of the company. Rudeness, disrespect and discourtesy have no place in the organization.
All Independent Distributors are strictly enjoined to observe A sense of equality and fairness toward THEIR fellow independent distributors by observing the 6-month cooling-off period rule wherein an independent distributor has 6 months from presentation of the marketing plan or program of the company and signing of any document towards distributorship by the prospective distributor, within which another distributor is prohibited from interfering with, intervening with or committing any act which will alienate said prospective distributor from the first independent distributor.
Distributors are reminded to observe the said 6-month cooling off period rule where a prospect may sign a Cognoa Distributor Application Form, and provided that the sponsoring Independent Distributor validates the same with the Staff-in-charge, in the Head Office.The date stamped on the DAF shall serve as the basis for determining the 6-month period.
Cross Lining/ Cross Sponsoring:
Cross-Sponsoring also known as pirating or poaching is defined as the registration of an Independent Distributor who already has a current Independent Distributor Agreement on file or on record, or who has had such an agreement covered by the six (6) month rule (please refer to Section. 6), to a different line of sponsorship.
Actual or attempted Cross Lining/Cross Sponsoring is strictly prohibited. Cross Lining shall also be deemed to include any act that tends to circumvent the company policies but produces the same effect. Violation of this prohibition may result in the termination of both the newly placed Distributor as well as the Distributor who sponsored or attempted to sponsor said new Independent Distributor.
For purposes of establishing Cross Lining/ Cross Sponsoring, Spouses shall automatically belong to the same sponsor group or line. Cross Lining through the use of dummies whether real or fictitious persons is also prohibited
All Independent Distributors shall not commit any fraudulent act or false pretenses to the prejudice directly or indirectly of the company or fellow distributor. These acts are the following:
All intellectual property rights for products and services of the Company shall remain the exclusive property of COGNOA. Intellectual property shall include copyrights, trademarks, service marks, trade names and other intellectual property rights. Unauthorized use of the company’s intellectual property is absolutely prohibited. Any use of COGNOA’s trademarks and logos must be cleared in advance with and have the written consent of the Management. Independent Distributor who violated this shall be liable to the Company for any damages arising out of the unauthorized use of the Company’s trade names, trademarks, copyrights, and other intellectual property rights, in any form except as specifically authorized by these Policies and Procedures or as otherwise approved in writing by the Company.
However, any independent distributor need not to secure an approval from the Company as long as the following disclaimer is always included in the publication material which states:
DISCLAIMER: This literature/ marketing tool is not an official publication of COGNOA INTERNATIONAL or any of its affiliate company. This literature/ marketing tool is personally designed by (please indicate name of independent distributor). For COGNOA’s official publication.
All Independent Distributors shall be provided a retail price of company products. Independent Distributors may sell COGNOA products at whatever price they and their customers agreed upon but not below the Retail Price (SRP). This includes but not limited to free products or any other special pricing or incentive that would fall below the Retail Price. No distributor shall offer for sale COGNOA products together with the products of any other company.
ANY INFRACTION OF ANY OF THESE POLICIES WILL MERIT CORRECTIVE DISCIPLINARY MEASURES, AFTER CAREFUL AND THOROUGH INVESTIGATION, AFTER WHICH IT WILL BE DECIDED UPON BY THE MANAGEMENT.
FIRST OFFENSE: 1 (ONE) MONTH SUSPENSION OF ALL PRIVILEGES WITH FORFEITURE OF ALL SALES COMMISIONS, BONUSES AND OTHER RENUMERATIONS EITHER IN MONETARY OR IN KIND WHICH ACCRUED ON THE TIME OF THE CONSUMATION OF THE OFFENSE.
SECOND OFFENSE: TERMINATION/CANCELLATION OF ALL PRIVILEGES WITH FORFEITURE OF ALL SALES COMMISIONS, BONUSES AND OTHER RENUMERATIONS EITHER IN MONETARY OR IN KIND WHICH ACCRUED ON THE TIME OF THE CONSUMATION OF THE OFFENSE. WITH THE RIGHT TO RE-APPLY AFTER 1 (ONE) YEAR FROM THE TIME THE ACCOUNT WAS TERMINATED.
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